Investment is one of the most important sectors in economic development. It has the potential to reduce unemployment, generate competitive advantage in the global market and drive technology transfer.
The role of investment in Ethiopia’s economic development is crucial. In addition to the industrial parks built by the federal government, regional states are also working to consolidate Ethiopia’s economic growth.
Oromia is one of the most economically viable states with the natural resources and geography of the region. Over the past six months, the region has been striving for reform works discerning the problems of the sector.
Haile Jelde, Commissioner of the state’s Investment Commission, told Addis Zemen Daily that one of the main concerns was encouraging and strengthening existing investments. He noted that a study to improve investment service delivery by combining experiences of Rwanda and other African countries was presented to the Board. As a result, the agency has improved its service delivery and tried to answer a variety of questions raised by investors.
The second area of focus was to invite new projects to the region to ensure the economic and social benefits of the country and society. The competition-based approach has been put in place by virtue of facilitating land provision in advance and setting up open bids, eliminating the traditional approach that would lead new investors to invest in the region in the past.
Abandonment of repeated returns of an investor to seven to eight institutions to enter into the business has put in place a mechanism that allows relevant stakeholders to come together and provide the required services at a definite place, he said.
This approach, which enables an investor to access all the services in a specific location, can save time and effort. The board also noted that large works have been done around the area to review the new system and give further suggestions. According to the commissioner, in the first half of the fiscal year, effective works have been done in these two areas of focus.
He added that the necessary work has been done to digitalize investment in collaboration with the regional science and technology authority and work has begun following provision of training. The experience of other countries suggests that while investment is a factor in their growth, it is likely to affect the climate, land security and human health, to some extent. Some measures have also been taken in the region to implement the scientific solutions that countries have used to overcome these problems.
One of the benefits of using technology is solving the community’s concern that investment has caused a number of social problems, and it provides customers with access to online services that provide general information about the region’s investment in the area.
One of the reasons why the Oromia state needed to amend the new investment rule was because the urban investment was already led by the land administration and the investment bureau controlled only rural investment so there was a gap. He said that the entire investment issue has been brought to the investment commission under the revised guidelines.
The commissioner noted that the former beneficiary had access to the required space and land in the previous system; the new directive and regulation, however, indicated that the Commission would adopt a bid system to offer competitive bidding and give all investors the same opportunity.
He said, “It would help to answer the investor’s request and implement fair procedures.” He noted that the law also encourages farmers and pastoralists to invest. The farmer’s partnership with the investor is set out in the new regulation before the land is released to the investor in the name of investment. This would solve the problem of farmers who are constantly subduing the land due to investment.
The rule will help to balance the distribution of investment in the region. It is also said that it can help zones in the region to balance the distribution of investment between zones by competing the land they have allocated for investment. Hailu explained that 31,851 hectares of land have been prepared for auction since the new guideline and regulations were prepared.
In connection with this, it is to be recalled that the State’s President Shimelis Abdissa gave extensive commentary on the 11th regular conference of the fifth year of Oromia council regarding the draft proclamation to establish the ‘Gadaa Special Economic Zone’. In his statements, he noted that the region has not proved its economic benefits to the extent required from natural resources. Efforts are being made to make the region accessible for investment. The proclamation to establish a “Gadaa Special Economic Zone” will strengthen the efforts, he added.
He further stated that no room for investment in the region that could not guarantee the benefits of farmers of the state, and a new system is being implemented that enables partnership with the investors. It is in the direction of economic development to take advantage of the region’s investment potential.
The Ethiopian Herald March 10/2020
BY BACHA ZEWDIE
