The Amhara region has opened a coordination office in Addis Ababa to create a favorable environment for investment, which is helping the region’s investment expand, according to the region’s investment sector data.
It has been five years since the Amhara Regional Industry and Investment Bureau opened its coordination office in Addis Ababa. In addition to the main office in the region, the office is developing new procedures to facilitate its work and to efficiently handle the needs and requests of investors.
The coordination office is working extensively on providing clear, up-to-date and comprehensive information to developers in order to further support the flow of investment to the region and to organize sufficient information about the region’s investment options.
Yayeh Addis, Head of the Addis Ababa Investment Coordination Office of the Amhara Regional Industry and Investment Office, gave an explanation to Ethiopian Press Agency (EPA) about the activities being carried out by the office to increase the attraction of investment in the region; about the results obtained from the work done; and about the good opportunities of the sector, as well as about the current and ongoing challenges and their solutions.
The significance of launching the office
“This year alone, about three thousand people have come to our office and received information,” Yayeh said. Among them, about 600 indicated that they started working after consultation based on the project they presented. They are deployed to different zones of the region. About 140 have completed construction and entered production. The region is focusing on foreign investment and getting high-potential developers to work.
According to his explanation, Foreign Direct Investment (FDI) is in good condition. More than 80 of them have gone into investment. The investment sectors they are engaged in are large factories, vegetables and fruits, metallurgy, cement and various other fields. Many Chinese and Ethiopians have been employed in the Joint Venture. One of the biggest tasks is to make local and foreign developers work together. For this, awareness creation on legal issues is underway and those who have come to work are making a big difference.
As a result of capital shortage in the country, someone who comes with equipment and capital from abroad is accompanied with local investor to empower the later. This will also provide capacity and technology transfer to local investors. Extensive works have been done in this regard. In the western part of the region, investors are widely involved in agriculture.
The other is the mineral wealth that is currently making the region a land of opportunity. Large deposits of minerals have been found in the region. In particular, granite, marble, cement, ceramics, silk, and glass factory minerals are in better demand and have been put into operation quickly. In the textile sector, many foreign developers are entering industrial parks. Good results are also being achieved in construction, food and beverage, and agro processing.
Actual projects
In addition to those under the Addis Ababa Coordination Office, many changes are being registered in the region. There are many developers who go to the region with different options and their own organization. For example, this year alone, 730 projects have been entered into the city of Debreberhan. Yayeh pointed out that 600 projects have been proposed in other areas of the North Showa zone at the skirts of Debreberhan city.
Many investors are engaged in the zone Lemi, Chacha, Tulufa, Ararti and Shewarobit. This indicates that it is a high flow area. For this, the role of the coordination office is important. Previously, this eastern part of the region did not receive investment attention. But it has gained a lot of attention these days.
Extensive work has been done to attract investors to war-torn areas. In general, it is the time when huge projects such as the Lemi National Cement Joint Stock Company industrial complex, which will start production next year, are realized.
Change in farmers’ life
A big change is coming in these areas. Many are entering modern life. For example, three thousand people are currently employed in the industrial complex area of Lemi National Cement Company. It has even reached the point of losing a day laborer in this area.
Modern cities are being built with the compensation received by the farmers. Infrastructures are also being completed in this regard. It has brought an opportunity for other investments to be made in this area on a large scale.
There are many who want to engage in the service sector. License is being sought to build large lodges and five-star hotels in this area. Modern agriculture is also expanding in the area along with technology transfer. The landscape is interesting, so if it is converted into tourism, it will make a big difference. In general, it is becoming a zone of hope and industry. Even the farmers are getting knowledge from the Chinese and other foreigners.
Journey to the manufacturing industry
At present, both domestic and foreign investors are entering into manufacturing rather than engaging in services in the region. There are a number of cases that can be seen as an opportunity for this. For example, the change of the country’s investment policy; the presence of good incentives and strong workforce along with high market potential in the country are also mentioned as positive events. Ethiopia’s proximity the Middle East attracts strategic attention.
Implications of huge projects
According to Yayeh, in the Amhara region as well as in Ethiopia, the issue that causes sleeplessness is unemployment. The source of conflict is the division of small resources and lack of work. Therefore, the arrival of the first investments will create employment opportunities for many citizens. If job opportunities are created, then peace will follow. This shows that the public really wants the investment.
Investment is peace in itself; loves peace; the society gets income; Cities flourish; their tax revenue will increase; new technologies will come; new ideas and the creation of new cities will come with it. Many infrastructures are also being completed due to these investments. The high activity in Aretti area can be viewed from this point of view.
The arrival of these large investments is significant in debunking international campaigns disseminated by anti-Ethiopia elements. Especially if foreign investors with great potential are making Ethiopia an investment destination, there is a greater chance of changing negative perceptions while maintaining their ability to attract others.
From quantity to quality
In the past, a lot of work was done to facilitate and mediate the conditions for investors to come and develop in the region. Effective works have been done in promoting “from quantity to quality” approach. Investors have entered the region in large numbers and started developing swiftly.
Great movement was created under the “Ethiopia Tamirt” program and experience was gathered in the development of investment in the region. Those who have fenced off land during the fiscal year have been put to work under this program as a result of good monitoring and support.
During the fiscal year, new minerals’ discoveries were also made in the region. For example, gypsum, silica, granite, marble, etc. were prominently found in the western zone of the region and the Nile Valley. It is the year in which the potential investors in the region have invested extensively in agriculture and industrial inputs have been produced in abundance. In particular, soybeans were produced in large quantities. Big factories have also started operations in this fiscal year. Industries that were in the war zone were repaired and mostly started production. It is a year of promising results.
Challenges
Antidevelopment elements are appeared to harass the developers using the current national situation as an opportunity. Extrajudicial checking of investors’ property and stopping of vehicles are also common. Because of this illicit activity, the products that should be exported to foreign markets are getting spoiled on the way.
The unstable situation not only in the Amhara region but also in other areas is testing investors moving to the region. This phenomenon is also victimizing local investors. Therefore, the absence of peace is becoming a serious challenge. Seeing this situation, foreign investors are also attracted to other neighboring countries.
Therefore, there must be a system to judge this as a government. It is commendable however, that investors are moving in the region at this level despite facing many problems. Lack of foreign exchange and capital is another challenge. Electricity supply has also become a bottleneck for investment. In general, inadequacy of infrastructure and lack of efficient service are causing serious problems. Despite these problems, he said, there are currently promising investment activities in the region.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD WEDNESDAY 2 AUGUST 2023
