Ethiopia’s National Alcohol and Liquor Factory secures 80-year Sheger City lease to drive expansion
NALF launches long-term expansion with new Sheger City site as profits and assets continue to grow.
ETHIOPIA – The National Alcohol and Liquor Factory (NALF), a major state-owned player in Ethiopia’s beverage sector, has initiated a long-term expansion plan after securing an 80-year land lease in Sheger City.
The new site marks one of the factory’s most significant investments in recent years, aimed at strengthening production capacity and supporting future growth.
According to the company’s financial report for the year ending June 30, 2025, NALF obtained a 20,148-square-meter industrial plot from the Sheger City Administration.
The agreement, finalized on August 17, 2024, was valued at approximately 92.4 million birr (US$591.15K). The investment aligns with rising domestic capital support and reinforces the factory’s efforts to scale operations over the long term.
The report highlights steady growth in NALF’s financial position. Total capital equity increased from 786 million birr to 803 million birr (US$5.14M) in 2025, while the value of property, plant, and equipment surpassed 1.058 billion birr (US$.
Raw material inventory expanded by nearly 70 percent compared to the previous year, reaching more than 123 million birr (US$5.14M) as the factory prepares to accommodate higher production volumes at its new facility.
The company’s paid-up capital stands at 622 million birr (US$3.98M), supporting ongoing expansion and modernization initiatives at its Mexico and Sebata branches.
However, NALF continues to depend on short-term borrowing to cover operational expenses such as inputs and salaries.
As of June 30, 2025, the factory held a 96.6 million birr (US$618.02K) overdraft under a 150 million birr (US$959.66K) credit facility from the Commercial Bank of Ethiopia, issued in April 2023 at an annual interest rate of 14 percent. The Sebeta factory building serves as collateral for the loan.
Additional financing includes a 50 million birr (US$ short-term loan from Awash Bank at 15 percent interest, due within one year. Despite these obligations, NALF reported improved profitability.
Net profit rose by 14.7 percent to 307.4 million birr (US$, up from 268 million birr (US$1.71M) the previous fiscal year. Sales reached 2.7 billion birr (US$50.4M), reflecting an increase of more than 200 million birr (US$1.28M).
Established in 1992, NALF manufactures traditional liquors such as tej and produces industrial spirits for domestic markets. Its asset base was recorded at 803.4 million birr (US$5.14M) as of June 2025.
Ethiopia’s broader beverage sector continues to expand amid population growth, rising incomes, and urbanization, with official data showing a five percent annual increase in alcohol consumption over the last five years.
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