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Eco-Energy S.C, which has been selling shares locally for the last three weeks, is negotiating with an Indian consultancy firm to help it get started in its jatropha and castor plantation for a period of five years. An agreement will be signed by mid September 2009.

Eco-Energy, initiated as an idea in 2007 by Nur Yasin, Ermias Gizahun and Robel Debebe, started selling shares in April this year in the United States, United Arab Emirates, Yemen, India and Germany. The company picked the Indian consultancy, Jatropha World, which has a track record of involvement in jatropha, the prime plant in the production of bio-energy. This firm was selected, without bid, based on its experiences according to Robel Debebe, managing director of the company under formation
 

Jatropha World has prroposed 57,000 dollars for consultancy services. Eco-Energy requested a 10pc cut of the amount for compliting the three phases of the project with in five yeaers.The three phases include getting started with the plantations and exporting jatropha and castor oil seeds; producing the oils locally for the export purpose, and in the third phase, offering the products for the local market.
 

Within the time given, Jatropha World is expected to offer pre-plantation, plantation and post plantation consultancy services.
 

According to Eco-Energy, it started selling shares abroad to the Ethiopian Diaspora, not only because that group was its primary target but also because the local market was already engaged by other share selling companies such as Habesha Cement S.C. and Buna International Bank S.C. Robel said they engaged the local market starting early August 2009.
 

The company may face challenges in the local market according to Alemayehu Geda, Economics professor at the Addis Abeba University. He continues on to reveal that the public here knows the banks, cement factories and sugar factories very well.
 

“Selling equity to the public in the bio-fuel sector will be difficult because of the public’s lack of familiarity with the eco-energy industry and the insecurity of financial market as well as the legal framework in the country,” Alemayehu averred. “The initiators credibility and their educational status as well as experience matters.”
 

The government seeks to draw investment in the sector by promoting the availability of 23 million hectares of land for bio-fuel development. According to available literature 1,000Kg of jatropha could be produced on a hectare of land in arid areas with less than 200mm average rainfall. Five thousand to 30,000kg of palm seed could be produced from one hectare of land in areas with 2,000mm or more rainfall.
 

Eco-Energy S.C. plans to start operation on 25,000hct in the Oromia and Southern regional states. It, particularly, has its eyes on west and east Wollega, Bale, Gamo Gofa, South Omo and Dawuro.
 

The company preferred to verify the suitability of the identified places before using the land issue in their promotion, Nur Yasin, one of the founders of the company, said. He affirmed that they have already completed the market feasibility study for their work.

Eco-Energy plans to raise one billion Br from the sale of shares, worth 1,000 Br each. They are selling a minimum of 25 shares per individual. Nur says that so far they have sold to 30 individuals and companies including Awash Bank and Wegagen Bank.