Ethiopia: German corp. sets up shoes manufacturing in Kaliti

29 March, 2008

German shoe manufacturer giant, ara shoes has finalized preparations to set up a multi-million birr shoe manufacturing plant in Kaliti, less than 30kms on the outskirts of Addis Ababa.

Company sources disclosed to Capital that the CEO of ARA, Tobias Zimmerer had visited the country in October 2007, reaching agreements with Ministry of Trade and Industry to set up the plant.

Accordingly, the CEO has entered an agreement to work with two local shoe manufacturers, namely Ras Dashen and Kangaro Shoes. However, the source could not specifically state how much the plant would cost.

“It is very difficult to put a figure on it at this stage, but I can definitely say that it is a multi-million project.” The source said.
Zimmerer had received a 100 page report on the Ethiopian Leather Sector Assessment and Benchmarking, carried out by UK consultant, John Avery, before deciding to invest in the leather industry. The report highlights the positive change in the sector, “the finished leather can be 10 times the value of the commonly produced intermediate processed ‘commodity product’, widely available today,” the report reads. “In comparative terms, the finished article can be in the order of 100 times as valuable.”

The German shoe giant, last year reported an annual profit of 190 million euros and employs more than 4,000 at six production sites in Germany, Portugal, Indonesia and Romania. According to the official website, the company established more than 50 years ago, and is stretching its global network, from Austria to India and from Eastern Europe to Oslo.
Currently ara Shoes exports to more than 40 countries world-wide. - Capital