Chinese investment continue to grow in Ethiopia

Chinese investment in Ethiopia is picking up speed despite the current State of Emergency in Ethiopia. It has built on the continued wide-ranging cooperative relations between Ethiopia and China during the first six months of the current Ethiopian budget year. This is a result of an investment promotion strategy prioritizing the participation of ‘anchor’ companies in Ethiopia’s manufacturing sector. Their participation at a greater level, quality and substance in the manufacturing sector reinforces the vision, aspirations and needs of the country in its aims to enter the stage of an economic takeoff and achieve economic modernization in the shortest possible time. Indeed, the growing presence of ‘anchor’ companies from China reflects the fact that the economic relationship gains momentum from the continued growth of mutual trust in governmental and political areas, and the frequent high-level exchanges, which are becoming   a central element in Ethio-Chinese friendship and relationship.

The Commissioner for the Ethiopian Investment Agency, Fitsum Arega, said on Monday (February 13), that the presence of Chinese enterprises was growing in Ethiopia due to the country’s sound investment strategy, deployed to attract ‘anchor’ companies. This was in addition to the favorable investment opportunities given to these enterprises. This growing interest and presence of Chinese investment was the result of specific Ethiopian investment promotion activity over the last six-months of the budget year, giving special attention to attracting ‘anchor’ enterprises. This underlined the importance and value of the participation of ‘anchor’ companies in the manufacturing sector, the Commissioner emphasized.

The Commissioner also went on to specify that ten giant ‘anchor’ companies from the People’s Republic of China had recently decided to invest in Ethiopia. He welcomed the interest and commitment shown by these companies, noting that half of them were licensed in the textile and garment manufacturing industries. He added that that the decision taken by these companies to invest in Ethiopia clearly showed that the country had continued to become a favorable investment destination for ‘anchor’ companies. This was as a result of the government’s investment promotion blueprint which concentrated on mainstream ‘anchor’ companies because of their huge contribution to the creation of more jobs and the sharing of mutual benefits.

Commissioner Fitsum said this investment promotion strategy would enable the country to attract further Foreign Direct Investment that could be changed into reality and benefit the country through job creation as well as revenue earnings. The strategic focus was now pivoted towards attracting ‘anchor’ companies, and was aimed at meeting the targets of both the companies and the country. The Commission in adopting this strategy had changed its way of doing business including altering its methods of attracting and licensing projects. Priority was now placed on those enterprises with a high profile. In addition to the new ways of doing business in terms of licensing, the strategy also prioritized attracting and licensing companies which were action-oriented and practical, with real results impacting the development infrastructure of the country. This has helped Ethiopia to attract the 10 giant Chinese companies. Jiangsu Sunshine Group, one of these companies which has decided to invest in textile and garment manufacturing, is engaged in a wide range of areas – wool textiles and garments, biological pharmacy, real estate, energy, thermal electricity, IT industry, and other businesses in China and internationally. It has decided to invest in Ethiopia with close to US1 billion.

The peace and stability which continue to prevail in the country and its ongoing infrastructure development, trainable workforce with competitive wages and a fast growing economy coupled with strong support from the government and favorable investment climate are the driving forces encouraging the companies to invest in Ethiopia. Commissioner Fitsum said all this meant that Ethiopia had still managed to attract projects worth US$1.2 billion during the first six months of the financial year, although this represented a fall over the previous six months. China was now the leading country investment in Ethiopia both in terms of capital and engagement in manufacturing industry, while India comes next during the first half year.

 

Source: MoFA-Week in the Horn

Ethiopia continues to attract foreign investment

Ethiopian Investment Commission

The Ethiopian Investment Commission says Ethiopia has managed to attract anchor companies during the first six months of the current Ethiopian budget year (2016-2017) despite being under a state of emergency.

Commissioner Fitsum Arega told the Ethiopian News Agency that ten major Chinese companies have decided to invest in Ethiopia, half of them licensed in textile and garment manufacturing industries. They include Jiangsu Sunshine Group which engages in wool textiles and garments, biological pharmacy, real estate, energy, thermal electricity, IT industry, and others businesses in China and internationally, and has decided to invest in Ethiopia with close to US$1 billion.

The Commissioner said this decision clearly showed Ethiopia remained a favorable investment destination for anchor companies, with China the leading country in terms of capital and engagement in manufacturing industry, and India second during the first half year.

He said the Government’s ongoing direction was not focusing on increasing the number of participants coming as investors but rather aiming to attract “giant, effective companies which could meet the targets of both the company and the country”.

The Commission had, therefore, changed its way of licensing projects, giving priority to those companies with a high profile and which would change the projects into action.

He underlined that the peace and stability which continued to prevail in the country, ongoing infrastructure development including railway, road and energy developments were among the attractions.

Other factors were a trainable workforce, competitive wages, a fast growing economy, strong government support from the government, and a favorable investment climate.

 

source: MoFA

Prime Minister Hailemariam Dessalegn meets President Abdel fattah El-Sisi

Prime Minister Hailemariam Dessalegn met President El-Sisi today (Monday 30th January 2017) in Addis Ababa at the margins of the 28th Ordinary Session of the Assembly of Heads of State and Government of the African Union.
The leaders discussed on the bilateral, regional and international issues of mutual concern. In a joint statement issued after the meeting it was stated that both leaders recognized the paramount importance of enhancing their bilateral relations to capitalize on the achievements accomplished thus far at leadership and institutional levels, and to enhance mutual confidence. 

The leaders stressed the importance of widening and deepening the scope of cooperation in various areas, including political, security, and economic fields. 

On the way forward, both leaders agreed to continue to work together to enhance this relationship and to prevent any situational that could undermine its brotherly and strategic nature. 

Concerning GERD, both leaders indicated that they are closely following the tripartite technical talks on GERD and affirmed their commitment to the prevailing cooperative spirit. 

The leaders stressed the need to encourage closer communication and continuous consultation at the leadership and at various institutional levels on all aspects of bilateral relations, as well as on regional and international issues of mutual concern. 

They also highlighted the need to boost people to people relations in order to enhance mutual public confidence. Furthermore, they emphasized the important role to be played by the media. 

Both leaders agreed on the need to maintain a regular exchange of visits at different levels. In this regard, Prime Minister Haimemariam accepted an invitation from President El-Sisi to visit Egypt in the near future.
Source: MoFA

Lonely Planet: Ethiopia joins the esteemed list of tourist destinations for 2017

Lonely Planet, the largest travel guide-book publisher, named Ethiopia among the top ten 2017 world tourist destinations. The travel publisher added a vivid depiction of the country’s breathtaking attractions and advised tourists to trek in the Semien Mountains “to watch wildlife that roams nowhere else on Earth”, climb to a church carved into a remote cliff face in Tigray or boat across “the serene waters of Lake Tana to visit an age-old monastery.” Ethiopia was the only African nation to make it through the esteemed list and join Canada, Colombia, Finland, Dominica, Nepal, Bermuda, Mongolia, Oman and Myanmar. Ethiopia, the home of ancient African civilizations, the origin of human kind, and the land of literatures which passed the trail of the millenniums, the house of people with untapped and well-off cultural experiences is no surprise to be found on such lists much of the time.

Source: MoFA