Could you give to our readers a brief historical background of Dinsho enterprises?
Dinsho trading company was established eight years ago, when the rule of the former government which denied the right for development of the private sector was over. Some of the companies found under Dinsho enterprises are: Dinsho Agro- Industry private limited company, Dinsho Transport Service company, Dinsho Trading company, and Biftu Dinsho trading company.
The latter is mainly involved in the export activities. Another of our companies, is Bimap private limited company which is working jointly with Italians and highly involved in agro processing activities. We do have also a company, which is formed with the cooperation of Sunny soil company. It is called Din system, where Din represents Dinsho. This company is mainly engaged in dairy and milk processing activities. Additionally, we do have another company called Afcala private limited company engaged in import and export activities. We have a number of branches throughout the country, and are mainly operating in the Oromiya regions. It is the biggest region, with a population of about 20 million people. Dinsho has so many activities, but the most important ones are its engagement in agricultural inputs, like importing fertilizers, and herbicides. Dinsho is also working closely with BASF, the largest company in the world. I have been to BASF three months ago, and they are producing herbicides, specially 24D in large quantities. The largest activity we are engaged in, is the distribution of agricultural inputs, and we do have reasons to do so. In our country, as about 85% of the population is involved in agriculture, and as the policy of EPRDF is to develop this sector, we are also eager to bring a significant development in the sector, and in the country. After all Ethiopia is a agrarian country, and in order to increase productivity, the area with providing agricultural inputs is very important. We do not only distribute agricultural inputs, but also reproduce selective seeds in our farms, to distribute it to the farmers at a reasonable price. Our aim is to get profit and at the same time to help the peasants with the development. The other most important thing, is the exporting activities. The export of the whole country depends on the agricultural commodities, and are involved in it. we export coffee, sesame seeds, oil seeds, etc.. Now we are focusing most of our efforts, to develop the export department. We want to export more, and to gain more foreign currency. Dinsho has also realized that coffee is the most important item in the export. Therefore, Dinsho is interested in buying coffee from the farmers, and exporting it to the other countries. Dinsho is also engaged in the improvement of the quality of coffee. We do have about 10 coffee washing industries, in the coffee producing regions. These are Harar,Welega, Illibabor, and Jimma. We buy the coffee directly from farmers, process it or wash it, and finally bring it to the central market or export it to the world market. That is the most important kind of activity that Dinsho is getting into, and we have a plan to increase the number of these coffee washing industries in the future. Also coffee hulling industries are planned to be increased. Recently, we do have some 4 coffee hulling industries, but we have the intention to increase them, so that to produce coffee of more quality. Coffee could then be sold with a good price, and can bring good profit to our company and to the country as a whole. By doing this, we do have outlets down in the pyramid. We do have a head office in Addis Ababa, then four main branches in the Oromiya region. The first branch is dealing with the southern part of the region, and is located at Nazareth. The second branch is dealing with the western part of the region, and located at Lekemet. The third branch dealing with the east, involved in Harar, and Jimma coffees is located in Harar. The fourth branch is dealing with the northern part of the region, and located in Addis Ababa. Apart from this, we also do have branches at the zone level. Actually, we do have 10 branches at the zone levels. We do have branches at Nazareth, Fiche, Ambo, Jimma, Metu, Borena, Bale, etc.. Under these zone branches we do have selected sales centers. We use these branches as main outlets to the farmers, to sell fertilizers, herbicides, and also to buy other products from the farmers and the local markets. We buy sesame seeds and coffee from the local markets, and then we process it. we also sell to the farmers some other commodities like soap, oil, and whatever they need at a reasonable price. Then, the contribution of Dinsho in the market area is very remarkable. We are additionally dealing with transportation. We do have a transport company. Our trucks are mainly coming from Astra company, but now we are dealing with other companies to diversify the model of our trucks. This company is helping in the transport sector. We are providing services to the farmers and to other users, and to make it efficient, we have our own garage service. We are involved in some joint ventures with some foreign investors. We have already penetrated in many important markets in terms of demand and supply. Therefore, foreign investors are very interested to work with us, and our interaction with foreign companies is very interesting. We are dealing with Unicef, Italian companies, Swedish companies, and American companies. We have a project with Italians, dealing with medicinal plants on about 300 hectares. Our first intention is to export raw as it is to Italy, or any part of the world. The second phase is to create or construct capacity, from semi processing before exporting. The final stage is to install our own plant and process it before exporting it domestically. It is a very interesting project, and Italians are very solitary investors. The other joint venture is export in insole near Langano, planted on 3000 hectares. That is under an abolition so far, with an American company. We hope in the near future it will be materialized. Regarding our sole engagement in the Oromiya region, we have different reasons. First of all, this company is supported by the regional government of Oromiya. There is no other regional states which is helping our company. They evaluated our mission, objectives, and structures before deciding to give us whatever help we need. In the first phase of our development, we have planned only to concentrate on the Oromiya region. Once we reach a rigid stage, we have plans to diversify our activities in the other regions. The second reason is that we believe that there is a high potential market in terms of demand, and in terms of supply in the region. Our company can make a difference if located in this region. We do not mean that the other regions do not have potentials, instead there are big potentials in the other regions like in the Amhara, Tigray, and south regions. However, we think that there is a very interesting potential in this region. The other reason is that, there are other companies with the same objectives and mission as we do in the other regions. We create a contact with them, when we distribute our products. We work closely with the different regions. Our reason is clear, it is to make profit and to help in the development. We found a number of companies in Amhara, and Tigray regions with similar objectives and we have created a link with them. Regarding BASF, it is Dincho who made a contact, a deal, and an agency arrangement. It is a very big company, and fourth in the world. Eventhough, the interaction is between BASF and Dinsho, behind Dinsho there are companies in the Amhara, and the Tigray regions. They will collect demand of herbicides, and we will make a demand for BASF. We share the profit between these companies. | Could you mention the financial results of Dinsho, including its turnover, and profit?
The turnover of the company is amounted to about 900 million birr. We started our operations eight years ago. It is difficult to guess our rate of profit as I did not bring all the necessary papers, but I can assure you the basic aim of our company is to pay what we should to the government. The government should administer us properly, and we should not entertain corruption and bribe. "Without including MEDROC, you are close to number one status from the private companies". We believe that, we are doing good business in the region, and we have already assigned about 300 large trucks to get fertilizers from the stocks, and distribute them to the whole country. We have about 700 employees, and we hope their number will be doubled in a year, as we still do have a number of expanding projects.
One of your main priority is to export more. At the present time which are your main export markets?
We do have liaison offices in Germany, and in England. We are now planning to open an office in the United States. While I worked in the national bank of Ethiopia, I was one of the board members of Dinsho companies. Girma is also a board member, we went to the same school, and were the same batch at the university. We know each other very well, and he was the minister of economic development, while I was in the national bank. The other board member in our company is Sultan, the finance minister. Dr. Adem Ibrahim, who was the ministry of health months ago is also a board member. He is no more a minister now. Anyway, we brought Girma from a very nice place. He came back to Ethiopia, with a very large experience and now tiding with the export market. He is the person who is dealing with the international market. To facilitate his task we contact foreign companies. Our major export market is Europe such as England, Germany, Italy, and Sweden. Our market in Africa, and the middle East include Egypt and Israel. However, our import market is diversified. We import fertilizers from Morocco, Jordan, BASF, Astra, etc..
What is Dinsho going to do in order to encourage greater contacts?
Dinsho has planned greater contacts with the foreign world. To contact investors in the United states, our board members travel 2 or 3 times a year to Washington. They try to make contact with foreign investors. I have also made contact with some important companies in terms of our objectives, mission, and capacity. BASF has got about 5000 employees, whereas we handle much less workers. BASF has got 133 years of age, while we are only 8 years old. Taking into account my capacity, and my mission I always try to make contacts with important companies, in terms of products and experiences.
Our readers are always interested in new business opportunities. In which areas of your activities are you precisely interested to attract partners, and foreign investors?
Our company is very interested to attract partners to come, and invest here. We are eager to develop more our agro industrial processing activities. As I already mentioned it in the introductory part, the country is making a very good progress in terms of everything. EPRDF has made a lot of contribution to the development of the country. I personally and my company are very confident in the future of Ethiopia. Without the case of the Eritrea conflict, we would go ahead in the development. Our people are confident that the war will be overcome in a short period of time. We hope we will not face any war in the near future. The government will create a fine condition for the private sector to straighten and develop it. We have to develop more our agro processing sector, and, I ask investors to come in, invest in our potential areas, not only to be profitable but also to gain happiness.
We also came to interview you as a businessman. Could you give us your own professional experience?
I am forty years old. Regarding my educational level, I have a second degree in economic development planning. I am now working with the company for a year, and going to finish 6 months later. Anyway, regarding my experience I have 17 years of experience. About half was done in the government department. I worked for about 9 years in the ministry of Urban Development . Then, I have been stationed as the finance manager, in the office of the prime minister, for two years. I also worked for 3 years in the Oromiya region, as adviser of the president. I have also been the governor of the national bank of Ethiopia for three and half years. Now, I am here for about half a year.
As a more personal issue what has been your most satisfying achievement, since you are at Dincho companies?
I am personally satisfied, when I am out of Addis. To see farmers using the products, that Dinsho brought for them, specially when I see farmers using fertilizers and herbicides satisfies me. I go to see the farmers, normally during the farming period, the recognize the company is making profit. Another satisfying event is the harvesting period. I know that the various agricultural inputs including the extension program have increased productivity. This productivity of the farmers without fertilizers and agricultural inputs progress could not have been attained. The countryside is changing, and the standard of living of the farmers is also changing. Farmers are starting to build their houses with different building materials, instead of grass. You can also see farmers buying shoes, clothes, and shining their shoes. All this satisfies me.
As a final issue what will be you final message to our readers?
My message is clear. We invite foreign investors to come to Ethiopia, to invest, and to be profitable. The country is promising, and we are making big progresses. To come to Ethiopia will be the right choice, even in the form of partnership. |
