The historical, cultural and social ties between Ethiopia and Sudan are becoming robust in a way that proves vital for further cementing people-to-people relations and bolstering trade and industry, according to Shiferaw Jarso, Ethiopian Ambassador to Sudan.
In an exclusive interview with The Ethiopian Herald, the Ambassador said that Ethiopian and Sudanese investors have a massive opportunity to exploit the trade and investment prospects of both countries.
‘‘We have partaken in a forum organized by Ethio-Sudan private investors to utilize trade and investment potentials of both nations. There is an encouraging trend from the Sudanese side regarding investing in Ethiopia,’’ he said, adding, ‘‘the trade balance is 4 percent in favor of Ethiopia. But we have to work towards inspiring Ethiopian investors to aggressively engage in various investment endeavors of Sudan.’’
Sudanese investors have shown interest to involve in agriculture, manufacturing and other sectors be it in private or joint ventures. The Ethiopian government is ready to take any possible hassle out of their way, according to the Ambassador.
‘‘Ethiopia has an immense agriculture potential. In cognizance of this fact, Sudanese investors express their interest to involve in dairy industry. Besides, they are ready to partake in the already established industry parks,’’ Amb. Shiferaw highlights.
Most of Ethiopia’s export items to Sudan are agricultural products like beans, live animals, fruits and vegetables which contribute 70.7 percent of the export in the course of the last ten years. However, the Ambassador confirmed that there are illegal trade scenarios in recent years between the two countries and this needs attention from both governments.
He insists that the trade in border areas would be handled and allowed to flourish with in legal ways. Towns like Humera and Metema will be trade hubs on the Ethiopian side.
Regarding utilizing Port Sudan, Ambassador Shiferaw said that both governments have planned to construct roads and railways which will connect Port Sudan and Ethiopia. This will hugely enhance the trade and investment prospects of the two nations.
For his part, Lageed Abdulkerim Hassan, President of Sudanese Business Men Association in Ethiopia said that, over the last two decades 408 Sudanese investors have been engaged in agriculture, industry, tourism, medications, among other sectors.
Though there is an enormous investment potential in Sudan, Ethiopian investors are reluctant to invest in Sudan. This trend should be improved, Hassan adds.
‘‘When we see the number of investors in Sudan, we notice that it is insignificant. We urge such investors to come to Sudan and invest without facing any bureaucratic red tape. The current political situation in Sudan will not affect the deep-rooted relationship of the two countries. Moreover, we need the Ethiopian government to press ahead with its support for Sudanese investors,’’ the president notes.
As far as trade is concerned, Hassan is hopeful that the trade interaction will be undertaken in a legal and transparent way so as to render both countries beneficial. Kalid Ali Karamallah came to Ethiopia 15 years ago to do business. Now, he is working in tourism and business consultancy sectors. As to him, the business environment in Ethiopia is conducive.
‘‘Since I have lived for 15 years in your country, I consider Ethiopia as my second country. I have been engaged in tour operating agency and consultancy firm. I have taken license for an initial exercise in fishing sector in Gambella state,’’ he reaffirms. He continues, ‘‘the weather, business atmosphere, labor force and incentive are appealing. Inexpensive electricity and abundant raw materials are also among the favorable factors which could motivate investors to come to Ethiopia.’’
Karamallah states that he has been striving to promote the Ethiopian tourism sector and the game is worth the candle. ‘‘There is huge untapped tourism potential in Ethiopia. Our company is playing its part in promoting and developing it. Our customers, who come from different parts of the world especially from Middle Eastern nations, are visiting Ethiopia. This motivates us to contribute more,’’ according to him.
He did not hide that lack of a banking system that could provide them efficient service to transfer their money.This should be addressed and sufficient land should be allocated for investors. Another investor named Khalid Eltayeb, Managing Director of Onyx for Engineering Integrated Solutions expresses optimism to expand his business utilizing the breath of fresh air witnessed in Ethiopia following the political change.
‘‘Nowadays, there is optimism in Ethiopia. The political reform would enhance foreign trade and investment. Hence, we Sudanese will be advantageous by investing in Ethiopia. We want to diversify our business to other sectors,’’ he notes.
Eltayeb lauds the incentives being offered by the Ethiopian government as an important means to lure investors. He urges the government to step up its support than ever before.
The total trade turnover between Ethiopia and Sudan was close to 82.6 million USD in 2006.It has reached to 137.3 million in 2017. This shows increasing growth rate of 66.2 percent, according to the Ethiopian Chamber of Commerce and Sectoral Associations.
The Ethiopian Herald, June 2/2019
BY TSEGAY HAGOS
