Awaiting 420 mln birr loan
The under formation, Habesha Brewery is hoping for seventy percent of the promised loan from the Development Bank of Ethiopia (DBE) to begin building its brewery in Debre Birhan, 130Km north east of Addis Ababa.
On Sunday January 29, 2012 the share company held a cornerstone ceremony at their future compound. Ayalew Gobeze, president of Amhara regional state, and three ministers attended.
The share company is waiting for final approval from the state owned bank for 420 million birr or 70 percent of the total 600 million birr investment capital.
“We already have a solid proposal for the bank and we expect it to be approved soon,” Eskindir Desta, board member and one of the founding members told Capital.
In September 2011 the share company signed a turnkey contract with Lehui Food Machineries, a Chinese company to build the plant within 15 months. Based on the deal between the two companies, to commence the construction, Habesha expects to pay the first down payment for the Chinese firm. However, the brewery needs additional finance from DBE to submit the payment for the contractor. According to the turnkey agreement, the total project cost will start production in the first half of 2013.
Lehui won the contract for the designing, manufacturing, erecting and commissioning of Habesha’s Brewery on a 7.5hct plot located in Debre Berhan. It had offered the lowest price out of four shortlisted companies.
Habesha has 7672 shareholders with 154.69 million birr subscribed capital. 101.9 million birr or 62 percent of the total subscribed capital is already paid by shareholders.
Ethiopia’s annual beer consumption grows at an average of 24%, according to research done by Access Capital in 2009. Even though the estimated consumption of four million hectoliters in the country roughly translates into five liters per person annually, it is well below the average consumption of neighboring Kenya (12 liters) and South Africa (59 liters).