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The National Tobacco Company is undertaking expansion projects which will enable it to increase its productive capacity by 60%. It has also bought two modernized and computerized machines at a cost of 54 mln birr that will produce 10,000 pieces of cigarettes a minute and 7.5 mln a day. Formerly it had produced over 3 mln cigarettes a day.
In addition to the above machines, it has bought cigarette transfer machines at a cost of 6 mln birr and a filtering machine worth 7.8 mln birr.
At a press conference held on Thursday, W/ro Tiruwork Woldehanna, marketing and sales manager, said that currently the demand for tobacco is 4.4 bln pieces and from this National Tobacco has a capability of covering 2.6 bln cigarettes or 53%. 4.6% is imported and 42% enters the country through contraband means. This means contraband trade covered the greatest amount next to those produced legally. As a result, the enterprise has introduced a new brand, "delight" cigarette, that will help to reduce contraband ones.
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A memorandum of understanding (MOU) was signed between Ethiopian Customs Authority (ECA) and British American Tobacco (BAT) to enhance cooperation in the fight against illicit trade and contraband in cigarette products.
The signing ceremony held at Sheraton Addis on Friday is a major step in the fight against illicit trade in cigarettes through which the government losses in millions of dollars annually, it was stated. Cigarette is the 2nd most smuggled product next to second hand clothes, according to ECA.
According to Custom British American Tobacco will provide training to customs authority officials in countering illicit cigarette trade. Speaking at the signing ceremony Mr.Weatherburn Head of Customs Excise Tobacco operations of the BAT said: "We are proud to support the Ethiopian authorities in this positive example of working together with the industry on mutual issues."
If agricultural products such as tobacco leaf, barley or malt, cotton, wheat and oil seeds which are inputs to the locally existing cigarette factory, beer factories, cotton textile mills, flour mills and to the edible oil plants respectively are not encouraged to be locally produced, the Agriculture Development Led Industrialization strategy (ADLI) becomes meaningless.
In the last five years, Ethiopia has spent birr 185 million in foreign exchange for the two commodities.
Therefore, Ethiopia should discourage the importation of malt and tobacco leaf because the country's external balance of trade is really in an alarming situation as it is indicated here below.
The Ministry of Trade and Industry announced that four governmental alcohol factories, Meta Abo Brewery, Harar Brewery, Bedele Brewery and Awash Wine Factory, and National Tobacco Enterprise have become private share companies with the Ministry of Finance (Ethiopia).
Private business enterprises are not allowed and should not be allowed to acquire monopolistic positions. . . A local newspaper carried the news that the Ethiopian Tobacco Monopoly, which was established in 1934 Ethiopian calendar by proclamation is being sold to a foreign private capitalist with 51% shares and perhaps with its monopolistic characteristics. . . The Ethiopian Tobacco Monopoly was a highly profitable venture and it might still continue to be so. If the government earns high profits from tobacco, the profits will be used for health care which is not the case with a foreign private capitalist.
Then why kill the goose that lays the golden egg every year, for many years to come, just for one sumptuous feast?
The most prominent privatization transactions are listed as follows:
. . . 3. National Tobacco Factory Shaher Trading Company. USD 35.7 million
Despite its high toxicity, the Akaki river is still used for various purposes including irrigation and animal drink, according to an industrial pollution report. . . The major pollutant industries Dr. Mulat pointed out in his report included tanneries, breweries, wineries, distilleries, soft drink, chemical and metal work industries, the Addis Ababa Abattoir Enterprise and the National Tobacco Factory.