BGI Ethiopia pays 80 percent of its share in Raya beer

BGI Ethiopia which had signed on November 18, a Memorandum of Understanding (MoU) with Raya Beer Share Company for 30 percent of Raya,

worth 75 million birr has paid 80 percent of the amount, or 60 million birr. Raya’s subscribed share amount has reached 240 million birr.
According to Lemma Bekele, General Manager of Raya Brewery S.C. the company has so far collected 240 million birr in subscribed capital which is just short by 10 million birr of its target.  It has also presented a proposal to the Commercial Bank of Ethiopia (CBE) for a 482 million birr loan.
Lemma also said that the company is progressing well in its attempts to start the construction of its  plant. Raya’s brewery is to be located about 660Km north of Addis Ababa in Tigray regional state,  Maichew area, about one kilometer from the city and in front of the Addis Ababa Mekelle highway.  Twelve companies so far have bought the tender document for the consultancy bid already issued. The winning company is expected to be disclosed in February.
The tender for the turnkey construction of the plant will start once the consultant company which will monitor the construction of the plant is selected. The company plans to start construction in June 2012.
Lemma further said that Raya expects to be allocated 22.5hct of land in the area this month.   A project is currently being finalized together with the Tigray regional government for a compensation to be given to farmers displaced.
Raya Brewery was formed in March 2010 with 58 shareholders and a capital of 2.36 million birr.
It now has 2103 shareholders.
Raya has prominent shareholders among its ranks including: Yemane Kidane (Jamaica), former chief of staff at the Ministry of Foreign Affairs, Selome Tadesse former Spokesperson for the Ethiopian Government during the Ethio-Eritrea war and former general manager of the Ethiopian Radio and Television Enterprise, and Zafu Eyesuswork former president of the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) and former General Manager & CEO of United Insurance S.C.
Dawit Gebregziabher is the largest shareholder with 52.5 million birr worth of shares. In total the company estimates it needs 782 million for the engineering, procurement and construction (EPC) of the plant.  
Raya plans to produce, in its first stage, draft and bottled beers but intends to diversify to premium brand beers eventually.
The factory’s initial plans are to produce 300 thousand hectoliters of beer every year covering 10-15 percent of the market and after a few years to add another 60 thousand hectoliters. They eventually hope to brew 600 thousand hectoliters.  Estimates for beer demand growth are expected to reach 5.2 million and 7.2 million hectoliters in the years 2013 and 2016 respectively.