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Finally, the Privatisation and Public Enterprises
Supervisory Agency (PPESA) has decided to give the
200hct of land that was administrated by Ziway
Agricultural Development Enterprise to the French
Castel Group.
Castel requires these tracts of land to grow grapes
for the production of wine and has projected to
invest 10 million dollars in the sector.
Of the 700hct of land managed by Ziway farm, Sher
Ethiopia, a Dutch based flower company, had received
300hct from the Enterprise and started operation on
July 1, 2007. After this company requested more
land, it has been granted an additional 200hct of
land.
Sher Ethiopia built greenhouses fitted with complete
infrastructure and rents them to flower and
vegetable growers for monthly fees. Companies such
as Ethio-Rose, Ziway-Rose, A&A Herbs, Meskel Flower
are among other companies using the service of Sher
Ethiopia.
Ziway Enterprise, before and after it handed over
the land, grows selected seeds like corn, beans and
grape. The Enterprise has been selling the selected
seeds it grows to such clients like the Ethiopian
Seed Enterprise and Pioneer Ethiopia.
As the beans are exported to Dubai, the grape goes
to the Awash Winery. Castel was established some 50
years ago and has specialised in producing three
mainstream products such as wine, mineral water and
beer and soft drinks.
Castel has entered in the Ethiopian market with
interest in the beer industry while BGI Ethiopia,
under its supervision, leads the market in Ethiopia.
Established in Ethiopia in June 2002 with 105.1
million dollars, BGI Ethiopia is an extension of a
French interest that has a significant presence in
the West African markets with its beverage and
brewery industry. Its shareholders are Brasseries
Internationales Holding Limited (BIH) and HEBU
Properties Ltd. It is also the owner and producer of
two beer manufacturing plants and four beer brands
in the country.
Mr. Castel, a French national who is said to be a
close friend of Zewdinesh Bekele, who owns BIH, an
international bottling company that is involved in
soft drinks and the beer manufacturing industry in
sub-Saharan African countries.
Zewdinesh, owns also the two popular cafes in Addis
Abeba, La Notre and Gebre-tensay Pastry.
The annual production of beer in Ethiopia hit
400,000 litres. BGI Ethiopia leads the market share
in terms of sale. BGI is set to break the market
monopoly of Awash Winery, as the former prepares to
enter into the wine business in Ethiopia. Awash
Winery produces 14 brands of wine products in the
country.
However, an expert on alcoholic drinks told
Fortune that there is still unexploited demand
locally as Awash’s products are limited to towns.
Esayas Hadar, BGI’s marketing manager, told
Fortune that they are in the process of
receiving the 200hct of land.
“We would like to invest extensively in the
development of wineries and wine products, and in
three years, we should be able to bring new products
in the market,” Esayas said.
One official from the Ministry of Trade and Industry
(MoTI) told Fortune that those employees of
Ziway Enterprise would be expected to be
incorporated in the new company and, once the
handover took shape, the Oromia Investment
Commission and the Ministry of Agriculture and Rural
Development (MoARD) would continue to support the
company.
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