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Feasibility Report On Water Pump and Motor

This document provides an overview of the water pump and motor market in Ethiopia. It discusses different types of water pumps commonly used in Ethiopia like coil pumps and spiral pumps. These pumps are mostly used for irrigation and drainage. The document also provides specifications and prices for popular brands of water pumps and motors sold in Ethiopia by companies like Incon, Shimge, Total, LEO, HANAO and Jimma Enterprise Plc. It notes that water pumps and motors are important imports to Ethiopia and outlines import procedures. The conclusion states that there is potential to invest in local manufacturing of water pumps and motors given Ethiopia's growing economy and need for reliable water infrastructure.

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Hanan Biya
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100% found this document useful (2 votes)
1K views20 pages

Feasibility Report On Water Pump and Motor

This document provides an overview of the water pump and motor market in Ethiopia. It discusses different types of water pumps commonly used in Ethiopia like coil pumps and spiral pumps. These pumps are mostly used for irrigation and drainage. The document also provides specifications and prices for popular brands of water pumps and motors sold in Ethiopia by companies like Incon, Shimge, Total, LEO, HANAO and Jimma Enterprise Plc. It notes that water pumps and motors are important imports to Ethiopia and outlines import procedures. The conclusion states that there is potential to invest in local manufacturing of water pumps and motors given Ethiopia's growing economy and need for reliable water infrastructure.

Uploaded by

Hanan Biya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 20

Feasibility report on Water pump and Motor

market in Ethiopia

By Mahder Habtu

May, 2018

1
Contents
Why Invest in Ethiopia?..................................................................................................3

Water pump.....................................................................................................................4

Coil pump........................................................................................................................4

Spiral pump......................................................................................................................5

Manufacturing process.....................................................................................................5

Applications......................................................................................................................5

Two Classes of Water Pump Types..................................................................................5

Centrifugal Water Pump.............................................................................................6

Positive Displacement Water Pumps..........................................................................6

Row material.....................................................................................................................6
Water pump basic functions..............................................................................................7
Major components.............................................................................................................7
Market in Ethiopia ............................................................................................................7
Water pump specification and there price..........................................................................8
Incon.............................................................................................................................8

Shimge water pump......................................................................................................8


Total .............................................................................................................................9
LEO water pump...........................................................................................................9
Motor dynamo.....................................................................................................................9
Working Principle of Motor...............................................................................................10

Motor specification and there price....................................................................................10


HANAO Motor.............................................................................................................10
Jimma Enterprise Plc....................................................................................................11
Total Motor...................................................................................................................11
Water pump and Motor big importers................................................................................12

Import procedures....................................................................................................... .......17

Conclusion...........................................................................................................................20

2
Why Invest in Ethiopia?
1. Political and Social Stability:-

 Ethiopia is the oldest independent country in Africa, and is among the most stable
countries in the region. The 2012 peaceful transition of power to a new Prime Minister
has proven the stability of Ethiopia’s multi-party political system and parliamentarian
form of government.

2. Growing Economy:-

 Ethiopia has grown at an average rate of 10% since 2010. In 2012, Ethiopia was the 12th
fastest growing economy in the world, managing to grow faster than other African
countries such as Rwanda, Mozambique, Zambia, and Ghana, as well as China and India.

3. Excellent Climate and Fertile Soils:-

 Ethiopia is the 27th largest country in the world by land size and given its diverse
topography and geographical location, it is suitable for the production of some of the
world’s most coveted food crops – cereals, pulses, oil seeds, a wide range of fruits and
vegetables, coffee, tobacco, sugar cane, tea and spices, among others.

4. Strong Guarantees and Protections:-

 Private property is protected by the Constitution and the investment law.

 A foreign investor has the right to make remittances out of Ethiopia in convertible foreign
currency at the prevailing rate of exchange.

5. Abundant and Affordable Labor:-

 Ethiopia’s labor law, which regulates worker-employer relations, is in line with


international conventions. With over 43 million workers, Ethiopia has the second largest
labor force in Africa (World Bank’s Doing Business Report, 2014).

6. Regional Hub with Access to a Wide Market:-

 With a population of almost 85 million people, Ethiopia is the second largest market in
Africa, and is also part of the Common Market for Eastern and Southern Africa
(COMESA) comprising 19 member countries and over 400 million people.

7. Improved Economic Infrastructure:-

 Power production has increased steadily over the last ten years, with 99% sourced from
clean energy in the form of hydropower. Ethiopia has the second largest hydropower
potential in Africa.

3
Water pump
Water pump is used in many places in Ethiopia. Especially in rural areas and also in country side
to pump water from the ground to the water reservoir. Water pumps are pumps operated by
electric power to lift water from deep wells to the surface point for the user. They operate fully
submerged in the bottom of the well serving for a long time without the need for servicing. The
pumping of water is a basic and practical technique, far more practical than scooping it up with
one's hands or lifting it in a hand held bucket. This is true whether the water is drawn from a
fresh source, moved to a needed location, purified, or used for irrigation, washing, or sewage
treatment, or for evacuating water from an undesirable location. Regardless of the outcome, the
energy required to pump water is an extremely demanding component of water consumption. All
other processes depend or benefit either from water descending from a higher elevation or some
pressurized plumbing system.

In day-to-day situations, available water is often contaminated, unhealthy, or even naturally


poisonous, so that it is necessary to pump potable water from lower levels to higher levels, where
it can be of use. A fresh water source in a lower stream, river, pond, or lake is often pumped to
higher ground for irrigation, livestock, and cooking, cleaning or other uses by humans, who quite
naturally need fresh water. This will purify mostly fresh water, and the treatment of largely
contaminated water refers endlessly to pumping.

Coil pump
A coil pump is a low lift pump which is composed of a tube, shaped as a coil and mounted on a
rotating axle powered by an engine or an animal capable of turning the axle around rapidly. Due
to the rotation, water is then picked up by the tube and pumped upwards in the hose. The coil
pump, as many low lift pumps, is commonly used for irrigation purposes and for drainage of
lands. It is currently still used by farmers in Asia.

The coil pump was built as an alternative to the Archimedean screw. Unlike the Archimedean
screw, it can run horizontally while the Archimedean screw is tilted at about 30°. The coil pump,
if fitted with a suitable rotating seal, can deliver water to a greater height, typically 5-10m, above
their discharge opening. Despite the emergence of new pumps that operate on other principles,
the coil pump remains an important tool as some of it other benefits are that they can be built and
repaired easily at a very low cost. This is possible as all the components can be built from local
resources as metal; which can be obtained and cast into the desired form easily. However, as
mentioned before, the pump only allows the lifting of water over a small height. This makes it
unsuitable to water drainage or irrigation over larger height differences or many other pumping
applications besides drainage and irrigation.

4
Spiral pump
A spiral pump, sometimes called a Wirtz pump, is a low lift pump which is composed of a long
piece of metal plating, which is wound into a coil and sealed at the top and back extremities so as
to resemble a cylinder. The outer cavity serves as the inlet, while the inner tube serves as the
outlet. A coiled plastic tube will suffice for this arrangement. The outlet pipe is fixed to a water
wheel, engine or animal which is capable of rotating the pump quickly. Due to this rotation,
water is picked up by the outer cavity and pumped upwards in the hose.

Applications
The spiral pump, as many low lift pumps, is commonly used for irrigation purposes and for
drainage of lands. Based on the same principle as the Archimedean screw is consists of a rotating
tube or plane screw to move a liquid. Unlike the Archimedean screw, it can pump while
horizontal. The Archimedean screw must be tilted at an angle. The spiral pump, if fitted with a
suitable rotating seal, can deliver water to a greater height than the coil ump, typically 5-10m,
above their discharge opening. Its main drawback is that the output is small an output
proportional to the volume of the largest coil being moved each revolution. Despite the
emergence of new pumps that operate on other principles, the spiral pump remains an important
tool as it can be built and repaired easily at a very low cost. This is possible as all the
components can be built from local resources such as sheet metal bent into the desired form with
or without machine tools.

Manufacturing process
There are two main portions of Submersible Pump which are coupled together, one is electric
motor and the other is pump which is manufactured single stage or multi stages. Motor body i.e.
Stator is made by boring seamless pipe and fitting stamping in it. The rotor is made by turning
shaft and fitting bushes, stamping on it. PVC wiring is done in stamping of both rotors as well
stator terminals are brought out from the motor and jointed with the cable. Pump has number of
parts which are made out of various metals. The raw material is cut to size on power hacksaw,
turned on laths, key way cut on milling and slotting machine. Some of the parts are ground and
some are balanced on balancing machines. All components parts are inspected at every stage
before taking for assembly. Then the parts are assembled to complete the pump. Motor and pump
are coupled together to get Submersible Pump. Then it is tested for water discharge.

Two Classes of Water Pump Types


There are two general types of water pumps: centrifugal pumps and positive displacement design
type. Both types follow the same purpose, which is to move water from one point to another
continuously. These two major components have a wide variety of options that might be used
depending on your project specific needs.

5
Centrifugal Water Pump
A centrifugal water pump uses a rotating impeller to move water into the pump and pressurize
the discharge flow. Standard, trash, and submersible models are three different alternatives to
centrifugal water pumps. All liquids can be pumped using centrifugal water pumps, even liquid
with low viscosity. These pumps work great with thin liquids and high flow rates.

Positive Displacement Water Pumps


Positive displacement designs are the ones which deliver a fixed amount of flow through the
mechanical contraction and expansion of a flexible diaphragm. These pumps are ideal in many
industries that manage high viscosity liquids, or where sensitive solids are also present.
Recommended water pumps to be used for low flow and high- pressure combination or other
applications.

In addition, these pumps are great when dealing with high viscosity liquids. As any equipment,
positive displacement water pumps also present some drawbacks. These types of pumps require
that the clearance between the rotating pump and the outer edge must be very close. This causes
that the rotation occurs at very slow speeds; otherwise, if the pump is operated at higher speed,
the liquids might erode and will eventually reduce the efficiency of the water pump.

Row material
The pump is made mostly from imported parts like the body cover, the axial electric motor, the
valve and shaft. The other parts are made on the shop with the final electroplating work to be
done on the exposed external parts.

No Raw Material
1 Galvanized pipe
2 Foot valve
3 Brass road
4 Flat Bar
5 Rubber ring gaskets
6 Pig iron
7 Cast iron Scrap
8 Brass scrap
9 Casting Sand
10 Molasses
11 Furnace oil
12 Body cover with seals
13 Valves, glands
14 Axial motor/rotor and stator with cable
15 Handles, Bushings, Shaft

6
Water pump basic functions
 Removing water from a source, such as a river, lake, reservoir, well, springs.
 Move water from the treatment plant to the distribution system or reservoir.
 Circulate water through a distribution system
 Maintain pressure in the distribution system
 Circulate glycol through a heat exchange or heating loop
 Pump chemicals in to the system
Major components

A pump station is composed of four sets of components


 The building or the place we put
 The electric system: the motor and its related components
 The hydraulic system: the pump and related piping
 The control system: pressure, flow, and level switches

Market in Ethiopia

The demand for hand pumps and submersible pumps is met through import, In Ethiopia the main
water pump market is around piazza. There are so many shops and also importers who sale
different brands.
Ethiopia imports various types of pumps for water and also other liquids. The major types of
pumps imported to the country are hand pumps and submersible pumps. Due to inadequate water
facilities, especially in remote rural areas, supply with the help of hand pumps is gaining
popularity. Hand pumps are preferred in rural areas where there is no electricity and for easy
operation and maintenances. Except some efforts made in some workshops to manufacture hand
and submersible pumps but the products supply is mainly from import.
According to the data collected from the Ethiopian Customs Authority the country has been
importing various types of water heaters for the past many years. These include
 Solar water heaters,
 Instantaneous gas water heaters,
 Instantaneous water heater, non electric,
 Electric instantaneous water heaters and immersion water heater, and
 Other instantaneous water heaters.

7
The demand for hand pumps and submersible pumps is met through import. The present (2012)
Demand is estimated at 29,015 pieces for hand pumps and 20,437 pieces for submersible pumps.
The demand for hand pumps and submersible pumps is projected to reach 40,695 pieces and
28,664 pieces units by the year 2017, respectively and 57,077 units and 40,202 units by the year
2022, respectively.

Water pump specification and there price


Incon
This brand is imported from china and well known and also the best water pump, Motor seller in
Ethiopia. Because of its low price relative to the others we can get it in every shops simply and it
is the buyers choose.
Output(KW) Output(HP) Speed(r/min) Price (birr)
1.1 1.5 2840 3800
1.5 2 2840 4100
2.2 3 2845 8500
4.0 5.5 2880 1100
5.5 7.5 2910 16700

SHIMGE water pump


Shimge is a public listed company specializes in producing a large range of pumps for more than
32 years and tops in China with its reliable product and good service. We have in inland market
more than 1100 wholesalers and 4000 distributors and are a very active role in participating of
drafting of more than 50 national and industrial standards, and obtained a total of 125 authorized
patents. We also exports to more than 100 countries around the world.
Also they have a big agent in piassa Ethiopia. They have different kilowatt and Hp range of
water pump. And they are the only supplier to Ethiopian market.

Output(KW) Output(HP) Speed(r/min) Price (birr)


1.1 1.5 2840 4500
1.5 2 2840 6500
2.2 3 2845 13670
4.0 5.5 2880 17500
5.5 7.5 2910 18900

8
Total
TOTAL is a brand that we can also get in Ethiopian market which focuses on top quality tools
affordable. The factory is in china but have different distributers and also sol agents in the world.

Output(KW) Output(HP) Speed(r/min) Price (birr)


1.1 1.5 2840 4000
1.5 2 2840 4500
2.2 3 2845 9200
4.0 5.5 2880 12300
5.5 7.5 2910 17000

LEO water pump


This brand is imported from Italia and distributed different shops in Ethiopia. The price is higher
than the others also the best water pump, Motor seller in Ethiopia.

Output(KW) Output(HP) Speed(r/min) Price(birr)


1.1 1.5 2840 5000
1.5 2 2840 6700
2.2 3 2845 14500
4.0 5.5 2880 18700
5.5 7.5 2910 20000

Motor dynamo
In Ethiopia motor is used in a big rang for different purpose with capacity of 1 to 7.5 horse
power range per annum. Motors are used worldwide in many residential, commercial, industrial,
and utility applications- from those that require a single motor to applications requiring several
motors. Motors may be part of a pump or fan, or connected to some other form of mechanical
equipment such as a winder, conveyor, or mixer. An electric motor is an electrical machine that
converts electrical energy into mechanical energy. The reverse of this is the conversion of
mechanical energy into electrical energy and is done by an electric generator, which has much in
common with a motor.

Most electric motors operate through the interaction between an electric motor's magnetic field
and winding currents to generate force. In certain applications, such as in regenerative braking
with traction motors in the transportation industry, electric motors can also be used in reverse as
generators to convert mechanical energy into electric power.

9
Found in applications as diverse as industrial fans, blowers and pumps, machine tools, household
appliances, power tools, and disk drives, electric motors can be powered by direct current (DC)
sources, such as from batteries, motor vehicles or rectifiers, or by alternating current (AC)
sources, such as from the power grid, inverters or generators. Small motors may be found in
electric watches. General-purpose motors with highly standardized dimensions and
characteristics provide convenient mechanical power for industrial use. The largest of electric
motors are used for ship propulsion, pipeline compression and pumped-storage applications with
ratings reaching 100 megawatts. Electric motors may be classified by electric power source type,
internal construction, application, type of motion output, and so on.

Working Principle of Motor


Motor is convert’s electrical energy into mechanical energy. The principle of working of a DC
motor is that "whenever a current carrying conductor is placed in a magnetic field, it experiences
a mechanical force". The direction of this force is given by and its magnitude is given by F =
BIL. Where, B = magnetic flux density, I = current and L = length of the conductor within the
magnetic field.

From Ethiopian Revenues & Customs Authority the information I get, Demand for AC motors
will increase from 30,633 pieces in the year 2013 to 37,066 pieces and 59,695 pieces by the year
2015 and year 2020, respectively. The demand will reach above 96,000 by the year 2025.

Motor specification and there price

HANAO Motor
Hanao is a big motor production company in china. There are different importers in Ethiopia but
it doesn’t have sol agent. Because of that we can get it many shops.
Output(KW) Output(HP) Speed(r/min) Price(birr)
1.1 1.5 2875 4700
1.5 2 2880 5500
2.2 3 2895 6000
4.0 5.5 2900 7500
5.5 7.5 2925 8700

10
Jimma Enterprise Plc

This company is a big importer of Motor, compressors, pump and parts, Generators in Ethiopia.
They have a motor by their Owen name called JIMMA motor. They imported from china.

Phone +251 111 563082, 556356, 115273


Fax +251 111 551574
Location Addis Ababa, Ethiopia
Primary Category Generators, Motors, Compressors, Pumps & Parts

Output(KW) Output(HP) Speed(r/min) Price(birr)


1.1 1.5 2840 4800
1.5 2 2840 5600
2.2 3 2850 6000
4.0 5.5 2880 7600
5.5 7.5 2910 8900
11 15 2930 28000
15 20 2930 30000

Total Motor
TOTAL is a brand that we can also get in Ethiopian market which focuses on top quality tools
affordable. The factory is in china but have different distributers and also sol agents in the world.
They have both water pump and motor.
Output(KW) Output(HP) Speed(r/min) Price(birr)
1.1 1.5 2875 4800
1.5 2 2880 5400
2.2 3 2895 6000
4.0 5.5 2900 7300
5.5 7.5 2925 8500

11
Water pump and Motor big importers
Yasart Engineering
Yasart engineering is a Private Limited Company which made its presence in the Ethiopian
market in year 2005 in the field of consultancy, supply, installation, testing and commissioning
of electromechanical projects. Our company has mainly specialized in industrial big and small
motors, pumps, generators, coffee processing machinery and other electromechanical services in
the food and beverage industry

1. Pumps

They are authorized business partner of European and Australian made pumps. there suppliers
are worldwide reputable and highly experienced in the pump manufacturing industry and their
products are exported to many countries including Ethiopia. they supply and install pumps for
wide range of application covering all ranges of capacity including different types of pump
available in the world market.

a. Submersible pumps

They supply and install European & Australian make submersible pumps for any domestic,
irrigation water supply projects they supply complete stainless steel submersible pumps that can
meet any requirement suitable for 4, 6, 8, 10 & 12 inch diameter wells. They also supply vertical
line shaft pumps.

b. Dewatering pumps

They are partners of European manufacturers of dewatering and sewage pumps with wide range
of application. These pumps are essential for the following purposes.

c. Positive displacement pumps

They supply and install European made positive displacement pumps for applications where
constant fluid flow rate is needed and for pumping highly viscous fluids.

d. Gear pumps

They supply and install European made oil pumps that are suitable for pumping petrol, diesel and
different types of oils.

e. Hot water circulating pumps

They also supply and install hot water circulating pumps that are used in hot water circulating
applications in different kinds of industries like manufacturing, processing, and the like.

12
f. different types of motors

They supply install and commission firefighting pump sets for residential, commercial and
industrial applications. These units can be electric, jockey and diesel pumps on common base
plate assembled for fire protection systems.

Phone +251 11 8400237

Fax +251 11 4425664

Mobile +251 91 1527087

Location Debrezeit Road, Dawi Building II ground floor, Addis Ababa, Ethiopia

Davis & Shirtliff Trading Ethiopia PLC


Davis & Shirtliff Trading Ethiopia PLC is a well established supplier and distributor of high
quality water related equipment in Ethiopia, sourced from a number of industry leading
companies from around the world. Business activities are focused in six principal product sectors:

1 Water pumps

2 Submersible and borehole pumps

3 Motor

4 Water treatments

5 Generators

Recognizing that the provision of efficient water supply is essential for the country’s economic
development, Davis & Shirtliff is committed to playing a major role in this industry by offering a
comprehensive and competitive product range with unrivaled technical support.

Water Pumps

Offering the country’s widest selection of water pumps in all sizes and for every imaginable
application, Davis & Shirtliff Trading Ethiopia PLC is an industry leader. The extensive range
includes pumps from the leading world manufacturers including Grundfos, Pedrollo and Davey
with over 400 models available. Davis & Shirtliff also offers unbeatable value with the wide
range of own brand of Dayliff pumps as well as a variety of specialist pumps for industrial,
agricultural and commercial applications and justifiably.

13
Phone +251 11 6687295

Fax +251 11 5159351

Sub City Bole

Business Type Private

Location Namibia street, Addis Ababa, Ethiopia

G6 Trading
G6 Trading is an Import and Foreign Trade Auxiliary Company. It is a supplier of motors and
water related goods and services in Ethiopia. In addition to the supply activities, the company is
engaged in installation of electro-mechanical equipments. It mainly aims at adding value on the
principled business environment of the country. In the past years, the company has secured a
very good reputation among its customers all over the country.

Phone +251 116 633722

Fax +251 116633733

Location Bole TK Building 2nd floor Addis Ababa, Ethiopia

Esfre Trading
Esfre Trading is involved mainly in supply of quality products to water supply and irrigation
projects and has successfully supplied materials and equipment’s to projects which are
completed and handed over projects undertaken by public and private institution throughout
Ethiopia. The products they distribute ranges from water work related tools and equipment,
water distribution items, and water storage equipment, to water treatment chemicals and hygiene
and sanitation products. An interesting development was the intention of introducing of solar
powered submersible pump units and Bat-wielding services, especially for Ethiopia.

Phone +251 93 010 9734

Fax + 251 11 558 5176

Business Type Private

Location Urael area Mulugeta Commercial Center 2nd floor , Adis Ababa,Ethiopia

14
Zekalay General Trading PLC

Zekalay General Trading PLC is a Contractor in Ethiopia in water well drilling works its
registered business is in Addis Ababa, Ethiopia and is largely engaged in water well drilling &
construction works, water pumps, different motors, merchandize, rental of heavy machineries,
conducting pump test, establishing water systems and the supply & installation of submersible
pumps and generators.

Fax +251 116 466945

Mobile +251 930 013701

Business Type Private

Location Addis Ababa, Gurd Shola, Holy City Center, 4th floor, Addis Ababa, Ethiopia

Emu General Importer PLC

Emu General Importer PLC has established itself as one of the renowned importers of high
quality diesel generators, water pumping sets, construction equipment, and their spare parts to
Ethiopia since 1997.

Products they supply

1. Submersible pumps

2. Electric pumps

3. Centrifugal pumps

4. Hand pumps

5. Motor

Phone +251 11 5522900

Fax +251 11 5523232

Business Type Private

Location Addis Ababa, Ethiopia

15
Periplus Business Plc
Periplus Business Plc has been established in 2000E.C with the concept of providing its clients
the best quality services expressed in supplying the range of products for water pump,
Electromechanical, Motor, Agricultural, Measuring & Testing, Industrial and construction
Equipments in Ethiopia. Shortly they can say that this company is playing its role and is
participating in the achievement of targets, goal and destinations towards updated and productive
industrialization, by providing quality material supply controlled with professional’s care,
targeting our customer satisfaction.

Phone +251 111 565256

Fax +251 111 565256

Location Global Insurance Building, Addis Ababa, Ethiopia

Abulkhase PLC
Abulkhase PLC. is an Ethiopian importer and distributor of construction and agricultural
machineries, sole agent for fiori self-propelled mixing systems in Ethiopia, other machineries
and spare parts, building materials, paper and paper products, textiles, food items, generating sets
and electric motors, diesel engines, vehicles and spare parts, supplier and dealer of Bashan
motorcycles and various types of vehicle spare parts

Phone +251 11 2756471

Fax +251 11 2752903

Business Type Private

Location In front of Cinema Ras, Wollo Sefer, Addis Ababa, Ethiopia

16
Import procedures
Information on import procedures in Ethiopia in relation to the pre-shipment inspection on goods;
applications submitted to commercial banks in Ethiopia to obtain import permit; modes of
payment allowed for import, documentation requirements to effect payment and document
checking and verification.

Pre-shipment Inspection
Goods imported are not required to be inspected prior to shipment except when they are
imported from China or if the importer and the supplier have an agreement for pre-shipment
inspections.

Pre-shipment Inspection on goods imported from China: The Ministry of Trade has made
arrangements with China Inspection and Quarantine Bureau (CIQ) so that the latter would carry
out the inspections prior to shipment and issue the quality certificates.

Requirements
1. Pre-shipment Inspection requirement on all goods purchased from China implemented in
effect since January 1, 2007

2. Pre-shipment inspection certificate is one of the documents required to effect import payment
from China.

3. Pre-shipment Inspection certificate requirement is mandatory for all import purchases made
from China.

4. Banks are required to insert requirement in the LC and also to insure that purchase order
transmitted clearly depict to have CIQ inspection requirement.

5. Banks cannot accept documents without CIQ certificate if goods are imported from China.

Import Payment
Foreign exchange can be availed by banks to any importer provided they can present one of these

1. Import License issued by Ministry of Trade

2. Industry License issue by Ministry of Industry

3. Investment License issued by Investment Agency

Applications submitted for import should be accompanied by the Pro forma Invoice contracts
from suppliers stating

17
1. The type of commodity

2. Quantity of the commodity

3. Price per unit

4. FOB amount

5. Freight if any

6. Other charges

7. No insurance payment is allowed for payment in Foreign Exchange, so the importer should
make insurance arrangement locally.

Mode of payment allowed for import

1. Letter of Credit

2. Cash against document

3. Advance payment

Documentation requirements to effect payment:


It is important that the required sets of documents that should be presented by the supplier to
demand payment should be mentioned in the LC or Purchase order. The following are mandatory
for payment and always mentioned in the LC or Purchase order:

1. A final invoice (commercial invoice) attested by the chamber of commerce of the country of
the supplier

2. Original sets of Bill of lading, Airway Bill, Truck way bill, Railway Manifest (depending on
the mode of transportation)

3. Country of origin invoice attested by the chamber of commerce of the country of the supplier

4. Packing list

5. Certificate of quality where appropriate

18
Importers who wish to import using CAD
1. Should first get approvals of the their Bank on the purchase order they wish to pass to the
supplier

2.The purchase order should clearly sate document requirements and certificate to be attached.

3. Shipping documents normally required for import payments

4. Payment can only be released on CAD provided the importers get the prior approval from its
bank.

19
Conclusion

 The demand for water pump and motor is met entirely through import and have very big
demand.
 There is always need for water pump and motor and it is not seasonal so there is always a
demand in the market so it’s very profitable.

 Most of importers bring from china But at this time there are different importers who
sales in low price so we have to conceder it.
 There is a big demand in rural areas because they start farming by irrigation

20

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