ADDIS ABABA – The relative geographic location of Ethiopia, which situates the country at the center of the four corners of the globe, is promising economic advantages to make it investments hub says expert.
On top of its strategic location, the country is also working strenuously to promote its rich investment potential to attract more foreign direct investment, according to Ethiopian Investment Commission (EIC).
Dr. GutuTeso, an Economist told The Ethiopian Herald that, the location of Ethiopia is at the center of the East-West and North-South hemisphere. This means its location is very close to Europe, Middle East, Americas and the Fareast.
It is easy for foreigners from across the globe to use Ethiopian Airlines, which is the biggest national carrier in the continent and globally, is also another opportunity for the country to give high focus to the sector.
Now Africans are further increasing their opportunity to further attract FDI by signing different regional and continental agreements. The African Continental Free Trade Agreement (AfCFTA) was signed into law in May and allows 52 African countries to buy and sell goods without tariffs, which will make them less expensive and therefore more appealing to African consumers.
Ethiopian Investment Commission (EIC) said that, effective promotion and participation on different business activity globally is vital to promote more our investment potentials.
Mekonin Hailu Public Relation Director with the commission told The Ethiopian Herald that, Ethiopia has immense natural resources which are capable of attracting investments and it needs effective promotion. To do so the commission launched online registration service for international investors in English and Chinese mandarin language.
Dr. Gutu Tesso Children’s Fund of Canada Country Director and Economist told that, the relative geographic location of Ethiopia, which situates the country at the center of the four corners of the globe, is promising economic advantages. This means its location is very close to Europe, Middle East, Americas and the Fareast he noted.
The Ethiopian government on December launched a national initiative that aimed to improve the investment climate by spurring opportunities for foreign businesses.The national initiative, which aimed at improving investment climate, was launched by Prime Minister Ahmed, who noted Ethiopia’s investment climate as underperforming and now as report indicated Ethiopia is on the right track.
On the other hand Ethiopian industrial parks play vital role in attracting investment, creating jobs , promoting export, facilitating technology transfer and promoting industrial development and structural transformation.
Mekonin stated that Ethiopia is among the latest countries to establish industrial parks. As a late comer, Ethiopia can take many valuable lessons from other countries.
Ethiopia is already one of the few real investment destinations in Africa and can score with industrial parks. Ethiopia shines with its economic policy as the industry and service sectors are making steady progress, he stressed.
The United Nations Conference on Trade and Development (UNCTAD) report stated that Ethiopia is the top FDI recipient in Eastern Africa and 5th among the largest FDI destination in the continent and Ethiopia brought in $3.3 FDI and was the top destination in East Africa.
According to the report, FDI inflow in Ethiopia during 2018 was 3.3 billion USD which is top in east Africa. As number of industrial parks established attracted greater amount of FDI inflow. Ethiopia attracted new FDI in manufacturing, which would create opportunities for local SMEs to link to global supply chains.
The commission is discharging its responsibility in promoting the investment potentials of the country and facilitating situations for investors, Mekonin noted.
The Ethiopian Herald, June 29/2019
BY HAILE DEMEKE
