22 Sept 2014 Business News


The Ethiopian Delegation in Canada Met With Senior Management Officials of Allana Potash



The Ethiopian delegation in Canada for the Canada Africa Summit met last week, on Monday (September 15), with senior management officials of the Allana Potash Corp. in Toronto.

KassaTekle-Berhan, Speaker of Ethiopia’s House of Federation; Alemayehu Tegenu, Minister of Water, Irrigation, and Energy; Tolasa Shagi, Minister of Mines; Fitsum Arega, Director General of the Ethiopian Investment Agency; and the Ambassador of Ethiopia to Canada, Ambassador Birtukan Ayano held talks with Mr. Farhad Abasov, President and CEO of Allana Potash; and Nejib Abba Biya and Peter Maclean, Senior Vice-Presidents.

Speaker Kassa told the Allana officials that “hard work, sheer determination and the will of the people” helped the nation make headway in economic, social and political developments. He emphasized that the country was committed to sustain this momentum for the betterment of the lives of the people.

Ethiopia, he said, was determined to responsibly develop its natural resources aiming at transforming the economy and achieving a middle income status by 2025. He also noted that Allana Potash’s presence and its activities in Ethiopia were a central element in the pragmatic cooperative partnership that existed between Ethiopia and Canada.

Farhad Abasov, who welcomed the delegation and expressed his thanks for the role of the Government and people of Ethiopia in his company’s successful potash project, noted that Ethiopia had produced steady economic growth and political stability. Its positive developments and tangible results were testimony to the Government’s forward-looking approach, and he stressed Allana Potash was ready to be part of this success story. Mr. Abasov briefed the delegation on the benefits for the soon to be built potash mine for the local community in the Afar Region, and said the mine, which expects to produce a million tones a year, would be in operation for 25 years. It would, he said, make a tremendous contribution towards improving the lives of the local community.



Al-Amoudi to Invest $500 Million in Ethiopian Coffee, Oranges




By William Davison Sep 21, 2014

Horizon Plantations Ethiopia Plc, majority-owned by Saudi billionaire Mohamed al-Amoudi, plans to almost double annual revenue within three years by investing at least $500 million in coffee and orange projects.

The agriculture company will train workers, improve roads and replace washing units at the Limmu and Bebeka coffee plantations, which together have over 18,000 hectares (44,479 acres) under coffee, General Operations Director Kemal Mohammed said in a Sept. 17 interview in Addis Ababa, Ethiopia’s capital. The development is part of a five-year program to invest in projects that also include Upper Awash Agro-Industry Enterprise, the country’s largest orange grower with 1,200 hectares of citrus, he said.

“We are sure because of the initiatives we have now, because of the inputs and techniques we’re applying, the productivity will increase to the maximum at the end of the five years,” Kemal said.

Ethiopia, Africa’s biggest coffee producer, may see earnings from shipments of Arabica coffee rise 25 percent to about $900 million in 2014-2015 as prices rise because of shortage caused by a drought in Brazil, an exporters’ association said last month. Horizon bought the two coffee farms for 1.6 billion birr ($80 million) last year from the Ethiopian government, which is seeking investment in projects that process agricultural products.

Horizon has a sales target of 500 million Ethiopian birr by 2017, Kemal said.

Bebeka, in southwest Ethiopia, is the world’s biggest unfragmented coffee estate with 10,030 hectares under plantation, according to the company’s website. Limmu, 350 kilometers (218 miles) southwest of Addis Ababa in the Oromia region, has 8,000 hectares under coffee and produces 5,000 tons a year of the beans.

Foreign Investor

Al-Amoudi, born in Ethiopia in 1946 to an Ethiopian mother and Saudi father, is one of the country’s largest foreign investors and operates its biggest cement factory and only large-scale gold mine. He also runs construction and oil operations in Saudi Arabia, Sweden and Morocco and is the 143rd richest person in the world with a net worth of $8.6 billion, according to the Bloomberg Billionaires Index.

Investment in Limmu may help double production to about 1.5 tons a hectare by 2018, Kemal said.

Bebeka Coffee Estate doubled production to about 1.4 tons of coffee last year, according to Kemal. Around 90 percent of the company’s coffee last year was directly sold to buyers in countries including the U.S., Germany, South Korea and Japan, Kemal said.

Horizon, which is part of al-Amoudi’s Midroc group of companies, is looking for a foreign partner to invest in the Coffee Processing and Warehouse Enterprise on the outskirts of the capital. The plant was bought from the government last year for 228 million birr, Kemal said.

“We need very good, genuine partners who can work with us and support us” to make competitive processed and packaged coffee, he said. “To penetrate the foreign markets is not an easy task.”

To contact the reporter on this story: William Davison in Addis Ababa at wdavison3@bloomberg.net

To contact the editors responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net John Bowker, Randall Hackley



Ethiopia Prepared to Launch an Urban Land Information System


ign     geomark

The Ministry of Urban Development, Housing and Construction (MUDHCo) is about to launch the implementation of Urban Land Information System project. One of the objectives of the Ministry of Urban Development, Housing and Construction (MUDHCo) is to curb the problems of mismanagement and increase the real pension in urban areas through the establishment of the Cadastre and Real Property Registration System.

The assessment of the existing situation clearly shows that the data formats used to store the cadastral and real property records as well as the data models are not consistent enough to make integration of the data at regional and federal level and that there is no clear definition of when and which data format is applicable. Moreover, the lack of well trained personnel to carry out cadastral and real property registration activities is another characteristic of the existing system.

In July 2014, the international Consortium led by IGN France International was awarded a 2 year contract for monitoring the implementation of the Cadastral and Real Property Information System. IGN France and GeoMark Plc are also involved in the consortium.

The main objective of the project is to assist and support the MUDHCo in successfully accomplishing the design, development and deployment of the Cadastral and Real Property Information System through this supervision project. The activities taken in charge by the consortium include the following tasks:

  • Achievement of the system development specifications
  • elaboration of the standards
  • gathering and formalisation of user requirements
  • elaboration of general system architecture
  • supervision of system development and deployment
  • training and capacity building activities implementation

The system will be deployed in six pilot regions (Addis Ababa, Harar, Oromia, SNNP, Amhara, and Tigray). In the perspective of land and real estate property management with up-to-date technologies, the MUDHCo will ensure the implemented system is reliable, effective, secure and easy for use.

It is interesting to remind that in the recent years, IGN France International has successfully implemented large land administration projects in Latin America and Africa. Its latest reference was in Uganda with the implementation of the DeSILISoR (Design, Supply, Installation, Implementation of the Land Information System and Securing of Land Records) project, whose goal is to secure property titles through the development of a land information system and the establishment of a National Land Information Centre.

About IGN France International

IGN France International, created in 1986, is an international subsidiary of the French IGN (National Institute of Geographic and Forest Information). Over the years, the company has shown itself to be a major player in both of its sectors of operations: geographic information (acquisition, processing, and modeling) and geographic information systems (design, implementation and integration). It works on all types of projects in the following fields: mapping, cadastre and land administration, urban planning, energy, environment, risk management, water, security/precision work, agriculture.
Find out more about IGN France International’s projects by visiting www.ignfi.com

About GeoMark Systems Plc

Since its inception in 2004, GeoMark Systems Plc —Ethiopia’s lead in the geospatial domain using state of art geospatial technologies in the implementation, consulting, developing and delivering solutions for municipalities, governmental as well as non-governmental offices and institutions. It is a key member of the five sister companies and benefits a resource of over 75 employees of professional GIS, ICT, surveyor, planners, geographers, engineers, management personnel, etc. GeoMark has demonstrated excellence in all aspects of spatial data systems leveraging a combined skill set in GIS and data acquisition, system design and integration, application development, infrastructure and utility design, regional & urban planning, urban management, multifaceted trainings, etc.

Find out more about GeoMark Systems Plc’s projects by visiting www.geomarksystems.com/



Ethiopia to host energy, water financing forum


Ethiopia to host energy, water financing forum


A shared commitment to promote microfinance as an instrument against poverty and hunger has led a network of 15 African microfinance institutions and the UN’s capital investment agency to stage a joint forum on energy and water financing next month in Ethiopia.

‘Innovation in clean energy and water access through microfinance’ is the theme of an event to be hosted by the Participatory Microfinance Group for Africa (PAMIGA) and the UN Capital Development Fund (UNCDF) in Addis Ababa on 30-31 October 2014.

The forum has been formally announced on Friday by PAMIGA’s Chief Executive Officer, Renée Chao-Béroff, and UNCDF’s newly-appointed Executive Secretary, Judith Karl.

It will combine two annual events: PAMIGA’s Expert Meeting on lessons learned from Africa to improve access to clean energy and water through microfinance, and UNCDF’s CleanStart Connect 2014 which unites leading energy and financial service providers, investors, policy makers and development partners to advance practical solutions to reducing energy poverty.

According to Ms Chao-Béroff, the event will incubate new ideas in microfinancing and guide actors involved in increasing access for financially-excluded populations to clean energy and water services.

“We’ve developed what we hope will be a thought-provoking and inspiring two-day programme to stimulate debate and share learning about good practices in financing, including by examining PAMIGA pilot studies in different parts of Africa,” Ms Chao-Béroff said.

Speaking in Addis Ababa during her first official visit to Africa, Ms Karl welcomed the collaboration with PAMIGA through UNCDF’s global CleanStart programme.

“The field of energy access is evolving quickly with exciting solutions being tested, many of which will be discussed at the forthcoming forum in Addis Ababa. It is through partnerships like this with PAMIGA that UNCDF can be at the forefront of supporting the widespread uptake of viable clean energy options for off-grid populations in Asia and Africa,” Ms Karl said.

Among the topics to be covered are consumer financing models – through microfinance, pay-as-go models and village electrification – as well as last mile solutions, impact investment for scaling up and impact measurement.

Around 100 delegates from Africa, Asia, Europe and North America are expected, representing financial institutions, energy and water suppliers, governments, non-governmental organizations and other development partners.



Nation to establish enterprise to coordinate textiles sector


Nation to establish enterprise to coordinate textiles sector


Textiles Industry Development Institute announced plan to set up a national enterprise aimed at addressing challenges related to shortage of raw material supply.

Institute Director-General, Sileshi Lemma, said that the Enterprise will help create linkage between cotton producers and textile industries.

The Enterprise will have the mandate to purchase, sell and store raw cotton, according to the Director-General.

This will help realize the country’s plan to make the nation a preferable destination for textile companies.

He said the country is cultivating cotton on more than 125,000 hectares of land to meet the increasing demand for cotton which reaches over 100,000 tons, he said.

According to Sileshi, the number of companies engaged in the textile industry has been increasing.

18 new factories and 7 expansions are expected to commence operation this year.

In addition to this, 10 garment factories have already finalized preparation to be operational this year.

By improving capability of industries, increasing input supply and skilled labor, the country envisages to earn 435 million USD from the industry this fiscal year, Sileshi said.

If the nation achieves the target for this year, the revenue would increase by 323 million USD compared to that of the previous year.



Turkish firm declared top textile exporter in Ethiopia



Turkish textile company Ayka Addis Textile has been declared the top textile and garment export performer in Ethiopia for the 2013-2014 season, Ethiopia’s Textile Industry Development Institute has said. 

“At least $63 million of the total $111.45-million textile export revenue recorded in Ethiopia was earned by Ayka Addis during the reported period,” Bantihun Gessesse, the institute’s communications director, told Anadolu Agency.

“Products were exported mainly to Germany, Turkey, China, Italy and the U.S., among others,” he said.

Germany stands first in terms of importing Ethiopian textile products, followed by Turkey and China, according to Gessesse.

He added that this year’s total export revenues represented 31.8 percent of the national $350 million target for total textile exports for the same period.

Failure to meet the target, he said, was the result of shortages and low-quality cotton supplies, leadership capacity limitations, low productivity, delays in the construction of projects and shortages of electricity.

Established in 2010, Ayka Addis built its factory in Ethiopia at a cost of $140 million at Alemgena, located some 20 kilometers west of Addis Ababa.

The company has since created more than 10,000 jobs and now has the capacity to export textile products worth $100 million annually, according to the Ethiopian Investment Agency.



Nation plants over 4bln seedlings


Nation plants over 4bln seedlings


Some 4.2 billion seedlings were planted during the 2006 E.C rainy season, said Ethiopian Ministry for Environment and Forestry.

Forestry Sector State Minister, Kebede Yimam, said that the plantation was carried out across the country in collaboration with regional states.

More than 11 million people have participated in the program which was carried out in depleted areas and taking into account ecological issues, he said.

According to him, some 14.5 million hectares of land were covered with seedlings from 2003-2005 Ethiopian fiscal year.

The plan was to cover 11.5 million hectares.

The State Minister further indicated that an integrated national forest census was launched last February so as to know the current forest cover in Ethiopia.

Some 30 percent of the inventory process has so far been completed. The census will be finalized by the coming June, he added.

The country has been planting trees in millions since the Ethiopian millennium to increase the forest coverage, it was learnt.



Mines Minister meets Canada’s Minister of International Development


Mines’ Minister meets Canada’s Minister of Int’l Dev’t


Ethiopia’s Minister of Mines, Tolessa Shagi, met with Mr. Christian Paradis, Canada’s Minister of International Development and La Francophonie, on Thursday in Toronto.

Discussions covered issues related to Ethiopia’s emerging mining sector, including sharing technology, expertise and knowledge and institutional and human resource development, with the aim of cementing and advancing the need for a growing cooperative partnership between the two nations.

Minister Tolessa said that Ethio-Canada ties in mining sector were gaining momentum.

He appreciated Canada’s continued technical assistance to mining sector development, and praised Canadian companies’ business culture, which he described as a valuable asset for future development of Ethio-Canada ties.

Minister Tolessa called on Canadian companies to take advantage of the unprecedented opportunities in Ethiopia’s emerging mining sector, and said Ethiopia was committed to write a new chapter of cooperation with Canadian firms for the mutual benefit of all.

Mr. Paradis emphasized that Canada was ready to support Ethiopia in mining sector development, and he noted Ethiopia could draw lessons and best practices from Canada’s experience.

He emphasized that Canada was keen to support Ethiopia’s efforts in natural resource development and underlined that Ethiopia was one of Canada’s Focus Countries in seeking common development.

After his talks with Minister Tolessa, Mr. Paradis announced that Canada would contribute $12.5 million to strengthen mining education in Ethiopia.



 350 million Birr factory to produce brake rubber by midyear


350 million Birr factory to produce break rubber by midyear


A senior officer at Metal and Engineering Corporation’s Hibret Manufacturing and Machinery Fabrication said the 350 million Birr factory, located in the Afar Regional State, will start producing brake rubbers by midyear.


When commencing operations in five months time, the factory will play a significant role in saving hard foreign currency.

The fact that the factory is located in Afar is indicative of the just wealth distribution in the country in addition to creating jobs for several people and having ease of access to raw materials in the region.

East Africa’s very first brake rubber factory has the capacity to produce 3.2 million units annually. The figure is sufficient enough to meet local demand and export to neighboring countries.


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