National Tobacco Enterprise (Ethiopia) Share Company (NTE) was established as per the Tobacco Regie Act No.30, 2nd year Negarit Gazetta,No.2/1935 as “Imperial Ethiopian Tobacco Monopoly” with paid up capital of 50,000 ‘Mariatereza’. It started its work with a single cigarette machine and a single brand, Nigusu. The production capacity of the machine was 300 pieces per hour.
In 1981 the Enterprise was re-structured by proclamation No.1971/1981 and has become the “National Tobacco and Match Corporation” with the capital outlay of 80 million Ethiopian Birr. Later, the Enterprise has again been re-organized as “National Tobacco Enterprise” in accordance with proclamation No. 37/1992. In article 4 of this proclamation the enterprise has been given an exclusive right to produce, process, manufacture, distribute, import and export tobacco and tobacco products in Ethiopia.
In 1999, the Enterprise has once again been re-organized as a share company pursuant to the Privatization Proclamation Act No.146/1998. With the sales of shares to private investors, the ownership structure of the Company was changed and its Memorandum of Association and Articles of Association were accordingly amended and adopted in accordance with the relevant provisions of the Commercial Code of Ethiopia as of January 2001. The share capital of the company is Birr 250 million that is fully subscribed and paid up at the time of formation.
However, with a recent capital injection of birr 40,281,000 the share capital has increased to birr 291,281 million.
Currently the Company is among the top public enterprises in terms of annual turn over, profitability, and its contribution to the economy as a whole. Annual turn over has continually increased, on average by Birr 190 million, during the previous five years period. Similarly, its contribution to the economy in terms taxes paid, dividend to the share holders and job creation to the citizen as a whole is persistently increasing. Annual tax related contribution to the economy (VAT, Excise tax, Income tax, dividend tax etc) has currently reached more than Birr 700 million. In addition to this, the Enterprise with one cigarette factory at Addis Ababa and four tobacco development farms at Shewa Robit, Awassa, Bilatie and Wolaita has employed more than 934 permanent employees and 3,305 temporary and casual workers.
The enterprise, in its five years strategic plan, has aimed and diligently working towards a greater market expansion with a vision of exporting cigarettes subsequent to the full satisfaction of domestic demand. Accordingly, due attention is given to the expansion of new tobacco development farms besides upgrading the existing farms with the objective of domestically covering the factory’s tobacco leaf demand; thereby saving a substantial amount of foreign currency. Moreover, the management of the enterprise is thriving to achieve a competitive advantage through cost leadership and differentiation