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National Bank Of Ethiopia Grants First Financial Services License To Foreign Company called Ethio Lease. The company is a subsidiary of US based Africa Asset Finance Company Inc. (AAFC), an equipment finance firm, that owns and operates a group of companies that provides asset backed lending and leasing services throughout Africa. #FBC
Green Innovation & Agritech Slam 2019 (GIAS) a nationwide agricultural business competition that aims to find innovative solutions to critical challenges of the agricultural sector is launched on 7th August 2019.
The competition is aimed at supporting Ethiopian agricultural entrepreneurs and is awarding 10 innovative and bright entrepreneurs or businesses, with over 1,000,000 Birr shared prize among winners.
The German Federal Ministry of Economic Cooperation and Development (BMZ), through its Green Innovation Centers project, and the Technical Center for Agricultural and Rural Cooperation ACP-EU (CTA), in partnership with iceaddis, have officially launched the program. #addisstandard
Inflation rate or Consumer Price Index of Ethiopia has marginally increased from 15.4 percent to 15.5 percent as of July, 2019.
According to the Central Statistics Agency (CSA), food inflation in the country increased from 19.8 percent to 20 percent, while non-food inflation also increased from 10.2 percent to 10.3 percent. Increment has been observed in major Cereal types (especially Teff, Rice, Barely, Wheat, Sorghum and Maize). The expected decline in the price of Maize during the rainy season was not realized since it continued increasing from month to month. The price of Bread has also registered a slight increase.
Non-food inflation increase is attributed to the rise in the prices of clothing and footwear, house rent, housing repairs and maintenance, energy (firewood and charcoal), household goods and furnishings, Health Care and Transport (Specially, Household Cars) #The Reporter
A newly established coffee roasting firm, Melange Roasters, that aims to export a value added and processed coffee, is about to export its first batch of roasted coffees with an immediate entry to Chinese and South African markets.
The company has a daily capacity of roasting 7,500 kilograms and a packaging capacity of 3,600 kilograms of coffee per hour.
Melange Roasters has invested close to 40 million birr and has created 40 jobs so far. Out of the 40 million birr outlay, 22 million was set aside to purchase roasting and packaging machineries. The remaining investment was injected for installations and groundwork’s along with working capital requirements.
Located in Addis Ababa, around Megenagna area, the roasting firm is said to market roasted and grounded coffees for both the local and international markets. The company has already secured a 1,000 ton contract for one year. #The Reporter
To promote Ethiopia’s coffee to the international community, the Ethiopian Coffee and Tea Authority announced plans to build a coffee park at a cost of $50 million on 30 hectares of land in Addis Ababa.
The park will be built jointly by the Ethiopian and South Korean Governments and will take three years for completion.
The park will have a coffee museum and coffee market center, among others. #FBC
Ethiopia and China are set to partner to build a new, $300 million industrial park in Adama city, 99 km southeast of Addis Ababa. The park is aimed at attracting firms engaged in equipment manufacturing.
About 85% of the funding to build the industrial park will be covered through Chinese government concessional loans while the rest 15 percent will come from the Ethiopian government. # FBC
Sanitary napkin and baby diaper maker Lilac has restarted operations after years of inactivity. Lilac, began manufacturing personal care and hygienic products and was the first to produce these products locally 20 years ago.
The company invested 100 million birr in machines and imported its raw materials from four countries: USA, Japan, Hong Kong and make Maclean diapers and Lilac sanitary napkins.
The price of Maclean diapers fails between 450-750 birr depending on the number of pieces, which makes the cost of the product competitive according to the representatives of the company.
Currently, Lilac has the capacity of producing 74 million pieces of Maclean Diapers and 86 million pieces of sanitary napkins per year. If they increased shifts they could produce half of what the country needs. #FBC
A recent inspection by the Ministry of Trade indicates that over half the soap on the market is below standard. About 1,044.92 metric tons of soap samples have been studied. Detergents and soaps being sold at shops are also studied. This includes liquid and powder detergents as well as solid soaps. Over half of all of these were below the standards.

Some of the parameters are total fatty content, total active matter and foam testing parameters. Using unknown raw materials which are untraceable are the other big challenges.

In Ethiopia, there are more than 70 soap and detergent factories and more than 80 percent of them are found in Addis Ababa. Soap is also produced by small scale manufacturers; there are more than 600 small scale soap manufactures in Ethiopia which makes quality regulation difficult.

In Ethiopia soap and detergent per capita consumption is less than 2 kg which is less than the average compared to other countries which show the huge gap in demand and supply of the products.

In the production of soap and detergent, 80-90 percent input is water while the main challenge is chemicals imported to use as an ingredient. According to the data from chemical development institute, Ethiopia imported over 21 billions of tones of chemicals for the last eight years that cost that country more than six billion birr.

Lack of technology transfer, lack of expert in the field, shortage of working capital; supply of raw materials the challenge that local manufacturers raise.
Though, Ethiopia attempt to earn foreign currency from exportation of soap and detergent by the combined effort of Shemu plc, Unilever Manufacturing P.L.C, Bekas chemicals plc, and Qingninchen soap factories are able to attract less than 500 thousand USD for the past three years. #Capital
Metals and Engineering Corporation (METEC) has requested the Ethiopian government to cancel its debt of more than 24 billion, money that the corporation borrowed from the Commercial Bank of Ethiopia (CBE). # Ezega
Ethiopia has earned $318 million from the export of flowers and other horticulture products in the concluded fiscal year, which ended July 7, 2019 : $261 million form the export of flowers and $57 million was secured from vegetables, fruit and herbs export.
More than 100 companies have been engaged in cultivation of flowers, fruit and vegetables as well as herbs and supplying high quality products to the international market. Netherlands, Saudi Arabia, UK, USA, Japan, Norway, Germany, UAE, Belgium and Italy were the main export destinations of Ethiopian horticulture products.
So far, the horticulture export industry has created job opportunities for over 100,000 citizens in different parts of the country. #newbusinessethiopia.com
TopClass Consult wishes a prosperous and successful New Year to you and your loved ones!
Goh Betoch Bank, a new financial institution that aims to reintroduce mortgage banking (loan for housing construction) in Ethiopia, offers its share to the public. When the Bank goes operational next year it aims to invest one billion birr in housing development projects and target to invest around 7 billion birr per year in housing development during the fifth year of our operation. The return on Investment of Goh Betoch Bank is foresee to be 32% after five years with profit of half a billion birr. #newbusinessethiopia.com
The Chinese textile firm, which has been part of the Adama Industry Park since 2016 has a registered investment capital of 350 million USD, but plans to further increase its investment capital in Ethiopia to 980 million USD as part of its second phase investment. #Capital
The Dubai Chamber of Commerce and Industry plans to enter the Ethiopian market with a primary focus of engaging in the tourism as well as the real estate sectors, while facilitating conditions that would enable Ethiopian businesses introduce their products to the United Arab Emirates (UAE). #The Reporter
New company joins taxi hailing business

El-Taxi Trading, established four months ago, has become the latest company to enter the taxi hailing app business in which taxi owners’ associations are members along with the management of the company. #The Reporter
The Environment Forest and Climate Change Commission is taking steps to completely ban the production and import of single use plastic bags in an attempt to protect the environment.
It is preparing legislation which will be enacted after ratification by the House of Peoples Representatives (HPR) in the near future.
Plastic bags used for selling, packing, and disposing garbage are made of polythene, a plastic that affects terrestrial as well as aquatic animals, and plants. # Capital
BGI Ethiopia, a pioneer foreign brewer in Ethiopia, has finished buying out all the shares in Zebidar Brewery at a total cost of 1.825 billion birr.
Previously in January 2018, the mother company of BGI Ethiopia, Castel Group, bought the shares of Belgian brewery, Unibra S.A. which was the major shareholder of Zebidar. Zebidar is located about 166km south west of Addis Ababa at Gubre Woreda around Welqite town of Gurage Zone, SNNP. #Capital
Experts insist on restructured NBE

Economists and financial experts have called on the government of Ethiopia to seriously look at the state of the National Bank of Ethiopia (NBE) and consider restructuring it in time, while some going to the extent of reducing the central bank to an institution primarily engaged in undertaking money printing, an expression connoting the power of central banks to create money. #The Reporter
Control Risk Consultancy, a consulting firm headquartered in London, England, in consortium with the Oxford Economics, has placed Ethiopia at the top of the chart in Africa Risk-Reward Index, which ranks countries depending on the risks and rewards for investors there.

According to the report released this week, Ethiopia has scored 8 out of 10 in the rewards score while its risk score value stands at 5.5. #The Reporter