ETHIOPIA
The new east african land of opportunity










Mr Omer Ali Shifaw

NEJAT INTERNATIONAL Plc.

Interview with:

Mr. Omer Ali Shifaw
General Manager

April 6th, 1999
There is no doubt, that your company is one of the leading companies in the coffee export sector. Could you give us a brief historical background about Nejat International?

Nejat International started business in 1990. 26 years ago I had different business by the name of Omer Ali. I worked for this company for a long time. We changed with things, and we have now, this new company in the name of my daughter. Previously, we were mainly doing business for import items, but later we thought about coffee, and organized the people, before starting in 1995-96, the coffee business. We have qualified people, the management is well organized, and coffee people who worked for the government for many years are now with us. We cooperated together to bring a good coffee business achievement. We have 112 permanent employees, and around 1 350 seasonal workers.

Do you have coffee plantation, or coffee processing business other that coffee exporting?

We do not have a coffee plantation, but we do have coffee clearing machines, which are the best in the country. In the countryside we have coffee washing stations, and in the future we have a plan to start a coffee plantation, if we could get a good partner from outside.

Could you give us status of your financial results? What is your turnover, and your profit?

Our profit is secret. We are in a good condition, and we have much expense, as in the coffee business, you travel a lot. In the coffee business you will get a good profit in one shipment, but not in the next shipment. The coffee business is daily changing. In 1998 we had 198 million birr of total sales, that is about $26 million.

Could you give us the main guidelines of your strategies, and where do you see the best opportunities in the future growth of Nejat?

In the coffee business, exporting by itself is not enough for our company. We have to exceed to coffee plantation. We have many competitors in the world, and we want to send the best coffee for our customers, that is starting from the beginning, from the plantation. Our government is also supporting us in this area.

Do you know, when you will have your own plantation?

We may have our own plantation after 5 years. We need partners that could be Americans, Europeans, or Arabs. As long as they have enough money to invest in our country, we will join them without any hesitation.

Where do you mainly export your coffee? What is the market share between the United States, Europe, and Asia?

For our country the main share of coffee is Europe. Following we have America, Japan, and the Middle East.

What is your specialty in terms of coffee? Do you export all kinds of coffee, or do you have any coffee specialty?

We export all types of coffee, that are found in Ethiopia.

You said that you were expecting some help from the government for exportation, but do you get any help from the export promotion agency?

This export promotion agency is just starting now. It is on the way. They will start maybe this month, or the following month. We do not have much problems, but in the future for Nejat, and for the country as a whole, it is a good organization. We are supporting this promotion agency, and we will support it in the future.

You need to have competitive advantages against your main competitors. Being the number one, which are your main competitive advantages against your main competitors?

Competition is very necessary, and our company wants the free market. If there is no competition, we will not get this chance. We work hard, day and night, and even on holidays, with the family and the management. We learn from our mistakes, we talk with the top management on daily basis, and we have also the coffee people, who have been working for the government for the last 30-40 years. I accept everything, what they told me. We learn, we want to progress, and always try to see in 360 degrees. We also brought new machines, and planted a big store, that is still number one in Ethiopia. It is a big facility, with a capacity of more that 30 000-40 000 metric tone per year. This store is not only for us, but we also give services for other exporters because it has a very big capacity. Your are invited to visit. There are many females working with us, and we have a large number of employees. This number is not easy for our poor country. We are playing our role in the development of the country.
Being a coffee exporter company, you need to look for new markets. Which are the new foreign markets you are looking for?

Our company participates every year in the coffee and tea association in America, at Philadelphia. Our management also participates in coffee and cacao tea association. We gather information from all over the world, by telephone and by fax. As I told you Mr. Argaw, and my son will travel to the United States next week. Last year and the year before we have been travelling to America. When I started business in 1995, I went to Italy, and I only sold one container. We travel all over the world. Now they will go the America, then to Europe; they will knock every door to coffee sales. That is how we got our achievement.

Our readers are always interested in new business opportunities, in which areas of your activities are you precisely interested to attract partners?

New market is very difficult in China. I went to China, and Malaysia with our Prime Minister, and with the ministry of trade Mr. Kassahun. We tried to find new markets, as the coffee business is very tough. Many buyers can not buy coffee from new customers, and that makes it difficult for our job. The coffee price, within a second of fraction will be up and down, and because of this reason, it is tough to get a new customer. They might be afraid to buy large quantity of coffee with high prices. You have to make calls and faxes many times, because one day you might get successful.

Being in the coffee export sector, how confident are you in the future of Ethiopia?

I have confidence. You must have confidence from yourself, and not by injection. I work with my family, without stop. I will do business throughout my life, until I die. This is our aim, and target. We also brought professional people, who are now working hard with us. There is no doubt for Nejat, to be successful in the future.

We also came to interview you as a businessman. Could you give us a brief historical background about your own professional experience?

I started business with only one person. I was in the spice business. I worked there for five years. Then I left that work to start my own business, with around 5000 birr. I then married Nabat, and worked in my own business for five years. After that, I was imprisoned by the military government for nine years, without a specific reason. In jail, I learned from 5th grade up to 12th grade. I also learned Arabic, and English there. I was a good businessman, with three boys, but suddenly I was in prison. When I went out from prison, my older boy, whom I left when he was five years old , was 14 years old. My children have grown up without me, and that was difficult for me. I gathered my family again, and started to work day and night. God helped us, and my family was always supportive. Little by little, we have reached this stage thanks God, my family, and my colleagues.

As a final issue what will be your final message to our readers?

For business, you first need honesty. Secondly there should not be any hesitation, rather you have to make decisions automatically. If I know the business, automatically I will make prompt decisions. Business and work is not for tomorrow, but for today. I will finish my task day and night. Third a bright future is also needed. You have to think that you will always get something out of it, and if you have any doubt you will definitely fail. This is my decision and progress, and I will teach these to my sons. Finally for the readers, our country has a free market, we have a good government, and we can express ourselves through the media, including through the newspapers. We will accept any investor who will be interested in joining us. Today, if someone faces a problem, he can automatically contact the ministers, and the Prime Minister's office is always open. For anybody who is willing to come and work in Ethiopia, this is the right time. For instance, Al Amoudin is involved in many businesses. Europeans still did not come to our country, but I do not know their reason. This is really the chance to come and work with us.


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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Ethiopia published in Forbes Global Magazine.
July 26th 1999 Issue.
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