Ethio-Engineering Group signed two agreements to bolster Ethiopia's manufacturing sector.

The first deal, a Euro 3 million contract with Faresin Formwork, an Italian formwork leader, grants Ethio-Engineering exclusive rights to produce aluminum formwork locally. This will advance the group's construction machinery manufacturing and propel the domestic construction industry, particularly in formwork and scaffolding.

The agreement goes beyond production. It includes technology transfer, collaboration, and training programs for engineers, metalworkers, and operators. This aims to modernize Ethiopia's construction sector, improve efficiency, and reduce reliance on foreign currency.

In a separate deal, Ethio-Engineering signed a memorandum of understanding with Electrify Ethiopia to establish manufacturing facilities in Ethiopia. This partnership focuses on electric vehicle supply systems, battery storage systems, and critical components.

In April this year the government announced a significant shift for the Ethio-Engineering Group, revealing its transition to assembling electric vehicles and machinery. It sees the group, with its established capacity and expertise, as a critical player in achieving the government’s goal of phasing out imported petrol and diesel cars.

EEG is a governmental business enterprise re-established in September 2020 under the FDRE Council of Ministers’ Regulation No. 475/2020. It is engaged in manufacturing and trading automotive products, agricultural machineries, construction machineries, power and electronic equipment, metal and metal products, and plastic and polymer products.

Source: Fana BC and 2Merkato Archives