Two Chinese companies have concluded a deal with Ethiopian government to invest a total of $2 billion to process Ethiopia’s bamboo and produce paper products for supplying both local and export market in investiment.
Tyson Group and Green Diamond will be engaged in processing of bamboo in Benishangul Gumz national states of Ethiopia and produce paper products. According to Abebe Abebayehu, Investment Commissioner of Ethiopia investment Commission who, told to media of the country, the deal with the China investor companies, accompanying Prime Minister Abiy Ahmed of Ethiopia to attend the One Belt and Road conference of the second biggest economy of the world.
Including the $1.8 billion State Grid Corporation, which among others will be engaged in supplying electricity to the 16 industry parks in Ethiopia, with five Chinese companies and Ethiopian Investment Commission have signed a total of $4 billion Chinese foreign direct investment at the sidelines of One Belt and Road conference in Beijing to rise the investment and its share of growing Ethiopia.
When the investment of Tyson Group and Green Diamond will be fully implemented it is going to will create huge job opportunities for the people in investment operating national states of Benishangul Gumz and others which has huge areas covered with bamboo, according to Abebe.
According to Abebe, that will also enable Ethiopia to cut hard currency spending to import paper products. In addition to import substitution, the company’s will also export its products and own generate hard currency for Ethiopia,
According to Abebe, who stated that the planned annual production capacity of the company will be one million tonnes of paper products. This can increase the import one in covering the local consumption.
Reports show that Ethiopia, which spends hundreds of millions of dollars importing many kinds of bamboo products including furniture and toothpicks, has over a million hectares of its land covered with bamboo forest that live for long out of service for source country.
The remaining Chinese foreign direct investment to Ethiopia announced this week include, another Chinese company, CGOC, which has agreed to open processing of cattle and sheep meat in Awash Fentale area of Ethiopia investing $215 million.
While medical equipment’s manufacturing company has also agreed to come to Ethiopia investing $75 million in a manufacturing plant in Kilinto Industrial Park in Addis Ababa told for The Ethiopian Herald. He also stated that another Chinese company has also agreed to invest in printing industry in Ethiopia. This can widen the print media and will have huge value on quality and production cooptation for locals to work aggressively.
The Ethiopian Herald May 04/ 2011
BY MUSSA MUHAMMED
