2merkato

Ethiopia is drafting a new regulation to control the raw hide and skins market according to the Ministry of Industry.

The new regulation will aim to create harmony between the market chain and the circulation of raw hides and skins to solve challenges created by speculation and consequent increases in price that is affecting the flow between tanneries and suppliers.

The regulation being drafted by the MoI in collaboration with other stakeholders in the sector such as the Leather Industry Development Institute is expected to be submitted to the House of People’s Representatives by the end of the current financial year.

The Saygin Group subsidiary in Ethiopia is set to generate as much as 100 million US dollars per annum from textile manufacturing according to the Turkish company.

Saygin Dima Textile SC, which launched operations at its Ethiopian factory just three months ago, is looking to manufacture 50 thousand meters of fabric a day for international export said Ahmed Turan Yangin, General Manager.

The company is set to take advantage of low power costs estimated at  a third of what they would be in Turkey and wages one 20th those of the home market said Yangin.

Workers earn 600 Ethiopian birr or 34 US dollars a month for a 48 work hour said Yangin who feels that the low production costs are the most important incentive for a textile investor to choose Ethiopia.

Horizon Addis, the only tire manufacturer in Ethiopia, is set to invest 1.1 billion birr on an expansion project. Horizon is in the process of negotiations with one of the top tire manufacturers in the world, Continental Germany, to exchange its antiquated machinery for the latest equipment.

One of the new machines that Horizon is planning to install is a 30 million birr machine that can produce 80,000 pieces of light truck radial tire every year. It is expected that the new machine will begin production in the coming September allowing Horizon to supply higher quality truck and bus tires.

It is expected that the expansion program will be completed in 18 months according to Belay Dechasa, General Manager of Horizon.

Licensing for investment in the manufacturing sector has shown an increase in Ethiopia. The Ministry of Industry has licensed 56 projects in textiles, chemical, pharmaceutical, leather and agro-processing in just the last two and a half months according to sources.

805 million birr in capital has been invested in Ethiopia between January-March in projects expected to employ more than 3450 permanent and 3850 temporary people when fully operational.

A total of 1043 projects were licensed with a total capital of 31.2 billion birr in the last year.

The industrial sector in Ethiopia is growing by an average of 10.8% in the last few years said the Ministry of Industry.

The sector has grown by 15% in just the last year accounting for 13.4% of the GDP noted Tadesse Haile, Minister of State for Industry.

The manufacturing industry is enhancing its competitive edge on the international market increasing foreign trade he said.