Tender for breweries re-opened - BGI offering 50 million

The Reporter (Addis Ababa); March 28, 2000

Addis Ababa - A restricted tender, with the cost of the shares revised by recognized bidders for the three breweries - the Meta Abo, Harrar and Bedele Share Companies - was opened Monday at the Ethiopian Privatization Agency for the second time.

The bidders - the Ethiopian Breweries SC and the Brasseries Internationles Holding Limited (BIH, the parent company of BGI) - have presented their proposals to the Agency's tender committee.

The Ethiopian Brewery SC proposed to buy the three breweries at a total cost of 46.7 million dollars for 100% of the shares, payable in birr (149,440,000) and in US dollars (28,020,000). The company offered to pay 32.3 million dollars for the Meta Abo Brewery alone, and 8.9 million dollars for the Harar Brewery. It also offered 5.5 million dollars for the Bedele Brewery.

Meanwhile, the BIH has offered 50 million dollars to buy 100% of the shares, and 33 million for 60% of the shares of the three breweries.

According to Ato Wolde Giorgis Woldu, member of the agency's tender committee, both bidders have presented bid bonds. The BIH in its revised bid has raised its offer from the previous one which had failed because the amount in the bid was below the Agency's expectations, he said.

It is to be recalled that the first tender for the breweries was recently cancelled by the Privatization Agency.



Ethiopia Earns 16.5 Million Dollars From Sugar Exports

PANA; March 28, 2000

Addis Ababa, Ethiopia (PANA - ) Ethiopia earned 16.5 million US dollars in 1999 after exporting 100,000 tonnes of sugar to eastern African countries, according to an official of the industry.

The sugar was a surplus from a total of 2.7 million tonnes produced by the country's four state-run factories, Shewaferaw Girma, general manager of the Ethiopian Sugar Industry Support Centre said Monday.

He added that the annual sugar consumption in Ethiopia was about 1.7 million tonnes, leaving the rest for exports.

Shewaferaw said although the 100,000 tonnes was the biggest exported so far, it earned less due to a fall in prices of the commodity on the world market.



Ethiopia Readying for Drought Emergency, Ambassador Says

By Charles E. Cobb, Jr.; allAfrica.com; March 28, 2000

Washington - "In the last couple of years the rainy seasons have failed," says Ethiopian Ambassador Berhane Gebre-Christos, explaining the drought that continues to batter his nation.

Although the official statistic of 8-million affected may seem to echo the devastating 1984-85 drought and famine, the Ambassador is hopeful that the human devastation of that crisis won't be repeated. "In terms of people dying in thousands, people being displaced out of their houses and villages, people being put into camps," he says, "that hasn't happened yet and I don't think that it will."

One big difference between then and now, Gebre-Christos argues, is that the military regime which ruled Ethiopia for two decades ignored or minimized problems while his government is committed to preventing the starvation and famine that accompanied past droughts. New agencies like the Disaster Prevention and Preparedness Commission (DPPC) have the country better prepared, he says. There is a strategic food reserve and "local people are able to mobilize resources and energy instead of simply folding their hands."

While acknowledging that eight million affected people is a sizable number, Ambassador Gebre-Christos emphasizes that most of Ethiopia's 60 million people remain productive. "We talk about this 'disaster,' but that does not mean the entire population is affected. It means certain regions of the country have not produced food. In other parts of the country farmers have produced food that can be purchased and transported to drought-affected areas."

Lack of a developed infrastructure, however, adds to the problems caused by weather. "If you have a disaster in Florida, you can easily move what you need from other cities." Besides internal transportation bottlenecks caused by lack of resources, the simmering conflict with neighboring Eritrea makes receiving drought aid from outside the country more difficult. Traditionally, landlocked Ethiopia has used Eritrean ports.

And despite being better prepared, worry about the weather is never far away. The ambassador and others agree that because "Beleg" rains that should have begun four weeks ago have yet to fall, Ethiopia's food situation threatens to worsen. Speaking at a recent Food Security forum of a Social Studies conference held in Addis Ababa, Ethiopia's capital, the country's acting minister of agriculture, Dr. Mengistu Huluka, warned that without significant international assistance, "tragedy of immense proportions" is possible.

On March 22, the head of the government's drought commission, Simeon Mechale, said food aid from foreign donors still falls far short of anticipated needs. The United States, Britain, Germany and the UN World Food Program have promised to provide 382,660 metric tons of food. About 800,000 metric tons are needed.

After a four-day visit to Ethiopia as part of a two-week tour of the Horn of Africa, USAID Assistant Administrator for Humanitarian Response, Hugh Parmer, concluded that worsening conditions required immediate assistance from the United States.

On March 23, he announced an airlift of blended foods, therapeutic milk, and high-energy biscuits for the especially hard-hit Southern and Southeastern areas of Ethiopia. "Unless the rest of the international community mobilizes immediately to respond to the U.N. and Ethiopia's requests for help, we are in danger of having a preventable food shortage turn into widespread famine, Parmer warned."



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