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Government of Ethiopia to sell 51 percent of its share in Tepi Coffee Plantation to Green Plc


The company pays 111.3m Br as down payment for the JV it bought 51pc of


By Eden Sahle

October 2, 2011

The Privatization and Public Supervising Agency (PPESA) is to hand over the management of Tepi Coffee Plantation to Green Coffee Agro Industry Plc on Monday, October 3, 2011, after the latter bought 51pc of the shares in the plantation.

Green Plc paid 111.3 million, 25pc of the shares it bought, two months ago. The 10,000ht plantation rests in two regional states, with 32pc in Gambella Regional State and the rest in Southern Regional State.

The plantation, worth 873 million Br, was first put on the auction block two years ago. However, the offer was cancelled as Green Plc was the only one which showed interest. It was retendered a year and half ago, and Green Plc’s joint venture proposal was accepted.

Tepi coffee plantation was one of the three plantations under Coffee Plantation Development Co along with Bebeka and Limu coffee plantations. Bebeka was fully sold to Horizon Plantation some time back. The agency has plans to sell Limu this year, according to Fitsum Mesfin, deputy general director of the PPESA.

Tepi is largely covered by the coffee plantation, around 80pc, with the remaining covered by spices, palm and fruits. The plantation produces five quintals of coffee per hectare using 2,335 permanent and contractual employees.

Green Plc, which was established in 1998 with a start-up capital of 30 million Br, plans to raise this production capacity to 12 quintals, according to Tadele Abreha general manager of the company.

Green Plc, which has raised its capital to 100 million Br, has a 2,000ht coffee plantation in Keffa, Oromia Regional State.
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