It is a foregone conclusion that bringing into being a fertile ground for Foreign Direct Invest (FDI) spearheads nation’s take off in all spheres of endeavor. Hence, inviting FDI pays in more ways than one as it is the salient or only option of countries struggling to break away from the fetters of poverty.
Needless to mention, the presence of infrastructural facilities lures FDI which in turn complements the government in the midwifery role of the much-in-demand facilities say facilities in mine extraction and also in roads, dams and the like. In other words, FDI and the birth of infrastructural facilities could cross-pollinate each other.
The bountiful resources the country is endowed with and the less expensive labor in the labor market here, among others, attract investors, while they create job opportunities taking off the unemployment’s load from the shoulder of the government.
FDI also bolsters export trade thereby augment nation’s hard currency fetching capacity. For a developing country like ours aspiring for affluence, FDI is a springboard for knowledge and technology transfer too. It helps to tap natural resources, which necessitates foreign skills, knowledge and technology.
To attract foreign direct investors the government has to facilitate enabling environment like tax holidays, custom service, fair exchange rate, banking service, industrial parks as well as access to land, water and energy.
Moreover, it assists in import substitution curtailing the outflow of hard currency. Attracting FDI is not a cakewalk. This in mind, the fact that with its limited resource Ethiopia has managed to attract a multitude of FDI its financial constraint notwithstanding is a laudatory performance.
Materializing road network, railroads, Airports, telecommunication webs, industrial parks among others, Ethiopia has succeeded in attracting several potential investors. In so doing, it has portrayed an economic growth that won appreciation world over.
What is more, practicing a one-stop-shop service procedure the country has taken the hassle out of FDI. Still, to take its service delivery to yet higher level of quality, the country has made a point probing into the custom, tax and long bureaucratic process to refine things. In this regard, forging various trade ties with countries like South Korea Ethiopia is endeavoring to straighten out knotty situations.
Grateful of Ethiopia’s once allegiance to South Korea in its time of pressure and not oblivious of the gesture, increasing the trade volume between the two countries and also Africa, South Korea is working to promote the influx of South Korean investors here. This is testified by the current South Korean Ambassador to Ethiopia. If some hurdles are averted companies like Samsung are more than willing to invest in Ethiopia. Not only South Korea, but also many countries are striking agreement with Ethiopia enthused by the aforementioned bent.
Ethiopia is also striving to get the ball of (African) Continental Free Trade Area fully going. To wholesome utilize the opportunity it has to step up its FDI’s attraction power. For this it has to turnaround service delivery and ward off logjams.
Drawing the attention of additional well-developed nations like China, playing quite a role in the thrust towards a better tomorrow, Ethiopia has to make its journey towards renaissance and prosperity a reality. Hence working hand-in-hand and solidifying our integrity and warranting the tranquility of the nation we Ethiopians have to get underdevelopment behind our back.
Our ambassadors abroad have to play a key role in introducing the gifts of the nation and the reform measures it has taken to render the investment climate salubrious or worth of a headfirst dive in investment, trade and diplomatic relation. Always a relation free from political ligatures attached to them worth the candle. Beefing up its muscle in FDI and spurring growth in the right direction also helps the nation to ward off undue interferences and negative influences from some self-seeking quarters.
The Ethiopian Herald June 4/2023
