MARKET SURVEY ON ENGINEERING PRODUCTS
(HS NO.72,73,74,75,76,78,79,80,81,82,83,84 AND 87)
Product Description:
This market survey covers the following products:
(HS NO.72,73,74,75,76,78,79,80,81,82,83,84 And 87) Pig iron, Ferro-alloys, Iron and non-ally steel, Flat rolled products, Bars and rods, Angles, shapes and sections, Barbed Wire, Tubes, Pipes and hollow profiles, Structures, Reservoirs, Containers, Chain and parts thereof, Anchors, Nails, Nuts and bolts, Springs and leaf of springs, stoves and cookers, Radiators, Household items, Sinks and wash basins, Copper and articles thereof, Nickel and articles thereof, Aluminum and articles thereof, Lead, Zinc and tin articles, other base metals, tools, implements, Builders’ hardware, Locks, Fittings and similar articles suitable for furniture, doors, windows, etc.. Filing cabinets, Bells, machinery and mechanical appliances, Tractors, Motor Vehicles, Parts and accessories of the motor vehicles, Motor vehicles for the transport of goods, Motorcycles & parts, Bicycles & parts, Baby carriages and parts, Trailers and semi trailers, etc.
Production:
Basically Ethiopia’s industry is of small and medium enterprise nature. Over 50 per cent of the enterprises are engaged in food and beverage processing. Textile, Leather, Plastics, Chemicals and Metal manufacturing are also important sub-sectors. The domestic production of engineering goods is limited to metal, iron and steel works. However, local and foreign private investment is expected to give it a boost.
According to the figures obtained from the Ethiopian investment Commission, twenty one Indian companies have received an investment license to invest in engineering sector, of which some are already at project implementation stage.
Ethiopian Imports:
In the last four years, Ethiopian imports of engineering goods have been increasing. While in the year 2004 the Ethiopian imports were worth US$827.8 million, it increased to US$1.9 billion in 2006.
|
YEAR |
CIF Value in US$ |
|
2003 |
801.07 million |
|
2004 |
827.77 million |
|
2005 |
1.2 billion |
|
2006 |
1.9 billion |
Major Exporting Countries to Ethiopia (CIF value)
India, China and Italy are the major exporting countries supplying engineering goods to Ethiopia. Their market share in Ethiopian imports was 33.31 (India: 12.2%, China: 11.3% and Italy: 9.9%). The other major exporting countries with their share area: UAE (9.2%), Japan (7.7%), Germany (5.6%), UK (3.9%), Belgium (3.8%), Sweden (2.6%), Netherlands (2.1%) and USA (1.9%) in that order.
Ethiopian import statistics for the years 2004 and 2005 are given below:
|
Country |
2004 Value in US$ (Million) |
2005 Value in US$ (Million) |
|
Total Imports |
827.77 |
1,173.17 |
|
1.India |
97.80 |
142.74 |
|
2.China |
40.35 |
132.00 |
|
3.Italy |
97.49 |
116.02 |
|
4.UAE |
74.40 |
107.49 |
|
5.Japan |
70.44 |
89.90 |
|
6.Germany |
48.75 |
65.56 |
|
7.UK |
1.73 |
45.83 |
|
8.Belgium |
26.64 |
45.56 |
|
9.Sweden |
16.04 |
29.95 |
|
10.Netherlands |
34.15 |
24.84 |
|
11.USA |
20.14 |
23.44 |
|
12.Saudi Arabia |
14.19 |
15.68 |
Market Share in Ethiopian Imports: (Year 2005)
|
Country |
Market share in Ethiopian imports |
|
1.India |
12.17% |
|
2.China |
11.25% |
|
3.Italy |
9.89% |
|
4.UAE |
9.16% |
|
5.Japan |
7.66% |
|
6.Germany |
5.59% |
|
7.UK |
3.91% |
|
8.Belgium |
3.88% |
|
9.Sweden |
2.55% |
|
10.Netherlands |
2.12% |
|
11.USA |
1.99% |
|
12.Saudi Arabia |
1.34% |
India’s export:
India’s export in this sector cover hot/cold rolled iron/steel sheets, Hot dipped galvanized steel sheets, Iron/steel bars and rods, wires and wire products, tubes, Galvanized steel pipes & fittings, Hand pumps, Transmission Line Materials, nuts & bolts, nails, hand tools, Builders’ hard wares, Fire extinguishers, aluminum products, table, kitchen or other household products, other base metals, various machineries and parts, moulds, bicycles & parts, motorcycles, vehicles, Heavy and small vehicles parts, medical equipment etc.
There is a continuing increasing trend in Indian export of engineering goods to Ethiopia. While in 2004, Indian export was US$97.8 million; it increased to US$142.7 million in 2005 showing an increase of 45.9%. In the year 2006, India export was US$ 161.4 million and accounted 8.5% of the total engineering imports into the country.
|
YEAR |
CIF Value in US$(million) |
|
2003 |
81.8 |
|
2004 |
97.8 |
|
2005 |
142.7 |
|
2006 |
161.4 |
According to information obtained from the Directorate General of Commercial Intelligence and Statistics, following are the figures of Indian exports of engineering products to Ethiopia.
FOB VALUE IN LAKH RUPEES
|
|
ITEMS |
April 2003- March’04 |
April 2004- March ‘05 |
April 2005- March 2006 |
April 2006- March 2007 |
|
1 |
Iron & Steel Products |
8329.11 |
727.54 |
37214.58 |
28,251.5 |
|
2 |
Machinery & Instruments |
2916.42 |
3565.97 |
11748.94 |
17,669.4 |
|
3 |
Manufactures of metals |
2106 |
2342.74 |
11394.23 |
12,329.61 |
|
4 |
Machine Tools |
453.08 |
127.01 |
570.60 |
1141.20 |
|
5 |
Transport Equipment |
2916.42 |
598.23 |
1961.92 |
3461.72 |
|
6 |
Residual Engineering Items |
711.99 |
183.44 |
307.13 |
614.50 |
|
|
Total |
17433.02 |
7544.93 |
63197.38 |
73,467.93 |
Analyzing the above figures, it is noted that Indian exports of engineering products to Ethiopia have an increasing trend for the last three years. In 2006-07, engineering products are the 1st largest export item from India to Ethiopia.
Custom Duties:
|
HS No. and Product |
Custom Duty |
|
72.08 Flat-rolled products of iron on non alloy steel, of a width of 600 mm or more, hot rolled, not clad, plated or coated |
5% |
|
72.09 Flat-rolled products of iron on non alloy steel, of a width of 600 mm or more, cold rolled, not clad, plated or coated |
5% |
|
72.10 Flat-rolled products of iron on non alloy steel, of a width of 600 mm or more, not clad, plated or coated |
5% |
|
72.13 Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-ally steel |
5% |
|
72.14 Others bars and rods of iron or non-alloy steel |
15% |
|
72.17 Wire of iron or non-alloy steel |
5% |
|
72.19 Cold-rolled stainless steel |
5% |
|
72.28 Bars and rods of alloy steel |
5% |
|
72.29 Wire of other alloy steel |
5% |
|
73.01 Angles, Shapes and sections |
10% |
|
73.03 Tubes, Pipes and hollow profiles of cast iron |
10% |
|
73.04 Seamless iron/steel tubes, pipes and hollow profiles |
10% |
|
73.06 Other tubes, pipes and hollow profiles |
10% |
|
73.07 Cast tube or pipe fittings, Flanges, Threaded elbows, etc. |
10% |
|
73.08 Bridges and bridge-sections, Towers and lattice masts and structures |
10% |
|
73.10 Tanks, casks drums, cans boxes and similar containers, Stranded wire, ropes, plaited bands, slings and the like |
10% |
|
73.11 Containers for compressed or liquefied gas of iron or steel |
5% |
|
73.12 Stranded wire, ropes, cables, plaited bands, slings and the like of iron or steel |
20% |
|
73.14 Woven cloth and wire |
20% |
|
73.15 Chain and parts thereof, iron or steel |
20% |
|
73.17 Nails, tacks, drawing pins, etc. |
20% |
|
73.18 Screws, bolts, nuts, hooks, rivets, cotters and similar articles of iron or steel |
15% |
|
73.19 Pins |
20% |
|
73.20 Springs and leaves |
20% |
|
73.21 Cooking appliances |
20% |
|
73.23 Table, kitchen or other household articles |
20% |
|
74.08 Copper wire |
10% |
|
74.11 Copper tubes and pipes |
10% |
|
74.14 Cloth, grill and netting, of copper wire |
20% |
|
74.15 Nails tacks, drawing pins of copper |
20% |
|
74.19 Other articles of copper |
20% |
|
75.05 Wire of Nickel alloys |
10% |
|
75.07 Tubes and pipes of nickel |
10% |
|
75.08 Other articles of nickel |
20% |
|
76.04 Aluminum bars, rods and profiles |
20% |
|
76.06 Aluminum plates, sheets and strip |
20% |
|
76.10 Aluminum structures |
15% |
|
76.12 Aluminum casks, drums, cans boxes and similar containers |
15% |
|
76.15 Table, kitchen or other household articles and parts of aluminum |
20% |
|
76.16 Other articles of aluminum |
10% |
|
79.06 Zinc tubes, Pipe and tube |
10% |
|
80.07 Cans of a kind used for the packing of goods |
10% |
|
81.01 Wire of tungsten |
10% |
|
82.01 Forks, mattocks, picks, hoes and rakes |
30% |
|
82.02 Hand saws and blades |
20% |
|
82.03 Files, rasps, pliers, pincers, tweezers, metal cutting shears, pipe-cutters and bolt croppers |
30% |
|
82.04 Hand operated spanners and wrenches |
30% |
|
82.05 Hand tools |
20% |
|
82.07 Dies for drawing, tools for pressing, stamping or punching |
30% |
|
82.08 Knives and cutting blades |
5% |
|
82.11 Knives with fixed blades and blades for knives |
30% |
|
82.12 Razors and razor blades |
30% |
|
82.13 Scissors and tailors’ shears |
30% |
|
82.14 other articles of cutlery |
30% |
|
82.15 Spoons, forks, ladles, skimmers, etc. |
30% |
|
83.01 Locks for motor vehicles and furniture of base metal |
20% |
|
83.02 Base metal mountings, fittings and similar articles suitable for furniture, doors, windows, etc. |
15% |
|
83.03 Armored or reinforced safes |
20% |
|
83.04 Filing cabinets, Card-index cabinets, etc. |
30% |
|
83.05 Fittings for loose-leaf binders or files and staples in strips |
20% |
|
83.06 Bells, gongs and the like |
20% |
|
83.08 Hooks, eyes and eyelets, tubular or bifurcated rivets |
15% |
|
83.09 Crown corks, stoppers, caps and lids |
30% |
|
83.11 Wire, rods, etc of base metal |
10% |
|
84.02 Steam or other vapor generating boilers |
5% |
|
84.07 Piston engines |
15% |
|
84.08 Compression-ignition internal combustion piston engines |
15% |
|
84.09 Parts of spark ignition reciprocating and Piston engines |
15% |
|
84.13 Pumps for dispensing fuel and liquids |
15% |
|
84.14 Air or vacuum pumps |
15% |
|
84.19 Machinery, plant or laboratory equipment |
5% |
|
84.20 Calendaring or other rolling machines |
5% |
|
84.21 Centrifuges, including centrifugal dryers, filtering or purifying machinery and apparatus |
5% |
|
84.22 Machinery for filling, packing and wrapping |
5% |
|
84.23 Weighing machinery |
20% |
|
84.24 Mechanical Appliances |
20% |
|
84.25 Jacks, hoists of a kind used for raising vehicles |
20% |
|
84.28 Pneumatic elevators and conveyors |
20% |
|
84.30 Earth moving, excavating, etc. |
5% |
|
84.31 Parts of lifts, skip hoists or escalators |
20% |
|
84.32, 33 & 36 Agricultural machinery |
5% |
|
84.34 Dairy machinery |
5% |
|
84.37 Machines for cleaning, sorting or grading seeds |
5% |
|
84.38 Food processing machinery |
5% |
|
84.39 Machinery for making pulp or finishing paper or paper board |
5% |
|
84.40 and 41 Book binding machinery and cutting machines |
5% |
|
84.43 Printing machinery |
5% |
|
84.44 Machines for extruding, drawing, texturing man made textile materials |
5% |
|
84.45 Machinery for preparing textile fibers |
5% |
|
84.46 Weaving machines (Looms) |
5% |
|
84.47 Knitting machines |
5% |
|
84.48 Auxiliary machinery for use with machines |
5% |
|
84.50 Washing machines |
5% |
|
84.51 Dry cleaning machines, ironing machines and presses |
5% |
|
84.52 Sewing machines |
5% |
|
84.53 Leather processing machinery |
5% |
|
84.54 Machinery used in metallurgy or in metal foundries |
5% |
|
84.58 Lathes for removing metal |
5% |
|
84.60, 61, 62, 63 and 64 Machine tools |
5% |
|
84.66 Tool holders and self-opening die heads |
5% |
|
84.69 Typewriters-Non electric |
20% |
|
84.71 Automatic data processing machines |
20% |
|
84.72. Other Office machines |
20% |
|
84. 74, 77,78 & 79 Machines and mechanical appliances |
5% |
|
84.80 Molding patterns, moulds for metal or metal carbides, moulds for mineral materials and moulds for rubber or plastics |
5% |
|
84.81 Pressure-reducing valves and thermostatically controlled valves |
15% |
|
84.82 Ball or roller bearings |
15% |
|
84.83 Transmission shafts, Bearing housings, gears and gearing and flywheels and pulleys |
15% |
|
84.84 Gaskets and similar joints of metal sheeting |
15% |
|
84.85 Machinery parts |
15% |
|
87.03 Motor Vehicles |
40% |
|
87.04 Motor vehicles for the transport of goods |
40% |
|
87.08 Auto parts |
20% |
|
87.11 Motorcycles |
20% |
|
87.12 Bicycles & parts |
15% |
Industrial Association:
The name, address with other details of the Industrial Association dealing with Engineering products is given below:-
1. Mr. Mohammed Nursaney, President,
Ethiopian Manufacturing Industries Association,
P.O.BOX 2218, Addis Ababa(ETHIOPIA)
E-mail: glc@ethionet.et
Telephone No.00 251-11-5531894
Fax No.00251-11-5518841
2. Mr. Teshome Beyene,
Addis Ababa Chamber of Commerce and Sectorial Associations,
P.O. Box 2458, Addis Ababa (Ethiopia)
Telephone No.00251-11-5518055/513814
Fax No.00251-11-5511479
E-mail: aachamber1@ethionet.et
Website: www.addischamber.com
(This is the most important and active chamber of commerce in Ethiopia)
Comments and Market Suggestions
- During the last three years, there has been considerable growth in import of engineering goods to Ethiopia. Ethiopia imports worth US$1.9 billion of engineering goods. About 8.5% of the total import into Ethiopia is made from India.
- India's major competitors in this sector are Italy, UAE and Japan. Among India's neighboring countries China has a share of 11.3%.
- Indian engineering goods because of their competitive price and quality are very popular in Ethiopia. However, of late, the competition has become very intense due to penetration of cheap quality Chinese engineering goods in the Ethiopian market.
- There is a major market for export of engineering goods as Ethiopia is engaged in its infrastructural development. Scope for export of building materials, hard wares, small scale machineries, construction machinery and other construction materials is more. However, it will be very important for any Indian company entering into the Ethiopian market to maintain top quality and standards to gain and sustain confidence.
- There are some investment opportunities in manufacture of basic iron and steel, operation of blast furnaces, steel converters, rolling and finishing mills, fabricated steel structures, bridges, towers and recycling of metal and non metal waste and scrap, assembly and manufacture of agricultural machinery and equipment, industrial transport and mining machinery and parts, construction machinery, machine tools and accessories, etc.
ADDIS ABABA (Ethiopia): February 2008