[DEHAI] N'FETN update #3
Tewelde Stephanos (tstephanos@JUNO.COM)
Wed, 3 Sep 1997 23:16:01 GMT
Selaam and warm greetings on the occasion of Bahti Meskerem!
You may be wondering what has been happening with N'FETN Enterprises
since our update of June 9. During the two-month period when I was in
California, USA, there have been changes in government personnel and
policies that affected the plans of N'FETN. We had hoped and planned
that progress would have been made on the land issue and on obtaining
additional business licenses. This is a report on where we stand now and
on our immediate plans.
The most complex issue is obtaining land for the poultry and animal
feed projects, especially in the Central Zoba around Asmara. First, the
land proclamation of March 1997 changed the procedures, and then we had
to wait until the locations for raising animals had been determined.
After these decisions, the land distribution started and then stopped
again, and that's where we are today. There's lots of confusion and a
lack of official communication on what's happening.
In the long run, the government policy of distributing land outside
of Asmara will benefit the country as a whole by encouraging economic
development over a wider area. However, in the short run, it will hinder
business growth because new enterprises have to foot the bill to develop
the infrastructures of water, roads, elecltrical hook-ups, etc., in order
to start.
As to obtaining new business licenses, N'FETN partners here in
Asmara decided in July not to press ahead because of changing conditions
Now that I have returned, we have resumed the process of obtaining a
license to assemble and market a portable versatile grinding mill like
the one we are using in Adi Teclesan.
HAMMER MILL ASSEMBLY: A NEW BUSINESS CONCEPT Because of the
success of this mill in grinding berbere and shuro, we have decided on a
new plan. The first phase of this plan is to bring in several of these
mills to use as demonstration models to develop the market for
village-based hammer mills which will grind everything: barley, wheat,
berbere, shuro, and all. The second phase is to arrange to assemble and
market them in Eritrea and Ethiopia. We have obtained the exclusive
marketing rights to this mill, and we making all the arrangments to go
into production. The prospectus of this business plan will be ready
soon.
ADI TECLESAN BERBERE MILL This business has been operating for
three months and is working as expected in this start-up phase. Despite
the pre-harvest economic condition of the farmers, sales tripled in the
second month as compared to the first month; so profits for June and July
averaged over 900 birr per month. Thirty shares are available at $120
per share, so if you want to become an investor, let us know now.
MICHAEL'S POTTERY Michael is still searching for a suitable place
to start his business. Such places are scarce because, for busineses,
owners often ask five times the residential rent and two or more years'
advance rent. Ghebrecristos is working with Michael and property
brokers, so hopefully something will be found soon. Investors interested
in Michael's business should inquire, and those ready to invest should
start the process.
POULTRY BROILER BUSINESS This project is still very much needed in
the marketplace, as local live chickens were selling for 30 birr at the
time of the last feast day. The stumbling block has been land. We are
again focusing attention on renting a place near Asmara so we can get
started soon.
If you are ready to invest in one of the four businesses described
here, request the information you need and our Investment Remittance
Form. You must be aware that it will take five to six weeks for your
investment to reach us and be cleared by the Commercial Bank. We want to
assure you that, if for any reason your investment cannot be used as you
intended, it will be returned in full.
We are ready to start in these four areas. Are you ready to be part
of Eritrea's first private small-business development activity
For N'FETN Enterprises,
Wayne Kessler, General Manager
wayne@nfetn.gemel.com.er