The Development Bank of Ethiopia extended a loan of 1.42 billion birr to Saygin B.M Technology Group LLC, a Turkish company expected to establish a cable manufacturing plant.
Saygin requested a loan of 2.1 billion birr, making it the single largest loan request for a bank loan from a private company operating in Ethiopia.
The Turkish company intends to manufacture optical fiber and power cables said Tadesse Hatiya, Vice President of Credit Services at the Development Bank of Ethiopia.
Saygin was given the loan because the proposed project is technologically advanced and the first of its kind in Ethiopia according to Tadesse.The manufactuer of optical fiber and power cable is line with aims for import substitution as the items are required by a range of infrastructural projects including the Grand Renaissance Dam he noted.
Officials from the DBE visited the company’s headquarters in Kayser City, Turkey as part of the loan approval processes.
The loan secured from the DBE is expected to cover 50% of the costs associated with setting up the plant with Saygin investing the other half of the funds required.
The development bank will release the money in phases as required by the construction and set up of the plant. Most of the money is targeted to cover the expense for steel structures and machinery supplies.
The cable plant is expected to be completed in six months and commence operations by the end of the year.
Source: Capital
