ADDIS ABABA – The ongoing economic reform is enabling the country to attract more foreign direct investment (FDI), said the Ethiopian Investment Commission (EIC).
Mekonnen Hailu, Director of Public Relations with EIC told The Ethiopian Herald said multinational companies such as Eagle Hills, Volkswagen and others have shown keen interest to invest in the country. “As some of they have already signed agreements to with the government, it will further encourage others to come and invest here,” he said.
Particularly, the ongoing amendment of the investment law is targeting liberalization so that the involvement of the private sector in the economy improves. In addition, the trade and other laws are also being amended to improve the country’s status in terms of the ease of doing business.
The economic reform mainly targets to achieve economic liberalization, put in place modern working systems and enable the country become competitive in the international arena, Mekonnen stated Having a 40 percent share in East Africa, Ethiopia is 5th in terms of attracting FDI in Africa.
On Tuesday, Prime Minister Dr. Abiy Ahmed and members of the ‘Doing Business’ steering committee evaluated the medium and long term goals set to improve Ethiopia’s ease of doing business ranking.
With a vision of placing Ethiopia among the top 100 Ease of Doing Business ranking countries by 2021, the committee led by the Prime Minister, comprising key government entities, has undertaken key reforms over the past few months towards creating a conducive business environment. For instance, eight new laws have been re-enacted to improve investment and job creation.
PM Abiy said that institutional reforms to build the requisite implementation capacity and creating public awareness on the new ways of doing business will be a key component in the medium to long term. Most of the plans to be implemented in the short term have been accomplished.
He also announced that a new national level committee will soon be launched to steer progress in jobs creation and investments over the course of the 2019/20, in synchronicity with the ‘Doing Business’ committee.
Creating an enabling business environment for private sector investments is a critical pillar for creating 3 million jobs in the New Year, he added.
Ease of Doing Business initiative was launched last December to improve Ethiopia’s business and investment climate by PM Dr. Abiy.
In the last ten months, the country has attracted 2.8 billion USD FDI and ranked 159 out of 190 in ease of doing business.
The Ethiopian Herald July 25/2019
BY TSEGAYE TILAHUN
