BY MUSSA MUHAMMED
Both local and foreign investors need encouragement and incentives to engage in investment in Ethiopia and the government has come up with various schemes to support them, Ethiopian Investment Commission (EIC) said.
Various government structures have stressed their commitment to participate in providing support for and facilitating the growth of the investment sector.
The most recent action that demonstrates this support is EIC’s visit to sites/factories that are found across the country where its and other regional officials, as well as experts, participated.
TTR is one of the domestic companies engaged in Afar regional state. Having 500 employees and located in Afdera, the factory which installed the latest machinery produces 25,000 quintals of iodized salt per day, said EIC Commissioner Lelise Neme on the occasion.
According to Lelise, this is just the start of the long journey to make the investment sector one of the key areas of Ethiopia’s economic growth by working jointly and closely with every level of government structure.
As to her, the visit and the incentive packages will address the questions/concerns of local and foreign investors regarding gaining support from government offices at different structures.
EIC Deputy Commissioner Daniel Terresa added that the government’s support scheme also extends to facilitating the supply of inputs to the factories and industries.
This can be witnessed through the government’s support to Tanramo, a company that produces Bromine in Lake Afdera, which can be utilized as an input for various chemical, pharmaceutical, and other products.
One of the factors that attract investment in Ethiopia is the availability of abundant agricultural resources such as fertile lands, diverse ecological zones, and vast water resources suitable for agricultural investment.
The government shows a strong commitment to utilizing these fertile lands for investment by attracting investors that has the capital and technological capacity to invest in Ethiopia and get mutual benefit from development.
Daniel also added that the investment sector presents vast opportunities for investors. And one of the reasons for the recent visit is also to encourage irrigation-based agricultural investment and large scale wheat production.
There are also encouraging developments in attracting investment in the construction sector. Recently, a one billion Birr agreement was signed between Rock stone and Hua Hong to build an environmentally-
friendly, 21-story apartment building in the Signal district of the capital city Addis Ababa which is Called Kefita. It is a rare European real estate investment venture in Ethiopia set for completion in 2023.
The Afar regional state commissioner Asiya Kemal said besides encouraging investors, the government’s investment support scheme would play a crucial role in boosting the country’s economic growth.
Ethiopia’s rapid economic growth record and the potential in the industry, agriculture and horticulture sector makes the country a preferred investment destination.
In addition to that power supply also has increased steadily over the last ten years, with 99% sourced from clean energy in the form of hydropower. The Grand Ethiopian Renaissance Dam (GERD) is the largest hydroelectric power dam in Africa being built on the Nile River which is expected to generate 6,000MW of electricity. This coupled with Gilgel Gibe-III with
1,870MW and Genale Dawa-III with 254MW and other wind power projects will confirm Ethiopia as a regional powerhouse in Africa Daniel added.
Expanding and improving telecommunication service and road network connection at the national and regional level is one of those various enabling factors for Ethiopia to attract investment.
The newly built Ethiopia’s Addis to Djibouti electric power railway also mak makes the access to port Djibouti much easier and will boost the economy and be the leader from the continent.
Ethiopian, one of the most successful airlines in Africa is also brings comparative advantage for investors.
Besides the government’s incentives, construction of state-of-the-art industrial parks and other infrastructural expansions make Ethiopia one of the preferred investment destinations in East Africa.
The Ethiopian Herald January 31/2021
