BY DANIEL ALEMAYEHU
The continent of Africa, which was called as a ‘hopeless continent’ by the Economist Magazine a decade ago, has become rising in all courses of life. This continent converts as one of the best investment sites when one wants to invest. For its resources, most investors and even countries want to do business for better benefits.
Ethiopia, being one of the countries of the continent, attracts investment with lucrative incentives from the government. Attracted by its untouched natural resources, affordable and easily trainable human capital, rapid economic growth, and the strategic location in the East Africa, most investors prefer to invest in the country.
These investors who have shown interest in the sector include: Ethiopians, Ethiopian Diasporas, and foreigners. It is believed that Ethiopian investors are responsible to invest in their own country if preconditions are met. However, foreign investors come to the country if they believe that they can get better infrastructure, facilities, and efficient custom related issues when it is compared with other countries. Thus, aiming to attract more investors, Ethiopia is striving to provide these facilities in a better way.
Among the investors, local persons are very responsible for the country. However, this responsibility should not only be loaded on the shoulders of the citizens but, the government should also play the leading role in promoting the sector and facilitate the conditions that favor home land investors.
In countries like Ethiopia, with dense population and different regions with remarkably different natural resources, both federal and state governments should act on the provision of better infrastructure and creation of fertile ground for the investors to work in every corner of the country.
Being the second largest and populous region in Ethiopia, Amhara State is endowed with many natural and spiritual resources that investors can look forward investing their asset on. Aiming to benefit better from the sector, both the federal and state governments should work hand in glove to meet their goals toward investment.
In the past few years, with many incentives from the federal and the state governments, investors have been attracted to invest their asset in the region. According to Amhara Regional State Investment profile, some of the incentives from the regional government are: long run land lease which is up to 30 years, rent free urban and rural lands, small royalty fee for fish processing which is only one cent per a kilo, availability of airport, and others.
According to the State’s Public Relation Officer, Wubnesh Debie, during the past two years, the region has achieved beyond its plan. Almost all of the plans were achieved more than 100 percent in the time referred.
Adding, she said that due to regional direction to transfer land to the investors with low lease price, many investors have been attracted to work in the region. With the help of having airport in the capital, Bahir Dar, the region has become well- heeled for horticulture, especially for the flower industry.
She remarked that the regional government has been doing several activities to make the region better at infrastructure. As a result, the investment sector incorporates highest number of employees. Besides, even the investors have involved in the organization and construction of infrastructures in the region; the investors constructed roads and other things to make the region more suitable for investment.
As the region is the second largest in the country, people may wonder which part of the region is doing better. The Public Relation Officer explained that in Amhara region, two parts of the region are doing better even though the achievement varies from time to time. The eastern part of the region especially Northern Shewa corridor is getting better achievement. Debre Berhan and Kombolcha are the sites that are recording better in the industry sector. On the other hand, the western part of the region especially East and West Gojam are performing better on the agro- industry sector.
Following the inauguration of the two edible oil factories by the local investors, Worku Aytenew and Belayneh Kinde, the region has contributed more in substituting the imported palm oil with the local products. These factories also assist the region to connect the agricultural sector with the industry. Therefore, the eastern part of the region has done marvelous achievements on the industry sector, and the western part has performed better on the agro- industry. Wubnesh highlighted that the State’s government has been encouraging the local investors to invest in the region by creating fertile ground for investment so as to materialize the region’s development.
Wubnesh has also pinpointed the major challenges regarding the investment sector that most industries have complaints on. She said that the state has been doing better concerning peace and security. The state is relatively doing better in solving the problems emerged from its administrations. She said that the major challenge that the investment sector faces regularly is related with the electric power supply which is beyond the capacity of the state’s government.
Furthermore, Wubnesh said that in the former administration, TPLF made things harder for the state’s government to work aggressively on its own development, but nowadays, things are changing for good. At least, the bureaucracy is getting better. However, this does not mean that all the investment sites get electric power but this time, it is in a good momentum.
As to her, even though there are challenges and obstacles in the state regarding investment promotion, the state’s government has been exerting its maximum effort to make the region more suitable for local and foreign investors.
Having showed progress in the investment sector, Amhara State government has planned to work hard in the future to augment the investment specially focusing on promoting the industry sector. “The industry sector is the key not only for the Amhara State, but also for the country,” Wubnesh remarked. She further explained that the industry sector has plenty of opportunities for the people of the region. For instance, industries in Debre Berhan and Kombolcha are generating high amount of foreign currency for the country. The major problem the country is striving to address is providing job for the ever growing job seekers. Therefore, investment, especially the manufacturing industry sector is the preliminary way to create job opportunities for the young people of the country as well as the region.
Investing specially on the manufacturing industry will enable to produce lots of items within a small place. Industries are place- wise. In addition, the state government has planned to intensify industry parks throughout the region. For instance, the state’s government placed a foundation stone in Gonder to build an industry park. Here, the major challenge about industry parks is until they are operational. Once they are operational, it is inevitable that they are productive. United, the people and the government of Amhara State will entertain the progress in the coming years, Wubnesh remarked.
The Ethiopian Herald July 31/2021
