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An Enterprise Map of Ethiopia

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i i “ethiopia” — 2010/11/15 — 14:33 — pagei—#1 i i AN ENTERPRISE MAP OF ETHIOPIA i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page ii — #2 i i i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page iii — #3 i i AN ENTERPRISE MAP OF ETHIOPIA John Sutton and Nebil Kellow i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page iv — #4 i i Copyright © 2010 International Growth Centre Published by the International Growth Centre Published in association with the London Publishing Partnership www.londonpublishingpartnership.co.uk All Rights Reserved ISBN 978-1-907994-00-5 (pbk.) A catalogue record for this book is available from the British Library This book has been composed in Utopia using TEX Copy-edited and typeset by T&T Productions Ltd, London Cover design: LSE Design Unit Cover photograph courtesy of the Engineering Capacity Building Program (ecbp) i i i i i i “ethiopia” — 2010/11/15 — 14:33 — pagev—#5 i i CONTENTS About the Authors ix Acknowledgements xi Acronyms and Abbreviations xiii 1 Introduction 1 2 Widely Diversified Firms 15 2.1 Profiles of Firms 16 Ahadu, DH GEDA, East African Holdings 2.2 MIDROC Ethiopia 22 MIDROC Technology Group, ELICO, Pharmacure, National Mining Corporation PLC, Agri-Ceft Ethiopia 3 Coffee 33 3.1 Sector Profile 33 3.2 Profiles of Major Firms 39 Moplaco, Great Abyssinia, Robera 4 Oilseeds and Pulses 45 4.1 Sector Profile 45 4.2 Profiles of Major Firms 50 Belayneh Kindie Import Export, Guna Trading House, Kabew Trading, Bajiba, Al-Impex 5 Floriculture 59 5.1 Sector Profile 59 5.2 Profiles of Major Firms 63 AQ Roses, Red Fox PLC, Golden Rose Agro Farms Limited 6 Food Processing 69 6.1 Sector Profile 69 6.2 Profiles of Major Firms 74 NAS Foods, Dire Dawa Food Complex, Health Care Food Manufacturers, Brothers Flour and Biscuit Factory, SEKA Business Group, Organic Export Abattoir, Luna Export Slaughter House, Sebeta Agro Industry, Modjo Modern Export Abattoir PLC i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page vi — #6 i i vi CONTENTS 7 Sugar 89 7.1 Sector Profile 89 7.2 Profiles of Major Firms 93 Finchaa Sugar Factory, Metehara Sugar Factory 8 Leather 97 8.1 Sector Profile 97 8.2 Profiles of Major Firms 103 Anbessa Shoe, Ramsey Shoe Factory, Hafde Tannery, Ethiopia Tannery Share Company 9 Textiles and Garments 109 9.1 Sector Profile 109 9.2 Profiles of Major Firms 115 Crown Textile Weaving, GG Super Garment Factory, Woinu Curtain Trade 10 Cotton 121 10.1 Sector Profile 121 10.2 Profiles of Major Firms 125 Amibara Agricultural Development, Blen Tsegaye Business Industrial Group 11 Construction 131 11.1 Sector Profile 131 11.2 Profiles of Major Firms 136 Sunshine Construction, SUR Construction 12 Cement 139 12.1 Sector Profile 139 12.2 Profiles of Major Firms 143 Mugher Cement Enterprise, Messebo Building Materials, Jema Cement 13 Steel, Engineering and Assembling 149 13.1 Sector Profile 149 13.2 Profiles of Major Firms 155 Zuquala Steel Rolling Mill Enterprise, Yesu PLC, Abyssinia Integrated Steel, Mesfin Industrial Engineering, Holland Car, Glorious 14 Pharmaceuticals 165 14.1 Sector Profile 165 14.2 Profiles of Major Firms 169 Addis Pharmaceuticals Factory, Ethiopian Pharmaceuticals Manufacturing i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page vii — #7 i i CONTENTS vii 15 Plastic and Rubber 173 15.1 Sector Profile 173 15.2 Profiles of Major Firms 175 Ethiopia Plastic Share Company 16 Glass 177 16.1 Ethiopia Hansom International Glass PLC 177 Annexes 179 i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page viii — #8 i i i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page ix — #9 i i ABOUT THE AUTHORS John Sutton is the Sir John Hicks Professor of Economics at the London School of Economics. Nebil Kellow is the managing director of First Consult PLC, Addis Ababa. The International Growth Centre (www.theigc.org) promotes sustainable growth in developing countries by providing demand-led policy advice based on frontier research. The IGC is directed and organized from hubs at the London School of Economics and the University of Oxford and comprises country offices across the developing world. The IGC was initiated and is funded by the Department for International Development (DFID). John Sutton’s Enterprise Map Project aims to provide a standardized descriptive account of the industrial capabilities of selected countries in sub-Saharan Africa. This is the first volume to appear. The original version of this study was delivered to the Office of the Prime Minister of Ethiopia in July 2010. The present version has been edited to remove commercially sensitive material. i i i i i i “ethiopia” — 2010/11/15 — 14:33 — pagex—#10 i i i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page xi — #11 i i ACKNOWLEDGEMENTS The authors of this report would like to thank the many organizations and individuals that supported this work, who cannot be mentioned individually. This work was, in large part, made possible by the firms’ representatives, who devoted their time to meetings with the research team. The authors would like to thank H.E. Ato Newai Gebre-ab, Economic Adviser to the Prime Minister, and H.E. Tadesse Haile, Minister of State for Trade and Industry, for their support. We also thank the following government offices and sectoral associa- tions for providing the necessary information and data: the Ministry of Trade and Industry (MoTI), the Ethiopian Development Research Institute (EDRI), the Ministry of Agriculture and Rural Development (MoARD), the Ministry of Works and Urban Development (MoWUD), the Ministry of Culture and Tourism, the Ethiopian Sugar Development Agency, the Ethiopian Basic Metals and Engineering Industries Development Agency, the Ethiopian Leather Industries Association, the Ethiopian Flour and Flour Products Association, the Ethiopian Horticulture Producers and Exporters Association, the Ethiopian Association of Basic Metals and Engineering Industries (EABMEI), the Ethiopian Pulses, Oilseeds & Spices Processors and Exporters Association, the Construction Contractors Association of Ethiopia and the Ethiopian office of the World Bank. Lastly, the consulting team at First Consult played a key role in working with the 50 companies we profiled. Particular appreciation goes to Michael Addisu and Hayat Yusuf. i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page xii — #12 i i i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page xiii — #13 i i ACRONYMS AND ABBREVIATIONS APF Addis Pharmaceutical Factory API Active Pharmaceutical Ingredients BC Building Contractor BPR Business Process Re-engineering CAD China–Africa Development CC Commercial Cane CEO Chief Executive Officer CRBC China Road and Bridge Construction CRT TV Cathode Ray Tube Television CSA Central Statistical Authority DACA Drug Administration and Control Authority DBE Development Bank of Ethiopia EABMEI Ethiopian Association of Basic Metals and Engineering Industries EAP East African Pharmaceuticals EBA Everything-But-Arms ECX Ethiopian Commodity Exchange EEPCO Ethiopian Electric and Power Corporation EFFORT Endowment Fund for the Rehabilitation of Tigray EHGC Empty Hard Gelatin Capsules ELICO Ethiopia Leather Industry Corporation EMS Environmental Management System EPHARM Ethiopian Pharmaceuticals Manufacturing ERA Ethiopian Roads Authority ESDA Ethiopian Sugar Development Agency ETB Ethiopian Birr EU European Union FAO Food and Agriculture Organization FDI Foreign Direct Investment FY Fiscal Year FOB Freight On Board GIS Galvanized Iron Sheet GC General Contractors GDP Gross Domestic Product GM General Manager i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page xiv — #14 i i xiv ACRONYMS AND ABBREVIATIONS GMP Good Manufacturing Practice GTZ German Technical Cooperation GTZ IS German Technical Cooperation International Services HACCP Hazard Analysis and Critical Control Point HDPE High Density Polyethylene HQ Headquarters HSK Horizontal Shaft Kiln HVA Handles Vereening Amsterdam ICT Information and Communications Technology IPO Initial Public Offering ISC Initial Seed Cane ISO International Organization for Standardization IT Information Technology JAC Jianghuai Automobile Company KLM Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) KOSPI Kombolcha Steel Products Industry LDPE Low Density Polyethylene MBI Modern Building Industries MIDROC Mohammed International Development Research and Organization Companies MIS Management Information System ML Meter Linear MoARD Ministry of Agriculture and Rural Development MoFED Ministry of Finance and Economic Development MoTI Ministry of Trade and Industry MoWUD Ministry of Works and Urban Development MT Metric Tonne NGO Non-Governmental Organization NTO National Tourism Organization OPC Ordinary Portland Cement PASDEP Plan for Accelerated and Sustained Development to End Poverty PFSA Pharmaceutical Fund Supply Agency PIC/S Pharmaceutical Inspection Cooperation Scheme PLC Private Limited Company PPC Portland Pozolana Cement PPESA Privatization and Public Enterprises Supervising Agency QMS Quality Management System i i i i i i “ethiopia” — 2010/11/15 — 14:33 — page xv — #15 i i ACRONYMS AND ABBREVIATIONS xv RC Road Contractor ROA Return On Assets SABS South African Bureau of Standards SC Seed Cane S.C. Share Company SCAA Specialty Coffee Association of America SKD Semi-Knocked Down SME Small and Medium Enterprise SNNPR Southern Nations, Nationalities and People’s Region SOE State-Owned Enterprise tcp tonnes of clinker per year TNA Trans Nation Airways TTCI Travel and Tourism Competitiveness Index TVET Technical and Vocational Education and Training UAE United Arab Emirates UK United Kingdom UNDP United Nations Development Programme
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