Textile Company Set to Launch Under New Ownership

Aug 12 , 2023


[ssba-buttons]

The sprawling textile manufacturing company formerly known as Ayka Addis is set to begin production under the new banner Buluko Integrated Textile Factory following its purchase by the Oromia Public Enterprise for 1.82 billion Br six months ago. Located 20Km west of Addis Abeba, in Alemgena, Oromia Regional State, the textile factory is set to restart a four-year halt resulting from defaulted loans of two billion Birr owed to the Development Bank of Ethiopia (DBE). The state-owned policy bank had been paying salaries to 4,300 Ayka Addis employees during the period despite seizing production. Senior officials from the Ministry of Industry visited the factory last week, pledging to support the company as it vyes to increase its employee base and begin production. AYKA was initially established in 2006 by three Turkish shareholders with 679 million Br paid-up capital and began operations in 2010 following a subsequent loan by DBE of 813 million Br. The Oromia Public Enterprise has 56 companies under its fleet and has plans to transfer completer ownership to the private sector in the long run. Declining textile exports due to Ethiopia's expulsion from the Africa Growth and Opportunity Act (AGOA) in 2021 led to the termination of operations by several large firms like Philips-Van Heusen Corporation (PVH Corp). Over 90pc of exports from industrial parks have been textile and garment products, luring foreign companies with a labour market that has the lowest wages.


Radar

AMG Holdings Breaks Ground on Industrial Rail Link to Ethio-Djibouti Railway

AMG Holdings has launched construction on a 2.5-kilometer railway connecting its Sheger Industrial Park to the Ethio-Djibouti Railway's Endode Station. The Ethiopian-led project comprises 1.7 Kms of main track and 800 meters of side rail. Chief Project Manager Engineer Nigist Hailu said the line is expected to be completed within six months, facilitating the transport of raw materials and finished goods to Djibouti's port. More than 100 local workers have already joined the project, with addi...


Radar

Ethiopian Deposit Insurance Fund Achieves Full Q1 Collection Target

The Ethiopian Deposit Insurance Fund collected 2.08 billion Br in the first quarter of 2025. This meets 100 percent of the target and represents a 26.83 percent increase compared with the same period last year. The rise in premiums was attributed to higher deposits from member financial institutions. To date, the fund has collected a total of 15.93 billion Br in premiums from member institutions, with 14.51 billion Br coming from regular deposits and 1.42 billion Br from interest-free depo...


Radar

Oromia Bank, Ethiopian Airlines Introduce Fly Now, Pay Later via Milkii Digital App

Oromia Bank's Milkii Digital App, launched on May 3, 2025, has introduced a “Fly Now, Pay Later” service that lets customers book Ethiopian Airlines tickets using digital loans, with payments spread over six months after travel with 16.5 interest rate and allows customers to book flights upto 300,000 Br. Developed in collaboration with Ethiopian Airlines, the platform is part of a broader effort to expand digital finance and simplify access to services. The initiative seeks to enhance conven...