BY HEZKEL HAILU
Ethiopia is undergoing major reforms, especially in the economic sector that aims to improve the participation of the private sector. One of the goals of the reform is to create a favorable environment for the private sector to have an improved role in the economy.
Taking this national aspiration into account, the newly established Sidama regional state is working to lure private sector investment to the state. The regional state administration has come up with various plans to overcome challenges that hinder the private sector’s participation such as infrastructure, bureaucracy, lack of finance, market linkage and input and land supply.
Desalegn Messa, Sidam Regional State Investment Commission head told The Ethiopian Herald the Commission has planned to make Sidama a suitable destination for foreign and local investors who are likely to invest in Ethiopia.
The regional state is particularly working to improve rural and urban land supply, as well as the security and infrastructure needs of investors.
He further said starting from the time when the reformist government accepted the statehood quest of the Sidama people after prolonged deliberation, the state Administration has been focusing on reforming structures to reinforce the regional state’s economy. As to him, the Investment Commission particularly is working on strengthening the task of accurately identifying the potentials for various investment opportunities in the regional state.
According to Desalegn, the geographical location of the regional state is naturally conducive to agriculture, has great potential for recreational tourism, and is rich in minerals. These are among the favorable conditions for investment in Sidama.
Mentioning that the state is making various arrangements to take advantage of its natural and man-made investment opportunities, he said that one of the concerns of investors have been the issue of stability. In this regard, the regional state has shown significant improvement.
During the current fiscal year, a significant number of investments have come to the region though there remains a lot of tasks ahead in facilitating their full implementation.
According to him, the Commission has been successful in attracting investors as it was managed to systematically identify the potential and lucrative investment opportunities in the area.
Investors are engaging in the state in the construction, service and industry sectors including agricultural development. The state administration has created favorable conditions to enable local and foreign investors to commence production and operate safely.
Desalegn also said a number of investors have expressed their interest to invest in Sidama regional state adding that different companies including Angafa Ama oil refinery factory that have invested billions have already shown a strong will to invest in the region.
The current investment activity in the region is at a good level, including the situation of existing industries. As to him, various local and foreign investors including the Chinese dairy industry has also entered the Yirgalem Industrial Park which is found in the State.
When the dairy industry goes fully operational, it consumes more than 60,000 liters of milk per day and can benefit many farmers through market linkage. Efforts are being made to do the same for other factories. “We are also working hard to ensure that any investment is sustainable and integrated with environmental concerns and the community,” he added. “We are also is working hard to improve the bureaucracy through adopting and delivering a single-window service,” he added.
Sidama is well-known for its coffee production and international brands. As to the Commission, there is a favorable environment for investors, especially who are ready to take part in coffee value-addition and coffee export to the international market.
Indicating that it is possible to produce a variety of oil crops in the lowlands, Desalegn said barley, wheat and other crops can be widely grown in the highlands areas of the region. In addition, as it is a region that is rich in fruits and vegetable production. Hence there is ample opportunity for investors that want to engage in the processing of these agricultural products. Besides, there is unexploited potential in the honey production and livestock sector.
Apart from the agricultural and industry sector, there are also favorable conditions for tourism development. “We are also identifying additional tourist destinations. By its nature, the lakeside city of Hawassa is suitable for investors who want to engage in hotel and tourism, real estate and sectors. Besides other areas such as Yirga Alem, Aleta Wondo and other cities are also suitable for such activities.
“We will be able to revitalize the manufacturing sector and focus on technology transfer to substitute imports and save foreign exchange. Along with technology transfer, job creation is also our main focus. We are planning for mega industries to come to the regional state and create a significant number of jobs.”
According to Commissioner Desalegn, one of the criteria to encourage investors in the region is the application of local inputs. “When industries come, create job opportunities and export local products, this, in turn, will facilitate technological transfer, which will greatly contribute to the region’s economic growth,” he added.
For example, the regional state supplies more than 60 percent of the metals used by a foreign company. “We are also in the process to accept an Indian company with a capital of 400 million birr. The company is set to utilize its whole input fro production from local sources.
A company that produces avocado oil in Yirgalem Industrial Park has also agreed to use local inputs. Accordingly, the best seeds of Avocados and Mangoes were supplied to the farmers in the area. “Experts have given adequate instruction and information to the farmers regarding the production process of quality agricultural inputs to be supplied to the nearby industries. In addition, modern fruit harvesting equipment has been distributed to the farmers to ensure that the fruits are preserved and delivered to the factories safely. In addition, four centers were built to collect fruits.”
In general, he said, the regional administration has managed to counter the misinformation spreading about investing in Sidama regional state by creating a safe and favorable investment climate.
“We would like to inform local and foreign investors that Sidama is now a favorite destination for investors in terms of peace and security. We are waiting for investors to come and invest here and grow together,” he said.
