H. Gallob GmbH has
set as its goal the establishment of a successful business model in
Ethiopia. The core elements of this goal are activities in real
estate, investments in small and medium-sized companies in various
sectors (private equity), investments in financial companies and agrobusiness. In
the first phase, all business transactions will be carried out
through the subsidiary Gallob Real Estate PLC located in
Ethiopia.
We concentrate on segments characterized by high
profit margins. Our operation in the international capital markets
over many years has taught us that profits do not change linearly but
rather are subject to cycles. During these cycles, losing years must
also be expected; these difficult market phases can only be survived
undamaged with a cushion that is built up during the good years. In
our understanding, this is more possible with companies that yield
high amounts of their own capital.
For us, management is not
only the maximization of profits; we also consider the social
components to be very important. In one of the poorest countries in
the world (based on a per-capita income of under 120 USD per year)
with high unemployment, this aspect is even more important than in
the rest of the world.
We do not want to support a policy of
“hire and fire”, but rather we want to place value on long-term
relationships with employees. This applies both to our subsidiary and
to investments made in external companies. In Ethiopia, the
relationship between employer and employee is viewed differently than
in Europe or the US; the identification with the employer is much
stronger.
The integration of the company in the daily life of
a city or community is also given attention. The support of nonprofit
organizations and projects (primarily in the education sector and in
the medical field) and possibly the establishment of a foundation for
social purposes are planned for the coming years. However, this will
be financed exclusively from profits.
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