ETHIOPIA INVESTMENT COMMISSION
SUCCESS STORIES
Crown Packaging
- Please tell us about your company and its history.
– When was the company founded?
The company was founded in 2011 and the business started in January 2012.
– Who founded the company?
The company was founded by the young entrepreneurial couple Gerard and Baukje van der Wal, together with a group of socially-minded investors from the Netherlands.
Can you please describe the history of the company?
In 2009 the founders visited Ethiopia for the first time. There they saw the need for jobs and import substitution of materials. Then they met the owners of a dairy company who were buying their yogurt cups from abroad. At the time, all thermoformed packaging was being imported in the country. The founders then felt called to combine these things and start a new manufacturing plant.
– In which sector is the company engaged?
The company manufactures thermoformed packaging for the food industry and events.
– What is the objective of the company?
The company wants to serve its employees and customers by working according to high standards at competitive conditions. At the same time, the country as a whole must be better off due to the work of the company; the investors believe that this will, in the end, also result in a healthy financial return on their investment.
– What is the production capacity of the business?
The company can produce approximately 350.000 cups per day. This is about double the current consumption in the country.
– How many people does the company employ?
Crown Packaging currently employs a team of 69 people.
– Any milestones (e.g. major partnerships agreements, expansion investments, shipment/production targets, etc.)
After starting production in a rented building in Dukem town, Oromiya, the company started construction of its own factory in 2015. The new buildings were constructed on a plot of land leased from the government in Udee Denkaka, just South of Bishoftu, Oromiya. The new location is strategically located at the expressway entrance road. - How did you become interested in investing in Ethiopia?
During our first visit to the country in 2009, we had seen that many people were eager to work but couldn’t find a job. At the same time, we saw opportunities to replace imported products with local production. Combining these things, we came up with the plan for Crown Packaging and Plastics. - What are the advantages of doing business in Ethiopia?
Compared to other African countries we have visited, we find the Ethiopian people eager to work. Also, the values and morale are good here. Altogether we have mostly enjoyed working with Ethiopian people and we see many more opportunities. - How is Ethiopia’s industrial market different from that in other parts of the world?
There are still a lot of things to develop. On the one hand, this makes me enthusiastic as an entrepreneur. On the other hand, it sometimes creates challenges – for example, when it comes to local availability of spare parts and such. - Were there any specific strategies that your company established to better adapt to the Ethiopian market?
From the beginning we have tried to listen to and learn from our team as much as we could. Our local team has from the beginning been one of the main reasons for the fact that our company is being successful. Also, being in contact with other investors has often helped us a lot. - What is your company currently doing to rise above the competition in the Ethiopian market?
We focus on being reliable as a supplier. Because our customers produce perishable products, it’s really important for them to be able to rely on us. In a few cases we have really had to pull a stunt to keep our promise to customers, but in almost all cases we have been able to. In general, we also keep watching what we can do to make sure our customers and team members are doing well. If that is the case, then we don’t feel a need to look too much at what competitors are doing. - What Ethiopian companies/government agencies do you work with to strengthen your business partnerships?
With EIC, the Ministry of Industry and Trade, and the Ethiopian Meat and Dairy Industry Development Institute (EMDIDI). - What advice would you give foreign investors/companies seeking to enter the Ethiopian market?
Build for the long run; don’t focus on short-term profits and benefits. Don’t look only after your own interests, but also after the benefit of those you work with and for. - What are some future plans/goals that your company has in terms of doing business in Ethiopia?
Currently we are working to start manufacturing of processed and packed coffee products. At the moment, most value to coffee is added in the countries where it’s consumed; this is done mainly by machines and robots nowadays. We would rather do this with the people from the country where the coffee originates. This will not only create great coffee for the end user, but also jobs for people – who can then take care of their loved ones.
There are more ideas, but they need to cultivated further and might then come to existence one day. First, our focus will be on the existing business and the coffee manufacturing. Many of the best practices in our packaging factory will be used again for the new plant.
Sunselet
- Please tell us about Senselet and its history.
– When was the company founded?
2015.
– Who founded the company?
Veris Investments from the Netherlands.
– Can you please describe the history of the company?
Senselet was set up by Veris in 2015 to contribute to developing the potato value chain in Ethiopia. Senselet was involved in conducting different market studies, acquiring land and construction of the factory up to the end of 2017. Production and sales started in January 2018, and the company has been expanding its consumer outreach as well as smallholder farmer collaborations since then.
– In which sector is the company engaged?
Food processing for consumer goods.
– What is the objective of the company?
Our objective is to build a financially healthy and sustainable snack business while contributing to the development of the potato value chain in Ethiopia, serving consumers with high-quality, affordable products.
– What is the production capacity of the business?
300 kg of chips per hour.
– How many people does the company employ?
Approximately 250.
– Any milestones (e.g. major partnerships agreements, expansion investments, shipment/production targets, etc.)
Our company has established strong business partnerships (see below.) More recently, though, we began a new chapter in our business. Having PepsiCo as a partner will enable Senselet to leverage PepsiCo’s extensive global expertise on potato cultivation, manufacturing and go-to-market capabilities to further grow the company. PepsiCo also shares our commitment to working with small and medium-scale Ethiopian farmers as well as developing the potato value chain and sustainable farming in Ethiopia. - Can you tell us a little bit about yourselves (e.g. name and position in the company, role and responsibilities, why you personally are passionate about, why you established/joined the company, etc.)?
My name is Chris Wijnterp; I am the general manager of Senselet. At Senselet we are passionate about providing high-quality products to our consumers all over Ethiopia, while creating impact through our employees and the Ethiopian farmers we are working with. We have built our organization on strong values and principles and believe integrity and compliance are the foundations of doing business in our community. Finally we want to build strong partnerships with all stakeholders in the full value chain, from farmers through to our consumers, creating a smile with every bite of SUN Chips. - How did you become interested in investing in Ethiopia?
Ethiopia is a country that has substantial potential for growing potato, but this potential has been largely untapped. The potato value chain is underdeveloped due to a shortage of high-quality seed varieties, seed producers, technology, logistics, storage, potato knowledge and processing capacity. Senselet invests in the potato value chain and wants to link farmers to the market. - What are the advantages of doing business in Ethiopia?
Ethiopia has a young and emerging population who are eager to develop. On top of that, there is a growing economy with an agricultural background which bring immense opportunities. Finally, Ethiopia has a great climate for growing high-quality potatoes. - How is Ethiopia’s FMCG market different from that in other parts of the world?
The FMCG marker is developing and as such still largely traditionally operated, which creates challenges to reach all Ethiopian consumers but also brings opportunities to be close to the homes of the consumers via a wide network of souks and having a more personal relationship with our customers - On that note, what are some trends you are seeing in the Ethiopian fast-moving consumer goods (FMCG) market?
That sector is developing, and our population is urbanizing. We have seen also there is more focus on healthy and quality products – which aligns with our strategy of delivering high-quality product to consumers, being transparent with regard to ingredients, and providing consistent and safe food. - Were there any specific strategies that Senselet established to better adapt to the Ethiopian market?
Yes! find good local people fast to grow a strong local organization while staying close to the communities we operate in. - What Ethiopian companies/government agencies do you work with to strengthen your business partnerships?
The company has established strong business partnerships with local farmers over the past three years. Partners that have substantially contributed to the success of Senselet include the Dutch Government (Netherlands Enterprise Agency), Ethiopian Institute of Agricultural Research, Wageningen University and Research, the Ethiopian Investment Commission and regional government bureaus. - What advice would you give foreign investors/companies seeking to enter the Ethiopian market?
Understand the local context, including local laws and standards. Have patience and partner with the Ethiopian Investment Commission and make sure to have internal solutions to forex issues. Don’t expect miracles in the market as every investor will have its fair share of business challenges. And of course, always work with local communities. - What are some future plans/goals that Senselet has in terms of doing business in Ethiopia?
Winning the hearts of our consumers in the snacks market through expanding our portfolio while contributing to the development of the potato value chain and smallholder farmers.
For more questions, send us an email at info@eic.gov.et
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