Ethiopia: Japan Tobacco International Paid 510 million USD

Source from:  Ethiopian Business Portal‎ 07/22/2016

Japan Tobacco International paid 510 million USD for the purchase it made for the 40 percent stake it acquired in the National Tobacco Enterprise (NTE). The payment was made for Ethiopia's government on July 15, 2016.

The agreement was signed by Demitu Hambissa, the Minister for Public Enterprises, and Japan Tobacco's representatives, Francois Fidanza and Martin Ralph Fraundorfer (PhD).

It was on May 19, 2016 that Japan Tobacco won a bid announced by the Ethiopian government to privatize 40 percent of NTE. The bid had only 5 participants and among them was American British Tobacco, producer of Rothmans cigarettes and Philip Morris International.

Speaking after signing the deal, Demitu said the government privatized public enterprises not only to collect money but to improve the performance of the organizations and boost their contribution to Ethiopia's economy. The company should work towards making NTE competitive in the international market, she added.

Japan Tobacco on its part noted it has plans to make big investments on NTE and elevate the enterprise into an internationally competitive tobacco giant.

Among other notable individuals, the signing was attended by Ethiopia's Minister for Finance and Economic Cooperation, Abdulaziz Mohammed, and Kazuhiro Suzuki, Japanese Ambassador to Ethiopia.