- Domestic firms advised to ready to compete
ADDIS ABABA – The opening of key commercial areas such as import-export, retail and wholesale trade to foreign investors would hugely benefit the overall economy and entail dynamism, economic experts said.
Speaking to the Ethiopian Press Agency (EPA), the experts stated that the government’s move to open key commercial sectors, which were restricted to domestic investors, would bring immense opportunities to the national economy and facilitate holistic growth.
Accordingly, Haramaya University Economics Assistant Professor FirezerTilahun said that the opening of key import-export, retail and wholesale businesses to foreign actors is a great economic reform since it improves competitiveness and quality as well as contributes for the provision of better public service.
The academician also noted that the new measure paves the way for local and foreign firms to grow together and increase their competition and production.
The engagement of foreign investors in these sectors would enable the country to adopt new marketing systems and technologies and working systems as well as introduce customers with new products.
“Moreover, the foreign companies’ big work capital also has its own contribution in facilitating economic activities,”Firezer elaborated.
For Kotebe University Economics Department Lecturer and Researcher MuhdinMahammed, the opening of the previously- restricted sectors to foreign companies is an unparalleled move. The measure requires the execution of different activities to capitalize its benefits and to fill the prevailing gaps.
Though it is instrumental to reduce imports and augment the production of import substituting items, the initiative needs the balancing of the local and foreign investors’ operation.
“Earlier, few businesspersons controlled these sectors and the larger market and the situation has caused soaring inflation. In this regard, the move would bring positive competition among local and foreign investors and it would also benefit customers in the long run.”
Likewise, the measure would enable businesses to supply foreign products to Ethiopia’s market at an affordable price with better quality and it would be vital to job creation, technology transfer and others.
The expert, said; however, that the engagement of foreign investors would not only bring benefits, mentioning the possibility of kicking small businesses out of the market.
Foreign investors’ involvement in the local market would benefit the whole economic system. Hence, local companies should make the necessary preparations that would keep them competitive in the new dynamics, Muhdin emphasized.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD TUESDAY 30 APRIL 2024
