I-I ET- ECONOMY

# !!!$

I (EthiopianBeersFactories)/

I .. 1922 EA 1963 EA A 1984 EA 1988 EA E /IA 1995 EA 2014 EA 2015 EA A 16,020,903,086.81 (16 020 903 086 ) E A E E A E

A A A E I AA - 49 A A (42 ) A A EA(25 ) E (33 ) -

E E I ED A A A A 100 E 50 A E E A ? 2014/15 EA (1.4 ) (1.5) 2.9 I E A 377 910 1,287,000,000 (1 287 ) /IA A ? A A 100 E 50 A E

{1} / SaintGeorge A Societe desBrassieres etGlaciersInternationale(BGI) 1922 EA .. AA I 500 E 1975EA 1998 EA /IA 74,248,086.81 AI I A AA A 250 A AI 50 E A 500 E A 200 E Asastipulationofthecontract,BGImustretaintheentire500personworkforce,whichTadeleestimatedwas200beyondtheplant'sneeds.Thestaffwillcontinueworkingpertheircontractbutreceivenoincreaseinsalaryandcannotbereplacedforatleastfiveyears.BGIisobligatedtoreconstituteandfinancethepensionprogramaswell,contributing6%percentofeachworker'ssalarywhiletheemployeecontributes4%.Tadelesaidhewillbereplacedwithnewmanagementbuthopedtobecomethenewgeneralmanageratthe

MetaBreweryoutsideofAddisAbaba.

{2} A (Meta Abo) .. 1963 EA A I I kk AA 27 369,000 A 50 A 1970EA A 120,000 A A1975EA A 1980EA A A A 350,000 A A /IA 1998 EA A 83.28 83,284 E 1000 A A 365,000 1998 EA A 195 A E 39.74 MetaAboBrewery is located inthetownofSebata,27kmfromAddisAbaba.Thebrewerywasestablished in1963by the EthiopianGovernment and Ethiopianprivatenationals as a share companywith a starting capitalbaseof 2millionBirr.Initially,theproductioncapacityofthebrewerywas50,000hl.perannum.In1970thefirstexpansionprogramtookplace,andtheannualproduction capacitywas raised to 120,000 hl. Later on, in 1980, the second expansion programwas carried out. As a result of thisprogram,theattainableproductioncapacityreached350,000hl.Metahasbeentransformedintoasharecompanywith83.28millionBirrpaidinsharecapitalasatDecember31,1998.Thecompanyhas83,284ordinaryshareswithaparvalueofBirr1000.00eachfullyownedbythegovernment.Itistheonlybrewerywhichgetswaterfromabigreserveofsoftspringwater(locallyknownasholywaterofSt.Abo).Thespringwatermeetsthe internationalbrewstandardtobeusedwithoutanytreatment.Thebreweryproducesbottledanddraughtbeer.Bottledbeerissuppliedtoallmarketsinthecountry,whiledraughtbeerissuppliedtothecityofAddisAbabaandthetownslocatedwithin120km fromAddisAbaba.Thebreweryhasa liaisonofficeanddistributioncenter inAddisAbaba.Thetotal landholdingofthebrewery is369,000m2ofwhich25,000m2 isabuiltuparea.Acarpark,recreationandhorticulturalfarmsoccupythemajorpartofthebrewery'spremises.In1998,MetaAboBreweryproducedandsold365,000hl.ofbottledanddraughtbeerworthBirr195million.Inthesameyear,itmadeaprofitofBirr39.74million.Thebrewerysupplies55%ofitsproducttodistributorsand45%toretailers.DistributionoutsideAddisAbabaismadethroughagents.ThebrewerydistributesdraughtandbottledbeertoAddisAbabausingitsowntruckfleet.Thebrewery'smajorrawmaterialsaremalt,hopextract,hoppowder,andotherchemicals.Exceptthehopextract,powderandchemicalsthatare imported fromabroad, themajor rawmaterial,malt, isobtained fromAssalaMaltFactoryatadistanceof200km from thebrewery.Bottles,corksandcratesareobtainedfromfactorieslocatedinAddisAbaba

/IA 2012 EA A E 225 Diageo plc, the worlds leading premium drinks business, has completed the acquisition of the Meta Abo Brewery Share Company SC (Meta Brewery), a leading beer company in Ethiopia, for a cash consideration of USD225 million, subject to customary post completion adjustments. The acquisition concludes a competitive tender process held by the Privatization and Public Enterprises Supervising Authority on behalf of the Government of Ethiopia. Over the past five years, Diageo has invested more than GBP 1 billion in building its businesses in Africa, and we will continue to look at opportunities to expand our footprint, grow our brands and secure strong routes to market. Meta Brewery is the second largest beer company in Ethiopia with a volume share of approximately 15%*. From its Brewery near the Ethiopian capital Addis Ababa, it produces and distributes its flagship national lager brands Meta and Meta Premium. The acquisition will give Diageo direct access to the rapidly growing Ethiopian beer market, and will complement Diageos existing premium spirits business in the country. The beer market in Ethiopia is estimated to continue to grow at more than 10% per annum to 2015, driven by strong GDP growth and increased disposable incomes*. Diageo currently markets its international premium spirits brands, including Johnnie Walker scotch whisky, Smirnoff vodka and Gordons gin, through its representative office in Addis Ababa. {3} (Harar) I 103,407 1984EA 2011EA /IA I1.3 (In 2011, the state-owned Harar Brewery became a subsidiary of Heineken International through a buyout costing $78 million USD.) A 200 E 250 A 20,000 A A A 50 HararBreweryislocatedin theoutskirtsof thehistoric townofHarar ineasternEthiopia.Thebrewery iswellknown for thepopular tasteof itsbeerand thediversityof itsproducts.HararBrewery is theonlyEthiopianbrewery that salesabroad.Mostof themachineryandequipment in thebreweryarefromtheCzechRepublic. Itoccupiesatotalareaof103,407m2.Land isavailableforfutureexpansion.Genelaspring,fromwhichHararbeerisbrewed,iswithinthefactory'scompoundandsupplementarywatersupplyhasbeenmadeavailablefromtheFinkile

deepwellandAlemayaPumpStation.Theinstalledcapacityofthebreweryis200,000hlperannum.Undernormalconditions,thedailycapacityisfourbrewingcycles,eachconsistingof200hl.Withslightchangesinthebrewinghouse,thedailycapacitycouldberaisedtofive cycles.In the bottling section, the generalproduction rate reaches20,000bottlesperhour.Recently, the factory replaced itsoldlabelingmachineswithanewmachinerysuitableforfrontandbacklabeling,necklabeling,foilinganddateprinting.Thereisalsoanewkegfillingplantfordraughtbeer,withwashingandfillingstations.HararBeerissoldalmosteverywhereinthecountry.Intheearlyyearsofitsoperation,thebreweryexportedlargequantitiesofbeertotheUSA,CanadaandDjibouti.Thiswasinterruptedinearly1990s,buthasnowbeenrevivedaddingtheNetherlandstothelistofexportmarkets.Thesalesactivityiscarriedoutpartlybythebreweryitselfandpartlybysalesagents.Thedirectsalesbythebrewerycoverssome46%ofthetotalvolume.BranchofficesinDireDawa,ShashemeneandAddisAbaba promote the sales activity. Before the establishment of AsselaMaltery, the brewery used to importmalt from abroad.Nowadaysmaltisimportedinsmallquantitiesforblendingpurposesonly.Ingeneral,thebreweryimportsallchemicalsfortreatmentandsanitationpurposes.HopisimportedmostlyfromGermany.Therepairandmaintenanceofallmachineryandvehiclesarecarriedoutbythebrewery'smaintenancedivision.Allmachineryareingoodcondition.Downtimeisminimal.ElectricityissuppliedfromtheEthiopianElectricPowerCorporation.Twotransformerswithacapacityof1,250KVAeachare installed intheBrewery'spremises.SupplementarywaterispumpedfromaplacecalledFinkile,33kmfromthepremises,whichisjointlyusedwithHamaressaEdibleOilFactory.

{4} (Bedele) AA 483 I I 250,000 1988EA 1993 EA A 250 /IA 1998 EA 163.86 163,859 E 1,000 A 100 A 2011EA I (Heineken International) 1.4 A 300 E 330 (capacity toproduce300,000330milliliter (0.7pint)bottlesofbeerperday) 2015EA 110 AA A A A A A 1.5 84 300 A 310 I A 280 E

x BedeleBreweryislocated483kmfromAddisAbabainSouthWesternEthiopia,inIlubabor,SNNPAdministrativeRegion.Theconstructionofthefactorystarted inJune1988andproductionbegan inNovember1993.Totalareaof landallottedfortheestablishmentofthefactoryis250,000sq.m.ofwhich37,968sq.m.iscoveredbydifferentbuildingsandtherestisopenspace,which canbeused for futureexpansion. TheBrewerywasdesigned toproduce250,000hl.ofbeerwhich canbe sold asabottledordraughtbeer.In1995/96budgetyearitproduced253,198.4hl.butthereisapossibilityofreachingto300,000hl.peryearwithlittleinvestment.Bedelehasbeentransformedintoasharecompanywith163.86millionBirrpaidinsharecapitalonDecember 31, 1998. The company has 163,859 ordinary shares with par value of Birr 1000 each fully owned by thegovernment. It was established through a technical agreement between the government of Ethiopia and the formerCzechoslovakRepublic.MostoftheBrewery'splantandequipmentarefromCzechoslovakia.

x Commercial officers visited the Bedele Brewery, located in Bedele town 500 kilometers west of Addis Ababa, in late September. The brewery was constructed with the assistance of Czechoslovakia and inaugurated in October 1993. Bedele production manager Sirata Guluma said many beer ingredients are found locally. Barley is grown outside of Addis Ababa. Malt is processed in Asela, though some malt is imported from Germany during local shortfalls. Hops, both liquid and pellet, comes entirely from Germany. Yeast, added to the beer with air to induce fermentation, is imported from Europe but can be reused 3-4 times, according to Sirata. Sugar, and occasional additive, is produced locally.

x The machinery used in the plant is predominantly Czech. The brewing process, including the mixing, sieving, and crushing of ingredients, the boiling, and the extraction of bitter residues takes 9-10 hours. The plant consistently turns out 75 million bottles annually. Many of the 420 employees live in town. Brewmasters and Engineers that Bedele lured away from the other breweries live in the 45 houses on the brewery compound.

{5} (Dashen)The Amhara National Regional Rehabilitation and Development Fund, Endeavour or Tiret)A EAkk A EA EAAA (40 A ) A ABGI Ethiopia which produces St George (Addis Ababa), Castel and Bati (Kombolcha) beers, subsequently withdrew from the venture, reportedly in disagreement over expansion plans.

E EA kk EE 2015 EA 2.3 A A A A A A

{6} A A (49 )17 A A 300 E 500 1.4 I 377

{7} Raya Brewery AA 667 A 2,241 A 1.5 I 910 E A A 710 678 (36 ) I A 248 (13 ) A (42 ) A E A EA I E (25 ) A 11 2007 . 40 ! A A 1 1.5 A 300 E 500 710 E A E A!!! 1 A A 420 250 670 330 2,241 A 147,255 (A A 670 I A 910 (1 70 700 ) 1.5 A A A ! A A !!! 150 ? /IA A A E !!! E !!! A A!!! !!! E E A A E A I ED A!!! EthiopiasRayaRaises$26Million ForNewBrewery, July 24, 2013 Kehinde Adaramola Business, Retail & Manufacturing VENTURES AFRICA Ethiopian beer maker, Raya Brewery has announced that it has raised an additional 500 million birr ($26.6 million) for the construction of its new brewery located in Bohera Mountain, South of Maichew, and 667 km from Addis Ababa.The plant, which is expected to be completed within a year, will have the capacity to produce 300, 000 hectolitres of beer annually. Commenting on the project, Raya Brewery Board Chairman, LT. General Tsadkan Gebretensae, said the total cost of the plant is estimated at 1 billion birr ($53 million) -of which 678 million brr ($36 million) will be paid to a consortium of Czech and German companies- for the installation and commissioning of the brewing machine and plant.According to Capital, plans and preparations to order machinery needed for the production plant have been finalised. Raya, established in 2010, had borrowed 600 million birr ($31 million) from Commercial Bank of Ethipia (CBE), and raised 248 million birr (13 million) from the sale of shares to BGI and Dawit Gebre-Egziabher, a majority shareholder, to raise funds for the project and increase the stake for the company.The brewer, which plans to control 10-15 percent of the Ethiopian beer market share, acquired the loan from CBE 6 months ago in order to fill the gap between the project cost and equity raised so far and is expected to repay the bank within 7 to 9 years

[I] I (BasicfeaturesofEthiopianBreweries)

ss / (EA)

/

A A

1- /SaintGeorge

1922 A SocietedesBrassieresetGlaciersInternationaleBGI (Castel Group)

x

x x x A

74,248,086.81 A SocietedesBrassieresetGlaciersInternationaleBGI (Castel Group) A I AA A 250 A A

2- A Meta Abo Diageoplc

1963 2012 EA E

x x

225 (225X18.6518=4,196,655,000)

1974 EA 1990 /IA E A 365,000 A A

3- Harar Heineken

1984 2011 EA

x x

x

1.3 ($78millionUSD.)

1984 EA ss 1.3 (78 )2011EA A 200 (5.28 )A

4- Bedele Heineken

1988

x x

x x

1.4 2015EA 110 (110x 35= 3,850,000,000 birr)AA A A A A

1988EA 250,000 1993 EA // /IA 1.4 2011 EA 420 E 2015EA 110 AA A A A A 280 E A 1.5 84 300 A 310 I A

5- Dashen

1995EA AA

x

x 2.3

/IA 1995EA AA 2015 EA 2.3 A A A A A

6-

2007 E I A

A (49 ) A

x

1.4 I 377

/IA A A (49 )17 A A 300 E 500

7- BGI (Castel Group)

2007 E I A

A )A(42 ) A EA (25 ) A A

x 1.5 I 910

/IA A A 300 E 500 678 (36 ) A 248 (13 ) A A EA

16,020,903,086.81

I 2008-2009 EA A A () A A I / A AA(1.0/) (0.5/) A 1.5 A A A 42 0.75 A A A A 21 (0.45/) (0.30/) A 0.75 A A A 21 0.60 A A A A 17 A A 3 600 3 50

I A ()Capacity and Supply of Major Ethiopian Breweries(2008-2009)

A () .

(2008-2009) A ( 2008-2009)

A (%)

1 A (BGI) 1,500,000 1,500,000 42% 2 A (Meta Abo) 500,000 600,000 17% 3 (Harar) 350,000 450,000 13% 4 (Bedele) 300,000 300,000 8% 5 (Dashen) 400,000 750,000 21% 3,050,000 3,600,000 100% Source: Data from Industry Producers and Experts. *Breweries with expansion activities From a level of just 1.0 million hectoliters in 2003/04, beer production has risen to nearly 3.1 million hectoliters by 2008/09, giving an estimated average growth of around 24 percent per year.2 (A hectoliter is the unit of measure used in the beer industry. One hectoliter equals 100 liters) (Per Capita Beer Consumption in Africa) A A A I 4 12 19 25 A 37 40 53 A 59 A A E A

[II]I (Basic Features of Leading Mineral Water/Soft Drinks Companies)

{1}A Ambo Mineral water (www.AmboWater.com) A A A AA 130 / A A I . 1930 EIA 85 1974 EA 2008 EA /IA A 2010 EA A A A A ( South African brewery company, SABMiller) A A A I E A 3,607,000 A A A 300,607,000 A A (83.34) A / A A 14,000 A A A 24,000 A A A 21 A AA A

SABMiller Taps Ethiopia's 'Holy Water',By PETER WONACOTT AMBO, EthiopiaThe last emperor of Ethiopia used to travel here to drink water that seeped from fissures of volcanic rock. The naturally sparkling liquid was so prized for its restorative powers that locals called it holy water.Ethiopians still quaff Ambo's precious resource. But today, it is bottled and sold by a unit of multinational brewer SABMiller PLC, which acquired an aging mineral-water bottling plant once belonging to Emperor Haile Selassie.Since SABMiller took over in 2009, the company has redesigned bottles and overhauled assembly lines once held together by broomsticks and wire. New flavors of Ambo water include pineapple and lemon-lime and are sold to fancy hotels and European cafs. Ambo invests 21 million USD on expansion project Ambo Mineral Water S.C., the bottler of the popular Ambo mineral water, on Thursday announced that it had undertaken a major expansion project on its mineral water manufacturing plant near Ambo town at the cost of 21 million dollars. Ambo mineral water factory was established 80 years ago in Sekele locality near a hot spring 130 km west of Addis Ababa. The factory had dominated 85 percent of the mineral water market. The factory was nationalized in 1974 and it was partially privatized in 2008. An Ethiopian businessman, Tewodros Ashenafi, in partnership with South African brewery company, SABMiller bought the factory from the Ethiopian Privatization Agency two years ago. SABMiller and SouthWest Development, a company established and managed by Tewodros forged a joint venture company, Ambo Mineral Water S.C., with the Ethiopian government. The share company has 3,607,000 shares with a total par value of 300,607,000 birr. The Ambo mineral water manufacturing plant had two lines which have a total production capacity of 14,000 per hour. The two old lines were renovated and another new line was installed. The new line alone has a production capacity of 24,000 bottles per hour. Board chairman of Ambo Mineral Water S.C., Tewodros Ashenafi, said that the company exports its products to the US, Australia, Djibouti, Yemen and Saudi Arabia, adding that the company, in collaboration with the Ethiopian Ministry of Foreign Affairs and Ethiopian embassies was looking for more foreign market. He acknowledged the assistance provided by the government to his company. Ambo is preparing to launch other new products which will have fruit flavors. The products which are in the pipeline are called Ambo &. These products are orange- apple- pineapple- and lemon flavored Ambo water.

{2} (Babile Mineral water) A A 526 2007 EA /IA 6.5 A The Privatisation and Public Enterprises Supervisory Agency (PPESA) sold one if its two mineral waterproducing factories, BabileMineralWater toPetramPLCatapriceof6.5millionBr.Theagreementbetween theAgencyand the company for thesaleof thefactory,located526KmeastofAddis intheHarariRegionalStatewassigned lastTuesday,March13,2007.Company Overview of Babile mineralwater Factory distributesmineralwaterDjiboutiandSomaliland.ThecompanyisbasedinEthopia.

{3} Coca-Cola Soft Drinks Company/ I A (East African Bottling (EAB) 1959 EIA I A A 1975 EA A 1996 EA I I 1999 EA E I A (TheSouthAfricanBeverageCompany (SABCO)9.1 4.2 (49%) (61.3%)A E A I A 82 A AThe Coca Cola bottling plant was first established in 1959 in Addis Ababa and later in Dire Dawa. The factories were nationalized in 1975 and remained in the hands of government for over twenty years.The establishment was sold to a group of Ethiopian shareholders in 1996 and in 1999 a joint venture agreement was signed between the Ethiopian shareholders and Coca Cola SABCO, with the latter, according to William Egbe, Director of Coca Cola East Africa and Islands Region, injecting a capital of 9.1 million dollars to acquire 49% of the shares in EABSC. According to Egbe, at the end of 2001 SABCO contributed additional capital amounting to 4.2 million dollars, raising its share to 61.3. The fund, he said, was used to implement the new expansion project. E E I A ( () A AA 5/15/95EA I A 64,030,000 (64 30 ) A A A 250 I E A East Africa Bottling Share Company disclosed it is will make an investment greater than U.S $ 250 Million in Ethiopia during the next five years for the purpose of increasing the companys capacity.East Africa Bottlings General Manager, Xavier Selga, noted We are just finishing our strategic plan for the next five years and it has been approved, so we will spend more than 250 Million Dollars in Ethiopia during the next five years, which will allow us to increase our capacity and satisfy our customers across the country.

I A A 7.5 A 36 I A 15 A 24 E

x It is likely that we will introduce a sugar free type of product to the Ethiopian market and that is what we are working on, the GM said. The Coca-Cola company has consumers in more than 200 countries with more than one billion servings each day. The company, with its 40 bottling partners in Africa, is the largest private sector employer, with nearly 60,000 employees. Over the past five years alone, more than 600 million dollars has been invested in Africa, much of this going into new plants. The beverages are also marketed and distributed by bottling partners in over 160 plants serving 850 million consumers, in 56 countries.

x EastAfricanBottlingSC,producerofCocaCola,inauguratedanexpansionprojectatitsfactoryinDireDawa,lastweek.Itenabledthefactory,515kmeastofAddisAbeba,toincreaseitsproductionfivefold,atanoutlayof20milliondollars.Aftertwoyearsofwork,theexpansionprojectatitssecondbranchinDireDawa,whichopenedin1965, includes building a returnable glass bottling line, the refurbishing of the previous plant and theconstructionofnewbuildings.Currently,thefactoryhasthecapacitytofill36,000bottlesofthecompany'swellknownbeverages,suchasCocaCola,Fanta,CocaLight,SpriteandFantaeveryhour.

x Aspartofitsplanthe2020CocaColaInitiative,inwhichtheCompanyisinvesting500milliondollarsCocaColahas invested50milliondollarsto introducea recyclablepackaging line.Thisenabled theCompany toproduceplastic packaging for its products at the firm's branch in Addis Abeba, located around Abnet area in LidetaDistrict, on Balcha Aba Nefso Street. This project is expected to produce 750,000 plastic bottles a day. ItsrecyclableplasticPET(PolyethyleneTerephthalate)bottlesareavailableintwosizes500mland1.5litres.

x "Ethiopiaremainsoneofourtop10marketsinSubSaharanAfrica.Withapopulationofover90millionpeople,we trulybelieve that this country represents the futureofourbusiness," said Jackson. "In the last twoyearsalone,wehaveinvestedover150milliondollars."

x Thecompanyalsoreceived30haofland,ayearago,fromtheBahirDarCityAdministration.Thiswillbeusedtobuild itsthirdcocacola factory inEthiopia,atanoutlayof800millionBirr.Thecompany's futureplan includesconstructingafurtherplantinHawassa.Copyright2013AddisFortune.

x Ethiopia:BGI'sHawassaPlanttoBoostBeerCapitalProductionto1.44MillionHlx The joint venture between the Ethiopian shareholders and Coca Cola SABCO has allowed the deployment a total of 135 million

birr in the expansion of production capacity in Addis Ababa, the improvement of sales and distribution infrastructure, and the construction of other facilities, he said, adding, such a joint venture not only has allowed the inflow of foreign capital into Ethiopia, but it also paved the way for the introduction of new technology, modern management expertise, efficient sales and marketing system, and intense manpower training across all functions to ensure successful and rapid growth of the business.

x The company has invested about 133 million birr over the past four years in the establishment of two bottling lines, the renovation of the factory and the purchase of new marketing equipments, according to Beyene Berhe, EABSCs Board chairman. The chairman said at the inauguration ceremony that an additional investment of 100 million birr was in the pipeline for further additional marketing support and production improvements.

x Mr. Citos Reyes, Managing Director of East African Bottling Share Company said the two new bottling lines each installed with 72 filling heads with a combined capacity of filling 48,000 bottles per hour, are equipped with state of the art technology, increasing the capacity of the factory by three-fold.

x The largest Coke bottler in the world, Coca-Cola Enterprises, is in the midist of yet another growth spurt. Coca-Cola & Schweppes beverages (CCSB) is a joint venture of the Coca-Cola company (49%) and Adbury Schweppes (51%). CCSB bottles and distributes both parent companies products. After acquiring Coca-Cola & Schweppes beverages, CCE will distribute Cadbury Schweppes products in the UK.

{4}( Pepsi-Cola Soft Drinks Company ... 1959 EIA A A 20,000 A 1986EA E 6,647,944 50,000 1975EIA () E Mohamed International Development Research Organization Companies (MIDROC) U 5/15/1995EA 105,356,891.1(105 356 891.1 ) AA ( ) ( AO ) () A 556 A 12 A E A 52 A E 656 2,485 E 1,095 A

MOHAsoftdrinks IndustryS.CwasestablishedonMay15,1996acquiringNifasSilkPlant,TekleHaimanotPlant,GondarPlant,andDessiePlantfromtheEthiopianPrivatizationAgencywithpaidcapitalofBirr108,654,000.TheCompanycurrentlyhasseven operating units including Summit Plant, Bure Plant, and the recently inaugurated Hawassa Plant in the Southern Nations &NationalitiesPeople'sRegion.ThemajorproductsofMOHAsoftdrinksIndustryS.C.are:PepsiCola,MirindaOrange,7Up,MirindaTonic,MirindaApple(allPepsiBrands),andKool(BureKoolandTossabottledwaterproducts.)TheAnnualTurnoverofthecompanyhasreached

toBirr556millionandsalesstandsatanaverageannualgrowthrateof12%.ThecompanyhastodatepaidBirr656millionasexciseand sales tax to thegovernment. Itprovided2485 jobs for citizensoutofwhich1095arenewemploymentopportunities since

acquisition. 2008EA I 200 2012EA I 942 EA A I A I A E Similarly,inJuly2012MIDROCborrowed942millionBirr ($52millionUSDat the thenexchange rate) from theCBE. In2008MIDROCalsosecuredBirr200million($21millionUSD)fromtheDevelopmentBankofEthiopia(DBE)foritsDerbaMidrocCementfactory.Unfortunately,MIDROCstotalborrowingfromtheEthiopiangovernmentremainsunknown(asisitsoverallcostofcapitalordebtstructure)sinceMIDROCisprivateholdingcompany.

I I I E I E E A In conclusion, Ethiopian government owed bank should refrain extending loans tomultinationalwanting toexpand theirbusiness inEthiopia. Ifamultinational company isunwilling tobringadditionalforeigndirectinvestment(FDI)intothecountry,itshouldmeetitsrequirementsvialocalfinancingby raising equity or debt within the Ethiopian market. The whole purpose of allowing multinational topurchasepublicownedbusiness in the firstplace, is to attract ForeignDirect Investment (FDI), transferof

technology and knowledge, or because the private sector is better suited to manage the enterprise.Earlier in 19982000, MIDROC took the lead in buying Ethiopian government owned enterprises byacquiring theLegaDembiGoldandKentichaTantalummines, teaplantations,agricultureenterprisesandasoftdrinkcompany(PepsiCola).ItalsoborrowedfromlocalbanksinEthiopiainordertopartiallyfinancetheacquisition..FuturePlansAnaverageannualincreaseof15%insalesvolumeandacorrespondingprofitgrowthisanticipated.ProjectsUnderImplementationInvestmentProjectsI.AdigratPepsiColaBottlingPlant1.ProjectLocation:Adigrat,TigrayRegion2.TotalEstimatedInvestmentCost:Birr208,000,000II.DessiePepsiCola&CarbonatedWaterPlant1.ProjectLocation:Dessie,SouthernWolloRegion2.TotalEstimatedInvestmentCost:Birr91,000,000III.NewPETlineatSummitPlant:12,000bottlesperhourwith1.5literbottlecapacity(bothforsoftdrinksandbottledwater)willbeeffectiveinOctober2010.TotalEstimatedInvestmentCost:Birr130,000,000IV.Mohasoftdrinks,ownedbySheikhMohammedAlAmoudi,hasawardedamajorcontractforitsnewbottlingplantinMekele,780kmnorthofAddisAbaba.DubaibasedSidel,aninternationalliquidpackagingcompanywhichhassuppliedservicestoMohasotherplantsinthe past, will install a production line for full implementation by mid2014, producing carbonated soft drinks at the rate of 36,000returnablebottlesperhour.Theplantwillensure that softdrinks, forwhich there is risingdemandas the country continues itshighgrowthrate,nolongerneedstobetruckedthelongdistancefromotherMohaplantsnearAddisAbaba,thecapitalCopyright20112014SheikhMohammedHusseinAlAmoudi {5} Summit Beverage Plant A 100 I A-A / E A A E (O A A ) A A A A 100,000 24,000 Summit Partners PLC is an American company that opened a branch investment of about US$100 million. Summit Partners PLC is an international investor with a wide range of manufacturing projects planned in Ethiopia. The first projects are Summit Beverages, Summit Engineered Plastics, and Summit Glassworks in Addis Ababa, plus a soft drink Bottling Plant in Dire Dawa. Summit partners (Ethiopia) PLC has acquired 100,000 square meter of land for the construction of three of the plants at Kotebe. Construction work on the Beverage Plant, which occupies an area of 24,000 Sq.m, was completed in one year. The bottling line machinery was designed, manufactured and

installed to be Central Bottling International. Ltd., from the united Kingdom. CBI maintains the highest of standards and provided Summit with the most advanced technology in the soft drinks industry in Africa. The bottling lines and computerized system are built lines and computerized systems are built to international specifications. Now, Summit Beverage is a co-packer of MOHA. Due franchise agreement between MOHA and Summit Beverage Factory, MOHA produced its different mix of products. I (Basic Features of Leading Mineral Water/Soft Drinks Companies)

ss /(EA)

/

A

A 1938 ( 2007 ) Private (privatized in 2007)

A Mineral water (Ambo) A A (OA A A A

1938 EA 1970 1990 Nationalized in the 1970s and modernized in the early 1990s

//

1953 ( 2007 )

Mineral water (Babile)

... 1953 EA 1970 1990 // 2007

I A (I) East African Bottling (EAB)

1959 EA Private

( ()

... 1959 EAI 1995 I A (I) AA

Pepsi-Cola Soft Drinks Company

1959 EA Private

( A O ) ()

AA (2004 ) E

Summit Beverage

A

(O A A)

AA 100 I

(Source:Companywebsitesandpressreports.

[III] I (Basic Features of Leading Natural Mineral Water/ Companies) Brand,description,packageandmanufacturerofbottledmineralwatersamples. No Brand Description Manufacturer1 Ambo Sparklingmineralwater At source2 Highland Naturalmineralwater ApexBottlingCompany 3 Aquaddis Naturalmineralwater BurayuSpringWaterPLC 4 Abyssinia Springs Naturalmineralwater Great Abyssinia PLC5 Aqua Safe Purenaturalspringwater DebreBirhanNaturalSpringWaterPLC6 Crystal Fortifiedmineralwater Coca-Cola Company7 Kool Naturalmineralwater MOHA Drinks Industry SC8 Oasis Spring Purenaturalwater Pacific Industries9 Real Springs Purifiednaturalspringwater TGMD Trade Work PLC10 Dasani Dasani East African Bottling Company 11 Yes spring water Yes Brands Food & Beverage Plc 12 Origin Origin water Origin Food & Beverage Factory 13 Eden Eden water Eden Business S.C 14 SPA SPA water Herbal Trade & Industry Plc I A 14.4 A kk 32 A 2010EA 108 E A 12 54 16.4 1.8 32 524.8 E 460.8 A This profile envisages the establishment of a plant for the production of Mineral Water with a capacity of 14.4 million liters per annum.The present demand for the proposed product is estimated at 32 million liters per annum. The

demand is expected to reach at 108 million liters by the year 2010.The plant will create employment opportunities for 54 persons. The total investment requirement is estimated at Birr 16.4 million, out of which Birr 1.8 million is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 13.46% and a net present value (NPV) of Birr 6.1 million, discounted at 8.5 %. I E

x There are six water brands in Ethiopia that are certified for conformity of the standards required for bottled water, out of the 32 bottled water companies in the sector. The certified companies are Great Abyssinia Plc, the bottler of Abyssinia spring water; Asku Plc, bottler of AquaAddis spring water; Yes Brands Food & Beverage Plc, bottler of Yes spring water; Herbal Trade & Industry Plc, bottler of SPA water, Eden Business S.C, bottler of Eden water and Origin Food & Beverage Factory, the bottler of Origin water.Now Dasani is coming as the seventh water to be certified in the country and Coca-Colas only water brand in Ethiopia.

x The East Africa Bottling Company, Coca Colas maker, is introducing the brands bottled water, Dasani, to the market.The water, which will come in half and 1.5lt bottles, will be produced on the existing combo line production a two line production that can be used for both water and soft drink production. This line, which became operational in 2013, cost 30 million dollars. The combo line has the capacity to fill 36,000 bottles an hour,

A AAccess to water supply and sanitation in Ethiopia: (Per Capita water Consumption in Africa) A A 47 E 85 E 334 A 578 A E A - I 15 20 E 2006EA I A ( Universal Access Plan (UAP) 98% A 100% A 2012 EA 2.5 E 2012 EA A A A E

x .15 //( ).1.5 x .20 //( ).0.5

- 2005 E 2010 EA E 84% A E 80% A E 2010 I 2010EA A 68.5% E A 2008EA -A 38% A E 12% E In 2006 the government adopted a Universal Access Plan (UAP) to achieve 98% access for rural water supply and 100% access for urban water supply and sanitation by 2012. Its cost was estimated at US$2.5bn. During the first phase until 2012 the focus is on affordable and appropriate technologies, with the following service standards: Setting Per capita consumption Service radius Rural 15 liter/capita/day 1.5 km Urban 20 liter/capita/day 0.5 km The governments Plan for Accelerated Sustained Development and to End Poverty (PADEP), covering the period 2005-2010, aimed at increasing access to an improved water source to 84% and access to improved sanitation to 80% by 2010. These ambitious targets go well beyond the water and sanitation targets of the Millennium Development Goals, which aim at halving the share of people without access by 2015. According to one set of government figures, which is used by the Ministry of Finance and Economic Development for planning purposes, access to drinking water reached 68.5% in 2010. According to another set of government figures, based on national survey data and used by the WHO and UNICEF to monitor the Millennium Development Goals, in 2008 access to an improved water source was only 38% and to improved sanitation 12%. I A A A 2001 E 2002EA I A A I/ 39 2005 EA /IA 2005 E 2010EA 300 A A A 2010EA /IA E 2011 E 2015EA A A 68.5 98.5 A E A In 2005 the government announced highly ambitious targets to increase coverage in its Plan for Accelerated Sustained Development and to End Poverty

(PASDEP) for 2010. The investment needed to achieve the goal is about US$300 million per year, compared to actual investments of US$39 million in 2001-2002. In 2010 the government presented the equally ambitious Growth and Transformation Plan (GTP) 2011-2015, which aims at increasing drinking water coverage, based on the government's definition, from 68.5% to 98.5%.[2] While donors have committed substantial funds to the sector, effectively spending the money and to ensure the proper operation and maintenance of infrastructure built with these funds remain a challenge. I A 122 / 2.6 E 6.5 A A 1575 A E I A !!! 3 11 (0.3 A) A A A A 2009 EA E E A Ethiopia has 12 river basins with an annual runoff volume of 122 billion m3 of water and an estimated 2.6 - 6.5 billion m3 of ground water potential. This corresponds to an average of 1,575 m3 of physically available water per person per year, a relatively large volume. However, due to large spatial and temporal variations in rainfall and lack of storage, water is often not available where and when needed.[5] Only about 3% of water resources are used, of which only about 11% (0.3% of the total) is used for domestic water supply.[6] The capital Addis Ababa's main source of drinking water is the Gafsara dam built during the Italian occupation and rehabilitated in 2009. Wells and another dam complement the supply.[7][8] I A A A A E According to data from the Joint Monitoring Programme for Water Supply and Sanitation of WHO and UNICEF, which are in turn based on data from various national surveys including the 2005 Ethiopia Demographic and Health Survey (DHS), access to an improved water source and improved sanitation was estimated as follows in 2008:

x 38% for improved water supply (98% for urban areas and 26% for rural areas) x 12% for improved sanitation (29% in urban areas, 8% in rural areas)[1]

According to figures used by the Ministry of Finance and Economic Development for planning purposes, however, access was much higher. In 2010, access to drinkingwater was estimated at 68.5%: 91.5% in urban areas (within 0.5 km) and 65.8% in rural areas (within 1.5 km).[2] The higher figure for rural areas may be because the distance to an improved water source used in this definition is higher than the distance used by the Demographic and Health Survey. In communities that lack access to an improved water source, women bear the brunt of the burden of collecting water. For example, according to an article by Tina Rosenberg for National Geographic, in the mountain-top village Foro in the Konso special woreda of southwestern Ethiopia women make three to five round trips per day to fetch dirty water from the Koiro river. Each roundtrip lasts two to three hours and water is carried in "50-pound jerrycans".[13] Investment and financing Actual investment. There are no recent reliable estimates of actual investment levels in the sector, and available estimates vary greatly. A detailed estimate of investment and financial flows in the Ethiopian water sector was carried out by the World Bank's water and Sanitation Program (WSP) for the financial year 2001-02. It estimated total sector investments at US$39 million or less than half a dollar per capita, being one of the lowest recorded sector investment levels in the world.[26] water and sanitation have declined as a share of total poor-focused expenditure from 7.4% in 2005/06 to 3.4% in 2009/10. External cooperation

x The African Development Bank provided a US$64 million grant for rural water supply and sanitation approved in 2005.[23] x In November 2011 it was announced that China would provide a US$ 100 million loan for water supply in Addis Ababa.[28] x The British NGO WaterAid is engaged in Ethiopia since 1983. It works closely with established local NGOs. In Oromia Region,

water projects tend to be spring-fed gravity schemes, some of which are very large, providing water for tens of thousands of people. In Southern Nations, Nationalities, and People's Region schemes have included deep boreholes as water is sometimes only found below 200 metres.[29] For example, in the village of Orbesho residents - mainly women - built themselves an access road to allow drilling equipment to be brought in, dug trenches for pipes and collected stones for structures.[13] In Amhara and Tigray the main technologies have been hand-dug wells and spring development. In Benishangul-Gumuz rope pumps are also used. In sanitation, WaterAid supports the construction and use of latrines. Hygiene education has increasingly focused on the close links between proper handwashing at critical times, like before eating and after going to the toilet, and improved health. In all cases WaterAid works closely with communities from the start. Particular attention is now being paid to engaging women. Since 1998 WaterAid has also been engaged in the slum areas of Addis Ababa. Projects include establishing communal water points linked to the city's piped systems, as well as shower and latrine blocks.[29]

2012 EA 150 A A 2007EA 100 A A A 2010EA 80 100 A A A A 576 99 835 75 1288 E 35 A 87 143000 E A In May 2012 the World Bank provided approved a USD 150 million soft loan for an urban water and sanitation project as additional financing to a USD 100 million soft loan approved in 2007.[30] The project covers Addis Ababa, Gondar, Hawassa, Jimma, Mekelle and Diredawa. In March 2010, the World Bank approved additional financing of

USD 80 million for a USD 100 million rural water supply and sanitation project approved in 2004. According to the World Bank, until 2010 the original project had financed the construction of 1288 hand dug wells, 835 protected springs, 576 shallow wells, 99 deep wells, 75 rural piped systems and 35 rainwater harvesting, as well as conducting hygiene and sanitation promotion. In rural areas alone, according to the World Bank the project facilitated access to clean water and improved sanitation facilities to about 1.4 million people. In urban areas, the project provided "immediate service improvement" in 87 towns which benefited about 143,000 people.[32][33]DiageowillalsolooktoextenditsWaterofLifeinitiativeinEthiopia.Theinitiativecurrentlyprovidesaccesstocleandrinkingwaterforover60,000EthiopiansintheKecheneandBurkoGudodistricts.I I 0/ E I A A E A E I 70 E A I A Service quality:-WHO and UNICEF in 2004-2005. It shows that 72% of samples complied with the values for coliform bacteria in the Ethiopian drinking water standard ES 261:2001 and the WHO guidelines for drinking water . In the case of piped water supply by utilities compliance was highest at 88%. Open wells and unprotected springs were not included in the survey. Besides bacterial contamination, natural contamination with fluoride is an issue in the Rift Valley. In 2010, 20 percent of rural water systems were malfunctioning, down from 25% in 2007.[3] About 35 percent of the estimated 30,000 hand pumps in Ethiopia, serving an estimated 2 million people, were non-functioning in the mid-2000s.[15] In piped water systems rationing and service interruptions are frequent.[16] There are no wastewater treatment plants in Ethiopia, so all wastewater collected in sewers is discharged without any treatment to the environment. I I - A / -/ E ( ) A A - 2004/05 EA I A A 72% (coliform bacteria) E A 88% E A 2007 EA 25 2010 EA 20 A A 2000EA I A 30,000 E 35 (10,500 ) A A E A I 1/ I (A) D E A I A A E A E D A A A A ? E ? !!! E E A E A (BeijingTsinghua University) I A A I E A A A E E A E A E 600 I E I I A E

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