Ethiopia: Allanasons Finalizing U.S $ 9 Million Deal
The Indian based meat processing company, Allanasons Group, is finalizing a deal for the purchase of Akshakar Export Abattoir for a total of U.S $ Nine Million.
The parties have already concluded the agreement, yet they have not secured authentication for the contract at the Documents Authentication and Registration Office (DARO).
According to Fortune, the process is being delayed for the parties could not reach on consensus over the issue of getting the contract authenticated after audits of Akshakar’s performance. Nonetheless, after officials of the Leather Industry Development Institute (LIDI) mediated the two parties, they agreed to get the registration and authentication of documents on the ground Akshakar’s financial auditing is done first.
It was only a year ago the Indian company secured a 75 hectare of land in Ziway town, Oromia State, for the purpose of erecting a meat processing plant. Allanasons plans to construct a facility with a capacity of producing 70 tons a day. The company estimates to spend U.S $ 20 Million for the facility.
In addition to this, according to ILDI, the facility will have an abattoir with the capacity of handling 400 cattles and 5,000 sheep and goats a day.
In 2014 the meat processing plant’s design work was commissioned to an Ethiopian firm, ETG Designers and Consultants Plc. The design is now completed and the construction work is soon to be given to contractors.
According to Ministry of Industry (MoI), the company is set to start to production in the current fiscal year.
Allanasons has also made payments to the Ethiopian Electric Utility (EEU) for the supply of 250KVA electric power it needs for the export abattoir it will operate.
In addition to this, the Indian company is under process to secure additional land in the Somali and Oromia States.
According to the Fortune, Akshakar has the annual capacity to process 6,000tn of cattle meat and a similar amount of meat from sheep and goats. It can also process 3,710 tons of byproducts of the slaughter house.
Source: Fortune
