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)