Investment opportunities

Rice Flour

Project Description
  • Establishment of a plant for the production of rice flour with a capacity of 10,000 tonnes per annum
  • The principal raw material required is rice, which is availablelocally
Value Proposition
  • There is a significantly large local and export demand for the product.The present demand for the proposed product is estimated at 2,968 tonnes per annum.The demand is expected to reach at 4,751 tonnes by the year 2020
  • The total investment requirement is estimated at about Birr 8.59 million,out of which Birr 1.33 million is required for plant and machinery. The plant will create employment opportunities for 33 persons
  • The project is financially viable with an internal rate of return (IRR) of 20.37 % and a net present value (NPV) of Birr 14.17 million, discounted at 8.5%
  • The plant will have a backward linkage effect on the agricultural sector. The establishment of such factory will have a foreign exchange saving effect to the country by substitutingthe current imports
  • The major raw material required for the production of rice flour is rice, which is being produced in different regions at swampy areas like Amhara while poly propylene bag can be obtained from local manufacturers;
  • Total land requirement including storage, open spaces etc. is estimated to be 1,500 sq. m.

Ethiopian Investment Agency