Dubai to invest $2 Billion in Ethiopia - Capital


http://nazret.com/blog/media/blogs/new/dp_world_ethiopia.jpg

Sultan Ahmed Bin Sulayem, Chairman of Dubai World and Abadulla Gemeda, Oromia Regional State President, in talks during the Sultan's visit on Wednesday July 9, 2008 at the president's office. The two discussed investment conditions in the region, concentrating on the tourism sector. Photo Capital


Sultan Ahmed Bin Sulayem, Chairman of Dubai World has signed a deal to construct a pipeline that would link Djibouti with Awash in Ethiopia and rehabilitate the over 100 year old railway line for a staggering two billion dollars.

Sources with the delegation told Capital that the total investment for the rehabilitation of the railway is estimated to be one billion dollars and it would be reconstructed as new to better connect Addis Ababa with the Port of Djibouti.

Furthermore the project would consist, an oil pipeline that would stretch from the Port of Djibouti to Awash some 230 kms East of Addis Ababa with another billion dollars.
The pipeline would greatly decrease the transport cost for fuel.

The Sultan who led investors from Dubai, United Arab Emirates, is also planning to invest 100 million dollars on various sectors in the Oromia Regional State.
The business delegation from Dubai is here to asses the investment climate in Ethiopia after the LPG guru Warda A. Graham owner of Wajag Gas invited the delegation.

Sultan Ahmed Bin Sulaymen signed the agreement to rehabilitate the Ethiopia-Djibouti railway with a billion dollar outlay with Prime Minister Meles Zenawi on Tuesday July 8, 2008.
He also held talks with Abadula Gemeda, President of the Oromia Regional State.
The Sultan came with his two children and visited the city on Tuesday, where the delegation celebrated its achievement.

Holding talks with President Girma Woldegiorgis on Thursday, the Sultan said his company envisages engaging in several investment sectors in Ethiopia in trade, agriculture, mining, catering, real-estate and water sectors by October, 2008.

Sultan Ahmed Bin Sulayem is recognized as one of the leading businessmen of Dubai. As executive chairman of Dubai Ports, Customs & Free Zone Corporation (PCFZ); chairman of Tejari.com, a B2B marketplace; and chairman of the recently established property development company Nakheel, he is quite occupied one could say.

Dubai's PCFZ Corporation has been under Sultan Bin Sulayem's astute management since 2001, and in this time he has streamlined operations and administration to a level achieving record success. Dubai Customs was merged with Jebel Ali Free Zone and the Dubai Ports Authority in 2001 to become the billion-dollar organisation it is today.

Sultan Bin Sulayem is chairman of Nakheel, a real estate and tourism property development firm responsible for the creation of The Palm, the world's two largest man-made islands, constructed in the Arabian Gulf off the coast of Dubai. Heralded as "the eighth wonder of the world," this $3bn-plus development has been a tremendous success, selling out initial release residential properties within days

I read about it Tarrex, any news about the project?

And that in order for the any company to invest in the line it needs the agreement of both Djibouti and Ethiopia right? I heard that in Djibouti a Kuwaiti firm (Al Ghanim) is interested and rivaling Dubai World in the rail line renovation and managment.
Did Dubai World finally got it? Since they're very familiar with Djibouti I think they're gonna give them the green light too.

Anyway, it really is great for the economic interconnexion of our economies, it's mutually benefiting the 2 countries.

Not much has been said since this article was posted but i think the investments has been put on halt since the economic downturn. One thing said is that a Kuwaiti firm has begun work on the rail line but i don't know what to believe..

Not much has been said since this article was posted but i think the investments has been put on halt since the economic downturn. One thing said is that a Kuwaiti firm has begun work on the rail line but i don't know what to believe..
I know that they cancelled the construction of "two luxury hotels" in Addis Ababa.. I don't think they will keep this promise either.

Interesting video..

G5MedOsPwsw

በጣም የሚጥም ቪዲዮ ነው። ያለንን ከፍ እንናደርጋለን፣ ጣል ጣል ከማድረግ ይልቅ። የራሳችንን ነገር ሉአላዊ መሆን እምነታዊ አድርገን ሌሎችን መጋበዝ እንችላለን።

ቋንቋችንን፣ ስነ-ፅሁፋችንን፣ እምነታችንን፣ ነገረ ሥራችንን ሁሉ ከፍ ከፍ ማድረግ አለብን ብዬ በዚህ እምነት ለመንቀሳቀስ በበኩሌ ተነስቻለሁ።

እዮኃ ለኢትዮጵያውያን፣ ክብሬና መለዮዬ ለሆኑት ህዝቦች፡፤

በጣም የሚጥም ቪዲዮ ነው። ያለንን ከፍ እንናደርጋለን፣ ጣል ጣል ከማድረግ ይልቅ። የራሳችንን ነገር ሉአላዊ መሆን እምነታዊ አድርገን ሌሎችን መጋበዝ እንችላለን።

ቋንቋችንን፣ ስነ-ፅሁፋችንን፣ እምነታችንን፣ ነገረ ሥራችንን ሁሉ ከፍ ከፍ ማድረግ አለብን ብዬ በዚህ እምነት ለመንቀሳቀስ በበኩሌ ተነስቻለሁ።

እዮኃ ለኢትዮጵያውያን፣ ክብሬና መለዮዬ ለሆኑት ህዝቦች፡፤
agreed !ethiopia has a lot of potential on agriculture; tourism; manufacturing(the cheapest and abundant labour the cheapest power in the region); what we need to work hard now is roads and using our abundant water (about 122 billion meter cube 4 times what kenya has) properly .and we have to work hard to change our image of poverty and famine worldwide.

This is probably the only positive news stories I have heard about Ethiopia from the BBC. WOW, 'ma lemot new zare!':lol:
It is a very good start to look at the whole issues as opposed to just famine or war.



http://news.bbc.co.uk/2/hi/business/8477871.stm


Oh, BTW it is a short clip.

This is probably the only positive news stories I have heard about Ethiopia from the BBC. WOW, 'ma lemot new zare!':lol:
It is a very good start to look at the whole issues as opposed to just famine or war.



http://news.bbc.co.uk/2/hi/business/8477871.stm


Oh, BTW it is a short clip.

እንትፍ፣ እንትፍ እንበል እንዳላየን ቡዳ እንዳይበላቸው። እውነትም ማን ሊሞት ነው።

dude, how old are you? your Amharic is ridiculous at times.

dude, how old are you? your Amharic is ridiculous at times.

I am give you another chance to rephrase your question, because that statement is really out of line. :ohno:

I am guessing you are referring to me, couldn't tell the 'dude' reference isn't helping. Either way, I wouldn't ask someone how old they are to understand why they would know how to use their own language.
Have a good day:)

dude, how old are you? your Amharic is ridiculous at times.

Weren't you the one who said you did not want to see Amharic and Fidel on this site? You got some nerve to ridicule your own language, specially when you tie it to age. Why would the language used by your elders be ridiculous?

You used the word "dude" should I take you seriously or as a ridiculous punk?

I am give you another chance to rephrase your question, because that statement is really out of line. :ohno:

I am guessing you are referring to me, couldn't tell the 'dude' reference isn't helping. Either way, I wouldn't ask someone how old they are to understand why they would know how to use their own language.
Have a good day:)

Yeah, I would give him a chance to extract his statement. He wrote some time back he did not see the reason to use Amharic. We shot him down saying that we want to use our lanague when necessary. In a time when so many Ethiopian children in the diaspora want to learn Amharic and other Ethiopian languages, a guy like this comes up and leaves such a backward comment, specially when he ties it to age.

How could you be a fan of Ethiopian development when you hate the language its people speak. Now that is ridiculous :ohno:

There is no development unless the language is developed. and to that there is a well developed and scientific language in Amharic as it is used in the countryside, not what is spoken by punks in Adisaba or abroad who plug ridiculous foreign thoughts and words in it as the ones we hear in paltalk.
If you want to hear a clean, clear Amharic listen to Tsegaye G/Medhin, his has a CD out.

calm down, I'm Ethiopian also. no, I didn't say I didn't want to see Amharic on here. all I said was since many people from around the world visit the forum why not include everyone. as for your Amharic, yeah I still read it and get confused as to what most of the words mean, despite the fact that I'm fluent in Amharic and was born in Addis. that's all. take it how you want it. it was actually a lightly jab meant to make light out of the situation since we've all been here for a long time and know each other (to some degree)


@ Enkelfam, I wasn't referring to you.

calm down, I'm Ethiopian also. no, I didn't say I didn't want to see Amharic on here. all I said was since many people from around the world visit the forum why not include everyone. as for your Amharic, yeah I still read it and get confused as to what most of the words mean, despite the fact that I'm fluent in Amharic and was born in Addis. that's all. take it how you want it. it was actually a lightly jab meant to make light out of the situation since we've all been here for a long time and know each other (to some degree)


@ Enkelfam, I wasn't referring to you.

Oh, ok. my bad to assume you are some punk who thinks Amharic is a backward language specially the one spoken by older people.

You don't know the meaning of "most of the words" I used? like which ones?

I would be careful of these light jabs in forums and emails, specially if you haven't acquainted well. There is no body language to read, or sound to hear, just words.

Yeah, I tried to see it lightly and I wanted to because I knew you were a cool person from you posts in the past.

Real scientific Amharic your ancestors used to calculate the Zodiac, the calendar and other mathematical formulas is being used in the country side today, there are words for every subject, there are sentence constructions that have expressions for some abstract ideas. If only we look inside ourselves we will find it.

The problem is we are raised to admire the west, to direct our focus beyond the ponds rather than inside to where who we are.
Reason that's important is because without it there is no development.

Every developed country, the Japanese, Chinese, Germans, US Americans all glorify theirs and see the world in light of their forefathers saw it. When you do that you move forward.

እንትፍ፣ እንትፍ እንበል እንዳላየን ቡዳ እንዳይበላቸው። እውነትም ማን ሊሞት ነው።


Lamrof, point well taken. Btw, your amharic is elegant with some flair to it, it is not the manederigna kind you hear spoken around atobuse terra :) I love it when people write in Geez/sabian alphabets, which by the way is more
phonetically exact than the latin alphabets.

Germans fear their language is being ruined by English

Fear is mounting among Germans that their language is being eroded by waves of English and other foreign jargon.

By David Wroe in Berlin

Published: 12:06AM GMT 17 Dec 2009 The Telegraph

After years of post-war Anglicisation and Americanisation, seven out of 10 Germans speak some English. But experts say there is a growing backlash against the widespread use of foreign terms in the age of globalisation, technology and immigration. Business leaders are growing tired of English "management speak".

A fortnight ago, Chancellor Angela Merkel's conservative party voted to enshrine the German language in the nation's constitution -- seen as a pointed gesture toward the large Turkish, Arab and African communities. And German companies are starting to shy away from relying on English in their marketing slogans, after years of using the foreign language so often that sometimes their own customers didn't know what they were talking about.


A slogan for the perfume maker Douglas, ''Come in and find out'', became famous because most people thought it was challenging customers to come into the stores then try to find their way out again. A Jaguar car slogan, ''Life by gorgeous'' -- which didn't made sense in English -- was interpreted by many Germans as referring to living in Georgia. A satchel, in German, is often referred to by the English term ''Bodybag''.

''Many people have decided that enough is enough,'' said Roland Kaehlbrandt, author of a book called German for Elites. ''They are not taking companies that only use English seriously any more. We are very open-minded and positive about everything that comes from outside, but there is a fear now that we may forget our own language and our own culture.''

After the war and during the Cold War in West Germany, English -- particularly through the influence of the US -- was simply cooler than German, he said.

At least 60 per cent of new words being used in Germany today are English.

''That's too much," Mr Kaehlbrandt said. "It's not because of funcationality. German is a very functional language. But there's a side to Germany that -- unconsciously, I think -- is trying to get rid of our heritage to get rid of our past, which is conceived as being linked to the crimes of the Nazis. But we have changed profoundly since then. And German language is much older than the Nazis.''

======

Read the rest here...
http://www.skyscrapercity.com/showthread.php?p=51038233#post51038233

http://www.abeshabunnabet.com/?p=3032

China’s minister for commerce says trade with Ethiopia will reach $3 billion by 2015.

ASK AN Addis Ababa taxi driver to take you to Ethio-China Friendship Road and he might just scratch his head.

The renaming of Wollo Sefer, one of the Ethiopian capital’s main thoroughfares, in tribute to the country’s burgeoning ties with Beijing might be obvious from the new street signs but it has yet to filter down to everyday use.

The road is not the only marker of China’s growing engagement with Ethiopia.

Addis Ababa’s ultramodern airport was built by the Chinese, as was the city’s ring road and flyover.

An extensive renovation of the African Union headquarters in downtown Addis is being financed by the Chinese to the tune of more than $100 million (€71 million).

Across the city, a Chinese government-built school, designed to cater for up to 3,000 students, offers Mandarin classes as part of its curriculum.

Scores of Ethiopians have been given scholarships to study subjects including engineering and architecture in China.

The Chinese restaurants and clinics advertising acupuncture and traditional herbal remedies that have become part of the landscape in almost every African city in recent years are here too. According to local media, some 1,000 Chinese companies operate in Ethiopia.

Besuited Chinese businessmen can be seen discussing deals in Addis hotel lobbies, while engineers and others fresh from working on road and telecommunications projects or building power stations and water supply systems haggle for souvenirs in the city’s sprawling Merkato before flying home to Beijing.

In some Ethiopian towns and villages, it is not uncommon for foreigners to find themselves being greeted by children yelling “China, China”.

Earlier this month Chen Deming, China’s minister for commerce, was in town predicting that trade volume between the two countries will reach $3 billion by 2015. Chinese investment in Ethiopia amounted to just under $1 billion last year, and there is much talk of future investment in agricultural projects.

“China and Ethiopia have been mutually supportive on the political front and closely co-operating on the economic front,” Chen said, going on to use the stock expression Chinese officials trot out when discussing relations with African states: “It is fair to regard the Sino-Ethiopian friendship as an all-weather one.”

China’s new engagement with Africa has played out very differently across the continent, helping revitalise moribund economies in some countries, while breeding resentment elsewhere due to support for unsavoury regimes, poor work practices and threatened local industries.

There have been a few cautionary tales for the Chinese along the way. In 2007, for example, nine Chinese oil workers were killed and seven briefly kidnapped in the restive Ogaden area of eastern Ethiopia.

Ethiopian prime minister Meles Zenawi says African states must be prudent in setting the parameters of the relationship.

“The Chinese interest in Ethiopia has been nothing short of a godsend,” he tells The Irish Times.

“We have benefited massively from it, but like everything else it is capable of becoming a nightmare . . . It is up to the host countries as to how they use the available resources from the Chinese in the best possible manner. Those who do will benefit, those who don’t may not benefit as perhaps they ought to.”

China’s assistance in building infrastructure and its investment in manufacturing has been invaluable for Ethiopia, Meles says.

“We need investment from any quarter we can get it. The Chinese have been more aggressive in investing in Ethiopia than many others and our hope is that Chinese investment will entice not only additional Chinese investment but also investment from other countries.”

But, as in every African country wooing Beijing, there is debate over who stands to gain. A 2008 study by an economist at Addis Ababa University noted that while Ethiopian consumers will benefit from cheap Chinese imports, small local firms, particularly in the clothing and footwear sectors, will lose out.

Opposition figures, like many of their counterparts elsewhere in Africa, mutter darkly about deals agreed behind closed doors, and speculate on the motives of both the government and Beijing.

One told me he suspects that the Meles regime sees China’s overtures as an opportunity to shore up support where it matters on the world stage.

Whatever way the debate shifts, however, the one thing everyone seems to agree on is that the Chinese are here to stay.

^^nice article Singidunum,

Here is a nice pic from BBC of the AU HQ construction site, being constructed by the Chinese

http://i50.tinypic.com/2z9fmdw.jpg




http://news.bbc.co.uk/2/hi/africa/8499451.stm

Egypt to build dams in Ethiopia

At a meeting in Cairo with representatives of Nile Basin countries on Sunday, Minister of Water Resources and Irrigation Mohamed Allam announced that Egypt had agreed to build several small dams in Ethiopia with the aim of generating electricity.

The Minister was quick to point out that the dams--to be built within the framework of a cooperation initiative with Nile Basin countries--would not affect Egypt's and Sudan's historical water rights.

Allam also declared that Egypt was in the process of helping Uganda remove flotsam in the Victoria Falls region of the Nile that had served to obstruct navigation and transport on the river.

The minister added that irrigation ministers from all Nile Basin states would soon meet in the Sinai resort city of Sharm el-Sheikh for a third round of talks over water-sharing issues.

"We will announce an exact date for the meeting once we agree on it," he said, explaining that Egypt was also cooperating with Nile Basin countries in a number of non-water-related fields, including industry, agriculture, trade and tourism.

Egyptian Trade Union Federation head Hussein Megawer, for his part, said that he planned to invite trade union heads from Nile Basin states to participate in Egyptian Labor Day celebrations.

"We will also discuss implementation of the action plans tabled by international labor organizations, especially those pertaining to environmental protection and conservation of natural resources," said Megawer.

Translated from the Arabic Edition.
http://www.almasryalyoum.com/en/news/egypt-build-dams-ethiopia

The Ethiopians and Ugandans should not accept any assistance from Egypt until a new agreement regarding rights to the Nile waters is adopted. Egypt is building these dams to improve its bargaining position.

Ethiopia says satisfied with performance of Chinese Company CGC in water supply sector
ADDIS ABABA. March 24 (PNA/Xinhua) -- The Addis Ababa City Government Water and Sewerage Authority (AWSA) on Tuesday praised the performance of the Chinese Company China Geoengineering Cooperation (CGC) in water supply sector.

Wondimu Tekle, the deputy technical general manager with AWSA, said in an exclusive interview with Xinhua that Addis Ababa's clean water supply has now reached 73 percent which was less than 48 percent two years back and AWSA has been striving to raise the city's clean water supply coverage to 95 percent from 73 percent now.

To this end, the authority has been working with CGC, a Chinese company which has an experience of over 10 years here in Ethiopia in construction of roads and water and sanitation projects.

Addis Ababa, the capital of the nation, is supplied with water from three main sources from two dams and one well field area, namely the Geferssa Dam in west of Addis, the Legedadi Dam in East, and the Akaki Kality well field area in the south of the capital.

Tekle said AWSA has managed to achieve the success through partnership with foreign contractors, especially with the Chinese company CGC.

CGC has been working with the authority over the last four years on water supply projects. Currently the company is undertaking a water supply project running from Akaki area to Gotera interchange which covers 18 kilometers. The Company is laying pipes and constructing transmitters and reservoirs.

The project with three Ground Water Sites is expected to be finalized by the end of June, raising the clean water supply to 95 percent in the city.

Had it not been CGC with quite good financial and technical capacity, the authority would not have gained this achievement, said Tekle.

He said CGC has helped AWSA a lot in undertaking the project as per the schedule in the contract, and by employing its sound management and technical skills.

Sun Guoqiang, the general manager of CGC, said the project with AWSA is going smoothly and upon completion the project will enable Addis Ababans to have easier access to clean water.

CGC has been in Ethiopia undertaking various roads and water projects in different parts of the country.

Bekele Gashu, an Ethiopian who has worked for over five years with CGC in roads and water projects, said he is happy to work with a Chinese company from which he drew tremendous lessons.

He has worked with CGC for projects in Dire Dawa, east of Addis Ababa and Wollo, north of the metropolis. He is now working on the water project in Addis Ababa.

Tekle said in addition to enabling the city administration to ensure the supply of clean water to residents, CGC has been transferring knowledge and skills to Ethiopian engineers and local staffs.

"Ethiopians learn more from Chinese including the habit of hard work. We learn work organization and time management," said Tekle.

Tekle expressed hope that CGC that is working with sound financial and technical capacity will compete and win tenders which the authority will float for further projects. (PNA/Xinhua) http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=266055

http://www.diretube.com/articles/read-saudi-expanding-investment-in-ethiopia_569.html

Saudi Arabian investment in the Ethiopian farm sector is expanding with many Saudis and local companies signing contracts with landowners to produce grains and other agricultural products, a report said.

“They either lease plots of land or enter into deals in cooperation with local partners,” Ethiopian consul general Tekleab Kebede was quoted as saying by Arab News.

Kebede added that Saudi investments, which can be 100 per cent of the project, are now adding up to millions of dollars.

Kebede drew attention to the fact that Ethiopia was abundant in land, water and labour, while Saudis were rich in capital.

“We have been giving the message to Saudis that we complement each other in boosting our bilateral business, investment and trade volumes. After all, both countries have close geographical proximity,” Kebede was quoted in the report.

Kebede added that the bilateral trade volume had exceeded $500 million.

Saudis have been increasingly investing in agriculture, tourism, hotels, mining and manufacturing, the report said.
I like the idea of co-operation with locals..

http://www.diretube.com/articles/read-saudi-expanding-investment-in-ethiopia_569.html


I like the idea of co-operation with locals..

Even though Ethiopia would gain a lot from a stronger partnership with Saudi Arabia, I personally have reserves about these investments in farms. This new trend is worrying because it feels like all these investors are only interested in are the African lands. I doubt that will benefit the host countries (as more of the output will be exported to Saudi Arabia here).

Even though Ethiopia would gain a lot from a stronger partnership with Saudi Arabia, I personally have reserves about these investments in farms. This new trend is worrying because it feels like all these investors are only interested in are the African lands. I doubt that will benefit the host countries (as more of the output will be exported to Saudi Arabia here).

Saudi Arabia is entering the room & Ras Siyan...........is getting worried. Don't you worry friend, we will give you more if you wish. Plenty of land for all.

Khadra Mohammed, First Lady of Djibouti, has received the 20 hectares of land in the Sebeta area for a flower farm, on Tuesday July 22, 2008, from Alemu Sime, Investment Bureau Head of the Oromia Regional State.
The First Lady received the plot on behalf of her son, Ayinashe Omar Guelleh, whom it was learnt, plans to engage in the booming flower sector.
^^^
We should seriously consider annexing Djibouti.:naughty:

Saudi Arabia is entering the room & Ras Siyan...........is getting worried. Don't you worry friend, we will give you more if you wish. Plenty of land for all.


^^^
We should seriously consider annexing Djibouti.:naughty:

Ahadu teasing me again....

I heard about that, man the ruling family (yes, Khadra Haid is probably the region's most influencial First Lady) are sucking us up! Seriously, they keep on purchasing here and there and no one is asking where they're digging the money from (obviously our tax money). This is insane!
It is not the first time they invested in Ethiopia (I have nothing against it, but Djibouti should come first). No wonder, Ismael Omar Guelleh was born there after all.
But really, the president's family are spending way too much and no one dares question that, while in the same time Djiboutians are poor and the unemployment rate is beyond alarming. This is disgusting.

Ahadu teasing me again....

I heard about that, man the ruling family (yes, Khadra Haid is probably the region's most influencial First Lady) are sucking us up! Seriously, they keep on purchasing here and there and no one is asking where they're digging the money from (obviously our tax money). This is insane!
It is not the first time they invested in Ethiopia (I have nothing against it, but Djibouti should come first). No wonder, Ismael Omar Guelleh was born there after all.
But really, the president's family are spending way too much and no one dares question that, while in the same time Djiboutians are poor and the unemployment rate is beyond alarming. This is disgusting.
I understand that you rather see investments being made in Djibouti first, but I am sure that they are investing plenty there as well. But keep in mind that investments isn't spending, so the plan is to get more back from Ethiopia, which probably will be spent in/on Djibouti.

Deputy PM says Indian investors have created 330,000 jobs: VIDEO (http://www.ethiotube.net/video/12779/ETV-News--Deputy-PM-Ato-Hailemariam-Dessalegn-says-Indian-investors-have-created-330000-jobs-in-Ethiopia) (Amharic)

Ahadu teasing me again....

I heard about that, man the ruling family (yes, Khadra Haid is probably the region's most influencial First Lady) are sucking us up! Seriously, they keep on purchasing here and there and no one is asking where they're digging the money from (obviously our tax money). This is insane!
It is not the first time they invested in Ethiopia (I have nothing against it, but Djibouti should come first). No wonder, Ismael Omar Guelleh was born there after all.
But really, the president's family are spending way too much and no one dares question that, while in the same time Djiboutians are poor and the unemployment rate is beyond alarming. This is disgusting.

Ras Syan,

I can't believe you think that way. Djibouti's economy is almost entirly dependent on Ethiopia while we are also highly dependent on the strategic location of your port.

However, we have a choice, you don't. We can chose to increase the usage of Berbera, Mombasa, and in the future Asab/Massawa and more. But for you, Ethiopia is the only giant in the region that you cannot afford to loose. On top of that, we're trying to bring you another customer (South Sudan) by building a road directly from Juba to Port Djibouti via Ethiopia.

107 billion birr(6.3 billion us dollars) projects licensed in 8 months.









107 billion Birr investment projects licensed in 8 months
Addis Ababa, April 13, 2011 (Addis Ababa) -

The Ethiopian Investment Agency has licensed 1082 investment projects with an aggregate capital of 107 billion Birr over the last eight months, its Corporate Communication Director said.

In an exclusive interview with ENA on Tuesday, the Director, Getahun Negash said of the total, 763 projects with the cumulative capital of 37 billion Birr are owned by foreign investors.

Local investment including public investment accounted for 70 billion of the 107 billion Birr of the total investment in which the country got during the period in reference (between July 2010 and February 2010)

Of the 70 billion Birr domestic investment the county received, private investment constituted two billion Birr while public investment worth 68 billion Birr.

The investment received during the reported period was greater than the envisaged plan (65.4 billion) by 41.6 billion Birr and than that of last year’s same period by 74.4 million Birr:banana:

Getahun said the investment projects licensed during the reported period will create a total of 71,000 new jobs.

Concerning the share of each areas of the economy, manufacturing has dominated the investment in terms of project numbers accounting for 241 of the 1082 projects licensed during the period in the reference.

Agriculture and real state stood 2nd and 3rd consisting 205 and 132 investment projects respectively followed by hotel and restaurant, and construction accounting for 45 and 43 projects respectively.:cheers:

(c) The Ethiopian News Agency

DEBRE BIRHAN – The Debre Birhan Town Administration in Amhara State last Saturday signed an agreement with an Indian investor to construct ceramic factory at a cost of over 285 million birr.

Town mayor, Getaneh Zike and Factory Managing Director, Ashaka Kajar signed the agreement. The mayor said on the occasion that the construction of the factory will help the country to substitute ceramic tiles being imported into the country.

The Director, Ashaka Kajar said on his part that the factory, which is expected to start operation within a year, will create job opportunities for over 400 people.

Upon going fully operational, the factory will produce 5 million meter square ceramic tiles per year, he said.

Source: Govt. Press Agency


Think the company is Kajaria from India.
checked out their website, Its pretty well organized:

http://www.kajariaceramics.com/templates/kajaria_home/images/logo.jpg

Kajaria Ceramics is the largest manufacturers of ceramic/vitrified tiles in India. It has an annual capacity of 30.60 mn. sq. meters, distributed across three plants-Sikandrabad in Uttar Pradesh, Gailpur in Rajasthan and Morbi in Gujarat.

The motivating factor remains the zeal, the zeal to be the best, to be at the top and to achieve the highest echelons of excellence. The manufacturing units are equipped with cutting edge technology. Intense automation, robotic car application and a zero chance for human error are just few reasons why Kajaria remains at the top in the industry.

http://www.kajariaceramics.com/

Good news. Considering the building boom, I would think there is a massive opportunity for people interested in manufacturing building materials. Even bathroom fixtures and kitchen cabinets are in high demand right now, but I don't see large scale production at all. If I had the finances to do it, that's definitely a sector to explore. All those people moving into the thousands of condos, houses and apartments every year will need to purchase these things.

^^ Exactly, more new homeowners will make it obviously a huge area.

I was hoping to see more local businessmen get involved in this also but so far it isnt moving as fast as it should. More hardware stores like Home Depot and the like should be sprouting soon as well, all of the ingredients are there it just takes a little effort and initiative.

Totally agree!
This is the time to start such initiatives; I hope we'll see some of the larger business groups venture into this completely untapped market.
For instance, western-style kitchen cabinets were not at all common a decade ago. Now though, if you go to a house/apartment built within the last few years, you'll see proper cabinets installed. The demand for it has gone through the roof. The problem though is you only have 2 sources for them: either you import high-end cabinets from Italy (there are a couple of companies that specialize in that), or you hire some random carpenter from Merkato to do it for you (shabbily usually). There's absolutely nothing for those wanting something in the middle.

An Ethiopian version of IKEA is a guaranteed succes, it's quite surprising that nobody has invested in it yet. If only I had Al-Amoudi's cash.

If only! I can think of SO many industries to invest in. I wonder what's taking so long for someone to do it. There are already large furniture manufacturers like 3F, but they're not modernizing their production methods to do it on a mass scale.
Another industry with great potential is electronics assembly, like fridges, stoves, radios, washing machines, etc. The demand is there, but the supply is entirely from imports. There is actually a shortage of maids now in the country due to their migration to the ME so people are looking for cheap alternatives. Sales of washing machines have gone through the roof as a result. My own Mom finally gave up looking for a maid and had a machine installed last year.

You know, I think an IKEA in Addis would do brisk business... though I'm sure a great deal of demand comes from contractors, and I'm not sure how good IKEA is with contractors.

Wind and Solar Power for GE

General Electric Company (GE), the U.S. multinational conglomerate corporation incorporated in New York and headquartered in Connecticut, U.S., will next week send its delegates here to hold talks with the Ethiopian Electric and Power Corporation (EEPCo) on renewable energy investment projects in Ethiopia, Mekuria Lemma, EEPCo’s Corporate Planning Head told The Reporter. GE, one of the world’s leaders in advanced technology, especially in the energy sector, has already shown interest to invest in Ethiopia in the renewable energy sector, according to Meheret Debebe, EEPCo’s CEO.

“GE has through the Ethiopian Embassy to the United Sates have contacted us and told us that they have interest to invest in Ethiopia,” Mekuria said. “However, the specific energy sub-sectors or ventures the company will be investing in and the amount of the investment outlays are yet to be known after the company holds talks with EEPCo and other concerned government offices and authorities.”

Sources said that representatives of GE has recently met with Prime Minister Meles Zenawi and expressed their interest to venture in the energy sector in Ethiopia.

The company is expected to invest in wind and solar energy projects, according to Mekuria. “We have shown to GE representatives the five-year Growth and Transformation Plan (GTP) very recently and we expect them to come up with a concrete plan.”

According to Mekuria, GE will provide the finance by itself for the investment projects it will be launching in Ethiopia.


continued here (http://www.thereporterethiopia.com/News/general-electric-set-to-invest-in-ethiopia.html) at Reporter

Taiwanese business delegation to visit Ethiopia

Forty Taiwanese business people from 29 firms producing a wide variety of items will visit Ethiopia on November 24.

Richard Wu Director of Taiwan Trade Center, Nairobi division says their experience in other African countries will benefit them in Ethiopia. He points to Ethiopia’s low wages, security, hardworking people and access to Djibouti port as Ethiopia’s attractions to the Taiwanese business community.

Garment and apparel manufacturing looks like the prime area of interest for the Taiwanese businesses and in 2010 one Taiwanese company had conducted an investment study here.

Richard said Taiwanese machinery and products are both high quality and competitive financially.

Next year another delegation, consisting of machine manufacturers is scheduled to visit Ethiopia as well.

The Taiwan Trade External Trade Development (TAITRA) headquartered in the capital city Taipei has been organizing an annual trade mission to Ethiopia since 2009 to familiarize the Taiwanese business community with Ethiopia.

According to Richard Ethiopian coffee, leather and hides and skins would be very attractive potential exports to Taiwan. Taiwan would like to export machines, fabrics and auto parts to Ethiopia.

Taiwan has no plans to open a trade center in Ethiopia as they already have a center in Kenya and conduct much of their businesses online. Their country representatives encourage Ethiopian businesspeople to approach the Nairobi center for recommendations concerning Taiwanese suppliers or visits to Taiwan if trade volume between the two countries increases in the future they would consider adding a center here.

The delegation hopes to attract the Ethiopian business community. The delegation will stay at the Hilton Addis Hotel and appointments can be made by emailing their center in Kenya.

Taiwan exported 2.7 million US dollars worth of goods to Ethiopia and imported 3.5 million dollars worth of goods, during the first 10 months of this year. However, Taiwan also exported 18.3 million dollars worth of products to Djibouti with the majority of them destined to Ethiopia.

Taiwan’s GDP was 430 billion dollars with a real annual growth rate of 10.88 percent and a Per capita GDP of 18,588 dollars in 2010.
Its main economy is in the service industry, which is 67.1 percent of GDP followed by manufacturing at 31.3 percent.

CapitalEthiopia

source (http://www.newsdire.com/business/2242-taiwanese-business-delegation-to-visit-ethiopia.html)

They won't go far, not with the influence the PRC has.

Chinese firms to spend $2 bln in leather sector


Two Chinese firms have teamed up to spend two billion USD in the Ethiopian leather sector in a venture that could transform the sector and create 100,000 jobs. A latecomer but hugely significant entrant to the Ethiopian leather sector is the Chinese Huajian International Shoe PLC which announced earlier this week that it signed a 10 year deal with the largest Chinese equity firm in Africa China Africa Development Fund (CADFUND).

The deal sealed back in January is worth two billion USD and will establish a light manufacturing zone in Ethiopia employing up to 100,000 and production turnover of four billion USD annually.

The announcement was made by Helen Hai a representative of the company during the inauguration ceremony of the fifth African Leather Fair (AALF). The company’s senior officials came to Ethiopia in October 2011 and met Prime Minister Meles Zenawi who courted them to start production as soon as possible, Capital learnt.

“We took the PM’s challenge and within three months we started shoe production from January 5, 2012 onwards and today we have about 600 employees and two production lines in Ethiopia,” Helen said.

Huajian was established 20 years ago with 18 employees to currently become the largest ladies’ shoe manufacturer in Ethiopia. In 2008 it invested 250 million USD in a raw hide footwear plant in Guangdong, China. The company presently has 20,000 employees spanning 47 production lines and an annual export volume of 300 USD million.

read the rest @Capital (http://capitalethiopia.com/index.php?option=com_content&view=article&id=622:chinese-firms-to-spend-2-bln-in-leather-sector-&catid=35:capital&Itemid=27)

Italian Companies to Invest Heavily in Ethiopia: VIDEO (http://www.ethiotube.net/video/18179/Italian-Companies-to-Invest-Heavily-in-Ethiopia) (Amharic)

It took the Chinese 3 months to start production, these people don't mess around. More job creating investments from the East!

That's a massive investment!

Is Walmart coming to Ethiopia?
http://www.thereporterethiopia.com/News/walmart-govt-negotiate-entry.html

No I say! The government seems to be doing this to punish local companies... this will destroy our infant retail sector. What kind of fool does this to their companies? Truly a sign of the idiocy of the government.

I was just coming to post that.

I'm not opposed to the entry of foreign companies solely as wholesalers. But instead of Walmart I prefer South African and Kenyan companies instead. Local wholesalers would have a better chance of competing with them than with Walmart.

Absolutely. Wholesalers would be a great addition, as well as foreign retailers with less of an impact (think McDonalds, or better, Nando's). But not a giant Wal-Mart. I'd like to see a Naukumatt, or a Woolworths, or a Game, but in limited amounts. Perhaps Al-Amoudi should put them all in his mall.

But the government needs to extend a hand to local companies. Supply chains, retail techniques, customer service- things like these, the government ought to create ways for companies to become versed in such things. And branding- even spelling! :lol: Tying back into language laws. I'd love nothing less to see a national chain of Bambis'! But anyway, we shouldn't be killing our own companies!

Ethiopia: Oromiya ranks #1 recipient of FDI over 10 years

Oromiya, the most populous and richest state in Ethiopia, is ranked as the number 1 recipient of Foreign Direct Investment (FDI) in Ethiopia over the past 10 years. The state has dwarfed the rest of the regions in Ethiopia in terms of receiving Foreign Direct Investment (FDI) over the last decade (2001-2011), the Ethiopian Investment Agency said.

Oromia has attracted 124.46 billion Birr of the over 357.98 billion Birr total FDI flow Ethiopia received in the last 10 years.

Addis Ababa ranks 2nd receiving 86.15 billion Birr of the total foreign investment in which the nation got during the reported period.

dNUfrtlvNNk

Props to Oromia!

^^ Ditto. The most populous region should be getting the most investments. With that said, I am concerned that Addis is 2nd. Other regions need to take precedence. We can't have 1 city sucking in so much investment.
If this trend continues, I'm worried we'll see a large wealth and social development gap emerging between Oromia/Addis and other regions.

Be leery of reports that confuse correlation with causation. I don't think Oromia got the most investment based on the merits of its population. It is very likely due to its proximity to the capital. Given that Addis is completely surrounded by Oromia, a significant portion of industrial/manufacturing investments responsible for the numbers are within the surrounding suburbs of Addis. It is by no means equitably distributed across the region. I'm certainly not of the mindset that this necessarily means that the people in the region are the direct beneficiaries.

I'd rather see the type of sustainable agricultural development and land management assistance that the Tigray region received over the same period in other regions than news of misleading statistics. It's no accident that the region historically prone to droughts and famines has not had a single incident in recent years while those who historically have had no trouble feeding themselves are now at the mercy of food aid.

Most investments are in the central region, but Oromia is definitely benefiting a lot from all of these manufacturing investments with thousands of jobs that are created.

Hersh; you make great points.

Well yes the fact that Addis is next door definitely accounts for a big part. The other part is that Oromia is pretty much the richest region in terms of resources, from mining to agriculture. Whether that's due to sheer size or whether it's just the best part of the country (land quality but also infrastructure) is debatable. But I'm sure that's a pretty big reason too.

East African Bottling Sees Ethiopia as Number One Market

The share company plans to invest 8.8 billion Br in eight years to expand operations

East African Bottling Share Company (EABSC) is on an eight-year investment spree of nearly nine billion Birr, intended to make Ethiopia its number one market in Africa by the year 2020.

The decision came after a study commissioned by the South African Beverage Company (SABCO) Coca-Cola, which holds an 82pc share in the Ethiopian company. The study was undertaken by two international banks, which were paid millions of dollars. Greig Jansen, managing director of the Ethiopian company, declined to identify the banks or state the sum paid to them for the study.

Ethiopia is among the top 10 fastest growing marketplaces in Africa for Coca-Cola, currently holding the fourth rank in market share, following South Africa, Kenya, and Uganda, according to Jansen.

EABSC found confidence in its investment decision of 500 million dollars, about 8.8 billion Br, in the findings of the study, the vastly improving infrastructure, the huge and growing population, and the growth of the country’s GDP per capita, according to Jansen.

“If you are serious about investing, you cannot afford not to invest in Ethiopia,” he said.

The decision is embodied in the company’s Plan 2020, which has been under implementation since the beginning of 2012. The plan incorporates new buildings, new plants, expansion of existing plants, diversification of products, and the expansion of distribution channels.

Already underway is the construction of a five-storey production building in the company compound at Abnet area in Lideta District, on Balcha Aba Nefso Street. The construction, contracted to Elmi Olindo & Co, will be exclusively used for production-related purposes, including storage of stock and raw materials. It will be the only such facility in Africa for Coca-Cola SABCO, according to Jansen. This building as well as a two-storey regular training building and a technical training centre, which are yet to be constructed, will cost close to 18.6 million dollars or 330 million Br.

Elmi Olindo & Co, in business since 1945, has also an established business relationship with EABSC. It executed Coca-Cola factory rehabilitation work from 2001 to 2003 and performed the expansion work for the Dire Dawa Plant, which replaced the old production line of the plant, at a capacity of two million cases a year, by a new modern production line at a capacity of seven million cases. It started the construction of the building in Addis Abeba on Wednesday, April 11, 2012, committed to deliver it by October 2012.

These buildings are part of a 52 million-dollar or 923 million-Br expansion, intended for the Addis Abeba Plant, including the installation of two additional production lines, bringing the total to five. One of these lines will be dedicated to packaging the company’s beverages in plastic bottles.

The original expansion of the Dire Dawa Plant, which saw production grow to seven million cases, as of February 2012, cost 20 million dollars. The new expansion, expected to cost the same amount of money as part of Plan 2020, will see the installation of one more line in 2012/13.

When the Addis Abeba and Dire Dawa expansions are finalised, the company expects a total annual production of 45 million cases. The plan includes three new plants in Bahir Dar, Hawassa, and a third plant to be located in western Ethiopia in a city yet to be identified, according to Jansen. Construction of the Bahir Dar plant will begin in August or September 2012, with production expected to begin in June 2013.

read the rest @ Fortune (http://addisfortune.com/Vol_12_No_624_Archive/East%20African%20Bottling%20Sees%20Ethiopia%20as%20Number%20One%20Market.htm)

Indian company wants to acquire and expand rubber plantation

An undisclosed Indian firm is apparently interested in a joint venture (JV) investment with the government’s rubber plantation and processing industry. The National Nucleus Project for a Rubber Plantation and Process Joint Venture was in the works for the past five years after a feasibility study conducted by foreign and local professionals was not able to attract interested investors.

The Indian company’s recently announced interest is the first for the joint venture investment. From February this year, the government had invited companies to submit bids of interest on the JV investment. Sources at the project office told Capital that the Indian company was the only firm that submitted a bid after the invitation was publicized by the Privatization & Public Enterprises Supervising Agency (PPESA), which administers state owned enterprises.

The government invited international and local investors interested in a joint venture or partial rubber investment to come on board. The plan is for the investment to be conducted on the west and southwestern side of the country, but had not attracted private investors so far.
Rubber plantation, mostly needed for tyre production, is one of the major projects whose development has been scheduled to be undertaken during the government’s five year Growth and Transformation Plan (GTP).

[....]

Meanwhile experts from the agency project have visited factory sites in Côte d’Ivoire and Malaysia; the biggest rubber producers in the world. Currently PPESA has a rubber plantation that is getting ready to produce latex, a major raw material to produce rubber sheet, on a 1,051hct of land at Bebeka Coffee Agriculture Development, 12Km from Mizan Teferi town, 561Km southwest of Addis.

In addition a 2,000hct on Addis Birhan Rubber Tree Development, which is close to Bebeka farm, has been allocated recently for rubber investment by the state. Addis Birhan is controlled by the former project office of Rubber Plantation and Processing that recently formed an enterprise. According to the sources, the processing plant will be installed in the same area as the new plantation compound of Addis Birhan.

As per feasibility study, 1.7 tons of dry rubber sheets can be produced per hectare per month. The rubber tree can give its white liquid rubber input (latex) for over thirty years from five years of age. Ethiopia has over 200,000 hectares of potential land for rubber plantation in SNNPR and Gambela.


read the rest @Capital (http://capitalethiopia.com/index.php?option=com_content&view=article&id=921:rubber-plantation-closer-to-fruition-&catid=54:news&Itemid=27)

Tesco eyes Ethiopian market


http://www.newsdire.com/news/2994-tesco-eyes-ethiopian-market.html

Ethiopia's beer companies acquisation by foreign companies continue.




International Intoxication

By Muluken Yewondwossen



Monday, 30 April 2012 17:35



Make no mistake the beer market is booming in Ethiopia as one of the last local breweries cedes control to multinational conglomerates. Dashen finalized their deal with British Duet Group last Thursday. Dutch giant Heineken, which owns Harar abd Bedele, announced they are to build a new 100 million euro brewery in central Ethiopia while Harar plans massive expansion.

Dashen Duet
Duet will pay USD 90 million for the nation’s youngest beer maker, located in Gonder, 738Km north of Addis Ababa; the only brewery in the northern part of the country.
At the final signing ceremony Thursday April 26 at Radisson Blu Hotel half was paid up front with the balance due in two years. Negotiations have been taking place since 2011.
In September 2011, Dashen that was established in 2000 by Tiret (endowment fund) in Gonder, took part in a bid to acquire Meta Abo Brewery in a joint venture with Duet. Although it was twice the floor price, their offer was much lower than other bidders. Dashen and Duet had offered USD 173 million for Meta. The two firms are said to have agreed that if the consortium was successful, Meta would be under Dashen but Duet would get 51 percent, and therefore majority control of Dashen.
That bid for Meta failed but the consortium continued negotiations to own majority of shares in Dashen.
As the months passed the consortium began visiting the brewery on several occasions and held frequent talks with their management and board.
Despite its youth, Dashen has gained a dominant share in the Ethiopian market. Dashen’s subsidiary, Gonder Malt Factory, which will become the second malt factory in Ethiopia, is almost finished
The deal will allow Dashen to expand the Gonder based brewery production capacity and open another branch brewery in the central part of the country, which given its proximity to Addis, is the nation’s largest beer market.
Dashen has already received 20hct of land from Debre Birhan in North Shoa Zone of the Amhara Region, 130Km northeast of Addis Ababa, to plant the second brewery. It will be the second brewery in Debre Birhan, joining Habesha Brewery Share Company which will start construction soon, according to sources.
Duet is a global alternative asset manager founded in 2002 with over USD 2.4 billion of equity under management as of January 2011 across its hedge funds, real estate and infrastructure investments. The group employs 73 professionals in London, New York, Tokyo, Singapore, New Delhi, Dubai and Istanbul.
Heineken Harar
Heineken will start producing its international brands from its new production centre in eastern Addis Ababa.
“The construction of the new brewery will commence as soon as we finalize pre conditions,” Johan Doyer, General Manger of Heineken, said.
The new brewery will make local beer brands Harar and Bedele, which were purchased by Heineken at a cost of USD 163 million last year.
They also plan to expand Harar’s production by one third at a cost of 400 million birr at Harar Brewery, located in south-eastern Harar 525Km east of Addis Ababa. That should be completed by 2013.
Juneydi Basha, general manager of Harar Brewery, said that the expansion project will allow the company to produce 120 million bottles of beer every year, a dramatic increase from the current 90 million.
The management of Heineken and Harar say the new factory will utilize a Japanese management system known as five steps which has been proven successful internationally. The managers also had a chance to travel to Burundi to share the Heineken experience and to apply what they observed in Burundi.
“The five steps have helped us manage stock, packaging and the workshop more efficiently,” Juneydi said.
Factory Expansion
According to Juneydi, the new expansion will be built in the current brewery compound. The total area of the company established 28 years ago is 112, 534sqm.
When the brewery was under PPESA it proposed expansion projects but the plans were not implemented due to lack of capital.
“The supply and demand gap will narrow when we start production after the expansion,” the general manager said.
The company has registered 105 percent of its target in the first quarter of 2012, which is 37 percent more when compared to a similar period in 2011. In the past fiscal year the company has registered an 80 million birr profit.
Juneydi who served the brewery as a manager for two decades has been there since its formation in 1984. The brewery plays various social and environmental roles in the area. It also contributes six million birr every year for the Harar Beer Football Club. Currently the brewery has 657 employees and 32 percent of them are women. Two weeks ago Harar Brewery was recognized at the second national quality awards by the Ethiopian Quality Award Organization (EQAO).
Harar is more prominent in Eastern Ethiopia because it is the only brewery there. Harar is its most popular product, taking up 70pct of its production with the non-alcoholic beer Sofi taking up 27pct followed by Hakim Stout at three percent.
New Brewery
The general manager of Heineken said that the new brewery known as the Green Field project will play a major role in improving the lucrative beer industry.
“When the Green Field beer plant starts production, local and international beer brands will be easily available,” Johan explained. Currently, Harar and Bedele have to transport hundreds of kilometres in order to reach Addis. Both Harar and Bedele are dominant brands in the eastern and western part of the country respectively.
The Heineken plant project has been studied by Harar Brewery for several years. Harar’s study that was called ‘Addis Green Field’ had been planned for the Dukem area, in the eastern outskirts of Addis. But Harar’s project was suspended due to lack of finance.
Heineken’s beer plant will be the second brewery in Addis Ababa with BGI Ethiopia, the biggest brewery in the country, and producer of St. George and Castel having three. Meta Abo brewery located 26Km west of Addis, is the other major beer maker close to Addis. The under formation Habesha also plans to build a new factory in Debre Birhan.





http://capitalethiopia.com/index.php?option=com_content&view=article&id=967:2012-04-30-17-38-21&catid=35:capital&Itemid=27

Access inks 2 billion birr (115 million USDollars) deal with Dubai based firm.



By Elias Gebreselassie



Monday, 30 April 2012 17:32




Access Real Estate Share Company (ARE) signed a two billion birr deal with a Dubai based firm Soliton Holding Limited, which will see its first investment in an African country.


The agreement framework will see Soliton providing project management and other technical resources to support ARE’s existing line up of developments with midterm supplementary construction capacity to be brought online.
Ermias Amelga, CEO of Access Capital the parent company of Access Real Estate, said the deal was an endorsement of what ARE is doing and what potential it has in store.
“It’s also a verification of what we’ve told our shareholders and what we’ve planned, helping ARE to become in a space of just three years, the most dominant real estate company in Ethiopia,” said a brimming Ermias.
Ermias further said that the deal which he saw as an affirmation of his company’s sound financial and delivery capacity of major projects to the clients’ wide variety of needs.
Access Real Estate currently provides housing ranging from a 399,000 birr apartment to a 10 million birr villa, with what it says is top quality.
However Ermias acknowledged that his company has failed to deliver on the first three of its 40 site projects which he blamed on a variety of reasons.
He noted problems related to the chaos created by the confiscation of some real estate companies who were alleged to have failed to fulfill their requirements six months after ARE entered into operation as well as to significant capacity problems with contractors and Access Real Estate itself.
He however countered critics doubt by saying Access is on track to deliver 1,200 units over the next 12 months out of 5,000 units its developing in its phase one plan which ranges from 12-24 months. In the second phase it plans to decentralize its activity to include even more projects.
Jurgen E. Herre, Managing Partner at Soliton Holding, said the company is not only here to consolidate its investments but also sees Ethiopia as a nucleus of its focus in Africa with the aim of transiting itself in six months time from a sales marketing organization into a construction oriented one.
The company says it looks for three values: quality, sustainability and reliability as its mutual benchmarking strategy and has found such in Access.
He also said the investment is not just financial investment but also providing know how and experience to boost the existing construction of ARE.
Soliton also says that it plans to restructure after three months time, contingent on the progress of the projects, while in six months time it plans to unveil its continent wide plans for the sector.
Jurgen further said they chose Ethiopia as their first gateway investment in Africa because of the vision of its leaders, stability and stunning growth rates.
Nevertheless both Ermias and Jurgen refused to be drawn into the modalities of the agreement such as the share of each company and profit sharing as well as conflict resolution mechanism in case the deal falls through per the contract.
Soliton Holding is a Dubai based company with offices in Hong Kong, United Arab Emirates, Germany and Africa with a focus on five specific areas of real estate, financial services, energy, healthcare and trading.
Soliton Holding and its partner companies have executed jointly projects with a combined value exceeding USD 30 billion.

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http://capitalethiopia.com/index.php?option=com_content&view=article&id=965:access-inks-2-bln-birr-deal-with-dubai-based-firm&catid=35:capital&Itemid=27

^^ Funny how access STILL hasn't delivered a single unit.

Ethiopian investment agency says FDI to Ethiopia increasing :cheers:





06 May 2012

Addis Ababa, May 5 (WIC) – The Ethiopian Investment Agency (EIA) said Foreign Direct Investment (FDI) flow to Ethiopia has shown a remarkable increase in the last nine months.

Agency Corporate Communications Director, Getahun Negash, attributed the increase to the improvement in the financial sector, promotional works and smooth licensing process.

Getahun told WIC that some 95 per cent of the country’s capital budget, about 61 billion birr, is covered from the FDI.

Chinese and Indian companies take the lead in the FDI activities of Ethiopia, he said, adding companies from Saudi Arabia, Yemen, Israel, UAE, Europe and the USA are also investing in the country.

A number of investors are also coming from African countries such as Sudan, South Africa, Nigeria, Egypt and Kenya. The African investors, as Getahun stated, are engaged in agro processing and manufacturing sectors.

More significantly, the returnee Ethiopian Diaspora from Europe and America are engaging in various investment sectors, he further indicated.

He said the agency issues licenses for foreign investment projects based on the feasibility of the projects and the priorities of the Growth and Transformation Plan (GTP).

Manufacturing, agriculture and service are among the sectors that the GTP gives priority, he said, adding selection of foreign investors will also be done on the basis of the job opportunities they will create, their export potential and their engagement in an import substitution.

According to Getahun, since September 2011, 123 companies with over 11 billion birr combined capital have started operation, thus creating job opportunities for over 31, 000 employees.






http://www.waltainfo.com/index.php?option=com_content&view=article&id=3113:eia-says-fdi-flow-to-ethiopia-increasing&catid=52:national-news&Itemid=291

World’s third biggest jeans producers to enter Ethiopia’s market
The company, whose name is withheld until it wraps up an agreement with the government of Ethiopia, is prepared to start business in the country with an initial investment outlay of USD 100 million, according to Rajeev Arora, executive director of African Cotton and Textile Industries Federation (ACTIF), told The Reporter.
source (http://www.thereporterethiopia.com/News/worlds-third-biggest-jeans-producers-to-enter-ethiopias-market.html)
It is the third largest ....and .....the name is withheld...looks confused statement to me
It would be nice to collect all textile and leather industry related FDI and big domestic investment (as well)... these sectors indicate first step towards industrialization

http://en.wikipedia.org/wiki/Arvind_Mills , might be them

^^ Funny how access STILL hasn't delivered a single unit.

The gov't has been giving them a really hard time. They've had a preference for Sunshine, what ever happened to them? Seems like Ihadeg is playing favorites...

Schulze Global Starts $100 Million Equity Fund for Ethiopia

Ethiopia’s first private-equity fund will see investments of $100 million in the Horn of Africa nation, said Gabriel Schulze, chief executive officer of Beijing-based Schulze Global Investments, which is managing the fund.
“The market is ripe and ready for private equity capital,” he told reporters in the capital, Addis Ababa, today. “We believe Ethiopia presents opportunities across the board.”
CDC Group Plc, the U.K.’s development finance institution, will invest $15 million in the fund, while the Schulze family will commit $10 million, said Schulze. It will reach its limit of $100 million by September, he said.
The $100 million will be put into as many as 22 Ethiopian companies in agriculture, manufacturing, education, health care, real estate, energy and tourism, Schulze said.
Government policy and development of private industries makes Ethiopia ready for the investments, he said.
“In the past five years there’s been a noticeable development in private sector support and foreign investor support,” Schulze said.

http://www.bloomberg.com/news/2012-05-09/schulze-global-starts-100-million-equity-fund-for-ethiopia.html

^^ Amazing news, I want to see more of that.

That's wonderful! My parents are working on starting a business now and I'm seriously considering moving back home as soon as I'm done with grad school here (just 1 summer session left), instead of waiting 5 years like I'd originally planned. This kind of news only pushes me more towards that.

Gabriel Schulze on investment in Ethiopia

LeFd92IDd0Y

That's wonderful! My parents are working on starting a business now and I'm seriously considering moving back home as soon as I'm done with grad school here (just 1 summer session left), instead of waiting 5 years like I'd originally planned. This kind of news only pushes me more towards that.

I'm also on the same boat. I had originally wanted to take my time but given the speed at which things appear to be moving, one would be a fool to wait too long. So, I decided to take a chance and jump in. Things are moving along as expected so far, and if things go smoothly enough, I might end up spending more of my time there than here by Autumn.

I say overcome your inhibitions and just do it.

Very commendable Hersh and Abesha. Spread the word as well so that others can 'overcome their inhibition' and take advantage of this immense opportunity.

Thanks for the support guys.

I'm really considering it. My dad just went to China to attend that huge trade fair they have in Guanghzu and he's invited me to go with him on his next trip (sometime in October or November). I'll make up my mind by then. Either way, the 5 year thing is definitely under consideration - even if I stay in the US beyond 2012, it's definitely not going to be until 2017. I'll probably just stay here long enough to save some money so that I don't start life in Addis from scratch. Two or 3 years should be plenty.

Hersh, things are moving really fast now. I'd said on this forum back in 2009 and early 2010 that things had quieted down because of the then upcoming elections, but that as soon as the elections passed peacefully, there would be a new surge of interest. That's exactly what's happening now, and the pace of change will only continue to increase. Good luck on your business! I hope to be in the same place soon. May I ask what kind of venture you're pursuing? I understand if you'd rather keep mum.

Yosiast, several people in my family have already gone back. Some went back as early as 2007 I think, and they're doing really well. But they all went back with money they'd been saving up, specially since they sold some properties during the peak, etc. I'm not in that position right now, which is why I wanted to wait a few years to build up my savings. My parents have enough saved up to start and run the business, etc, but I don't want to depend on them completely until we start turning a profit or anything.
My uncle and his wife are also considering moving back within the next couple of years to start a chemical factory of some type (he's a chemist). So there is an interest already within the community.

Are you planning on returning too?

^^ Congrats Abesha and Hersh, I wish u all the best! In what sectors are you guys planning to start your businesses?

Very commendable Hersh and Abesha. Spread the word as well so that others can 'overcome their inhibition' and take advantage of this immense opportunity.
+1

Hersh, could you write some words about your experiences with the local governments when it comes to the bureaucracy, etc.

I'm in a similar situation as abesha, I'm saving money right now and I definitely see my future in Ethiopia. Me and my friends have some idea's we might try our luck on in a few years, exciting times ahead. :)

Its nice to hear more Ethios are returning to invest , guys now is the time to invest after a couple of years things will get competitive.
I myself together with two family members started a project, are close to implementation fase , the company will be up and runing at the end of 2012. good luck to Hersh and Abesha

Thanks Ras Siyan!


Good luck on your project Vildana. Keep us up to date on how it progresses.

I second Yonii's question on bureaucracy, etc. :yes:

Hersh, things are moving really fast now. I'd said on this forum back in 2009 and early 2010 that things had quieted down because of the then upcoming elections, but that as soon as the elections passed peacefully, there would be a new surge of interest. That's exactly what's happening now, and the pace of change will only continue to increase. Good luck on your business! I hope to be in the same place soon. May I ask what kind of venture you're pursuing? I understand if you'd rather keep mum.

^^ Congrats Abesha and Hersh, I wish u all the best! In what sectors are you guys planning to start your businesses?

My venture is in the Tech sector. I have at least 4 solid and wildly profitable venture ideas (one in forestry) but this one is the only one I have the financial resources and expertise to tackle effectively. My only uncertainty is that it's been difficult to gauge the potential demand for my products and services.

If this succeeds, then it would have provided me with the footing necessary to tackle the other projects. When you hear about the first African Tech Giant, remember, you heard about it here first. :D

But for now, what I am most excited about, by far more than anything else I've considered thus far, is a social project I want to embark on at the end of the year....but I would need to start a new thread to talk about that. It would be cool if you guys joined me in that project. It's not so much for profit as it is for transforming Ethiopia.


+1

Hersh, could you write some words about your experiences with the local governments when it comes to the bureaucracy, etc.


As you would expect, shit is bureaucratic. In the west, it's not so much about who you know, but what you know. If you know the rules, then you're ahead of the game.

In Ethiopia, it's never about what you know but who you know. If you know the right people, the rules pretty much go down the toilet.

You will find that your first time will always be an unpleasant experience. I saw it firsthand when my cousin was trying to import 100 solar powered lanterns. Keep in mind that most officials are as dumb as a door knob when it comes to even the most basic things. They were convinced that these lamps were for resale even though it stated explicitly on the boxes that it is not, as determined by the manufacturers. They demanded 40k ETB as duty.

Anyway, long story short, we eventually managed to convince them to only charge 7k birr total.

After that, seeing that one of the heads at customs spoke Onyanese, my cousin moved in to solidify a long term "relationship." If you must do one thing, make sure it's making the right connections, even if it means having to spread a couple cheeks.

Its nice to hear more Ethios are returning to invest , guys now is the time to invest after a couple of years things will get competitive.
I myself together with two family members started a project, are close to implementation fase , the company will be up and runing at the end of 2012. good luck to Hersh and Abesha

Are you going to be importing or producing thing things locally/providing service locally?

Hersh

We have three projects , 1.Pharmaceutical (specialised medicins ,psychiatric and neurological medication) import, eventually local production. 2.Agro-industry coffee plantation, roasting & packing. 3.Hospitality B&B.
Planing to start no.1 at the end of this year.

Hersh- I need to think of something to get in the market. I too would like to hear about your plan.

Wow I'm excited about all these projects.

Yes the bureaucracy is out of control, but like you said it's mostly until you settle your first transaction. It's definitely not how things are done here, but it must be done.
My only suggestion is to hire a local to deal with all those issues.

Yes please start a thread on that social project!

Thanks for the support guys.


Yosiast, several people in my family have already gone back. Some went back as early as 2007 I think, and they're doing really well......Are you planning on returning too?

Indeed. That's my medium-term plan. In the mean time, I've been lucky enough to go back and forth for work where I've had a few opportunities to interact with local officials and see how things work. That said, I was born and lived there until my high school years so I always had an idea of the bureaucracy...but now looking at the ample opportunities that exist, one would be mistaken to not consider moving back and investing.

^^ Funny how access STILL hasn't delivered a single unit.

still waiting for mine to get started, disappointed but hopeful

Hersh is online. Perhaps he'll tell us now.

Indeed. That's my medium-term plan. In the mean time, I've been lucky enough to go back and forth for work where I've had a few opportunities to interact with local officials and see how things work. That said, I was born and lived there until my high school years so I always had an idea of the bureaucracy...but now looking at the ample opportunities that exist, one would be mistaken to not consider moving back and investing.

That networking you've done with local officials will really come in handy. I'm hoping to rely on my father's networking skills :lol:

Hersh is online. Perhaps he'll tell us now.

My idea is just replicating my business here in the US--at least for now.

With the introduction of my products, I hope to be the first authentically Ethiopian maker of PCs. Not to mention the most affordable, with prices at 1/3rd that of the competition. The long term plan is for assembly to be completely local.

My main concern now is the inexplicable malice (seemingly driven by envy) of some people in Ethiopia--especially towards people to whom they are related or know very well. It's really strange. That's how my brother lost his land.

There is also a tendency by govt officials and their cronies to steal great ideas and become your competitors (with the objective of squeezing you out) with the advantage of having the system on their side, especially if you become too successful.

I suspect I'll likely base my HQ in Kenya or another country in the region, if things work out. Ethiopia is just too risky for growing businesses if you don't intend to play their dirty politics.

Dubai Chamber Builds Commercial Ties with Ethiopia
* To Open Satellite Office in Addis Ababa

(MENAFN - Khaleej Times)

Dubai Chamber of Commerce and Industry will open its first overseas representative office in Ethiopia by the end of 2012, the business organisation announced following the successful conclusion of its trade mission to Addis Ababa. The opening of an office in Ethiopia will be the first in a series that Dubai Chamber intends to open as part of its new strategy to explore opportunities in untapped markets.

He said the opening of a representative office by Dubai Chamber was a positive step in advancing trade inflow between the two countries. H.E. Hamad Buamim, Director General, Dubai Chamber, said the business organisation had chosen to focus on Ethiopia due to the country’s close proximity and the availability of huge investment opportunities.

A new era in Dubai and Ethiopia's bilateral relationship commenced with Dubai Chamber of Commerce and Industry announcing the opening of a representative office by the end of the year in Addis Ababa. The announcement came at the successful conclusion of the Dubai Chamber Trade Mission to Ethiopia held from May 15 to 17.

Thirty Dubai delegates and 200 participants attended the UAE-Ethiopia Business Forum held in Addis Ababa on the second day of the Dubai Chamber Trade Mission to Ethiopia which sought enhanced bilateral ties with the African country.

H.E. Hamad Buamim, Director General, Dubai Chamber, stated that the trade mission, which came as part of Dubai Chamber's strategy to explore promising markets for its members, was highly successful as Ethiopia with its close proximity to Dubai is an ideal destination for the emirate's businesses as it offers ample opportunities in agriculture, construction, hospitality and tourism sectors.

He further stressed that selecting Ethiopia, which is the fifth largest economy in Africa and poised to become the third largest in the next 10 years, was not done randomly but the choice is based on a lot of research and studies as Dubai can play a strategic role as a gateway for Ethiopian exports in the GCC and Middle East region, South East Asia and Europe, he said.

Dubai Chamber also revealed the plans for the signing of a Memorandum of Understanding (MoU) with the African Union during the Eastern African Community (EAC) Forum in Dubai in October which will inform the business community of Dubai about the investment potential of the African countries while allowing both the sides to discuss joint cooperation in areas of mutual interest.

read the rest @MENA (http://www.menafn.com/menafn/1093515190/Dubai-Chamber-to-open-first-office-Ethiopia?src=RSS) & Yahoo News (http://finance.yahoo.com/news/dubai-chamber-builds-commercial-ties-143400014.html)



http://l2.yimg.com/bt/api/res/1.2/e2OIP9XXS4EffZly9UMU1g--/YXBwaWQ9eW5ld3M7Zmk9aW5zZXQ7aD0zMTg7cT04NTt3PTQ4MA--/http://globalfinance.zenfs.com/images/US_AFTP_BUSINESSWIRE_LIVE/ViewMedia_324915_original.jpg

Indian company to inaugurate a billion-birr steel factory

By Merga Yonas

Aarti Steel Plc, an Indian steel manufacturing company based in Punjab and Orissa, is scheduled to inaugurate today a one-billion-birr factory in the Galan area of Oromia Regional State. The company, located in the town of Galan, on the southeastern outskirts of Addis Ababa, has been established by the Indian investors after securing its business license on March 3, 2012.

For now the factory, based on 40,000 sq.m. plot of land, will produce only galvanized corrugated steel, Dinesh Satti, account manager at Aarti Steel Company, told The Reporter. Aarti, which has done substantial market research before entering into this market, will by next year manufacture various types of steel, including square and round steel tubes, Satti said.

Reporter (http://www.thereporterethiopia.com/News/indian-company-to-inaugurate-a-billion-birr-steel-factory.html)

Coca Cola to Kick Off Bahir Dar Plant Construction

Long time partner, ElmiOlindo, in charge of the construction



http://addisfortune.net/wp-content/uploads/2012/11/greig_coca_fac_bild_cont.jpg


By MELKEAM ASCHALEW

East African Bottling Company, the Coca Cola producer, received 30ha of land from the Bahir Dar city administration to build its third coca cola factory inEthiopiaat an outlay of 800 million Birr.

This is part of the 500 million dollar investment, which the company launched in April 2012, to be carried out by 2020. This plan includes three new plants, including one in Hawassa and another one in western Ethiopia, whose construction depends on the performance of the company’s other lines.

The construction of the new factory, which will begin early in 2013, and be completed in a year’s time, is prompted by Ethiopia being Coca Cola’s fourth most important market in Africa after South Africa, Kenya and Uganda, says Greig Jansen, managing director of the company. Currently, the company has factories in Addis Abeba and Dire Dawa.

The new site in Bahir Dar was surveyed by the company’s team from South Africain terms of accessibility of water, drainage and roads.

The company has signed on Elmi-Olindo to undertake the construction. This company has been undertaking rehabilitation and expansion projects for East Africa Bottling since 2001. Elmi-Olindo is already constructing a G+13 plastic factory for East Africa Bottling. The factory, whose construction is expected to be over in November, will produce plastic bottles for water, soft drinks and juices, says Greig.

Fortune (http://addisfortune.net/articles/coca-cola-to-kick-off-bahir-dar-plant-construction/)

Ethiopia to construct Industrial Park with 1.2 bln birr

The Ministry of Industry (MoI) has signed part of a 1.2 billion birr civil works agreement, with 13 local contractors, for the construction of Bole Lemi Industrial Park.

The project that consists of five industrial hangar-like sheds, four office blocks and other relevant construction works at the park will be completed within three months of the signing day.

Tadesse Haile, State Minister of MoI, said at the signing ceremony held on Thursday November 15, 2012 at the ministry office, the industrial park will include over 30 local and foreign industries when it becomes operational.
According to the State Minister, the park will include garment and relevant industries. “South Korean investors have shown interest in becoming involved in the industrial sector of this park.” He said that local industries that are able to engage in the export oriented business can join the industrial park being constructed by the federal government.

The Ministry office selected these contractors based on their performance on other projects rather than through the usual bid process. “We selected these contractors without a bidding process due to the fact that the project has to be completed within a short period of time, and these contractors have good performance records on previous projects that they did for the government,” Tadesse said.


In the first phase of the civil work, which will cost 633 million birr, seven grade-one contractors and six other contractors that are graded from 3 to 6, will be involved in the construction.

On this project two 10,000 square meters and three 5,000 square meters industrial sheds will be constructed.
In a separate deal, the Chinese contractor CGCOC will undertake the site’s sanitation project. This company is already constructing the road to the industrial park.

Tadesse informed Capital that the second phase of the project will begin immediately following the completion of the first phase, which is expected to end in January of next year. The total area of the industrial zone is 156 hectares and this park will be the first to be managed by the federal government.

When this industrial park is fully operational it is expected to hold over 50,000 employees.

Other medium industrial zones have been established by a few regional states in the past few years, but their performance didn’t go according to plan. The State Minister said that the federal government is already undertaking a study to make these regional industrial zones successful.

He said that his ministry also has an interest in constructing other industrial parks on a Joint Venture (JV) basis with other interested investors, but he said that the government have decided to undertake this and three other industrial zones before the end of the Growth and Transformation Plan (GTP), which will end in mid 2015.

“The other industrial zones that are expected to be constructed by the federal ministry in the coming two years are undergoing feasibility studies,” the State Minister said. Dire Dawa, Hawassa and Kombolcha will be the other locations for other industrial parks.

MoI has also received 243 hectares of land at the Kilinto area, Akaki Kality Sub City, and 1051 hectares from the Dire Dawa City Administration, Amhara, Tigray and Southern Nations Nationalities and Peoples’ (SNNP) regions.

According to the government’s plan, numerous industrial zones equipped with full facilities, including financial institutions and government offices, will be opened.

“We will give priority to industries that have a production chain or that strategically benefit the sector’s growth,” Melaku Taye, public relation head of MoI, recently told Capital.

According to the plan, private investors will come with their machines to start the production at the industrial zone, while the buildings and other facilities will be owned by the government.

Source: http://www.capitalethiopia.com

Ethiopian and Korean Companies Create Partnership
Monday, 03 December 2012 13:30 Meron Tekleberhan Ethiopian Business News - Investment
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M.K International a South Korean multinational company created a partnership with an Ethiopian company called IMEAT plc (Industry, manufacturing, Engineering, Agricultural and Trading).

The Memorandum of Understanding was signed between the two companies, M.K and IMEAT, last Sunday. The Memorandum created a deal that is expected to result in a variety of business exchange including international trading, manufacturing, agent-ship for the local, industrial processing, and regional marketing.

The partnership is expected to help the two companies to invest an estimated 1 billion US dollars in a range of different sector. M.K International is also prepared to take advantage of its experience in industrial park development in Ethiopia.

The plan also allows for participating in larger government projects such as affordable housing projects, power projects (hydro and solar), Industrial park developments, organic fertilizer production, etc.
MK is initially planning to penetrate the Ethiopian economy in two ways in particular explained Dr. Hae-Jung Jung, chairman of M.K.

The first means is through directly financing IMEAT's investments in Ethiopia, which includes the manufacture of corrugated roof materials, carton box and per-fabricated houses. The second strategy calls for creating business associations with other parties in Ethiopia through IMEAT.

M.K is a multinational giant company with an annual turnover of 3.5 billion US dollar and it is currently involved in investment in 41 different nations around the world with more than half of them in Africa.

Source: The Reporter

http://www.2merkato.com/201212031857/ethiopian-and-korean-companies-create-partnership