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An African Manufacturer? Ethiopia Gears Up To Emulate China, Vietnam And South Korea In Factory Output




ADDIS ABABA, Ethiopia -- From the outside, the China-Africa Overseas Leather Products tannery looks eerily idle. Long white buildings with blue-tinted windows surround a nearly empty parking lot, and the facility is so quiet you can hear the fluttering of the Chinese and Ethiopian flags out front.

But inside the gate and down past the office buildings -- where many of the Chinese employees work and live -- is a collection of massive workshops, and there you can hear the whirr of machinery as animal hides are soaked, threshed, tanned, shaved, colored and finished. About 450 Ethiopian workers are there to move things along.

The factory is situated just north of this capital city, in the town of Suluta. That's where most of its employees come from, including Wuberst Desalegn, a 22-year-old woman who has been working at the factory since shortly after it opened in 2010. She has since been promoted to the position of finishing director. Wuberst isn't quite sure where she'd be if she weren't working at the China-Africa Overseas Leather Products facility, she says. Perhaps at home.

"I think maybe I'll stay in this company," she added. She makes 1,400 Ethiopian birr ($74) a month, which easily covers her rent of 250 birr ($13).

The government of Ethiopia hopes that millions more will follow in Wuberst's footsteps. It has plans to turn its economy from a primarily agricultural one (farming makes up 43 percent of GDP and employs about 85 percent of the population) into one where manufacturing plays a larger role.

It's a strategy that hopes to emulate the successes of East Asian countries such as Vietnam, China and South Korea, where wages are rising as manufacturing operations grow ever more sophisticated. Higher costs in Asia could push international manufacturers to move to Africa, where labor costs are minimal and land is relatively cheap. Ethiopia wants to be ready for that influx, and has been saying so for years.

But manufacturing's contribution to GDP has hovered around 4 percent for years; for all their talk, officials haven't been able to nudge that figure upward. Some apparently intractable issues, including a dire lack of financing, shoddy trade logistics and a shallow pool of local experience, will have to be overcome before Ethiopia can realize its dream of emulating Asia's manufacturing boom.



The appeal of manufacturing for developing economies is simple: Factory employees have high labor output per capita and can earn far more money than workers in most other sectors.

"It offers prospects for labor-intensive growth," Lars Christian Moller, the World Bank's lead economist in Ethiopia, told IBTimes. "That's in contrast to a sector like natural resource extraction, which has very high value-added but doesn't require a lot of labor. You don't just want growth; you want employment and poverty reduction. The more workers that can be involved in production, the better."

Ethiopia has plenty to attract manufacturers from abroad. Its natural resources, including abundant livestock, thick forests and arable land for cotton, make it perfect for factories churning out leather, wood or textiles. "Ethiopia has some of the best leather in the world," said Ji Bingbo, a marketing officer at the China-Africa Overseas Leather Products tannery. Low wages were also attractive to the company; Ji says most workers make between 700 and 1,000 birr ($37-$53) a month -- rates that are failing to attract laborers in Asia.

Ethiopia, in turn, benefits not only from increased employment but from higher demand for its own products. The tannery in Suluta sources almost all of its raw materials from the country, bringing extra revenue to the livestock and chemical industries.

The Ethiopian government is working to attract investment, both foreign and domestic, said Girma Damte of the Ministry of Industry. "In a few years we intend for the economy to be taken over by the industry sector. We have provided various incentives to investors in the manufacturing sector, like customs exemptions and tax holidays. We are seeing that foreign companies are very glad to invest in the country because of the favorable conditions we have here," he said.

Boosting private enterprise in any sector will be a boon to Ethiopia, which faces an economic turning point. Its Gross Domestic Product growth has averaged 10.6 percent annually during the past decade, a ringing endorsement of the government's state-driven economic policies -- until now. GDP growth slipped to 9.7 percent in the fiscal year ending this July, and the World Bank has projected average annual growth of just 7 percent through 2016.

For a country that boasts the world's third-highest rate of public investment and the sixth-lowest rate of private investment, many economists are urging a sea change in the way Ethiopia pursues growth. Privatization will be key. And while the government has been hesitant to open up sectors like finance and telecommunications, it readily acknowledges that beefing up manufacturing would be an ideal way to spur foreign direct investment and broad-based growth.




Ethiopia will have to overcome some serious bottlenecks before it can realize its ambitions in manufacturing.

"The major problems are a lack of adequate capacity on the part of government offices to organize systematically, and in a manner to be capable of giving one-stop-shop service to investors," said Girma of the Ministry of Industry. "It's a very difficult job."

He points to a number of investor-friendly institutes that are opening up -- one for textiles, one for metals, one for pharmaceuticals and one for agro-processing, to name just a few -- and the hiring of two more state ministers of industry in order to help speed things along. He adds that the new minister of industry, Ahmed Abitew, has engineered some big changes since he was appointed this year.

"What he has done was to have several meetings with both domestic and foreign investors, just to pinpoint the problems they have. And next was to have meetings with stakeholders like electric power authorities, customs and other logistics sectors that can solve these problems."

But meetings and institutes are only the first step; for manufacturers, the problems are plain and simple. They primarily boil down to trade logistics, an area where Ethiopia's performance has actually been dropping over the several years. The World Bank's Trade Logistics Index has seen Ethiopia's rank slide to an abysmal 141 out of 155 countries in 2012, from 104 five years ago.

That means it's taking longer for containers to get to landlocked Ethiopia from its primary maritime port in neighboring Djibouti. It means that roads are bad, infrastructure is lacking and the power often goes out. Operations are not only slowing -- they are incurring extra costs, eating into existing investors' potential profits and discouraging new projects.

The China-Africa Overseas Leather Products, for instance, imports some of its soaking chemicals form China, and Ji says the shipments are expensive and can take more than 40 days to arrive at the facilities in Sululta. (World Bank data corroborates this estimate; by comparison, imports into Rwanda can take only 31 days.) He also says the power goes out frequently, though it doesn't shut down production because operations can manage on back-up generators -- another expense.

To fix these problems, Ethiopia needs money to make the investments. But after years of heavy public spending and successful efforts to bring inflation rates down into the single digits, Ethiopia's domestic savings have dwindled, leaving little for investment in the private sector -- including the manufacturers that Ethiopia covets.

"To invest you need to save, but Ethiopia doesn't have the same savings rate as East Asian countries did," said Moller of the World Bank. "The government is aware of that challenge; it's trying to mobilize savings such that it doesn't have to rely on foreign transfers or foreign borrowing."



These problems must be addressed if Ethiopia is to emulate Asian growth, but a favorable trend is emerging in the meantime: Foreign investors are bringing technical know-how and international connections into the country, which will benefit local companies that aim to follow suit.

"Foreign investors are already in a good position; they have enough experience," Girma said. "Many domestic investors have not been exposed to the modern manufacturing techniques, the international market or modern management systems. But that will change, and government will be obliged to give them special support."

It's a learning process -- and it's already working for Wuberst. "This is a good company," she said. "Before, I didn't how to work the leather. But they came and shared the experience."

The hope is that in time, as more foreign investors pour in and all of that technical expertise filters out into the Ethiopian population, industry could become the country's next big boom. That, in turn, would provide a case study for the rest of sub-Saharan Africa, which could replicate Asia's growth if it plays its cards right.
 

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Discussion Starter · #2 ·


Mesfin Industrial Engineering Plant in Mekelle. Currently building the tracks for the Addis-Dire Train tracks as well as Machinery for the Tana Beles II dam and sugar factory in omo valley.






Founded in 2010, Sunny Steel pipe manufacturing P.L.C has already become one of Ethiopia’s largest producers of hollow sections, round pipes, LTZ steel profiles and nails. The steel manufacturing business acquires wire rods, hot rolled and cold rolled coils and turns them into high quality finished products. Operating through a slitting line, tube mill production lines, a cut to length line, and nail making machines, we produce a wide range of products such as rectangular and square hollow sections, round pipes, LTZ profiles, sheet metals and different size nails.
 

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Aleta Land Group




The government is trying to convince businesses that are engaged in the service industry to build factories and join the manufacturing sector. One such company that manages to expand its business from Coffee trading to establishing manufacturing plants is Aleta Land group. On May 24, 2014, the company that was established 10 years ago with a paid up capital of one million Birr, has inaugurated three manufacturing plants of PP bag, PVC/ HDPE pipe injection and plastic products in Hawassa town, Southern Regional State, with a cost of 68 million Birr
Recent news about the company:
Aleta Land Group Aims At Opening a Trans-Border Coffee Shop in Asia
Aleta Land Coffee's facilities and green business in Ethiopia
 

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A Turkish company called KUMTECH, is going to establish a factory that will produce electric kitchen appliances, the factory will be built in Sebeta, with a cost of 1 billion birr. The company wants to make Ethiopia as its manufacturing hub, to distribute its products, for the African, US and European markets.

ኩባንያው ከአንድ ቢሊዮን ብር በላይ በሆነ ወጭ ፋብሪካ ሊገነባ ነው

አዲስ አበባ ሰኔ 06/2006 ኩምቴክ ኃላፊነቱ የተወሰነ ኢንዱስትሪያል የተባለ የቱርክ ኩባንያ ከአንድ ቢሊዮን ብር በላይ በሆነ ወጪ በሰበታ አካባቢ ለማብሰያ የሚያገለግሉ የኤሌክትሮኒክስና የቤት እቃዎች ማምረቻ ፋብሪካ ሊገነባ ነው።

ኩባንያው ምርቶቹን በኢትዮጵያ በማምረት በአገር ውስጥ፣ በአፍሪካ፣ በአውሮፓና በአሜሪካ ለማሰራጨት አቅዷል።

ፕሬዝዳንት ዶክተር ሙላቱ ተሾመ የኩባንያውን የቦርድ አባልና ዋና ስራ አስኪያጅ ኦስማን ኮሲኦሉንና ሳዲ አክቱርክን ዛሬ በጽህፈት ቤታቸው ተቀብለው አነጋግረዋል።

በዚሁ ወቅት ፕሬዝዳንት ዶክተር ሙላቱ እንዳሉት ኢትዮጵያ ታላላቅ የኃይል ፕሮጀክቶችን እየገነባች ያለችና ህዝቦቿን ወደ ዘመናዊ የኑሮ ደረጃ ለማሸጋገር እየተንቀሳቀሰች ስለሆነ ኩባንያው ለአገሪቱ ልማት አጋዥ ነው።

የኢትዮጵያን የልማት ግብ ለማሳካት ከፍተኛ ሚና አለው ያሉት ፕሬዝዳንት ዶክተር ሙላቱ የአገሪቱ የኢንቨስትመንት ህግ በሚፈቅደው ሁሉ ለኩባንያው ስኬታማነት መንግስት ድጋፍ ያደርጋል ብለዋል።

የቤት ውስጥ ማብሰያና የኤሌክትሮኒክስ እቃዎችን ከውጭ ለማስገባት አገሪቱ ከፍተኛ ወጪ እያወጣች መሆኑን የተናገሩት ፕሬዝዳንቱ የዚህ ኩባንያ በኢትዮጵያ መገንባት አገሪቱ ለውጭ ምንዛሬ የምታወጣውን ወጪ ያስቀራል ማለታቸውን የፕሬዝደንቱ ቃልአቀባይ ጽህፈት ቤት ገልጿል።

የኩባንያው የቦርድ አባል ኦስማን ኮሲኦሉ ከውይይቱ በኋላ ለጋዜጠኞች እንደተናገሩት ኢትዮጵያ ብዙ ህዝብ ያላትና የአፍሪካ ማዕከል በመሆኗ ምርታቸውን ወደ ተለያዩ አገራት ለመላክ ጥሩ አማራጭ ናት ።

በኢትዮጵያ ጥሩ የሚባል የመሰረተ ልማትና የኃይል አቅርቦት መኖሩም አገሪቱን ለኢንቨስትመንት ፍሰት ተመራጭ እንደሚያደርጋትም ተናግረዋል።

ባለሃብቶቹ ከ3 ወር በፊት 6 ሄክታር መሬት የተረከቡ ሲሆን በቀጣዩ 8 ወራትም ግንባታውን ሙሉ በሙሉ በማጠናቀቅ በአንድ ዓመት ውስጥ 1 ሚሊዮን 600 ሺ ብር በላይ የሚያወጡ ምርቶችን ማምረት እንደሚጀምር የቦርድ አባል ኦስማን ገልፀዋል።
 

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I've been saying this to everyone I know here - I don't understand why electronics assembly plants haven't opened here. The market is huge.
 

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I've been saying this to everyone I know here - I don't understand why electronics assembly plants haven't opened here. The market is huge.
Yep, with very little investment they can make huge lodes of money,,, toasters, kettles, cookers, blenders, microwaves, etc,,, can be made so easily in small cottage like production lines,,, we don't even need foreign companies for that, our own people and home grown companies can do it, if they put some effort and some capital on it.
 

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One new fashion I've seen everywhere is for people to buy tons of onions, peel and wash, then they take them to little souks and have them chopped by food processors. There are signs everywhere that say 'shinkurt inifetchalen.'

I bet those people would buy processors themselves if they were cheaper than imports.

Electric cookstoves, small fridges (for apartments), small ovens and microwaves are very popular too.
 

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One new fashion I've seen everywhere is for people to buy tons of onions, peel and wash, then they take them to little souks and have them chopped by food processors. There are signs everywhere that say 'shinkurt inifetchalen.'

I bet those people would buy processors themselves if they were cheaper than imports.

Electric cookstoves, small fridges (for apartments), small ovens and microwaves are very popular too.
Yeah, there's definitely a huge potential in small appliances. Especially with the new 'condo' lifestyle taking over. Btw love the 'shinkurt inifetchalen.' thing lol ... Man yiQaTelal be shinkurt
 

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Discussion Starter · #10 ·
Turkish Company to Build Factory in Ethiopia

Kumtek Industrial PLC, a Turkish company, announced it is going to build a factory in Ethiopia to manufacture household goods and electronics items.

According to the Ethiopian News Agency Kumtek plans to sell its products to Ethiopia’s neighboring countries as well as Europe and the United States of America.

On Friday, President Mulatu Teshome held talks with s Board Member of Kumtek, Osman Koseolu, and the General Manager, Akturk.

Mulatu stated Kumtek is a development partner to Ethiopia while the nation is determined to change its citizens’ lives.

The President further noted the Turkish company will play a huge role in helping the country in attaining it’s development goals. He also promised assistance to the company in accordance to the investment law and added the deal will enable his country save foreign currency.

Koseolu on his part said Ethiopia’s huge consumption has lured its company to invest in Ethiopia. He added the move by his company creates a good choice to export products as the nation is the center of Africa.

The factory is expected to be finished in eight months. When commencing production it will have a capacity of producing 1.5 Million Birr worth goods within a single year.


Falcon to Manufacture Construction Chemicals in Ethiopia

By forming a joint venture with Albazz Industrial PLC., Falcon Chemicals LLC, a United Arab Emirates based company, has decided to start producing construction chemicals in Ethiopia using local materials.

According to Mohammed Hassan, CEO of Albazz,, most of the raw materials needed for producing paint, coatings, adhesives and construction chemicals are found in Ethiopia. He added, being able to produce these products with local raw materials will create jobs, save foreign currency and reduce imports significantly.

Mohammed further explained the products are useful for different factories such as carpentry, joineries, furniture factories, paper and packaging industry, paper converting industries, bottle labeling, printing and cigarette industry.

Falcon’s Manager, MItika Gocunlda, on his part said other products will be used as glass replacement plastic which will reduce costs of materials used in telephone poles by 50 percent.

The State Minister of Industry, Mebratu Melesse, said some of the products, such as paint, will be used in the government’s housing program.

According to Capital, Falcon was first established in 1976 and now has diversified into several business sectors with wide marketing network access.

Source: Capital
 

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Import mogul to turn manufacturer​


Sabir Argaw founder of AlSam, and AlSam building in Addis (Ecx)

21 June 2014
Written by Neamin Ashenafi

The sister company of AL-SAM Plc, Repi Soap and Detergent SC and Wilmar International Limited (Wilmar), a leading Singapore agribusiness group, have signed a joint investment agreement for the upgrading of an existing manufacturing facility of Repi, and the building of a new integrated manufacturing complex in the Sebeta town of the Oromia Regional State.

Sabir Argaw, Board Chairman of AL-SAM Group, told The Reporter that the project would be finalized within the coming 14 months and that after the completion of the expansion work, Repi Soap and Detergent Factory, presently located in the Kolfe Keranio Sub City of Addis Ababa, would be transferred to a new facility that will be erected in Sebeta town, located in the Special Zone of the Oromia Regional State, on a 100 hectare plot of land.

Based on the agreement, both Repi and Wilmar will have a 50 percent stake in the USD 100 million expansion project. And, according to Sabir, forty percent of the project cost will be covered by initial investment contribution from the two companies (both financial and in kind) while the rest is expected to come from a bank loan.

The new manufacturing complex will include the production of an edible oil refinery, plants for specialty fats, soft oils, soaps, detergents and a packaging plant, as well as a facility for sesame seed processing.

Sabir also said that when the project is finalized and starts producing at its full capacity, it will be able to satisfy local demand for palm oil.

“Currently, Repi Soap and Detergent Share Company produces 21 thousand tons of detergents, and the expansion project is expected to boost its production capacity to 91 thousand tons of detergent annually,” Sabir told The Reporter.

read the rest @Reporter
 

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Ethiopia is now self sufficient in the production of power transmission cables and power transformer units,, good news, for the electrification of the country, and for the planned power export projects.

ኢትዮጵያ ለሃይል ማስተላለፊያ አገልግሎት ከውጭ የምታስገባውን ትራንስፎርመር በሀገር ውስጥ የመተካት ጥረት ውጤታማ ነው

አዲስ አባባ ሰኔ 16/2006 ኢትዮጵያ ለሃይል ማስተላለፊያ አገልግሎት ከውጭ የምታስገባውን የኤሌክትሪክ መሸከሚያ /ትራንስፎርመር / ምርት በሀገር ውስጥ ለመተካት የተደረገውን ጥረት ውጤታማ መሆኑን የውሃና ኢነርጂ ሚኒስትር ገለፁ።

የአገሪቱ የትራንሰፎርመር ፍላጎት ለሟሟላት በአሁኑ ወቅት በቀን ከ30 እስከ 35 ትራንስፎርመር እየተመረተ ነው፡፡

የውሃና ኢነርጂ ሚኒስትሩ አቶ አለማየሁ ተገኑ እንዳሉት መንግስት ባስቀመጠው አቅጣጫ መሰረት በአሁኑ ወቅት ለአገልግሎት የሚውሉ ትራንስፎርመሮችና ኬብሎች በሀገር ውስጥ እየተመረቱ ናቸው፡፡

ይህ ደግሞ ሙሉ ለሙሉ ከውጭ ግዢ ጥገኝነት ለመላቀቅ የተጀመሩ ጥረቶች የሚያጠናክር ነው ብለዋል።

የህዳሴውን ግድብ የኤሌክትሮ መካኒካልና የሃይድሮ መካኒካል ስራ በአገረ ውስጥ የብረታ ብረት ኢንጅነሪግ ኮርፖሬሽን/ሜቴክ/ እየተሰራ መሆኑና ይህም የአገሪቱ አቅምና ብቃት የሚያሳይ መሆኑን ሚኒስትሩ ተናግረዋል።

በትራንስፎርሞሮች የሚያጋጥሙ ብልሽቶች ከሃይል ጭነት ብዛትና ለረዥም ጊዜ እድሳት ሳይደረግለት ሲቆይ መሆኑን የገለጹት ሚኒስትሩ ነገር ግን ማንኛው ዕቃ ጥራቱን ሳይረጋገጥ ወደ አገልግሎት እንደማይገባ አስረድተዋል ።

በሜቴክ እየተሰራ ያለውን ትራንስፎርመር ደረጃውን ጠብቆ እንዲመረት ለማደረግ በምህንድስና ጥራቱን በማረጋገጥ እየተመረተ መሆኑን ተናግረዋል።

በብረታ ብረት ኢንጅነሪግ ኮርፖሬሽን የኢትዮጵያ ፓዎር ኢንጅነሪንግ ኢንዱስትሪ ምክትል ዋና ስራ አስኪያጅና የኦፕሬሽን ኃላፊ ሻለቃ አቡይ ገብረ መድህን የአገሪቱ የትራንሰፎርመር ፈላጎት ለሟሟላት በአሁኑ ወቅት በቀን ከ30 እስከ 35 ትራንስፎርመር እያመረተ ነው ።

በበጀት ዓመቱ በአጠቃላይ ከ7 ሺህ ትራንስፎርመር በላይ በማምረት ለተጠቃሚዎች ማድረስ መቻሉን ገልጸዋል።�

ኃላፊው እንዳሉት አገሪቱ ስታወጣው የነበረውን የውጭ ምንዛሬ ከማዳን ባለፈ በቅርቡ ትራንስፎርመሮቹ ለሚያጋጥማቸው ብልሽት ሃላፊነት ለመውሰድና በአስፈላጊው መጠንና ጊዜ ለማቅረብ አመቺ ሁኔታ ፈጥረዋል።

ከአገሪቱ ትላልቅ የሃይል ማመንጫ ግድቦች ግንባታ የሚመነጨው ሃይል ሊሸከም የሚችል የማስፋፍያ ፕሮጀክቶች እየገነቡ መሆናቸውም ገልፀዋል።

የአገሪቱን የትራንስፎርመር ፍላጎት ከማማላት ባሻገር ምርታቸውን ወደ ውጭ ለመላክ ከወዲሁ አስቀደመው እየሰሩ መሆናቸውንም ጠቁመዋል።

በኮርፖሬሽን የትራንስፎርመር ፋብሪካው ኃላፊ መቶ አለቃ አብርሃለይ ገብረኪዳን ፋብሪካው ዓለማችን የደረሰበትን 10 የጥራት መቆጣጠሪያ ቴክኖሎጂ በመትከል በጥራት፣በዋጋ፣በመጠን ተወዳዳሪ ለመሆን ትኩረት ሰጥቶ እየሰራ ነው።

እነዚህ የጥራት መቆጣጠሪያ ማሽኖች በተለያየ ወቅት የገቡ ትራንስፎርመሮችን ጥራታቸውን የመፈተሽ አገልግሎት መስጠት መጀመራቸውንም ተናግረዋል።

ባለፈው ዓመት ፌደረስ ከሚባል የህንድ ኩባንያ 2 ሺህ 600 ትራንስፎርመሮችን ተገዝተው እንዲገቡ መደረጋቸውን ገልፀው መንግስት ለተቋዋማቸው ትራንስፎርመሮቹ እንዲፈትሿቸው በሰጠው ሃላፊነት መሰረት በ23 ላይ በተወሰደው ናሙና ከደረጃ በታች መሆናቸውን አረጋግጠዋል፡፡

በሌላ በኩል ተቋሙ ትራንስፎርመሮችን ሲያመርት ከጥቃቅንና አነስተኛና ሌሎች ባለሃብቶች ጋር በመተባበር መሆኑን ገልፀው በዚህም ኮርፖሬሽኑ የዲዛይንና መመሪያ በመስጠት 40 በመቶ የትራንስፎርመር ክፍል በማምረት እያቀረቡ መሆናቸውንም ጠቁመዋል።
 

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Discussion Starter · #14 ·
The Gov is actually trying to move beyond Self sufficiency and into the export market.

A replica of China, Japan and the Asian Tigers economic policy of export lead.
 

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Discussion Starter · #16 ·
Industry Saved Ethiopia 1.5 Billion Birr in Foreign Currency

Hibret Manufacturing and Machine Building Industry disclosed in the just ended fiscal year it managed to save the nation 1.5 Billion Birr in foreign currency by producing machines here in Ethiopia.

Hibert is a sole machinery building in East Africa and claims to have finalized preparation work to export its products to Rwanda, Sudan and Djibouti.

In the just ended fiscal year, Hibret managed to produce a total of 1,000 machines of different sizes. Commenting on this Deputy Manager of Hibret, Captain Mesfin Seyoum, said the industry’s performance enabled Ethiopia to save over 1.5 Billion Birr in the noted period by substituting import machinery.

He furthered the 1,000 machinery produced are multipurpose, computerized and manually operated. They are also internationally recognized.

Among the products the industry manufactures some of them are spare parts for vehicles and aeroplanes as well as products that can be used for construction, manufacturing and industries.

The deputy general also noted the capacity created in the engineering sector has enabled the country to produce various machines without difficulty.

Hibret is under the Ethiopian Metal Engineering Corporation.
 

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Modern Electricity Meter Manufactured in Ethiopia
Modern electricity meter is manufactured in Ethiopia for the first time by Ethiopian Metal and Engineering Corporation.

The meter is manufactured by the corporation’s Hi-Tech Engineering Industry and dubbed Smart Energy. The meter is expected to save Ethiopia hard currency it spends for the purpose of importing the device.

Preparation work for distributing the appliance in the domestic market has been finalized.

Source: Fana Broadcasting Corporation


Ethiopia: Plant Starts Producing Diagnostic Reagents
Jourilabs Diagnostic Manufacturing Plant, an Ethiopian subsidiary of Amshaj Manufacturing Plc, was inaugurated on Firday, August, 8, 2014. The plant was built at the cost of 8 Million Birr and set to produce 20 types of diagnostics reagents.

According to Fortune, the factory collaborates with Sorchim, a leading Swizz enzymes supplier.

The General Manager of Jourilabs noted, it was the investment incentives and supports from the Ethiopian government that lured Amshaj to invest in Ethiopia.

Chief financial officer of Jurilabs, Louay Qussibati, noted raw materials for the plan are going to be imported from Sizerland and Spain.

Jourilabs Diagnostic Manufacturing was established in 2014 by joint venture between investors from French and Lebanese.

Source: Fortune


http://www.veooz.com/news/cHScAub.html
Ethiopia: Indian Company to Build Textile Industry in Mekele

An Indian Company, Velocity Apparel, has received 100 hectares of land in Mekele to build a modern textile industry with a starting capital of USD 150 million. CEO of Velocity Apparel, Siharz Sinaha, said the project will take five years to finalize and construction will start in September. According to Sinaha his company employs state of the art technology in its industries and has several textile factories in India, Dubai, Jordan and Egypt
 

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ብረትን ሙሉ በሙሉ የሚተካ ኮምፖሳይት የሚያመርት አዲስ ፋብሪካ እየተገነባ ነው

አዲስ አበባ ፣ ነሃሴ 29፣ 2006 (ኤፍ.ቢ.ሲ) በአገሪቱ የመጀመሪያ የሆነ ብረትን ሙሉ በሙሉ ለመተካት የሚያስችል ኮምፖሳይት ለማምረት አዲስ ፋብሪካ እየገነባ መሆኑን በብረታ ብረትና ኢንጂነሪንግ ኮርፖሬሽን የኢትዮጵያ ፕላስቲክ ኢንዱስትሪ አስታወቀ።

ከውጭ ይገቡ የነበሩ የፕላስቲክ ምርቶችን ሙሉ በሙሉ በአገር ውስጥ ለማምረት እየሰራ መሆኑንም ይፋ አድርጓል፡፡

የፓይፕ ፋብሪካ ኃላፊና የኮምፖሳይት ፕሮጀክት ስራ አስኪያጅ ሻምበል ሳሙኤል ኡኑኖ እንደገለጹት፥ በዓለማችን የፕላስቲክ ቴክኖሎጂ የደረሰበትን ኮምፖሳይት ቴክኖሎጂ በአገር ውስጥ ለማምረት አስፈላጊ ቁሳቁሶች የማሟላት ስራ እየተከናወነ ነው።

የማምረቻ ቴክኖሎጂውን ከእስራኤል አገር እንደሚጣ በማድረግ እና ከጥቅምት ወር ጀምሮ ባለሙያዎችን ወደ እስራኤል በመላክ የተግባር ልምምድ እንዲያደርጉና ቴክኖሎጂውን ተላምደው እንዲመጡ የማድረግ ስራ ይሰራል ብለዋል ሃላፊው።

ኮምፖሳይትን በማምረት ሙሉ በሙሉ ብረትን ለመተካት የሚያስችለው ፋብሪካ 185 ሚሊዮን ብር የተመደበለት ሲሆን፥ በአሁኑ ወቅት 50 በመቶ ተጠናቋል።
ፋብሪካው በመጪው አመት ሙሉ በሙሉ ተጠናቆ ማምረት እንደሚጀምር ገልጸዋል።

የኢትዮጵያ ፕላስቲክ ኢንዱስትሪ በ1955 የተመሰረተ ሲሆን፥ በአሁኑ ወቅት ከ500 በላይ ሰራተኞች በቋሚነት እየሰሩ ይገኛሉ።

ምንጭ፦ ኢዜአ


......This thread should be merged with FDI news it doesn't give sense to separate them as most of the FDI goes to manufacturing Industries...
 

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Discussion Starter · #20 ·
......This thread should be merged with FDI news it doesn't give sense to separate them as most of the FDI goes to manufacturing Industries...
Originally I created this thread for local manufacturing industries as opposed to foreign once.



Gov’t Introduces 4b Br Enterprise to Supply Manufacturing Inputs




Enterprise will open factories in neighbouring countries to export inputs home


Eager to boost manufacturing export from Ethiopia, the government is planning to open factories outside the country to export inputs that manufacturers in the country will need.

This will be part of the job for the four-billion Birr Ethiopian Industrial Inputs Development Enterprise (EIIDE), whose job will be supplying inputs to some parts of the manufacturing sector both by producing them and by procuring from local and international markets and by manufacturing them. The government expects this enterprise to undertake its manufacturing activities through factories it will establish both in Ethiopia and outside.

The bill for the establishment of this enterprise, which will come with the dissolution and take over of the resources of the Merchandise Wholesale Import & Trade Enterprise (MWITE), was approved by the Council of Ministers two weeks ago.

The new enterprise is meant to rescue the ever failing performance of the manufacturing industry, which has been largely challenged by the shortage of supply of inputs leading to continuously disappointing records, despite an ambitious Growth & Transformation Plan (GTP).

Ever since the beginning of the GTP in 2010/11, government plans have grown contrary to its actual delivery, with performance falling progressively short of targets – from 58.6pc in the first year to 54pc and 51.8pc over the following two years. It has now reached a new bottom of 25pc. During these four years, Ethiopia’s export revenue has been growing sluggishly – up from 207.9 million dollars to 255.4 million dollars, then 281.1 million dollars and finally 398 million dollars – up by nearly 117 million dollars from the previous year.

The performance of the three categories where the government had pinned its hopes and to which the new enterprise is going to supply inputs were textiles and garments, with a target of 350 million dollars; leather and leather products with 347 million dollars, and agro processing with 250 million dollars for the 2013/14 fiscal year. The performances in these areas, all below 40pc, were 111 million dollars, 133 million dollars and 76 million dollars, respectively.

Accordingly, the Enterprise will establish three leather processing factories in Sudan and one in Somali land, which will process raw leather at a pickle and wet blue level and export to Ethiopia, according a source close to the issue.

“The government has already conducted a study for the import of semi processed leather,” this source told Fortune. “Sixty million Birr budget is proposed for the establishment and operation of these factories.”

The bill, which was prepared by the Ministry of Industry (MoI), has counted on the experience of the India and China on the idea of investing abroad and importing semi processed inputs that the factory established abroad will produce, in order to match the growing demand of domestic industries, according to a source with knowledge of the drafting process.

The new enterprise will also have a 200.5 million Br budget to grow cotton in partnership with private investors, with the enterprise owning 51pc share, according to a document that Fortune has acquired.

A little more than half a billion Birr will also be allocated to the enterprise for the purchase and transportation of inputs for leather and leather products and agro-processing industries as well as cotton for textile industries that will be used for the running fiscal year of 2014/15, according to sources close to the issue.

This is a “principled approach” by the MoI, says Fasil Tadesse, president of Ethiopian Textile & Garment Manufacturers’ Association (ETGMA).

“It will make sure that inputs are delivered to the textile and garment manufacturers appropriately,” he told Fortune. “Stabilising the market, it will enhance the competitiveness of the sector in the international market.”

Out of the close to four billion authorised capital for the new enterprise 1.4 billion Br is paid up both in cash and in kind, according to the constituting law of the enterprise. Close to half of this is an amount that is transferred to the new enterprise from the dissolved MWITE, according to sources. In addition to its assets and capitals the liabilities and rights of MWITE are also transferred to the new enterprise, according to the establishment regulation, which has also repealed the law that established MWITE.

Established in 1993 by the merger of two previous trading corporations, the Ethiopian Domestic Distribution Corporation (EDDC) and the Ethiopian Import Export Corporation (EIEC), MWITE currently has 83 branch offices in Ethiopia, out of which 35 supply basic commodities. Its authorized capital is set at 90 million Br, out of which 50 million is paid-up. The products it supplies are also more varied, ranging from basic commodities like sugar and palm oil to building materials, foodstuffs, paper, stationery items, textiles and government.

On top of ensuring the availability and adequate supply of industrial inputs for the sectors that the government has pinned its hope in the transformation of the country’s economy, the new enterprise will also engage in the export of the inputs, which are found to be in excess of the domestic industries consumption.

This has to do with the experience of the country in 2011/12 when the production of cotton had by far exceeded the domestic demand of textile factories. A total of 29,710tn of cotton were found to be a surplus out of the 79,710tn produced in the year. That had led to many cotton growers shifting to other cash crops such as sesame, which in turn led factories to import cotton from India, China and Turkey. Three textile factories have imported an aggregate of 3360tn of processed cotton from these countries, according to the latest data available from the TIDI.

This is also welcome news for the cotton growers though with uncertainties.

“The existence of an entity that will make timely purchase at times of excess production will solve the marketing problem we have been facing for the last two years,” said Yusuf Umer, managing director of Amibara Business Group and a board member of the Ethiopian Cotton Producers, Ginners & Exporters Association (ECPGEA).

The price at which the Enterprise will buy from them will be an issue to worry about when the time comes, he adds.
 
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