BY HIZKEL HAILU
Promising to undertake sustainable reinforcement measures to investors operating in Tigray State, Ministry of Trade and Industry urged investors to resume their manufacturing businesses in the state soon.
Last week, the ministry held extensive discussions with Tigray regional state investors. On the occasion, State Minister Yohannes Dinkayehu expressed the government’s readiness and commitment to supporting the investors in their efforts to reopen manufacturing industries in the State. Besides, a task force has already been established to support investors, he added.
Calling the investors back to work in the state as the law enforcement operation is now completed, he reaffirmed the Ministry’s and other government stakeholder’s commitment to providing relentless support.
He also added that the stakeholders have started some preliminary activities to provide support such as identifying opportunities to restart the investment and assessing the current state of different factories in the state and the like.
The Ministry’s Textile and Apparel Research, Monitoring and Support Director and the Taskforce Chairperson Zerihun Abebe for part said: “We are working hard to reopen the manufacturing industries in the state as soon as possible.”
Mentioning that there are about 93 higher and about 7 thousand small and medium industries in the state that covers about 40 percent of small and medium investment in the country, he stated that the taskforce along with the ministry and other stakeholders is negotiating with international buyers to recommence previous business connections with the investors in the regional state.
He further stated that the manufacturing industries that were functional in the Tigrian State created more than 270 thousand job opportunities. This has paramount importance to the social and economic development of the country in general and the regional state in particular.
The investors noted that they are facing different challenges including difficulty in terms of paying salary for their staffs and employees, the COVID-19 lockdown and its impact on international buyers, particularly European and US markets, and the security issue in the region.
The task force also provided some solutions for the investors to be back to business. As to Zerihun, ensuring stability in a sustainable manner, assessing the day to day investment activity jointly with the national command post, helping industries to prepare their plan to be back to business and creating awareness about the current situation of the state to foreign investors are some of the taskforce’s recommendations.
Speaking to The Ethiopian Herald, Ethio-Shewit General Trading Plc and Dashen Steel and Nail Factory Manager Mikiyas Tefera appreciated the government’s promises to solve the investor’s challenges particularly in terms of foreign currency shortage and customs procedure in order to restart businesses within the shortest period possible.
Appreciating the federal government for its assistance in safeguarding their Chinese business partners and in bringing them back to Addis Ababa safely at the time of the law enforcement operation, he asked the government to come up with some incentives and supports with regards to foreign currency and raw materials supply shortage.
He also said that their foreign business partners and experts have not yet returned fearing there could be instability. Noting that they cannot afford their rental payment, he pledged the ministry to help them to recommence their businesses immediately.
“The junta has damaged our factory in Shire Town. We lost nearly 92 million Birr. We will try to go back to business in the near future,” said Gebreigzi Tsehaye, Founder and Head of Zenith Gebs Eshet Eth Ltd.
Acknowledging its commitment, he requested the government to provide his company with clear information about the status of its factories in other parts of the state. He also asked the government to solve their problems related to the customs.
He also pledged investors and the general public to work jointly to improve competitiveness and development rather than engaging in conflict.
Bajaj J. Indian investor from Mekele Industrial Park on his part asked the government to give appropriate information regarding the safety of investments in Tigray. “Though we need to start our factories, we need to start from zero. Therefore the government of Ethiopia should support us,” he asserted.
Adding to the point he stated that most of his partners have returned back to their home, he highly appreciated how the National Defense Force of Ethiopia gave them cover to go to Addis Ababa safely.
Responding to the investors’ questions, Yohannes pledged that his office is ready to give any kind of support for the factories which are ready to start their businesses soon. The government is ready to work with the Tigray State interim administration, commercial banks and other stakeholders to resolve the investors’ challenges particularly with regards to access to loan and finance.
Regarding the factories ravaged by the Junta, he said that the ministry is in consultation with the National Bank and Commercial Banks to offer loans for the investors to rebuild apart from providing technical and other support for manufacturers in the state.
Similarly, Samuel Halala, Director-General of Institute of Chemicals and Construction Inputs Industry Development underlined the government’s readiness and commitment to support investors to reopen their manufacturing industries in the region.
Noting Mesobo Cement factory has finalized preparation to resume production, he further noted that his office is eagerly waiting for investors to make any technical and other support.
“As we are stakeholders in the manufacturing industry, do not hesitate to ask any kind of support from our office,” he told the investors. “We want to see your factories start operation soon. We are also working with the Customs Commission to solve the problems regarding ports and the tax system,” he noted.
As to Yohannes, the investors’ queries will get the response they deserve soon particularly in relation to foreign currency, capital budget, and customs.
He also promised to work with the National Bank to support factories that incurred damage and face a shortage of finance to pay the salaries of their employees, he added.
All investors who participated in the discussion also agreed to get back to business and production soon as the government’s law enforcement operation is now over.
The Ethiopian Herald January 6/2021
