Ethiopia

imported 2024-03-17 17:43:08

Real estate in Ethiopia growing by 25% | Role of private real estate companies in Ethiopia

Ethiopia Top Stories
Real estate in Ethiopia growing by 25% | Role of private real estate companies in Ethiopia
The increasing number of emerging middle incomers has increased the demand for real estate development. A 2010 study by the Africa Development Bank shows that Africa’s middle class has increased to 34%, an increase of 27% from the 1980s, and Ethiopia is not considered to be an exception. Given that the government cannot address the need for the increasing demand for real estate on its own, it allowed a number of local private investors to become the major actors in the development of real estate in Ethiopia.

Enat Bank: Empowering Women of Ethiopia

Meaza Ashenafi, Chairperson of Enat Bank
In Ethiopia, private banks has been flourishing since 1994. The story of Enat Bank is indeed very inspirational. “We wanted to change the narrative; we wanted to change the story about women and finance, and women and economic empowerment. So it was eleven women who came together and decided to start this bank,” explains Meaza Ashenafi. “It became a brand and it became quite powerful because in Ethiopia, the literal meaning of Enat is “mother” but it goes beyond that. It’s about loyalty, care, embracing, foundation, and even about earth.”

Agriculture is the most attractive investment opportunity in Ethiopia, says Addis Chamber of Commerce

Getachew Regassa, Secretary General of Addis Ababa Chamber of Commerce and Sectoral Associations
“Ethiopia has shown serious growth in the last 10 years. Just last year we had a 9.7% GDP growth. There is also a lot of development of infrastructure going on and a vibrant business interaction in the city. The results of the economic growth that we are seeing are stimulating the business, trade and service industry,” notes Mr Getachew Regassa.

Top Investment Institutions in Ethiopia

Top Investment Institutions in Ethiopia
 Addis Ababa Chamber of Commerce and Sectoral Associations
Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) is one of the well-organized institutions that in one way or another work on promoting the investments and improving the overall investment climate in Ethiopia.
 Ethiopian Privatization Agency
This Agency is an autonomous government office which is entrusted with the tasks of privatizing, supervising, guiding, supporting and controlling state-owned enterprises to render them competitive and profitable and thereby enabling them to play significant roles in the implementation of the country’s Growth and development Strategy.
 Ethiopian Investment Agency (EIA)
The Ethiopian Investment Agency (EIA) is a government agency established in 1992 to promote private investment, primarily foreign direct investment. The overall activities of the Agency is supervised and followed up by an Investment Board, which is chaired by the Minister of Industry. The EIA is headed by a director general who is also a member of the Board and two deputy director generals.

Top Insurance Companies in Ethiopia

Top Insurance Companies in Ethiopia
The number of insurance companies increased to 14 as two more private insurance companies were opened during the year. Their branch network reached 221 following the opening of 11 additional branches during the same period. Except 1, all the other insurance companies with a branch network of 81.4 percent were privately owned. About 51% of these insurance companies are in Addis Ababa.

Top Agriculture Companies in Ethiopia

Top Agriculture Companies in Ethiopia
Following the attempt to expand the commercial farming in Ethiopia, a huge plot of land is being leased by the government to the different investors—both foreign and local. We have compiled a list of the top companies in the agriculture sector, i.e. the top large-scale agriculture companies involved in the commercial farming in Ethiopia, according to the latest statistics available. Among the top agriculture companies are Ethio Agri-CEFT and Horizon Plantations, both of which belong under MIDROC Group, the leading investor in Ethiopia.
 Ethio Agri-CEFT
Ethio Agri-CEFT is one of the top companies involved in the agriculture sector of Ethiopia. The company is an affiliate of MIDROC Group and has been raking among the largest coffee and tea farms in the country for the last 15 years. It is highly involved in tea production and tea exports. It also produces washed and sun-dried coffee, black tea, green tea, food crops, medicinal as well as bio-pesticides, herbal and aromatic plants, spices, honey and cut flowers.
 Horizon Plantations (Horizon Company)
Horizon Plantations is a specialized arm of the MIDROC conglomerate established in December 2009 by Sheikh Mohammed Hussein Ali Al-Amoudi, Chairman of MIDROC Ethiopia Investment Group, and Mr. Jemal Ahmed, Chief Executive Officer of Horizon Plantations. Its main purpose is to develop large scale perennial plantations starting up with an initial paid up capital of 190 million Birr. Horizon’s vision is to become a leading agricultural producer, processor and exporter in Ethiopia.
 Karuturi Global Ltd
Karuturi Global Ltd is an Indian agro-company, which is among the world’s biggest producer of cut roses. Karuturi Global Ltd has entered Ethiopian market about a decade ago and it is another of the top companies in the large-scale farming sub-sector. The company has acquired 300,000 hectares of fertile farmland in Ethiopia through a very cheap land lease for 99 years.

Top Telecom Companies in Ethiopia

Top Telecom Companies in Ethiopia
Ethio Telecom, the former Ethiopian Telecommunications Corporation (ETC), has been undertaking several huge network expansion projects during the last few years with a view to enhancing the development of the telecom sector and to support the steady growth of the country.

Top Industry Companies in Ethiopia

Top Industrial and Manufacturing Companies in Ethiopia
Ethiopian government is currently greatly encouraging the involvement of the private sector in manufacturing—all in order to transform the economy into an industry-led one. What are the top industrial and top manufactring companies in Ethiopia which lead the industrial production in the country? Below is a list of the top industry and manufacturing companies in Ethiopia that includes, among others, MIDROC’s Equatorial Business Group, Derba MIDROC Cement, Horizon Addis Tyre and the next leading furniture manufacturer in the country—Technostyle.
 Equatorial Business Group
Equatorial Business Group (EBG) was established in 1993 under the trade name Equatorial Electronics and Communication in Addis Ababa, in accordance with the commercial laws of Ethiopia. At the time of its establishment, EEC was engaged in the import and distribution of electronics, household and office goods and services. The company was owned by three investors, all of whom are brothers of Sheikh Mohammed Hussein Ali Al-Amoudi, the chairman of MIDROC Group—the largest investor in Ethiopia.
As the investment environment of the country favored new developments in the private sector, the owners of the company injected more capital and went into more strategic business ventures with a view of contributing to the national economy and to generating more employment opportunities to fellow citizens. The investors also saw the importance of technology, knowledge and skills most vital to the country through the import of the products and services to the local market as they entailed high-tech soft and hardware features. Thus, EEC as it was then called, became Equatorial Business Group.
EBG’s business lines are all targeted to major development sectors like construction, mining, water resources, agriculture, road and air transport, energy, health and ICT infrastructures.
 Ethiopian Electric Power Corporation (EEPCO)
As of the beginning of 2014, the Ethiopian Electric Power Corporation (EEPCO), which has been a sole institution that monitors the country’s power grid, is split into two different institutions, i.e. Ethiopian Electric Power and Ethiopian Electric Services. The Ethiopian Electric Power is in charge of undertaking the country’s power projects including the mega hydroelectric dams, and will be administered by the EEPCO management. The Ethiopian Electric Services is tasked with operating, distributing and selling electricity, and has been outsourced to an Indian company with a 2-year management contract worth of 21 million USD.
 Derba MIDROC Cement
Taking over 52% of the cement production market in Ethiopia, the MIDROC affiliate Derba is the number one producer of cement in the country. Derba MIDROC Cement was established following the shortage in the supply of cement and it currently has a capacity of producing 8,000 tons of cement per day. Derba MIDROC Cement is also involved in the construction of the Ethiopian Grand Renaissance Dam.
 Horizon Addis Tyre Company
The three decade-old tyre factory in Addis Ababa has changed owners and names a number of times prior to its acquisition by MIDROC’s Horizon. Established in 1972 as Addis Tyre, the factory was completely state-owned until the first joint venture (JV) arrangement the government had ever entered into, in 2004, selling away 61pc to Matador, a Slovakian company, for 13.9 million USD in 2004.
Renamed Matador Addis Tyre, the company introduced radial tyres and new molds before selling 51pc of its shares in 2008 to Continental Germany, a tyre manufacturer based in Hanover. Later, Horizon Plantation acquired all 61pc shares from the two companies for 17.9 million dollars.
The company announced on Tuesday, May 29, 2012, an earlier ETB 30 million investment, which Jemal Ahmed, general manager of Horizon Plantations, called the first phase. This phase included the modification of light truck diagonal tyres, introduction of new patterns for the factory’s products, and introduction of new sizes for light truck radial tyres to be used by vehicles like Land Cruisers and minibuses.
 Technostyle
Technostyle is the leading importer and supplier of world class furniture in Ethiopia. Technostyle now aspires to use 60% of the materials from the local market so as to substitute import and start producing furniture locally in Ethiopia.
 Pittards Ethiopia Tannery
Pittards Ethiopia Tannery is a UK-based leather and leather products manufacturing company and is the leader in its segment. Pittards joined the leather sector in Ethiopia in 2005 and thus began managing the Ethiopian Tannery Share Company. The company has today three factories, produces close to 1,000 units a day and increased its profit by up to 20%. It has recently joined sheep farming.
 Heineken
Purchasing the auctioned state-owned breweries such as Bedele and Harar beers by the Privatization and Public Enterprises Supervising Agency, Heineken is now a dominant company in Ethiopia’s brewery industry.
 MOAB Plc.
MOAB Plc. is a local manufacturing company. It is highly engaged in food complex whose large majority raw materials are from the local market. Owning its own marble quarry, MOAB Plc. is also engaged in the marble industry of Ethiopia.
 Pasqua Giuseppe Plc.
Established in 1965, Pasqua Giuseppe Plc. is a local company that manufactures aluminum and metal (steel) components for both small-scale and large-scale local and international companies in the country.
 Metals and Engineering Corporation
Metals and Engineering Corporation is a state-owned firm that is administered by the defense. It is highly involved in design, manufacturing assembly and maintenance of city buses as well as upgrading combat aircrafts and helicopters, trucks and other vehicles, and weapons. Metals and Engineering Corporation is also engaged in the manufacturing of electric transmission and telecommunication towers. The Corporation is among the major companies involved in the construction of the Ethiopian Grand Renaissance Dam.
 Ethio-Leather Industry Plc (ELICO)

Scroll to top
Close