The MIDROC Ethiopia Group Corporate Magazine

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October 2012Free Copy

Special Edition

Prime MinisterAto Meles Zenawi

TIRET Special Edition October 2012

CONTENTSTIRET means “EFFORT” in Amharic and is a Corporate Magazine of MIDROC Ethiopia Investment Group.

paTRonTeklu Haile

EdIToRIal boaRdTadelle Teferra (Chairman)Melaku BezaBrook DebebeJohannes Kinfu (Emer. Professor)Asrat BulbulaYeshimebet DemissieAselefech Getachew

managIng EdIToRAselefech Getachew

SECRETaRIal SERVICEHaimanot Negussie & Martha Kassahun

pHoTogRapHYDegife Tekle, Tadesse Demissie,Kibrealem Yalew pUblISHEd bYThe Communication & Public Relations Department of MIDROC EthiopiaTel: +251 11 554 99 69Fax:+251 11 554 99 55 P.O.Box: 8677mid.pr@ethionet.et, mid.pr12@gmail.com www.midroc-ethiopia.com.et

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Tel: +251 913 13 63 76/62 42 76

CopYRIgHTOctober 2012MIDROC EthiopiaAll rights reserved. Reproduction in part and or whole is allowed with a written authorization of the Publisher.

mIdRoCMohammed InternatioalDevelopment Research & Organisation Companies.

Forced to let go meles

Chairman’s message

Foreword

overview

Condolences

agriculture Sector

Construction Sector

Health Sector

manufacturing Sector

mining Sector

Tourism & Hospitality Sector

Training Sector

Transport Sector

mIdRoC Ethiopia Technology group

Illustrative Stories

View points from Financers and Insurers of mIdRoC Ethiopia

Condolences

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Forced to let go Meles

Were a star quenched on highFor ages would its light

Still traveling downward from the skyShine on our mental sight

So when a great man diesFor years beyond our ken

The light he leaves behind him liesUpon the paths of men

We are forced to let go MelesMay your soul rest in peace !

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Chairman’s message

In my life time, there is nothing more than I would like to see Ethiopia being well developed and prosperous, her citizens free from poverty and enjoy human fulfillment.

It is my hope that we can virtually achieve these, if we practice a clear mutuality of interest among private enterprises, government and all citizens to work together for a common goal.

When I started investing in Ethiopia twenty years ago, I was faced with various challenges and opportunities. With patience and hard work, MIDROC Ethiopia can look back with pride for its achievements in almost all sectors of the Ethiopian economy.

This is where the late Prime Minister, H.E. Ato Meles Zenawi, enhanced my heartfelt contribution as a worthy Development Partner.

I believe that the future of Ethiopia is more important to us than ever before and by joining hands with government, other private sector operators and concerned citizens, MIDROC Ethiopia is determined to play a meaningful role in achieving the Government’s Growth and Transformation Program, the midwife of which is the Late Prime Minister, and also beyond, for the development of Ethiopia’s future.

I am deeply sorry for the loss of the late Prime Minister Meles Zenawi and his passing away is a great tragedy for all of us. May he rest in peace.

I have set ambitious goals for a sustainable development of Ethiopia through my Group Companies and thus plan to expand investment activities in sectors where the potential of our country’s natural resources are sustainably exploitable. The synergy of employment generation for Ethiopians and wealth creation in the Country is my driving force. My investment activities will also introduce transfer of newer technologies which will greatly benefit the nation to attain international competitiveness. My Investment Group Companies and all those working in the Companies believe and are determined that by working with the government, other private operators and citizens, we will make a change and a difference to our country.

May the Blessing of the Almighty be on all of us to achieve this noble task.

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Foreword

Like the entire nation, the dreadful and shocking news of the death of Prime Minister H.E Ato Meles Zenawi, was received with shock, despondency, and misbelieve by the entire MIDROC Ethiopia Investment Group. Some had to ensure whether what they have heard in the news was real or phantasy, fact or fiction. Later on, after the return of the heart beat and adrenaline pump, it was followed by deep grief, sorrow, and stressful depression.

Individuals, groups, private or public organizations in Ethiopia, or for that matter in Africa and the world have gone through several phases of feelings and emotions learning about the death of the Prime Minister of Ethiopia, H.E. Ato Meles Zenawi.

MIDROC Ethiopia once again through, Sheikh Mohammed H. Al-Amoudi, stress the unwavering continued commitment and endeavor for development, and carrying on what has been started. Thus, MIDROC Ethiopia took upon itself to reassure and confirm their activities with more vigor and determination and ensure that the productivity and growth of their Companies is continuous in line with the concept and practice of “developmentalism” to create “development entrepreneurs” like Sheikh Mohammed H. Al-Amoudi and attain the dreams of seeing this country out of poverty.

It may be worthwhile to consider how little did people in Ethiopia or in Africa and the world know or appreciate the late PM’s capacity for in depth “thinking”, and his potentiality for “intellectual discourse”. Had he not occupied a political position, he would have been recognized as an authority on “development theory”, which was of course recognized lately by the international community. It is only now that people are realizing how much he has done, how much he must have sacrificed, how much he must have suffered burning the “mid-night oil” of his life day and night. How little did Ethiopia know him?

It is regrettable that statements he made and phrases he coined on various occasions were perhaps popularized as “political rhetoric”, than wisdom (principles) arising from a deep well of intellectual thinking on poverty, injustices, poor governance, world economic disorder and corruption.

It is in this turbulence that MIDROC Ethiopia decided to have a special issue of TIRET as a tribute to the Late Prime Minister for recognizing Sheikh Mohammed H. Al-Amoudi’s Investment Group as “developmentalistic” in character, and model of “development entrepreneurship” operating in line with the context of the nation’s economic and social policy. Thus, this publication attempts to display in brief the role and program of activities in the various sectors of MIDROC Ethiopia.

This issue of TIRET is a tribute to the Late Prime Minister Meles Zenawi’s support and encouragement to Sheikh Mohammed H. Al-Amoudi’s developmental investments, and a recommitment, re-affirmation, and assertion to continue the “developmentalistic” trend declared by the government policy and work even harder for a better future of Ethiopia.

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overview

MIDROC Ethiopia has made huge capital outlays stretching in almost all economic sectors of Ethiopia. The primary driving force for Sheikh Mohammed H. Al-Amoudi’s decision to invest in Ethiopia has been his soft-hearted response to the call of his motherland. Such investment would also contribute to the national economy in terms of employment generation, tax incomes and foreign exchange earnings or savings. MIDROC Ethiopia has tightly associated itself as a pioneer Development Partner and has acted as a pulling force for the flow of Foreign Direct Investment (FDI).

The encouraging environment created by the Ethiopian Government has been an added motivating incentive to MIDROC Ethiopia.

The Ethiopian Government led by the late Prime Minister, H.E. Ato Meles Zenawi, has expressed its appreciation to MIDROC Ethiopia and its mentor-owner Sheikh Mohammed H. Al-Amoudi on different national occasions in recognition of his vast investment activities and his unwavering contribution and commitment to the development of Ethiopia.

As MIDROC Ethiopia is engaged in almost all sectors of the national economy, it has brought about environmentally acceptable and sustainable commercial farms catering to export commodities such as coffee, tea, rice, spices, vegetables and flowers. It is also involved in the production of food cereal crops such as maize, wheat and rice for the domestic market in its large agriculture and agro industry activities. In the agro-industry area, it is involved in the production of dairy, poultry & meat products and state-of-the art food complex. Significantly large scale commercial farms were either acquired from the Ethiopian Privatization Agency through competitive bidding or new ones are being developed to supply local industries with necessary inputs. These include oil palm plantation, cotton, oil seeds, sugar beet etc. Currently rubber plantation is also under consideration.

In the construction area, MIDROC Ethiopia has had very significant participation. It has constructed land mark buildings both in Addis Ababa and various Regions such as Nani and the African Union Building and huge office complexes, convention centers, referral hospitals, historical monuments and modern airport terminals. It has introduced a specialized foundation technology into the national construction sector which for example addressed, among others, the foundation works of the Abay Bridge, Omo Bridge, the 22 storey Nani Building, and many others. It has also a specialized electro-mechanical servicing company.

With respect to construction materials, MIDROC Ethiopia has made a turn-around in the chronic cement shortage by establishing the biggest cement plant in the country. Likewise, it is undertaking the biggest steel fabrication complex. These are, in addition, to various facilities of modest contribution to the construction materials supply of manufacturing and marketing of high quality particle wood products (chipwood) used for various applications in the local and export market and also the production of coatings, dimension stones, steel products and special poles that contribute to the growth of the construction sector.

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In the health sector, the MIDROC Ethiopia has established a pharmaceutical formulation complex (now IV fluids) and a specialized hospital is under implementation. In addition to the physical facilities, it is involved in the development of health professionals. It has also been a national pioneer in addressing the HIV/AIDS issue in all its investment establishments with an advocacy component on a national level.

In the area of manufacturing, the MIDROC Ethiopia is very much in line with the government program; responding to the national call for the export sector, especially the leather and textile (including jeans). While the Investment Group is playing a major role in these sectors, it is also dealing with other manufacturing areas. MIDROC Ethiopia has a number of plants supplying consumer products for the domestic market, like, soft drinks, soap & detergents & specialty paper products, plastic bags, etc. It has also established state-of-the-art packaging materials factory to cater for the packaging of export commodities such as flowers and vegetables. It is at present undertaking to establish a cable manufacturing facility and vegetable oil plant.

MIDROC Ethiopia has made big strides in prospecting, exploration and exploitation of minerals especially in gold and other precious and base metals and dimension stones. As a matter of fact, the export of minerals (mainly

gold) has taken up the number two position following coffee. The recent finding of gold reserves would put Ethiopia on the gold map of the world.

Its pioneering efforts in the sector have attracted a number of foreign investors thus enhancing the FDI flows. MIDROC Ethiopia is investing in the mining sector, not only taking the GTP into account, but beyond the GTP, as it is the nature of the business.

While it is investing in the various productive sectors, the MIDROC Ethiopia has also recognized the critical need of human resources development at all levels; and thus has a focused approach to address this issue.

The transport sector and associated establishments are other business areas being nurtured by MIDROC Ethiopia. In addition, air and surface transport, automotive and construction equipment importing companies have also been established.

The hospitality industry, including the luxury hotels collection and catering services are also strategically linked to the transport services industry.

MIDROC Ethiopia is one-in-all and all-in-one when it comes to the economic development of Ethiopia.

Sheikh Mohammed H. Al-Amoudi visiting Horiculture farm at Holeta

Sheikh Mohammed H. Al-Amoudi visiting visiting one of the construction sites

Condolence with Poem

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During the last twenty years, MIDROC Ethiopia has been given the necessary support and encouragement by the Government of Ethiopia to be a true development partner. The journey of MIDROC Ethiopia in the last twenty years attests to this fact. We recognize the personal support given to investors including the MIDROC Ethiopia and the encouragement of the late Prime Minister, H.E. Ato Meles Zenawi, to aim high and be a true developer in the various economic sectors. His untimely death was indeed a shock and a big loss to Ethiopia, Africa and the world. MIDROC Ethiopia with the unfaltering commitment of our Chairman, Sheikh Mohammed H. Al-Amoudi, is committed to contribute to the vision and aspiration of our late Prime Minister by seamlessly continuing the development endeavors during the GTP and beyond.

May his soul rest in peace.

Teklu HaileDesignateMIDROC Ethiopia

Indeed the death of the Prime Minister is a great loss to our Country and the Ethiopian People. The Prime Minister and his government have created an enabling environment for private business to flourish and highly supported the growth of foreign direct investment. The MIDROC Ethiopia Technology Group has immensely benefited out of these conducive enabling environment and all rounded support. The MIDROC Ethiopia Technology Group seizes this opportunity to reaffirm its commitment and active participation in the ongoing transformation and growth of our country following the foot steps of the late Prime Minister.

May his soul rest in peace.

Dr. Arega YirdawCEO MIDROC EthiopiaTechnology Group

Condolences

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agriculture and agro-Industry Sector

The Ethiopian Government had embarked upon long term development strategy to bring our great nation from the abject poverty it was buried in with a series of five-year-growth programs.

The government had committed itself to promote the agricultural sector following the National Agricultural Development Led Industrialization Strategy (ADLI) of the country and based on the experiences gained in the last few years. Accordingly in the current period of the GTP, agriculture still continues to play the leading role laying out the foundation for industrial development, which will take up the lead in the next phase. As a result, on top of availing modern production technologies and inputs to small scale farmers that contribute the major share to the national agricultural production, private investors involved in the production of export commodities and/or raw

It is a well known fact that the backbone of the Ethiopian economy is agriculture. The Ethiopian government led by the late Prime Minister Meles Zenawi drew a road map, the Agricultural Development Led Industrialization (ADLI). Having noted this opportunity, MIDROC Ethiopia through its mentor-owner Sheikh Mohammed H. Al-Amoudi, entered into big investments in agriculture and agro-industry areas. MIDROC Ethiopia in general is engaged in the production of important export commodities such as coffee, tea, spices, oil seeds and rice. Its contribution towards food crop production such as maize, wheat and rice and inputs for local industries are of notable significance. This investment dynamism will continue in the GTP period and beyond.

materials for local industries are also given top priority.

With regard to large scale commercial farms, the forefront player is the Chairman and Owner of MIDROC Ethiopia, Sheikh Mohammed H. Al-Amoudi

Coffee Picking at Gemadro

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agriculture and agro-Industry SectorThese commercial farms are involved in the production of export commodities such as coffee, tea, oil seeds, vegetables and flower. In order to contribute to the alleviation of the chronic food shortage, there are commercial farms producing cereal crops like maize, wheat and rice. Not only is MIDROC Ethiopia opening up new strategic farms and Agro-Industries, it is also acquiring a number of state-owned enterprises through competitive bidding. Most of these state owned enterprises; farms and agro processing industries, were stagnant in the past due to lack of required investment capital and technological support. Accordingly, Sheikh Mohammed H. Al-Amoudi had allotted considerable capital to upgrade their status and make them more productive and profitable. Moreover, to exploit the prevailing environmental potentials of the stated areas, the Companies are directed to introduce state-of-the-art technology by investing the required capital and through recruiting outstanding experts including expatriate staff.

On top of these, MIDROC Ethiopia is also highly committed to make strategic interventions through ambitious projects for the production of cooking oil, alfalfa, sugar beet and oil palm trees.

All along these investment endeavors and associated achievements, the role played by our late Prime Minister was so immense and decisive that in some of the cases, the investment ideas were only realized due to his personal encouragement and insistence.

Various agricultural products

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Construction and Construction materials Sector

Over the last two decades, construction had played a very significant role in the Ethiopian Economy. In addition to constructing various land mark infrastructure, MIDROC Ethiopia has alleviated the chronic shortage of cement supply by establishing the biggest cement plant in the country. This was achieved by the hand & glove like cooperation between the Ethiopian Government led by the late Prime Minister, H.E. Ato Meles Zenawi and the Mentor-Owner of MIDROC Ethiopia, Sheikh Mohammed H. Al-Amoudi. This partnership will continue in a more strengthened manner to contribute to the realization of the GTP and beyond.

The year 1993 in which MIDROC Construction Plc was established, saw the dawn of modern construction in Ethiopia. It kicked off with the construction of the Sheraton Addis Hotel, the only one of its kind in Ethiopia. Expatriate engineers and building professionals from many parts of the world were employed for the construction of this hotel. This paved the way for the transfer of modern construction technology in Ethiopia. One can say that the year was also the beginning of the numerous development strategies laid out by the Federal Government in various economic sectors.

Among the major projects undertaken in Addis Ababa are the Sheraton Addis Hotel, the 22 storey Nani Building near Meskel Square, the 10 storey building of the Federal Police Head Quarter at Mexico Square, the 16-storey high rise building of the future Dashen Bank head office, currently at a finishing stage, and the Ethiopian Airlines cargo terminal in Bole International Airport. These are but very few of the projects worthy of mention.

Shiekh Mohammed H. Al-Amoudi visiting the Derba Cement Factory along with the executives

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Construction and Construction materials Sector

The Company’s service is not limited only to Addis Ababa but also extends to various regional states. Among the big jobs performed in regional states are the Mekelle Referral Hospital Building in Mekelle, the Amhara Martyrs’ Monument in Bahir Dar, the Hawasa University’s facility building, dormitories and convention halls in Hawasa, the Oromo Martyrs’ Monument, The Oromiya Geda & Office Complex, the Supreme Court and Convention Halls in Adama. These are few of the standing testimonies for MIDROC Construction Plc’s competence to handle complex and quality projects.

It is also to be noted that a specialized foundation technology was introduced into the Ethiopian construction industry through the establishment of a specialized company. This foundation technology has been applied on tall building such as Nani, the Abay (Hidase) Bridge, Bole International Terminal Building, Bole Via Duct (Ring Road), Omo Bridge, Allana Potash (Dallol), and various demanding foundation works.

Noting the critical input nature of cement in the construction industry, two plants with a total investment cost of Birr 7 billion were built and made operational to meet the cement needs of public works, infrastructure as well as home building by private citizens. One of the plants, represents a turnaround, in cement production in Ethiopia as it aroused the industry from an inactive and dormant state. With a production capacity of 8000 tons of cement per day,

Derba MIDROC Cement, DMC, is the largest, in terms of capacity and production, and the most environmentally friendly cement plant in Ethiopia. Since its operation the price of cement has stabilized and subsequently gone down by approximately 150%.

To unleash the full potential of contribution of the construction and building material manufacturing in the country’s development effort, and create a cohesive industry wide value system, the Derba Group is to construct Toussa Steel Factory in Galissa, Kombolcha, in the Amhara Regional State. The factory will have a capacity to produce over 1.3 million tons of long steel products. This would require an investment of over Birr 14 billion. This is in addition to an already existing MIDROC Ethiopia owned steel products plant in Kombolcha. The investment in construction and building materials also focuses on the seamless flow of inputs and manufactured goods within the sector. Accordingly, a freight transport provider specializing in movements of raw materials and outputs to and from these green field plants has been established.

The investment, hitherto made or planned in the construction materials manufacturing, will emboss its foot print in the government’s Growth and Transformation Plan. Its plan will bolster economic growth and increase employment opportunities, while balancing the interests of the public, the government and MIDROC Ethiopia.

Inputs to the construction sector are also reflected through electro mechanical services, chip board supply coatings and the like.

Bridge building by MIDROC Construction Ethiopia Plc.

Construction activities of the African Union Grand Hotel

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Health Sectors

“Health Sector reform has been underway in Ethiopia for the last 20/21 year. The reform is meant to create sustained, purposeful and fundamental changes in the health sector; which is an important goal of national development. To aid in the reform work one of the linkages is the role of institutional actors in the health sector. MIDROC Ethiopia, under the direction of the Chairman, Sheikh Mohammed H. Al-Amoudi, is one of the notable reform proponents. Sheikh Mohammed H. Al-Amoudi is more than ever committed to contribute to the reform activities of the sector.

The Health Sector reform has been underway in Ethiopia for the last twenty years. The reform is meant to create sustained, purposeful and fundamental changes in the health sector; which is an important goal of national development. To aid in the reform work one of the linkages is the role of institutional actors in the health sector. MIDROC Ethiopia, under the direction of its Chairman, Sheikh Mohammed H. Al-Amoudi, is one of the notable reform proponents.

Graduating Nurses with Shiekh Mohammed H. Al-Amoudi

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Health Sector

Sheikh Mohammed H. Al-Amoudi is more than ever committed to contribute to the reform activities of the sector so that the growth and transformation plan envisaged by him would be realized in “good time”

This pledge to the health sector is reflected through a project defined for the establishment of a model hospital with state of the art technology, a pharmaceuticals manufacturing facility and health professionals training institute. It shall also be noted that there is a line for importing pharmaceuticals on a whole sale basis by acting as the sole agent of a world class pharmaceutical firm.

A large part of the construction works of the hospital is completed and the finishing works are underway. When completed it is expected to be a world class facility with the latest hospital equipment and technology and the deployment of competent and motivated staff.

The company has conceptualized at short-term, intermediate and long-term plan intended to be attained during the GTP and beyond. The short-term plan has been realized in an already completed intravenous (IV) fluids plant which is currently under operation. Pharmacure is the first pharmaceutical manufacturing company in Ethiopia to be granted the “Certificate of Competence” from the former Drug Administration and Control Authority (DACA).

Apart from local manufacture the bulk of pharmaceuticals are imported. Next to government, Equatorial Business Group, an affiliate of MIDROC Ethiopia, is the leading importer and distributor of drugs (both brand and generic) for human and veterinary consumption, medical equipment and supplies manufactured by global pharmaceutical companies like GlaxoSmithKline (GSK), Astra Zeneca, MSD etc…

Nurses in the demonstration room

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For the development of the human resources, a nursing college (SalaM Nurses College) was established to generate highly trained and competent professionals for the upcoming hospital. This endeavor is supportive of the policies involving the private sector in the health care development of the country.

Since its establishment, the College has trained very competent and highly motivated nurses and has deployed them for services in various major hospitals. Most MIDROC Ethiopia Group Companies have, long ago established HIV/AIDS fund to cover the cost of Anti Retroviral (ARI) drugs when required by employees which in the future is also targeted to include assistance to families of victims.

MIDROC Ethiopia has also generously provided for the transportation, accommodation and treatment of seriously and critically ill or injured patients in medical centers of excellence in South Africa, Kenya, Saudi, Arabia, United

Kingdom, USA and Thailand. As the high level care and service such patients needed are not available in Ethiopia, this generosity by Sheikh Mohammed H. Al-Amoudi has saved many lives and has alleviated sufferings of a considerable number of Ethiopians.

The observations at these centers of excellence and the experiences gained by MIDROC Ethiopia’s Management and professionals also provides opportunities for Investment Group to see higher standards for its up-coming hospital in terms of organization staffing and management systems development.

MIDROC Ethiopia and its Chairman Sheikh Mohammed H. Al-Amoudi has also generously contributed to the development of many health facilities in Ethiopia in line with the growth and transformation plan of the country. Some of the major hospitals assisted include Gonder Hospital, Mekelle Referral Hospital and the Children’s Heart Fund.

Pharmaceutical production

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manufacturing Sector

The Industrial Development Strategy of FDRE heavily emphasizes the indispensable role of the private sector for the realization of the sector objectives. MIDROC Ethiopia, through its owner, has embarked upon a huge investment opportunity in the manufacturing sector among many other endeavors. MIDROC Ethiopia has also played a significant role in the privatization program of FDRE. The acquisition

The Ethiopian economy is led by a policy of Agricultural Development Led Industrialization. In the last phase of this development policy is industrialization. The Government is now promulgating a series of development phases of which the GTP engineered by the late Prime Minister, H.E Ato Meles Zenawi is the forerunner. MIDROC Ethiopia fully supported by its Owner, Sheikh Mohammed H. Al-Amoudi, is playing its level best in the area of industrialization, especially through entering into export market oriented manufacturing such as leather & textiles and cater to many local consumer and specialty needs with a rapid growth during and beyond the GTP periods.

and subsequent renovation of manufacturing plants which were owned by the government has been foremost.

The growth and transformation program (GTP) has reinforced the sector by drastically laying out a bright future in guaranteeing a massive industrial and infrastructure projects. Plans to provide basic infrastructure to develop industrial cluster zones, government-promoted industrial sectors eligible for tax holidays and duty-free imported capital goods, road network, rails, power generation, renewable energy, and telecom have been well articulated.

The manufacturing plants have opened great opportunities towards making tangible contributions to the socio-economic development of our country. Great strides have been made in implementing the transfer of the latest technology in major aspects. Going forward, there are projects to sustain and

Textile production

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intensify the level of commitment for the period on and beyond the GTP.

The manufacturing sector involves the production of consumer items such as soft drinks, soap and detergents, paper products, miscellaneous inputs to other sectors and export oriented areas such as the leather and textiles industries.

In the soft drinks area, the availability of the products has increased in all parts of the country, employing thousands of people directly and indirectly. It has also made major expansion investments to introduce state-of-the art technology in collaboration with its international partners.

In paper products and packaging sub-sector of manufacturing, MIDROC Ethiopia has introduced consumer demand based specialty products such as tissue papers. In order to alleviate the chronic shortage and quality problem of packaging MIDROC Ethiopia has established a very modern facility of sufficient capacity and high quality. Of equal undertaking are in other areas of consumer based products such as toilet and laundry soap and detergents.

As the Government has given top priority to the leather and textile sector, MIDROC Ethiopia Investment Group through its companies Ethio-Leather Industry Plc. (ELICO) & Kebire Enterprises Plc. have been catering to these. Realizing that the leather sector is one of the priority sectors that will contribute for the industrial growth of Ethiopia, Sheikh Mohammed H. Al-Amoudi bought four factories in the leather sector; two tanneries, one shoe factory and a leather garment and goods factories. Heavy investments were made to upgrade these factories. Furthermore, the companies have become the leading leather industries in Ethiopia in value addition and employment generation.

In the coming three years, in addition to

upgrading the existing factories, it is planned to establish two footwear factories with capacities of 10,000 pairs of shoes a day and will have the necessary factories that will produce shoe accessories. Further, it is planned to have a medium sized glove factory. These factories will target the export market with the view to earn foreign exchange and move to high quality products. Therefore, since the GTP is a medium term strategic national framework for the five-year period, the overriding business development agenda of these factories is also to sustain rapid growth over the implementation period of the GTP.

With respect to textiles, a vertically integrated factory from cotton farm to garment stitching has been established in northern Ethiopia, with the factory in the city of Mekelle.

As the products are of high quality, 100% cotton based, they are fetching niche markets. These products are targeted for the export market. So, penetration has been into the Chinese, German, Swedish, the UK and the US markets. The textile business development agenda is rapid growth during and beyond the GTP periods.

Leather production

Soft drinks production

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mining Sector

“Minerals, as inputs to the agricultural and industrial sector and as a source of foreign currency earning, are playing significant role to the GTP. As the mineral and petroleum resources potential of Ethiopia is immense foreign and local investors are rushing in the exploration of precious metals, oil and gas, thanks to the conducive environment and attractive proclamations. MIDROC Ethiopia is a pioneer in the sector. Recent findings of bonanza gold deposits coupled with strikes of oil and gas in neighboring countries paves the bright future to the sector.”

MIDROC Ethiopia’s foreign direct investment was heralded with the issuance of the first Foreign Investment Certificate to Sheikh Mohammed H. Al-Amoudi in 1992 to undertake marble and granite quarrying and processing.

Sheikh Mohammed making a remark after signing the mining investment

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Since then, MIDROC Ethiopia involved in the mining sector have underscored remarkable results in prospecting, exploration and mining of precious metals and dimension stones.

Sheikh Mohammed H. Al-Amoudi’s vision to exploit the natural resources of the country for the benefit of its citizens goes in line with the Government’s plan and the late Prime Minister, H.E. Ato Meles Zenawi’s guidelines, who at one time said … “We will utilize our non renewable natural resources for sustainable development through proper management … ”

The acquiring of the first privatized company, Ethio-Libyan Joint Mining Company, and then later, the Lega Dembi Gold Mine with commitments of the owner, Sheikh Mohammed H. Al-Amoudi, to upgrade to a modern style of mining, has proved to be exemplary. Moreover, he has given clear instructions to his companies and reaffirmed his commitment to implement the GTP.

MIDROC Ethiopia mining companies are contributing to the economy of the country by way of earning foreign currency by exporting mineral products such as gold and dimension stones and by way of import substitution by availing to the local market construction materials (marble tiles, terrazzo tiles) and industrial mineral products such as fillers and soda ash.

Recent findings of huge resources of Gold and Base Metals by MIDROC Ethiopia mining companies have laid down achievable goals for sustainable economic growth to reaffirm Sheikh Mohammed H. Al-Amoudi’s commitment to involve in the development of the country’s economy beyond the GTP.

The mining sector of the country, in which MIDROC Ethiopia companies play the leading role, has shown dramatic growth in the last 21 years. 250 Licenses have been issued to 135 companies, of which MIDROC Ethiopia Group companies are playing leading roles both in exploration, mining and foreign currency earnings. Contribution of the Mining sector to the GTP has escalated from 0.4% to 20%-25%. The export earning has jumped from a few million dollars to over $500 million, following coffee as the main source of foreign currency.

The late Prime Minister, H.E. Ato Meles Zenawi’s, support to the mining sector has gone beyond Ethiopia where he stressed the need for Africans to come together for the development of mineral resources of Africa at the Pan African Mining Forum. H.E. Wro. Sinkinesh Ejigu, The Ethiopian Minister of Mines, is the Chair person of the forum since 2011.

Gold bar ready for export

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Tourism and Hospitality Sector

“The proliferation of private investment in the hospitality and service sector in the country opened the doors of this historic yet progressive nation to the entire world as evidenced by the number of tourists, businessmen, investors, etc. visiting Ethiopia which has more than tripled over the last decade.”

Among the major strategies that was adopted to change Ethiopia’s image of poverty and backwardness was to establish the country as a hub and crossroad between Africa and the rest of the world. The national carrier that had held its forte on the global air transport service arena through the decades, and the major expansion works undertaken on airports around the country, needed significant augmentation by a number of other auxiliary services to meet this goal.

Sheraton Addis

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The response and initiative from MIDROC Ethiopia, in this regard, was multi faceted and unprecedented. It was immediately realized that Ethiopia needed to have more hotels, more airline handling and catering services, more logistic services and even large venues to hold various public gatherings.

In keeping with his passionate commitment for ‘only the best’ , there was no reservation on the part of Sheikh Mohammed H. Al-Amoudi to ensure that Addis Ababa would seat one of the most famous and exclusive luxury collections international hotel chains to host high profile visitors, including heads of states on their visits to Ethiopia.

The conducive atmosphere that we enjoyed during the last decades played a major role in fostering peace and development initiatives in Africa. The representation of Africa’s interest in world economic, political, social and environmental forums required Ethiopia to play host to public representatives, dignitaries and world leaders.

Realizing the importance of hosting and providing these services, Sheikh Mohammed H. Al-Amoudi embarked upon the constriction of Five Star and other hotels in the capital City of Addis Ababa, and in the regions, as part of his plans to enter into building chains of first class hotels in various parts of the country to further develop the hospitality sector.

Sheraton Addis is one of the top brands of Star Wood Collection and Resort Worldwide, and one of the first and largest investments of

Sheikh Mohammed H. Al-Amoudi in Ethiopia. It is an integral part of the Ethiopian society that has all along strived to respect and promote the Ethiopian culture while maintaining its global reputation.

Currently a Birr 1.2 billion Five Star sophisticated Grand Hotel is also under constriction in the vicinity of the African Union.

The construction and commissioning of the first of its kind private airline catering facility, that has international certifications and which strictly adheres to all the quality, health, safety and security standards. Dictated by various regulatory authorities, it plays a significant role to ensure that both private and national air operators get service that is second to none in the region.

The set up of event facilities that are fully equipped and versatile enough to accommodate large audiences and host both local and international social, political and economic forums has also made Ethiopia a legitimate contender to host major regional and international events.

Prime Minister, H.E. Ato Meles Zenawi, once described Sheikh Mohammed H. Al-Amoudi as a soldier who stands guard for his motherland; always at the ready to overcome his challenges. Despite the heartfelt loss of a visionary leader and a partner in development, Sheikh Mohammed H. Al-Amoudi is at the forefront to keep fighting poverty and transform Ethiopia into a major player on regional and global arena.

Fleets of the Addis International Catering

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Training and development Sector

“Sheikh Mohammed H. Al-Amoudi’s investment endeavours were always developmental in thought and practice. His decision to enter into investment in education was firm and evolutionary. He aligned and realigned his investment in education and training in tune with government policy’s mission and vision. His interaction and dialogue with the late Prime Minister, was always the basis for an extensive evaluation of the investment activit ies, and training and development conce rn s to be “deve lopmen ta l i s t i c ”.

First financial trainees with Sheikh Mohammed H. Al-Amoudi

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At the graduation of the First Batch of Financial Management Training Program trainees (1997), Sheikh Mohammed H. Al-Amoudi said:

“I have realized the need to underpin my investment activity in the Ethiopian development endeavor with skilled manpower and to that end decided that MIDROC Ethiopia should launch a manpower training programme, whereby it could select and train personnel to meet its own skill needs.

I look forward with firm hope and full confidence to being able to see the stage, in which Ethiopian sisters and brothers successively trained first in financial management and later in other areas, would undertake significant responsibilities in MIDROC Ethiopia’s “commitment to development.”

With these objectives and intentions he continuously realigned his investment endeavors with government strategy of ADLI, fast track economic development and GTP.

Investment in human resource development is one of Sheikh Mohammed H. Al-Amoudi’s personal cardinal virtue, whether it is in the form of positive attitude and congeniality to any human being or in terms of assisting in building capacity and capability. Thus all his investments have a good component of training and development and capacity building. Good example is the Sheraton Project which had training program component of various disciplines at all levels right from the beginning.

Even before the start of the Sheraton Project, he donated desperately needed books, computers, and duplicating machines and papers worth of millions of Birr to help the Addis Ababa University strengthen its activity. Later on he made substantial donation for the on going construction of the Institute of Ethiopian Studies.

Right from the initial period of his investment in Ethiopia, Sheikh Mohammed H. Al-Amoudi has insisted for the establishment of MIDROC Ethiopia training program of its own no matter what it takes, as he was deeply aware of the need and crucial importance of “training” for the economic development of the country.

For the training and development of professional managers needed in MIDROC Ethiopia, he launched the founding of MIDROC training unit at MIDROC Ethiopia in 1996. Later on he envisioned the establishment of MIDROC Education & Training Institute (METI) to be responsible for investment in all levels of training, from elementary to tertiary levels. To this end an Advisory Committee on Investment in Education (ACIE) was formed composed of leading AAU professors. Later on changes in the continued survival of the first private university in Ethiopia, the Unity University, led to its being acquired by MIDROC Ethiopia.

Sheikh Mohammed H. Al-Amoudi was instrumental for initiating starting and facilitating the return of the Diaspora, and ensuring those who immigrated take action to return, and those who plan to migrate be retained at home. His investment also became a cause for the growth of many skilled laborers who have started their own trade practice today.

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The Transport Sector

The last two decades have registered resounding economic and social development scores in the various socio economic sectors of the national economy by virtue of the much needed conducive and favorable development-focused policy of the government.

As Transport is the lifeblood of a country’s economic and social activities, the Government of Ethiopia has embarked upon the first five-year Growth and Transformation Plan whose major focus is building the necessary infrastructure to facilitate industrial and agricultural production .It is in light of these basic strategic requirements to the national economy that Sheikh Mohammed H. Al-Amoudi, through MIDROC Ethiopia and some of the companies under it are engaged in the provision of road and air transport services; import and distribution of transport and construction equipment and machinery involving huge outlay in foreign currency and ensuring also an unfailing delivery of after sales support and maintenance services.

In that process the transport sector has played a key role as it lays the necessary precondition for the full participation of remote communities in the benefits of the national development. Facilitation of trade in import, export and distribution across regions and off borders and the quick transport of people to different destinations for economic and social purposes need widely distributed infrastructure. These infrastructure need timely, dependable and sustainable support from the automotive industry, such as the availability of automobiles, buses, heavy duty trucks, and construction equipment and machineries for their effective operations.

Fleets of Derba MIDROC Cement at the Factory

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The construction industry on the other hand has a fundamental role to play in the realization of public needs ranging from education, health care and other public use services such as roads and bridges, railways and airports, dams, industries, and other similar urban and rural mega development infrastructures.

It is in light of these basic strategic requirements to the national economy that MIDROC Ethiopia Investment Group, through its owner and Chairman, Sheikh Mohammed H. Al-Amoudi that some of his companies are engaged in the transport and automotive business involving huge investment in foreign currency for the delivery of automobiles, trucks, and construction machinery and equipment ensuring also an unfailing delivery of after sales and maintenance services.

Sheikh Mohammed H. Al-Amoudi has established a number of companies under MIDROC Ethiopia in the past two decades to engage in the transport and allied businesses in support of the national development efforts.

MIDROC Ethiopia Group is engaged in dry and liquid freight transport and flight services through its subsidiaries East-West Transport, Derba Transport and Trans-Nations Air ways. The fleet of VOLVO trucks, about a thousand in number, recently imported for Derba Transport, a subsidiary of the new high-tech Derba Cement Plant, has increased significantly the number of transport fleet in the country, thus alleviating the shortage of trucks in the transport sector and stabilizing the price of cement.

Apart from providing transport services National Motors Corporation, Nyala Motors S.C. and CABEY, all affiliates of MIDROC Ethiopia, are engaged in the import and distribution of passenger vehicles and trucks while Equatorial Business Group and Ries Engineering S.C., in addition to automobiles and heavy duty trucks, provide construction machinery and equipment. These companies also ensure an unfailing delivery of after sales support through the provision of spare parts and maintenance services.

MIDROC Ethiopia’s investments in the transport and allied business is also supported by other auxiliary services among which is the supply chain for oil, lubricants and petrol to which MIDROC-Ethiopia Group also keeps a name through the National Oil Company (NOC). NOC is also engaged in the import and distribution of the much sought after product, light petroleum gas (LPG) and a blending facility for petroleum products with ethanol. MUGAD Travel, Rainbow Travel and abc Car Rental Plc. are other companies engaged in facilitating air and surface travel.

The employment opportunities generated by these companies and the transfer of innovative skills and knowledge through the incoming technologies in such automotive and transport sectors, are equally significant considering their enabling contribution to national human resource development. These Group Companies have also contributed their share of resources by way of duties and taxes to the government.

MIDROC Ethiopia’s Airline - TNA

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mIdRoC Ethiopia Technology group Companies

Virtual Leadership at its Best’

Out of the over 60 companies MIDROC investment in Ethiopia, MIDROC Ethiopia Technology Group consists of 20 companies focusing on Mining, Agro-Industry, Manufacturing, Real-estate, Air Transport, Car Rental & Tourism, university education, and the like.

During the last twelve years there had been continuous growth in the different sectors in which the Group participated. The Group started its operation in July 2000 with five (5) companies with an initial investment of USD 467 Million which amounts to Birr 8.4 Billion at current exchange rate. Investment continued in different sectors with additions of new companies and expanding existing ones into different areas in the Group. Through the years, additional 5.2 Billion Birr was invested. As a result, currently, the Group’s total investment has reached about Birr 13.6 Billion at current exchange rate. This is a growth of nearly 70% through the years.

It is well known that, the Group contributed to job creation in the country by and large. Initially during the formation of the Group there were about 4,000 permanent employees. This number has grown to about 7,200 permanent employees. Additionally, there are about 6000 non-permanent employees following production seasons in the agriculture and construction sectors.

The contribution in terms of the production output of the country is also sizeable. The only gold processing mine in the country is in this Group. The initial production of one ton per year in 1998 has grown to 4.9 tons per year. In the last twelve years a total of 54 tons of Dore was produced. Out of this, 42 tons comprises gold and 12 tones Silver. The Group is the number one foreign

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currency earner for the country in the mining sector.

As holder of the large scale private agricultural and agro-processing companies, the Group increased the production of table eggs from 17 million to more than 30 million annually with achievable installed capacity of 50 million. The Group is the largest exporter of meat & eggs in the country. Likewise, the production of construction materials such as paints, corrugated sheets, Quartz floor tiles, hydra form blocks and pavement tiles, more than doubled. The production of plastic and gaseous products are also an important component in the Group. The Group successfully commenced production of soft drink glass bottles saving foreign currency.

In the service sector, the establishment of a private airline and the supply of executive car rental services uplifted the country’s image to expand tourism. The move of the Group into higher education sector, with the only private University in the Country, had also made noticeable effect for the country’s private higher learning and contributed to the country’s educational policy implementation at large.

The growth of the Group performance in terms of sales revenue is definitely above most standards with an upward trend all the years. Initially, during the year 2000/2001 (1993 Eth. Cal.), the total Group sales revenue had been Birr 492 Million per annum. This figure reached about 4 Billion Birr in the budget year 2011/2012 (2004 Eth.C.).

The growth in sales revenue has made significant impact on the foreign currency earnings of the country. Especially the export of gold made a significant contribution to the Country (USD 800 million cumulative) foreign currency earning. This amounts about Birr 14.4 Billion at current exchange rate. Likewise the export of processed agricultural products, live animals and meat,

aircraft lease and other products and services made additional contribution of USD 72 million towards the foreign currency earnings of the country during the past twelve years.

The Group had also made great contribution into the national budget through payment of different direct and indirect taxes. During the last twelve years the payment of profit tax alone amounted to Birr 2.5 billion. Other taxes like income tax, land tax, municipality tax, royality, etc made sizeable contributions to the regional governments’ budget.

Members of the MIDROC Ethiopia Technology Group Companies have strategic growth and expansion plans attainable within the coming five (5) years plan. The major envisaged actionable plans and programs of the Group are summarized as follows:

The future plan of MIDROC Gold focuses on exhaustive exploration of the Legedembi Gold Mine, continuation of the full fledged mining of Sakaro Gold Mine, expediting the exploration works at Metekel (Benshangul Gomuze State), Adola (Oromia State), Mentawuha (Amhara State) and other exploration sites. The establishment of first class laboratory and installation of a brand new gold processing plant (second in the Country) at Metekel will be accomplished soon. Successful implementation of these plans and programs will double the current volume of Gold production which in turn increases its foreign currency earnings by 100%. In terms of investment, annual sales turnover and foreign currency earnings, MIDROC Gold holds the lion’s share among the Group Companies.

The Group has the largest Agro-Industries in the Country with over 10,000 hectares of land holding. There are four major areas of specialties: Poultry Farm, Livestock Agro-Processing and Crop Farms. During the coming five years, modernization of abattoirs for export

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mIdRoC Ethiopia Technology group Companies

purposes, brand new turnkey poultry farm project, modernization of farms through the use of irrigation to produce fruits, vegetables and fodder (alfalfa) for export and local markets, introduction of modern ranch, and development of Real Estate on its urban lands are some of major projects worth mentioning. Over Birr 200,000 million has been earmed for the stated projects, mainly export oriented development activities intended to increase its foreign currency earnings.

In the Real Estate Business, it is engaged in design, project management and construction activities. It has recently repositioned itself, by acquiring Grade I construction license, to undertake big construction projects. It is conducting the design and construction of a 200,000 million Birr Mohammed Hussein Al-Amoudi Stadium Project at Woldia town. It has plans to capture huge road construction and large scale real estate development projects during the next five (5) years.

The fabricating and metal industry in the Group, will strengthen its investment and presence in various engineered products such as storage tankers, and other products. Additionally, it will move into the heavy industry sector such as assembling trucks, tractors, and other agricultural implements which assist in the development of agricultural mechanization. The current basic production based on steel sheets and wire products will also be revitalized to a greater extent by adding more product lines to satisfy the market.

The other construction materials being pursued are paints production and tiles. Different grade of Quartz floor tiles will be introduced to satisfy wider customer base in small cities and towns. Moreover, as there are shortage of tin cans to expand the paint production, a separate plant will be established to produce and supply tin cans to the company and other similar manufacturers in the country.It will also

introduce printing inks production in its paints formulation facility.

The Group is currently engaged in providing, domestic and international passenger and cargo air transport services is aiming to further strengthen its operation by enhancing its helicopter for commercial operation for the first time in the country. The helicopter transportation service will be enhanced to support the development of tourism, mining, geological survey, search and rescue, air ambulance, and electric surveillance/control, thus contributing to the growth development of the country.

The Group produces gas and plastic materials for industrial uses. At present, it is in the process of acquiring and installing state of the art Carbon Dioxide manufacturing plant, replacing the current machinery. This modern plant will tremendously improve the quality and volume of carbon dioxide supply to the user industries in the country.

The production of glass bottles which was being done by Daylight Applied Technologies will be further enhanced. The company will finalize its project of installing a crown-cork manufacturing plant to produce crown-cork for use by all bottling companies as a complement to its glass bottles production. Additional glass products like tumblers will be functional in a very short period of time. The company will expand its Cash Register assembly and maintenance activities to support the modernization of the tax collection system in the country.

Unity University (Unity U): is striving to be a “Quality House” of higher education. In line with this, the University is constructively engaging with the Ministry of Education, Higher Education Relevance and Quality Agency (HERQA) and other relevant entities to deliver quality education with the goal of improving the manpower capital of the country. The University

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is also working to develop bridging courses for fresh graduates from Universities to help them easily adapt to the work environment and boost their efficiency and productivity. An Executive Development Program will be strengthened targeting workers, teachers and instructors with the purpose of career updating and skill development.

In line with the Education Sector Development Program (ESDP IV) demanding adaptation of policy of 70:30 of University intake ratio in favor of Science and Technology, Unity University is working in the direction of its implementation. Accordingly, the University designed curriculum for Mining Engineering and is the first in the country to provide the course at a degree level. Due attention will be conferred to strengthen the courses in Architecture and Urban Planning, Computer Science, Information Technology, Civil Engineering, Mechanical Engineering and Industrial Engineering.

To contribute to the health sector, the University is working towards coordinating the services provided by Selam Nursing College, Mechare Higher Clinic and Mechare Pharmacy and establish a medical faculty to produce qualified manpower to the health sector. To ensure and strengthen the linkage between preschool, primary, and secondary education levels, to have quality input to Universities, Unity plans to establish Unity Preschool, Unity Primary and Unity Secondary schools. In addition to its current Undergraduate and Masters Programs, Unity University envisions starting Doctorate programs in selected fields. To further increase the educational access of the population, Unity will strengthen its current Distance and continuing education centers in different regions as well as open new branch campuses in different regional cities.

Other manufacturing companies like Wanza Furnishing Industries PLC (Wanza), Summit Engineered Plastic PLC (SEPCO), Blue Nile PP

and Craft paper Bags manufacturing PLC (BN), and Summit Partners Ethiopia PLC (SUMMIT) have a range of diversification and technology/capacity improvement plans and programs for implementation during the next five (5) years.

Likewise the service providing companies of the Group which include addis Home Depot (aHD), Rainbow Exclusive Car Rental & Tour Services PLC (Rainbow), United Auto Maintenance Services PLC (UAM), Queen’s Supermarket PLC (Queen’s) and Adago MIDROC Trading PLC (ADAGO) have developed concrete plans and programs to provide high quality and innovative services to the public at large in their respective areas of specialty.

As clearly shown in the preceding notes; growth, upgrading and expansion activities are given heavy emphasis among the MIDROC Ethiopia Technology Group Companies. No success will be attained and sustained without growth and expansion. Guided by the strategic plans formulated by the Group and the office of the Chief executive Officer, under the leadership of the Chairman, Sheik Mohammed Ali Al-Amoudi, the MIDROC Ethiopia Technology Group companies envisage a remarkable growth in key economic and social indicators. Aggregate sales turnover is targeted to grow by 30%. The combined growth and investment activities will increase the investment by 25%. As a result of the expansions, employment opportunities are also expected to grow by 30%.

Undoubtedly, such marked growth of the MIDROC Ethiopia Technology Group will have a positive impact on the overall transformation and growth efforts of the Country. The leadership, management and employees of the Group are determined and well positioned to ensure the realization of the envisaged growth and expansion programs within the specified five (5) year time horizon, there by contributing to the success of the five year growth & Transformation Plan (GTP) of the Country.

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Illustrative Stories

The first investment license of Sheikh Mohammed H. Al-Amoudi

Prime Minister, Ato Meles Zenawi’spresence and recognition to various

development endeavors ofSheikh Mohammed H. Al. Amoudi

“There was a unique passion and commitment that was shared by H.E. the late PM, H.E. Ato Meles Zenawi and Sheikh Mohammed H. Al-Amoudi - to change Ethiopia’s image and erase the word ‘poverty’ from our dictionary. The PM had confidence in the ‘Transformational’ role that Sheikh Mohammed H. Al-Amoudi could play and always directed him into critical areas of investment to achieve the vision they shared for their beloved motherland.”

Nebiyu SamuelSenior Advisor & Special Assistant to Sheikh Mohammed H. Al-Amoudi

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Late PM Melse Zenawi delivering a closing remark at the “Trade and Investment in Africa”, the Addis Forum held in March 1998 mostly sponsored by Sheikh Mohammed H. Al-Amoudi

Sheikh Mohammed H. Al-Amoudi greeting dignitaries at the “Trade and Investment in Africa”, the Addis Forum

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Illustrative Stories

Late PM after inaugurating the Residence of the AU Secretary General, discussing with the former Secretary General of AU, Salim Ahmed Salim,

Late PM inaugurating the Ethiopian Bole International Hangar

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Handing over the ‘Honorary Doctoral Degree’ to Sheikh Mohammed H. Al-Amoudi

Late PM inaugurating the Children’s Heart Fund (Hospital) in Addis Ababa

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Illustrative Stories

At the inaugural ceremony of the AU Conference Center in Addis Ababa

Sheikh Mohammed H. Al-Amoudi being honored with a Special Award, the ‘Greatest Investor of the Millennium’

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Welcoming Sheikh Mohammed H. Al-Amoudi to the handing over award ceremony for fostering sports

After receiving the Al-Amoudi Senior Challenge Cup of the Central & Eastern African Football Association (CECAFA)

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Illistrative Stories

Opening the Exhibition of Saudi-East African Forum in 2010

Late PM at the Saudi-East African Forum opening ceremony at the ECA

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The cornerstone laid for the construction of the AU Grand Hotel

After the laying of the foundation stone with the former AU General Secretaries, Prof. Alpha Omar Konare (left), and the Chair Person

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Illustrative Stories

With the Tanzanian President, Jakaya Kikwet (right), for the construction of the Grand Hotel, being built by MIDROC Ethiopia

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Late PM at the inauguration ceremony of Derba MIDROC Cement Factory in Derba, laying his finger print

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Illustrative Stories

Honoring Sheikh Mohammed H. Al-Amoudi with a ‘Platinum Award’ for the purchase of bond worth Birr 1.5 Billion, the largest single contribution, for the construction of the ‘Grand Renaissance Dam’

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Sheikh Mohammed H. Al-Amoudi and MIDROC Executives at Mechare Meda commemorating the loss of the late PM Meles Zenawi on August 29, 2012

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View points from financiers and insurers of MIDROC Ethiopia

Predictions of gloom and doom for Ethiopia have a long tradition among many scholars. With the clear roadmap charted out by the government, the country has been enjoying an uninterrupted period of positive economic growth and great dynamism over the last decade, which is fostered through strategic investment ventures with a crowd in effect for private sector. Much of this growth is a reflection of the increased activity in pursuing pro-poor and a big push economic development strategy to get out from the vicious cycle of poverty.

Economic expansion represents the growth of inputs and outputs which entails the development of a flexible, vibrant and diversified economy, supported by a stable and well-regulated financial sector.

The legislative framework has been evolving to ensure a sound legal basis for all areas of financial sector activity and encompass rules – in conformity with the relevant international best practice -for information disclosure, prudential requirements, electronic payment and standards for corporate governance and customer due diligence and anti-money laundering.

The role of the government in financial service provision has been in the contractual and informational framework. Financial contracts depend on the certainty of legal rights of borrowers, creditors and the predictability and speed of fair and impartial enforcement. The foreclosure law is worth to be mentioned here.

Enduring efforts have also been made to keep pace with technological developments and facilitation of the payment system. In a bid to mitigate the adverse effect of information asymmetries and ensure effectiveness in the financial intermediary process, the National Bank of Ethiopia has been implementing an online credit data access platform. Besides the launching of the National Payment System is expected to ensure efficiency and ease the exchange of goods and services by creating interconnectivity and real time gross settlement services and sequencing of financial sector reform. In its role as developer, the government has been participating with high caliber and zeal in modernizing banking service provision.

The speed with which the Ethiopian economy has been registering colossal growth in GDP, call into questioning the long tradition of forecasting gloom and doom about Ethiopia. The initiatives taken through investment in developmental projects and the encouraging institutional reforms point towards a focused effort to break the league of traditional pessimism. We continue reiterating the saying of H.E President Paul Kagame, “The most befitting tribute we can pay him (Prime Minister, H.E. Ato Meles Zenawi) is to consolidate and carry on with the work and the vision he associated with … his legacy to us does not lie in the past but in the future.”

“The Ethiopian government under the leadership of H.E Prime Minister, H.E. Ato Meles Zenawi has been streamlining structural overhaul and banking service modernization by ensuring prudential regulatory infrastructure, modern information technology environment and effective payment system that enabled delivery of cost effective services and improved the financial deepening of the country.”

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Nyala Insurance S.C. (NISCO) is one of the first few private insurance companies established after the advent of free market system in Ethiopia.

Its major products include, among others, All Risks, Aviation, Bonds, Burglary and House Breaking, and Consequential Loss Insurances. These have enabled NISCO to contribute its due share for the country’s growth and development in the past two decades.

Apart from the traditional insurance services, NISCO was the first private insurance company that simultaneously reached all regions under the free market policy and the favorable environment created to the private sector. NISCO’s penetration into the rural market was focused more on creating insurance awareness to the rural population rather than just for profit thus contributing to the overall development effort of the country.

Moreover, NISCO introduced and pioneered various insurance products which can protect the rural low income people against climate shock by enhancing their resilience capacity. These Insurance covers include Multi Peril Crop Insurance, Named Peril Crop Insurance (such as Hail cover), Weather Index Crop Insurance; Livestock Insurance in all the main agricultural regions and worldwide Travel Insurance for those traveling out of the country. NISCO has well known products designed to fit the current demands

of the construction industry that cover big road and railway construction projects, erection of factories and Industries. It has also green house (horticulture) insurance polices for the flower farm investors.

In all the years in operation NISCO has been providing insurance covers of all types to the MIDROC Ethiopia. This relationship will continue based on mutual benefits and to the satisfaction of all. In total, NISCO’s service outreach extends to over fifty thousand customers drawn from all walks of life, and so far has paid out over Birr 500 million by way of claim payments and contributed over Birr 200 Million in the form of tax to the government.

Apart from availing a fertile ground to the private sector, the Government has formulated a policy to protect particularly the financial institutions from the foreign giant competitors until they build enough capacity to compete sustainably in the global market. The new Insurance Business Proclamation (Proclamation No. 746/2012) which brings the ‘No Premium No Cover’ requirement into force will definitely increase the investment capabilities of insurance companies and reduce the administration costs of collecting outstanding premiums from defaulters. NISCO will continue to render even more strengthened and quality services to the public and contribute its share to the national economy.

“We are among the first private insurance companies and the first private insurance company to introduce Multi Peril Crop Insurance, Weather Index Crop Insurance and Livestock Insurances to small scale farmers who are always vulnerable to climate changes. This is not just for profit but to support the development efforts of the country, and create insurance awareness to the rural population. Nyala Insurance S.C., with its efficient, responsible, dependable and reliable services to the general public, will always remain grateful for the vital roles played by the late P.M., H.E. Ato Meles Zenawi May His Soul Rest in Peace!”

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Condolences

Mr. Lennart Wikstrom

The MIDROC Ethiopia Investment Companieslearned about the passing away of Mr. Lennart Wikstrom of MIDROC Scandinavia with great sorrow as he was a close friend and an advisor of our Chairman, Sheikh Mohammed H. Al-Amoudi, and the man who played a major key role in the Sheraton Addis Investment Project and the founding of MIDROC Ethiopia Plc. He and his team were responsible for the establishment of the first MIDROC Ethiopia Investment Companies, including the acquisition of Legedembi Gold Mine, and the Training Department at MIDROC Ethiopia. His fatherly and friendly figure will always be remembered fondly by many in MIDROC Ethiopia. The MIDROC Ethiopia Investment Group Companies express their condolences to his family and friends.

May he Rest in Peace.