East African Holding, one of industrial conglomerates in Ethiopia known for its investments in manufacturing of consumer goods, has moved to real estate development by launching construction of 600 houses in the capital, Addis Ababa.
This is indicated by Buzuayehu Tadele Bizenu, Board Chairman of East African Holding, whose Ethiopian New Year message is aired on the state broadcaster, ETV on Monday evening. “We have completed the design work and began construction of the houses. We have started construction of 600 to 800 houses and we expect to complete partly some of them by next year (Between September 2020 to July 2021),” he said.
“During the second phase of our project, we have plan to build commercial real estates including big shopping malls,” he said. East African Holding has paid 700 million birr tax during the Ethiopian budget year concluded July 7, 2020. In addition in the form salary and related payments, the Holding has spent 500 million birr, according to Mr. Buzuayehu. The company has attracted $17 million dollar foreign direct investment for two of its investments.
Last year East African Holding’s National Cement factor has produced over 1.2 million tons of cement last year. Most of the cement products are sold in domestic market though the Company was planning to export. “…Meanwhile, we managed to succeed somehow by earning some five million dollars last year,” he said.
He indicated that currently study ongoing to boost the production of National Cement Factory located in Dire Dawa City its currently 3,000 tons per day production capacity by 30 percent. “We are planning to start implementing this plan and start producing 4,000 tons of cement per day within the coming six months,” Mr. Buzuayehu said.
In addition, the East Africa Holding is working to venture with financially capable foreign investors and open a new cement factory, which can produce 5,000 to 8,000 tons of cement per day for both domestic and foreign market, according to Buzuayehu.
He indicated that the project will move to implementation phase during the third quarter of Ethiopia’s New Year, which will begin this weekend.
Currently Ethiopia is facing shortage of cement. The Government of Ethiopia is forced to allow importing of cement recently after the price in the market doubled because most cement factories were unable to produce using their full potential.
East Africa Industrial Park
Next year, in collaboration with investors from Europe and the United Sates, East Africa Holding is also planning to redesign its industrial park found in Bishoft Town in Oromia Region of Ethiopia located some 40 kilometres from Addis Ababa.
“The design is done with highly skilled professionals and the investment will be implemented in two phases. The first phase requires $35 million and the second phase needs $70 million,” he said, indicating that if all went well as planned, the new industrial park will create 10,000 to 15,000 jobs.
In relation to discharging corporate social responsibility, East African Holding been engaged in health, sanitation and fed 10,000 people daily for three months. Indicating peace and job creation are critical for Ethiopia, Mr. Buzuayehu concludes his 2013 Ethiopian New year message on ETV.
The investments of decades old Ethiopian family owned East African Holding portfolio ranges from cosmetics production, construction inputs, to edible oil and beverages.