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Marble, Granite, Ceramic & Limestone@Bishoftu

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Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
INVESTMENT PROPOSAL FOR ESTABLISHMENT OFMARBLE, GRANITE, LIMESTONE AND
CERAMICPRODUCTION PLANTPROJECT TO BE IMPLEMENTED IN: -ADDIS ABABA CITYPROMOTER: -Mr.
ENGEDU CHIMSA GELETUMay, 2021 FINFINE, ETHIOPIA

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
Contents1.INTRODUCTION.............................................................................................................................
..- 5 -1.1.BACKGROUND.........................................................................................................................- 5 -
2.THE PROJECT....................................................................................................................................- 6 -
2.1.1.THE PROJECT AREA........................................................................................................- 6 -
2.1.2.TOPOGRAPHY...................................................................................................................- 7 -
2.1.3.ECONOMIC ACTIVITY.....................................................................................................- 7 -
2.2.PROJECT DESCRIPTION..........................................................................................................- 8 -
3.OBJECTIVES......................................................................................................................................- 9 -
4.ECONOMIC & SOCIAL BENEFIT AND JUSTIFICATION...........................................................- 10 -
5.OVERVIEW OF THE POTENTIAL IN ETHIOPIA.........................................................................- 11 -6.LAND
REQUIREMENT AND LAND USE.....................................................................................- 16 -7.MARKET
STUDY............................................................................................................................- 20 -7.1.PAST
SUPPLY AND PRESENT DEMAND............................................................................- 20 -7.2.PROJECTED
DEMAND...........................................................................................................- 26 -7.3.PRICING AND
DISTRIBUTION.............................................................................................- 28 -8.ORGANIZATION AND
MANAGEMENT......................................................................................- 29 -8.1.ORGANIZATION
STRUCTURE.............................................................................................- 29 -8.1.1.TRAINING
REQUIREMENT...........................................................................................- 31 -9.PRODUCTION CAPACITY
AND PROGRAM...............................................................................- 32 -9.1.PROCTION
CAPACITY...........................................................................................................- 32 -9.2.PROCTION
PROGRAM...........................................................................................................- 32 -10.FINANCIAL
STUDY....................................................................................................................- 33 -10.1.FIXED
INVESTMENT.........................................................................................................- 33 -10.2.WORKING
CAPITAL...........................................................................................................- 39 -10.3.SUMMARY OF
WORKING CAPITAL...............................................................................- 44 -10.4.SOURCE OF
FINANCE........................................................................................................- 44 -10.5.BANK LOAN
REPAYMENT SCHEDULE..........................................................................- 45 -10.6.UNDERLYING
ASSUMPTIONS.........................................................................................- 45 -10.7.REVENUE
PROJECTION....................................................................................................- 45 -

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
11.FINANCIAL
VIABILITY..................................................................................................................4711.1.INCOME
STATEMENT............................................................................................................4711.2.PAYBACK
PERIOD..................................................................................................................4911.3.INTERNAL RATE
OF RETURN..............................................................................................4911.4.NET PRESENT
VALUE............................................................................................................4912.ENVIRONMENTAL
IMPACT ASSESSMENT................................................................................5013.TIME
SCHEDULE............................................................................................................................51

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
EXCUTIVE SUMMARY1)Project type Marble, Granite, Limestone & Ceramic Production Factory2)Project
PromoterEngedu Chimsa Geletu3)NationalityEthiopian, Australian4)Project LocationAddis
Ababa5)Premises Required10,000 M26)ProductionCapacityThe project is expected to produce
78,125M2 of Marble, 36,656M2of Granite, 36,656M2 of Ceramic and 73,313Kg Limestone duringthe
third year of its operation.7)Startup CapitalThe total of Birr 117,240,000.00 startup capital is required.
Fromthis 30% (Birr 35,172,000.00) will be covered by the promoter,while the rest 70% (Birr
82,068,000.00) will be covered by bank loan.8)EmploymentOpportunityThe total job opportunity
created by the project will be 585.9)Benefits expected Providing quality and well-shaped & designed
marble, graniteand pure limestone and related products
 Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
Stimulating the local economy by adding value to the sector of the economy $It is a source of revenue
for government. Transferring technology.1.INTRODUCTION1.1.BACKGROUNDEthiopia is currently on
the edge of rapid economic development with consistent double-digit growth over the last successive
years. The trend in sustainability of economic growthis being witnessed in all the critical areas of
consumption indicators such as power, energy,construction, manufacturing and others.The
consumption of construction inputs/materials such as; Marble, Granite, Limestone &Ceramic Products
has been significantly growing with an increase of 15% in consumptionon year-to-year basis, as the
sector’s data indicates. Consumption of marble and related products has also shown a double-digit
growth over the last three years.In addition, the fact that marble and related products are necessary
product within theconstruction sector and its demand is inelastic; its growth is sustainable even in times
of anyeconomic slowdowns.In Ethiopia, increment of Marble, Granite, Limestone and Ceramic
consumption of the period during the period from January to June 2015 which showed an increase of
7% over the last ten years. From investment point of view while, many other business sectors
areimpacted by the global financial crisis and showed a declining business trend, companiesengaged in
the construction related business in Ethiopia have continued to generate a

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
significant rate of return on investment, giving investors’ confidence to sustain the currentglobal
financial shocks.The nature of investment on Marble, Granite, Limestone and Ceramic Production is
theamount of capital investment on fixed assets will be relatively minimal. Stock and inventory being the
next liquid form of asset next to cash, being engaged in the sectors providesinvestors with flexibility to
diversify business.From control point of view, the marble production business is a safe business for
investorsas costing and pricing mechanisms are highly transparent and automated. In addition,
anincentive the Ethiopian government has provided to facilitate a smooth distribution of the products
across the country that’s why the promoters of this project has reached on adecision to undertake
investment on marble production at Addis Ababa, Oromia RegionalState.2.THE PROJECT2.1.1.THE
PROJECT AREA1.2.1.1.Location The proposed project of corrugated iron sheet and cookware
manufacturingproduct will be planned to be located in Addis Ababa.Addis Ababais thecapital and largest
city ofEthiopia.It is the seat of the Ethiopian federalgovernment. According to the 2007 population
census, the city has a totalpopulation of 5,739,551 inhabitants. The total land size the
promoterrequesting for the implementation of the project is estimated at 3000square meters, which
will be been obtained from investment commission of Addis Ababa city administration Hence the
owners select Addis Ababa forproposed project by looking every aspects of business integrity tourist
area.As achartered city(ras gez astedader), Addis Ababa has the status of both

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant a
city and astate.It is where theAfrican Union is and its predecessortheOAUwas based. It also hosts the
headquarters of theUnited NationsEconomic Commission for Africa (ECA)and numerous other
continentaland international organizations. Addis Ababa is therefore often referredto as "the political
capital of Africa" for its historical, diplomatic andpolitical significance for the
continent3.3.1.Climate:Addis Ababa has a subtropical highland climate. The city has a complexmix of
highland climate zones, with temperature differences of up to 10°C (18 °F), depending on elevation and
prevailing wind patterns. The highelevation moderates’ temperatures year-round, and the city's position
nearthe equator means that temperatures are very constant from monthto month. As such the climate
would be maritime if its elevation was nottaken into account, as no month is above 22 °C (72 °F) in
meantemperatures.Geography:Addis Ababa lies at an elevation of 2,200 metres (7,200 ft)and is
agrassland biome, located at 9°1′48″N 38°44′24″ECoordinates:9°1′48″N 38°44′24″E.[14] The city lies at
the foot ofMount Entotoand formspart of the watershed for theAwash.From its lowest point,
aroundBole InternationalAirport,at 2,326 metres (7,631 ft) above sea level in the southern periphery,the
city rises to over 3,000 metres (9,800 ft) in theEntoto Mountainsto thenorth3.3.2.Demographics:As of
the latest 2007 population census conducted by the Ethiopiannational statistics authorities, Addis Ababa
has a total population of 2,739,551 urban and rural inhabitants. For the capital city 662,728households
were counted living in 628,984 housing units, which results in

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
an average of 5.3 persons to a household. Although all Ethiopian ethnicgroups are represented in Addis
Ababa because it is the capital of thecountry, the largest groups include all nation nationality
3.3.3.Infrastructure and economic statusEconomy: The economic activities in Addis Ababa are diverse.
According toofficial statistics from the federal government, some 119,197 people in thecity are engaged
in trade and commerce; 113,977 in manufacturing andindustry; 80,391 Homemakers of different variety;
71,186 in civiladministration; 50,538 in transport and communication; 42,514 ineducation, health and
social services; 32,685 in hotel and catering services;and 16,602 in agriculture. In addition to the
residents of rural parts of Addis Ababa, the city dwellers also participate in animal husbandry
andcultivation of gardens. 677 hectares (1,670 acres) of land is irrigatedannually, on which 129,880
quintals of vegetables are cultivated. [citation needed ]It is a relatively clean and safe city, with the most
common crimesbeing pickpocketing, scams and minor burglary.[37] The city has recently been in a
construction boom with tall buildings rising in many places.Various luxury services have also become
available and the construction of shopping malls has recently increased. According to Tia Goldenberg
ofIOL ,area spa professionals said that some people have labeled the city, "the spacapital of
Africa."[38]Ethiopian Airlines has its headquarters on the grounds of BoleInternational Airport in Addis
AbabaTourism: Tourismis a growing industry within Addis Ababa andEthiopia as a whole. The country
has seen a 10% increase in tourism overthe last decade, subsequently bringing an influx of tourists to
Addis Ababa.In 2015, the European Council on Tourism and Trade named Ethiopia the#1 tourist spot in
the world

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
Development: The city hosts the We Are the Future center, a child carecenter that provides children
with a higher standard of living. The center ismanaged under the direction of the mayor's office, and
theinternational NGO Glocal Forum serves as the fundraiser and programplanner and coordinator for
the WAF child center in each city. Each WAFcity is linked to several peer cities and public and private
partners to createa unique international coalition.Launched in 2004, the program is the result of a
strategic partnershipbetween the Glocal Forum, the Quincy Jones Listen Up Foundation andMr. Hani
Masri, with the support of the World Bank, UN agencies andmajor companieEducation: Addis Ababa
Universitywas founded in 1950 and wasoriginally named "University College of Addis Ababa", then
renamed in1962 for the former Ethiopian emperor Haile SelassieIwho had donatedhis Genete Leul
Palace to be the university's main campus in the previous year. It is the home of the Institute of
Ethiopian Studies and theEthnological Museum. The city also has numerous public universities
andprivate colleges including Addis Ababa Science and Technology University ,Ethiopian Civil Service
University ,Admas University College,St. Mary'sUniversity ,Unity University, Kotebe Metropolitan
University and Rift Valley University.Transport:Public transport is through public buses from Anbessa
City Bus Service Enterprise,Light Rail or blue and white taxis. The taxis areusually minibuses that can seat
at most twelve people. Two people areresponsible for each taxi, the driver and a weyala who collects
fares andcalls out the taxi's destination.Road: The construction of the Addis Ababa Ring Road was
initiated in1998 to implement the city master plan and enhance peripheral

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
development. The Ring Road was divided into three major phases thatconnect all the five main gates in
and out of Addis Ababa with all otherregions (Jimma,Debre Zeit,Dessie,Gojjam and Ambo).For this
project,China Road and Bridge Corporation (CRBC) was the partner of AddisAbaba City Roads Authority
(AACRA). The Ring Road has greatly helped todecongest and alleviate city traffic.2.1.2.ECONOMIC
ACTIVITYPopulation of the town is mostly engaged in various business activities. Experience
shows,various investments undertaken have been attracted to the area to utilize the availabledemand
potential for construction materials product, which is because of the existence of vast users of the
products. Availability of physical and social infrastructure facilities suchas; access of asphalt road,
telephone service and others, which are basic to make a projecteffective as soon as investment land
delivery is secured.The main justification behind selection of this town are;- Available demand potential
for construction material products which is because of the existence of vast construction activities
around the City; High economic growth and investment activities in the town and the
surroundingarea; Large population of the city and the surrounding area which is the potential
marketfor the envisioned project; Location importance of the project area, closeness to the central part
of thecountry/region; It is among well infrastructure area of the country/region. For example; the
mainasphalted road which has been serving to connect center Parts of the Country/Region passes the
selected project area;

Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
Conducive investment packages of the Government; Abundant and diversified labor force.2.2.PROJECT
DESCRIPTIONThe project is planned to establish Marble, Granite, Ceramic and Limestone
ProductionFactory. The project will have a wide range product provision as it comprises modern andwell
designed & shaped related products.Marble is a rock composed of granular limestone or dolomite,
which is recrystallized by theinfluence of heat, pressure and aqueous solutions. This Metamorphic rock
is found in naturewith different attractive colors and varieties as well as quality.Marbles can be
processed in industries to produce various kinds of marble stones. The products of marble processing
industries can be used for monuments, interiors decoration,statuary, table tops and novelties.But, the
principal application of marbles is for exterior building works to provide a lastingendurance to
walls.Similarly, dimension stone is the collective description of natural stone, which has beenextracted
from the earth in an orderly manner, further worked by cutting and processing,then used in various
building activities either structurally or for decorative purposes. Itincludes panels and tiles from marble,
granite, slate, sandstone basalt and other relatedmaterials.The term "Granite" is derived from Latin
word "Granum" meaning "grain" because of itsgranular nature. Granite occupies a prominent place
among dimensional stones on accountof its hardness, durability, capability to take mirror polish and
fascinating colors.Most common applications of granite are in the manufacture of slabs and blocks for
the building construction sector.

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Investment Proposal for the Establishment of Marble, Granite, Limestone & Ceramic Production Plant
Block sizes may vary according to the deposit. The most common block size is 22 tons of asize
approximately 3.0m x 1.5m x 1.5m. However, blocks as small as 6 tons and often 11tons could be
produced, 22 tons is generally the largest due to transport requirements.The project will start it’s
activates by simple clearing the land, undertaking constructionactivities, procurement of machinery and
equipment, vehicle, and hiring professionals andsemi-skilled employees from local
market.3.OBJECTIVESThe general objective of the project is to provide quality & well designed/shaped
Marble,Ceramic & Granite as well as, pure Limestone Products for consumers in order to satisfy thelocal
need.The specific objectives of this project are the following. To generate profit for the promoter. To
create job opportunities specifically, for the local people, To generate revenue for the government, in
the form of tax and others.4.ECONOMIC & SOCIAL BENEFIT AND JUSTIFICATIONIn general, the envisaged
project Addis Ababa promotes the socio-economic goals andobjectives stated in the strategic plan of
the . These benefits are listed as follows.A.Profit GenerationThe project is found to be financially viable
and earns an average profit ofBirr8,960,522.33toBirr 34,211,448.51 per year within the project life. Such
result induces the project promoter to reinvest the profit which, therefore, increases the investment
magnitudein the region.

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