There are tremendous opportunities inherent in a market of 60 million persons with very limited manufacturing resources and industrial activities locally. Until 1996 there were only 450,000 television sets in Ethiopia for a population of 60 million. The principal reason for such a low number was that the the television sets that were on the market were simply unaffordable.

The immediate challenge was to find ways of reducing the price. A market study was subsequently conducted and the first thing that became apparent was that television importers were buying from the Midlle East where there are no television manufacturers. Ethiopian importers are buying from importers. The company's first move, there fore, was to buy directly from the manufacturers. One of the immediate results was a remarkable drop in market price. The price of 21 inch sets dropped from around 4000 birr to 2900 birr (1 USD = 8 Birr , approximate 1999 rate). Within a year more than 10,000 television sets were sold.

The quest for finding additional price reduction mechanisms led the United Tebarek and Family, Plc in the direction of opening production facilities within the country.

In 1999 the United Tebarek and Family, Plc in collaboration with Vestel Electronics of Turkey, set up the first Television assembly plant in Ethiopia. It was a brave and unprecedented move, especially in a market that is partial to imported products. The public reaction has been entirely positive. "People like the fact that the assembly is done in Ethiopia, that we dared to bring in the technology and set up the outfit here", explains Ato Abdulrazak Hassen, General Manager of the United Tebarek and Family, Plc. Ato Tebarek recalls, "the response to our venture was quite interseting.This is the first of its kind in our country; technology wise it is unique. I remember one day I was in my agent's shop and a man came in and asked for a 14'' television set. He told mr 'I have two television sets in my house-I am not in need of an additional set, but I just want to encourage you."

Assembly Plant Capacity

The televsion assembly plant currently operates with one assembly line capable of producing upto 70 television sets per eight hour kshift. Annual production capacity is between 42,900 and 601,000 14 inch and 21 inch color television sets.

Benefits of Local Assembly

Assembling Vestel Television sets locally has allowed the United Tebarek and Family,PLC to dramatically reduce the cost of owning a television set in Ethiopia by as much as 30%. Television sets are sold from the company's main sales outlet at Arada in the heartat the commercial distrivct,as well as through representatives and sales agents throughout the country. Additionally vestel television buyers are provided with a three-year warranty. With spare parts and maintenance facilities available locally, the Vestel product has a unique advantage over other brand names in the Ethiopian Market.

Local assembly allowed the technicians at the Kality plant to introduce innovations that render the television sets more adopted to Ethiopian traditions. For example, the power supply on the locally assembled television sets has been modified to accomodate power surges that arefrequent occurences in Ethiopia, and which are often responsible for damaging sensitive electronic products.

The assembly plant represents a significant transfer of technology to the Ethiopian economy. The plant is also a leading force among the COMESA countries, first to offerits products for export within the 21 country community. The company has already exported to Zimbabwe, and procedures are currently under way for export to Tanzania and the Sudan. Preliminary discussions has also started with importers in South Africa. The

The Kality Television Assembly Plant has thus far opened employment opportunities for 47 employees. The plant requires a competent and skilledlabor force capable of producing to very high standards. As such it is adding to the pool of skilled labor in the country and providing work in an economy suffering from high unemployment rates.

Home