Awassa Chip Wood
The Gem of Addis
By Omer Red...pp.44
Change & Change
NMiC’s New Gold
DOING IT OTHERWISE
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.
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
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
Change & Change
means “EFFORT” in Amharic and is a
Corporate Magazine of MIDROC Ethiopia
Tadelle Teferra (Chairman)
Johannes Kinfu (Emer. Professor)
WRITER’S ASCENDING DOING IT OTHERWISE
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
Haimanot Negussie & Martha Kassahun
Degife Tekle, Tadesse Demissie,
The Communication & Public Relations
Department of MIDROC Ethiopia
Tel: +251 11 554 99 69
Fax:+251 11 554 99 55
Aychew Design Works TM
Tel: +251 913 13 63 76/62 42 76
All rights reserved. Reproduction in part
and or whole is allowed with a written
authorization of the Publisher.
Development Research & Organisation
Change & Change
COVer STOrY 34
MiDrOC News 7
TireT October 2012
Writer’s Column 44
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 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
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
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
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
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
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
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
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
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
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
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
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
ELFORA also cultivates 6,200ha of
land growing maize, haricot bean,
mung bean, chick pea, grapes and
various vegetables in different parts
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
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
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.
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
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
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
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
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
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.
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
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
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
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)
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.
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
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
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
AwASSA Chip wOOD FACTOrY:
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
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
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
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
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.
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
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
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
By: Berhanu Tadesse M.D.
Leadership Program Committee Chair,
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
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
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
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
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
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
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
“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.
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).
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
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
rooms, cafeteria, restaurant, hipper market and public
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
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
TireT October 2012 47
Coffee and health
By: Yilma Yemane-Berhan
It seems necessary to clarify
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
the effect of coffee on human health
and clear off the confusions about
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
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
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
• 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
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
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
• 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
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
A LeAp TO perSONAL GreATNeSS
BY UNCOVERING THE TRUE SELF
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
• 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
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
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
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
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
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.
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
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