Life Matters | Oct 10,2020
The top five companies holding the highest portfolios of non-performing loans at the Development Bank of Ethiopia (DBE) are all Turkish owned. Together with one other Turkish company, six foreign companies owe the Development Bank an aggregate of 8.7 billion Br in non-performing loans.
BMET Energy, Telecom Industry & Trade Plc
These companies have failed to service their debts, and the Bank has repossessed the plants of three companies already, including the recently defaulted Ayka Addis. Turkish owners have abandoned six other companies. Desperate to survive, some of the remaining companies established with Turkish investment are braving the odds, by reaching outside their core competence to produce raw materials to keep their plants running.
Ayka Addis Textile & Investment Group
The current situation is a far cry from the jubilation and enthusiasm that greeted Turkish investors when they first started to come to the country a decade and a half ago. No less than 244 Turkish companies have entered Ethiopia's market since 2013, while currently 95 Turkish-owned companies, employing an aggregate of over 21,000 people, soldier on. The cause for the hardship has been pegged on the usual suspects - forex crunch, poor infrastructure, shortage of raw materials and a lack of a skilled labour force – the same challenges that face companies that operate in Ethiopia. But the authorities, as well as experts, say that the Turkish companies have a major shortcoming - mismanagement.
MNS Manufacturing Plc
"Most of the companies have management problems," said Abebe Abebayehu, chief of the Ethiopian Investment Commission (EIC). Due diligence and project evaluations, as well as feasibility studies, were not properly carried out by government agencies when these companies started investing here, according to Abebe.
Experts suggest that preparing more competent contracts, audits and prior vetting of the competence and qualifications of the management teams of investing companies will go a long way in avoiding these pitfalls and the dilemma investors face in Ethiopia.
You can read the full story here
PUBLISHED ON
Feb 16,2019 [ VOL
19 , NO
981]
Life Matters | Oct 10,2020
Fortune News | Nov 12,2022
Fortune News | Nov 07,2020
Life Matters | Jun 27,2020
Life Matters | May 13,2023
Viewpoints | Jun 05,2021
My Opinion | Jan 04,2020
Fortune News | Dec 19,2021
Agenda | May 21,2022
Fortune News | Dec 03,2022
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...
At the hub of Ethiopia's fiscal planning on King George VI Street, the country's budg...
May 27 , 2023
Tauted as a somnolent giant, Ethiopia's financial scene now stirs, roused by favourab...
May 20 , 2023
The pungent irony wafting from Pretoria last week was hard to miss. Cyril Ramaphosa,...
May 13 , 2023
In March this year, Kamala Harris, the United States Vice President, visited Ghana, T...
Loading your updates...