Foundation Obelisk Ethiopia
Mercato Production Line
Production Line French Fries (and Cri sps)
Proposal Small business: 10-03-2006
I first visited Ethiopia in 2004 and I worked there for four months as a volunteer with CHA D-E T, an
official and licensed Ethiopian NGO. CHA D-E T’s beneficiaries are abus ed and vulnerable children
living in appalling conditions in Addis Ababa and the countryside. Amongst many other things, CHA D-
ET provides girls now working in the sex industry with condoms, medical care, AIDS/ HIV awareness
and general healt h counselling. Furt hermore, CHA D-E T has initiated training facilities to teach the girls
new skills that will enable them to start a small business and leave the sex industry.
Following my first visit, I searc hed for a way forward and new skills for these young people. I have
been an entrepreneur myself. I was a director of a private school in fine arts for eighteen years and
know from experience what it takes to transform an idea into a successful enterprise. After living in
Addis, I could not get the idea of producing French Fries and Crisps out of my mind. Despite the
inferior quality of these products, there is currently a great demand for them among tourists as well as
Ethiopia is experiencing an innovative trend in the tourist industry and in the area of health and
hygiene standards related to employment, living conditions and the environment. Capitalising on these
initiatives, Foundation Obelisk Ethiopia has developed a project in which we use our Dutch experience
with French Fries to promote independence for the beneficiaries. CHA D-E T management is in
agreement with this propos al entitled The Pilot Kitchen. Subsidies provided by The Wings of Support,
enable the Pilot to carry out market analyses, to make the most of every opportunity and to get to grips
with running costs etc. The Pilot Kitchen will be run in cooperation with CHA D-E T and Foundation
Obelisk Ethiopia and will be carefully monitored.
We will train beneficiaries to produce economically and, more importantly, hygienic ally. The training
will also include selling techniques and will address issues concerning cons umer satisfaction.
The Production Line
The Mercato Production Line proposal is a follow up to the Pilot Kitchen and it will be a three part
income-generating project in cooperation with CHA D-E T, The Obelisk Ethiopia Foundation, Genesis
Farm and Hope Enterprise.
Top hotels and supermarkets selling luxury goods in Ethiopia are at this moment in need of high
quality products for tourists and the richer Ethiopians. Expensive products are currently import ed from
Europe or America. We want to meet this demand by being the first professional producers of French
Fries in Addis by marrying the Dutch experience to Ethiopian circumstances.
This production line will be designed and based on information we have obt ained from the Dutch
companies A viko and Mac Cain. However we are going to start with a small-scale production line, in
accordance with the Global Hygienic Standards. The Ethiopian Government intends to implement
these standards in the future in anticipation of the growth in the tourist industry.
We want to use human labour in the production process to help as many girls as possible earn money
within the loc al community.
We will obtain all our furniture and equipments, with the exception of professional French fries cutters,
from local manufacturers. In this way, the Ethiopian people will benefit from our investments.
How many girls will benefit from this small “factory”?
The majority of young adults are prostitutes or abused children with little education, and/or without
family. The sex industry in Mercato (A ddis Ababa) is abusing young girls, who come from the country
in search of a job in Addis. Most of these girls, aged between thirteen and twenty years, have had no
primary educ ation because there are no schools in small villages. CHAD -E T is supporting them with
education and to stimulate the training of new skills.
We want to employ 24 young adults who will earn a living in this ent erprise.
1 Buying: Oils, potatoes, package materials etc.
8 Production: Pealing, cleaning, cutting, sorting, drying, cooking and frying potatoes
3 Packaging: Weighing, sealing and administrating.
2 Sales: Hotels and Supermarkets
2 Administration: Bookkeeping, calculating, salaries, insurances, monitoring.
1 PR and advertising works, print and distribution
1 Trans port: (Driver will have get a driver’s license.)
2 Sales: small mobile units producing French Fries in the streets of Addis.
4 Sales: We want to open up a few small “snack bars”
Where will this “factory” be located?
We will start in or near Mercato so that our beneficiaries can walk to work .
Closed wash Frying room
Open wash wash Packaging
This is a preliminary sketch of the building in order to get a picture of our requirements. As soon as we
have rais ed enough money, an official architect / engineer in Ethiopia will make the final design.
Investments for the Production line building.
1 Rental: If the production line can be set up in an <existing building, renovation/conversion will
be necessary to ensure adequate drainage and a hot water supply ***.
A new building with approved hygienic standards and properly installed drainage would be
preferable. As CHA D-E T will be the owner, the building will be safeguarded against external
Investments for the Production line equipment:
Open „dirty‟ washing area: Delivery Packaging:
potatoe s and sorting room 2 weighing scales
2 sinks with taps and running water 2 packaging tables
and waste water tanks; 8 storage containers
1 peeling table; 2 freezer storage units
4 open was hing containers 2 sealing machines
1 conveyer belt for sorting and for 1 computer administration system
transport to the closed area. 2 waste container for oil**
1 container for waste (for sale to Under investigation:
farmers) 1 used oil recycling/cleaning machine
Closed „clean‟ washing area (< to resell the oil at a lower price.) **
1 Solar boiler* with hot running water Transport:
and waste water tanks 1 small delivery truck.
1 drying and sorting table with waste
4 cutting machines 3 sets of working uniforms with hairnets for
1 table each employee
2 sorting tables Cleaning equipment
PR logo on working uniforms and carrier bags
4 sets of frying equipment Laundry
2 ovens with sets of cooking pans It may be possible in the future to start a laundry so
that the uniforms can be washed in hot water. That
Office would mean we could provide more people with a
2 desks job.
2 Computers with Internet (Prices for this equipment are not available yet,
1 telephone because CHA D-E T is still negotiating these in
We are seeking cooperation wit h Hope Enterpri se, a school for the poorest children.
In this way we will support this college and build on a good relationship for the future.
We are seeking cooperation wit h Genesi s Farm in Debre Zait to provide the potatoes. This is a Dutch
organisation that runs a dairy and a chicken farm, employing and training 278 Ethiopians.
Investments Investments “snack shop”
“mobile selling points” We rent a small shop in the Bole, Piazza or
For around 500 Euro we can build a cart Sedist Kilo (near the University)
like this in iron, with a cotton roof shield . Running costs for one year:
Rent 1200 Euro; Water supply 160 Euro
Gas bottle 24 Electricity 500
Total 524 Euro 2 small frying units 330
2 cooker hoods? 500
The cart could also be equipped with the
electric frying unit 1 selling table in the window 75
Cart 500 1 cash register 250
1 storage container 100
Frying unit 165
1 freezer 1400
Total 665 Euro.
1sink, incl. install. and drainage 700
1 solar boiler* ???
Fundraising and PR:
* We intend to ask for the donation of solar
boilers from Nuon, < Essent or another
energy supplier in the Netherlands.
** Malta has developed an advanced
system for recycling and selling the
cleaned cooking oils. We plan to contact
the Maltese government and its University
to cooperate with us and/or teach us how
to recycle cooking oil that we will be using.
We are in contact with the Foundation of Relatives of Ambassadors in Addis, who are enthusiastic
about our initiatives. They are willing to help us by promoting our project and including our work in their
To attract attention to our projects, we are in the process of making a promotion DVD about CHA D-E T
and their drama group, which we will use in presentations in schools and parties.
We will make flyers and ask local radio stations to give our projects air-time.
Time schedule :
There are two options to consider.
A We can start by renting an existing building which will have to be refurbished in order
to get the building up to an approved standard. However, there is a risk that the
landlord will end the leas e as soon as the b uilding is refurbished. This is not against
the law (CHAD-E T has had experience with this in the past) and could lead to the loss
of our investments.
B A new building. We have to take into consideration that in Ethiopia, the funding of
every new building project must be legally approved before the required permits are
issued. Once the funding has been agreed, the following steps are necessary:
1. Finding a suitable site and obtaining planning permission.
2. Obtaining building permission (I think this falls under planning permission)
3. Obtaining agreement from the local authorities
4. Applying for a licence to start a commercial business.
5. When all the permits have been gained and a plot of land has been alloc ated,
it takes some months for the inspection of the soil on the building site to be
completed. It is then possible to apply for the second permit from the Addis
Ababa Building Administration.
Building schedule: Building will take approximately six months.
Aim: We want to be able to pay all our employees/trainees a fair wage for the job. In the
future we can use our experience to build a production line in the countryside.
Year 2: production improvement, building teamwork and loyalty amongst personnel, earning
the goodwill and confidence of our customers.
Year 3 Profits will be used for new investments and expansion by installing snack bars and/or
mobile selling points.
Saving and credits, We will be cooperating with a project CHAD -E T implements.