Ethiopian News and Opinion Forum


Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 19 Mar 2012, 21:28


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For years, now, night-time has been good for some of Addis Abeba’s supermarkets open 24 hours a day, seven days a week. Africa Avenue (Bole Road) boasts at least two such places, which have been open for almost a decade.

Central Supermarket was the first to grace the road with night-time service, it says, starting nine years ago. Today, a third of its customers, averaging 600 a day, are nocturnal. As the city stretches its arms to embrace the night, not just supermarkets, but drug stores, petrol stations, and fast food joints are daring into the darkness.

In the five years she has been on the job, she has observed that fast food and grocery items, including sandwiches and soft drinks, have been the dominant items in demand at night. The same is true for Central and 9G's Sure market, a supermarket near Atlas Hotel. At Central, though, the list stretches to include beer and whiskey.

The list of customers includes a lot of expatriates, most of whom prefer to do their shopping on Fridays and Saturdays, Dejene Wolde, supervisor at Central Supermarket, told Fortune. An Ethiopian market research survey, conducted by the Swedish International Development Cooperation Agency (SIDA) in 2007, indicated that the increased number of expatriates and relatively wealthier Ethiopians triggered the growth of supermarkets.

The figures showed that around 48,531 expatriates, who mostly preferred to shop in supermarkets, were living in Addis Abeba, at the time. The introduction of service-giving after normal business hours mostly suited them. “Foreign nationals permanently or temporarily living in the capital are the major beneficiaries of the night economy,” SIDA’s research survey revealed.

Ethiopia’s supermarket revolution began in the late 1990s, especially in bigger cities such as Addis Abeba, Bahir Dar, Mekele, and Awassa, although the pace remains slow in comparison with other African cities, such as Nairobi, Kenya. The 351 supermarkets found in Addis Abeba are less than half of those operating in Nairobi.Addis Abeba’s 3.1 million residents are also lagging in other services, compared to Nairobi, which boasts 300,000 more people. Figures obtained from the Kenyan National Hospital Insurance Fund, a parastatal under its Ministry of Health, showed that Nairobi has 54 accredited hospitals and 113 clinics, as of last year. Addis Abeba has 41 hospitals and 82 modern private clinics (we're getting closer now, but still got some catching up to do), according to Central Statistics Agency (CSA).Hospitals and clinics need to be available 24 hours a day, according to Robel Tefardegn, a marketing expert and consultant at Elements Hospitality Management and Consultancy, in order to provide care for various health-related problems that people may face through midnight. Unlike the 24-hour supermarkets mainly located in Bole and CMC areas, clinics and hospitals are scattered all over the city.

Kidus Gebriel Hospital, located in Haya Hulet, on Djibouti Street, provides emergency medical services. On March 6, 2012, six nurses, a lab technician, an x-ray technician, and emergency surgery professionals, along with the shift’s medical doctor were, on duty. “We are ready 24 hours, but, most of the time, the cases we receive are not that much serious,” Mihret Kebede, cashier and receptionist at the Hospital, said. “We are not that much busy at night.”

Some distance from it, at Haya Hulet Mazoria Higher Clinic, the rooms are often busy providing first aid to a lot of people involved in drunken fighting after 3:00am, the doctor on duty said. The staff of Senay Clinic, near Agona Cinema on Sierra Leone Street, was also on standby and responding quickly to a driver of a Land Cruiser who was injured when colliding with the guardrail just before midnight on March 6.

Not all health facilities were busy, though.

Addis Abeba might be okay when it comes to the service of its clinics, but it is unlucky when it comes to petrol stations. The 13 gas stations tagged 24-hours located around Bole Road, Megenagna, Saris, and Kazanchis areas were not giving service after midnight on March 6, 2012. The main victims of the closing gas stations are contract taxi drivers.

“I always fill my car’s tank before nightfall because it is impossible to buy gasoil after 10:00pm,”Ashenafi Bizuneh, a contract taxi driver who mainly works in the Haya Hulet area, told Fortune. “The main working hours of contract taxis are in the evening. Most of the time, workers at the gas stations tell me that they do not have fuel or that their machine has a technical problem.”

The time has not yet come for Addis Abebe to have 24-hour locksmiths, plumbers, electricians, or fitness centres. Even getting proper service from existing businesses still remains a question. Unlike other businesses in the service sector whose 24-hours service is below par, supermarkets like Central, one of the first to open on the street where such marts are abundant, give adequate service to the many nocturnal customers that visit the store.



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 20 Mar 2012, 19:01


Ethiopian Still Keen to Build Four-Star Hotel on Africa Avenue

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Ethiopian Airlines is seeking international companies to build a four-star hotel in two and half years, on a plot near Bole International Airport, a plan its management has been tinkering with for years now.

Estimated to have cost 300 million Br two years ago, the national carrier wants to see a hotel of international standard is built on a 40,000sqm plot it has on a land opposite to the Millennium Hall, on Africa Avenue (Bole Road). The company has invited last week international construction firms to “design and build” on a turn-key contract basis. This was not the first offer Ethiopian has made to let companies bid to build the hotel.

The national carrier wanted to have instead a company that could “design and build”, while along the way it will hire consulting firms to review the design and provide supervision as well as contract administration services, according to an architect who is an insider to the industry.

Ethiopian had entered into a 60 million dollars joint venture arrangement with the China-Africa Development (CAD) Fund and HNA Hotels & Resorts Group (HNA Group), where the parties had signed a tripartite agreement in November 2009, in Egypt. Ethiopian would have a 53pc share, while CAD and HNA Group would have 28.2pc and 18.8pc shares, respectively.



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 26 Mar 2012, 18:38


Military to Vacate Meshualekia Camp for Light Rail Project Office

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China Railway Eryuan Engineering Group, a subsidiary of China Railway Group Ltd, will take it over, using it for non-military purposes for the first time. Giant construction machinery will be among the materials to be stored there, according to an official at the Railway Corporation.

The camp will be both a storage area and the North to South Addis Abeba Light Rail Project Office for the Chinese company, the main project office located next to the British Embassy, at Fikremarian Aba Techan Street.

The electrified light rail will include two lines, the North-South and East-West, 16.9kms and 17.35kms long respectively, with a capacity of 80 passengers per hour. The 9.2km Torhayloch-Megenagna line was designed by Core Consulting Engineers Plc for 3.6 million Br. The remaining 8.2km from Megenagna to Ayat was also designed by Core in a separate conract. There will be tracks from Lideta through AtkiltTera to Merkato and from Meskel Square to Kality. Sixty percent of the financing is obtained from the Chinese government, the rest coming from the government of Ethiopia. The entire project is expected to cost 400 million dollars.



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 03 Apr 2012, 09:52


Ethiopian to acquire 15 new aircraft Buys Q400 simulator .
Saturday, 31 March 2012 06:03


The Ethiopian Airlines is to acquire 15 new aircraft from Boeing and Bombardier this year.

In an exclusive interview with The Reporter, TewoldeGebremariam, Ethiopian CEO, said the airline would acquire four Boeing787 Dreamliner jetliners, four Boeing737-800, five BombardierQ400 and two Boeing777 freighters. Ethiopian placed ten firm orders for Dreamliner aircraft valued at 1.5 billion dollars in 2005. The aircraft were supposed to be delivered to Ethiopian in 2008-2010. However, for various reasons. Boeing has been compensating Ethiopian for the costs the airline incurred due to the delay in delivery. Now executives of Boeing say they would deliver the first two Dreamlinners in July or August. “They are saying they would delivery in July or August. They did not decide,” Tewolde said.

Despite the escalating fuel price that created a havoc in the global airline industry Ethiopian is still making a profit. “The fuel price hike is affecting our profitability. But still we are profitable. Of course, the profit will be less but we will make profit. We are acquiring all these new aircraft because we still have a storng financial status. If you do not have a strong financial position, financiers will not give you loans. Ethiopian still has a strong financial position. That is why it is able to acquire all these aircraft. Our financiers rely on us because they know that we have a strong financial status. They know that we are strong so they trust us,” Tewolde said.

Ethiopian has 48 aircraft comprising Boeing767, 757, 737, 747, MD11, and Q400. Ethiopian ordered 12Airbus A350.

In a related news Ethiopian has bought a Bombardier Q400 simulator at a cost of 15 million dollars from the Canadian aircraft manufacturer. Tewolde said Ethiopian made several agreements with Bombardier. “We agreed to be Bombardier parts distributor in Africa. We agreed to be a certified Bombardier MRO (maintenance repair and overhaul) center. There are Q400,300,200 and 100 aircraft. We will repair these aircraft. We will also train pilots on these aircraft,” Tewolde said.

The CEO denied the report that claims that his management was compelling its employees to contribute to the airline and work on day-offs as part of the management’s cost reduction strategy. “We did not force anyone. It is the employees by themselves who are working on their day-off without overtime payment. The pilots and the flight attendants contribute one dollar from their per diem. This has been done on their own initiative. We did not impose anything on them.”



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 08 Apr 2012, 18:01


Petro Trans hired two subcontractors for the ogaden oil and gas concession

Ptero Trans, the Chinese company that took over the Calub and Hilala gasfields in the Ogaden basin hired two Chinese companies - BGP and Sunrise - which will conduct seismic survey and exploration well drilling. Richard Spooner, country manager, told The Reporter that PteroTrans last month hired BGP, which will collect seismic data from Calub, Hilala, Warder and Genale blocks. Hired by Tullow Oil, BGP is undertaking seismic survey in South Omo. Tullow is a British company that discovered oil in Kenya. Tullow also discovered oil in the Albert basin of Uganda. “We have heard many good things about BGP,” Spooner said. “Experts of the company have started analysing petroleum data collected from the Ogaden. The Ministry of Mines has been very cooperative in giving us the access to all types of data.”

Spooner said the old seismic data found at the Ministry of Mines will be interpreted, adding that BGP will collect new data. “Based on the findings of the studies it will be decided where to drill,” Spooner told The Reporter. Representatives of the companies have visited the Ogaden basin in the Somali Regional State.

Spooner said PetroTrans had also hired another Chinese company, Sunrise, that will undertake the well-drilling work. “We will drill additional exploration wells in Calub and Hilala. We will also verify the proven gas reserves in Calub and Hilala.” According to him, Sunrise will start drilling before the end of this year.

However, work on the gas treatment plant is at an early stage. “We have hired companies that would undertake studies on the construction of the gas processing plant. We hired Chapman Engineering and NuTech. The companies specialised on construction and geology,” Spooner said.

Spooner said that the Ogaden region is currently stable and safe. “The Ethiopian defence forces have been helpful.

PetroTrans is interested in constructing an oil pipeline all the way from South Sudan to Djibouti or Kenya. Executives of PteroTrans are holding talks with officials of South Sudan. “It is not appropriate to reveal on-going negotiations,” Spooner said.



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 27 Apr 2012, 21:32


Holland car branches out in DRC

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The first automobile assembling plant in Ethiopia, Holland Car Plc, has sealed a deal to assemble the Ahadu Bus and Abay Executive through a Joint Venture (JV) with TRC-City, a transport company based in the Democratic Republic of Congo (DRC). The car assembling company plans to showcase its first assembled bus in DRC within the coming four months.

Holland Car has invested 8.5 million birr to develop the first trailer bus in the country according to Tadesse Tessema (Eng.), General Manager of the company. It marketed the new product at a cost of 1.6 million birr. However, the bus which has the capacity to carry 250 people at a time was not put into service due to the low level of demand at home.

The largest city bus operator in the country, Anbessa City Bus Enterprise, has ordered 500 new buses to be assembled by the recently established military engineering complex; Metal and Engineering Corporation. This move by the Addis Ababa City Government has watered down the company’s plan to cash in from the potential lucrative deal. The unexpected move by the city government forced the car assembling company to search for an alternative market that resulted in the formation of the JV. The company is also soliciting talks to market its products in Ghana. Holland car owns thirty percent share in the JV of the new assembly plant to be erected in Kinshasa. The remaining 70 percent is shared equally among two founding partners of TRC-City according to the manager. Ahadu City Bus will be marketed in DRC under a new brand name; Trans City.

[...]

The company has recently introduced a new engine called VVT (Variable Valve Timing). VVT is an engine that controls the opening and closing time of intake valves according to different working conditions of the engine to improve its power performance while decreasing fuel consumption. According to experts, VVT engine is made of aluminum. It decreases fuel consumption by more than six percent, weight by 29 percent and improves the power of a car by more than 10 percent.

Holland car is making preparations to take its car assembly process a step further by shifting to complete knockdown, where all the parts will be imported in pieces to be welded, painted and assembled in Ethiopia.



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 21 Dec 2012, 09:16


Monday, 17 December 2012 11:01
Ethiopia to supply electricity to 5 East African nations

Five East African countries are expected to become beneficiaries of the Eastern Electricity Highway project which is expected to see these countries using Ethiopia’s surplus electric power for their domestic uses. The five countries expected to be connected in this power pool are the east African economic powerhouse Kenya, Burundi, Tanzania, Uganda and Rwanda. This was revealed at the occasion of the USD 243 million loan agreement signed on December 14 between the Ethiopian government and the World Bank for the financing of a section of Eastern Electricity Highway project connecting Ethiopia’s electrical grid with Kenya. The project is also expected to enable electric power sharing between the two countries so as to reduce energy costs, promote sustainable and renewable power generation as well as paving the way for more dynamic regional cooperation between the countries of Eastern Africa. The WB said the new project marks the first phase of a regional east Africa power integration program which is likely to cost USD 1.3 billion when completed, eventually paving the way to benefit 212 million people living in five countries with a combined Gross Domestic Product of USD 107 billion. Guang Zhe Chen, World Bank country director for Ethiopia disclosed that the bank and the Ethiopian government have reaffirmed the focus on the partnership as the major pillar for financing during the 2013-2016 period, which this project is part of. This particular project has two components, the construction of a high voltage direct current transmission line between Ethiopia and Kenya and project management and capacity. This project is also expected to connect the East African electrical grid, with the Southern Africa electrical grid, as well as the northern Africa electric grid. The bank previously gave Kenya USD 441 million. The 500 Kilo volt Ethio-Kenya transmission line is expected to be about 1200 kms long and cost an extra USD 200 million to reach USD 1.5 billion when the cost for Kenyans to upgrade their power infrastructure to take in this new electrical power and be more efficient is included. Mihret Debebe CEO of Ethiopian Electric Power Corporation (EEPCo) said the Ethio-Kenya electric transmission line project’s economic viability study has already been finished, as well as its technical and financial study. He said the process of hiring a consultancy firm is being finalized and the construction tender is expected to come out probably in the coming May or June with the first phase expected to accommodate 400 MW, and the second phase incorporating other regional countries, set to see Ethiopia’s power supply reach at least 2000 MW. “We expect power export to be a source of a substantial foreign exchange earner, with competitive power export prices,” said Mihret, adding that the construction period is slated to be 36 months. The second phase of power purchase agreement with other regional countries is expected to be done in the future with Tanzania reportedly having already requested power. EEPCO said Kenya will be paid transmission charge or what is commonly known as willing charge agreement; meaning Ethiopia is going to have an independent power export negotiation with third countries. All the electric power projects which are connected to the national grid including the 1870 MW Gibe III hydro electric power project depending on the electric network situation are expected to contribute to the Ethio-Kenya transmission line project. “This particular project could rake in revenues more than our coffee export and as such could be comparable to selling petroleum to neighbouring countries” Mihret told Capital. Mihret further said the Ethio-Sudan transmission line project has entered its fifth week of power testing of 100 MW, with inauguration scheduled in early 2013, and its power export is expected to reach up to 200MW in the future. Ethiopia’s biggest hydro electric power project the 6000 MW Grand Renaissance Dam (GRD), when finished according to EEPCO, is going to have an electrical transmission line stretching to Khartoum and eventually reaching the Egyptian capital Cairo, with its study and design already being finished. “These electric transmission line projects are also a way to create economic leverage, such as with Djibouti which we use for port services and from Sudan which provides petroleum products to us,” said Mihret .



Re: Updates on Business and Economic news, Ethiopia

Postby YEBANDAMERZE » 21 Dec 2012, 09:31


Ethiopian Railways to be completed by 2014
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Addis Ababa, November 30
– Ethiopian Railways Corporation (ERC) revealed details of the Addis Light Rail Project around Adwa and St Abune Petros squares, which were centers of confusion recently.

The detailed design shows the rail route, which commences from Adwa Square, will be an underground tunnel stretching up to two kilometers. �

“As a result, the statue of King Menelik will remain intact,” Dr Getachew Betru, director of ERC, said at a press conference held jointly with other stakeholders on Thursday, November 29, 2012. The corporation plans to complete 42 percent of the total project this budget year, including 80 percent of soil and civil works.



Re: Updates on Business and Economic news, Ethiopia

Postby Shewit » 21 Dec 2012, 10:22


ALL I CAN GENUINELY SAY IS ASK THE LORD FOR MORE BLESSING OF THIS GREAT NATION ETHIOPIA AND ITS PROUD PEOPLE. ETHIOPIANS ARE INHERENTLY GOOD PEOPLE WITH UNMATCHED HISTORY OF SURVIVAL.
I UNDERSTAND THE CHALLENGES WE FACE BY FOES AND BARBARIC FORCES FAR AND NEAR WHO WANT TO PREVENT US FROM MOVING FORWARD. FOR THE TOOLS OF THE COLONIAL FORCES (THE ASKARIS), THEIR HAPPINESS IS FORMED NOT ON WHAT THEY BUILT IN THEIR COUNTRY BUT HOW THEY RUIN WHAT OTHERS CREATE. THAT HAS BEEN THE TENET TO FOMENT HATREDS BY COMING TO OUR FORUMS.
UNDER THE CHALLENGES WE FACE, I ASK MY BELOVED ETHIOPIAN BROTHERS AND SISTERS TO RISE ABOVE THE MEDIOCRE AND SHOW THE TRUE ETHIOPIANESS THAT HAS LONG ENDURED AND FLOURISHED IN SPITE OF THE CONSORTED WORK OF THE BARBARIC ENEMIES.
WE MUST REMEMBER DISPIOTE THE FACT WE HAVE WOUNDS TO HEAL AND DIFFERENCES TO NARROW, WE RISE AND FAIL LIKE ETHIOPIANS.
MUCH LOVE AND RESPECT TO ETHIOPIANS.
EVIL [deleted] HGDFITS GO HOME AND TRY TO SAVE YOUR PEOPLE FROM THE CRUEL TYRANT.


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