Saturday, July 13, 2024

ZayRide founders add Abyssinia Cement to investment portfolio


Founders of the pioneer cab ride-hailing service provider in Ethiopia, ZayRide, take ownership of Abyssinia Cement, a cement miller, located at the northern outskirts of the capital.
Habtamu Tadesse, CEO of ZayRide revealed that his company is diversifying its business ventures in different sector such as manufacturing, agriculture and service sectors including the digital financial sector.
To add to the growing portfolio, the company disclosed that it has accomplished the ownership of Abyssinia Cement located at Chancho, about 45km north of Addis Ababa in Oromia region.
The CEO said that the cement industry was one of the in high-demand lucrative businesses in the country hence the company leaned easily to invest on the industry.
The acquired factory was established almost 15 years back, with the miller having suspended its operation about two years ago. The factory at the current stage mills 500 tons per day, while at its full capacity it has the luxury of producing 1,500 tons per day.
The transaction consumed about 600 million birr, while additional costs to revamp and commence operations may be incurred.
“At the inception, it may need an additional 150 million birr in running cost,” the CEO said.
The factory is located in an area that has enormous limestone resources, which is a major input for cement production. “The youth in the area will supply the limestone,” he explained.
“To start the production phase may take up to two months. So far we are on the maintenance stage and we are drawing linkages with the market and agents,” he added.
“In all the businesses that we have ventured in, we are working aggressively to offer premium services. We may also be the only company that started export within a four month timeframe after embarking in agricultural investment that we have at Gambella region,” Habtamu said signaling that the same pace will be transmitted to the new venture of the cement factory which will start production sooner rather than later.
Most of the big cement factories in the country are located around the area now invested by the ZayRide founders.
On its farm in Gambella, the company produces and exports sesame and green mung bean.
Founders of the first meter taxi in Ethiopia also formed Arifpay Financial Technologies, a financial institution licensed by the National Bank of Ethiopia which provides digital payment solutions, through ArifPOS and ArifGateway.
Arifpay is one of the pioneers on Point of Sale (POS) and Payment System Operator (PSO) with payment solutions for smartphones, POS and QR payment terminals. It has also secured a license to provide payment gateway solutions including utility bills, airtime top up eCommerce, school fee processing and others.
Habtamu claims that his meter taxi is not only a pioneer on the technology based taxi hailing service in the country but ZayRide is also providing the service at comparably competitive rates.
Currently, the founders of ZayRide are involved in the hospitality industry, farming through ventures in sesame and green mung bean, and are also producers of Nigus Honey, and supplier of military logistics. The company also develops and exports software and applications
“We are constructing an electric car assembly at Debre Birhan, 130km north east of Addis Ababa,” said Habtamu showing the breadth of their work portfolio.

Read more