Multiple international companies are showing interest to invest in Ethiopia. Of these, Chinese companies are the major ones that have been extensively investing in various areas such as infrastructure, power, construction, textile and garment, manufacturing and the likes.
It is true that China has been widely taking part in the growing investment activities in Ethiopia. Since its robust diplomatic tie with Ethiopia, China has been playing a visible role in the development and industrialization process of Ethiopia through enhancing and expanding its foreign direct investment.
Recently, the Chinese Embassy organized a media open-tour to the Chinese built railway and investments in Adama Industrial Park. On the occasion, Chinese Ambassador to Ethiopia Tan Jian said China is to realize knowledge and technology transfer to Ethiopian experts.
Industrial park development and expansion is a key instrument for attracting investment, promoting technology transfer, promoting export, generating employment and achieving economic transformation. Hence, the newly built industrial parks in Ethiopia have been facilitating the country’s industrialization, the Ambassador said.
Hanna Arayaselassie, Deputy Commissioner Industrial Park Division said that China has been Ethiopia’s largest source of FDI for years. And the Chinese officials have made strong and successful impacts in convincing Chinese investors to invest in Ethiopia particularly in the textile and apparel sectors. And China has also paved the way for other countries’ investors to come and invest in Ethiopia.
Presently, Sunshine Wool Textile PLC exports over 10 million USD worth annually. After the completion of phase one, the annual export value of the company is expected to reach 50 million USD. All products are exported to Europe and the US according to the report.
The company has set to invest 980 million USD in two phases. Accordingly, setting to allocate 350 million USD in phase one, some 100 million USD has been invested until now. The company has over2,000 Ethiopian employees and upon completion of phase one, 7,000 job opportunities will be created.
Antex Textile PLC, another Chinese company established in 2017 at Adama Industrial Park plans to invest 150 Million USD within five years. Of which, 20 million USD has already been invested.
Presently, over 3,000 workers are employed in the company and once the company starts full operation, it will create about 20,000 job opportunities for Ethiopians.
As the same time, Ethio-Djibouti Railway has secured more than 20 million USD from its freight and passenger train services over the past eight months.
Ambassador Tan Jian said that the railway is very essential for landlocked as it transports the majority of the country’s imports and exports.
The 750 kilometers Ethio-Djibouti Standard Gauge Railway, started operation on January 1, 2018, and is accelerating its impact on the economy. It has created a convenient transportation corridor for the import and export goods of Ethiopia.
Stating that 9 industrial parks out of 15 are along the railway line, Ambassador Jian noted: “This is not just a line it is a corridor and we do believe that this corridor can be game-changer for economic development.”
“We see this railway not only as a transportation line. It is the artery; it is the lifeline and the economic corridor. This railway is related to Ethiopia’s industrialization,” he added.
EDR Director-General, Engineer Tilahun Sarka said that the past year was promising as the railway managed to move 800 trains. “We earned revenue of around 35 million USD.”
Currently, there are 900 Ethiopian and 250 Djiboutian employees at the railway.
The Ethiopian Herald August 15, 2019
BY MULATU BELACHEW
