Ethiopia’s First Urban Complex Project Starts in Addis Ababa

According to people’sdaily report the first urban complex project called Poli Lotus International Center starts in Ethiopia developed by Chinese investment, was opened on Monday in Ethiopia’s capital Addis Ababa.

The project executed by Tsehay Real Estate, which is co- invested by the China’s CGC Overseas Construction Group (CGCOC) and Chinese investor Qian Xiao, includes public and residential buildings in function layout. The 1.5-million-U.S.-dollar project covers an area of 200,000 square kilometers, and is expected to finish in 2017.

The public building comprises high standard hotel, international A grade standard office, supermarket, banks shopping center and pedestrian commercial street.

Cutting the ribbon during opening ceremony, President Mulatu Teshome noted that the project enables to provide modern and efficient services to all its urban dwellers and the international community at large.

“This project, which is being undertaken and labelled as Poli Lotus International Center, is one of the most successful urban developments to bring efficient building construction technology and knowhow, thereby facilitating the smooth transfer of construction technology to Ethiopia,” said the president.

“The size and quality of this investment, made by Chinese company, reflects the long-standing excellent bilateral relations between Ethiopia and China,” he added.

Chinese Ambassador to Ethiopia, Xie Xiaoyan, said at the ceremony that the project is a new concept that would bring new life to the city.

“The project will bring new concept, new experience to people’s lives in the city because you can do everything here; you can go shopping, you can eat in restaurant, you can live in apartment comfortably,” said the ambassador.

Speaking on the occasion, Sun Guoqiang, deputy manager of CGCOC, said “through the introduction of advanced technology, products service and capital as well from China we are dedicated to improving the living standard of the local people and promoting the economic development of Ethiopia”.

He said his company would continue to contribute share to the comprehensive development of Ethiopia.

Ethiopia Leads the East African Cement Market

By Nesru Jemal

Amongst the countries in East Africa, Ethiopia leads in terms of regional cement output (12.6 million MT per year).

It has overtaken Kenya, which historically dominated regional output, producing the equivalent of 7.4 million MT per year in 2012-13.

At the same time, both Kenya and Uganda are regional export hubs, having exported a total of 1.4 million MT in 2012.

The output among East African countries is significant relative to other African regions, particularly when considering that Central Africa historically been a marginal producer, with a capacity of a mere 1.6 million MT per year.

However, this has been changing with the emergence of Angola as a major producer. Angola has rapidly built up its capacity to around 8 million MT per year, all of which it consumes.

Nigeria and South Africa remain the leading sub-Saharan cement producers, with 25% and 16% of the total market share, while Ethiopia and Kenya account for 11% and 6% of the total market share respectively.

Cement consumption per capita in East Africa is significantly below the global average of 500 kg, with the region’s largest markets in Kenya (80 kg) and Ethiopia (61 kg) – both indicating significant potential for growth. This reflects high domestic prices, which have constrained demand.

By way of comparison, in sub-Saharan Africa, Nigeria remains the largest consumer, with an estimated 18.3 million MT consumed in 2013, followed by South Africa, with 12.2 million MT. Together these two countries represent half of sub-Saharan Africa’s cement consumption.

Angola, Ethiopia and Ghana all together consume between 5-6.5 million MT, while Kenya (3.7 million MT) and Tanzania (3 million MT) are East Africa’s leading cement consumers.

The rapid expansion of production capacity across Sub-Saharan Africa has led to a sharp drop in cement imports, reversing the deficit that has built up over the past decade.

Nigeria, which as recently as 2010 was importing $500 million worth of cement each year, has seen imports slump to $139 million in 2012, while Ethiopia’s imports have fallen by 75%, to just $43 million over the same period.

This reflects the steady tightening of both countries’ import regimes, where the governments are phasing out licences to import cement and encouraging investment in local production.

As a result of these policies, both Nigeria and Ethiopia are on track to become net exporters of cement in the near future.

Source: Companies and Markets

Intercontinental Expands in Africa with First Hotel in Ethiopiaf

According to a press release from Intercontinental Hotels Group (IHG), It is expanding into Africa with the signing of its first hotel in Ethiopia. InterContinental Hotels Group (IHG), one of the world’s leading hotel companies, has signed a management agreement with Tsemex Hotels and Business Plc to develop Crowne Plaza Addis Ababa. The 210-key hotel represents the entry of IHG into Ethiopia and adds to the company’s growing presence in Africa.

Crowne Plaza Addis Ababa is situated near significant landmarks including the African Union headquarters, African Union Convention Centre, the headquarters of the United Nations Economic Commission for Africa and the United Nations Convention Centre. It is also located close to one of the largest international communities in the city. The new hotel will feature an all-day dining restaurant, a speciality restaurant and a bar. Guests can enjoy facilities such as the health club and spa, or kick back with a drink at the bar by the swimming pool.

Catering to the business traveller, Crowne Plaza Addis Ababa will also offer a range of meeting facilities including a boardroom, seven large meeting rooms as well as ballroom for larger events. A business center is also available for guests who require access to business facilities on the go.

Pascal Gauvin, Chief Operating Officer, India, Middle East and Africa, IHG, said: “Addis Ababa is evolving at pace, with infrastructure such as the Bole International Airport now serving almost 20 million passengers a year. We’re always on the lookout for the right partner to grow our brands in the right location. Now we’re bringing Crowne Plaza to a new country with Tsemex Hotels and Business Plc. Crowne Plaza Addis Ababa is a strong addition to the brand and with this being our first hotel in Ethiopia we will now have a presence in 13 countries across Africa.”

Mr. Rezene Ayalew, Managing Director, Tsemex Hotels and Business Plc, said: “We own a number of real estate developments and with this being our first venture into hospitality, we couldn’t have asked for a better partner to embark on this project with. Addis Ababa has great potential for tourism but is currently under-supplied in catering to business travellers and meetings and events. The Crowne Plaza brand comes highly recommended with a unique positioning for the business market and we believe this is the right brand to bring into our vibrant city.”


IHG currently has 29 hotels open on the continent of Africa across five brands: InterContinental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Staybridge Suites. The new development marks the sixth Crowne Plaza hotel in Africa. Across Asia, Middle East and Africa there are 68 Crowne Plaza hotels and resorts totalling more than 19,000 rooms, with an additional 16 due to open in the next three to five years.

Ethiopia to Djibouti Railway to Be Complete on October 2015, PM Says

(Bloomberg) – An electrified rail link from Ethiopia’s capital along its main trade route to neighboring Djibouti will be completed by October 2015, Prime Minister Hailemariam Desalegn said.

The Railways Corp. project, funded with a $1.6 billion advance from the Export-Import Bank of China and by Ethiopia’s government, is half-complete, he said yesterday in the capital, Addis Ababa.

“Priority has been given to it,” Hailemariam said in response to questions from members of parliament. “Next October the line will be finished.”

The 656-kilometer (408-mile) railway is part of a five-year growth plan for Ethiopia begun in mid-2010 that seeks to spend 569.2 billion birr ($28.4 billion) of public and private funding on infrastructure and industry. The new route to Djibouti may reduce travel times by half, according to the government.

Seven out of 10 cane factories being built by the state-owned Sugar Corp. will also be completed in a year’s time, with the rest finished in the subsequent six months, the premier said. “We will be able to export the sugar they produce this year,” he said, referring to the Ethiopian calendar year that ends Sept. 11.

Sugar Corp. signed government guaranteed loans worth $580 million last October with the China Development Bank to finance six processors in the South Omo region, while China’s Ex-Im Bank provided a credit-line of $500 million in May for a sugar plant in the northern Tigray region, according to data on the Finance Ministry’s website.

Increase Output

In Sept. 2011, the government said it aimed to increase sugar production almost eightfold to 2.3 million metric tons by mid-2015, leaving a surplus for export of 1.25 million tons.

Plans to build 10 sugar factories, a 2,395-km rail network and boost the power supply fourfold to 8,000 megawatts haven’t been fully achieved, said Girma Seifu, the only opposition legislator of 547 members of parliament.

“At this point in time we’re just importing sugar,” he said by phone from the capital yesterday. “The plan is just for propaganda purposes rather than implementation.”

Turkish contractors Yapi Merkezi Insaat VE Sanayi AS have begun work on a northern railway line from Awash to Woldiya, while a Brazilian-funded project to the southwest hasn’t begun, Hailemariam said. Russia plans to fund a link to Kenya, according to the Railways Corp. “Because there is an economic slowdown those countries have not been able to release the
loans,” Hailemariam said.

Loan Maturities

An advance of $300 million from the Export Credit Bank of Turkey funds the Turkish project at rates of Libor 6 month plus 3.75 percent, according to the Finance Ministry. Credit Suisse Group AG (CSGN) is loaning $450 million at the same rate and $415 million at Libor 6 month plus 4.59 percent for the line, the data says. All deals were signed July 7. The maturity of the recent loans for rail and sugar is around 12 years. That compares with a four-decade repayment period for World Bank advances, which come with interest rates of about 0.75%.

Ethiopia is on the “cusp” of going from a low to moderate risk of debt distress, the International Monetary Fund said this month. “Commercial loans to finance large public investment projects by state-owned enterprises could increase the risk to Ethiopia’s public debt sustainability,” it said. To contact the reporter on this story:William Davison in Addis Ababa at
wdavison3@bloomberg.net

To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net

Michael Gunn, John Bowker

Source: addisnews.net