Netherland’s giant brewery, Heineken N.V. today (August 11, 2011) concluded acquisition of two Ethiopian government-owned breweries, Bedele and Harar with a total investment of 163 million US dollars.
a woman at Bedele Brewery working eight hours a day standing for around one dollar per day - Photo: newbusinessethiopia.com June 2011With brands such as Bedele Premium, Bedele Special, Harar, Hakim Stout and Harar Sofi (malt), the two breweries have a combined market share of 18% in the Ethiopian beer market.
Heineken, which opened its first African brewery in Democratic Republic of Congo in 1923, plans to further develop the existing brands of the two breweries and boost export of the brands. In addition, the company will also start producing Heineken brand in Ethiopia, according to Tom de Man, President of Heineken for Africa and Middle East who briefed journalists this evening at the Hilton Addis.
“Africa is our major growth area; we are investing a huge amount of money. In addition to a fast growing population (over 2 percent per annum) and a developing beer market, the country’s political stability and improving economy, make Ethiopia a promising, long-term growth market for Heineken in Africa,” he said. “Our expansion into the Ethiopian market increases our long-term commitment to Africa. Heineken is also committed to working closely with farmers and small-holders to help build their understanding of sustainable agricultural practices to increase yields and enable permanent, positive change in the country.”
Beer and non-alcoholic malt consumption in Ethiopia was approximately 4 litres per capita in 2010, which is well below the global average of 27 litres and below beer consumption in other countries in the region, such as Tanzania (7 litres), Uganda (9 litres) and Kenya (10 litres).
Working Poor
Commenting on whether the company has any plan to increase the salary of daily workers of the breweries who earn about one dollar per day, “We follow the laws of the country,” Johan Doyer said Managing Director of Heineken.
Heineken President Concluding the purchase of Bedele and Harar Brewery with Ethiopian Privatization DirectorDealing everyday with frequent and severe inflation, which now reaches close to 40 percent, daily laborers in both private and government factories consider their job as one of the worst job in the country. “Standing for eight hours every day is very painful for me; I do this because I have no other alternative to keep my children in school,” a woman employee of Bedele Brewery told newbusinessethiopia.com reporter who visited the factory a month ago.
One of the main reasons unskilled workers take factory job is because it is relatively stable than other sectors such as construction sector which now pays 100 percent higher.
After interviewing several factory workers in a water bottling company around Burayu area of Oromia region in 2009, “…Factory jobs are better than the alternatives, but by no means do they pay a wage that pushes people out of poverty. At least not right away,” Chris Blattman, Assistant Professor of Political Science & Economics at University wrote on his blog.
“I should not have been so surprised. With excess supply of labor, why would a factory pay an unskilled laborer any more than she can earn outside? In fact, because the wage is (in expectation) fairly steady and long term, factories can pay a lower wage and people will still line up for the stability,” he noted.
No comments:
Post a Comment