A spirited negotiation is taking place between Ethiopian authorities and senior managers of Wal-Mart Stores Inc., the world’s largest retail firm, on the prospect the latter will enter the Ethiopian market through a management contract, reliable sources disclosed to Fortune.
The talks between the two parties have reached the advanced level, whereby Ethiopian authorities have agreed to form a new state owned company, Ethiopian Trade Enterprise, that will eventually be managed by Wal-Mart, according to these sources. Prime Minister Hailemariam Desalegn hinted two weeks ago, during his question session in Parliament, that his administration is close in forming a cash and carry company, hoping to fight inflation on consumer goods caused by constraints on supply and market inefficiencies.
The talks between the two parties have reached the advanced level, whereby Ethiopian authorities have agreed to form a new state owned company, Ethiopian Trade Enterprise, that will eventually be managed by Wal-Mart, according to these sources. Prime Minister Hailemariam Desalegn hinted two weeks ago, during his question session in Parliament, that his administration is close in forming a cash and carry company, hoping to fight inflation on consumer goods caused by constraints on supply and market inefficiencies.
Subsequently, the Council of Ministers has decided on the formation of the Trade Enterprise which will have an initial capital of one billion Birr, and a paid up capital of 250 millionBr., Fortune learnt.
By ELLENI ARAYA
FORTUNE STAFF WRITER
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