ETHIOPIA – Ethiopia has inaugurated the new PhiBela Edible Oil Factory worth Birr 4.5 billion (US$113.7m) in the Amhara regional state built by the multi-sectoral company, Belayneh Kinde Group.
According to reports by New Business Ethiopia, the facility with a daily production capacity of 1.5 million litres of palm oil is deemed to be the largest edible oil factory in the country to potentially cover 60% of the country’s demand when fully operational.
It will play a significant role of stabilizing the domestic market of edible oil before venturing into the export market. In addition, it is expected to create 3,000 jobs.
Ethiopia’s local production of edible oils is estimated at 31,000 metric tons annually by USDA against consumption of 615,000 metric tons, of which 95 percent is met by imports.
PhiBela is built at the newly opened Bure Integrated Agro-industrial Park, covering over 240 hectares of land.
The Industrial Park is the first among the four pilot IAIPs and Rural Transformation Center facilities to be launched by the government of Ethiopia, targeting the establishment of 100 medium and large food processing factories.
The Agroindustry parks are built in different parts of the country with a total investment of over US$730 million.
Prime Minister Abiy Ahmed commissioning the Bure industrial park stated that, “When fully operational, it will create 100,000 permanent jobs & nearly 900,000 temporary jobs. This feeds into the government’s efforts to build market-oriented agriculture & strengthen the agro-processing sector.”
“Bure for the past 700 years has been a key trading hub. The agro industry park and factory inauguration will take Bure back to its historical significance,” he added in a tweet.
The inauguration of the new edible oil factory comes barely a year after French development financial institution Proparco and Ethos Mezzanine Partners announced a US$22 million investment into Turaco, an Ethiopian FMCG holding company managed by 54 Capital PE Advisors.
Turaco manufactures and sells edible sunflower and soya oil under the brand name Tena, alongside other personal care products.
The growth capital raised was to be channelled funding the expansion of Turaco’s manufacturing operations, carried on by Health Care Food Manufacturers SC and ZAK Ethiopia Manufacturing & Trading Plc.
Some of the capital was to be applied in the upgrading of these facilities to meet IFC performance standards relating to Environmental, Health, Safety and Governance.
Turaco embarked on a bold expansion strategy, materially increasing the capacity and effectiveness of its subsidiaries’ production facilities, as well as expanding their range of product offerings, to meet growing demand for its market-leading brands in Ethiopia.
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