Algeria's Cevital plans $350 mln Ethiopian oilseeds, sugar processing complex
Algeria's largest private firm, Cevital, is looking for banks to back its plans for a sugar refinery and oilseeds processing complex in Ethiopia, Cevital's chairman Issad Rebrab told Reuters on the sidelines of the Africa CEO Forum in Geneva. "All in all, the figure will be about $360 million in total, but that's just in Ethiopia, without counting the logistics platform at the port in Djibouti," Rebrab said. He was speaking after appearing on a conference panel alongside Ethiopian Foreign Minister Workneh Gebeyehu and Aboubaker Omar Hadi, chairman of the Djibouti Ports and Free Zones Authority. Cevital's planned agro-industrial complex includes an oilseed crushing plant with a capacity of 3.5 million tonnes, a 1 million-tonne sugar refinery and a vegetable oil refinery of 750,000 tonnes, as well as food retailing units.
Ethiopia minimizes foreign long term loans
The government announced that it has minimized long term loans that were secured from foreign sources. It is said that loans are now in a moderate level. Prime Minister Hailemariam Dessalegn, who appeared to present his six month report to the parliament on Thursday March 16, said that the due to the increase of external debt distress the country has held on to accessing long term loans. He said that doing this has contributed to an increase in access to hard currency. “By stopping long term loans foreign currency generation has decreased by 14.5 percent compared with a year ago, while foreign direct investment has grown by 101.3 percent, the capital account has improved by 27.3 percent,” Hailemariam explained. He said that as per the evaluation of international institutions the country’s debt distress has gone up in to a moderate level.
Ethiopian wine sector projected to boom
East Africa's winery sector is expected to expand rapidly over the next few years. Winery which is a relatively new industry in the region has seen massive growth as a result of demand from China and Europe. Wine produced in Ethiopia, Kenya and Uganda has a unique tropical flavour that many consumers are now wanting to taste. The sector is expected to compete with South Africa which is the leading wine producing country on the continent. Ethiopia is just one of the few countries in East Africa that has seen a massive expansion of its horticulture and winery industry. The country boosts massive sells of various wine brands to Asia , Africa and North America. The government has also injected capital to boost emerging wine farmers.
State of Emergency Evolves with Time
The state of emergency could possibly be extended for another term, depending on the results of various government surveys done around the country, according to Prime Minister Hailemariam Desalegn. His disclosure came during the presentation of a half year report to Parliament. The surveys would take into account the “situation on the ground”, as well as the opinions of the community. “Through studies and surveys, it has become clear that many people would support the extension of the state of emergency for at least one more cycle. Out of the people included in the survey, 82pc were in favour of a full or partial extension of the state of emergency,” said Hailemariam. “However, during the next month, we will study the situation further and present a report to Parliament.”
Diageo to Introduce Guinness Beer to Ethiopia’s Market
Diageo Ethiopia is going to reintroduce the world renowned stout beer Guinness Beer, to the Ethiopian market. The debut is scheduled for March 31, 2017 during an event dubbed “Feshta”. Guinness is going to be produced at Diageo’s expanded plant in Sebeta Town, Oromia State. By its new product, the beer manufacturer is aiming to attract affluent and emerging middle class and the diplomatic corps. It is also going to start with a limited production and sell the stout beer at a higher price than the average beer in the Ethiopian market. Since purchasing Meta Abo Brewery from the government for 225 million USD in 2012, Diageo has been expanding its capacities. It currently supplies Meta Beer, Azmera Beer and Malta.
New study expects Ethiopia to continue steady growth
The regulatory environment of the National Bank of Ethiopia will not open for foreign banks or subsidiaries and will still require private banks to place 27 percent of their loan portfolios in NBE bonds, in order to finance the Development Bank of Ethiopia, a new study revealed. 42, a Fitch Group company, under the title ‘Industry Forecast – Banking Sector Will Maintain Double Digit Growth’ stated that the banking sector will register robust growth, while public banks will continue their business leadership. Results from the study indicated that loans and deposits in the Ethiopian commercial banking sector will expand at a robust rate over the year ahead, continuing a long trend of double-digit growth. It said that high economic growth, even as political risk remains elevated, and a sizable population will be the key driver of growth in the sector.
Ethiopia: New Abattoir to Commence Service in 1 Month
Frigorrifico Boran Food PLC, a subsidiary Allan Group, will open its new abattoir for business in the coming months. The company built the abattoir in Adami Tulu, Oromia, which is 163 kilometers away from Ethiopia’s capital and it is said it will have the capacity to produce 75 tonnes of meat every day. Commenting on the matter the General Manager of Frigorifico, Vijay Dongare, said, Vijay Dongare, “We are left with internal and external finishing works”. ”Trial production is also underway,” he furthered. It was 2 years ago that Allana acquired 75 hectares of land in Adami Tulu. However, the project has been delayed for about a year. Allana, the Indian based meat processing company, invested 20 million USD during the first phase of the construction. This is one-third of the total amount of capital invested by the company thus far.
Ethiopia Committed to Sustain Rapid Growth
Ethiopia`s rapid economic growth in the last 13 consecutive years was mainly due to the country’s commitment towards long-term development, said Dr. Abraham Tekeste Minister of Finance and Economic Cooperation. While briefing a group of African journalists who visited Ethiopia for a week, the Minister said that priority is given to agricultural transformation, infrastructure development, building capacity of the private sector and investing in citizens to realize the growth in addition to the commitment. Because of the commitment of the government and maximum efforts exerted so far, the size of the economy has more than doubled over the last six years by growing to 72 billion USD at present from 32 billion USD in 2011, he said. The average per capital income has also reached close 800 USD; poverty has dropped by more than half from 50 to 23 percent while Gini coefficient remains 0.3, according to Dr. Abraham.
Ethiopia: ESLSE Made 520 Million Birr Profit
Ethiopian Shipping and Logistics Service Enterprise (ESLSE) disclosed it made a profit of 520 million Birr during the first quarter of 2017. The performance seems to have attained 109 percent of the target set by the enterprise. The target was making 478 million Birr. ESLSE also managed to meet 82 percent of the target it set for amount of incoming cargo to transport. The company managed to transport 2.3 million tons of incoming cargo during the time period. However, the enterprise’s outgoing cargo transport fail way behind its target. ESLSE managed to hit only 7 percent of the target it has set. In the past year, ESLSE made 8 billion Birr from sea transportation, cargo services and port services.
World Bank Announces Record 57 Billion USD to Finance Sub-Saharan Africa
World Bank (WB) President Jim Yong Kim yesterday announced a record 57 billion USD to finance Sub-Saharan African countries over the next three fiscal years. The bulk of the financing 45 billion USD will come from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries. The financing for Sub-Saharan Africa also will include an estimated 8 billion USD in private sector investments from the International Finance Corporation (IFC), a private sector arm of the Bank Group, and 4 billion USD in financing from International Bank for Reconstruction and Development, its non-concessional public sector arm. “This represents an unprecedented opportunity to change the development trajectory of the countries in the region,” President Jim Yong Kim said.