BY HIZKEL HAILU
Despite both spider and lizard are creatures of different types and feed on other small insects, the earlier can get its food easily through its webs, while the later spends more time to catch the prey once a day. The strategy the first predator applies is a good example for building a system and working in harmony is of paramount importance to become successful in the economic activity. Taking this fact as a spring board, if the private sector and the government work together for the realization of prosperous Ethiopia through a well-developed system and integrity, it will be possible to reap the fruit sooner than later.
Following the government’s unswerving ambition to work with the private sector, the participation as well as contribution of the local and foreign investors in Ethiopia’s economic maneuver is being increased from time to time. On the panel discussion that was arranged by Ethiopian Press Agency (EPA) last week in Dire Dawa, MIDROC Investment Group Head, Jamal Ahmed underscored that the current investors’ contribution to Ethiopia’s economic growth has been accelerated despite some challenges in the sector.
While presenting a paper on the contribution and challenges of the private sector in the manufacturing industry on the session “About Ethiopia” photo exhibition and panel discussion that EPA has organized in Dire Dawa, he said that the government should increase its support to local investors.
Despite the challenges that the investors are facing in the sector, local investors are playing irreplaceable role for the nation’s economic growth, Jemal described. “If the government can come up with much attention and support for the local investors, we will be on the right track to exploit the nation’s resource potential for good via exerting our utmost effort viewing its economic growth,” he noted.
Mentioning that the role of local investors is crucial for the sustainable development of a country, he suggested that priority should be given to local investors although foreign investors are also key components for the prevalence of better competition and experience sharing.
Highlighting the engagement of the private sector’s irreplaceable role in the socio-economic development of the nation, Jemal called for the equal treatment of local manufacturers with foreign businesses. “Forex shortage, malpractice, poor working culture and insufficient implementation of policies and strategies remain the major setbacks of the manufacturing industry and seek viable solutions,” he remarked.
According to him, the manufacturing industry is the main engine for sustainable development; so that the problems of the investors need to be identified and solved in order to utilize the potential of the sector.
He further stated that, the shortage of foreign exchange and its unfair utilization, weak working culture and inability to proper implementation of policies and guidelines to encourage the sector are the main problems of investors in the sector that needs to be addressed swiftly.
“We will not solve all our problems at once,” Jamal said, adding that the government should work closely with the investors to solve the problems. He further accentuated that they need to have a solid system which can easily integrate the private sector with the government for a magnetic success in the nation’s economy.
The movement called ‘Let Ethiopia Produce’ aiming at building the manufacturing sector’s capacity is a good will that enables the country to attract the foreign direct investment, and MIDROC is always ready to work with the government and other institutions to make a difference at national level. “Some shortcomings and gaps hindering the realization of private sector’s operation not to act as expected are witnessed though the government has been striving to encourage the investors.”
Responding to the private sector’s inquiries, Finance Minister, Ahimed Shide who conducted the panel discussion as a chair person said that the only way to solve the country’s foreign exchange deficit is to increase local production through building strong system in the country. As a result, the Minister pledged the panelists and all investors, on behalf of the government, to work in unison with the private sector.
The Minister further said that, the problem of foreign exchange supply raised by the investors can only be solved in a sustainable way if local production can be increased. To this end, the government is working prioritizing foreign exchange supply. However, as to Ahimed, it has been allowed that local investors have to exercise their rights of using the currency they have generated.
Moreover, enhancing local products and productivity is the instrument to ease the pressing forex in the manufacturing industry. Given the sector’s economic potential, the manufacturing industry has been given utmost priority within the nation’s homegrown economic policy, he said.
Emphasizing the private sector’s pivotal role for the growth of the manufacturing sector, Ahimed reiterated the government’s commitment to address the bottlenecks. It was stated that, the expansion of infrastructural services, ensuring the rule of law, improving foreign currency allocation and curbing maladministration are measures that the government has been executing to boost the performance of the manufacturing sector.
As the manufacturing industry is one of the most important sectors in the local economy and the engine of the country’s development, the government is working hard to support this sector. Noting that the sector is growing mainly with the participation of the private investor, he said that the government is expected to expand infrastructure, ensure the rule of law, increase foreign exchange supply and ease bureaucracy in the provision of public services.
“Both domestic and foreign investors have significant role for the national economic growth. Cognizant of the fact Ethiopia’s financial and technological capabilities are still limited; we need also to work with foreign investors. Therefore, we will further continue to support both,” he said.
Sharing other developed countries’ experience, Ahimed Shide further underscored that their first and foremost action to provide solution to the foreign exchange deficit is increasing production. As to him, lack of execution capacity on the part of the investors coupled with lack of commitment of the leadership to implement policies has prevented the sector from producing as much as expected.
Dire Dawa City Administration Mayor, Kedir Juhar on his part said that, his administration is fully committed to provide the necessary support for both local and foreign investors who want to be involved in the city’s untapped investment opportunities.
Speaking at the photo exhibition and panel discussion session arranged by the Ethiopian Press Agency and hosted by Dire Dawa City Administration recently, the Mayor stated that, the city has untapped investment opportunities especially, in agriculture, agro-processing, hospitality and manufacturing sectors among many others. The City Administration has been closely working with relevant stakeholders to create conducive business climate.
Dire Dawa is situated in a strategic location; 300 km away from the Port of Djibouti that could allow businesses to import and export goods easily and amicably. The railway that passes through the city is another contributing factor to boost investment that any investor can reach the Djibouti Port only within five to seven hours journey, the Mayor elaborated.
“Not only natural resources, but we do have skilled and disciplined labor force that can operate heavy industries efficiently,” he added. It was also indicated that the expansion of infrastructure in Dire Dawa has greatly contributed to the opening of new hotels, hospitals, bottled water manufacturing facilities and other firms in the manufacturing sector.
Preparations to support incoming investors have been completed though further initiatives are being explored. In this case, the City Administration has been working steadily to pull new investment with respect to the potential resources. In addition to the major Industrial Park, medium-sized facilities have been constructed by the effort of the City Administration, Kedir noted. In line with this, EPA’s photo exhibition and panel discussions will also take place in nine more cities across the nation, it was learnt.
The Ethiopian Herald Mat 31/2022
