Birhane Gebre Medhin is 86. He was one of the pioneer entrepreneurs in Ethiopia. He had bought the Elias Papassinos Liquors Factory which was established in 1912. The factory is now called the National Alcohol and Liquor Factory. He started out doing business quitting his teaching career and also working as an employee for some companies in Addis. His first business was a grocery that grew to a super market.
Then he sold the supermarket as well as all of his other properties to turn a stagnating liquor factory, Elias Papassinos, in to a better industry. But things were changing unexpectedly during the Derg regime and his business reality has been acquiring a different image ever since. He is today’s guest on The Ethiopian Herald Executive column. He is willing to tell the twists and turns he experience as an executive.
Herald: Shall we start with introductions about yourself?
Birhane: I am an Eritrean by birth. I came to Ethiopia when I was fifteen. My parents were a bit traditional. As such I was married early in life. But, I expressed complaint to them that we (the would-be man and wife) were both children and would have to wait until we come of age. So I came to Addis and joined Tesfa Kokob School for my elementary education. Then I went to Shashamane town of the current Oromia State to pursue my secondary education in the Adventist Mission School. There was no one to pay for my school fee so I would skip one period per day and work for twenty Birr. That was until I completed 9th and 10th grades. Then I joined Emperor Haile Selassie University, where I took a year course. Soon my mother in law passed away and my wife had no one to support her. I had to support her.
Thus, seeking employment chances I was assigned to teach in Debre Berhan (of Amhara State). After teaching in Debre Berhan for two years, I realized that it was not a career that would help the self-development I needed by the time. So I quitted teaching and I came back to Addis, where I have got a job at Oil Company, now called Shell. I worked there for three years. But soon the company was moved to Nirobi, Kenya, and I have to look for another job. Luckily, I got hired by another company called Gelatliankin and also worked there for three years.
Herald: Can you tell us about your entrepreneurship and the progress?
Birhane: The Company [Gelatliankin]
used to distribute several food products in different supermarkets and groceries around Merkato (The biggest open market in Addis Ababa and Africa) and other places. I had been closely watching the importing cost and how it was sold in our country. Then I realized that utilizing the chicken-fed salary from the company I can start the same business with a small shop.
However, I didn’t have much capital to open up my own supermarket. I had to borrow 20,000 Birr to start the business from a guy who was from Greece. I had done my research about the business. Thus the supermarket proved a hit.
Herald: What was it called?
Birhane: It was called Alem Grocery then renamed Alem Supermarket. We had had all the products and we had been very competitive with the Greeks that had a dominant position on the business during that time. Most of our products used to come from Asmera (Capital of Eritrea). Due to the stiff nature of competition in the business, my suppliers from Asmera told me that they wouldn’t supply for me anymore, for they had one Italian and four Greek important customers to supply for.
Then I went to the Ministry of Foreign Affairs (MOF) and tried to explain my situation but they said it’s a competition and there is nothing they would do about it. Therefore, I started importing the products from Germany and I happened to be successful in the business as I dominated my opponents by winning most of the auctions. Unfortunately, a British judge called Maltez at the Supreme Court, suddenly decided to shut down my supermarket.
Herald: What was the reason?
Birhane: There was an accusation by the Greek individual whom I had borrowed 20,000 Birr from and promised a share of my business. They said that was the reason. But my argument was that why would they shut down the supermarket without hearing my side of the story. I remember that it was Saturday afternoon when they came up with the paper from the court to shut down the supermarket. For the fact that I have a strong reason that I mentioned earlier, I would tell them that they should come back on Monday morning and open up my shop or I would open it myself. They told me it was against the law but I would remain with the same stance and I opened the shop by myself on Monday.
Then the case was brought back to the court by a lawyer and he made the explanation that the supermarket was a shop for food staff and even if there was a debt that I owe. The civil code allowed me to pay my debt running my business. So, it was reopened and I stayed in that business for some time.
Herald: How did you join the alcohol business?
Birhane: I turned my face to the alcohol business after I had conducted a detailed research on the sector. There had been a big demand in both local and external markets. I had been observing that the products were coming from Asmera and the transportation costs until the products reach Addis Ababa was high. So, I decided to sell my super market and other properties that I had and bought Elias Papassinos Liquors Factory, which was not really a factory.
But before I bought it, I had been working in the factory for one and half year having my own share. I improved it during that period of time. Then they suggested that it would be better if I buy it for myself. Thus I bought it with 630,000 Birr. I made much more improvements and also opened other four branches; Akaki, Mekanisa. Mychew (Mexico) Alcohol Destilations and Sebeta Dry Alcohol Factory. The business went well and we started exporting several products of our own.
However, the Derg regime came up and nationalized all of my factories all of a sudden in July 1976. Then life became tough that I and my family were forced to leave the Country through Kenya. After we spent fifteen years of a migrant life in Greek and America, the Derg regime failed and EPDRF came to power. The EPDRF would indorse a proclamation in 19 95 that stated the procedures on how to return properties that had confiscated by the former government illegally.
Therefore, the privatization agency board decided the return of my property in 1998 stating certain preconditions.
Herald: What were those preconditions?
Birhane: It was clearly stated that I have to pay 26.4 million Birr for expansion and investment costs that the government spent on the factories during the time they were nationalized. The other option was that I would be compensated with 2.8 million Birr by the government and they would remain nationalized. I agreed with the first term telling that I have the capacity to pay the money. I was preparing to transfer the money for the government through a bank account when two soldiers and one civilian came to my house late at night and told me that I was wanted at the Prime Minister’s Office. All my families were abroad and I was living alone. I challenged those men why. They said that I was not allowed to ask anything and they pulled me in to a car.
Herald: When was that?
Birhane: It was in 1998 when the return of my property got a decision. I was prepared to pay the money and have it back.
Herald: Then what happened?
Birhane: They took me somewhere on the way to Jimma town (of Oromia State) where nobody would see or visit me and detained me for three days and nights. On the fourth night I was deported to Eritrea with 830 Eritreans. Soon I left Eritrea for the US. After three weeks my factories were sold and The Endowment Fund for the Rehabilitation of Tigray (EFFORT) got a forty percent share. When I learnt this I explained my situation for the US government. About six democrat congress men wrote letters for the then Prime Minister Meles Zenawi, stating that the act was illegal and my property should be returned.
Herald: What was his response?
Birhane: His response was that my issue would be handled smoothly and assured them that his administration would do its best to solve the problem. Hoping that there was still a chance, I came back to Ethiopia in 2002. But the case is still in the court.
Herald: How is the progress so far?
Birhane: The case is still under investigation as I kept submitting my evidences to the court. If it wasn’t for the bad intentions of the former EPRDF officials I would not be still crying out for justice.
Ethiopia is my country where I worked hard and made such a fortune when I was young. Moreover, Ethiopia is the country that I have had families and raised my children in. It is a country for whose sake Abraha Deboch and Zeray Diress, heros that hail from my birth place, scarified their lives for. I am their brother.
Even though Ethiopia and Eritrea went through difficult times during the past two decades, currently Prime Minister Dr. Abiy Ahmed is doing a great job by reinstating peace among the two countries and bringing the brotherly and sisterly relationship of the people into life. My case is very small when it is compared to the good achievements in terms of the peaceful resolution between the two countries. I am also hopeful that my case will get a lasting solution. I would still love to serve my country and its people no matter how older I get. My father lived 105 years and I am sure that I would live longer.
The Ethiopian Herald Sunday Edition 29 December 2019
BY HENOK TIBEBU
