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Turkish Textile company, Sahinler Ethiopia Textile Investment plc, received a 628 million birr loan from the Development bank of Ethiopia. The company is expected to engage in the manufacture of clothing, knitted items and a range of items at its plant in Adama.

The company originally applied for a loan of 1 billion birr according to anonymous sources.

The Development bank generally gives less money than what is requested because companies tend to inflate their financial requirements due to budget or currency exchange rate consideration explained Tadesse Hatiya, Vice President of Credit Services with DBE.

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.

Ethiopia’s year on year inflation rate has dropped for a third month in a row compared to 29.9 pc in April to 25.5 pc in May owing to the ease in food prices, according to the Central Statistics Agency on Tuesday. It has fallen from 36.3 pc in February.

Food inflation declined to 29.2 pc in May from 36 pc in April while non-food inflation remains fixed at 19.6 pc, the Central Statistics Agency said.

Many of the poorest African countries including Ethiopia have been affected by upsurge of oil prices and poor crop harvest which in turn induced double digit inflation rates.

Source: Reuters

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.

Ethiopia earned 71 million US dollars from textile exports in the last ten months. The revenue earned is more than 50% higher than the amount earned at the same time last year although the revenue is 136.3 million US dollars less than expected.

Export of value added finished products has increased with garments sales increasing to 75.1%, woven crafts 5.2%, Textile fabrics 10.7% and yarn 9%.  

The revenue did not meet targets because of delays in textile projects expected to become operational this financial year said Fekadu Ethiopia, Communications Expert with the Textile Industry Development Institute.

Ethiopia is borrowing 1.78 billion birr to produce 50MW of power from refuse accumulated at the Repi Waste Disposal in Addis Ababa according to the Ethiopian Electric Power Corporation. This ground breaking effort is part of plans to diversify the national power supply it was said.

The EEPCo signed a Memorandum of Understanding with Cambridge Industries, a UK company, to facilitate the project including garbage collection, treatment and conversion to electric power.

The financing for the project was obtained through a low interest loan said Miskir Negash, Head of Public Relation of the corporation.

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.

Airbus is marketing more Airbus aircraft to Ethiopian Airlines, Ethiopia’s flag carrier it was learned.

The aircraft manufacturer has presented the A330 aircraft for the management team at Ethiopian according to executives with Airbus.

Ethiopian Airlines is in the process of evaluating the aircraft after a technical team from Airbus made a presentation to senior airline officials in November of last year said Crawford Hamilton, Director of the A330 program with Airbus.

Ethiopia has received an 80 million dollar soft loan for a project to construct and expand electric power transmission lines from EDCF, South Korean state bank announced the Ethiopian Electric Power Corporation.

The loan agreement will be signed between the Ethiopian Ministry of Finance and Economic Development and a representative of the Korean government here in Addis Ababa soon.

The project is an expansion of the Beles-Bahir Dar- Sululta transmission line stretching from Debremarkos-Gebreguracha-Sululuta over 212 KM and carrying 400 KV explained Misikir Negash Head of Corporate Communications with the EEPCo.

Ethiopia earned more than 2.4 billion US dollars from the export sector in the last three quarters said the Ministry of Trade.

The revenue earned from foreign trade in the last nine months exceeds that of the same time last year by more than 352 million US dollars said Amakele Yemam, Head of the Corporate Communication Affairs office of the Ministry.

Increase has particularly been seen in the export of gold, horticulture, livestock, textiles and minerals he said.

The most significant destinations for Ethiopian exports have been Belgium, Britain, China, Djibouti, Egypt, France, Germany, Japan, India, Israel, Saudi Arabia, Somali, Sudan Switzerland and the US.