Valuable infos

Ethiopia: Investments in breweries and sugar factories

Source: GTAI, September 2019

According to a June 2019 announcement, Coca-Cola plans to invest US$300 million in Ethiopia over the next five years. Part of the plan is the construction of "Ethiopia's largest Coca-Cola factory" in Sebeta near Addis Ababa for US$70 million, to be completed by early 2020. In addition, a large plant is planned in Hawassa, according to Daril Wilson, Managing Director of the East Africa Bottling Share Company.

Dashen Brewery plans to double its capacity to 5 million hectoliters, according to press releases released in June 2019. It is also planned to increase capacity at Rorank Business, one of the largest vertically integrated distilleries in East Africa. Both companies are majority-owned by Vasari Beverages, which, according to information, has increased its capital by US$100 million to finance this and other projects.

Dashen also operates one of the country's two large malthouses. The second producer, Assela Malt Factory, presented plans in February 2019 to triple annual production to 100,000 tonnes. The company was privatised in May 2018 and has already modernised its facilities. Ethiopia is Africa's fourth-largest beer producer and needs 235,000 tons of malt per year with rapidly growing output. In August 2018, the participating company Piet Brouwer Power Solutions announced that a 60,000-tonne plant of the Belgian malt producer Boortmalt in Debre Birhan was due to go on stream in mid-2019.

According to information from January 2019, a new distillery called Komari Beverages was due to be built in the middle of the year. European investors have spent US$12 million on the plant, which will distil whiskey, rum and vodka.

According to press reports, Ethiopia's government would like to see the construction of a further ten sugar factories with an annual capacity of 4 million tonnes. Today, the country only reaches one tenth of this capacity, spread over eight plants. Domestic demand is 720,000 tonnes. The government wants to privatize the sector, which has been in state hands until now.

According to a report in April 2019, the resumed construction of the Tana Beles No. 1 sugar factory is to be completed by mid-2020. CAMC Engineering from China is the contractual partner for the remaining work, which will cost almost US$ 100 million. The expansion of the Omo Kuraz No 1 plant is already further advanced.

The development of new industrial zones is interesting for suppliers of food processing and packaging machinery: The four "Agro-Industrial Parks" Bure, Bulbula, Yirgalem and Baeker, which were apostrophised as "pilot parks", went into construction in 2016. They are each around 200 to 250 hectares in size and are estimated to cost a total of US$ 10 billion.

According to announcements made in January 2019, the parks should be completed by the middle of the year, having previously been planned for the end of 2018. The authorities expect nearly 100 investors for each park, of which about one fifth will come from abroad.



Ethiopia: New industrial parks opened with food processing plants

Source: GTAI Germany Trade & Invest, 08 March 2019

At the beginning of December 2018, Ethiopia opened a modern industrial park in the city of Jimma, regional state of Oromia, in which primarily food processing plants are to be located. The importance of the new park was underlined by the presence of Ethiopian Prime Minister Abiy Ahmed, Sudanese President Omar al-Bashir and Djibouti President Ismail Omar Guelleh. The developed industrial area covers an area of 51 hectares (510,000 square metres) and will employ 10,000 people.
Abiy Ahmed had previously inaugurated the Adama Industrial Park at the beginning of October 2018, which will also house food processing factories. In the pipeline for further openings are the parks Dire Dawa, Kilinto II, Bole Lemi II, Bahir Dar and Debre Birhan. According to observers, these parks are a game changer for Ethiopia because they can produce not only products for the national market, but also for export.
Ethiopia wants to increase the control of food processing companies and thus "force" production according to internationally accepted quality standards. …
Ethiopian Lominat Beverages may acquire the state-owned National Alcohol and Liquor Factory (NALF). Lominat had bid the equivalent of US$ 128 million in a tender. The interest in the state-owned company had been unexpectedly high: 97 potential bidders had bought the tender documents. The privatization of the NALF and its transfer to Lominat will take place gradually over a period of five years.
Lominat is currently building an alcohol and beverage plant in Mojo, 30 kilometers from Addis Ababa. NALF is to merge with this company once. With a 40 percent market share in alcoholic beverages, NALF is one of Ethiopia's most profitable state-owned companies. Despite substantial investments in its four production sites in Mekanisa, Sebeta, Akaki and Maichew, the company was not able to satisfy the rapidly increasing demand for its products, say market experts.

Ethiopia earns $72 million from export of processed meat

Source: Face2Face Africa - April 27, 2017

Ethiopia earned an estimated $72 million in revenue under a nine-month period from the export of processed meat.

The Ethiopian Meat and Dairy Industry Development Institute said the country earned about $72 million over the last nine months of the fiscal year, exporting meat to the Gulf Region, according to the Ethiopian Herald.

Ethiopia’s fresh goat meat and mutton are highly priced in the Middle East, with the United Arab Emirates (UAE) and Saudi Arabia as major buyers.

Khalifa Hussein, the deputy director of the institute, revealed that Ethiopia exports about 50 tons of meat daily. According to Hussein, 60 percent of that amount goes to the UAE while a further 38 percent goes to Saudi Arabia.

Ethiopian Meat Producers-Exporters Association Secretary-General Abebaw Mekonen said the association had provided the required facilities to ensure the country satisfies international meat-processing standards, including the provision of modern abattoirs, cold room storage, and laboratory facilities.

“We have managed to make almost all abattoirs across the country implement ISO 22,000 food safety management system that helps them meet international standards,” Mekonen said.

He added that the association regularly offered capacity training workshops and consultation forums with farmers and cattle suppliers to ensure reasonable levels of quality that conform with export standards.

In a related development, an Indian company has invested about $75 million in the construction of an ultramodern meat processing facility in Ethiopia. According to the owners of the facility, Frigorifico Boran Foods Plc., the ultramodern factory is located on about 73 hectares of land in the troubled Oromia region.

When complete, the factory will have the capacity to slaughter and process about 200 cattle and 5,000 sheep and goats and package 75 tonnes of meat products for daily export.

Ethiopia constructs 17 integrated agrofood industrial parks worth US$ 1.5 billion

Ethiopia more and more makes it into the headlines one of the mega projects being the construction of 17 integrated agrofood industry parks worth US$ 1.5 billion. The construction of four of these have already kicked-off in Western Tigray, South-West Amhara, Central Oromia and Eastern SNNP.

The pilot projects are due to be carried out as part of the United Nations Industrial Development Organization's (UNIDO) Programs for Country Partnership, a model partnership for achieving Inclusive Sustainable Industrial Development.