BY BACHA ZEWDIE
Despite the challenges the country has encountered with including the law enforcement operation in Tigray State and the global COVID-19 pandemic, the inflow of Foreign Direct Investment (FDI) into Ethiopia remains promising. As to the Ethiopian Investment Commission (EIC) and states’ investment bureaus, a coordinated effort is needed to sustain it.
Mekonnen Hailu, Public Relations Director of EIC told The Ethiopian Herald that the Commission is working vigorously in promoting the country’s investment potentials and luring FDI.
In addition, EIC has come up with various packages in supporting the investors in the country to facilitate fertile ground for them to be successful in their businesses.
At the moment, the Commission has particularly given due attention to luring and increasing the inflow of FDI to the country. It has been closely working with States’ administrations to create a conducive business climate for foreign investors.
In this regard, EIC Commissioner Lelisie Neme, accompanied by high officials of the Commission, has paid work visit recently to the states of Afar, South, Oromia, Amhara and Sidama intending to encourage the investment activities underway in the respective areas, Mekonnen noted.
The officials have visited different projects that are operational in the States. During the visit, the officials have conducted thorough discussions with the officials of the States and the investors with the aim of providing necessary support to solve possible challenges the investors have encountered while running their businesses and for a better outcome in the future.
Of late, as to Mekonnen, EIC revisited its approach towards the states’ investment bureaus in a way to boost the State governments’ commitment to set enabling business climate and improve ease-of-doing-business thereby attracting more FDI.
The intensive promotional activities that are being carried out with state partners will be maintained to make the country a favorable destination of foreign business.
Working hand in glove with the States is of paramount importance to the success of the sector as the investors operate their businesses in the states though they are invited by the federal investment commission, he said.
Whilst manufacturing, agriculture, horticulture and service sectors have the lion’s share in luring FDI, the Commission is exerting its utmost effort to pay attention to all investment opportunities in the county.
As a result, a significant number of foreign companies have gone operational or set up joint venture with local firms, Mekonnen said.
He further explained that following the visits of the EIC’s officials, States’ commitment has been boosted.
They have become well motivated in the way they can promote their investment potentials; provide required support to the investors; implement the projects efficiently; create jobs for citizens and improve their livelihood; raise the nation’s forex earning via augmenting production and productivity and enhancing export tra de.
Investors, both foreigners and locals are motivated to engage in businesses of their choices as a result of the investment law amendment made by the government recently and the consecutive awareness creation discussions towards the newly issued law.
The amended investment law makes open some public businesses to the private sector. As a result, investors especially, foreigners are well informed on the current situation of the country’s investment movement and keen on to be part of it, Mekonnen said.
In line with this, the commission has also introduced a new strategy called aftercare a strategy that enables solve any challenge the investors encounter while running their business.
This will serve the investors to maintain their business here and become fruitful particularly in the future starting from this budget year, he added.
Besides, the commission is renovating itself with the capacity of human capital and office setup in the way it can attract and accommodate the investors via facilitating the investment climate as it is the key sector in transforming the nation to industrialization and the lives of citizens as well.
To this end, the Commission has launched a training program that lasts for seven months in collaboration with World Bank. Personnel of the federal investment commission along with all States and the two City Administrations will be benefited from the training, Mekonnen disclosed.
Mekonnen further noted that, as a reward for all these efforts, the country has secured 1.1 billion USD from Foreign Direct Investment (FDI) over the last five months of the current budget year.
This success is registered amid the challenges of power shortage or breakdown and inadequate foreign currency among others.
However, Mekonnen is optimistic about electric power-related challenge that it will be greatly solved with the accomplishment of the Ethiopian Grand Renaissance Dam (GERD).
Besides, the commission’s recently affirmed relation with the states and city administrations will boost the investment activities of the country.
States’ performance in attracting investment is also promising as information gained from some states indicates. Among the states on a good track in this regard is Afar. “Apart from the past 27 years that characterized the state with infrastructure problems, the investment activities, as an emerging State are in the right since three years ago,” said Said Ahaw, Deputy Commissioner of Afar State Investment Commission.
The institutional reform undertook from office to commission level, which is supported with material and human capital, is helping to create a conducive investment climate in the state, Said added.
Afar is mainly known for its minerals potential that include salt and gold. Many investors are operational in this sector. In addition, the State is conducive for agriculture and manufacturing industry at large.
Based on feasibility study, though it is the right of the investors to choose their favorite businesses, these three sectors are recommended to those who focus on export standard products as the State is located near Djibouti and Asab ports.
Said Ahaw further added that among the State’s investment potentials; mining, industry, construction, agriculture and tourism are the top rated ones in attracting investors. Particularly, several investors are engaged in mining and tourism.
Investors are also keen on engaging in lowland wheat production using irrigation which is the government’s focus area as a main instrument of hitting food self-sufficiency target.
As a result of this, during the first half of this budget year, 52 investors are engaged in agriculture, manufacturing, hospitality and construction sectors with a gross capital of 286,776,132 Birr.
These investment areas have provided 759 permanent and 1,468 temporary jobs for citizens. All together 385 investors have been operational in Afar State since 2015, he said.
Said Ahaw stated that the Afar regional state was privileged to host the National Investment Forum last year provided a golden chance to promote its potentials. This year again, it has organized an investment forum at the state level on which the EIC commissioner attended.
These opportunities coupled with extensive promotion works carried out through various media outlets and reliable peace and security have made the state a preferable investment destination.
According to Said regardless of these likely opportunities, there are remaining challenges related to infrastructure and power supply shortage remains a critical problem.
In collaboration with the federal government, the state is exerting its utmost effort to solve these problems aiming at boosting the investment inflow to Afar State.
The Ethiopian Herald February 23/2021
