Distributors Accuse BGI of Violating Court Order

Apr 1 , 2024


[ssba-buttons]

Around 14 distributors of the pioneering brewery BGI Ethiopia are locked in a legal battle with the company. The crux of the issue lies in a court injunction obtained by the distributors three months ago, which ordered BGI to maintain the existing distribution channels. However, they accuse BGI of breaching the court order and their contracts by assigning new distributors within territories already designated to them. The Association representing 37 companies with six billion Birr investment and 4,000 employees, made the case at the First Instance Court public last week. Sentayhu Gebreselasse, the president, alleges that BGI has disregarded requests from distributors to adjust transportation arrangements. He said that  BGI is calling this a "new strategy" to defy the two-year contracts signed in July 2023. BGI Ethiopia's five-year expansion plan was unveiled a few months ago. The company executives aim to consolidate its four subsidiaries (Meta Abo, Zebidar, Raya, and Castel) under a single entity called BGI and made several changes to realise it. While declining to comment on any ongoing court proceedings, Behailu Ayele, BGI's communication director, disclosed that they have a contractual agreement with individual distributors and are well within their right to readjust and improve sales territory. He said the strategy will bring mutually shared opportunities for all stakeholders. "We are changing our distribution model to increase our market share," he told Fortune.


Radar

Central Bank, Global Alliance Partner to Enhance Sustainable

The National Bank of Ethiopia (NBE) recently hosted a high-level meeting with representatives from the Global Alliance for Banking on Values (GABV) and selected member banks in anticipation of the 17th GABV Annual Meeting scheduled in Uganda. The meeting convened commercial bank representatives from Ethiopia, alongside a delegation comprising six GABV members, including Centenary Bank and Opportunity Bank Uganda, Amalgamated Bank, Sunrise Banks, City First Bank, and Merkur Cooperative Bank. G...


Radar

Commercial Bank of Ethiopia Adjusts Loan Interest Rates Amid Market Reforms

Commercial Bank of Ethiopia (CBE) has announced adjustments to its loan interest rates, effective March 7, 2025. Bank executives cited rising deposit mobilisation costs and the need to align with market standards as key factors influencing the decision, despite successful internal reforms that have reduced operational expenses. Executives noted that these adjustments are crucial for maintaining its competitive edge and ensuring the continued delivery of efficient services to its clientele. ...


Radar

Chemical Corp Posts Substantial Revenue, Profit Growth in 1Q

The state-owned Chemical Industry Corporation recorded a revenue of 2.53 billion Br in the first half of the 2024/2025 financial year. The Corporation reported a profit before tax of over half a billion Birr, which marks a considerable 182.6pc increase compared to the same period last year. Company officials attributed the growth result to enhanced market reach, effective cost-cutting measures, and optimisation of plant capacity utilisation. Year-on-year revenue growth was noted across variou...