According to the reporter, An Egyptian investor by the name of El Sakaty said he is making progress in setting up furniture, electric power transformer and sesame processing factories in Mekelle, Enderta, Tigray. The furniture factory is planned to kick-start production in two months. The transformer factory is making its way to finalization, where half of the machineries are already in place, he said. The sesame processing factory is being set up near the town of Mekele in Tigray region.
In related news, El Sakaty said that Ethiopia has every right to construct the Great Renaissance Dam (GRD) over the Nile.
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Egyptian investor says Ethiopia has every right to construct the Renaissance Dam
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- Plans to establish three factories this year
By Birhanu Fikade
In just about 15 months of studying the possible opportunities here, an Egyptian businessman has seized the advantage to dive into the Ethiopian manufacturing sector:
Alaa El Sakaty is interested in making money by setting up three factories in the Tigray Regional State.
During an exclusive interview he gave to The Reporter, El Sakaty said he is making progress in setting up furniture, electric power transformer and sesame processing factories here. The furniture factory is planned to kick-start production in two months, where chipped-wood production is enormous in the Tigray region. The transformer factory is making its way to finalization, where half of the machineries are already in place, he said.
El Sakaty explained that removing the tiny cover of sesame is proved to increase the value by more than fifty percent from raw export of the commodity. He is finalizing to set up the factory near the town of Mekele. The intention of setting a transformer-making factory was born after learning how most sesame processing factory owners are facing challenges of getting one and the long-awaited situation to import. That, according to El Sakaty, was the driving reason to set up a transformer-manufacturing factory here. About 700 units of transformers will be produced he said. He is also interested in making money out of meat processing businesses in the near future here. Once he manages the commencement of these three factories, he said he will seek to set up some four or so chains of factories in Ethiopia. Excluding the cost of machineries he has brought here, the initial investment will reach USD five million in cash.
According to the businessman, the bureaucratic hurdle in Ethiopia made him go slow. Instead of three factories he said he would have set up almost ten here. He recalls that bringing in all the necessary machineries was costly, that some USD seven thousand demurrages was to be paid at the port of Djibouti until the customs process settled here.
In related news, El Sakaty said that Ethiopia has every right to construct the Great Renaissance Dam (GRD) over the Nile. Since the country has no other alternative sources of electric power, given the necessity of having it, the very right of Ethiopia is unquestionable to erect the dam, he said. However, both sides, according to El Sakaty, are intelligent enough not to commit fatal mistakes in the process.
He wants both sides to deal well on the matter as to the Nile being the lifeline of Egypt; it is also the essential water for Ethiopia’s electric power generation. He stressed that the Ethiopian side would assure the right volume of water goes to Egypt after the great dam is commenced.“I believe your people are intelligent enough not to decrease the volume of water going to Egypt or the Sudan. Water is life, as electricity is everything,” he said.
El Sakaty also believes that Ethiopia is able to finalize the project. Since finance is already piping along the gates, nothing matters most, he said.
The Egyptian businessman runs several factories in Egypt, Saudi Arabia and the Sudan, where he makes a great deal of business in Saudi Arabia through the transformer-manufacturing company. In the Sudan, he runs a packaging factory. Along with his real estate and packaging businesses, he is president for the association of businessmen and investors in Egypt, where under the association he leads some 450 factories in one of the four major industrial zones of Egypt.