Ethiopia: Awash City Heading Towards an Industrial Hub With Midroc’s Investment

Located about 250 kilometers to the east of Addis Ababa, along the Ethio-Dibouti highway, Awash Sebat Kilo city (Awash for short) lies on an expanse of fertile land that is strategic for agriculture, manufacturing, tourism and other sectors of investment.

Unlike its natural gifts and long age, Awash has not grown up as much. Hence, its residents await investment opportunities that bring them chances for employment that change their lives.

Ayub Awol Mohammed, a father of three children is native to the city. For the last 11 years he has been working as operator of loader and forklift at Awash Filler Factory, one of the investments by Midroc Investment Group. He is now able to lead a decent living with his extended family.

“In addition to my three children, I am supporting my elderly father and I am glad for the factory is established here. Besides, the whole staff has good relation with the management”

Many other households from the city and the surrounding localities have tasted the fruit of Midroc Ethiopia’s investment in the manufacturing sector in the city. One of them is Behailu Tsegaye who is a machine operator. He is also married and father of a child. He has been working in Modern Building INdsutry (MBI) in Awash for over 24 years since the foundation of the initial factory.

As to him, the opening of the factory in the city has come up with good opportunity to him and to the other citizens in the area. The new factory is an outcome of their effort and he is ambitious for more expansion.

The expansion of manufacturing industries to the various corners of the nation unfolds immense opportunities that significantly transform the life of their employs and gradually the entire city. Eyerusalem Firomsa, married and a mother of a child is working at the factory for about ten years. After joining one of Midrocs companies with the pettiest job title, she has scaled up her employment profile over the years and is now an administrative staff.

“I started working here as a janitor but now I am promoted to finance department through time as I raised my educational qualification. The opening of the factory here has created job not only for me, but also for many others and it is good opportunity for us.”

Ethiopia’s manufacturing sector is actively seeking to become a manufacturing hub in Africa there by boosting the nations GDP as well as diversify job opportunities. The government is implementing policies to attract Foreign Direct Investment (FDI) and promote local manufacturing, with industrial parks playing a key role.

Among the companies playing pivotal role in the sector is MIDROC Investment Group that is vastly engaged in various businesses throughout the country. As a part of its effort to accelerate investment, it has inaugurated Awash Filler Factory expansion at Awash City of Afar State.

Attending the ceremony, Chief Administrator of Afar State, Haji Awol Arba congratulated all the entities for the effectiveness of the Coated Calcium Carbonate Factory.

“As a nation, ‘Made in Ethiopia’ Initiative is underway; as a region, we have begun various works. Manufacturing sector, in particular, is given priority at national level. I believe that this factory is a mother of all others for it supplies them with necessary inputs. As Awash City is the right location for investment, our plan is to make it a business hub,” he said.

The Chief Administrator further stated that MIDROC is their major partner under all weather conditions. A good friend is tested during hard times and MIDROC deserves such recognition because it endured with Afar people during the sovereignty war in northern Ethiopia.

“We have great honor to Sheik Mohammed Ali Alamudin, owner of the group, considered as the second Sultan of Afar people and father for the poor and to the CEO as well as all staffs. MIDROC investment group is our property and we care for it equal to our life,” he assured.

Jemal Ahmed, CEO of MIDROC Investment Group on his part said; “Afar is a great people and a large region that our company’s owner preferred it for investment. I and Hajji Awol Arba first met during the two years of war in northern Ethiopia when I came to see the destruction happened. I realized then he is a great leader.”

Following that moment, relations have been strengthened and MIDROC has made great effort in import substitute products structurally reforming itself and the support from the government. Prior to the reform, government’s support towards import substitution was negligible. The application of homegrown economic reform that paid great attention to import substitution, however, initiated the Group to carry out its duties with full capacity.

The expansion of Coated Calcium Carbonate Factory becomes operational simply by upgrading the existing filler factory and it provides essential input for local industries using over 90% raw materials from within 150 km radius. Since this is a strategic investment and is the property of Afar people, he reminded them to pay more attention.

The company is ambitious for more expansion and to establish two more factories in the region. Besides, as part of its social responsibility, the company donates 10% of its income and will build a feed center in Awash City like in Addis Ababa and Jigjiga, he pledged.

Andualem Woldemariam, Deputy CEO of Modern Building Industry Plc (MBI Plc), on his part welcomed the guests and briefly explained the bounties the factory has brought to the city and the surrounding people. MIDROC Investment Group administers the enterprise under manufacturing sector. MBI Plc is registering progress every year and implementing new projects via receiving Group’s uninterrupted support and follow up. The inauguration of Awash Filler Factory project is a living witness for this.

With less facility compared to other factories, its value is great for it feeds many factories. Apart from saving foreign currency, the project creates means of ceaseless income for the surrounding input providers as it uses 95% local resources, he said.

On the other hand, high quality calcium carbonate found around the factory’s site will create massive opportunity for export. Quality is the prime agenda of not only the enterprise, but also the group. Its sustainability in providing quality products for the past 26 years emanates from this principle. In so doing, it is certified with ISO quality standards at different times and will proceed in providing quality products, he added.

Abdu Ali, mayor of Awash City said that the city holds pivotal location in the country being the pass way of Ethio-Djibouti highway and railway; connection center of all corridors; initial point of Awash, Kombolcha and Hara Gebeya railway, and in general, the connection center of all directions of the country.

Though it is listed among the oldest cities of the country, the 141 years old Awash city would be able to grow as per its age as of now. The major reason for this, as to the mayor, is lack of adequate infrastructure and maladministration in the past.

“First, I want to express my gratitude to MIDROC Investment Group for choosing our city for investment 26 years ago and the newly inaugurated Awash Filler Factory expansion. Besides, the attention the reform government has paid to cities, industry, and investment should not be viewed as an ordinary thing,” he said.

He added that prior to the reform, there was low awareness towards investment and almost no investment had come to the area. Now, however, the sector is led by its own office due to the great attention given.

By the same token, as a part of special consideration given to cities at the national level for they are the center of prosperity, Awash City will prosper shortly with the effort of its dwellers and the regional state. The Coated Calcium Carbonated Factory, achieved by the Group is high investment that substitutes one-fourth of imported raw materials and saves over 24 million Dollar the country pays for importation. Awash City gives priority to invite and welcome more investors who want to join its journey towards development, he said.