On Monday, the Qatar business delegation was hosted here at Hyatt Regency for a matchmaking event with the Ethiopian counterparts aiming at promoting Ethiopia-Qatar Strategic Cooperation in trade and investment. The two day business-to-business meeting was jointly organized by the Qatar Development Bank and the Ethiopian Chamber of Commerce and Sectorial Associations.
State Minister of Trade and Industry Teka G/yesus said the visit of the Qatar business delegation to Ethiopia is vital in promoting business matchmaking cooperation between the two countries.
As to the State Minister, Ethiopia and Qatar have established close relations, based on historical ties and a common desire, to open wide horizons of opportunities and areas of cooperation in political, commercial, economical, investment and other fields. In this regard, there are several agreements and memorandum of cooperation signed between the two countries which will enhance the bilateral relations between Doha and Addis Ababa.
For instance, the agreement for the establishment of a joint committee for co-operation between the governments of the two countries, the agreement on economic, commercial and technical co-operation, the agreement on regulating the use of workers in Qatar, the agreement on encouraging mutual protection on investment avoiding double taxation and prevention of financial evasion, and the agreement on cultural operation are among some of the agreements signed by the two countries, Teka noted.
According to him, Ethiopia is attracting more foreign direct investment providing ample investment incentives, in addition to its favorable climatic conditions, access to huge market, availability of low labor cost, and presence of high degree of economic freedom and privatization. Moreover, provisions of exemption for export and income taxes for more than ten years, in addition to the presence of advanced infrastructure such as roads, transport, shipping, communication are the means that make Ethiopia a promising investment destination for foreign investors, he added.
Henceforth, the Qatari companies invested in Ethiopia in partnership with Ethiopian and Sudanese investors in agriculture, construction, manufacturing, real estate, transport, services, pharmaceuticals and building materials.
Teka said: “I strongly believe that this event provides a golden opportunity to discuss the latest policy developments, exchange experience & enhance trade and economic cooperation between the two countries. Looking in the future, there will be even greater space and potential for our mutual beneficial cooperation.”
Speaking on behalf of the Ethiopian Government, and the Ministry of Trade & Industry, Teka said: “We are dedicated to strengthen the trade and investment cooperation between Ethiopia and Qatar.”
Likewise, Temesgen Tilahun, Deputy Commissioner to Ethiopian Investment Commission, said on his part that these kinds of business exchanges have significant importance to maintain the rapid increase in trade and investment transactions between the two countries.
As to the Deputy Commissioner, the government has been implementing massive and continued infrastructural projects in roads, railways, power generation, airports in the past two decades. This has ensured the country to have one of the most competitively priced cost structures in the African Continent with regard to electricity, overall operational environment and production costs.
Currently, the Government’s growth strategy emphasizes the development of industrial parks as an important tool to support economic diversification, attract investment and increase exports, he said.
“The IPs scheme is especially relevant in the light manufacturing sector to create employment, initiate export led growth, encourage private investment attractions and stimulate benefits from integration with the local economy. Industrial parks are projected to be equipped with a streamlined business environment, common services and amenities, high-quality infrastructure and readily serviced industrial land,” Temesgen explained.
In so doing, Ethiopia provides attractive investment incentives to enterprises that establish themselves inside industrial parks ranging from 10 to 15 income tax exemptions to duty free imports of capital goods. These ranges of incentives are opted to bring as much investment flow into the country.
Temesgen also highlighted that all such arrangements have been made available to local and foreign companies through a single, efficient and streamlined industrial parks administration.
Currently, Ethiopia operates 13 public industrial parks; of which, eight are fully operational and the rest are under construction. There are also more than eight industrial parks that are being developed by private firms, he stated.
As to Temesgen, the government has also put in place concrete plans to develop thirty industrial parks by the end of 2020. The major emphasis of the government for developing these industrial parks are maintaining environmental and investment sustainability throughout the country by building vertically integrated industries with state-of-the-art facilities such as the Zero Liquid Discharge.
President of the Ethiopian Chamber of Commerce and Sectorial Associations, Engineer Melaku Ezezewu also explained that Ethiopian companies have strong interest to establish new partnerships with Qatari counterparts so as to further promote trade and investment for mutual benefits.
According to Eng. Melaku, the major imported commodities from Qatar to Ethiopia are Urea, Polyethylene, and Polypropylene in primary forms; in addition, polymers of ethylene, petroleum oils and bituminous oils are among others. The total trades turn over between Ethiopia and Qatar was 22.3 million USD in 2008 and decreased to 5.8 million USD in 2018, Eng. Melaku disclosed.
Moreover, the trade balance between the two countries is far from one another. Ethiopia imported 172.4 million USD worth of goods from Qatar and exported 4.9 million USD of goods over the past ten years, as to Eng. Melaku.
In sum, Qatari companies are now making partnership with Ethiopian counterparts as potential buyers, agents, distributors and export/import partners in various sectors such as construction, pharmaceuticals, medical supplies, and packaging among others. This will certainly strengthen the overall relations of the two countries, particularly in economic and social cooperation.
The Ethiopian herald February 1/2020
BY ZELALEM GIRMA
