Summary
Mina Water Company was established in 2018 under the parent company East Hub Food and Beverage Industries. They have been operational since 2020.
Mina Water produces natural and purified water sourced from the mineral-rich streams of the Faafan Mountains. It has a production capacity of up to 10,000 bottles per hour using modern filtration systems and rigorous quality inspection. The company offers free delivery within a 100-kilometer radius of Jijiga.
Investment Thesis
Unsafe water is a significant contributor to disease and malnutrition worldwide. This recognition has led to the proliferation of the industry, particularly in developing nations where water contamination is the leading cause of death. As such, Ethiopia’s rapidly growing population equates to a need for large quantities of safe, affordable drinking water.
These factors alone present an interesting investment case. In addition to high local demand, there is also significant opportunity to capitalize on the export market of drinking water, in particular to arid countries such as Somalia and South Sudan.
Mina also has the benefit of proximity to a key input – plastic manufacturer and supplier of bottles. Mina is able to purchase its bottles directly from a local producer, thereby cutting costs, minimizing risk and maximizing efficiency.
Refugee Impact
Water is a basic human right and access to affordable, quality water is a critical need that is currently not being adequately met in the region. An investment in Mina could support improved health outcomes and overall wellbeing for refugees and host communities.
Through strategic RLI network support, water companies such as Mina could not only expand their operations to serve more clients and employ more host and refugee community members, but also develop partnerships with humanitarian and development agents to maximize impact and access to local refugee settlements.
The struggle to provide clean water is becoming increasingly acute due to the severe drought plaguing the country coupled by the massive internal migration taking place as a result of the ongoing conflict. Companies such as Mina are critical actors in the efforts to increase access to clean, affordable drinking water for refugee, IDP and host communities.