The barriers and drivers of industrial decarbonization through energy efficiency (EE) improvements have been extensively explored in energy-intensive industries in developed countries; however, research in developing country contexts remains limited. This paper addresses the gap by investigating a broad range of barriers and drivers of decarbonization efforts in the Ethiopian Cement Industry (ECI). A PESTLE (political, economic, social, technological, legal, and environmental) framework-based measurement theory is developed to analyze the barriers and drivers. The measurement theory suitability is confirmed statistically through exploratory and confirmatory factor analyses, using response data collected from relevant stakeholders via a five-point Likert-scale survey. In this paper, the top-ranked barriers (rating > 3.76/5) identified by respondents are insufficient stakeholder collaboration, weak top-management support, inadequate infrastructure, and absence of economic subsidies. The highly ranked drivers (> 3.77/5) are cost reductions resulting from lowered energy use, threats of rising energy prices, and effective environmental management systems. On the other hand, respondents ranked competing priorities for capital investment (3.41/5) and strengthening the image of a company (3.22/5) at the bottom of barriers and drivers, respectively. The survey also highlighted gaps in EE implementations, proactive energy management (EnM) systems, and industrial EE policies. The key findings and insights drawn from the survey results and analysis are used to formulate several decarbonization strategies for short- and long-term planning, along with policy instruments (e.g., tax rebate/credits, energy/carbon taxes, removing energy subsidies, polluters pay principle, landfill taxes, minimum equipment standards, energy audit regulation) and stakeholder engagement. The main strategies include adopting cost-effective EE technologies and demand response programs, deploying emerging/innovative low carbon technologies, utilizing alternative fuels (waste/biomass), and reducing clinker-to-cement ratio. Strengthening government engagement, stakeholder collaborations, and waste collection and pre-processing infrastructure, reforming EE policies, regulations, and financial schemes, mandating EnM systems, and creating green certifications are essential for advancing decarbonization efforts in ECI. Finally, this paper contributes to the global decarbonization effort by providing a robust methodological framework that leads to formulation of actionable, sector-specific strategies.