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Envisioning
Ethiopia is a local non-governmental organisation
committed to broadening public discourse on
Ethiopian political and social life. Believe it or
not, the organisation’s job just got easier.
Before, when the organisation would host a
discussion forum, staff would spend countless hours
delivering invitations to hundreds of government
officials and civil society leaders. Now they just
make one phone call – to Absol Courier and Delivery
Service PLC, one of three homegrown companies that
are pioneering courier service in the capital city.
Ato Matios Surafel, programme officer for
Envisioning Ethiopia told Fortune that he was
relieved to find Absol’s adverstisment as she was
making plans to host a forum with 395 participants
on December 15 at the Economic Commission for
Africa. He called Absol on December 10, and for 8
Birr per letter, the company delivered all of his
invitations in two days.
Absol was founded by three individuals a year ago
with a paid-up capital of 20,000 Br. Absol’s office
is located on Africa Avenue behind Mega Building.
Absol is one of the eleven courier companies
currently operating in Ethiopia. There were 15
companies registered to give express postal delivery
service, but only about eleven are still operating.
Among these, six companies are foreign based and
solely serve the international market, two service
the domestic market and the international market,
and the remaining three are trying to exploit the
market in the capital city.
The courier service began in Ethiopia with the EMS
Service provided by the government postal service.
EMS Service, which began in 1989, only offers
express delivery of packages across the regions and
now has 53 branches throughout Ethiopia and 70
employees.
Absol and its competitors, however, believe that EMS
has left a big untapped market by not providing
door-to-door service or distribution service like
Absol provided for Envisioning Ethiopia. At EMS,
customers need to go to one of the company’s offices
to send and to receive a parcel.
Solomon Asfaw, one of the founders and manager of
Absol, told Fortune, “There is a market still
uncovered by the giant courier service giving
companies.”
EMS says it welcomes the competition.
Gizat Worku, director of the EMS, told Fortune
that as government officials they want the
development of the private sector. He believes the
new private couriers could follow in the footsteps
of private guard services, which is now a booming
business after both government and non-government
organisations began outsourcing the hiring and
management of guards to private parties.
Still, expanding private courier services beyond the
metropolis may be difficult for Absol, which is
still losing money as it struggles to develop its
client base.
“We are on the trial phase; we have not generated
any revenue yet; we are running a loss due to
spending on advertisements and research,” Solomon
said.
According to Esseyte Gebriel, general manager of
Intra City Delivery Plc, Absol’s biggest competitor
in the city, there is always hardship when starting
up a new business. Intra City is now receiving 100
to 300 orders per day. Intra City too is still
researching how to expand its business, and has no
plans to open new offices.
Intracity started its work in 2005 with a paid-up
capital of 16,000.
Esseyte also said that though the international
courier services like DHL partially serve the local
market, there is still a large untapped market for
national courier service.
Germany’s DHL has become the leading international
courier service in Ethiopia since opening its first
office here in 2003. It now serves the national
market as well after opening offices in regional
capitals like Bahir Dar, Mekele and Dire Dawa. The
company will soon open additional offices in Nazreth
and Gonder, Asteway Zemedkun, sales and marketing
manager of DHL, told Fortune.
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