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OVID Holding, a rapidly expanding conglomerate, has announced its intention to become Ethiopia’s second vessel operator as part of an extensive five-year investment plan. This initiative, aimed at diversifying its business portfolio, complements a broader strategy encompassing mining, real estate, construction, agriculture, and logistics.
Five-Year Investment Strategy
The conglomerate’s USD 20 billion investment plan aligns with its Vision 2030 framework, which focuses on five pillars: social development, economic growth, technology and innovation, and strategic partnerships. During a launch event at the Gelan Gura housing site near Addis Ababa, CEO Yonas Tadesse highlighted the company’s multi-sector approach and plans to expand internationally by 30% within the next five years.
“Our focus spans across agriculture, mining, tourism, public transport, logistics, and more,” Yonas said, emphasizing the conglomerate’s commitment to growth in diverse sectors.
Maritime Ambitions
A key component of the Vision 2030 strategy is the development of a logistics and marine division under OVID Trade House. Legal advisor Yonas Woldeyes confirmed that the company is working to establish a vessel operating firm, either independently or through partnerships.
“Becoming the nation’s second vessel operator is a significant step for OVID Holding,” Woldeyes stated, noting that the logistics company has already been formed and is supported by a qualified foreign expert to spearhead operations.
This expansion into the maritime sector reflects OVID’s goal of reducing dependency on imports and enhancing supply chain efficiency. If successful, the venture would position the conglomerate alongside the state-owned Ethiopian Shipping and Logistics.
Real Estate and Construction Initiatives
OVID Holding is also making substantial investments in real estate. The company plans to transition from directly building homes to overseeing contractors as a housing developer. Over the next five years, OVID Real Estate aims to develop 120,000 homes, with 90,000 situated in Gelan Gura. This project, spanning 400,000 square meters, is being executed under a public-private partnership (PPP) arrangement, with 30% of the homes allocated to the Addis Ababa City Administration.
The real estate division’s broader objective is to secure a 40% share of the national market by 2030. To support these efforts, OVID is establishing a mortgage bank and a microfinance institution to facilitate homeownership.
Infrastructure and Partnerships
In addition to housing, OVID Holding is pursuing major infrastructure projects, including a road designed to connect the southern and northern regions of Africa. The company has also partnered with ten new construction firms to accelerate housing projects in Gelan Gura and other locations.
To bolster its initiatives, the conglomerate plans to sign 25 memorandums of understanding with local and international collaborators over the next five years.
Economic and Employment Goals
OVID Holding’s five-year strategy is expected to create one million new jobs. The investment plan includes USD 15 billion for real estate and USD 5 billion for global and regional expansions. These developments are anticipated to contribute significantly to Ethiopia’s economic growth. As OVID Holding moves forward with its Vision 2030 strategy, the conglomerate is positioning itself as a major player in Ethiopia’s logistics and real estate sectors.
