2merkato

Mercy Corps is to establish a 10 million US dollar private equity fund in Ethiopia to encourage foreign investment, primarily in agriculture, according to Dominic Graham, Country Director. Initial interest has been expressed by several American and British companies he said in a interview.

The non-governmental organization is seeking rapid growth which is why it opted for private equity as opposed to debt financing according to Graham.

This aim is not about incremental change but large steps to move the country from middle and poor income status within a short period of time.

Mesfin Industrial Engineering, Ethiopia is planning to build Geely cars within the next five years with the Chinese company. The manufacturer expects to commence full blown production within the next three to five years according to Habte Hadish, General Manager of MIE.

MIE is currently assembling six cars a day but is looking to begin manufacturing cars completely within the country he said.

Mesfin Engineering registered 620 million birr in revenue in the last fiscal year and has projected to earn 1 billion birr in this financial year.  The company currently assembles trucks for International Tractors Ltd, which is part of Hoshiarpur, Indian based Sonalika group.

Mesfin Industrial Engineering, Ethiopia launched a new vehicle model named ‘Addis’. The new model which is equipped with a capacity of 1300cc is the second new line inaugurated by MIE within a year.

The new model is expected to cost the 430 thousand birr with customers paying 30% beforehand and the remaining 70% upon delivery.

MIE has assembled 32 Addis vehicles so far and plans to enhance its capacity to 1000 vehicles every year. The vehicles are assembled by the company from parts imported by Chinese automobile manufacturer Geely International.

Mesfin Industrial Engineering launched Saturday an assembly plant for Addis Car in partnership with Geely International Corp, a Chinese manufacturer. Addis Cars will assemble Geely cars powered by 1.3cc engines and equipped with double airbags and an anti-breaking system.

Mesfin has been assembling trucks and this is the first time for it to assemble automobiles. With the machinery the company imported for 10 million birr, it is capable of assembling five Geely automobiles at a time and over 800 a year.

Mesfin Industrial had imported 34 completely built units of Geely cars to test its appeal to middleclass customers at the end of 2010. The cars were sold at 285,000 birr each, which encouraged Mesfin Industrial to install the assembly plant, according to Yusuf, manager of sales and promotion at Mesfin Industrial.

Mesfin also has the sole distribution rights in Djibouti, Eritrea, Kenya, Somalia and Sudan where Geely is not licensed to distribute. The company has been the exclusive importer and distributor of Geely cars in Ethiopia since August 2010.

By February 2011, 13 vehicle and tractor assembly companies were licensed and started operation. Some of companies are owned by foreigners, according to the Ethiopian Investment Agency.

Source: Fortune

Messebo Cement Factory is working to shift its energy source from coal and electricity to biomass.