By Tesfaye Getnet
The Tigray Regional State has given plots of land to 220 investors along the outskirts of Mekelle according to Mebrhatu Melese, Head of Tigray Manufacturing Development Agency.
The lands which are mostly given to the local investors will be used for manufacturing companies and will create job opportunities for around 100,000 people.
The aim providing the land is to empower the local companies to grow and serve as an avenue for job creation.
The investors will use the land for pharmaceuticals, agri-business, textiles and related manufacturing industries
Mebrhatu told Capital that more than 1,000 investors are waiting to get land in the region for their business activity. An incentive to potential broadband investors is also planned to enable penetration throughout the region.
“We understand that manufacturing is one of the ways to create more jobs here, we are giving Turkish investors 100 hectares to build their own industry park and do some jobs in furniture chemical and food processing works, we have 1,000 hectares in fenced lands for this sector and we are working to create jobs in agro processing fields also,” he said.
He added that currently more than 200 big and 6,000 small scale manufacturing companies work in the region and these investors will help the government promote the export of goods and services, promote investment from local and foreign sources, and also accelerate export led industrialization.
Manufacturing registered 11 percent increase and manufacturing exports increased more than eleven fold. This was largely thanks to the increasing export earnings of the footwear and apparel industries. The growth represents more than a doubling of manufactured exports’ share in total merchandise exports, which itself more than quintupled during the period.
Nevertheless, manufacturing as a share of gross domestic product in Ethiopia remains 5%, well below the African average of 10%. The country also scores below the African average on diversification, export competitiveness, productivity and technological upgrading.
Despite this, it’s not a long-shot to predict that Ethiopia will catch up with countries like China and Vietnam in some low-tech manufacturing industries in the near future. These are industries for which labor costs are very important. And right now you’d be hard pressed to find a country in the world that has cheaper labor than Ethiopia. Even beyond these obvious industries, there are reasons to believe that Ethiopia might be on the right track to catch up with more advanced economies.
Tigray offers up land plots for 220 investors
Kegna brewery to start operation
Kegna Brewery which is established as part of the Oromia economic revolution that began two years ago signed a consultative service agreement with Brewtech GmbH Brewery.
The agreement was made to conduct a feasibility study, environmental impact assessment, designed development, installation of the machines, marketing up to the stage of testing the beer.
The agreement was signed between Jobst Meier zu Biensen, Managing director of Brewtech and Neway Megersa managing director of Kenga in the presence of delegates of the company and board members of Kegna Brewery SC.
“The agreement comes to life after a long and strong negotiation with deep analysis of every single step and document,” said Neway Megersa an architect of the Oromia economic revolution.
The Oromia economic revolution is the fruit of Oromia scholars coming together in order to alleviate the economic problems of the region and the country after studying and implementing strategic sectors of the region’s resources.
The plant is going to be built in Ginchi Town of west Oromia region which is some 83km west of Addis Ababa with the cost of 5.5 billion birr.
The factory will occupy 101 hectares of land to brew beer and other beverages like juice and bottled water.
At full capacity, the factory will produce three million hectoliters of beer per annum. The factory is also expected to create job opportunities for 3,500 people.
The company has around 5,000 shareholders including farmers, and has 1.5 billion birr in subscribed capital.
The other companies that are working under the umbrella of the Oromia economic revolution are Wellabu Construction Odda Integrated Transport Service and Kegna Agricultural Machine Assembly Factory.
Welabu Construction is constructing the Shashamane Industrial Park and is also engaged in the construction of real estate which can create jobs for more than 5,000 people.
The company already assigned board members chaired by Tolosa Gedefa and comprised of Juneddin Basha, former Head of Ethiopian Football Federation and a long-time manager of Harer Brewery and Mesele Haile owner and manager of Country Club Developers.
According to the agreement Brewtech will finalize the project in 24 months.
“Brewtech is not new to the Ethiopian beer industry and we will deliver the best quality of beer,” Jobst Meier zu Biensen, Managing Director of Brewtech said.
Brewtech has 50 years of experience in the brewery industry and has an office in West Africa.
New bureau to promote meetings, exhibitions
A new convention bureau was opened last week in Addis Ababa. The organization will work with the city with the goal of hosting more international meetings, exhibitions, conferences and incentives.
Its specific mission will be to promote and market the city as a place for meetings and conferences and develop / strengthen the network of all related providers and products at the city level while supporting bids for international conferences and meetings.
The new office dubbed ‘Addis Ababa Convention Bureau’ directly submits to the mayor’s office and currently is in the recruiting and planning phase.
A statement from Vice Mayor, Takele Uma reads that the new bureau will be directed by Kumneger Teketel who has been working in the tourism and hotel industry for over ten years.
“The opening of the bureau is part of our strategy to entrench Addis as a leading global destination for business tourism and to increase our annual share of global events. We want the Addis to be a player in the global business tourism market as a venue of choice for conventions, meetings, incentives and mega-events.
“The bureau not only will focus on business and leisure tourism, but also investment and other business opportunities in the city,” Takele said.
After the opening of the bureau some international operators like Radisson Hotel Group, InterContinental Hotel Groups – IHG, Jing Jang holdings Louvre Hotels Group sent their congratulations letter to the mayor showing their interest to support the city in promoting MICE industry.
The new director, Kumneger told Capital that he will do his best to bring good results.
“We are working on the Main organizational structures and composing International partners from international hotel brand Operators, international MICE global leaders, top senior qualified MICE players. The mayor is working on it seriously to bring the city as one of the top MICE destination in Africa in short period of Year.”
“As a responsible citizen, we should support our beautiful nation with our professional experience and expertise at this critical moment. My plan is to level Addis Ababa as one of the first three meetings, incentives travel, conference and exhibition destinations in less than two years.”
“We believe that the bureau will be a great new asset to the hospitality industry and a perfect opportunity to increase the number of business travelers to Ethiopia and Addis Ababa and we want to invest more in conference tourism as to get a share from the USD300 billion generated annually from global conference tourism,” he said.
At the federal level the government is working with tourism consultant Rick Taylor to open the bureau in Addis Ababa.
The planned Ethiopia National Convention Bureau (TNCB) will oversee all MICE-related activities at national and international levels to compete with Rwanda and South Africa and Kenya.
Rwanda and South Africa have been rated the leading African nations in conference tourism.
The Rwanda Convention Bureau was established in 2014. In 2016, the Rwanda Convention Bureau managed to organize about 40 international meetings worth USD 47 million, according to sources from Rwanda Development Board (RDB).
Sudanese Revolutionary Front rejects power sharing agreement
The Sudanese Revolutionary Front (SRF), which is one of nine parties forming the Forces of Freedom and Change (FFC), has rejected the agreement made between the Transitional Military Council (TMC) and (FFC), saying the negotiation made last week was unacceptable and would complicate the national process.
This occurred the same day as an accord was signed in Khartoum, in the late afternoon at Jupiter Hotel in Addis Ababa.
A delegation made up of the FFC and the SRF was on the way to agreeing to the draft declaration. The goal was to achieve peace and participate in negotiations over the constitution with the Transitional Military Council.
“It’s the act of disrespect for Sudanese people and the mass will not accept it as it marginalizes SRF and is designed at the back door,” said Gibril Ibrahim, the Deputy Chairperson of Sudan Revolutionary Front.
Gibril added that they want to help pave the way to establishing a civilian government.
“The next step should be bringing back an inclusive agreement and for the board to make a lasting solution, adding he was open to sitting with FFC to make the agreement acceptable for all Sudanese.
Last Wednesday, the ruling TMC and opposition FFC coalition signed a power-sharing deal in Khartoum after long talks, in a move paving the way to hand over power to a civilian administration.
The accord stipulates that a new transitional ruling body be established, made up of six civilians and five military representatives.
The civilian representation will include five from the umbrella protest movement Alliance for Freedom and Change.
A general will head the ruling body during the first 21 months of a transition, followed by a civilian for the remaining 18 months, according to the framework agreement.
The governing council is to oversee the formation of a transitional civilian administration that will operate for just over three years, after which elections would be held.
“There is still a chance to overcome this crisis if what will be reached between them and their allies in the FFC is included in the political agreement before to strike a deal on the constitutional declaration,” said Mohamed Zakaria Farajalla, SRF spokesperson.
