Thursday, September 23, 2010

Re: Ethiopians are building their own cars

Whatever happened to Nyayo cars is what has been happening to great but not perfect ideas.Kenyans are a very jealous lot and are  good at subbotage.Unless we stop selfishness and learn to nature and develop ideas regardless of the originator,the  political system of the day or those running the government,we will go nowhere.Many leaders were trying to 'kill' the Moi government by all means and they did not realize that there were good projects that could have benefitted all Kenyans.I was surprised to learn that  the people who opposed and subbotaged  the project 'Maziwa ya nyayo' want it to be reintroduced.The act of  going to donner countries and stopping aid by some politicians,just because they wanted moi out was very rediculous because at the end of the day the people who would suffer when the foreign investors and donners shunned Kenya were the ordinary Kenyans and not the people running the government.The point is,there are better ways of ousting a bad government which do not retard our economic development.Let us sobber up as we seek positive change.
 
AM.

On Wed, Sep 22, 2010 at 11:19 PM, Nicholas Oyoo <oyookraft@gmail.com> wrote:
Peter,

This is a serious matter you have raised.

The reason I have problems with the EA Community agreement is for
instance we are negotiating for us to allow the importation of
vehicles aged 12 years. That means that we may be exposed to toxics
emitted as chemical used to create components breakdown, we become
consumer economy that only receives but does not produce and we will
forever have trouble in creating jobs and wealth. My personal
preference would be a year old vehicle that will get the vehicle
dealers thinking assemblies. You get a chance with technology
transfer, and so many other benefits.

I also have qualms with Foreign Direct Investments. My own analysis of
FDI is this: Take a foreigner bringing in 100M. He makes 300M.
Government will be overjoyed at the 1000 jobs he created and the taxes
he pays. But in his books of accounts, that reads as EXPENSES. He
literary uses our sweat to make 300M. And he can go and the hell and
spend it to build his country. The 1964 Foreign Investment Protection
Act gave the foreign investor opportunity to repatriate all the
profits as they make them denying Kenyans any chance to redeem
themselves by using those profits as capital for their own concerns.
And if that's not enough subsequent amendments to the Act have made it
even more attractive to foreigners. I sensible FDI policy would look
for means to receive a share of the profits after expenses have been
removed.

And the government knowingly or unknowingly, through its policies as
well as practice continued to discriminate against the domestic
investor just as we have overlooked the domestic tourist. Take the
Matatu industry, with 95% local investment. It happens to be the most
targeted sector. In the mid 90s the were over 15 body builders
competing to outdo each other to redesign the manyanga and the
vehicles themselves competed with each other. Benefits for commuters
included lowest fares possible, well maintained vehicles, and even
courteous crews emerged.  Then someone decide that queues were
orderly. Suddenly vehicles that were headed for kubeba waru na mikate
returned to the roads. Accidents too must have increased. The crew
acquired a new utado? Attitude. During that time quality vehicles were
exported all over East and Central Africa. I'm sure GM can tell how
much they used to generate back then. With the queues, there was more
congestion as matatus take longer. Then there is the big one that
economists must tell us. The Man hours we loose daily. A progressive
government would have even listed the Manyanga as a tourist
attraction. Today, we even import PSV buses! Smart buses are a good
example.

Ethiopia, Eritrea and Rwanda are showing the way forward



On 9/19/10, Paul Nyandoto <paul.nyandoto@phsotey.fi> wrote:
> Kenyans,
>
> Let us wake up. Ethiopia has registered the highest economic growth in
> Africa. The Ethiopians are busy building their own cars using either
> electricity of bio-gas. They have seen that importation of used cars
> from outside is just giving jobs to foreign countries and bringing more
> pollution to Africa, now they build their own. Please also see BBC
> economic report on Africa. The Ethiopians are now planning to build big
> buses for home use and exportation. There is a lot of market  in Africa
> the work force  and raw materials are  cheap so why importing?. I do
> praise Ethiopians on this. What happened to our nyayo cars in Kenya?.
>
> Paul Nyandoto
>
>
> http://www.newbusinessethiopia.com/index.php?option=com_content&view=article&id=248:ethiopians-prefer-driving-home-grown-cars&catid=31:investement&Itemid=7
>
> Ethiopians Prefer Driving Home-grown Cars NewBusinessEthiopia.com
>
>
> CONTRIBUTOR
> With public purchasing power on the rise, Ethiopia's small but emerging
> middle class yearns to cruise around Addis Ababa in style.
> A model by Lifan motors, Former Partner of Holland car plc now its
> market competitor
>
> They refuse to pay sky-high import taxes for second hand cars. Instead,
> they prefer driving around in home-grown vehicles.
> The supply of new models assembled in Ethiopia increases and this is
> reflected in the streets of the capital city. More often the "Ethiopian"
> cars appear among the chaotic traffic that is still dominated by rundown
> Lada cabs and Toyota Corollas.
>
> It costs a small fortune to get a second hand vehicle from the West
> through the port of Djibouti into landlocked Ethiopia. Although taxes
> have been reduced, they can still rise up to over 100 percent of the
> purchase value plus the transportation costs, i.e. unaffordable to many.
> For a twenty years old Toyota Corolla, for example, you pay 12,500 euro.
>
> The solution is simple: import spare parts, from China for example, and
> assemble them in a factory with relatively cheap labour. Although a
> simple strategy, it's quite unique on the African continent. Various
> investors in Ethiopia saw the opportunity and grabbed it, Holland Car, a
> Dutch-funded company, being the first.
>
>
> A model by the Pioneering car assembly in Ethiopia- Holland car plc
>
> Sishah Yohannes, a forty-year-old captain at Ethiopian Airlines, drives
> his Ethiopian-assembled Holland Car Awash for a month now. "I'm really
> proud when I see the name written in Amharic on the back," he says while
> parking at the Bole Medhane Alem Church. "This is what I've been waiting
> for: a good Ethiopian product after all this talk about economic growth."
>
> Holland Car's general manager, Tadesse Tessema, convinced the Ethiopian
> government to lower import taxes on spare parts, making the business
> even more attractive. Shortly after, he presented three models, all
> named after Ethiopian rivers: Abay, Tekeze and Awash. Recently they
> launched a new family car: Shebele.
>
> Other car assemblers followed suit. First there was competition from
> Holland Car's former Chinese partner. Yangfan Motors launched three
> models of its Lifan Cars in Ethiopia. One of them shows resemblance to
> Holland Car's Abay. The two companies split after a dispute and used to
> produce the model together.
>
> A nice spectacle in the streets of Addis is Lifan's Mini-Cooper
> look-a-like, the Lifan 320. The company prefers to describe it in
> masculine terms as a "mini-SUV with the power of a bear", but it's a
> "typical lady's car", according to car salesman Thomas Mulune.
>
> The latest competitor for the passenger's car market is Hyundai. The
> South Korean company enters Ethiopia with heavy artillery, Haile
> Gebreselassie being its ambassador, investor and sole importer. The
> assembly plant is under construction and personnel are to be trained to
> assure "international standards", the successful athlete said.A model
> recently assembled by BH Trading and Manufacturing Plc
>
>
>
> Satisfied with the competition in the market he init
> iated, Holland Car
> CEO Tadesse is preparing for a new step. He's building a gigantic plant
> that will be finished in two months. From that day, he will slowly
> reduce the import of parts and work towards producing full Ethiopian
> cars.
>
> "As a pilot, I'm can choose between different cars from all over the
> world," Sisha says. "But I prefer to encourage guys like Tadesse and
> Haile by buying Ethiopian ones. If the quality is there, of course."
>
>
>
>
>
>
>
>
>
>
>
>
>
> --
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