Obtaining utility connections and recruiting labor force

Ethiopian Electric Power Corporation - EEPCo

EEPCo provides electric power and supplies transformers and meters.
To get electricity supply you need to contact the local EEPCo office and submit the following documents:
• A copy of the investment license
• A blueprint of the electricity layout of the project prepared by a certified electrician
• A letter addressed to the local EEPCo office indicating the power needed for the business.

The procedure can take a long time. It is advised to apply for power supply at an early stage as it can take up to 6 months before EEPCo installs the equipment. Regularly visiting the EEPCo office does help speed up the process.

Note: Check the voltage before connecting your machines to the electric grid. In many cases a 380 voltage is needed, and only 340 is supplied. This low voltage can damage your machines.

The Ethiopian Electric Power Agency (EEPA) situated in Addis Ababa will intervene when you
need their support to resolve unsettled problems with EEPCo.

Water well drilling

There are several water well-drilling companies in and around Addis Ababa. Two major ones are:
• EADCO (East Africa Drillers PLC)
• Ethio Drillers & Water Engineering.

The cost per meter of drilling is 1500-2000 Birr, depending on the soil type and depth of drilling.

Telecommunications

The Ethiopian Telecommunication Corporation (ETC) is the national telecommunication provider, providing fixed as well as mobile lines. Telephone bills need to be paid every month at your local ETC office. If you rent a house, the initial telephone bill will be provided to you by your landlord.


Telecommunication costs (without VAT) are:

• Fixed line: 0.20 Birr/6 minutes
• Public line: 0.40 Birr/6 minutes
• Mobile line: 0.72 Birr/minute
• Satellite: 10.00 Birr/minute

Recruiting labor force

Unskilled labor

When land is leased from farmers, the unwritten rule is to employ them. Generally, when rumor has it that there is a need for more employees, many people will show up and apply for a job.

Skilled labor

The Ambo College and Jimma University respectively deliver 2-year diplomas and a 3-year BSc in horticulture. Different agricultural universities nowadays attract (foreign) teachers who are familiar with the way new investors manage floriculture and horticulture companies. Hence, it will be useful to visit agricultural universities for recruiting skilled employees.

There are 3 ways to employ people:

• on a daily contract basis;
• on a fixed contract basis;
• on a per diem basis, which is done when you hire people from another company, e.g. when using a bulldozer with a driver.

One full time working week counts 48 hours, with 6 days of 8 hours.
Overtime on working days is paid 150%.
Overtime on Sundays and holidays is paid 200%
(Source: Labour Law)

Wages

The mean wage in the agricultural sector is 293.00 Birr/month. The following list gives you an idea of the wages in the countryside:

•Daily worker: 6-9 Birr/day
•Worker with a fixed contract: 8-12 Birr/day
•Supervisor: 300-400 Birr/month
•Foreman: 700-1500 Birr/month
•Guard: 400 Birr/month
•Cleaner: 250 Birr/month
•Do’s and don’ts
• Know what you stand for as a company.
• Have good secondary conditions of employment, such as, for instance, a good policy on leave at the time of weddings and death in the employees’ families.
• For people to do good work, the most important is to train them well. Make sure people know what they have to do and know how they should do it. Give them clear job descriptions and be there to teach them.
• When you are not satisfied with an employee, give him/her a warning first.