2merkato

Ethiopia is to privatize two more enterprises with the board of the Privatization and Public Enterprises Agency approving the offers made for Caustic Soda SC and the warehouses of Faffa foods.

Caustic Soda will be purchased by MCC Imports for 14.8 million birr and the warehouses of Faffa foods will be sold to a Nejib Abba Biya, Ethiopia Canadian Businessperson, for 414,100 US dollars.

It is to be remembered that the PPESA is seeking interested bidders for two of the five enterprises it had offered for privatization in the same lot as Caustic Soda and the Faffa foods.

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.

Ethiopia is to farm out the disbursement of private sector pensions to five micro finance institutions and a private bank starting on July 8th 2012.

The following micro finance institutions will be serving regional areas; Dedebit Credit and Savings, Oromia Credit and Savings, Omo Microfinance, Amhara Credit and Savings and Dire Microfinance.

The private bank under contract to the Private Organization Employees Social Security Agency will be servicing the Addis Ababa area.

Ethiopia signed three credit financing agreements with the World Bank providing 400 million US dollars in loans. The loan is designated to finance the execution of the Electricity Network Reinforcement Project, Women Entrepreneurship Development Project, and Urban Water Supply and Sanitation.

The World Bank has been supporting a range of development programs as the country’s major development partner said Sufian Ahmed, Minister of Finance and Economic Development at the signing.

The agreements will support projects that provide comprehensive technical assistance and capacity building programs in Ethiopia according to Guang Z. Chen, Country Director of the World Bank in Ethiopia.

Nyota Minerals has launched a 14650 m infill drilling program at its Tulu Kapi gold project in Ethiopia. The program is part of the definitive feasibility study it was said.

The project initiated in collaboration with Wardell Armstrong International is intended to convert an additional 260 thousand oz of Inferred resources to Indicated status before the end of the fourth quarter of the current financial year.

The program is expected to help the definitive feasibility study and confirm the mine's ability to perform for at least ten years.

Ethiopia is looking to partner with Swiss company Social General Service to certify the quality of goods. The Ethiopian Conformity Assessment Enterprise is negotiating the deal to earn international recognition as an SGS agent to attract more business according to sources.

If the deal goes through the SGS and ECAE will each be able to evaluate the quality, safety and security of products as per national and international standards, for customers of either organization.

Accordingly imports to Ethiopia can be checked for conformity to standards at the country of origin by SGS on behalf of the ECAE while the ECAE can in turn evaluate exports from Ethiopia and the region for SGS.

The fifth ICT Exhibition and Conference in Ethiopia was opened last week at the Addis Ababa Exhibition Center. The Exhibition was held under the theme of ‘ICT is the Road to Development and Transformation’.

Domestic IT colleges, government agencies working in the ICT sector, training center, and international companies from China, England and Egypt engaged in the production and development of ICT products participated in the exhibition.

The exhibition offers an opportunity for consumers and producers to develop networks and to enhance experience sharing amongst countries said Debretsion Gebremichael, Minister of Communication and Information Technology.

Ethiopia has brokered an agreement to export electricity to South Sudan according to the Ethiopian Electric Power Corporation.

The agreement was signed between EEPCo and the South Sudan Electric Utility Corporation represented by Mekuria Lemma, Corporate Planning Head and Ajuoi Chol, General Manager respectively. The signing ceremony was held last week at the Radisson Blu Hotel.  

The corporations agreed on interconnection project studies and installation of a transmission line to connect to the Ethiopian grid. The agreement states that the interconnection project will be carried out in two phases.

Tullow Oil, a UK company, is set to start drilling its first well in Ethiopia by the end of this year. Tullow has hired a drilling company to start operation in October according to sources.

It is to be remembered that Tullow bought a 50% stake in a concession in a South Omo Valley from Africa Oil. The concession was originally farmed out to Africa Oil by British company White Nile which has been prospecting for oil in the South Omo Valley since 2005.

Tullow was recently in the news for having struck oil in the Turkana Basin in Kenya.

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.