ADDIS ABABA- It is extrapolated that Foreign Direct Investment (FDI) will snowball in the course of the coming half fiscal year in tandem with the privatization task, so disclosed Ethiopian Investment Commission (EIC). It was also made possible to attract 1.6 billion USD during the past six months of the fiscal year.
Mekonin Hailu, Communication Director at The Commission told The Ethiopian Herald that as lots of government owned development sectors are going to be privately owned, the turn of events is expected to develop the FDI sector. The international companies will utilize the privatization opportunity and participate more in different sectors. So this opportunity is expected to augment the income from FDI.
These days, Ethiopia is internationally preferable for investment. It as well is being singled out an investment-comfy place in Eastern Africa, he said. With its developing economy and committed government for investment development, its level of preference is displaying an upswing. Ethiopia is also member of AGOA and EBA which lends it much-needed edge to export goods to American and European market duty free. The availability of easily trainable labor and Industry Parks, which are mushrooming in the country, is also the other factor.
Regarding assessing potentials, higher international investors are always here in Ethiopia from USA, Canada and from almost all European countries like Germany, France and Netherlands. The Middle East and African companies too have been participating in the manufacturing, agriculture and service sectors. They explore other investment opportunities as well.
United Nations Conference on Trade and Development’s (UNCTAD) report released recently put Ethiopia as the biggest Foreign Direct Investment (FDI) recipient in the East Africa region and the fourth largest FDI destination in Africa in 2019.
But as to the EIC Communication Director, The (UNCTAD) launched report has some incorrect statement that indicates the FDI had tumbled down to 2.5 billion USD last year from 3.3 billion USD in 2018. He made clear that the country had managed to attract about 3.1 billion USD during the past fiscal year. It had collected 3.75 billion the year before last.
The Ethiopian Herald Sunday Edition, February 2/2020
BY GENET FEKADE
