Q. There is no doubt that the inauguration of the partnership with Vestel and United Tebarek was important in the economic history of Ethiopia. Could you then give to our readers, a brief historical background of United Tebarek & Family company and your relation's evolution with Vestel?
A. To start from my academic subject, I graduated from one of the most famous technical schools of the country 25 years ago. Since my graduation, I was always interested in the electronics field, and on how the world's electronics field was developing day by day? My interest was not just to be employed in a government company, I was interested in bringing the world technology to my country. I wanted to run with the world rapidly growing technology. I then tried to establish my own company and to work in Ethiopia. However, the previous regime was not giving us the chance to invest, or to make trade. The only chance I had was to leave the country and stay abroad till political stability was restored. I went to the middle East, and stayed there for about nine years. When this government came to power, I heard from my family that there was an opportunity to do business in Ethiopia. I then went to Hong Kong, made contact with one company, and started sending some electronics products to my country. The pre business market possibility in Ethiopia, encouraged me to come and create a company in Ethiopia. I came back to my native land four years ago to establish United Tebarek & Family Company, and entered in the electronics business.
One day, while I was reading the Times magazine, I saw special issue for Turkish and Vestel advertisement. At that time, I was importing electronic products like TV and tape recorders from Hong Kong. I then send a letter to their company. They were happy to invite me, and to make me visit the company. I went to Vestel for the first time on May 1997, and I saw that they were kind and cooperative for investment and transferring technology. They said: " let's try the Ethiopian market, as we have never been to Africa". They asked about the potential of Ethiopian electronics market. I was full confident of that market, and told them that I sold more than 10 000 TVs in one and half year period. They were convinced, besides I told them that I was ready to invest. I had an investment license for the investment office, and the first assembly factory in Ethiopia was done by our corporation. Primarily, we had an agreement with Vestel company to invest jointly. However, they had a delay for some case, and I did not want to waste my time and loose this chance. I told them that they can come and invest whenever they are ready, but they will have to let me start right away. I asked for the necessary machinery, technology, and to build the company. I told them that I was ready to pay whatever it costs, and I will buy components from your side. They said that they will immediately come and invest in Ethiopia, once they will see my success. It is now 100% my company's investment, which was about 4.5 million ETB. In the future I hope we will expand this factory by gaining a partnership with Vestel company.
Q. Could you give us the main guidelines of your strategy, and where do you see the best opportunities in the growth of your joint venture with Vestel?
A. As you know the electronics market area is really untouched. The population of Ethiopia is about 60 million, and until today there is not half million TVs sold in Ethiopia, so you can imagine the capacity and the size of the market. Electronics field is not an investment where you can say: " I did this investment, where I can work for ten years". It always needs expansion. For instance, when you are working with television you have to go through Internet TV systems, PC computer monitors, tape recorders, radio cassettes, some chicken appliances, etc..To expand these, only with my investment is impossible. I can not satisfy the market demand. Therefore, we must join with huge premise companies in the world like Vestel. For instance, Vestel is now the largest color television producer in the world under one roof. No other company is producing 4 million color televisions under one roof. We were the first company to drop the price for color TVs of 20 inch from 4000 Birr to 2 900 Birr. Following this price decrease, we sold more than 10 000 TVs. People really like to buy TVs. If you go to the remote areas, they do not have enough furniture to sit and watch television, but you can find a television in their house. If you reduce the price by any means, you can sell more and distribute in more areas. Price going with quality is very important. | Q. Do you have any plans to expand your activities in the horn of Africa, and in the Ethiopian neighboring countries? what will be your role in this part of development?
A. I am the exclusive agent not only for Ethiopia, but also for East Africa with a total of seven countries. This includes Eritrea, Djibouti, Ethiopia, Somalia, Kenya, Uganda, and Sudan. I am the sole distributor for those countries. As you have seen our opening ceremony, there were some customers form Kenya, and Zimbabwe. With the latter, we have already finished all the necessary things to ship our first production by the end of this month to Harare. According to them, we have an agreement with Ethiopian Airlines which is a very good opportunity for African countries. Instead of waiting for 1-2 months for products coming from Turkey, they can get there shipments immediately within one day from Ethiopia. Vestel strategy and future plan is to make Ethiopia its strategic place. Vestel company is producing 4 million, and still their capacity is full. Some times, we can not get shipment in the time which we need. Whatever order is coming from Africa, they want to send the shipment from Ethiopia, as we work jointly. Our future plan is to expand the capacity of production lines and to export for all African countries from Ethiopia.
Q. Is there already a time frame to those exports?
A. According to my discussion with the vice president, the paper work for joint venture has already started. Whereas for exporting to African countries, we will start by the end of May with Harare. For other countries, it will be after our joint venture. Hopefully, within six months, we will reach to agreement, and we will start expanding our factory. The management will come from Turkey to work together with us. Technical persons, and market researchers, all from Vestel side will come here and we will work together. We will expand our market area to most of African countries. We might be ready to export to African countries by next year.
Q. How many jobs have you created, and what will be the evolution concerning your factory?
A. As this is the first investment on this field in Ethiopia, it helps to much, and not only on job creating. Electronics trade was in customers mind, and there were no trust in companies. Some individual will go to Merkato and buy a television with a brand from some shop, but if something bad happened on that television, he will not find that shop, next time he will go back. It might be closed, or something else will be sold in the shop. In the contrary, we create trust in our customers mind, that this factory is a guarantee for them. Even before we invest on assembly line, while we were selling trade on import, Vestel was the only company to give two years guarantee. We have stand-by televisions, and when our customers come with some complaints, we immediately take the stand-by television and go to their home. If it is a wire connection, or something technical we will do prepare it there, if not we will take the stand-by television put it in their home, and prepare their TV in a maximum of 24 hours, and replace it again. We do not want to create a bad impression about our brands in families. Before, our customers were not even using the remote control, as they were afraid to break the television. They were only using the on and off button of the television. With Vestel we have translated the operation manuals into three main national languages, which was done for the first time. Our customers are now more aware of our products.
Q. What has been your most satisfying achievement, since you are the managing director of United Tebarek & Family Company?
A. I am very satisfied, as it is a unique thing for my country. My mentality, and feeling is not to generate income, as this can be done through different ways. Bringing new technologies to my mother land and to create more job opportunities is my achievement. Not only to be users of technologies, but to create new technologies is the advantage of this investment, and such kind of things make me very happy.
Q. As a final issue, what will be your final message to our readers?
A. My message on behalf of my country is that this is an untouched market, and there are not yet investments made in Ethiopia. I will be glad if some companies could come in all fields to join us and invest more in Ethiopia. There are many new lines that can be created in Ethiopia. |
