Different investment-related information sources indicate that healthiness of the Economic growth, workable investment policies, availability of finance from banks, technological developments, peace and stability, among others, are the major factors that influence investment in a given country. This time, most companies prefer investing in different countries [multinational] for the purpose of expanding their market and resource demand as major reason. Having a competitive company that runs in an international level is a great opportunity for the owner and its employees including countries that could attract its giant investment too.
Currently, the Foreign Direct Investment flow to Ethiopia reaches 3.75 billion USD, according to the World Investment report 2018. Ethiopian Investment Commission (EIC) is undertaking massive reforms in facilitating the investment sector. The organization is pleased to satisfy the need of investors at anytime and anywhere, EIC Public Relations Directorate Director Mekonnen Hailu told The Ethiopian Herald. As to him, the number of multinational investors joining investment in the country is increasing year after year. Following this, EIC updates its services to be assisted with latest investment technologies.
Apart from having abundant investment resources [land, industrial raw materials, water, human power, infrastructure, among other] the country is blessed with potential investment products [output] destination to attract wide market in Africa and the Middle East. Different international level investors are now discovering easily where, when and how to invest and what will profit them. So that, countries that embrace potential market and resource coupled with safe investment environment could win competitive investors to join investment.
Based on the above preconditions; economic advisors, analysts and sector experts recommend respective government for improvements in economic policies. For instance, Ethiopia announced a partial or full return of giant public enterprises to be run with private investors or in partnership. Prime Minister Abiy Ahmed (PhD) announced this remarkable decision last year. Thus, Ethiopian, Ethio telecom, Ethiopian Electric Corporation, among other public enterprises are expected to be entertained with local and foreign investors very soon.
This measure can be taken as the new direction to attract productive international investors and boost the current status of these enterprises. The Ethiopian Investment Commission (EIC) wins the ‘2017 United Nations Award’ for outstanding performance in targeted promotion, facilitation and execution of sustainable investment projects. During the award ceremony UNCTAD indicated that Ethiopia’s win comes out of the criteria in its investment promotion strategy effectiveness, positive results from the promotion and facilitation services and contribution of its FDI projects to the realization of the SDGs.
Currently, various internationally acclaimed manufacturing industry and other companies are eyeing joining investment in various Industrial Parks throughout the country. The investors are coming largely following the promising investment environment and various investment reforms being undertaken. And the coming of these internationally competitive companies demonstrates the effective implementation of investment policies and strategies in the country. This fiscal year EIC introduce a new mechanism iGuide Ethiopia [Investment guide] to access investment and related information to investors coming from abroad.
It provides online information with different languages. In addition to this, more than 152 foreign investment projects have already licensed to launch process investment in the country. More than 69 million USD foreign direct investment incomes have been generated from the operating industrial parks. While, 97,500 job opportunities have been created.About 76 % of this job opportunity directly benefits women. According to the Director, EIC provides various investment incentives to local and international investors.
This includes capital incentives, industrial raw material supply, construction and laboratory as well as transportation service provisions. Despite the above promising progresses some sort of instability here and there, lack of foreign exchange, processes with investment land holding and accessing electric power as well as information gap among investment service providers are the major challenges the sector is facing. In general the launch of I Guide Ethiopia; online investment information system, the coming of diversified investment inclusive industrial parks, the improving investment environment and due attention and close inspection and support from the government for investment will be encouraging news to materialize huge international investment in Ethiopia.
Addis Ababa University College of Business and Economics Department Head and Economic Expert Atnafu Gebremeskel (PhD) said that inspiring and facilitating investors’ inflow is fundamental in harnessing the potential of the business sector. Diversifying economic activities that the investors could join motivates to utilize abundant resources in the area and introduce new market products with different quality and quantity, he added. As to him, Ethiopia’s reliable trade and investment partnership with different potential countries and companies has hugely promoted its FDI inflow. In most sectors the engagement of China dominates the country’s untapped trade and investment sector.
Currently, the country reaps maximum trade relations with China. The participation and contribution of European Union (EU) countries, USA and other countries is also growing from time to time following a conducive working environment and various investment incentives here. New European and US companies are joining the investment sector with maximum efforts and create competitive job opportunities for professionals and huge number of youths, he noted.
The Ethiopian Herald Sunday Edition May 26/2019
BY TEWODROS KASSA
