Subsidiary of Jupiter Group has formed joint venture with a Chinese electronics manufacturer to assemble energy meters in Ethiopia. The joint venture agreement was signed on Thursday, December 15, 2016 by Melaku Bisrat and Hu Ab, representing MYBABA Electronics Manufacturing PLC – the newly established JV Company – and Shenzhen Clou Electronics Co. Ltd.

The newly set up company is expected to have a plant that will assemble 300,000 pieces of energy meters and create 100 jobs within the first 6 months of starting its operation. In 2 years time these figures are expected to reach 900,000 energy meters and 350 job opportunities.

MYBABA owns 70 percent of the JV while its Chinese counterpart owns the remaining 30 percent.

According to An, who is the regional sales director of Shenzhen, the plant that will be erected in Ethiopia is the fourth plant in Africa. The Chinese is already established in Egypt, Ghana and Nigeria.

The JV came at an opportune time as Ethiopian Electric Utility (EEU) has floated tender for the procurement of 1.2 million pieces of energy meters, Meaku and An explained. The meters are expected to be delivered in the span of 2 years. This gives the newly established company to reach the capacity to supply the required amount.

In addition to the energy meter, MYBAB will start assembling sales registrations machines sourcing its parts from Serbia. This would be done in collaboration with Galeb Group, Serbian fiscal cash registers manufacturer, as the 2 companies have reached on an agreement for the supply of parts and provision of technical trainings for 20 local staffs, Melaku explained. By the end of the current fiscal year, the company will be able to assemble 8,000 to 10,000 units of fiscal cash registers.

According to Melaku both plants are going to be at a 2,000 square meters compound around Gerji area with an initial capital of 5.5 million USD.

Source: The Reporter