The Nazareth Soap Factory, which was established by two businessmen in 1976, was returned to its rightful owners 26 years after forced nationalisation; but although the return was publicly announced in September 2006, the proprietors have yet to receive the Factory.
 

The reason for the delay is that the owners are expected to make a 28 million Br payment before the hand-over is actualized. The money request is a reimbursement for three machines that were installed at the Factory during state ownership.
 

The soap Factory, which was founded by Makonnen Abate and Alemu Gebru in Adama, 100Km from Addis Abeba, on the road to Sodere Hot Spring Resort, was unlawfully nationalized in 1980 during the socialist Derg regime.
 

Even though the Privatization and Public Enterprises Supervisory Agency (PPESA) publicly announced the return of Nazareth Soap and Nazrawi Oil Factory, the two factories that were taken over at the time, the owners of both entities have not yet received their properties

Alemu, one of the soap Factory founders, told Fortune that they were told to make the payment in order to receive the property.
 

According to PPESA, the Factory was estimated at 33 million Br, but because five million Birr was invested by the founders when they first established it, that amount was exempted.

“Although we are happy that the government decided to return our Factory, we still cannot afford to make this type of payment at one time, so we appealed and the Agency reduced the amount to 21 million Br,” he said.
 

“But since it was still too much for us to cover in one instalment, we approached the Commercial Bank of Ethiopia (CBE) as well as United Bank to give us the loan; nevertheless, they did not respond in our favour; CBE went as far as telling us that the Factory did not even belong to us,  so we had no reason for the loan anyhow.”
 

Alemu further went on to explain that they had offered PPSA to pay in instalments, but their idea was rejected. The Agency told them that a 35pc down payment with the remaining 65pc being covered over six year is a privilege reserved for those that buy public enterprises not for those that reclaim their former properties.
 

Nazareth Soap, which employs 175 permanent and 20 temporary workers, operates four shifts a day. The Factory has the capacity to manufacture 600 cartons a shift, with each carton containing 100 soaps.
 

Girma Teferi, president of the Employees Association at the Factory, told Fortune that the soap is mainly distributed in Adama and in areas of the Southern Regional State. 
 

Both the president of the Association and the treasurer, Bezanesh Gomera, commented that they are not worried that any complications will arise in the event that the Factory is returned to its founders and former owners.
 

Girma explained that those with pensions will also be able to retire with their funds guaranteed; hence there would be no reason for controversy to occur.
 

Nevertheless, the Association is concerned about the handover process as the government’s statement of return and the reality of it not occurring could cause some destabilising disagreement.
 

Tadesse Getaneh, general manager of the Factory, told Fortune that whether the rightful owners choose to receive the Factory or not, according to a Directive issued by the Agency, and that as has been implemented for the first quarter of this fiscal year, the Factory will continue its operation and will not at any point stop manufacturing.