BGI Ethiopia Distributor Association, representing 36 members, has raised concerns over BGI’s breach of their two-decade-long contractual agreement. The association asserts that despite a signed two-year contract last July, BGI has violated the terms by introducing new distributors without their consent.
Sintayhu G/Selassie, President of the BGI Distributors Association, confirmed the contractual breach, citing BGI’s deployment of new agents in contravention of the agreement. BGI’s CEO, Herve Milhade, announced a new strategic plan aimed at market competitiveness, including revamping the distribution system. Distributors are invited to continue under the new terms, with restructuring threatened for non-compliance.
Despite BGI’s investment of six billion birr, distributors claim a drastic decline in sales, from forty-two percent to twenty-four percent in the past year alone, resulting in significant losses. The Distributor Association, comprising 36 members and employing 4,000 workers, seeks adherence to the original contractual terms amidst ongoing negotiations with BGI.
