2merkato

Ethiopia has not signed the COMESA Free Trade Agreement. Some professionals say that this could keep Ethiopian businesses from benefiting from the initiative.

Businesses in the Common Market for Eastern and Southern Africa (COMESA) states will now be able to participate in tenders issued in one another’s countries with a 15 percent preferential treatment against international bidders.  

All the same, Ethiopian businesses will still enjoy the preferential treatment although tariffs will be levied on their exports to COMESA states as the country has not signed the FTA, Gashaw Debebe, secretary general of the Ethiopian Chamber of Commerce and Sectoral Associations, said.

The Ethiopian Insurance Corporation, a state owned company, said that it made a 148.6 million birr profit before tax for the fiscal year to 7 July 2011. It was 15 percent higher than the profit made the previous fiscal year.

The overall asset of the corporation also rose to some 1.5 billion birr by the end of the same period, Wondwossen Iteffa, CEO of the corporation, said. 

Revenue from premium stood at 1.1 billion birr in the period, up by 27.4 percent from last years' income. On the other hand, income from other investments such as dividend on investments elsewhere, rental income from buildings the corporation owns and others yielded 67.6 million birr.

Diageo Plc, a London based global alcoholic beverages company, bought Meta Abo, a state-owned brewery for 225 million dollars.

Late in August the Ethiopian government had floated an auction for Meta Abo Brewery weeks after Bedele and Harar breweries were sold to Heineken. British, Dutch and South African breweries were putting bids for Meta Abo, an Ethiopian brewery which brews the Meta Abo beer.

According to sources, Heineken, the Dutch brewery, offered 188 million dollars, while SAB Miller and South West Development (SWD) together bid 190 million dollars followed by Dashen Brewery which offered 173 million dollars.

Arik Air, a Nigerian private airline, asked the Ethiopian Civil Aviation Authority (ECAA) for permission to start flight services to Addis Ababa.

Over eight months have elapsed since Arik Air asked permission for traffic rights, Dr. Harol de Muren, director general of Nigerian Civil Aviation, said last week in Dare es Salaam at the 17th Aviation and Allied Leadership Conference.

A representative of Arik Air said that Arik Air’s delegation was in Addis Ababa last week to discuss the issue with officials of ECAA.

The Ethiopian Airlines announced last week that it was concluding a deal with Boeing for the purchase of four Boeing 777 freighter aircraft.

A senior official of the airlines said that the management of Ethiopian and executives of Boeing had been negotiating for about a year for the purchase of the new aircraft. The deal will be announced soon according to the official.

The new deal was confirmed by a representative of Boeing who said that Boeing and Ethiopian would sign the agreement in the coming few weeks.

Ethiopia-focused Tigray Resources is making a healthy splash on the TSX Venture Exchange.

On its first day of trading on the TSX Venture Exchange on Wednesday, Tigray Resources charged forward closing up 64 percent at C$1.00 on brisk trading volume. Then it continued the streak, jumping up a further 41 percent to C$1.41 within the first few minutes of trading yesterday.

The investor demand signals strong interest in getting on board one of the TSX Venture Exchange's latest junior explorers.

Lifan Motors announced that it was producing more 620 models to meet the rising demand for the automobiles in the local market.

It used to take the company more than a month to assemble the 620 models after payment, depending on how long it took to ship in parts from China and process customs documents for components clearance.

Lifan assembles other models of cars but they are not available on immediate delivery basis. It takes the company two months to give out the 520 and four months for the 320 to customers.

Ethio Telecom (formerly known as Ethiopian Telecommunication Corporation), now managed by a French company, made a record profit in the first year of the two-year contract.

The net profit has not been declared but sources at the telecom company say that it is likely to be higher than ever before.

The company had planned to make 9.9 billion birr and grossed 9.1 billion birr in the just ended fiscal year which is greater than that of the previous fiscal year by 2.1 billion.

Karuturi Global is planning to produce rice, maize and soybeans over 20,000 hectares of land in Ethiopia.

Karuturi, founder and managing director of the company, said that the 20,000 hectares of plantation would come up in the Oromia and Gambella regional states.

According to Karuturi, the 20,000 hectares of land is part of 100,000 hectares the company has leased from the government in 2009.

He said that the company had also planted a variety of crops like rice, maize and sugarcane in other regions of Ethiopia, besides planting roses on many farms.

Tigray has launched an 11,000-metre first phase drill program at Harvest project.

Tigray Resources Inc., a Canadian mineral exploration company focused on advancing early stage mineral projects in Ethiopia, announced yesterday that it would begin trading on the TSX Venture Exchange today under the symbol TIG.

Early this month Tigray Resources Inc had received conditional listing approval from the TSX Venture Exchange.