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2.5 Benefits
One of the important benefits of this sector for the country is the
employment of tdl
population which is effective and increases the income of each
person in Ethiopia. Besides
job creation, poverty reduction and women's income is also a major
part of this sector
to develop sustainable livelihoods in the country. It will provide
employment opportunities to the youth
unemployment in the area, which reduces the level of poverty and
level
crimes.
Direc tannd temporary opportunities will be ltj_local staff for
Construction Phase.
Long-term, large-scale and stable jobs will be created in the post-
construction phase.
Local villages will be given preference and training to work in the
sector. The project with
The proposed will directly provide employment to 45 people.
. It will help you find the skills of local people.
Transportation will be needed to transfer raw and finished goods
and finally they will be needed
is therefore transporters and logistics jobs will come.
There will be external development for workers in small shops (tea,
repair centers etc.).
trucks etc) as support services. Rawmaterials / avocados, sunflower
seeds etc / manufacturers prefer
to deal directly with the project and sell the seeds at a good price.
This project leads to the development of the area because this
project opens doors
opens other industries.
The establishment of the proposed soap and soap factory will save
the country
foreign exchange in exchange for current imports. The project also
generates income
will impose on the government in terms of payroll tax and future
profit tax.
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During the Derge government the textile industry was established
for concentration purposes
focusing on social welfare such as creating job opportunities, and
introducing ideas. Directions
This type of industry has protected it from foreign competition and
introduced the
inefficient utilization of resources.
After the fall of the Derg regime in 1991, the EPRDF adopted a
policy of liberalization
and wide. Agricultural Development in the country including the
Development of the same
word-to-mouth communication, economic development and
agricultural development, development
agriculture and the development of agriculture and the development
of capital production industries
medium, creating basic technologies within the transfer,
Adaptation, and development of tdl technology, preferred to use
high tdl
strong technology and local resources, to achieve the
competitiveness of the industry
area of clear comparative advantage in exports, and Pro mot
inngbalanced reg ion
aldeve lop men t. Inkee pin gwit ha wider sta teledappr oac hto
development,
The Ethiopian government has played an active role in the
development of the textile sector and
clothing since the early 2000s.
In the 2000s, a large wave of privatizations sold off most of the
apparel industry and
Textiles owned by the government such as Kombolcha Textile
Share, Bahir Dar Textiles or Yirgalem Textiles
Domestic investors. Most private companies belong to local
businessmen and
funding grants such as TIRET and EFFORT. It has not contributed
to the growth of exports since
'Obsolete technology in clothing companies has caused low
efficiency and requires significant investment
can'. (Staritz and Whitfield, 2019)
In 2010, Ethiopia had more than 90 industries, of which 91% were
privately owned.
have. In 2018, this number increased significantly and reached
d200. Loftnr's mntlthan 65 textile investment projects
licensed to foreign investors in the last five to six years. (Rain,
2018)
The Ethiopian Agricultural Development Corporation (IPDC) was
established in 2014
the rapid industrialization engine that boosts the manufacturing
industry, to accelerate economic change,
promoting and attracting domestic and foreign investors. It is
expected that foreigners
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Companies working in these parks will be supported by their local
counterparts, with some strength
attracting investors committed to developing local companies
(ibid.).
The government prioritizes the sector with various investment
initiatives. Therefore, investors
internal and external join the sector.
It is with the growing share of foreign direct investment (FDI) that
Ethiopia's garment sector has grown significantly
has changed. A large number of foreign companies have chosen
Ethiopia as the next source of textiles and clothing
prnouctionhub. The first wave of FDI included mainly prominent
Turkish investors
as a result of close diplomatic relations. (Staritz et al., 2016; Staritz
and Whitfield, 2019)
The increase in production and exports can be explained by the
implementation of Ayka Addis on the outskirts of Addis Ababa.
The company
The Turkish textile giant invested 140 million dollars in the
construction of a factory in 2010 and
created more than 7,000 jobs. The arrival of tdl Ayka Addis has put
Ethiopia on the value chain map
the world and has attracted additional investors from countries such
as Israel, China and
India.
With Nbt ern ern and business opportunities in Nbint ern
government and business-
commercialization, access to cheap labor and raw materials for
clothing in recent years
In the past, the export of textile products has shown a significant
increase.
Overall, FDI in the textile industry has increased: it is alleged to
have started at $166.5m.
2013/14 to $1.2b in 2016/17 (Ethiopia Investment Council (EIC)
and textile and apparel export share
FDI was reported at 80% in 2017. Van der Pols (2018) reports that
in 1991 there were less than 20
companies, which increased to 80 in 2012 and almost 110 in 2013,
reaching about 250 factories
medium and large today.
2.7 Project eligibility: why is it proposed?
Ethiopia has great industrial potential, and there is a ready
workforce, markets
large domestic, and suitable conditions for export. The government
has also given them due consideration
industry and established an institute to assist manufacturing
companies in their marketing and one-
Productivity. Moreover, it is easy to enter the international market
because of the business
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agreements such as the African Growth and Opportunity Act and
GSP+ and trade agreements
and several
As a result, the government is focusing on supporting the growth of
the manufacturing industry, potentially
Nb the success of the predicted factory will be increased.
Moreover, to encourage
and to promote private investment, various incentives are given to
investors
There are customs tax reductions, export customs tax exemptions,
income tax holidays and
loss to continue etc.
Soap is very necessary in Medicine and Pharmacy where
cleanliness and hygiene are very important
for you.
With the increasing demand for soap, there is a need to open more
soap factories
to reduce imports and meet domestic demand for soap and
detergents that can be produced
without much pressure.
Additionally the soap and detergent market is expected to grow due
to:
Rapid urbanization, increasing prevalence fm chronic diseases,
population growth, rise
disposable income and ethical consumers are expected to support
the demand for soap
high quality
Health care center aw ar ene ssft 's ngayth_ri si ng disposable in
com e what u
classified soap and detergent as essential commodities.
❖ The continuous penetration of washin gmachi nes in the country
has increased
the earning power of the tdl market vendors.
* The country's demand for soap and detergents is mostly met by
imports.
❖ Potential opportunities in emerging economies are expected to
provide
more demand for the product during the forecast period. This made
the soap industry
A profitable industry with maximum profit and minimum risk
management.
On that date, Mr. Temesgen Feya was interested in investing in
soap manufacturing
and soap to produce soap and soap for Buee city administration in
Gurage region.
2.8 Project Support
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Institutions of psychology have independently played a leading role
in the
development of key industries in Ethiopia. These include, quality
control ajensl, products
Raw materials, the production process and finished products must
undergo a series of tests to
check fb dity Nbthe customers. The trigger port is definitely not
bnr odu ctis
not car cin gen gen andeco-friendly mat eri alsareused intheman ufa
ctu rin gandpackaging
process.
The Ethiopian Manufacturing Association is a private trade
association that represents the interests of tdl companies
in the manufacturing sector. Its mission is to inform the vauet peuk
fm production department.
Its activities include: updating members on contemporary
international business trends; capture
seminars & discussions with the Government on political issues;
conducting trainings
& workshops with development agencies.
The Development Bank of Ethiopia (DBE) now provides long-term
loans to the manufacturing sector
and paid at a subsidized rate (Oqubay, 2015).
The Indus Test of Input Development Enterprise helps ensure
availability
raw materials for industry.
Universities; It is an important step to professionalize the work at
the lower and middle levels of management.
The institution has a prominent position in offering bachelor and
master programs in engineering
chemical, mechanical and electrical engineering.
2.9 Project Objectives
To make soap and soap
• To sell its products domestically and abroad
To encourage farmers to grow fruits such as avocado, by creating a
constant demand
and farmers
In addition to soap and soap, the industry played an important role
will reduce the volume of imports.
Increase your foreign exchange earnings
To provide employment opportunities for the growing workforce in
the project area with
hire permanent and temporary staff.
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3 PROJECT SITE STUDY
3.1 Explanation A re a
The area identified for sale for the proposed project is located in
Buee To wnw Administration of Buee To wnw,
Gurage area, SNNPR Region. The land where this project will be
built is 110 km long
located in the north of Addis Ababa, and connects Hosana-Wolita-
Arba Minch with a very good road
Close to Addis Ababa.
3.2 Physical and Natural Condition of the Project Site
3.2.1 Visualization es
The landscape characteristics of the proposed project area are
characterized by a small and gently sloping land
soft. The tdl view of the project area generally shows the safety of
the Opportunity
good for cheap infrastructure installation and site development
requirements.
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3.2.2 The film
The climate zone of Bue city administration is divided into large
and small. Annual rainfall
They vary from 900-1,200 mm and the minimum annual average
and the maximum temperature are
varies from 15 to 26 degrees centigrade.
3.2.3 Access to services, infrastructure and other services
The road; The project area is accessible by all-weather roads up to
Bue Town. The area is
closed on all sides of all-weather roads, so that the project can
transport materials and products easily.
Electric Power, Buee To wnwNb the project area has electric
power. Now, the government
established an additional power station in Buee City Government.
This power station helped us
We want to reduce the cost of tdlopement with the use of good
efficiency and it has been confirmed
will have uninterrupted access to fm.
Water Resources; The water demand of the project includes all
types of water use viz
water required for production units, water required for workers,
commercial use
and irrigation of the land. So far, access to clean drinking water is
not a problem in the project area.
Communication; According to data collected from the Office of
Finance and Economics,
The city administration and all agricultural organizations in the
project area are available
telephone services, such as, cell phone service, and wireless.
Educational Services; The city of Bue has excellent educational
facilities
from Kindergarten to high school
Health Services; The project site has access to hospital services
near hospitals and
The health center is 2 km away from the project site
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4. MARKET STUDY AND PLANT CAPACITY
4.1
MARKET STUDY
4.1.1 Past and present needs
The country's demand for soap and detergents is mostly met by
imports.
Although some of the different types of soap and soap in limited
quantities
made in the country, data published by the Central Statistics Agency
for the exploration of tdl Medium and Large Power Plants and
Soap.
So, to analyze the unsatisfied need for soap and soap
data obtained from the Ethiopian Customs and Excise Agency on
import detergents
and soap for the past nine years have been introduced to
analyze (see Table 3.1).
Table 3.1: Imports and detergents
The year

Volume (Tonsl
2,316.60
165.70
The price
("000 Birr)
12,005.00
1,364.00

1,096.60
8,554.00

<
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1,270.70
14,953.00

780.30
13.674.00

541.30
15,253.00

817.52
19.164.76

868.93
31,490.40

946.05
37,109.94
Source: Ethiopian Customs and Excise
As can be seen in table 3.1, the number of imports in the last nine
years
was very erratic, ranging from a low of 165.70 (year 2011) to
2,316.6 tons (year 2010). Absence of clear trend in data set mean
The last four years are believed to reflect the current need
existing. Therefore, the current demand (year 2021) for soap and
detergent is estimated
793 tons.
Since there is no classified information about the amount of
powder, liquid and
soap, the opinions of people who know about the environment have
been collected. Therefore,
It was found that approximately 65% of the volume of soap
imported from abroad
contain soap, and the remaining 35% liquid. If we base it on this,
The current demand for liquid soap is estimated at 277 tons of soap
the bar is 515 tons.
4.1.2 Order Forecast
Factors affecting future demand for detergents and soaps
are many. These include population growth, rising incomes,
cities, and increasing public awareness of cleanliness.
The population of the country as a whole is increasing by 3.2% per
year. The public
The city, which is the largest user of soap and soap, is also
another rise of 3.5%. Gross domestic product (GDP), among others
In terms of revenue, it has grown by more than 11% in recent years
past, and it is predicted that it will continue in the future.
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There is an increasing awareness of general hygiene among the
people due to this
the efforts of the Ministry of Health and other concerned people.
Therefore,
As a result of the above factors, the demand for soap and soap in
cities
and rural areas are increasing. Considering the combined effect of
the above points, the future demand is predicted to grow by 6% per
year.
A demand forecast based on these assumptions is presented
table 3.2.
Table 3.2: Demand Forecast for Liquid Products and Soaps
(Tanna)
The year
Volume
(Tons)

294.37
312.03

330.76

350.60

371.64

393.93

417.57

442.63
469.18

497.33

527.17
Liquid soap demand will grow from 294 tons in 2021 to 393 tons in
2021.
527 tons by 2025 and 2030, respectively.
4.1.3 Pricing and Distribution
The sales price is based on the "Cost-Plus Method". Marking up
25% profit on loo
looking at the total cost of the product is reasonable and
competitive especially at this early stage
ah. The price of the unit is estimated at 12.00 Birr. Plus 25%
profit, the price is Birr 15.00 for delivery or check-in.
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