BY DANIEL ALEMAYEHU
As many nations do, Ethiopia has taken every possible way in order to escape from the poverty that the nation has been struggling with. Having viable ways of doing business is one of the many doors to move to the next level.
To this end, the Government of Ethiopia has been crafting policies that are directly related to creating better environment to anyone who wishes to invest in the nation. In different scenarios, it is disclosed that Ethiopia has a policy that augments investment. The government has been trying to create more favorable condition to those who wants to invest in the nation.
Recently, Ethiopian Investment Commission has organized a three- days long investment forum ‘Invest Ethiopia 2023’ under the general theme of ‘Invest and Grow in Ethiopia – The Land of Attractive Investment Opportunities’. The commission has jointly organized the annual forum with Ministry of Foreign Affairs of Ethiopia and other responsible government sectors. Institutions such as Ethio- Telecom have also participated by sponsoring it.
Delivering the opening speech, Finance Minister, Ahmed Shide stated the major actions taken by the government in the past four years. As to him, the government has revised the nation’s Commercial Law and a new investment proclamation has put into implementation.
Making the private sector one of the active players in the economic activities of the nation, the government has passed a comprehensive privatization and liberalization programs. The objective of such moves is to create a favorable environment for investors those wish to work in the nation. As a result, the private sector will have the chance to participate more in the economic activities.
Talking about the nation’s opportunities, Ahmed mentioned that the nation has the access to the regional market through the African Continental Free Trade Area (AfCFTA). This platform makes the nation the central market for investment. With the famous Ethiopian Airlines, Ethiopia has become one of the most connected countries in relation to live and invest. With such opportunities, the nation is very much open to business and investment, and the current incumbent has taken every possible chance to increase investment attraction and retentions.
The minister said that Ethiopia was ranked among the top 5 FDI destinations in Africa in 2021, with FDI inflow increasing by 79 percent from 2.4 billion in 2020 to 4.3 billion in 2021, adding that the total FDI stock reached 31.6 billion USD the same year.
By the same token, Ethiopian Investment Commission Commissioner, Lelise Neme disclosed the nation’s key investment areas and the qualities that make the nation nominated regarding investment destination. Such forum gives the opportunity for invited investors to explore and take advantages of investment potentials that the nation offers.
Similarly, Finance State Minister Eyob Tekalign (PhD) also delivered a presentation on ‘The Economic Outlook for Ethiopia: A Story of a Rising Economy’. He said that the nation is on the verge of launching the second Homegrown Economic Forum after discussing with various government sectors including the National Bank of Ethiopia.
As the nation is one of the tourist destinations in the world, Tourism Minister, Nasise Chali, on her part, said that Ethiopia is ready to welcome investors around the world to take the chance to engage in the tourism sector as the country is the Land of Origins and the diplomatic hub of Africa.
The government also pushes the private sector to play the major role in the sector. The Minister has also mentioned the opportunity, resources, and government’s support when investors plan to invest in the sector. She pointed some of the unique tourist attractions the nation has.
Nasise said, “We call Ethiopia the land of origins, because, it is the cradle of humanity where humankind first walked on two legs.” In addition, the minister did not forget to mention the nation’s gifts, Abay (Blue Nile) and coffee to the world. There are plenty of tourist destinations that the nation is blessed regarding tourism sector.
To this regard, the government believes the sector as one of the major pillars for the nation’s economy given the sector priority in the country’s 10- year Development Plan. “The government has really given due attention to tourism due to the ample resources that we have in the sector,” the Minister said.
She noted, “We are counting on the private sector as key players to come and invest in the sector. When we plan, we made sure the necessary intervention, the necessary policy support, legal framework and all the needed things are in place.”
As Ethiopia is one of the diplomatic hubs in the world like Geneva and New York, the nation is a promising nation for tourism and over 10 million passengers fly with the Ethiopian Airlines annually which shows the opportunity it brings to the nation. In good truth, as the nation is as ancient as time, it has a number of cultural and historical resources to be visited. The nation has the power to be named as one of the naturally divers nations in the world. “We have lots of ethnic groups with their own language, cultural identity which can make Ethiopia one of the cultural mosaics,” Nasise added.
In a similar vein, investors that took part in the forum have also shared their opinions mentioning government’s action to create room for the private sector in the economy. Staying with a local media, one of the participants from Somaliland based Below Capital CEO- Ahmed Ali Mohamed said that the Easter Industrial Zone is huge and he was impressed by the layout after visiting the park.
Witnessing the advantages and potential that the industrial zone incorporates such as developed industry parks, cheap electricity and huge population that consume the products, he disclosed his interest in investing in manufacturing sector in Ethiopia in the future.
He boldly stated, “I have got so much knowledge and insight about the commitment and willingness of the Ethiopian government to open the economy,’’ adding that this is the best time to invest in Ethiopia. “If the Ethiopian economy opens up for the private sector, it will provide so much opportunity for local investors, Horn of Africa investors and global investors and so much opportunity for the young Ethiopian as well. So, it is good time to invest in Ethiopia.”
Ahmed also highlighted, “I was so fascinated because when I came in, I had little information about Ethiopia although we are neighbor (Somaliland), I didn’t have that much information. The three- day interactive meeting with higher officials and foreign investors were great opportunity.
I am so much energetic to move ahead with much initiative to invest in Ethiopia. It was absolutely one of the best conferences that I have honestly attended in the region and everywhere I have been too.” He also appreciated government’s move in opening up sectors like banks, telecom, mining, ICT, and manufacturing to foreign investors.
Likewise, Representing Agrorista Global Manufacturing Private Ltd from Sri Lanka, Wajira Darmadasa on his part, discussed his experience of visiting Ethiopia for the first time, “Before visiting this country, we had completely different mindset; however, after the investment forum, it has completely changed our mindset. Now, we see how good your country is to attract new investment.”
Mentioning Ethiopia is a good investors’ destination, the representative said that his company is working on food manufacturing sector and at this moment he is evaluating how his company can take advantage of such opportunities in the future.
Again, UK- based Umoja Company representative, Roza Abebe showed willingness to take part in agriculture sector and export quality products. She elucidated, “Everything is in Ethiopia. There are untapped resources in the country. What I understood from my recent visit to Ethiopia is, the government is telling us to provide everything. This is most encouraging and it is more than my expectation.” From her point of view, the government should give priority in quality control and promoting local products.
After conducting the three-day forum successfully, Ethiopian Investment Commission (EIC) has signed investment deal worth USD 1.64 billon with five different foreign companies. It was learnt that the investors plan to invest in manufacturing construction inputs, food, agriculture, wood and timber, and many other.
At the signing event, EIC Commissioner Lelise Neme mentioned the two- year long challenges that the nation faced. This time, the nation is attracting a number of investors. She also indicated that the government has been working on harmonizing investment modalities and legal frameworks to attract and support investors.
“From the very day of the forum, over 1,000 investors and business community members of 22 countries had been participating. The diplomatic community based in Addis Ababa have played due role in promoting Ethiopia’s investment potentials.”
Like many other African countries, Ethiopia has untapped potential with large human capital that investors can unlock and use. Concerned government entities and other investment sectors have shown their interest in supporting the forum to be held every year, Lelise said.
THE ETHIOPIAN HERALD THURSDAY 4 MAY 2023
