Defense’s MetEC gives delicious 1st class contract to MIDROC, Ethiopia’s tyre monopoly

26 Jun

    Editor’s Note:

    Ethiopia is a country repeatedly seen taking decisions that unmake its long-term interests, the cumulative effect of which may endanger its own very survival. Unfortunately, the country and its people have this unique ability of protecting themselves from any regrets – The manage to prove such observations and concerns seemingly wrong. They then proceed to ostentatiously displaying the country’s immense capacities to make palaces in the sky for others, not just billions of dollars.

    No doubt, privatization facilitates competition. Competition generates efficiency. Nonetheless, these are processes not evident turnkey certainty cast on stone. the final outcome is left to good economic and political polices, not to who is the owner of the means of production.

    That is why economics prides itself with its offer of caution, warning about the dangers of ignoring the various relationships between costs and benefits of any policy decision. Those come in simulations that serve as tester of outcomes, before a company, a nation or an individual jumping headlong into the unknown.

    Recall Access Capital’s shenanigans within the cover of its beautifully paginated first Macroeconomic Handbook in 2011/2012. It was lauded at home and abroad. Certainly, it is a very good effort, although self-serving in a bad way.

    At the time, this page warned of the ploy in there. It indicated that its piece of work represented Access Capital’s “hunger and drive” to get rich quick with its insistence on privatization of Ethiopian Airlines, among others, as it complained about the slow pace of land grab in the country. In so doing, it was lauding the growth and transformation plan (GTP), for a reason, as do the cadres of the regime to a point of drop dead boredom.

    Not long after, the National Bank of Ethiopia (NBE) also realized that Ermias Amelga, Access’s chairman was a crook. NBE barred him from any future bank leadership role in the country. This was after, he picked and wasted up billions of birr from here and there.

    Now he has quietly run away to the United States, leaving behind investors with either debts or shattered dreams. As it happens, this week Addis Fortune wondered Is There Redemption for Access Real Estate?

    When the newly-invigorated parliament after the death of Meles Zenawi pointed out the weaknesses and bad practices of the Ethiopian Investments and Privatization Agency, its Director-General Beyene Gebremeskel, whose agency has been known as MIDORC’s buddy, was the first to protest, as reported by the Reporter. Whose interests should the country serve, some powerful politicians or that of corporate suck up?

    It is time Ethiopia stopped to carefully think how it should best serve its interests as a nation and the interests of its people! It is time to shake off corrupt senior officials facilitating from within corrupt practices that with every passing year is pulling down Ethiopia into becoming a failed state!


 

Posted by The Ethiopia Observatory

by Aderajew Asfaw

Signed market and technical assistance agreement with MetEC Horizon Addis Tyre is to produce 22 different sizes tyres for the various vehicles the Metal and Engineering Corporation (MetEC) produces.
Horizon Addis, the sole manufacturer of tyres in the country, has been supplying a limited amount of tyres for the market and has not been able to cope with the public’s demand in the last 40 years. This company has today a new market and will also receive technical assistance from its latest customer, according to the cooperation agreement it signed with MetEC on June 18.

Umesh Davera, General Manager of Horizon Addis, who believes that both Horizon Addis Tyre and MetEC share a common vision of making Ethiopia self-reliant, said that the company has been trying hard to develop the right product in vast quantities to minimize the country’s dependency on imported tyres.

Horizon is planning to produce tyres in 22 different sizes in the current fiscal year. According to the General Manager, all these sizes are presently imported from abroad. He said this move is a manifestation of Horizon’s commitment to the nation. The tyres will also be available for other interested buyers.

Davera appreciated MetEC for its decision to buy Horizon’s products as well as provide assistance, and promised to deliver the best products. “No local industry can develop without the support of the government,” Davera said. “The decision of MetEC to build in-country and work with local industries by substituting imported products with local products will be a strong message to all other government enterprises and their departments who hesitate to use local products,” he added.

“We should be proud of our Ethiopian products. We are indeed grateful for MetEC for selecting us as reliable and dependable tyre partners for the future,” said Davera.

Tena Kurnde (Col.), Deputy Manager of MetEC, said this agreement will save foreign currency, create job opportunities and transfers skills and knowledge. He said his corporation will use the tyres for all types of vehicles it produces.
In 2004, the then Addis Tyre Share Company was renamed Matador-Addis SC after the Slovak Matador Rubber Company, which had bought 61 percent of the Company’s shares.

In 2011, the company was again renamed; this time to Horizon Addis Tyre when Horizon Plantation Plc, owned by the Ethiopian-born Saudi billionaire, Sheik Mohammed Hussein Ali Al Amoudi, took over the shares of Matador. Twenty nine percent of Horizon is still owned by the government.

Established in 2010 by the Council of Ministers, MetEC is a governmental institution set up to realize the government’s Growth and Transformation Plan (GTP) and accelerate the ongoing transition of the country into industrialization. The corporation comprises 15 semi-autonomous, and integrated manufacturing companies that are operating in more than nine different sectors.

Source: Capital

*Material added.

Related articles:

New Tyres Skid Into the Market

Al-Amoudi’s Horizon Acquires Matador-ATC’s 69pc for $18m

Ethiopia: Horizon Addis Studies Production of Bigger Tyres

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