From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Tue Mar 17 2009 - 05:24:26 EST
Coca-Cola shuts down in Ethiopia
Ethiomedia | March 15, 2009
Over 150,000 employees have been laid off, and their future remains
uncertain, company officials told the online Ethiopian Reporter.
Coca-Cola had slashed production by 75 percent to stay alive in the
market, company managers said, until total lack of imported production
inputs forced the closure on March 12th.
The company had asked the National Bank of Ethiopia for credit but its
request was rejected on policy grounds.
Hotels and restaurants as well as other small businesses have been
selling the soft drink at 5:00 Birr (0.50 US cents), which is twice the
regular price. "Now the issue is not about the price but the
disappearance of the drink altogether," sources told the Reporter.
Board directors of the company are due to meet the government over
rescue talks next week.
One of the oldest businesses, Coca-Cola started production in the
country in 1959, and is the first of its kind in Africa or anywhere else
to shut down due to foreign currency shortage.
Observers say what is a doom for Coke could be a boom for its rival
Pepsi, which is owned by Ethiopian billionaire Sheikh Mohamed Al-Amoudi.
The shortage of foreign currency has further compounded the economic
crisis in the country. On Thursday the Central Statistics Office
reported inflation of food prices had reached 104% last month, up from
98% in December 2008. (Ethiomedia)
http://www.ethiomedia.com/aurora/2009.html