TIRET October 2012 Issue - MIDROC Ethiopia


TIRET October 2012 Issue - MIDROC Ethiopia


Awassa Chip Wood

Factory: Redefining

Construction in


October 2012

Free Copy

New Column


Heights of




Nani Building:

The Gem of Addis

By Omer Red...pp.44

Change & Change





NMiC’s New Gold



A Leap to Personal

Greatness by Uncovering

The True Self

By Dr. Selam Aklilu...pp.52

The MIDROC Ethiopia Group Corporate Magazine

The state of transposition, transformation and transition

from past to present and future.... pp.28

It has always been my dream to participate in the

development of Ethiopia in the biggest way possible.

This possibility has been created by the Ethiopian

Government and its visionary leader, Prime Minister

Meles Zenawi. I am heart-broken by his passing.

My Investment Group, MIDROC Ethiopia, has entered

into multi-sectoral and huge investments never seen

before. In the manufacturing sector, Derba-MIDROC

Cement is one of a kind in the East African Region. I

believe Derba-MIDROC Cement, not only overwhelm

the supply of cement but also shattered the backbone

of cement shortage in the fast growing construction

sector of Ethiopia. The upcoming Toussa Steel in the

Kombolcha area will also be a significant addition into

the metallurgical industry of Ethiopia.

The discoveries of large gold reserves by my Mining

Companies are only telling about the various untapped

mineral potentials of the country. Venturing into the

natural gas, petroleum and coal exploration and

development is not beyond the reach and scope of

MIDROC Ethiopia. The other most important natural

resources of the country are the availability of suitable

agricultural land and water.

It is my earnest wish, as it has always been Prime Minister

Meles’s target, to see a relatively prosperous Ethiopia

where poverty and food insecurity will be in the realm

of history. In the bid to cope up with the food deficit

situation with which this country has grappled for so

long, determined as I am, I have earmarked billions of

Birr to the agricultural sector of the economy.

Chairman’s Message

We are currently engaged in massive agriculture food

production establishing two large companies; Horizon

Plantation Plc and Saudi Star Agricultural Development

Plc, for the introduction and development of state of the

art commercial farms and agro-industrial complexes.

The acquisition of export-oriented state farms such as

Bebeka Coffee Estate S.C is the other dimension my

investment is involved in. These commercial farms will

not only modestly contribute to the food supply chain

of the domestic market, but also open the gates of the

Middle East market for Ethiopia’s agricultural and agroindustrial


In line with these ambitions, the executives, the senior

management and professionals of MIDROC Ethiopia

Investment Group are ready to introduce good

corporate governance for sustainable and meaningful

contribution of our investment to the Ethiopian Economy

incorporating environmental and corporate social

responsibility over and above regulatory frameworks.

I am pleased that MIDROC Ethiopia Investment Group is

a true partner in the realization of the current National

Growth and Transformation Program engineered by

Prime Minister Meles Zenawi; and will continue being so

in the series of such national development programs in

the future. May his soul rest in peace.

I wish all Ethiopians “A Happy, productive and

prosperous new year”.

TireT October 2012 1

The Ethiopian year that just ended brought on the

country and the MIDROC Ethiopia a great loss through

the passing of the nation’s visionary leader, H.E. Prime

Minister Ato Meles Zenawi. We pay our saddest tribute

to the family of Prime Minister Meles Zenawi, and to the

people and government of Ethiopia.

During the year we also saw great achievements by the

Group. Derba-MIDROC’s inauguration, announcing the

beginning of the end to dire shortage of cement hence

ensuring the continuation of infrastructure development

in the country. The immense discovery of gold reserve

by the National Mining Corporation Plc. is yet another

major achievement and a significant contribution

by MIDROC Ethiopia to the economic growth of the

country. The commencement of production by Awassa

Chip Wood Factory of high quality particle wood

products for domestic and export markets from local

renewable eucalyptus plantation is another milestone.

TIRET’ reports on these and much more success.

Our Main Story by Emeritus Professor Johannes Kinfu

and Ato Asrat Bulbula focuses on global, regional

and national changes, alerting our group companies

to prepare for change management applying good

corporate governance and succession plan.

Incidentally by Dr. Berhanu Tadesse explains about

ICASA 2011which attracted over 10,000 participants,

and Sheikh Mohammed H. Al-Amoudi’s contribution of

more than USD 10 million for its success.

In our Health Column, Ato Yilma Yemane-Berhan in

Editor’s Note

his article, Coffee and Health, describes the scientific

findings on coffee and human health.

Further, Doing It Otherwise by Dr. Selam Aklilu tells us

how we can attain a better life by dissolving a false-self

and replacing it by true-self.

On Writers’ Column, Mr. Omer Redi describes

how harmony of buildings gives cities their identity.

Emphasizing on Nani Building’s exterior and interior

qualities, he indicates ways for Addis to create such


Our new Column, Ascending Heights of Success

highlights major accomplishments of MIDROC Ethiopia

Group Companies. The first article of the Column

explains National Mining Corporation’s ascendancy to

the heights of success with the discovery of a variety of

minerals, culminating years of exploration and millions

of Birr investment.

We wish to tell our readers that we are having a special

issue of ‘TIRET’ due to be published very shortly in tribute

of H.E Prime Minister Ato Meles Zenawi’s extraordinary

contributions and support in the economic development

and growth of the country most particularly in the

implementation and smooth running of the multifaceted

investment drives of MIDROC Ethiopia.

Editors of ‘TIRET’ wish our Chairman, Sheikh Mohammed

H. Al-Amoudi and his family, staff and employees of our

Group Companies , readers of ‘TIRET’ and all Ethiopians

a “Happy and Prosperous Ethiopian New Year.”

TireT October 2012 3


Awassa Chip Wood

Factory: Redefining

Construction in


October 2012

Free Copy

New Column


Heights of


Change & Change



means “EFFORT” in Amharic and is a

Corporate Magazine of MIDROC Ethiopia

Investment Group.


Teklu Haile

EdIToRIal boaRd

Tadelle Teferra (Chairman)

Melaku Beza

Brook Debebe

Johannes Kinfu (Emer. Professor)

Asrat Bulbula

Yeshimebet Demissie

Aselefech Getachew


Yeshimebet Demissie



Nani Building:



A Leap to Personal

Greatness by Uncovering

The Gem of Addis NMiC’s New Gold The True Self

By Omer Red...pp.44 Discoveries...pp.56 By Dr. Selam Aklilu...pp.52

The MIDROC Ethiopia Group Corporate Magazine

The state of transposition, transformation and transition

from past to present and future.... pp.28

dEpUTY EdIToR-in-ChIEf

Aselefech Getachew


Haimanot Negussie & Martha Kassahun


Degife Tekle, Tadesse Demissie,

Kibrealem Yalew

pUblIShEd bY

The Communication & Public Relations

Department of MIDROC Ethiopia

Tel: +251 11 554 99 69

Fax:+251 11 554 99 55

P.O.Box: 8677

mid.pr@ethionet.et, mid.pr12@gmail.com


Graphic design

Aychew Design Works TM

Tel: +251 913 13 63 76/62 42 76


October 2012

MIDROC Ethiopia

All rights reserved. Reproduction in part

and or whole is allowed with a written

authorization of the Publisher.


Mohammed Internatioal

Development Research & Organisation



Change & Change


COVer STOrY 34

MiDrOC News 7

TireT October 2012


Incidentally 40

Writer’s Column 44

health 48

doing it otherwise 52

ascending heights of Success 56

Message of Condolence

The Investment Companies of Sheikh

Mohammed H. Al-Amoudi, MIDROC

Ethiopia and its Group and affiliate

Companies, wish to express their deepest

and heartfelt condolence due to the

untimely loss of the Ethiopian Prime

Minister, H.E Ato Meles Zenawi.

We treasure his life long and steadfast

determination and contributions for

promoting investment, development and

economic growth in the country.

MIDROC Ethiopia and its Group and

affiliate Companies reaffirm their

readiness to actively continue and

participate in the investment activities

in Ethiopia in a sustainable manner,

especially in the current GTP and the

subsequent national spans of economic


We will always cherish the legacy, H.E

Ato Prime Minister Meles Zenawi, has

left behind and our profound sympathy

will stay with his family, government and

people of Ethiopia, while taking solace in

his charted out road map of development

for the country.


Agreement Signed for Construction of Toussa Steel Factory

Shiekh Mohammed H. Al Amoudi signing the agreement for Toussa Steel Factory


An EPC turnkey project contract agreement, involving USD 800

million for the construction of an integrated steel manufacturing

plant, Toussa Steel Factory Plc., was signed on October 2, 2012

between Sheikh Mohammed H. Al-Amoudi, Chairman and Owner

of MIDROC Ethiopia, and Mr. G. Bennedetti, President and CEO of Danieli

Spa of Italy. Danieli SPA is one of the largest steel plant manufacturers in the

world with an experience of over 100 years in the business.

Present at the signing ceremony were H.E. Ato Demeke Mekonnen, Deputy

Prime Minister of FDRE, H.E. Ato Ayalew Gobeze, President of the Amhara

Regional State, Ministers, senior government officials and invited guests.

Toussa Steel Factory Plc. is located at Galissa; 5 km. north of Kombolcha in

the Amhara Regional State, 376 km away from Addis Ababa. The Factory

will have a production capacity of 1,350,000 tons per year (“tpy”) of hot

rolled long steel product and will be built to international standards. The

use of state-of-the-art technology will enable the Factory to produce varied

product mix and production capacity to be maximized.

Toussa Steel Factory Plc. is designed to be environmentally friendly and

incorporates state-of-the-art technology to mitigate harmful environmental

pollutants in compliance with applicable Ethiopian and international

environmental protections and emission limits associated with steel

manufacturing and rolling.

Sheikh Mohammed H. Al-Amoudi in his remark at the signing ceremony,

disclosed his determination to engage in large scale heavy industries

sighting the readiness of three other upcoming large projects including the

Edible Oil Factory Project in Bahir Dar, the construction contract agreement

of which will be signed with the contractor from Great Britain in the coming

week. The construction contract

agreement for a Genes and a Cable

Project will also be signed shortly.

He also reaffirmed his preparedness

to invest and work for a sustainable

development of Ethiopia and

emphasized the importance of

partnership of government with the

private sector and the people.

Ato Haile Asegidie, Executive

Director of Derba MIDROC Cement

Plc. addressing the gathering

explained that the completion of

Toussa Steel Factory Plc. will be a

game changer in Ethiopian steel

manufacturing industry as the

erection and operation of Derba

MIDROC Cement Plc. has been for

the cement industry.

According to him, the establishment

of the Factory is extremely

important to further advance

Ethiopia’s economic performance

by providing the critical inputs: steel

bars, sections and billets, for the

enhancement of the construction

industry, metal engineering and

other related sectors.

The factory during construction

will give job opportunities for over

2,000 people and when completed

provides 600 jobs for young people

around the area. One hundred

engineers will be employed in

various managerial activities in the


Toussa Steel Factory plans to

undertake an expansion of the Plant

in the future by constructing a steel

melting plant, continuous casting

machine vacuum degasser and a

rolling mill with auxiliary facilities

capable of producing 300,000 tpy

of rails and medium sections.

TireT October 2012 7

Photo: Fortune Newspaper


Sheikh Mohammed H. Al-Amoudi contributes to making

ICASA 2011 a success

Sheikh Mohammed receiving a special Award from H.E. President Girma Wolde Giorgis for his oustanding contribution

The financial contributions of Sheikh Mohammed H.

Al-Amoudi to the success of the “16 th International

Conference on AIDS and Sexually Transmitted

Infections in Africa (ICASA 2011)”, which took place from

December 4-8, 2011, in Addis Ababa exceeded USD 10


Sheikh Mohammed H. Al-Amoudi was awarded with a

Medal and a Certificate by the government of Ethiopia

and the Society for AIDS in Africa for his outstanding

contributions to the Conference.

After handing over the Award to Sheikh Mohammed H.

Al-Amoudi, the Ethiopian President H.E. Girma Wolde

Giorgis, expressed his appreciations and said that Sheikh

Mohammed H. Al-Amoudi has been contributing

significantly to the ongoing development activities of


Sheikh Mohammed H. Al-Amoudi after receiving the

Award, praised all stakeholders and said that he is happy

and the Award is a pride not only to him but also to his

family, his Companies and colleagues as well.

The Millennium Hall was refurbished specifically for

the Conference by the order of Sheikh Mohmmed H.

Al-Amoudi, who personally followed the progress.

The improvements to the hall included new meeting

and event halls, air conditioning, audio visual facilities

furniture etc. all of which was offered free of charge for

the Conference.

The Conference was attended among others, by the late

Ethiopian Prime Minister Ato Meles Zenawi, former US

President George W. Bush, former Botswanan President,

Festus Mogea, UNAIDS Executive Secretary, Mr. Michel

Sidibe, Ethiopian Minister of Health, Dr. Tedros Adhanom,

prominent personalities and about 10,000 scientists,

health workers, policy makers, representatives of civil

society and people living with HIV from 103 countries.

TireT October 2012 9


Derba-MIDROC Cement Factory Inaugurated

Derba MIDROC Cement Factory, the largest

in the country, with a construction cost of

USD351 million (USD 151 million is Owner’s

contribution and USD 200 million is loan)

sprawling on 123 ha. of land was inaugurated on

January 29, 2012. The total cost including, the road

construction and transformer installations, goes up to

USD 600 million. Daily capacity of the Factory is 8,000

tons of cement.

Present at the inaugural ceremony were the late Ethiopian

Prime Minister, H.E. Ato Meles Zenawi, ministers, senior

government officials, prominent personalities, invited

guests, Sheikh Mohammed H. Al-Amoudi and Ato Haile

Assegdie, Executive Director of Derba MIDROC Cement.

Addressing the ceremony, the late PM H.E. Ato Meles

Zenawi appreciated the construction of this huge

cement factory and said that it is a pride for all that

the construction of the first phase is completed and the

factory has projected future expansion undertakings.

10 TireT October 2012

Factory View of Derba MIDROC Cement

Sheikh Mohammed H. Al-Amoudi also expressed his

satisfaction and said that his dreams are coming true.

The construction of the project had employed 5,000

Ethiopians and 1,500 Chinese. The factory expects to

make as many as 20,000 people gainfully employed in

the production and distribution process.

Derba MIDROC Cement has joined the industry with

high hopes for the local economy. The Ministry of

Industry had projected an annual demand of eight

million tons for the fiscal year 2011/12, whereas the

supply was only 6.64 million tons. Part of the 1.36 million

tons gap was filled by Derba MIDROC Cement, which

had started operation in the second half of the year.

“Once we enter the market at full capacity,” said, Ato

Haile Assegdie, Executive Director of Derba MIDROC

Cement, “we are confident that all cement needs of

Ethiopia will be satisfied in the next 3-5 years at an

affordable price.”


The late H.E. Ato Meles Zenawi with Sheikh Mohammed H. Al-Amoudi and Ato Haile Assegidie at the inaugural ceremony

Derba MIDROC Cement provides a credit facility and

own transport to deliver the product to the customer’s

door step. Individual buyers and contractors are only

expected to pay 50% of the price for the cement they

are buying, if they can provide an unconditional bank

guarantee (for contractors) or a similar guarantee from

their employers, for individual buyers. The other half is

payable in 60 days.

As long as the guarantee is in place, Derba’s customers

can keep buying the cement, which became available at

a low price of Birr 170, per quintal (100kg) excluding VAT

and transport according to Ato Haile Assegdie.

Cheque for Bond Purchase Handed Over

Handing over ceremony (from left to right) Ato Isayas Bahire,

Dr. Arega Yirdaw and Ato Teklu Haile

This price is true for PPC type cement while the OPC is

sold for Birr 220, per quintal (100kg) excluding VAT and


Derba MIDROC Cement has 750 Volvo trucks that

deliver cement to clients within five days of order. This

delivery initially started covering areas within 600kms of

Addis Ababa, with the aim for the future to cover the

rest of the country.

Derba Cement Factory is a subsidiary of Al-Muwakaba

for Industrial Development and Commerce, where

Sheikh Mohammed H. Al-Amoudi is a major shareholder.

A bond purchase worth of Birr 26 million by employees

of the MIDROC Ethiopia Investment Group, to help

finance the Grand Ethiopian Renaissance Dam Project,

was handed over by Dr. Arega Yirdaw, CEO of the

MIDROC Ethiopia Technology Group, to the President

of Development Bank of Ethiopia, Ato Esayas Bahire, in a

ceremony organized at the premises of the Bank in the

presence of Ato Teklu Haile, Designate and Manager of

Finance Department of MIDROC Ethiopia.

The amount was raised through a contribution of a one

month salary of the employees of the MIDROC Ethiopia

Investment Group. It is to be recalled that Sheikh

Mohammed H. Al-Amoudi’s pledge of Birr 1.5 billion

has already been cashed.

TireT October 2012 11

Toussa Steel Factory Plc. on the Move

Toussa Steel Factory Plc. owned by Sheikh Mohammed

H. Al-Amoudi, and a member of the Derba MIDROC

Group, has embarked upon building a Steel Plant with

a capacity of 1.3 million tons per year in Kombolcha

town of the Amhara Regional State. The new Steel Plant

with a melting shop and three rolling mills is capable of

producing 800,000 tons re-bars, 150,000 tons wire rods,

400,000 tons light sections and 300,000 tons medium

sections and R 60 rails per annum.

HWC Swiss AG, one of the highly experienced consultant

conglomerate in the field of iron and steel plant project

management and engineering supervisory services, has

been selected as a Consultant for the construction of

Toussa Steel Factory Plc. and an agreement between the

two parties was signed on February 21, 2012.

According to the Consultancy Contract Agreement,

the Consultant will provide services based on the EPC

Contractors’ proposal, contract preparation, project

management and engineering supervision. The contract

amount signed is about Birr 80 million.

Various EPC Contractors have submitted their bid

proposal on January 18, 2012 and the process of

evaluation and negotiation with prospective bidders

was concluded in July 2012.


Ato Haile Assegidie (right) with Eng. Shimelis Eshete, the Project Director and Ato Wondimu Gualew at the bidding ceremony

The formal contract signing is expected to be finalized

shortly. The project contract amount is USD 570 million

and the construction, completion and commissioning of

the Factory Project is expected to be completed in 36


The Company is currently undertaking sub-soil

investigation and site topographic surveying while

the hydro geological and geophysical study is already

completed. Negotiation for land lease payment

agreement with Kombolcha Town Administration is also


Partial view of Bidders

TireT October 2012 13

The 13 th Consultative Group Meeting Held


Ato Teklu Haile (right), Ato Brook Debebe and Ato Kidanu Chekol, the resource person, at the opening of the meeting

The 13 th Consultative Group (CG) Meeting of MIDROC

Ethiopia Investment Group and Affiliate Companies

hosted by Ethio-Leather Industry Plc. (ELICO), was held

on February 23, 2012 at the Sheraton Addis focusing

on “Constraints and Future Prospects of the Leather

Sector in the Ethiopian Economy”.

The meeting was attended by CEOs, General Managers,

senior advisors and other senior management staff of

the Group Companies.

Ato Teklu Haile, Designate and Manager of Finance

Dept. of MIDROC Ethiopia and Chairman of the CG,

in his opening address, expressed his gratitude to the

host company, ELICO, and said that ELICO needs to pay

its share of responsibilities in the mitigation measures

of problems in the leather sector by way of installing

environmentally compliant facilities and participating in

the control of animal skin diseases in order to improve

quality of raw materials supplied to the market.

In his introductory remarks, Ato Astrat Bulbula, MIDROC

Ethiopia’s Senior Advisor and CG Secretariat Member,

also emphasized that the meeting could be a ‘birth

place of big ideas...and is blessed by a new concept that

‘small is beautiful’ and ‘big is even more beautiful’.

Welcoming participants Ato Brook Debebe, ELICO’s

General Manager, explained ELICO’s achievements in

terms of improved productivity, efficiency, quality and

image building as a result of implementing Quality

and Environmental Management System as well as ISO


A brief presentation on the theme of the meeting was

made by the resource person, ELICO’s Consultant, Ato

Kidanu Chekol, focusing on global position, resource,

value chains, constraints, marketing and future prospects

of leather and leather products.

The major export markets for ELICO products are

Europe, North America, Japan, South Korea, China,

Indonesia and some African countries, according to

an “Overview of ELICO” presented by three senior

managment members of ELICO.

A view of participants at the meeting

TireT October 2012 15

The 14 th Consultative Group Meeting Conducted


Ato Teklu Haile (right) with Ato Getachew Degefu and the resource person, Ato Mengistu Tefera, at the opening of the meeting

Hosted by MIDROC Energy House

Electromechanical Services (MEH-EMS) Plc.,

the 14th Consultative Group Meeting (CG)

of MIDROC Ethiopia Investment Group and Affiliate

Companies, which focused on the energy sector, was

held on May 24, 2012 at the Sheraton Addis. The

meeting discussed on “Prospects and Challenges in the

Development of the Energy Sector of

Ethiopia” and was attended by CEOs,

General Managers, senior advisors and

other senior management staff of the

MIDROC Ethiopia Head Office.

In his welcoming address, Ato Getachew

Degefu, MEH-EMS General Manager,

highlighted the opportunities and

challenges in the electromechanical

services business. He also briefed

participants on the achievements of

MEH-EMS, which he said now sees

“some light at the end of the tunnel”.

Previously known as ABB-MIDROC Industrial Services

PLC, MEH-EMS was established in 1999 with 4.6

million Birr capital with founding partners ABB-MEA

and MIDROC Ethiopia holding 51% and 49% shares,

respectively. Its founding objective is establishing an

electromechanical contracting company of good

standing using the knowledge base and brand name of

ABB. Current paid up capital of the Company is Birr 6.79

million with 67% share held by EH-KSA which took over

ABB’s shares in 2003 – and 33% by MIDROC Ethiopia.

In his conclusion, Ato Getachew indicated the existence

of very high market opportunities for EM contractors

both within and outside the MIDROC Ethiopia Group;

and the serious constraints facing such companies at

every level.

Ato Teklu Haile, Designate and Manager of Finance

Department of MIDROC Ethiopia and CG Chairman,

said in his opening statement, that the CG was initiated

and proved by all members as solid

foundation for lasting partnership and

unity. He called the CG “Coalition of

the willing who are determined now

and in the future for the great success

of MIDROC Ethiopia and Affiliate


Referring to the theme of the 14 th

CG, he stated that energy supply

has great role in production

processes and electromechanical

(EM) communications. The Group

companies, hence, should be ready to

tackle all challenges in the business including energy

supply shortage through strategic plans and utmost

effort, he added.

Ato Asrat Bulbula, addressing

the opening of the meeting

The resource person of the meeting Ato Mengistu

Tefera, a Consultant, in his presentation focused mainly

on economic development and energy resources in

Ethiopia, current status and development trends of

the use of the Ethiopian energy section and areas of

investment opportunities in the sector.

A special time was allotted for presentation on MIDROC

Ethiopia Communications and Public Relations

Department and TIRET Magazine.

TireT October 2012 17

15 th Annual General Managers’ Conference Held

The 15 th Annual General Managers’

Conference of MIDROC Ethiopia

that was attended by 40 participants

from the different Group Companies

was held in Adama town.

The Conference deliberated on

the theme “Financial Reporting

Standards and Sustainable


In his introductory

remarks, Emer. Prof. Johannes

Kinfu, Director of Training and

Development of MIDROC

Ethiopia highlighted “Financial

Reporting Standards and

Sustainable Reporting” was very

timely in relation to the Growth

and Transformation Plan (GTP) the

government has declared and the

upcoming issuance of proclamation

of financial reporting law in the

country, including the international

reforms on audit and the rendering

of incompatible services by auditors.

Ato Teklu Haile, Designate and

Manager of Finance Dept. of

MIDROC Ethiopia and Chairman

of the Training Committee,

opening the Conference noted

the importance of the topic

to the country’s “transformation”

policy and enhancing transparency

and accountability, and stressed the

need for providing adequate and

reliable information for business

and auditing and appropriate

governance strategy.

Ato Teklu Haile opening the Conference


Emer. Prof. Johannes Kinfu delivering his opening remarks

He also emphasized the importance of such conference for “working

together and sharing knowledge.”

The first part of the Conference focused on the draft Financial

Reporting Proclamation of the Ethiopian government and its implications

to MIDROC Ethiopia. Ato Gemechu Dubiso, the Auditor General of FDRE

explained the issue at length in his presentation under the title “Financial

Reporting Standards in Ethiopia – Status and Perspectives.”

The presentation was followed by extensive discussion on implications of

tax laws in varying financial reporting practices; whether the new law would

require changes in accounting system; and the role of internal auditors.

The second agenda was on synergy among companies under MIDROC

Ethiopia with particular focus on inter-company property transfer.

Also at this Conference, General Managers of Ethio Leather Industries

Plc. (ELICO) and Nyala Insurance S.C. presented a brief introduction

of activities about their current status and new developments in

their respective companies. They emphasized the importance of buying

the products and services of Group Companies to ensure synergy.

The second part of the program was conducted by Dr. Selam Aklilu, Director

of the first Chiropractic – Health Wellness Clinic in Ethiopia, on the idea

of “making a difference” through “self-appreciation” and related exercises.

During the session she explained how self appreciation can influence the

outlook of life and related changes of attitude to life.

Group picture of participants

TireT October 2012 19

Plant goes operational

Senior Officials of MIDROC Eth. listening to explanations at the plant

The Summit Soft Drinks and Natural Mineral Water Plant was inaugurated

on May 26, 2012 introducing into the market all MOHA’s soft drinks and

Kool water packaged in PET bottles, the first in the country, Kool water

is also packed here. The new Plant was constructed at a cost of Birr 230


Summit started in 1997, when it was established as Summit Partners Plc,

to market Schweppes soft drinks. Its products were well accepted by

consumers, but it could not beat the competition. It then started bottling

Coca Cola products in a deal with East African Bottling S.C., but that deal

also failed. In February 2002 it entered into a similar packaging deal with

MOHA Soft Drinks Industry S.C. MOHA took full ownership of the factory

in October 2006.

Road Project Inaugurated

MIDROC Construction

Ethiopia Plc. completed

the construction of the 30mt. wide

and 5.4 kms. long Road Project and

handed it over, on May 13, 2012 to

Inaugural ceremony of the road

the Addis Ababa City Road Authority.

The Yerer Ber-Yerer Goro School

AAWSA Treatment Plant Road

Project was officially inaugurated

by Ato Yohannes Bekele, Chief


MOHA Soft Drinks Industry S.C.

refurbished and maintained the

machineries to boost Summit’s

production capacity from 1.5

million cases to four million cases,

transforming the company into

modest profitability.

The packaging comes in three sizes:

mobile (0.5lt), family (1.0lt) and

party (1.8lt). The Plant packages

13,500 bottles per hour or 189,000

bottles a day in two shifts, according

to Ato Kefyalew Bersisa, the factory’s


“The Plant has made us beneficiaries

of the latest technology,” he said

during the inauguration.

He added that the whole

management and the employees

were proud.

According to Ato Getachew Birbo,

CEO of MOHA Soft Drinks Industry

S.C.’, the Plant will serve the Ethiopian

and South Sudan markets.

Executive Officer of Bole Sub City,

in the presence of Ato Negussie

Abera, Deputy General Manager

of MIDROC Construction Ethiopia

Plc., Eng. Endrias Kebede, the

Counterpart Engineer of Addis

Ababa City Road Authority, officials

of the Addis Ababa City Road

Authority and representatives

and prominent persons of the

surrounding area.

The Road Project includes two

roundabouts and two bridges with

a span of 60 mt. and 40 mt.

The total contract value of the Road

Project amounts to Birr 95 million.

TireT October 2012 21

Bebeka Coffee Estate S.C. Engages in Spice Exports

Ginger plantation

Bebeka Coffee Estate S.C. a member of MIDROC

Ethiopia Investment Group, exported Ethiopia’s

first ever black pepper.

Previously under the Coffee Plantation Development

Enterprise and established 33 years ago, Bebeka

Coffee Plantation became a joint venture between

the Ethiopian government and Horizon Plantation Plc.

under an August 2011 agreement.

BCESC in 2011/12 budget year exported 42 metric tons

dried black pepper mainly to Europe and Asia. Export

of other agricultural products including ginger, honey

etc. will start soon.

The export size is expected to rise significantly in the

coming years as production will increase following

completion of ongoing expansion on the size of land

dedicated to spices and introduction of improved

agronomic practices.


Black Pepper Farm

Located in South Bench and Guraferda Weredas of

Bench Maji Zone of the Southern Nations, Nationalities

and Peoples Regional State (SNNPRS), 595km southwest

of Addis Ababa, in an area known as home of Arabica

Coffee, BCESC covers 10,030 hectares of land. Of this,

about 6,949 hectares is already cultivated 5556 hectares

Arabica Coffee (Coffea Arabica) 1,000 hectares ginger,

315 hectares black pepper and 78 hectares other crops.

Major commodities either currently produced or soon

to be introduced are washed and sun dried coffee,

ginger, black pepper, turmeric, cinnamon, cardamom,

vanilla, banana, rubber tree and honey.

Over 26 different varieties of coffee are all grown under

tree shade at an altitude of 1,000 to 1,368 meters above

sea level having specific aroma, flavor and acidity.

Bebeka is currently working to start supplying specialty

coffee to the world market.

TireT October 2012 23

ELFORA Inaugurates Metehara Export Abattoir

H.E. Ato Wondirad Mandefro, State Minister of Agriculture (left), Sheikh Abdella

Hussein Ali Al-Amoudi and CEO Dr. Arega Yirdaw at the inauguration

The ELFORA Agro Industries

Plc has upgraded the

Metehara Export Abattoir

with an investment of Birr 15

million. The abattoir now has new

machinery, pens for 4,000 cattle

and 10,000 shoats, two slaughtering

lines fitted with air conditioners,

freezers and other facilities.

A member of MIDROC Ethiopia

Technology Group, ELFORA was

established in 1997 by acquiring

eight enterprises from the

government. It focuses on poultry

farming, crop production and meat

processing businesses.

Metehara Abattoir, which lies on

50,000sqm plot, 200kms east of

Addis Ababa, was acquired in 2007.

It is one of three abattoirs ELFORA

operates, including the Debre Zeit

and Melge Wondo Abattoirs are all

export certified. With annual export

capacity of 6,000tns of goat meat

and mutton, and 4,000tns of beef,

ELFROA exports meat products to

Saudi Arabia, United Arab Emirates,

Egypt and other African countries.

Its agro-processing units in

Kombolcha and Melge-Wondo

produce canned minced meat

sauce, beef in jelly, vegetable soup

and tomato paste.

The Metehara upgrading project,

which started in January 2010,

was undertaken to meet export

standards and the growing market.

Prior to the upgrading, the abattoir

First Corporate Code of Conduct (CCC) Issued


was restricted to night shifts

only because it did not have air

conditioning system. The cooling

system of its chillers was also

inefficient. Hence, it was running at

lower capacity facing risks of losing

export market.

Abdella Hussein Ali Al-Amoudi

Establishment, an affiliate Company

in Jeddah, ELFORA’s exclusive

representative and agent in the

Middle East, Africa and Asia, and

its subcontractor, Samara Trading

Establishment, both from Saudi

Arabia, were responsible for the

installation of insulating panels and

air conditioning equipment, while

a local contractor was responsible

for the asphalt work. ELFORA’s own

engineers and technical service staff

also handled many other activities,

enabling the upgrading to be

completed in time.

ELFORA’s poultry farming produces

50 million table eggs and 1,000tns

of broiler meat at present; both

projected to grow to 100 million and

10,000tns, respectively, following

upcoming modernization.

ELFORA also cultivates 6,200ha of

land growing maize, haricot bean,

mung bean, chick pea, grapes and

various vegetables in different parts

of Ethiopia.

Equatorial Business Group Plc. (EBG) issued on April 2012, its Corporate Code of Conduct (CCC) that established

16 behavioral standards for strict adherence. In his message of endorsement of the CCC document, the General

Manager of the Company, Ato Tadelle Teferra said “… the Code is the basis of the company’s operations on trusttrust

and we are committed to up-hold the highest ethical standards while receiving and delivering products and

services to and from clients.” He expressed his strongest convictions that all employees and management group

shall strictly comply to all provisions prescribed in the CCC in the course of the operations of the company.”

TireT October 2012 25

NOC Participates at 2012 African

Downstream Workshops

From left to right, Ato Tadesse Tilahun, Chief Executive Officer of NOC-Ethiopia,

ARA President and the Executive Secretary and representative of Lesotho

National Oil Ethiopia (NOC) has participated at the African Downstream

Workshops, organized by CITAC Africa Ltd, at Le Palais des Congrés de la

Palmeraie as part of the African Refineries Association (ARA) Week, from

March 22 – 23, 2012, in Marrakech, Morocco.

NOC, the only participant from Ethiopia, was represented by its CEO, Ato

Tadesse Tilahun.

CITAC Africa Ltd, established in 1998 in UK, is an independent consultancy

company focusing on energy market in downstream Africa, especially

refining, trading and petroleum products marketing. It organized the

workshops jointly with ARA, established in 2006, becoming “the voice not

just of refiners but of all downstream oil in Africa,” according to its website.

Over 300 participants from Africa and the rest of the world took part at the

interactive Marrakech workshops. Participants gained insights into African

and international oil markets; new technologies and methods in refining,

distribution, marketing and financing of African downstream oil; and shared

experiences with Pan-African and international companies.

The workshops also offered an unequalled forum for networking with key

players in the African downstream sector, including refiners, marketers,

international and local traders, banks, storage and distribution companies,

national oil companies and regulators.

Speakers at the ARA Week emphasized the need to invest in downstream

oil infrastructure to ensure efficient, economic and safe distribution of high

quality oil products at a time when products of imports were forecast to

double by 2020.

Mrs Anabela Fonseca, President of ARA said members agreed to encourage

governments and local associations to assist in establishing common fuel

specifications along with major supply chains.

New Model



On the occasion of the 7th Customer

Appreciation Week and the

launching of the new Heavy Duty

UD truck model, named “QUON”,

Nyala Motors S.C. that joined the

MIDROC Ethiopia Investment Group

recently, conducted free technical

inspection for customers of UD

trucks, and offered discounts on

Spare Parts of the trucks.

The special program that was held

from June 17 to July 18, 2012 was

organized by the Company, in

collaboration with the manufacturer

of UD Truck Corporation and the

supplier, Marubeni Corporation.

Many UD customers during this

period enjoyed free technical

inspection and benefited through

the discounts on Spare Parts at

the Head Office Sales Counter and

Branch Offices in Hawassa, Bahir

Dar, Dire Dawa and Mekelle.

Nyala Motors S.C. is well known for

its major brands; UD heavy duty

trucks and light duty Nissan Motors

vehicles and forklifts. The Company,

since joining the MIDROC Ethiopia

Investment Group, has made major

renovation of its Branch Offices and

restructured the organogram of the

Company for efficient management.

It has also upgraded and conducted

expansion works at its Branch

Office in Bahir Dar building a

1100sqm. Branch Office Workshop

facility to provide comprehensive

services to customers. Similarly

the construction of a new facility

Branch Office in Hawassa is being

undertaken. The Company has

currently 200 employees in the

Head Office and the different

Branch Offices.

TireT October 2012 27


Emer. Professor Johannes Kinfu Wins International Recognition,

Dr. Berhanu Tadesse Awarded

Emeritus Professor Johannes Kinfu,

the only Accounting Professor in

Ethiopia, has obtained the “Training

& Development Leadership Award”

from Mumbai, India based World

Human Resource Development

Congress in recognition of his efforts

to create efficient human resource

through training.

The award ceremony took place

during the World HRD Congress

2012, which was held at Taj Lands

End from February 16-18, 2012 in


He has earlier been recognized as

Ethiopian Accountancy Father” by

Awards of Emer. Prof. Johannes Kinfu

The Ethiopian Quality Awards Organization (EQAO)

has on April 8, 2012 recognized KOSPI, a member of

MIDROC Ethiopia Technology Group, with Honorary

Award under the Manufacturing Companies Category.

Another member of the MIDROC Technology Group,

Modern Building Industry (MBI), was also recognized

with a Certificate at the Second Ethiopian Quality

Awards ceremony held at the Hilton Addis.

General Manager of KOSPI, Ato Solomon Getu, received

the award from Ato Kassa Teklebirhan, Speaker of the

House of the Federation.

KOSPI has been awarded after it was evaluated based

on seven selection criteria on which it has scored

remarkable results, according to Ato Solomon.

the London based Qualified and

Certified for Charter Accountant.

Emeritus Professor Johannes has

taught under and post graduate

students at the Addis Ababa

University for 44 years. He has

provided human resource trainings

to Ethiopian Airlines and the

Commercial Bank of Ethiopia, and

authored accounting and auditing


He has been serving MIDROC

Ethiopia as Director of Training since

1996 and is the Deputy General

Manager for the MIDROC Education

and Training Institute Project (METI).

KOSPI Wins Honorary Prize of Ethiopian Quality Award

Dr. Berhanu Tadesse, Manager,

Medical and Professional Services

Department of SalaM Health Care

Plc., a member of MIDROC Ethiopia,

who chaired the Leadership

Program Committee “of the 16th

International Coference on AIDS

and Sexually Transmitted Infections

in Africa (ICASA 2011)”, which took

place from December 4-8, 2011, in

Addis Ababa, was also recognized.

Dr. Berhanu Tadesse was awarded

with a medal and certificate of

appreciation for his outstanding

contributions to the Conference by

the government of Ethiopia and

Organizers of the 16th ICASA.

Dr. Berhanu Tadesse’s Certificate and


Speaking on his part the Guest of Honour, H.E. Ato

Hailemariam Desalegne, Deputy Prime Minister and

Minister of Foreign Affairs of Ethiopia, said that if

manufacturing and other services companies in Ethiopia

meet the requirements of international standard, they

can speed up the country’s development efforts and

increase its role in the international market.

“While I appreciate those of you who have stood up

with determination for change and participated in the

competition, I congratulate the winners,” he added.

Dr. Admasu Tsegaye, Board Chairman of the EQAO and

President of the Addis Ababa University, on his part said

winners of the award were selected for their manifested

and outstanding performance in productivity, efficiency

and overall execution which met international criteria.

TireT October 2012 29

National Motors Corporation

Introduces New Model Vehicles

Chevolet CRUZE (The Unique Sedan) and ISUZU NPR Insulated Van

National Motors Corporation Plc.;

an affiliate Company of MIDROC

Ethiopia, introduced various new

model vehicles at an Auto Show held

on May 22, 2012 at the Sheraton


The Corporation launched the Isuzu

NMR and NPR Insulated Van and

the Chevrolet CRUZE at the event

attended by over 60 guests from

governmental, non-governmental

and private organizations as well

as MIDROC Ethiopia Investment


Among the dignitaries were Ms Rita

Kavashe, Director of General Motors

Sub-Saharan Africa, and Mr Roger

Abington, Business Development

Manager for Sub-Saharan Region.

Speaking on the occasion, Nebiat

Gessesse, Sales Manager of NMC,

said the corporation has strategic

plan to remain abreast with the

fast growing economy of Ethiopia.

The Company is committed to

meet the diverse needs of its

customers offering variety of top

quality products and services, he

added, and introduced these latest

automobile, trucks and vans to the

Ethiopian market.

The unique CRUZE sedan is the

most popular and sold of Chevrolet

automobiles with global sales of

nearly 670,000 in 2011, the highest

global sales ever for General Motors


The CRUZE brings excitement to

the entire General Motors Sub-

Saharan Africa family paving the

way for the next 100 years, Ms Rita

said and added. “A Chevrolet is now

sold somewhere in the world every

6.5 seconds”. According to her, GM

plans to significantly grow and make

Chevrolet a hometown brand in


The light duty trucks – Isuzu NMR

- and NPR insulated van – are

made with simple and functional

interior and exterior. The Isuzu

N series further brings higher

performance on every level of

styling, engine, safety, economy and

the environment.

NMC announced that it started

body building for various trucks.

One of the vans exhibited at the

show, made for transporting

perishables like flower and fish, is

locally assembled by NMC.


American Scholars

Visit Unity University

Two American scholars from Fielding

Graduate University in California

visited Unity University (UU) to

explore areas of cooperation.

Dr. Kitty Epstein and Dr. Norman

Harris came to Addis Ababa

upon the invitation of Dr. Arega

Yirdaw, President of UU and CEO

of MIDROC Ethiopia Technology

Group, to explore ways to establish

joint programs.

Accordingly, the visitors held a

series of discussions with senior

administration and academic staff of

UU on areas of cooperation between

the two Universities. They also

attended classes and addressed UU

during a “Workshop on Environment

of Educational Leadership and

Teaching and Learning Activities”.

The visitors also recommended

areas of research that the two

institutions can carry out jointly.

Dr. Epstein suggested research on

“Teacher Action” and “Land Use” in

Addis Ababa as the best possible

topics to consider.

Dr. Harris told UU’s Newsletter that

the initiative for the cooperation

between the two universities is

indicative of the leadership quality

the UU enjoys.

The visit by the two scholars has

not only been highly educational

and interesting but it has also been

fruitful in pushing the proposed

cooperation program ahead.

TireT October 2012 31


NMIC Ventures with Government on Abijata-Shalla Soda Ash S.C.

The National Mining Corporation (NMIC) has acquired

62% share of the Abijata-Shalla Soda Ash Share Company,

entering a joint venture with the government retaining

38% of the shares.

The government’s contribution has been paid in the form

of all the assets of the Abijata Soda Ash Plant worth over

Birr 20 million, while NMIC and its partners have Birr 33

million of shares.

Established by the Ethiopian government and

commissioned in 1989, the Abijata Soda Ash Plant was

designed to produce 20,000 tpa of Soda Ash utilizing the

brine water of lake Abijata. It was established as a pilot

plant to eventually pave the way for the establishment

of an industrial scale plant with a production capacity of

200,000 to 1,000,000 tons per annum for export market

using the brine water of Lake Shalla.

Factories Under Kebire Enterprises Plc. Engage in Export

Tikur Abay Shoe S.C. Doubled Production


Tikur Abay Shoe S.C., a MIDROC Ethiopia Group Company,

has doubled its production capacity to 5,430 pair of

shoes. This result obtained after undertaking a major

expansion and rehabilitation work worth Birr 34 million,

has completely changed the image of the company and

diversity of products.

The Company has three factories with: two new lines of

machines from Italy; in one of the buildings with its own

office and other facilities and another line of machines from

the world wide technology leader, Desma of Germany, in

another building. The old refurbished machines are used

to produce military footwear popularly known as Keskis

Shoes, a name given by customers to express its durability.

The Italian line produces refined and quality civilian shoes

for export to Italy, Spain, Sudan, Canada and America.

The German machines are commissioned and will start

to produce safety shoes, military shoes of different types,

sport wears and durable shoes of double and single density.

A new all duty building about 8,000 sqm. wide to be built

in the center of the city is under design. The Company has

already opened up a fuel station for its own use.

Tikur Abay Shoe S.C. was transferred into the ownership

of MIDROC Ethiopia in 2006 under the government

privatization process. It is well known for supplying

32 TireT October 2012

Located 184 kms south of Addis Ababa in the Ethiopian Rift

Valley, the plant extracts Soda Ash from Lake Abijata. The

brine waters pumped from the Lake into pre-concentration

ponds are exposed for evaporation and then taken to a

series of crystallization ponds, to get the crude product

called trona. The trona is then harvested to be sold either

as it is or transported to a processing plant where it is

calcined, screened, crushed, centrifuged, washed and

processed into soda ash for local market.

The joint venture aims to introduce a new approach and

establish a new plant in the next five years at a cost of

about two billion Birr. The plant will produce export grade

soda ash of up to 200,000 to 1,000,000 tons annually using

brine water from the nearby Lake Shalla.

Preparations and project study are finalized to rehabilitate

the deteriorated existing plant so that it will continue to

operate until the new plant is established.

military footwear in Ethiopia and other African countries

and is ready to produce all types of shoes because of the

expansion project.

Almicom Agricultural Development & Management

Plc. and MAA Garment and Textile Factory Export


Almicom is a one of the MIDROC Ethiopia Group

Companies engaged in agriculture in Humera on 5,000

hectares of land. It has recently secured another 500

hectares of land in Raya, Mohony to grow horticulture

products for export. It is expected that it would totally

be managed by irrigation. It has 50 permanent and more

than 1,000 seasonal employees and produces sesame for

export, and cotton for MAA Garment and Textile Factory.

MAA Garment and Textile Factory has 1,450 employees

and a capacity of producing 4 million equivalent T-shirts

annually. Products of the Factory include: T-shirts, Poloshirts,

trousers, jeans, work and hospital wears, sport wears,

uniforms etc. It exports different textile and garments

to Germany, USA, Italy, Portugal, UK and China. It has

currently finalized preparations to export various products

to Sweden mainly to H & M. a famous world retailer. The

Textile Unit produces knitted fabrics and has a capacity

of spinning 10 tons/day, knitting 6 tons/day, dying and

finishing 7-8 tons/day. After passing a challenging project

phase, the company is now operational with a good image.


Horizon Addis Tyre Surprises Employees with Salary Raise

Board of Directors at the ceremony

Horizon-Addis Tyre Share Company, a

member of MIDROC Ethiopia, announced

pay raises during a colourful celebration

of Workers’ Partnership Day on June 16,

2012, held at the premises of the company.

The celebration, the first since ownership of the

company was transferred from Matador-Addis to

Horizon-Addis in January 2011, was held to introduce

new Board members to the staff and to brief them

about the future investment plan of the shareholders,

mainly Sheikh Mohamed H. Al-Amoudi and his vision

for the development of the country.

The plan includes manufacturing Light Truck Radial

(rim size 15” and 16”), with technical know how and

machinery from the German-based Continental Ag, the

fourth largest tyre manufacturer in the world. Currently,

all these tyres are 100% imported.

The Chairman of the Board of Directors, Ato Jemal

Ahmed, also said that shareholders intended to step up

the production capacity in quantity, quality, increasing

product portfolio and introducing new technology to

the country.

To the delight of the staff, he also announced a minimum

15% salary increase.

Ato Teklu Haile, Designate and Finance Manager of

MIDROC Ethiopia and member of the Board, Mr. Umesh

Davera, General Manager of the Company, and the

chairman of the Company’s Basic Labour Union, have

also addressed the employees.

Ato Jemal Ahmed, Chairman, Board of Directors handing over

the Award to one of the employees.

Ato Teklu Haile, urged the employees to work harder

for better results and to protect the company from

corruption and theft. Mr. Davera, on his part urged on

more emphasis on prioritizing quality, cost and service

to customers in order to face global competition. The

Labour Union Chairman reminded the employees of

the five-point regulation to which, he said, workers are


Also on the occasion, Horizon-Addis awarded 34 of

its employees with certificates for their outstanding

performances in 2011.

Employees attending the meetings

TireT October 2012 33


Change and Change Management

By Johannes Kinfu (Emer. Professor)

Asrat Bulbula

34 TireT October 2012



As long as there is life and activity there is change. Change

ceases when life stops. Change is an active movement

from what is to what is to be. It is a state of transposition/

transformation/transition from past, present and future.

To apprehend change one must consider bold changes,

subtle changes, sudden disruptive changes, smooth

changes, changes in substance and in form, change from

a level or stage of being to another, attractive changes

or antagonistic changes, voluntary versus mandatory

changes, physical, mental, intellectual changes, natural

changes and imposed changes. In the dynamics of

events, change is constant.

At the global level we are all appraised, amazed and

engulfed by changes in technology and innovation.

Change seems to be more real than ever, constant than

otherwise, and fast in ways “never seen or thought of”


Challenge of Change

Is change something to tout about or matter to be

confounded? Most of the time change becomes a

challenge when it is sudden, externally driven, as it









Change Management Diagram

entails resistance, at least initially or at the outset. For

to change from what one is used to or habituated to

is not easy, one has to be willing to “think outside the

Box”. Acceptance of uncertainty and being optimistic

are big challenges. As change is inevitable, see the big

picture, the forest, by being inquisitive; and not waste

vital energy by being negative.

Change Management

In the literature change has been treated philosophically,

economically, especially in terms of economic

development and growth, and in technical innovation

and productivity, and in relation to succession

management and human resource development. Most

significantly however, the meaning and development

of “change management” has undergone extensive

conflicting and complex debate culminating in the

acceptance of two component parts. On one side

is the technical and mechanical part dealing with

technological innovation for improving productivity

and performance. On the other hand it reckons the

importance of the psychological and human aspects of

change needed for adaptation for change. It is realized

now that the technological part of change should not be

overemphasized at the cost of the human/physiological


The first and foremost aspect of Change Management

is our understanding of the governing events of change.

Globally, unprecedented changes have taken place in

the last decade. The leading economies and powers of

the world have been shockingly affected by the 9/11

attack. The divide and suspicion between governments

and their citizens towards targeted populations and

among themselves widened like never seen in history.

Complex and intricate mechanisms of activities grew out

of this phenomenon.

The other major change was caused by the financial

crisis of 2007/8. The undercurrent of this event is

currently unsettling the Euro zone with no clarity of the

outcome. The economic development center of gravity

is seemingly shifting from the West to the East. The

world’s manufactured goods and products also seem to

radiate only from the East, primarily from China.

These are changes countries, governments and big

regional economic associations, are trying to cope with.

They have to manage the changes and the effects of

the changes.

Nationally, Ethiopia has also been witnessing changes

from within and without. Some of these changes are

the wave effects of the global change. Some are the

upheavals, political instabilities and uncertainties in

neighbouring countries. On the bright side, mega

projects are being pursued by the Ethiopian Government.

The Growth & Transformation Program envisages

huge hydro power complexes, fertilizer manufacturing

facilities, sugar estates and transport infrastructure, both

air and land.

In the world economic order and international trade,

Ethiopia is aggressively pushing for membership in

the World Trade Organization (WTO). Given the weak

competitive position of Ethiopia’s manufacturing sector,

there will be many hurdles to be tackled.

MIDROC Ethiopia Investment Group is the largest

private investment in Ethiopia. So the changes that

are happening globally, regionally and nationally

will definitely affect the MIDROC Group. Some of the

changes would come in moderately and lightly; so,

seemingly manageable. But some changes could comein

in big waves and storms.

MIDROC Ethiopia Investment Group, at present,

has entered into mega projects. The undertaking of

world scale manufacturing complexes such as Derba-

MIDROC Cement PLC and Toussa Steel Project, huge

agro-industrial and commercial farms such as Horizon

Plantations and Saudi Star’s Gambella Rice farm are

underway. Gold discoveries in unprecedented quantities

would put Ethiopia on the World Gold Reserve map.

These are just some of the changes that demand

paradigm shifts and challenges in the maintenance of

operational sustainability.

The MIDROC Group has to be well prepared to

manage and withstand these changes. Unless prior

embankments and retaining walls are properly built,

the waves that could have remained as manageable

waves could turn out to being like ”tsunamis”. The

foremost pillars of these embankments and walls are

Good Corporate Governance and Implementable &

Sustainable Succession planning.

Having realized these scenarios, the MIDROC

Ethiopia Investment Group has conducted a series of

preparatory awareness creating seminars and brain

storming sessions on Good Corporate Governance and

Succession Planning. Whereas the governance issue

would follow the Road Map as prescribed by the Private

Sector Development Hub of the Addis Ababa Chamber

of Commerce and Sectoral Associations the equivalent

for succession planning is being designed internally.

TireT October 2012 35

In focus


Redefining Construction in Ethiopia

About 10 years ago, Sheikh Mohammed

H. Al-Amoudi decided to put in a large

investment to establish the Awassa

Chip Wood Factory with a noble cause

of contributing to the growth of the

construction sector in Ethiopia. Over the

years, the Factory has proved that it is indeed able to

redefine construction in the country.

Registered at the Ethiopian Investment Authority (EIA)

on April 05, 2002, the Awassa Chip Wood Factory, is

among the large investments by Sheikh Mohammed H.

Al-Amoudi. Established with a paid up capital of Birr 28

million. The factory has started production in 2009.

During the last years of its construction period over

Birr 204 million was invested on import of machineries,

trucks and factory as well as office building construction.

The Awassa Chip Wood Factory now stands proud and

is a symbol of the determination of its Owner, Sheikh

Mohammed H. Al-Amoudi, to contribute to the growth

of the construction sector in Ethiopia.

36 TireT October 2012

Side view of the factory

The primary objectives of the factory are to manufacture

and market high quality particle wood products for

various applications in the local and export markets.

The purpose of the establishment of the factory,

includes forest development and harvesting of trees for

the production of board and projected expansion and

innovation plan for the manufacture and marketing of

high quality particle board with 6 mm – 40 mm thickness

and manufacture of various products such as laminated

panel, modern office and household furniture, joineries

including doors, windows and board for different


It is located in Hawassa City, 275 kms south of Addis

Ababa, in the Southern Nations, Nationalities and

Peoples’ Region (SNNPR) on a 69,000sqm plot. Its

annual production capacity of 43,000 cubic metres of

chip wood and an integrated forestry development on

985hactares of woodland, acquired under a 20-year

concessional agreement in Wolayta Sodo in the SNNPR,

constitute the core of the factory.

A view of the forestry development

The current product manufactured by the factory,

particle board, can be used for furniture making,

roofing, internal building, wall partition and also as

packing material.

The factory employs 130 professional and skilled

employees on a permanent basis and 500 casual

laborers. This will grow to 300 professional and skilled

employees when it begins operating at full capacity

(three shifts). The forestry development in Wolayta

Sodo also employs 500 local residents during harvest


Production Process

Chipwood is composed of wood particles mixed with

resin, as an adhesive, and wax and hardener; the mix is

treated under various temperatures, moisture, pressing,

curing and sanding conditions. The factory produces

chipwood size 11.20m x 1.83m, which can be resized in

to 2, 3, or 4 equal or different sizes.

It uses four types of raw materials: chipwood particles

(logs), urea formaldehyde resin (glue), wax and hardener

(Ammonium Chloride), all of which, except logs, are

imported at an annual cost of Birr 31 million.

Chip wood has two outer layers (surfaces) and a core.

The general steps used to produce particle wood include

wood material chipping, flaking, drying, classifying by

size, blending with resin, hardener and wax, forming

the resinated (glued) material into a mat, hot pressing

and finishing (cooling, trimming and sanding). The

process involves the use of chipping, flaking and drying

machines. A forming machine turns the glued material

into a continuous mat, which is cut into the desired

length. Furnace oil and wood dust are the energy

sources used for the drying.

Wood transported to chipper machine

Factory Input

The consumption of wood per annum is 18,167 m3 at

present, which will rise to 25,000 m3 in the near future.

The factory can use any kind of wood, but the preferred

wood type is Eucalyptus, because of its abundance and

easier replacement. Accordingly contract agreement

was entered with the Regional Government for the

use and management of forest on 985hectares of land

in Wolayta Sodo for the coming 20 years to ensure

sustainable supply.

Manpower Development and Training Schemes

In order to ensure that quality remains the business’s top

priority, the factory has adopted different approaches

in recruiting and nurturing its employees, developing

positive attitude towards learning, as part of the

management’s commitment to equip and groom each


Accordingly, on the job training is given for 3-6

months for new recruits to familiarize them with the

different machines and operations. Inviting expatriate

professionals to provide short-term training to employees

is also part of this Manpower Development and Training

Scheme. In addition, the factory is working with Hawassa

University in the “University-Industry Linkage Program”

for mutual benefit to train and familiarize students with

the industry and exchange technology and knowledge

with technologists of the University.

Development Partners

The factory’s development partners include Regional

and Zonal offices of SNNPR, Dashen Bank, Nyala

Insurance, the Commercial Bank of Ethiopia, MIDROC

Group Companies, Hawassa University, contractors,

small scale distributors and furniture manufacturers.

Special emphasis is due to MIDROC Ethiopia Head

Office for the unrelented support in all aspects, for the

TireT October 2012 37

Chipped wood ready for drying

development and smooth functioning of the factory.

The strong support and effort made by AHFA Plc to

promote and introduce the products to the market and

build the product demand to its present status is worth


In the future, the surrounding out growers who will

supply wood (log) and play a significant role to the

factory will also be the factory’s development partners.

Future Development Plan

At present the factory is supplying sanded board, but

market study about the consumption of laminated

wood for furniture manufacturing and panelling in the

country is underway inorder to select the ideal type of

lamination plant. The factory is also considering the

possibility of exporting its products; preparation to meet

the required standards is already in progress.

When the factory begins production at full capacity,

its annual turnover is estimated to reach over Birr 78


Part of the future plan includes cutting energy expenses

by at least 20% by substituting current oil consumption

with cheaper alternatives. The factory’s current annual

consumption of fuel oil, in addition to electricity, is 1.1

million litres. The cost of fuel is continually rising without

any sign of stabilizing. The price of oil has gone from

Birr 4 a liter to Birr 15.24 in just three years. This is

an increase of over 275%. The factory is working at

In focus

Products of the Factory

present to substitute as much as 20% of the fuel it uses

at the dryer burner by wood dust recovered from the

sanding process.

Maintaining Standard in the Business

Customers have very high demand for the factory’s

product, which is the leading brand in the current market.

Due to the unique behaviour of the product, such as

medium density, low thickness swelling, high bending &

tensile strength, the board is preferred by customers for

multi purpose consumption and has therefore, proved

to be customer’s first choice. To maintain its standard,

the factory regularly surveys the market collecting

information and feedback from customers. Reviewing

standards based on customer feedback; strengthening

the quality control system starting from approval of

raw material to the final product; and integrating the

activities of different departments has become more

important than ever before.

Social Responsibility & Safety Protection

In addition to the wood land it is managing in

Wolayta Sodo, the factory has plans to support local

development activities such as road construction, water

development and installing milling machines for the

society surrounding the plantation. It also provides

its employees with recommended safety protection

devices and training on fire fighting procedures and


TireT October 2012 39


ICASA 2011

By: Berhanu Tadesse M.D.

Leadership Program Committee Chair,

ICASA 2011,

SalaM Health Care, MIDROC Ethiopia

“A warm welcome to Addis Ababa!! Ethiopia is

honoured to host the 16th ICASA.” Those were the

words and sentiments of His Excellency, Meles Zenawi,

Prime Minister of the Federal Democratic Republic of

Ethiopia on December 5, 2011 welcoming ICASA delegates

to Addis Ababa. The late Prime Minister recalled that it is

now 30 years since the first case of AIDS was recognized,

it has since then claimed 30 million young lives, and

orphaned millions more. But since 1999, new infections

have declined, millions can now access ARVs, and PMTCT

is now more accessible than it was before. He thanked all

international partners who have contributed to providing

treatment for HIV/AIDS, particularly PEPFAR, which he

described as the single largest and unprecedented donor

to support the halt of the HIV pandemic.

He attributed Africa’s success in controlling HIV/AIDS to

aggressive social mobilisation and a positive approach, but

said more remains to be done.

The 16 th International Conference on AIDS and Sexually

transmitted infections in Africa (ICASA 2011) was successfully

held in Addis Ababa, Ethiopia from December 4–8, 2011 in

the Millennium Hall, specially prepared for the Conference.

ICASA is one of the major international AIDS conferences,

which takes place in Africa biennially, alternating between

Anglophone and Francophone countries.

ICASA 2011 brought together more than 10,000

participants from 103 countries, including scientists,

health workers, people living with HIV, policy makers, civil

society and non-governmental organizations, activists

and government representatives to share and learn about

successes, challenges and innovations in the prevention

and control of HIV/AIDS.

The 16th ICASA opened and ended successfully in the

presence of the Ethiopian Prime Minister, Meles Zenawi,

former US President, George W. Bush, former president

of Botswana, Festus Mogea, UNAIDS Executive Secretary,

Mr. Michel Sidibé, the US ambassador for HIV/AIDS,

Dr Eric Goosby, the Society for AIDS in Africa President,

Prof. Robert Soudre, Ethiopian Minister of Health, Dr.

Tedros Adhanom, ICASA 2011 Chair, Dr. Yigeremu Abebe,

diplomats, invited guests, media professionals and senior

government officials.

40 TireT October 2012

The 3 objectives of the UN High level meeting in June 2011,

“Zero new infections, Zero deaths and Zero discrimination”,

declaring that the dream was possible. Mr. Michel Sidibe,

UNAIDS Executive Director, addressing the Conference

described the day as an important day to take stock of

happenings on the continent over the past 30 years, with a

disease burden of 400,000 newborns who are sero positive

and accounting for 68% of PLHIV worldwide. A day to

demonstrate the results achieved by global solidarity, a

day to remember the 24 million Africans who lost their

lives to the epidemic, a day to demonstrate solidarity and

compassion for 34 million PLHIV in the world, and a day to

celebrate our successes. In this journey of combating the

epidemic, the 2001 negotiations was a critical milestone; it

was said then that treatment will not be successful in Africa

as adherence will be impossible; that prevention programs

will not work. But now they have been proved wrong.

There are now more than 6.8 million people on treatment,

compared to only 50,000 ten years ago.

Special thanks went to President George Bush from several

speakers for the decision he took to provide treatment for

HIV/AIDS in Africa, through PEPFAR, when everyone was

unwilling to do so. On account of his decision, 32 countries

in Africa have stabilised the pandemic and reduced new

infections by 25%. Ten years earlier, only two countries could

do that. Prevention programmes in Africa are now working

for his unique and outstanding contribution; President

Bush was awarded a special leadership excellence medal

by the Ethiopian Government.

President George Bush praised ICASA for the efforts being

made in responding to HIV/AIDS in Africa. He remarked

that Public Private Partnership is a commitment to serve

the poor and suffering people. No society can advance

if it denies the needs and dreams of half its people.

Leaders should take action to relieve the sick and dying

of the hardships of disease and poverty. Dramatic actions

are needed to stop the spread of a terrible disease. In

2001, the AIDS humanitarian disaster threatened Africa’s

existence and the US Government had to step in to provide

treatment to over 30 countries, initially through the Global

Fund and then through PEPFAR. These initiatives were

built on result oriented strategies to provide pregnant

women with drugs to prevent MTCT. Life restoring AIDS

medications saved 350,000 children born HIV-free in the

last decade.

The objectives of ICASA 2011 were:

• Serve as an advocacy platform to mobilize African

leaders, partners and the communities to increase

ownership, commitment and support to the response.

• Provide a forum for exchange of knowledge, skills

and consolidation of experiences and best practices

in Africa and around the globe to scale up evidence-

ased response on HIV/AIDS/STIs, TB and Malaria to

achieve the MDGs.

• Use as a forum to link and hold accountable political

and national leaders, the scientific community,

practitioners, communities, civil societies, the private

sector and partners to scale-up and sustain the


• Create opportunities to define priorities and set policy

and program agenda to enhance mobilization and

effective utilization of resources.

The ICASA 2011 Conference theme “Own, Scale-up

& Sustain” emphasized the importance for African

governments, civil society organizations, private sector,

communities and individuals to own and lead the response

to HIV/AIDS at all levels, as well as the critical need to

sustain what has been achieved while enhancing scalingup

of all responses to the epidemic.

The Conference deliberated on many timely and

important issues in the prevention and control of HIV/

AIDS, Tuberculosis and Malaria in Africa. Scientific papers

highlighted areas of development in prevention, treatment,

care and support. Community sessions highlighted the

community’s involvement in the prevention and care of

the disease and the mitigation of its various impacts. The

leadership sessions emphasized the roles of individual and

organizational leadership in the control of the pandemic.

Various recommendations were made to be implemented

by program leaders in Africa.

The Conference served as a global platform to promote the

efforts and achievements of African countries in combating

HIV/AIDS, TB and Malaria. It provided an opportunity

to further strengthen partnership among governments,

civil societies, communities, scientists, activists, partner

agencies and the global AIDS community. A unique

opportunity was provided to review the collective progress

made towards universal access and the attainment of

MDGs. The challenges facing the fight against HIV/AIDS,

TB and Malaria and the prospects for better prevention,

control and management were shared by the delegates.

The focus on Africa, relevance of program content to

current challenges of HIV response in the continent and

the international dimension were the added values of

ICASA 2011.

Some of the benefits gained by Conference delegates

include: increased understanding of the HIV epidemic in

Africa; new contacts and opportunities for partnership and

collaboration; increased understanding of the challenges

to achieve treatment access in Africa; motivation, renewed

energy and sense of purpose; new knowledge and insight

into HIV and STI prevention; new skills including best

practices; shared information with colleagues, peers and

partners; influence on work focus and approach of parent


Ethiopian scientists submitted a record number of 347

abstracts and 59% of these were accepted and presented

creating a unique opportunity to highlight the research,

prevention and care work being done in HIV/AIDS, TB and

malaria in the country.

ICASA 2011 is hailed by most participants as the best

ever ICASA. This is in terms of organization, scientific

content, logistics and security. This is achieved through the

concerted efforts of a number of key players.

Dr Tedros Adhanom, the Minister of Health, who has

personally selected and put together a team of highly

committed professional volunteers to organize and lead

the various committees of ICASA 2011. This team was

working relentlessly under the personal guidance of the

Minister for the past several months. MIDROC Ethiopia,

a leading private corporate entity, has also contributed a

staff member who was leading the Leadership Program

Committee of ICASA 2011.

The Millennium Hall, where the Conference was held

specially refurbished with new meeting and event halls,

air conditioning, audio visual facilities, furniture, etc in a

very short time. The whole facility was provided free of

charge to the Conference. The catering services along with

the hall’s facilities have added comfort and color to the

Conference leaving an indelible image of the conference

and the country in every participant. Thanks to the

Hall, Ethiopia’s capacity to host big meetings has been

demonstrated to everyone beyond a shadow of doubt.

The financial contribution of Sheikh Mohammed H. Al-

Amoudi, owner and Chairman of MIDROC Ethiopia has

exceeded USD 10 million and is far in excess of any other

major donors to ICASA 2011. The Conference, assessed

by most participants as the best, could not have been held

at all leave alone have the glamour it had if it was not

for the timely and unreserved contributions and personal

follow up of Sheikh Mohammed H. Al-Amoudi, Owner and

Chairman of MIDROC Ethiopia.

Sheikh Mohammed Ali Al-Amoudi instructed the

refurbishing of the Millennium Hall and personally followed

up the development and completion. This time again

he made our beloved country Ethiopia, its citizens and

leadership proud. All the people and organizations involved

in ICASA 2011 are extremely proud of his contributions

in recognition of which the Ethiopian government has

awarded a Special Medal to him, on a special ceremony

held at the Grand Palace.

TireT October 2012 41

Writer’s Column

Nani Building:

The Gem of Addis

By Omer Red


city where every sort of building is

mushrooming, one could not help

wondering what Addis Ababa will look

like few decades later. Among the most

visible features of newly built structures

in the city is a major lack of harmony that, if not

addressed in time, would eventually make Addis a

city with no identity. Most suffer from poor interior

and exterior quality and lopsided spacing while

they are built with little concern for the environment

and beautification. As a city considered not only

Ethiopia’s but Africa’s capital, Addis Ababa needs a

strict, detailed and forward looking building code

enforced aggressively to ensure the city will have

harmonious buildings, giving it a unique identity.

Cities in the developed west and in Africa’s own

advanced countries like South Africa maintain

distinct identities that they derive from their

buildings. Even in a single city, one district has

an entirely different identity from another where

the kind of buildings and housing blocks stand in

harmony in terms of size, colour, finishing materials

and green space. The designs of commercial, office

and any other sorts of buildings are in harmony with

neighbouring school and historical old buildings.

New York is a good example of how buildings’

harmony gives a city identity, despite the fact

that the city is not considered green, so much so

that its current Mayor, Michael R. Bloomberg, has

come up with what is called PlaNYC: A Greener,

Greater New York whose main purpose is to take

on a comprehensive approach to reducing energy

consumption in existing buildings and to ensure

under construction and future buildings maintain

the same standard while the city continues to build.

Few cities can rival New York’s skyline, dominated

by skyscrapers and lights. The towers that define

the city give it its density, its efficiency, and its

architectural character.

With the exception of few older parts such as the

National Theatre area, Addis Ababa has none of

42 TireT October 2012

Nani Building-partial view

these features. In the middle of what is supposed to be

residential district, or suburb, office buildings of completely

different colour, height and design stand in the way. In a

neighbourhood of concrete housing blocks rise buildings

with glazing glasses that reflect sun rays to the residential

neighbourhood. Worst, almost all of the buildings occupy

the entire land designated to such projects with the main

parts of the building for office and shop spaces. This makes

the city highly suffocated and the buildings look like boxes

with no parking and green spaces denying people enough

breathing space.

Few buildings – such as Nani, the new African Union as

well as Awash International Bank and Awash Insurance

headquarters visibly standout of the crowd for their

captivating exterior and charismatic height. But Nani has

unique interior and exterior features making it a building

with an identity.

The lack of skilled manpower in modern construction

and shortage of supplies needed to deliver such a highend

engineering masterpiece equipped with state of the

art amenities, is huge hurdle that wouldn’t have been

overcome had it not been for the determination of

the proprietors of Nani, whose Group Company,

MIDROC Construction Ethiopia Plc., did most of

the construction work. MEPO Contracting and

Management Service Plc., (another member of

MIDROC Ethiopia) took over the finishing part of the

construction work.

“But what is it about Nani building that made the

contractors take this long?” is a legitimate question

that calls for a professional and technical explanation.

Nani building has distinctive exterior looks just for

ordinary eyes that would not care to evaluate the

quality of the materials used.

Close to Birr 400 million has been spent on this

building which has more spectacular interior qualities

and high end amenities, unprecedented in Ethiopia.

Existing Features

Located in the centre of Addis Ababa, just in front

of the National Stadium and next to Ghion Hotel,

Nani is a 21-storey building with 4 podium floors of

each 2,700 m2 (basement to 2nd) and 17 floors each

720m2 tower part (3rd to 20th).

Nani Building-Lobby

It is equipped with all features of a modern building; the

250m2 gorgeous grand office entrance – excluding the

elevator lobby area – and two entrances for the podium

part, one at front and another from Ghion Hotel side,

welcomes visitors with refreshing spacious ambiance.

A 3-storey structure that stands on its own as an extension

of the main building is a standard parking space that

accommodates over 120 vehicles as the number of

offices on the building plus visitors’.

The podium has cafeteria on the ground floor, supermarket

on the 1st, modern stationery on the 2nd and luxurious

restaurant on the 3rd.

The tower part is for office use housing the different

MIDROC Ethiopia Group Companies from 4th to 16th

floors and the Owner and Chairman’s office form 17th to

20th floors.

For vertical transportation Nani is equipped with five

elevators, one with panoramic view and the other four

working with quadruple system programmed so that the

nearest elevator to the needed floor will arrive quickly

making the wait time remarkably short. It has a separate

freight elevator reserved to transport goods.

TireT October 2012 43

Nani also has one elevator and four escalators serving

only from ground to second floor.

But most importantly, this building is equipped with all

safety and security features like fire alarm, fire escape

stairs, fire fighting, CCTV and public address system

which are controlled by a modern building management

system from a control room with trained personnel.

The containment work of the telephone and data system

supports IP-telephone, a cutting edge technology

available to date only in international institutions.

Addis Ababa is situated in a seismic zone; so, buildings

of this height need strict adherence to the international

building codes in seismic zones. Taking this into

consideration, Nani building has three reinforced

concrete shear walls with dual purpose located in

triangular points, the most efficient system to withstand

lateral force (seismic force) from any direction and also

serve as lift, stair and utility shafts.

Nani is powered by a combination of power supply

from the utility company, Ethiopian Electric Power

Corporation (EEPCo) line, transformer, switchgear,

generator, central UPS, and electrical boards all working

in perfect harmony as they take turn automatically. The

high capacity containerized stand-by generator and a

central UPS with plc controlled switchgear system ensure

a permanent supply of power with no fluctuation even

at times of blackout. It also has MATV (master antenna

television) system to serve centrally selected office

Nani Building-Escalators and Stairs

Writer’s Column

Nani Building-Hallway

rooms, cafeteria, restaurant, hipper market and public

use areas.

A further distinct feature of the building is the water

supply system, which has underground raw water tank,

water purification, treated water tank, pump, over head

water tank, booster pump, pressure reducing valves and

copper pipe water supply line. The water purification

system with a 250m 3 underground and over head

water reservoirs, out of which 40% is reserved for fire

fighting system, is a major unique feature. Parts of the

fire fighting system are sprinklers, water hose, portable

fire extinguisher, dry riser and dry hose.

The external glass wall, otherwise called glass curtain

wall, retains 33% of the heat from the sun. The internal

double gypsum dry wall with rock wall insulation in the

middle fiber optics ceiling with aluminum frame makes

the rooms sound and fire proof.

Nani building is equipped with three chillers (two

working and one stand by) to circulate chilled water to all

air handling units. All floors have their own air handling

units to supply cool air to each room. Each room has its

own VAV (Variable Air Volume) with thermostat sensor

to adjust the air temperature automatically.

Electric driven crane with rail, which can move all around

the building, is placed at the roof top to allow easy

cleaning of the building glasses and aluminum cladding.

Installations of all these systems are made with particular

TireT October 2012 45

care to make maintenance, upgrading

or replacement works easy.

Structurally, Nani is built with state-ofthe-art

techniques that engineers call

shoring, pile, pile cap (mat foundation),

framed structure and flat slab.

Architecturally, the curtain wall, gypsum

partition with insulation (dry wall), false

ceiling with perfect specification and

master key system, as well as water

proofing (roof and wet area), make

Nani a master piece.

Come to this building at nights, you

will be amazed with the light points,

fluorescent lamps, down lights and

trickle battery lighting. The emergency

lights, push button are remarkable.

A fuel transfer system including bulk

tank, pumps, day tank and generator

fuel tank make the building’s backup

systems most reliable.

The HVAC system with its Chiller, AHU,

VAV, fire dumper, volume dumper,

thermostat, MCC panel and BMS is

simply impeccable.

Nani is probably the only building in

Addis Ababa with all these features

properly and carefully installed making

it a truly engineering and architectural

marvel and ultimately the gem of


But Addis Ababa needs more Nanis;

buildings that remain comfortable not

only to the occupants and occasional

visitors but also to onlookers who enjoy

the scene of modern city. There are

plenty of new buildings popping up,

and many more planed, in Addis Ababa

some of which of high standards. And

lately, as the city embarked on huge

reconstruction projects demolishing old

and disorganized villages, hopes are

high to see this African capital become

home to modern and beautiful highrises

that would give a major face lift to

the 125 years old city, one of the oldest

in Africa.

Writer’s Column

Nani Building-Restaurant

Nani Building-Supermarket

TireT October 2012 47


Coffee and health

By: Yilma Yemane-Berhan

It seems necessary to clarify

certain misconceptions

prevalent in the world of coffee

consumption. There has been a

time when coffee consumption

was discouraged especially by

religious leaders (both Christians

and Muslims alike) considering it as

harmful to human health. Even today

many physicians still consider coffee

to be detrimental to health. This is

because the latest scientific research

findings about the positive sides of

coffee have not properly reached all

the medical teaching schools. Even

in Ethiopia, many people linked

the traditional coffee drinking with

superstitions like fortune telling

and others. However, the truth is

that coffee in addition to its health

benefits is also a social drink.

The purpose of this article is

therefore to provide the highlights

of the scientific research findings on

48 TireT October 2012

Coffee Plant

the effect of coffee on human health

and clear off the confusions about

coffee drinking.

Over the ages, many legends have

been told about the origins of

consumption and benefits of coffee.

Of these, the most well known is that

of Kaldi. According to the legend of

Kaldi, coffee drinking started in the

Sixth Century.

For curiosity, he too tried the fruits

and felt the same stimulating effect.

Then the news spread in the area

and with that its consumption also

started to spread. Gradually, the

method of coffee consumption

changed from chewing to boiling

the fruits to drinking the infusion.

Now for many, coffee has an

important contribution to start the

day. A cup of coffee makes one

awake, energetic, and alert.

a) In the olden days, man over

time used coffee as medicine. For

example, legend has it that a man

in Yemen used coffee to treat the

people in a community to cure them

from itching problems. He became

successful in his effort for which the

community highly respected him

to the extent of naming him as the

“god” of coffee.

However, the first written document

on the medical value of coffee was

that of an Arab physician named

Rhazes in the 10th century. Then

in about the same century another

Arab physician, Ibn Sina wrote more

in details on the subject.

b) Regardless of the biases against

coffee, its consumption and demand

has grown to the extent it has

reached today. Coffee has a great

economic value in the world being

the second to oil with an annual

retail value of over USD 70 billion.

The major coffee drinkers in the

world are USA, Europe, Japan, the

Middle East and Brazil. For example,

more than 50% of Americans drink

everyday three to four cups of

coffee, which is more than 330

million cups a day. Now coffee

drinking is also gradually entering

China, a traditionally tea drinking

country, with a population of over

1.3 billion.

Considering the millions of people

who are drinking coffee, researchers

and scientists in major universities

and medical centers mainly in USA,

European countries, Japan and

lately Brazil, have made and are

still making scientific studies on the

effect of coffee to human health.

According to some new researches

conducted at Harvard Medical

School and the University of

California at San Diago, revealed that

coffee reduces 40% of the diabetic

isks among those predisposed of to

the disease (coffee science. org).

Other studies also disclosed that

coffee may help to reduce the risk of

a number of other diseases including

Parkinsons disease, colon cancer,

cirrhosis, gallstones, depression etc.

David. A Meyerson, MD, a cardiologist

at John Hopkins University and

National spokesperson for the

American Heart Association

(AHA) states that coffee does

not promote the development of

atherosclerosis. According to AHA,

no study has demonstrated that

caffeine encourages or accelerates

atherosclerosis. The AHA report

also stated that although many

studies have tried to find a direct link

between heart disease and coffee,

the scientific evidence is conflicting

and the results are inconsistent

(National Coffee Association of

America, NCA, USA).

Although some literature on coffee

reveals the following benefits of

drinking coffee, the benefits can not

be taken for granted, it should be

dealt with caution.

• It helps to manage asthma

and even control attacks when

medication is not available.

• Some studies showed that

coffee reduced the risk of

prostate cancer and another

study showed that it could

protect people from the onset

of Alzheimer.

• Coffee can stop a headache

and boost mood

• Coffee is a good source of

potassium, magnesium and


• The National Cancer Institute

of Japan in Tokyo found that

the people drinking coffee daily

avoided half the liver cancer

risks more than those who

never took coffee.

Major Medical Centers and

Universities are contributing to our

knowledge about what components

in coffee help in the disease

fighting process. Accordingly, the

studies show that coffee has more

than 1000 components of which

caffeine is one of them. Many

of the components have potent

antioxidants like chlorogenic acids.

The health benefit of antioxidants is

broader since the compound they

contain helps to fight diseases.

The German scientists have

identified a powerful antioxidant

which is found exclusively in coffee

that is believed to protect people

from colon cancer.

Caffeine is also the most prominent

component in coffee whose major

benefits are keeping one awake,

alert and energetic. It boosts energy

and reduces fatigue.

It is indicated in various studies that

up to 400 mg caffeine per day for

a healthy person, is fine. A normal

cup of coffee has about 140 mg

caffeine and the recommended

amount per day of 400mg caffeine

is equivalent to about 3 to 4 cups

of coffee depending on the size of

cups and coffee concentration.

It is reported that caffeine in

coffee improves performance

and endurance during prolonged

exercise. It is said that two cups of

coffee is all it takes to overcome

fatigue and feel alert again.

Research continues everyday

on coffee, caffeine and health.

Following this, hundreds of new

studies are published every month

by scientists and research institutes

mainly in USA, Europe, Japan and


The National Coffee Association of

America (NCA) has a committee of

scientists and doctors who monitor

and analyze regularly the scientific

literature on coffee research


Overall, the scientific studies so far

have shown that coffee is beneficial

than it is harmful. Thus taken

moderately 3 to 4 cups of coffee

per day has no harm but benefits.

Tom De Paul, PhD research scientist

of the Institute of Coffee Studies at

Vanderbilt University has said, “For

most people very little bad comes

from drinking coffee but a lot of

good”. Prominent scientists and

researchers assure us that moderate

coffee drinking poses no health

problems. And it is rather more


The writer of this article, wishes our

readers a good cup of Ethiopian

coffee which is world wide known

for its unique aroma and flavor,

balanced body and acidity. But take

it moderately as recommended.

Ethiopian Coffee Ceremony

FACT: Do you know that over

one billion cups of coffee is

consumed daily in the world?

TireT October 2012 49

Global Status of HIV/AIDS

Nearly 50% of people who are eligible for

antiretroviral therapy now have access to

lifesaving treatment

Substantial scale up, even during the financial

crisis, highlights country driven commitments new

investment framework will help countries save more

lives and money

A new report by the Joint United Nations Programme

on HIV/AIDS (UNAIDS), shows that 2011 was a game

changing year for the AIDS response with unprecedented

progress in science and, political leadership and results.

The report also shows that new HIV infections and AIDSrelated

deaths have fallen to the lowest levels since the

peak of the epidemic. New HIV infections were reduced

by 21% since 1997, and deaths from AIDS-related

illnesses decreased by 21% since 2005.

“Even in a very difficult financial crisis, countries are

delivering results in the AIDS response.” said Michel

Sidibé, Executive Director of UNAIDS. “We have seen a

massive scale up in access to HIV treatment which has

had a dramatic effect on the lives of people everywhere.”

According to UNAIDS and WHO estimates, 47% (6.6

million) of the estimated 14.2 million people eligible for

treatment in low- and middle-income countries were

accessing lifesaving antiretroviral therapy in 2010, an

increase of 1.35 million since 2009. The 2011 UNAIDS

World AIDS Day report also highlights that there are early

signs that HIV treatment is having a significant impact on

reducing the number of new HIV infections.

In Botswana, patterns in sexual behaviour have remained

relatively stable since 2000. The country scaled up

access to treatment from less than 5% in 2000 to over

80% which it has maintained since 2009. The annual

number of new HIV infections has declined by over two

thirds since the late nineties and data suggests that the

number of new HIV infections in Botswana is 30% to

50% lower today than it would have been in the absence

of antiretroviral therapy. As treatment reduces the viral

load of a person living with HIV to virtually undetectable


levels, it also reduces the risk of transmitting the virus to

an uninfected partner. Recent studies show that treatment

can be up to 96% effective in preventing HIV transmission

among couples.

At the end of 2010 an estimated:

• 34 million [31.6 million – 35.2 million] people globally

living with HIV

• 2.7 million [2.4 million – 2.9 million] new HIV infections

in 2010

• 1.8 million [1.6 million – 1.9 million] people died of

AIDS-related illnesses in 2010

Treatment has averted 2.5 million deaths since 1995

People living with HIV are living longer and AIDS-related

deaths are declining due to the lifesaving effects of

antiretroviral therapy. Globally there were an estimated 34

million people living with HIV in 2010, and since 2005, AIDSrelated

deaths decreased from 2.2 million to 1.8 million

in 2010. Around 2.5 million deaths are estimated to have

been averted in low- and middle-income countries due to

increased access to HIV treatment since 1995.

If full implementation of the new framework is achieved in

the next four years, global resource needs would peak in

2015 and decline gradually thereafter; making the AIDS

response an excellent investment opportunity where returns

will offset the upfront cost in less than one generation.

This new strategic approach to investments would achieve

extraordinary results; at least 12.2 million new HIV infections

would be averted, including 1.9 million among children

between 2011 and 2020; and 7.4 million AIDS-related

deaths would be averted between 2011 and 2020.

At the end of 2010 around US$ 15 billion was available for

the AIDS response in low- and middle-income countries.

Donor funding has been reduced by 10% from US$ 7.6

billion in 2009 to US$ 6.9 billion in 2010. In a difficult

economic climate the future of AIDS resourcing depends on

smart investments.

To rapidly reduce new HIV infections and to save lives, the

2011 UNAIDS World AIDS Day report underscores that

shared responsibility is needed.

TireT October 2012 51

Doing it Otherwise



By: Dr. Selam Aklilu

Every man and woman without exception senses that

there is something else beyond his ordinary life. The

perfect evidence that there is something far better is the

enduring search for it. Our task is to raise this unconscious

sense to the conscious level where it enriches us just

as pearls enrich the man who bring them up from the

ocean. No person and no circumstance can prevent

you from experiencing the new life. Not even you can

prevent it, if you are willing to find the true self. Your life

transformation is in exact proportion to the amount of

truth you can take without running away.

So do these:-

• Proceed courageously upon the principle that

even just a glimpse of light leads to more light. For

it always does. Just dare a lot, and you will get a

lot. But all this may call for your goal to become a

normally functioning individual with real nature of a

simple, decent, honest, unafraid human being.

• Start with a right frame of mind, with simple

receptivity. Everything depends upon the way we

take the truth. Your grasp of it makes everything else

clear. Man has a false sense of identity. He thinks he

is his false self, just the body, which he is not, the

two conflicting selves with in him: his true self and

his false self. It is difficult at the start to see that but

what a fine step toward wholeness! The false self

consists of everything negative within a person. Its

nature is to be envious, helpless, angry, despairing,

worried, critical, unstable, foolish and everything

52 TireT October 2012

The Writer of this article, Dr. Selam Aklilu, is the Director of the

first Chiropractic and Wellness Clinic in Addis Ababa for the last

11 years. She has her first degree in Chemical Technology, and

secured her Doctor of Chiropractic and Doctor of Medicine degrees

consecutively. She has been in private practice for 24 years with

a special interest in psycho-neuro immunology emphasizing “our

thinking governs or affects our health”. Prior to moving to Ethiopia

she has been practicing in Los Angeles, California for 13 years.

She is a Mother of 4 and married for 25 years, and has been on a

personal journey of “looking inwards” for the last 25 years.

else at enmity with happiness. It is the cause of

all inward pressure which explodes outwardly in

wars, crimes and other social tragedies. The man

dominated by his false self does not live his day, he

is driven through it, hounded by compulsive desires,

pained by automatic desires, scared by unrealistic

imaginations. Because he wrongly takes himself as

the false self, his desperation is endless. And there

for one loses the objective of every seeker which

is to become an enlightened, happy, and pleasant

human being.

• To overcome the barrier to happiness, the false self

cannot be and need not be changed. But it can be

dissolved and be replaced by the True Self.

• Remember the false self is false, it is nonexistent, but

by believing in it we act as if it were real. In reality

there is only one self, one power. The True Self is

your higher self, the Divinity In man.

• The task is to dissolve the imaginary self and live

from our real center of being. That is the only way

to human health. The greatest single barrier to

attaining this is mans secret assumption that he

already knows the answer to his problems. The only

evil is ignorance, unawareness, failure to see our

authentic identity. To the degree that we learn to

live from our true identity, our pains and follies fall

away, to be replaced with peace and wisdom.

Happiness is yours in the here and now. The painful state

of anxiety and loneliness are abolished permanently.

Financial affairs are not financial problems. You are at

ease with yourself. You are not at the mercy of unfulfilled

problems. Confusion is replaced with clarity. There is

a relieving answer to every tormenting question. You

posses true self. Something can be done about every

unhappy condition. While living in the world you can be

inwardly detached from its sorrows to live with personal

peace and sanity. This is the greatest secret on earth!

Because finding your true self changes everything!

So the whole question is how can we free ourselves

from the false power of the old nature? Author P.D.

Ouspensky quotes a modern mystic, George Gurdjieff.

“The inner self of every human waits patiently until

we are ready, then it extends an invitation to enter the

luminous mystery of existence in which all things are

created, nurtured, and renewed. In the presence of this

mystery, we not only heal our-selves we heal the world.”

Power Freedom Grace by Deepak Chopra

Knowledge of this real nature is how a man achieves

unshakable success. He is like a permanent guest in a

spacious mansion, enjoying everything while being

responsible for nothing. Read as if you have no personal

attitudes, be open and receptive. This frees the mind of

conditional thinking, enabling it to absorb the new. We

need to start with nothing more than a simple desire

to get to the point. It is not a question of intelligence.

Everyone has the intelligence. We need to have no

concern whether we are able to do this or that toward

our inner happiness. Our only concern is whether we

are willing to learn. And even if we are not, we can be

willing to be willing. The truth at all costs! It is like an

ice breaking ship that cracks its passage through frozen

obstacles. A tremendous power works for the man who

meets a challenging problem with the honest admission

`I don’t know the answer.` By turning his helplessness

over the power in him, he enables it to reveal the

answer. It is like turning over the basic material to a

master rug-maker, knowing that he can take what we

give and weave something far more beautiful than we

could ever do.

Do not confuse the instrument with the user of the

instrument. The instrument is the brain the user of the

instrument is the true self. Being expressed.

* Most concepts adapted from the book,

Mystic Path By Vernon Howard

TireT October 2012 53

Ascending Heights of Success

This column (Ascending Heights of Success)

is a newly started column on TIRET. This

new initiative is meant to highlight major

accomplishments of MIDROC Ethiopia Group

Companies. This is the first article for the

column, which will be regular in future editions.

The editorial team of TIRET humbly welcomes

comments and contributions. Enjoy the new


56 TireT October 2012

Location of Werri & Dawa Digati

NMiC ascends heights of success with new

mineral discoveries

The National Mining Corporation Plc. (NMiC)

has recently discovered unprecedented quality

and quantity of minerals in Ethiopia heralding yet

another ascendance on the heights of success

by MIDROC Ethiopia Investment Group.

The discovery of over 500,000 kgs of gold

resources in Dawa Digati and Werri areas of

Oromia and Tigray Regional States, respectively,

are the highlights of such achievements

culminating years of exploration operation and

investment of millions of Birr.

The remarkable result in Dawa Digati and Werri

which heralded the discovery of the largest gold

deposits in Ethiopia is a significant contribution

by MIDROC Ethiopia to the country’s economic


Encouraged by the successful completion of

the exploration phase of the Dawa Digati and

Werri prospecting, NMiC is now undertaking

preparations to start production by 2015.

Newly Discovered Gold and Base Metals


The National Mining Corporation Plc. (NMiC),

whose establishment objective among others is

to explore and develop the mining and mineral

industry sector of Ethiopia, has embarked in

the prospecting, exploration and development

for gold and base metals as well as industrial

minerals of the country since in 1993.

The successful acquisition of the Lega Dembi

gold mine from the government and quarrying

of decorative building stones, such as marble,

already in progress heralded the beginning

of the company’s aggressive involvement

in the mineral industry development. NMiC

designed gold and base metals prospecting

and exploration program aimed at discovering

additional economic mineral reserve deposits

over new prospective areas of the country to

fulfill the ever magnanimous aspiration of the

owner, Sheikh Mohammed H. Al-Amoudi, to see

Ethiopia prosper.

Exploratory drilling

Two areas, Dawa Digati in Oromia

and Werri in Tigrai Regional States,

respectively, were selected to

prospect and explore for gold and

base metals based on concession

granted by the government.

Results of the Dawa Digati

Exploration Works

The Dawa Digati, which initially

covered about 547 km 2 area, is

the southern extension of the

Megado Graben Syncline. Following

subsequent relinquishments during

the past exploration periods, the

license area held by the Corporation

at present has been reduced to

about 87 km2.

Located along the Addis Ababa-

Hageremariam road, the area is

accessible through 470km asphalt

road and the Sod-Dawa Digati 97km

all-weather road and a number of

other road options.

Exploration activities in the license

area started in early 1996. The

integrated activities thus conducted

at different scales (1:10,000-1:5,000)

during the initial gold exploration

period (3-years) resulted in the

identification of encouraging gold

prospects like Ginchile, Dugho Sefer,

Burikaro, Ejersa South, and Okote.

Gold values varying from 0.01-5.9

g/t in Burikaro; 0.1-3.6g/t in Ejersa

south; 0.01-99g/t in Ejersa North

were the first few indications. Okote’s

gold manifestations were quite

glaring from the outset. Laboratory

analysis from three trenches within

Okote mineralized zone covering

an area of 2.6 km long (NS) and 4

km wide (EW), for instance, showed

25g/t for 10m; 37.7g/t for 5m; 2.7g/t

for 20m. These results were not only

encouraging but also justified a

drilling programme. Subsequently

few test boreholes were dug to trace

the continuity of these trenches

which manifested gold showings at


The works in Buri Karo and Ejersa

South have also revealed about 5km

and 3.6km long mineralized zones,


The Okote prospect, about 2.6km in

strike length and 4km wide could not

be covered with detailed exploration

work simultaneously. Instead the

prospect had to be subdivided into

Eastern and Western mineralized

zones. The 400m wide western

mineralized zone (Okote North and

Okote South) has been the focus of

detailed exploration work including

diamond drilling. Of this the North

western Okote target has been

more systematically explored.

Review of the 2.6km in strike

length and 4km wide Okote

project exploration data, which

was undertaken in two mineralized

zones, and included diamond

drilling, was periodically conducted

by four different independent

foreign consultants to ensure the

study and data collected were in

accordance with the internationally

accepted exploration practices.

The National Mining Corporation

Plc. (NMiC) was established in 1993

with a registered capital of 43 million

Birr has now reached 103 million Birr.

Few years after its establishment, it

started exploration and prospecting

for gold and associated minerals in

the two areas under exploration and

prospecting License agreements

with the then Ministry of Mines and


Under the leadership of its Chief

Executive Officer (CEO) Ato Melaku

Beza, NMiC has become one of the

top most exploration and mining

companies in Ethiopia along with

global leaders in the industry.

Scoping Study Results

Based on the detailed review

findings and in accordance with the

Guidelines set out by the Canadian

Code of Reporting of exploration

Results, Mineral Reserves, NI 43-

101, Venmyn estimated gold ore

resource amounting to 190 million

tons at 1.86g/t or about 380,000 kgs

of gold and about 300 million tons

at 1.54g/t or about 500, 000 kgs

of gold respectively for the north

Okote and both for north and south

Okote together, respectively.

A detailed exploration data

review and preliminary economic

assessment (PEA) conducted by

the consultant has found the Okote

gold prospect to be technically

and economically viable. The study

has further shown an open pit

and underground gold resources

amounting to 68.4 million tons

of ore with gold recovery of over

114,667 kgs to be exploited for a

period of 20 years.

The PEA shows exploiting this

resource with an estimated

investment of about $120 million

could bring over $4 billion to the

company and over a billion dollars

to the government in the form of

Royalty and profit tax.

TireT October 2012 57

CEO of NMIC, Ato Melaku Beza, and geologists examining samples

Future work programme includes

detail drilling, metallurgical test work

and carrying out feasibility studies.

Werri Gold and Base Metals

Prospecting and Exploration


In March 1996, a yearlong

prospecting license agreement was

signed between the then ministry

of Mines and Energy and NMiC to

prospect for gold and associated

minerals over 1,637 km2 of Werri

area, in Tigrai Regional state, 100km

North West of Mekelle, the regional

Administrative capital.

The prospecting study conducted at

a scale of 1:50,000 analyzed a large

number of geochemical samples for

gold, copper, zinc, nickel, cobalt,

molybdenum and other metals.

The result defined three most

prospective targets namely, Worq

Tarbi, Worq Amba and Chemit

areas covering 382 km 2 . Exploration

results obtained from section of

Worq Amba area, among other

targets, was positive showing

persistent surface mineralization

continuity for a kilometer strike

length and average width of up to

15 meters.

Results from the 34 boreholes drilled

with average depth of 120 meters

each confirmed gold and base

metals depth extensions defining

ore zones of persistent continuity.

The mineralization defined at Worq

Amba was open both to south and

north. Later, Chini (80 km2 area),

which was located outside NMiC

property was incorporated as part of

Werri prospect area. The extension

areas have been explored in detail

and are ready for immediate test

drilling program implementation,

according to the study.

Resource Evaluation

The resource evaluated along

with process route tested by three

renowned foreign companies,

Japanese consulting firm back

in 2005 and by Independent

Consulting Companies, Wardell

Armstrong international of U.K. and

Venmyn Independent Project (VIP)

of South Africa all gave positive


The Japanese Consulting Firm

along with a local geological

team evaluated the presence of

3.5 million tons of gold ore and

significant base metals indications.

It also recommended further detail

exploration studies to upgrade the

reserves obtained.

The metallurgical test work on

Ascending Heights of Success

the indicated Worq Amba-south

deposit, undertaken by Wardell

Armstrong International of U.K.,

proved recoveries of up to 95% gold

by direct leaching and salable base

metal zinc recoveries by floatation


The scoping study made by Venmyn

Independent Company (VIP) of

South Africa, on the other hand,

estimated the mineral resource

of the same Worq Amba section

deposit revealing the presence

of about 16,000 kgs of gold, 146

tons of silver, 108 million pounds of

lead and 84 million pounds of zinc


VIP, furthermore, concluded that this

deposit can be mined economically

at current gold world market price,

and also suggested a simple open

pit method for the extraction of

the ores to be mined. Currently the

project is undertaking feasibility


Okote and Werri gold and base

metals projects could not have

reached its current stage had

it not been for the continuous

encouragement and provision

of finance by the owner, Sheikh

Mohammed H. Al-Amoudi.

Orifurrous core samples

TireT October 2012 59

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