africa juice logoWith global demand for tropical juices on the rise, in 2009 africaJUICE Tibila Share Company, a joint venture between africaJUICE BV of the Netherlands and the Ethiopian government, took operational control of Tibila Farm in Ethiopia’s Upper Awash Valley and started producing passion fruit, mangoes, papayas, and other tropical fruits. In addition to rehabilitating and expanding the newly acquired farm, africaJUICE has built a new fruit-processing facility with state-of-the-art processing, sterilization, and packaging equipment. The processed juice is exported through the port in neighboring Djibouti to markets in Europe and the Middle East. The company directly employs 2,400 people.

Source: VC4Africa; MIGA, “Tropical Fruit Juice Project Helping to Spur Economic Revival in Ethiopia”, April 18, 2011.

Castel Winery logo

As the third largest wine producer in the world and the second largest beer and soft drinks business in Africa, Castel Group was committed to establishing Castel Winery in Ethiopia. The idea was born during a discussion between the late Ethiopian Prime Minister Meles Zenawi  and  Mr. Pierre Castel, founder and President of the Castel Group and BGI International.

Right after the agreement in 2007 Castel Group sent the top experts and consultants in the wine business from France to select the most suitable area for a vineyard that could meet Castel Family’s strict three-generations-old quality winemaking standards and criteria. After a thorough investigation by the panel of experts, the town of Ziway, in the Oromia Regional State (located 163 kilometers from the capital Addis Ababa) was selected.

Ziway, situated 1,600 meter above sea level, with sub-humid to semi-arid climate, sandy loam type of soil, a mean annual precipitation of 650 to 700 mm, and an all year average temperature of 25 degrees centigrade was deemed suitable for the grape varieties.

Plantation of all grape varieties imported directly from Bordeaux, France, lasted until the beginning of 2009. While the grapes were maturing in the vineyard, construction of the state-of-the art winery went underway and was completed in less than a year. After six breathtaking years of investment with due commitment, Castel Winery PLC has invested around 540 million Br and generated employment for more than 800 permanent and casual workers. The first wine bottling commenced in January 2014 and sales of its first batch of products started in the aftermath of the inauguration, on March 22, 2014.

Castel winery PLC produces standard wines (Acacia brand) and premium wines (Rift valley and Cuvee prestige brands), targeting both local and foreign markets. Castel winery PLC is indebted to the Ethiopian Government in general and to the Ethiopian Investment Commission in particular for the support provided that ranged from availing land which was previously owned by a public horticulture enterprise, to securing duty free privilege in importing agricultural and winery machinery and equipment, to securing an income tax holiday.

esmeralda logoEsmeralda Farms bought close to 150 hectares and started its flower growing activity in Ethiopia in early 2014. The company plans to grow summer flowers and some roses. Esmeralda farms headquarters are based in Miami, Florida. It has a 265 hectares flower producing area in Ecuador and is active throughout Latin America, in Peru, Colombia, Costa Rica, and Mexico. The move to Africa is due to the increasing production costs in Ecuador.

Source: International Trade Center, “Esmeralda Farms Starts Production in Ethiopia”, November 13, 2013

herburg logoHerburg Roses, a Dutch owned grower, recognized back in 2006 the opportunity to expand their business by relocating to Ethiopia. At that time, floriculture was in the very early stages of development in Ethiopia, but the conditions for growing roses were perfect, with year-round warmth and great light, and a large and enthusiastic workforce. Initially the business took on 18 hectares on the prestigious Sher Project in Ethiopia, and over the years has expanded to 40 hectares with more planned for the future. Herburg Roses has recently become Fairtrade certified and is exporting 22 types of flowers to the European market.

Source: www.aldi.co.uk

HuajianOne of the largest shoe exporters in China – Huajian – set up a factory in Ethiopia in 2011, as part of a plan to invest US$2 billion over 10 years in developing manufacturing clusters focused on shoemaking for export. The company produces shoes for brands such as Guess and Calvin Klein, and hopes to see its exports from Ethiopia reach US$4 billion within ten years.

Source: Deloitte, “Ethiopia, a Growth Miracle,” 2014; Centre for Economic Policy Research, “PEDL Research Note: The Role of Foreign Investment in Ethiopia’s Leather Value Chain”, 2013

Ayka logoAyka Addis, the Ethiopian subsidiary of the Turkish textile giant Ayka Textile, inaugurated in 2010 its factory at a cost of US$140 million at Alemgena, 20km west of Addis Ababa, creating jobs for more than 10,000 people. Ayka Addis has the capacity to export textile products worth US$100 million a year per annum.

Source: All Africa, “Ethiopia: 50 Turkish Textile Factories to Relocate in Ethiopia”, 2 August 2013.

otto kesslerOtto Kessler, a German company specializing in the production of top quality leather gloves for fashion brands, department store chains, select catalogue companies, and military & police authorities in Europe, North America, and Japan established a leather processing plant in Gondar, within the Amhara Region.

tesco logoTesco PLC and the British arm of Wal-Mart Stores Inc. are also buying clothing from Ethiopian manufacturing plants.walmart logo

Hong Kong’s New Wing Group is a smaller firm producing women’s shoes for American and European markets. New Wing sources most of its leather from Ethiopia and plans to establish its own tannery for refining processing.

Source: Centre for Economic Policy Research, “PEDL Research Note: The Role of Foreign Investment in Ethiopia’s Leather Value Chain”, 2013

HetM logoH&M established its office in Addis Ababa in 2012, and has been buying clothing from a number of Ethiopian manufacturers since then.

Source: The wall Street Journal, “H&M Looks to Source Clothing from Ethiopia”, August 15, 2013

hirokiThe Japanese manufacturer Hiroki Co. Ltd is setting up a US$400,000 manufacturing operation in Ethiopia, where it will produce shoes and other luxury accessories made from leather. Hiroki is already training Ethiopian workers at its Chinese plant, and has brought experts from Japan to train the rest of the staff in Ethiopia.

"We decided to open a factory in Ethiopia because of the availability of quality leather raw material," said Youngil Song, president of Hiroki Addis. "It is one of the finest leather in the world."

Source: Leather International, “Japanese manufacturer in Ethiopia”, 5 February 2014; Deloitte, “Ethiopia, a Growth Miracle,” 2014