Elsewedy to Get 20,000ht for Egyptian Industrial Zone

Elsewedy Cables Ethiopia Plc, a cable manufacturing plant in Dukem, is to be granted the 20,000ht of land it asked for to establish an industrial zone in the Afar Regional State for Egyptian companies.

The company submitted its request to the Ministry of Trade and Industry (MoTI) in October 2009, about the same time as the inauguration of its cable manufacturing plant, which it had established with a capital of 50 million dollars.

Elsewedy's request for land in Afar was a welcome request for the ministry which has been trying to promote industrial zones far from Addis Abeba and surrounding towns of the Oromia Regional State such as in Kombolcha, in the Amhara Regional State and Dire Dawa, Amakele Yimam, corporate communications head at MoTI, told Fortune.

Elsewedy Cables Ethiopia Plc needed the land to prepare for investments from up to 120 interested Egyptian companies in pharmaceuticals, cables, transformers, electrical panel boards, explosion proofs and poles as well as agro processing, Ibrahim Qamar (Eng.), general manager of the company, told Fortune.

Such investments will substitute imports and save foreign currency for the country, Amakele says.

Elsewedy expects to spend 300 million dollars in the first phase of development for the industrial zone, according to Ibrahim, who says the financing will be provided by Egyptian companies.

Elsewedy is the first African company to show an interest to start an industrial zone in Ethiopia. So far China, India and Turkey have such zones in Dukem, Kombolcha and Laga Xafo, respectively.

By MERGA YONAS : - FORTUNE