Ethiopian Coca Cola Company in debt

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Coca Cola might be the world’s most valuable brand but it has a debt problem in Ethiopia, the weekly Amharic paper Ethio-Channel reported. The East African Bottling Company (EABSC), Coca Cola’s maker, reported to the Ethiopian Revenues and Customs Authority it is running in loss and is unable to pay taxes. The paper quoted unnamed sources as saying that the company owes 287.8 million birr to the Authority, and said it could only pay in phases.
Ethio-Channel also indicated that a dispute has occurred between shareholders and the South African Beverage Company (SABCO). EABSC is owned by Coca-Cola Sabco and four other Ethiopian shareholders, Negusse Hailu, Munir Duri, Dereje Yesuwork, and Abinet G. Meskel, close confidants of the tycoon Mohammed Al-Amoudi. 85.37pc of the company is owned by SABCO, the remaining 14.63pc is owned by the shareholders.
Sabco recently appointed three board members from abroad without the knowledge of the existing members, which might have started the dispute, the paper wrote. Some of the original shareholders have appealed to government officials on this “injustice”, Ethio-Channel wrote without giving names. The paper said Sabco declined to comment on the issue. Reached by the Ethiopia Observer, Negusse Hailu, one of the shareholders denied the report and said that he “personally had no problem with SBCO.”

Arefayné Fantahun
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Discussion about this post

  1. Arkebe says:

    It could be a fellow or a group close to ruling party wants to takeover. Simple. This is how every “privatization” and back to state control strategy played out so far.

    Arefe, Please report back on developments in the story. Thank you.

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