New policy to reform coffee trade
A document drafted by a group of 20 people representing the public and private sector, and refined by an institution called Economy Success Planning Sector, formed under the Office of the Prime Minister and led by Arkebe Oqubay (PhD), which attempted to figure out how to improve the coffee trade has recommended the Ethiopian Commodity Exchange (ECX) terminate some process it uses for trading coffee. It also raised concerns about how effective EXC has been in trading coffee. ECX begn operating nine years ago in an attempt to modernize the trading system and coffee was its first commodity. However eventually, exporters and international buyers including the Specialty Coffee Association of America began expressing their disappointment to the former Prime Minster because they were unable to obtain premium products. To address this, specialty trading was introduced at ECX.
Pizza Hut to Enter to Ethiopian Market
Pizza Hut, a division of Yum! Brands Inc. (NYSE: YUM), entered the African market in September 2014 by opening its first store in South Africa. The Pizza Hut Africa team, gathered today in Addis Ababa with its new franchise partner, Aschalew Belay, to celebrate the future entry of the Pizza Hut brand in Ethiopia. Pizza Hut and Mr. Belay plan to introduce Ethiopians to the Pizza Hut brand within the next 6 months. Pizza Hut is the world’s largest pizza chain with more than 16,000 restaurants in over 100 countries worldwide. General Manager of Pizza Hut Africa, Ewan Davenport, who is based in South Africa, said, “We are honored and excited to bring Pizza Hut to Ethiopia in the near future, and continue to add great partners to our African adventure.There has never been a more exciting time to be a part of the Pizza Hut family.
CBE freezes all private project loans
The National Bank of Ethiopia has directed the Commercial Bank of Ethiopia (CBE) to stop approving all private investment project loans as of last Wednesday, April 10 and ordered investors to obtain loans from the state owned Development Bank of Ethiopia ( DBE) instead. This includes processed and new application requests. Investors in agriculture, manufacturing, hotels and exporters went to CBE last week but were turned away. In the past year loan requests have been significantly increased. This caused CBE to discontinue loans for water drilling and non-franchised hotels. Next week CBE is expected to issue guidelines for loan applications under the new directive. According to the directive CBE will continue providing working capital loans which has the purpose of financing the everyday operations of a company. However loans for fixed assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment are being discontinued.
Ethio-China Light Industry City Well in Progress
The construction of Ethio-China Light Industry City, expected to producing footwear and apparel in large volumes, is well in progress. Founder and President of Huajian Group, which builds the manufacturing zone, Hua Rong Zhang told ENA that the special economic zone is expected to be completed by 2020. The industry zone is expected to consume one billion USD, according to Zhang. Since its foundation was laid in April 2016 by Prime Minister Hailemariam Desalegn, the industrial zone has gained great attention and support from governments of both Ethiopia and China. Zhang noted that Ethiopia encourages foreign enterprises and provides good environment for investment adding that it is working with the implementation of proper laws and regulations that create conducive environment for investment.
Doraleh Port opens for business
The state of the art logistics facility, Doraleh Multipurpose Port (DMP), has officially commenced operation since it hosted Eukor Asian Captain Vessel on the night of April 16 in the presence of Djibouti government officials.
The huge port facility was completed in March to provide a service for all types of cargos. According to the information that Capital obtained from the Port of Djibouti SA (PDSA) the first shipment at the port arrived last week. The other vessel, Hoegh Autoliners Alliance Fairfax, also docked at port the next day. Located in the horn of Africa, and close to international channels, Djibouti is placed at a point where the Red Sea meets the Indian Ocean and supports the transportation of Ethiopia’s imports and exports.
Ethio-American Hospital takes its next step
A ground breaking ceremony was held for the Ethio-American Hospital’s first phase of the Medical City Center which is expected to begin operating by December 2019. Prime Minister Hailemariam Desalegn attended the event and laid a corner stone to establish the hospital which is developed by the Ethio-American Doctors Medical City Plc. “Our doors remain open for consultations and discussion with Ethio – American Doctors groups who brought this grand idea of building a state of the art medical center. We need a hospital we can refer patients to that need high quality treatment. This center will save the outflow of about 120 million USD a year that Ethiopians spend for medical care abroad,” said the Prime Minister during the ceremony.
Cornerstone Laid for 1 Billion Birr Wood Processing Factory
A cornerstone was laid for a wood products processing factory to be built by Abay Industrial Development Share Company with 1 billion birr at Woldiya town. Speaking during the occasion yesterday, Board Chairperson of the company and Bureau Head of Trade, Industry and Marketing Development with the rank of Deputy Chief Administrator of Amhara State, Getachew Tesfaye said the expansion of industries is indispensable to the region. The factory, which is expected to be finalized within 3 years, will utilize over 240,000 cubic meters wood products annually. The factory is expected to create more than 2,000 permanent and temporary jobs. According to the chairperson, the factory will produce chipboard, timber and home and office furniture. Abay Industrial Development Share Company has been undertaking activities to build 20 different factories that need 16 billion birr capital in the region.
Addis’ Smart Car Parking Start Trial Operation
The newly built smart car parking in Ethiopia’s capital, Addis Ababa, has begun trial operation. The car parking building was built at an outlay of million Birr and it is located in the neighborhood commonly known as Megenagna. The parking building is 15 stories and lays on 170 square meters of land. It has the capacity to accommodate a total of 140 cars at once, out of which 50 will be on the ground floor. According to Transport Program Coordination Office of Addis Ababa City, the smart car parking will go operational in few days. The parking would create job opportunities for 20 people, the Office furthered.
Int’l Livestock Research Institute Inaugurates Modern Facilities Built with 2m USD
The International Livestock Research Institute (ILRI) inaugurated yesterday state-of-the-art facilities, which will be used for bioscience researches, and a forage gene bank with a total of 2 million USD. The facilities will help protect the crucial components of the planet’s biodiversity, the diverse grasses and legumes that feed the world’s food animals, it was indicated. In his remark during the inaugural ceremony, ILRI Director-General Dr. Jimmy Smith said the expansion of the institutes’ laboratory and users’ application of its advanced biotechnologies are the major achievements. “Sub-Saharan Africa, including Ethiopia, is the center of origin of most common forages,” he stated, adding that “Ethiopia has a unique highland flora with indigenous clovers and tropical highland and grasses. So it is appropriate that ILRI located its forage gene bank at its principal campus in Ethiopia.”
Ethiopia: Messebo Bought 200 Trucks for 700 Million Birr
Messebo Cement Factory PLC, one of the cement producers in Ethiopia, procured MAN transport trucks for 700 million Birr in the aim of cutting transportation cost and be competitive in the local market. Messebo is one of the companies under the Endowment Fund for the Rehabilitation of Tigray (EFFORT) and owns a cement manufacturing plant near Mekelle City. According to the company’s deputy general manager, Kidane Tekelehaimanot, the fact that the plant was 780 kilometers away from the capital city, where there was a major construction boom, put the company at disadvantage dto compete in terms of price. “Though Messebo Cement is known for producing high-quality cement, the cost of transporting the product all the way from Mekelle to Addis Ababa is a big challenge,” Kidane noted.