8 March 2014

Ethiopia: More Foreign Companies See Mobile Assembling Locally

The Ethiopian Metal Industry and Development Institute disclosed that the number of mobile assembling plants joining the manufacturing sector is increasing.

As part of the incentive given to the manufacturing sector - the government hopes to lead the economy- the institute reveals that it extends its privileges to mobile phone assembling plants.

Fite Bekele, Corporate Communication Director of the institute told The Reporter that in the country, so far nine mobile companies operate the mobile phone assembly, of which three are owned by local investors and the rest are owned by foreign companies.

The biggest company produces 20,000 phones a day while the smallest one produces 200 a day, Fite said, adding that the sector is still new in the country's investment sector, which is currently in the process of expansion.

These plants import components and raw material from abroad. Though these plants are engaged in assembling business, they also enjoy the government's incentive granted to the manufacturing sector upon their request, according to the communication director.

Unlike other manufacturing sectors, most of the mobile phone plants are more of capital incentive instead of labor incentive.

In order to enjoy the government's privileges, these companies are expected to use at least 0.5 percent of their local inputs in a bid to bring value addition.

In fact, one of the nine companies recently progressed to using 12 percent of value addition. However, the company has not been identified by Fite.

According to the government's requirement stipulated in the manufacturing sector, no privilege is given to any company whose contribution to value addition is zero percent.

Among the plants that are operating and delivering products in the local market are Smadl, G-Tide, O king, Hidassie, Forme, Tana and TECNO.


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