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Negusse Hailu, a prominent Ethiopian businessman, was one of several Ethiopian partners who purchased the state-owned East Africa Bottling Share Company (EABSC) from the former Ethiopian Privatization Agency in 1995.
Abinet Gebremesqel, Munir Duri, Dereje Yesuworq, Shadia Nadim, and Hussein Abedella were among the other prominent Ethiopian businessmen involved in the acquisition.
The five partners joined forces with the South African Bottling Company (SABCO) to purchase the business and then formed a private limited company, which was later transformed into a joint venture in 1999 under the name EABSC.
In a recent interview with Billionaires.Africa, the Ethiopian businessman clarified a report published on April 3, 2021, and concerns about his shares in EABSC as he recounted his journey as a successful businessman who built a fortune in Ethiopia from the ground up through hard work and determination to create shared wealth in the country.
— Walk me through your childhood and some of your major life events. What was it like for you to grow up; where did you go to school, and what are some of your earliest memories of your first entrepreneurial ventures?
I was born in Ethiopia in 1969 to a father educated at the American University in Beirut, who after graduation in 1953 had the opportunity during Emperor Haile Selassie to become the foreign exchange director, replacing then a British citizen, and a mother who graduated from commerce school but chose to be a housewife to raise my sister, cousins, and me.
In Addis Abeba, Ethiopia, I attended Lycee Guebre-Mariam, a French international school. The school provided me with not only a great education, but also the opportunity to form long-lasting friendships with people from 48 different countries who now live all over the world.
My father, who has instilled in me the values of discipline, morality, and humility, was forced to flee Ethiopia during the Derg regime (Socialist-era Ethiopia).
In his absence, my godfather Antonio Varenna (an Italian national and businessman) and my uncle Abiselom Yehdego assumed the roles of father figures in my life, raising me to be a good citizen. Antonio Varenna was one of the first investors to come to the Derg era to invest in textiles, after being invited by two of my uncles.
Since the age of 10, each summer break has been spent as follows: working for two months, taking a 15-day vacation wherever I want with my family, and then preparing for the upcoming school year. My first summer job was in a family garage, where I worked for two summers in a row. Following that, I worked at a printing press and a bakery owned by my family, and my final summer job was at an Ethiopian government-owned shoe factory with an export managed by Antonio Varenna. Under Antonio’s supervision, I was able to obtain all of the certificates required for agriculture and textile from Europe shortly after graduating from Lycée.
Joining Antonio, the pioneer, to export Ethiopian garment products gave me the opportunity to be the first Ethiopian to export to the Italian market fruits and vegetables such as beans, strawberries, asparagus, and sweet melon with the help of my Italian family Case Anselmo. As a result, my entire childhood revolved around the family business. The farm was my idea, with the encouragement of Antonio Varenna’s Case Anselmo family, even though Antonio helped me until the end of his life.
— During a privatization exercise in 1995, you took control of EABSC from the government. What prompted your entry into the beverage industry, and what series of events led to your acquisition of the company? Tell us about the company’s history and how it got to where it is today.
The government announced the privatization of the Coca-Cola, Pepsi, and Ambo factories in 1995. Munir Duri had the vision to participate in this venture. He had gathered all of the necessary paperwork, while I had gathered the financial information. Bereket and Kassim raised their own funds as well. Furthermore, Bereket, who has corporate experience, assisted Munir, while Alula continued to work on the day-to-day operations of our other businesses. Inchcape was our sole competitor in this new venture. We both failed on the first try because our offer fell short of the government’s expectations. We met the government’s expectations on the second try and were awarded the Addis bottling company. Our goal was to expand to Eritrea, Somalia, and other African countries, so we chose the name East Africa Bottling Pvt Ltd.
Kassim Houssein, Munir Duri, Bereket Haregot, Alula Araya, and I founded East Africa Bottling Pvt Ltd in 1995. A negotiation with the SABCO began in early 1996 and was completed in 1999 in an effort to expand the company. As a result, the name of the company was changed to EABSC. Personally, I believe that selecting SABCO as a partner was the best thing we could have done for the EABSC.
SABCO is a family-owned company that was already in the Coca-Cola business and worked from dawn to dusk. We only sold 5 million crates when we first started in 1995, with more difficulty during rainy seasons. Today, thanks to their expertise and capital injection, we have reached 100 million crates with no stock.
— Can you provide more background on the company’s operations and some of its major achievements to date, as the chairman of EABSC?
EABSC is a company that grows at a rate of more than 25 percent per year, the firm is a platinum taxpayer, and is well managed in the business world. The CEO is the company’s executive, while the chairman is in a non-executive position.
— How have EABSC’s operations evolved over time, and what has contributed to EABSC’s extraordinary success in Ethiopia: how big is it in terms of revenue, profit, and job opportunities?
For the last 10 years, EABSC has grown at a rate of 25 percent per year. After 2006, the beverage industry as a whole expanded. Coca-Cola has not only grown as a result of experience, but management has also managed to maintain a market share of 60 percent for the last nine years. Coca-Cola, as previously stated, is one of Ethiopia’s top five taxpayers. Our company has received the platinum price from the PM on a consistent basis.
— You have previously sold some of your EABSC shares. What is EABSC’s current shareholding structure?
My 26,000 shares were diluted to 11,054 by the end of 2017. After 2017, I had 121,000 paid-up shares and 5,000 unpaid shares. I sold 50,000 of my shares to three individuals in April 2021, and I still own the remaining 71000 paid-up shares and 5000 non-paid shares. I am still the chairman of the EABSC as well as the director of Ambo mineral water.
— What major obstacles, in your experience as a successful entrepreneur, must be overcome to encourage the formation of businesses?
I can’t take full credit for my success. I can only say that I was fortunate to have influential people in my life, including my father, uncles, and godfather. My father, an educated, generous, and knowledgeable man, showed me what it meant to be successful. My generous uncle, Abiselom, taught me how to socialize and be nice to everyone. My uncle Yehdego taught me about the wonders of nature and the joys of traveling. Most importantly, my Godfather Antonio, a generous man, taught me to be a strong, hard worker, and fighter. Last but not least, my Lycée classmates who have given me friendship, love, respect, and the ability to welcome me wherever they are. Most importantly, Amaretxh’s prayer group gave me faith, hope, and divine power.
— Most people identify you with your interests in Coca-Cola. What are some of your other interests?
My interests are in agriculture, manufacturing, and mining in Ethiopia and elsewhere, primarily in gold as a deal maker. I also represent various international companies in Arica’s east and horn. I am proud to be called “Negusse coca,” I fought so many battles that had nothing to do with my shares, but in every battle, people envious of my shares wanted to take me out of the EABSC, and thanks to the Lord, I survived, but I prefer to be called, “The Farmer.”
— What does success mean to you?
For me, success is waking up when my body wants to, doing what pleases me, being known as a helper, and, most importantly, being a pioneer in what I do. My personal interests include farming and making deals in mining large contracts.
