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The Ethiopian Agro Industry Company, K & S Plc, signed a contract with the German owned Agro Industry Private Limited Company, Acazis Agro Industry, to launch an oil company for 8 million US dollars.

The raw material that is needed for the production of oil is intended to be produced on 6,000 hectares of land in the East and West Hararghe zones, Oromia region. The new partnership expects to produce 25,000 tons of ground nuts every year on the 6,000 hectares of ground to serve as raw material for the factory according to Francois Achour General Manager of Acazis Agro Industry plc.

The ground nuts can also be used by local industries. But it was also mentioned that there is a long term plan to export to China and India. But its  initial focus is on local market of Ethiopia and the exports are a long term plan when the production capacity grows.

International shoe brand Bata has opened its first store in Ethiopia in Addis Ababa. The venture in Ethiopia is a franchise of the Kenyan branch of the brand footwear.

Bata, in Ethiopia is owned by Habesha Cultural Center and Art Gallery plc owned by private investor Bedru Muzeyen. The local owner will the exclusive right to retail and distribute the Bata brand in Ethiopia and to utilize the business model used by the international company said a press release from Habesha Cultural Center and Art Gallery.

The term of the franchise agreement is designed for ten years explained Israel Getachew, Sales and Marketing Manager for the business.

The 150 shops made available for bidding at the Lideta site of the Addis Ababa condominium housing projects have attracted large amount of attention.

More than 14 thousand individual bids were received for the shop space with interest seen from a diverse range of parties including insurance companies and banks.

The current round of bids attracted a record 56 thousand birr per meter square at the tender floated by the city administration for the Ethiopian capital at a floor price of 6 thousand six hundred birr.

The earnings that Ethiopia expects to receive from the export of spices, pulses and oilseeds are projected to increase by a third to an estimated 900 million US dollars in the current fiscal year.

The increase in revenue is related to incentives offered to investors in the sector including land for processing and warehousing and the waiving of duties related to import and export said Haile Berhe President of the Ethiopian Pulses, Oil Seeds and Spices Processors-Exporters Association.

The association is confident that the incentives will enable exporters to export as much as is made available he added.

Nib International Bank awarded Ethiopian Exporters at an even held at the Addis Ababa Sheraton Hotel. The bank awarded 56 exporters with trophies and certificates which have been a significant customer base for the bank according to Amerga Kassa, president of NIB.

Foreign exchange from exporters is the most dependable source for the bank above other sources such as remittance, aid etc he noted.

The current shortage of foreign exchange is due to the significant gap between import and export trade in the country according to Amerga.

Ethiopia has launched the export of electric power to the Republic of Sudan. The corporation began test export four weeks ago along the Gadarif Galabat electric power transmission line according to Mihret Debebe, Chief Executive of the Ethiopian Electric Power Corporation.

It is expected that the power transmission line will be inaugurated by Ethiopian Prime Minister Hailemariam Desalegn and Sudanese President Omar Albashir.

The transmission makes Sudan the second country after Djibouti to import power from Ethiopia.

Ethiopia and South Korea signed an agreement to avoid double taxation on the 5th of December in Addis Ababa.  The agreement is planned to promote investment opportunity and enhance economic development it was said.

The agreement is intended to help the two countries avoid double taxation and prevent fiscal evasion on income taxes it was said at the signing ceremony. The agreement is also expected to create favorable conditions in relation to capital flow and the free movement of individuals for business as well as other benefits.

The agreement was signed by Ahmed Shide, Finance and Economic Development State Minister and Kim Hyok Chol, South Korean Ambassador to Ethiopia, signed the agreement.

Source: Ethiopian News Agency

The existing rapid economic growth in Ethiopia is need of more producers and investors to achieve sustainability and strength according to Ahmed Abtew, Deputy Chief and Head of the Regional Industry and Urban Development Bureau of the Amhara Regional State Speaking at a bazaar organized in the regional capital.

It is important to strengthen links between manufacturers, enterprises and members of the business community as well as the larger public to sustain the current rapid economic growth ties according to Ahmed.

It was also stated that the government is trying to improve the marketing system in the country,  this in turn is expected to help  increasing the number of investors and expand investment opportunity  ensure the benefits of the general public. 

Alecto Minerals announced that its project in Ethiopia is progressing well, earlier this week. The Wayu Boda project in the Adola Greenstone Belt located in Southern Ethiopia, was said to have returned a report of 47.4 grams of gold per ton, based on rock chip sampling.

Samples from artisanal workings were reported to have a registered up to 31.7 grams per ton while trenching returned 4.8 grams per tonne  in 1.3 meters. The group indicated that it also had completed satellite imagery of the area.

Alecto is currently undertaking geophysics, ground magentics and soil sampling with results expected to be published in the first quarter according to Damien Conboy, Managing Director of Alecto. The mining company hopes to advance to the next stage of the exploration after completing the ongoing task he added.

The management of Ethio Telecom will be handed over to Ethiopian staff once again as of December 13th. It is to be remembered France Telecom, the French telecom giant, had been managing the company on a contract bases since 2010.

France Telecom was given a two year contract to manage the state owned Ethio Tlecom with the intention of boosting telecom operations in the country, according to Dr Debretsion Gebre Michael, Deputy Prime Minister and Minister of Information and Communication.

This contact will expire end of this month. The contract will not be extended further and Ethio Telecom is not negotiating with any other foreign based telecom for further management contract said Dr Debretsion.