Ethiopian Investment opportunities Coffee
Transcript
Ethiopian Investment opportunities Coffee
Ethiopian Investment opportunities Coffee Expand production of high quality coffee beans SNNPRG, Kele, Amaro, Ethiopia The company is engaged in coffee production and export. This exceptional coffee is exported through Ethiopia's only female miller/exporter, Asnakech Thomas. Native to the Amaro region, Asnakech decided in 2005 to return to Ethiopia and improve the coffee quality and living conditions of her community. The coffee is scrupulously harvested, sorted, and milled at her facilities, so she has remarkable control over her crops. As a brewed coffee, the Amaro Gayo is a remarkable sonata of baking spices and aromatic woods. The project employees about 32 permanent an over 200 temporary workers. The company is interested to improve the technical and management skills of the staff. The project has financial constraints to achieve its goal to market value added roasted coffee. Project code: ETH014AA Amount of investment: USD 390.000 Type of Business: Coffee export Type of collaboration: Loan, Market access, Management expertise , Technical expertise, Technology transfer / Supply Services Expand quality Ethiopian coffee for export markets Addis Ababa, Addis Ababa, Ethiopia The company Aster Bunn is engaged in coffee processing, roasting, grinding and distribution in Addis Ababa and other major cities. It is a well known company in the field of coffee processing and distribution. The company has three coffee shops in Addis Ababa. The major challenge the company is currently facing is penetrating international markets. The manager is keen to develop partnerships with companies interested in distributing quality Ethiopian coffee in foreign markets. Project code: ETH015AA Amount of investment: USD 500.000 Type of Business: Coffee roasting Type of collaboration: Loan, Market access, Equipment purchase Expand coffee production and export high quality roasted coffee Addis Ababa, Addis Ababa, Ethiopia The company is engaged in the coffee processing, roasting, grinding and distribution. The company buys coffee through the national distribution channel acceding to high quality coffee beans; it adds value processing the raw material and markets the products locally for supermarkets and end users. The company can count on a solid experience in this field and on an increasing demand, both local and international, for high quality roasted coffee. The project aims to expand the current production capacity and to meet the demand of additional external markets. Project code: ETH016AA Amount of investment: USD 2.150.000 Type of Business: Coffee Roasting, Beverage and Drinks Import, Tea Packaging Type of collaboration: Loan, Market access, Technical expertise Coffee roasting and grinding Addis Ababa, Addis Ababa, Ethiopia The company is engaged in both the primary processing, such as washing and drying of coffee, and in the secondary level value adding roasting and grinding. The two owners possess a coffee plantation of 10,000 hectares and they are willing to expand the current processing plant in order to fully utilized land resources and increase the production volume. Despite of the recent establishment of the company, it has recorded positive feedbacks so that five new locations are expected to be opened in the capital city and new foreign markets are intended to be penetrated. Project code: ETH017AA Amount of investment: USD 1.050.000 Type of Business: Coffee production, Coffee Roasting and Grinding Type of collaboration: Joint Venture, Market access, Management expertise , Technical expertise Ethiopian quality roasted coffee for export markets Bole Sub-City, Addis Ababa, Ethiopia Kabu Coffee plc. is planning to expand the production volume of Ethiopian quality roasted coffee in order to put into place an export strategy able to reach several world markets. Kabu Coffee plc. is a sister company of METAD plc. engaged in agriculture production and marketing. Kabu Coffee plc. specifically established coffee plantations in the Southern Nations and Nationalities Regional Government. While establishing the nursery and planting, the company exports high quality coffee to a demanding market that involves countries such as Japan, Korea, Russia etc. The company established a state of the art quality control lab. This is considered to be the first initiative of such type in Africa. Project code: ETH019AA Amount of investment: USD 1.200.000 Type of Business: Coffe roasting and cafe business Type of collaboration: Market access, Buy-back arrangement Coffee roasting plant expansion Addis Ababa, Addis Ababa, Ethiopia The project consists of building a new roasting plant for coffee beans. The company is in fact currently engaged in coffee beans production and collection, selling the product to the ECX. By means of the investment, it aims to expand the production cycle to processing and value addition. The strategy consists of providing the company with new processing equipments and a specialized work force in order to sell processed products to European markets. The company already possesses a startup plan of US$ 3,000,000 and is so seeking a source of financing and partnerships to realize the project. Project code: ETH020AA Amount of investment: USD 3.000.000 Type of Business: Coffee production, query production, transportation Type of collaboration: Loan, Market access, Equipment purchase , Management expertise , Technical expertise, Technology transfer / Supply Services Organic coffee beans production Yirgacheffe, SNNPR, Addis Ababa, Ethiopia The Union is engaged in the production of organic coffee beans for the export market using ecologically sound and sustainable productive processes. The project aim is to expand the current production in order to penetrate additional foreign markets. Project code: ETH023AA Amount of investment: USD 3.500.000 Type of Business: Producing Coffee Beans Type of collaboration: Joint Venture, Market access, Management expertise , Technical expertise, Marketing expertise, Technology transfer / Supply Services, Joint R&D Forest-coffee honey production and distribution expansion Boditi Town, SNNPR, Ethiopia The project aims to expand the production and distribution of high quality honey and its biproduct (wax) at competitive and profitable prices for the local market. The strategy consists of investing in the production of such forest-coffee honey, which can vaunt a particular taste and some medical properties. In particular, the cooperative wants to invest in capacity building and improve its market strategy in order to add value to honey processing and open the company to new markets. Project code: ETH064AA Amount of investment: USD 50.000 Type of Business: Apiculture Type of collaboration: Joint Venture, Loan, Market access, Buy-back arrangement, Equipment purchase , Technical expertise, Marketing expertise, Joint R&D Organic coffee production, processing and export Addis Ababa, SNNPR, Ethiopia The company is actively investing to expand the business in both upstream and downstream directions of the coffee value chain (from production to grinding). They are planning to start their own organic coffee farm, and to obtain the organic certification. This would allow them to directly produce and export high quality organic coffee both green and specialty and roasted coffee. The company is family owned and was founded in 1971 in Harar. Is the 18th Ethiopian exporter by volume and it is growing by 5% annually. It is managed by the founder's daughter which is an experienced manager, with a very strong knowledge of the market and who is willing to reinforce and expand her business. The company's main focus is quality and it aims to high end markets. She is actively investing in the workforce and in trainings to ensure talents retain and low turnover. The roasting activity is already in operation and they export very high quality coffee, suitable for foreign markets. The coffee plantation is also to be exploited for the production of coffee honey (see project B). Project code: ETH082AA Amount of investment: USD 1.050.000 Type of Business: Agri-business, coffee exporter Type of collaboration: Market access, Equipment purchase , Management expertise , Technical expertise, Marketing expertise High quality Ethiopian Coffee processing and export Addis Ababa, Addis Ababa, Ethiopia With the scope of having more control on the supply chain and quality of their products, ADDIS EXPORTER is an established and reputable company that has been exporting Ethiopian coffee for many years. This is a new project that seeks to launch a coffee plantation in order to export directly to existing customers and investment in roasting plant. Project is in the initial planning phases, and proponents are looking for investors with similar objectives of producing the best quality coffee, that can also provide financial support and knowledge. Strength of the project: We have years of experience in the coffee export field, and we are connected with strong overseas partners that could purchase our products. Project code: ETH084AA Amount of investment: USD 2.000.000 Type of Business: Agri-business Type of collaboration: Joint Venture, Loan, Market access, Equipment purchase , Management expertise , Technical expertise, Marketing expertise Roasted coffee business development Yeka Sub city, Addis Ababa, Ethiopia Ethiopian population is estimated to be 90+ millions, of which coffee sustains the livelihood of 15 million people. Coffee is vital to the culture and socioeconomic life of the state. The Ethiopian economy is highly dependent on coffee as it contributes to more than 25% of the country’s foreign exchange earnings. The best quality green coffee bean from Ethiopia is usually exported on a bestselling day for not more than 6 dollars per 1 kilo (2.2 pounds). This amount is distributed between all parties that are involved in the coffee industry; starting from farmers who grow coffee, to processors that wash and remove the skin of the coffee cherry, to transporters that bring the coffee from Ethiopian coffee growing regions to the capital of Addis Ababa, and exporters who pack and export coffee in containers from Djibouti Port to many destinations all over the world. Our research suggests that once the green coffee bean reaches its destination and finally to roasters, the coffee is sold in a range between 21 and 45 US dollars depending on the market region. 1 kilo of coffee can produce as much as 90+ cups of coffee we consume. We believe this distribution is unfair for the country that produces the coffee, thus we are working toward a goal with a fair distribution to all the ones involved. Our Coffee is not only grown and cultivated in coffee birth place, but also roasted and packed in Ethiopia. While drinking our coffee, you can enjoy the authentic taste of coffee and be part of the African story that promotes products that are fully made in Africa. Strength of the project: Young entrepreneur with recognized management and business development skills, awarded by UNDP, and selected by Forbes and BBC. High quality premium coffee with an attractive price and professional service. Since we are located in the same land that produces some of the finest coffee in the world, we have access to abundant unlimited fine Ethiopian coffee. Human resource is relatively cheaper with a large young population that is driven. Located in East Africa, we have access to markets in Asia, Europe, Africa and North America. Government incentives and access to GSP+ & AGOA privilege. Project code: ETH085AA Amount of investment: USD 300.000 Type of Business: Roasted coffee & processed spices Type of collaboration: Market access, Equipment purchase , Marketing expertise, Technology transfer / Supply Services Coffee production, processing, packaging and export Addis Ababa, Addis Ababa, Ethiopia Currently mainly focused on the green coffee export activities, ALFOZ is actively investing to expand both upstream and downstream in the coffee value chain by increasing the production of green coffee and by producing processed, roasted coffee to be packaged on site and exported as a finished product. Today their capacity utilization is around 10% and they want to run at full capacity for which they need a stable and sustainable demand. Strength of the project: The company do not need to invest more as the facilities, lands, machinery, etc� are already there and ready to be used. They are looking to fully exploit their current available capacity by developing the sales. The Company is one of the biggest coffee exporters in Ethiopia, managed by experienced entrepreneurs, motivated to diversify and expand their business. They have already purchased brand new machineries to roast and package the coffee and have two lands in the South-West of the country and have also applied to get lands near Harar, a well-known coffee area, where they plan to expand their farming activities. Project code: ETH091AA Amount of investment: USD 2.000.000 Type of Business: Coffee exporter Type of collaboration: Market access, Technical expertise, Marketing expertise, Technology transfer / Supply Services Organic coffee production, processing and export Addis Ababa, SNNPR, Ethiopia The company is actively investing to expand the business in both upstream and downstream directions of the coffee value chain (from production to grinding). They are planning to start their own organic coffee farm, and to obtain the organic certification. This would allow them to directly produce and export high quality organic coffee both green and specialty and roasted coffee. The company is family owned and was founded in 1971 in Harar. Is the 18th Ethiopian exporter by volume and it is growing by 5% annually. It is managed by the founder's daughter which is an experienced manager, with a very strong knowledge of the market and who is willing to reinforce and expand her business. The company's main focus is quality and it aims to high end markets. She is actively investing in the workforce and in trainings to ensure talents retain and low turnover. The roasting activity is already in operation and they export very high quality coffee, suitable for foreign markets. The coffee plantation is also to be exploited for the production of coffee honey (see project B). Project code: ETH082AA Amount of investment: USD 1.050.000 Type of Business: Agri-business, coffee exporter Type of collaboration: Market access, Equipment purchase , Management expertise , Technical expertise, Marketing expertise Coffee roasting business expansion/development Bole, Addis Ababa, Ethiopia The company has gradually grown to medium scale level by processing coffee intended for both domestic and export markets. Since its establishment the company has been making sound full profits and expanded its working areas, increased its staff, and now is looking for further expand to a big capacity processing plant, modernize and to drastically increase its market share so as to become a prominent market player in the coffee roasting business. PROJECT STRENGTHS: The company is committed for quality with no compromises; it employs efficient and trained workforce with high involvement of women. Limited overhead cost of labor that helped the company to work at a minimum profit margin. A reputation showing progressive growth trend registered by sustained increase in sales value and profit for the last seven years. The trust and goodwill established among the customers for the last seven years had been proven by having customers from international companies. Strong relationship with buying clients, supplying customers and many GOs and NGO stakeholders. Good record carrier performance among the financial institutions/Banks. Planned capacity building tasks for workers and managers with exposure visit, market assessment in foreign countries. Active member of Ethiopian coffee roasting association and Addis Ababa Chamber of commerce and sectorial association. High flexibility of management to look alternative business and fast decision to penetrate new markets. Project code: ETH119AA Amount of investment: USD 600.000 Type of Business: Coffee Roaster Type of collaboration: Market access, Equipment purchase , Management expertise , Technical expertise, Marketing expertise, Technology transfer / Supply Services, Joint R&D Coffee Roasting, Grinding and Packaging plant establishment Ketema Sub City, Addis Ababa, Ethiopia The project profile envisages the establishment of a plant for the production of roasted and milled coffee for export & domestic market with a capacity of 192 tons per annum. The principal raw material are export standard, local washed (LW) & local unwashed (LUW) green coffee available locally. The total investment requirement is estimated at about Birr 8,677,150.00 (or US$ 500,000), out of which Birr 6,838,000.00 (US$ 330,000) is required for plant and machinery. The product can get its market outlet through the existing wholesale and retail network that includes department stores, merchandise shops and supermarkets. The project is financially viable with an internal rate of return (IRR) of 18.90 % and a net present value (NPV) of Birr 10.82 million, discounted at 9.5%. The project will create a backward linkage effect with coffee plantations. The establishment of such plant will have a foreign exchange earning effect by exporting its product to the global market. Project code: ETH120AA Amount of investment: USD 500.000 Type of Business: Coffee roasting, grinding & packing. Type of collaboration: Joint Venture, Loan, Market access, Technical expertise, Marketing expertise, Technology transfer / Supply Services Roasted Coffee production improvement and business development Addis Ababa, Addis Ababa, Ethiopia The company plans to alter the market dynamics of coffee in Ethiopia by improving farming, roasting and service standards. It operates a commercial size roasting plant with annual potential production capacity of 135 tons. Product and service quality is improved by bringing traditional designs and fabric patterns from coffee growing communities into coffee bags/cases made out of cotton, wood and bamboo while maintaining international packaging standards. This created market linkages among handicraft, hotel and tourism stakeholders. The Company now plans to further improve production efficiency and environmental safety with the purchase of an automatic weight and fill machine and afterburner, respectively. It will also establish a research facility to oversee product and business development, and an eco-lodge with an integrated and conservation-oriented coffee farm. We will transform coffee varieties of Ethiopia from a consumable commodity into an exchangeable gift item. Strength of the project: Relatively high market demand for our products, and excellent research and marketing experience to ensure a leading role in competition and strategic positioning; Well-established local retail outlets and feasible contacts in the US and UAE based retail outlets; World recognized, technologically advanced and high quality roasting and packaging machineries and accessories including packaging materials to ensure and sustain production, competitive edge and product differentiation (i.e. quality, cost and efficiency); Excellent expected ROI provides insight into the feasibility of the business plan; Unwavering commitment of the local investor; Detailed understanding and planning of the business; High acceptance and recognition of our brand and products within a relatively short period; Relatively high level of expertise in coffee, especially when compared with local investors; and Significant demand for quality coffee products in the local market. Project code: ETH130AA Amount of investment: USD 7.500.000 Type of Business: Coffee Roasting Type of collaboration: Joint Venture, Loan, Market access, Sub contracting, Buy-back arrangement, Equipment purchase , Management expertise , Technical expertise, Marketing expertise, Technology transfer / Supply Services, Joint R&D