The whole world has been witnessing the rapid economic growth of Ethiopia for over a decade. Indeed, several economists and international media outlets have extrapolated that Ethiopia will soon be one the largest economies in the continent of Africa as long as the country manages to keep its impressive and fast economic growth for the years to come.
Moreover, Ethiopia used to be a synonym with famine and war in the past, but this distorted and blemished images of Ethiopia have now completely been changed. Currently, Ethiopia is getting well known for being Africa’s fast- growing – non- oil economy.
Due to the nation’s remarkable economic achievements, sustainable peace as well as security, a number of foreign investors and multinational companies have been showing great interests to invest in various economic and social sectors than ever before. In fact, some
investors have already started doing business making use of the available attractive investment opportunities in the country.
Chinese shoe maker Hujian Group, Heineken and Unilever is but mention some of the largest and internationally renowned companies operating in Ethiopia.
Of course, Ethiopia is heavily investing on infrastructural development. For instance, railways and roads, which are believed to be strategically in the effort underway to provide reliable transport across the nation, are being constructed in integrated and timely manner by local and international contractors.
To provide cheap power, there are ongoing dam projects like the Grand Ethiopia Renaissance Dam that with the capacity of producing a total electric power on par with that of six nuclear power stations.
Obviously, the palpable fast economic growth in Ethiopia is bringing about industrial -centric societies. This by itself will create huge market for multinational companies like Coca Cola coupled with the ongoing fastest urbanization and the ever rising income levels of the present estimated growing population of 100million.
However, there are challenges that need to be overcome without any further ado with a view to attracting many more foreign investors and to make the nation an investment of hub as well. It is true that the nation has put its foreign investment policy clearly for many years.
Therefore, the government needs to inform foreign investors that this policy won’t block them from being beneficiaries of the other investment potentials of the country in organized and sustainable manner.
Many reforms have been underway to improve the existing business registration so that investors can secure their business licenses within a matter of few days as long as they fulfill the prerequisites to invest in this country. Hence, to further encourage investors to come and invest here, their requests need to be answered within hours or minutes through using latest technology.
Apparently, Ethiopia is currently attracting a huge number of international textile manufactures. Some of these manufactures have successfully set up their factories and hired local employees. Surprisingly, they are importing cotton despite the fact that the climate of Ethiopia is very suitable to grow cotton.
Thus, the nation needs to encourage manufactures to grow huge amount of cotton for their own consumption and exportation purpose using Eco-friendly pesticides and high-tech technologies.
The government has to keep up building industrial zones and make sure that they get into the intended purpose as well. The manufactures that are supposed to set up factories in the industrial zones need to be acquainted with the benefit from a tax ‘ holiday’ of’ up to 17 years.
In summing up, the nation needs to work harder in attracting many more foreign investors and promoting its investment potentials to the rest of the world.
The Ethiopian Herald July 9/2019
BY WASSIHUN B.
