Ethiopia funds Dede Bottle factory as US$69.2M glass import gap narrows

ETHIOPIA – The Development Bank of Ethiopia has financed the Dede Bottle Factory in Debre Birhan, a 450,000-bottle-per-day plant that sources 86 percent of its raw materials locally, as the country seeks to reduce reliance on the US$69.2 million in annual glass imports and close a long-standing domestic supply gap.

The factory, which has created 300 permanent and 100 temporary jobs, primarily produces bottles for food packaging and has established market linkages with a major manufacturing company ahead of commercial operations. 

The Development Bank provided 70 percent of the factory’s financing, with Getachew Fentaw, vice-president of SME Financing and Branch Banking, stating that addressing gaps between demand and supply is one of the lender’s key priorities. 

Ethiopia’s 265 Million Bottle Demand Gap and Import Substitution Strategy

Ethiopia’s annual demand for glass bottles is estimated at 265 million units, with existing producers historically meeting only about a quarter of that requirement. 

The supply shortfall has left manufacturers dependent on imported glass products, with Ethiopia importing about US$69.2 million worth of glass and glassware in 2023. 

Dede sources limestone largely from the Lemmi area, creating a link between glass manufacturing and domestic mineral production. 

Deputy Prime Minister Temesgen Tiruneh visited the factory in November 2025 and confirmed the plant’s 450,000-bottle daily capacity, noting its role in supplying beverage and pharmaceutical manufacturers across the country. 

The factory is currently undergoing machinery testing and is expected to begin production soon.

Local Sourcing and Pharmaceutical Packaging Expansion

The local sourcing of 86 percent of raw materials is significant for a sector that depends on inputs including quartz sand, limestone and dolomite. 

The project gives the bank a route to support import substitution while increasing the use of locally available industrial inputs, with the bank stating such investments are intended to reduce foreign-exchange requirements for imported goods and increase domestic value addition. 

Ethiopia’s glass container market is estimated at 101.21 kilotons in 2026, with beverage applications accounting for 61.78 percent of volume, while pharmaceutical and cosmetics applications are among the fastest-growing segments. 

Dede’s planned output adds significant volume to a market that has historically struggled to keep pace with demand, as the country continues to develop domestic manufacturing in sectors where imports have traditionally supplied a substantial share of the market.

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