JTI buying into Ethiopian market

The Ethiopian Ministry of Public Enterprise has accepted Japan Tobacco International’s US$510 million offer to buy a 40 percent stake in the National Tobacco Enterprise (NTE), according to a Geeska Afrika story relayed by the TMA.

NTE is the only company allowed to manufacture or sell tobacco products in Ethiopia.

JTI’s offer was more than double the next highest bid of US$230 million made by British American Tobacco.

Five bidders had made offers to buy the 40 percent stake in NTE.

JTI was asked by the government to make the payment in full within 10 days.

Meanwhile, the results of a study published by Ethiopia’s Food, Medicine and Health Care Administration and Control Authority show that the country has a smoking incidence of about 7.3 percent, according to an Addis Fortune story.

The authority is said to be in the process of drafting new tobacco control measures.