Radar | Nov 14,2020
Sep 8 , 2019
By YOSEPH MERGU ( FORTUNE STAFF WRITER )
The Ethiopian Olympic Committee is stepping into a profit-making business by constructing a water bottling and juice processing plant at Chacha, Amhara Regional State.
The Committee is investing 97 million Br for the plant that is located in North Shewa Zone, Angolalla Tera Woreda, which is located 100Km from Addis Abeba. The Committee secured five hectares of land on a 60-year lease agreement for 10 million Br. It paid one million Birr as a down payment, and the remaining will be paid over the coming 40 years.
Initially planning to set up the plant in Dima Woreda of the Oromia Regional State, the Committee switched the plan to Amhara Regional State due to a late response from the former regional state, according to Tibebu Gorfu, assistant project coordinator of the plant.
For the people who will be relocating from the land for the project, the Committee has paid 2.8 million Br through Amhara Credit & Saving Institution.
Amhara Waterworks Construction Enterprise has already finished the water drilling process within a month before the Committee imported machines and hired employees to construct the plant. The plant, dubbed the Ethiopia Olympic Committee Bottled Water & Juice Factory, will be the 86th water bottling plant when it becomes operational next year.
While the Olympic committee will cover 30pc of the cost, the balance is expected to be covered by the Ethiopian government and some sports partners from abroad, according to Tibebu.
“Finding the right partners on time is the challenge that we anticipate facing,” he said.
The Committee sources income from renting buildings, membership fees, and promotions, as well as the Adidas Company and the government. The Committee and Adidas have an agreement for promotions.
The plant is not the only water bottler and beverage plant in Chacha Wereda. Alpha Mineral Water, Komari Liquor, owned by European investors, Wub Water, as well as Habesha and Dashen breweries, have invested in the area and Debre Berhan.
The water bottling and the juice processing plant is part of the many projects planned by the Committee to generate revenue, according to Tibebu.
A five-star hotel, a warehouse and sports centres are among the projects that are planned by the Committee. For the construction of the five-star hotel, the Committee has secured a 13,739Sqm of land around the Riche area.
To penetrate the market, the Committee plans to pack the water in a glass bottle and supply the water to consumers in the sports community.
Getie Andualem (PhD), a lecturer at Addis Abeba University's College of Business & Economics, is cautions the company to closely look into the industry before starting production.
"These days there are financial constraints on businesses to produce at their full capacity," said Getie, "so the Committee should check if other water bottling companies in the country are producing at full capacity or not."
PUBLISHED ON Sep 08,2019 [ VOL 20 , NO 1011]
Radar | Nov 14,2020
Agenda | Oct 26,2019
Radar | Jun 18,2022
Fortune News | Mar 20,2021
Viewpoints | Feb 12,2022
Fortune News | Sep 14,2019
Radar | Jun 08,2019
Fortune News | Aug 10,2019
Radar | Jul 17,2022
Fortune News | Apr 09,2022
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Mar 18 , 2023
Ethiopia's economy once hailed as a paragon of growth and development, now faces a co...
Mar 11 , 2023
Ethiopia is rapidly emerging as one of China's top African debtors, second only to An...
Mar 4 , 2023
Once again, Ethiopia has claimed international attention in the past few weeks for re...
Feb 25 , 2023
Millions of people in Ethiopia have continued to be deprived of access to information...
I met Solomon Desta a couple of years ago. He lives and works in a religious institu...
A comedian made a joke about how citizens' wishes are not granted but rather what government thinks is ou...
Or see contact page