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www.connectethiopia.org. WHAT IS CONNECT ETHIOPIA? Established in 2005 by Philip Lee & Brody Sweeney Business-to-business charity Offices in Addis Ababa & Dublin Addressing the cause, not the symptoms Focusing on capacity building, trade and investment. www.connectethiopia.org. OUR GOAL
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WHAT IS CONNECT ETHIOPIA? • Established in 2005 by Philip Lee & Brody Sweeney • Business-to-business charity • Offices in Addis Ababa & Dublin • Addressing the cause, not the symptoms • Focusing on capacity building, trade and investment www.connectethiopia.org
OUR GOAL • CONNECT: the efforts of the Irish business community • FOCUS: the combined efforts on one country – Ethiopia • BUILD: capacity to help stimulate the economy www.connectethiopia.org
WHY ETHIOPIA? • Dynamic country with huge potential • Low corruption • Safe • Sense of nationhood • Politically stable • Excellent relations with Ireland • Identifiable with emotional ties • Full embassy • Priority country for Irish Aid • First class Ambassadors in Addis & Dublin
SECTORAL TWINNING • Coalition of Irish stakeholders • Irish – Ethiopian tourism taskforce • Chamber of Commerce (Dublin - Addis) • Law society • Engineers Ireland • Institute of Bankers • Trinity College • Insurance Federation • Community twinning (Sodo – Skerries) www.connectethiopia.org
BUSINESS TWINNING • Coffee • Textiles • IAWS • Tourism • Venture Capital Fund • Agri-business • IT outsourcing (M/A Com – Lava Solutions) • Telecommunications • Microfinance & banking • Photography www.connectethiopia.org
KEY PROJECTS • Rule of Law • Coffee • Textiles • Tourism • Venture Capital Fund • IT & Telecommunications www.connectethiopia.org
TEXTILES • SME producers • Business Development Training • Mentoring • Expanding design element • Distribution – department stores/boutiques • Industrial - Garment Manufacturing • Establishing business links www.connectethiopia.org
Information Technology • Outsourcing component manufacturing (M/A Com - Lava Business Solutions) • Facilitate the establishment of Ethiopian IT providers on virtual outsourcing platform www.connectethiopia.org
OVERVIEW OF LAVA BUSINESS SOLUTIONS RELATIONSHIP • MANAGER:AIDAN MAGNER www.connectethiopia.org
Cork Operation • “Core” products are very labour intensive hand wound sub miniature transformers. • In 1990 we started outsourcing of manual labour to China and gradually evolved to a full turnkey product solution. Currently 1600 employed at that site • In 2000 we worked with a local factory in HoChiMinh City, Vietnam. There are currently 1200 employees engaged on our products in this facility. • In 2006 we launched contract manufacturing in two locations in India, currently they have a combined employee base of 300 people. • A core element of our manufacturing strategy is to have our assets in low cost countries and close to our largest emerging markets. • Pricecompetition in the market increased significantly during 2008 • - Mid 2008 a decision was taken to look to new low cost manufacturing solutions. www.connectethiopia.org
Search • Short listing of countries by GDP per capita, Human Development Index, Industrial Developments, Social & Political stability, Education Standards, etc • - Indentified possible solutions in Sri Lanka and Ethiopia • Connect Ethiopia provided perfect platform for accessing and entering Addis Ababa • - Local knowledge • - Recognised brand name • - Access to political support • - Work around for investment proclamation 207/2002 that states that any FDI must be $100k minimum investment www.connectethiopia.org
Lava Business Solutions • Initial visit August 2008 • Company registered Jan 2009. 1st electronics company in Ethiopia • $10K seed money invested in Lava • Engineers and equipment sent in March 2009, initial samples sent in May 2009 • Decision taken to install “hybrid” solution. Vietnam factory would subcontract to Lava for manual operation. • Visit in February 2010 coincided with real business need to scale operations • Decision taken in March 2010 to move 3 high volume lines to Addis Ababa • - Projected 250 people by November 2010 • - 3 year plan to scale to 450 people • - Potentially 600 people www.connectethiopia.org
What will it mean • Lava benchmarked local wage levels • - They are paying above average wage • - Incentive schemes in place • Clean, low risk manufacturing environment • - Training and Mentoring scheme (business management, accounting, working capital, manufacturing, logistics, quality controls) www.connectethiopia.org
What will it mean • Sustainable employment • - As Lava develop, bring more customers, career paths develop • - Assist in local economy development • Next generation entrepreneurs www.connectethiopia.org