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STORY HIGHLIGHTS

• 1.8 bln Birr Commercial farming
• 8 bln Birr two cement factories
• 1.1 bln Birr Cattle, poultry farm
• 1.4 bln Birr Real Estate
• 1.3 bln Birr marble processing factory
• 990 mil Birr Flower farms
• Processing a loan for 1.5 Billion USD from unnamed foreign bank

Total 14.5 Billion Birr (~1.6 Billion USD)

Ethiopia - Ethio-American venture embarks on massive investment

By Andualem Sisay

Capital

Addis Ababa, Ethiopia - Sunrise Industrial activities, Construction and Trading Services Ethiopia Plc. has announced it is embarking on six projects worth a combined 15 billion ETB. The investment is a joint venture project between Ethiopians Tamene Getachew, Dawit Wedajo and Berhane Abeba and two American partners and is to engage in various agri-business related activities throughout Ethiopia, creating over 40,000 permanent and part-time jobs. Sunrise Plc. has secured over 75 percent of the land its projects require.

Commercial farming of fruits, vegetables, oilseeds, pulses, coffee and grains is among the six investment projects of the venture and valued at some 1.8 billion birr. The plantations will be established on 50,000 hectares in five areas in Oromia and Southern Nations regions.

For its second project, the joint venture has secured sites for two cement factories each capitalized at 4 billion birr. Called Ejere and Minare and located 100 km west of Addis Ababa, the cement factories will each have a production capacity of 5,000 tons per day. The two sites were chosen because of their proximity to areas rich in raw materials for cement such as limestone, clay and gypsum, according to Tamene.

A 1.1 billion birr investment in cattle fattening, poultry, dairy farming, and meat processing and packing on 100 hectares is the third investment that the joint venture will be launching.

Real-estate development is also another area that Sunrise has obtained an investment license for and will spend around 1.4 billion birr in Burayu area, some 20 kms from Addis Ababa city center.

Establishment of four marble processing factories with 1.3 billion birr capital at four sites, each near quarries, in Benishangul Gumz and Oromia regions is also another investment of the joint venture. The factories will be established in Nekemt, Mendi, Ambo and Asabe Teferi (Chiro) - on 60 hectares for each plant.

A 990 million birr capital investment on flower farms is the final project and will be established in Holeta and Ginchi on 300 and 150 hectares of land respectively.

The joint venture is currently processing the first phase of a loan of 1.5 billion USD from a foreign bank at an interest rate of 2.5 per cent. "If we had tried to get the loan from local banks, we would not have been able to get half of this sum from all the banks in the country. Besides, the interest would have risen to 9 per cent at a minimum," says Tamene, explaining why they chose to get loans from non-Ethiopian banks.

Thanking the Oromia Region and the Ministry of Trade and Industry, for all the support they have been providing them, he calls on all concerned to develop the culture of working in partnership by mobilizing what they have with what others have, for the betterment of their personal lives as well as that of their nations.

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