Promoting peace and security is an essential foundation for sustainable development in fragile and conflict-affected countries. The imperative to address fragility, conflict and insecurity has become a central focus of global development processes.
This has culminated in the inclusion of Global Goal 16 on ‘inclusive and peaceful societies’ in the 2030 Agenda for Sustainable Development and the mandate to look beyond aid to include much broader sources of finance. It is important therefore to understand the current financing landscape for peace and security and identify gaps in targeting in response to the needs of vulnerable and conflict-affected people.
Ethiopia is one of the African countries that attract foreign investors. It is true that the revived investment is playing a significant role in the economic development of the country. Although the instability of the country in recent years is unlikely to be a threat to investment, the sector is still proving to be the backbone of the country’s economic development.
Director of Public Relations of the Ethiopian Investment Commission, Mekonnen Haile, told Addis Zemen Daily that it was planned to earn one billion USD from foreign direct investment in the quarter. As a result, 700 million USD or 70 per cent of the plan was achieved. He also mentioned that about a hundred new investors have come into the country.
“Though contribution of the investment sector to economic growth for our country has been growing steadily, it is facing various challenges. In particular, power breakdown and a shortage of foreign currency are some of the challenges facing the sector the director said.
Mekonnen, who says peace and security has an indispensable role in the growth and expansion of investment, noted that the instability in the country has impeded investment in some areas. He added that such an event would further erode the country’s good image in the future.
He said investment should play a major role in reducing the unemployment rate in the country, and in this regard, especially the youth should ensure that they take advantage of the opportunity. The director advised that every citizen should contribute to the expansion of the sector.
Mulatu Dugo, Director of Planning and Budgeting and Finance Management of the Oromia Investment Commission, for his part explained first quarter’s investment performance of the state. He said that it was planned to attract 448 projects, but it was able to attract only 124 projects of mainly local and diaspora investors. These projects registered amount of 4.5 Billion Birr and are licensed to engage in agriculture, agro-processing, manufacturing and a few in the service sector.
He said that some projects have been disrupted in the region over the last three to four years. As a result, some of the investments have been recalled, but now many have resumed. The harm against investment would reduce the interest of other investors who want to join the sector.
According to the director, many foreign investors show interest in entering the country since the reform, adding that when the peace is secured, the flow of the investment will increase. The benefit of the country will also grow in the same pace. Hence, since no growth without investment activity; the society, especially the youth, should ensure its benefits by maintaining peace.
Biruk Esteziaw, Projects Monitoring and Support Director of the Addis Ababa Investment Commission, for his part said that it was planned to issue licenses to 750 projects in the quarter and 811 were licensed. Accordingly, it was achieved 108% of the plan. The majority of domestic investors and Ethiopian-born foreigners have accumulated over 20 billion Birr capital.
He also noted that despite the increase in investment in Addis Ababa, there is limitation in land, credit and energy supply.
Peace in the regions has not been secured over the past two and three years. As a result, investors and even the staff have made Addis Ababa the preferred choice and become the reason for increased investment inflow. This is an event that will bring about imbalanced growth across the country.
“Investment by nature requires a stable economy and peace,” he said, “Without peace there is no stable investment and job creation. Since peace and investment are two sides of the same coin, the youth should take care of income generating institutions for the benefit of themselves and the country.”
The Ethiopian Herald December31, 2019
BY BACHA ZEWDIE
