(Ecofin Agency) - South African Tiger Brands has announced that is sold its 51% stake in East Africa Tiger Brands Industries (EATBI), in Ethiopia, to its partner EAG for an undisclosed amount, Reuters reports.

According to Tiger Brands’s management that said the price offered by its partner for the stake was “fair and reasonable”, the deal does not mean that it is exiting the Ethiopian market.

“Ethiopia remains a market of significant potential and options will be explored to maximise opportunities in relevant product categories,” the South African firm said.

This deal which comes after the firm sold its Nigerian business to Dangote Industries, leaves analysts perplex since EATBI shows positive indicators. Indeed, the firm, with Kenyan Haco, constitutes Tiger Brands’ main business in East Africa. These two firms had a turnover of R514.1 million for R35.7 million of profit at the end of the semester ended last March.

Present in the food, in the manufacturing of cleansing products, packaging and cosmetics, EATBI employs 2,000 people.

Aaron Akinocho