Ethiopia Attracts Foreign Companies with projects worth 14.5 Billion Birr in 2017
Ethiopia and China started economic relations about 100 B.C when the Han dynasty of China and the Axumite empire of Ethiopia had trade exchanges. The two countries had made official relationship when they opened embassies in their respective capitals beginning from 1972. This relationship has reached a greater level over the past two decades.
Currently, the bilateral relations is multifaceted and keeping the economic growth of both countries promising. On the other hand, many Chinese companies are engaged in several development projects in Ethiopia. Road, railways, and telecommunications are among the major projects that the Chinese companies are involved in.
Chinese investors are being attracted to invest in Ethiopia from time to time. This year alone, Ethiopia has attracted companies with projects worth 14.5 Billion Birr. And Chinese companies are on the leading position in terms of capital and in manufacturing industry engagement followed by India and Turky. Over the past six months, 121 investment projects have been set operational and 45 are Chinese with a capital worth more than 3 billion Birr, According to Mekonen Hailu, Communication Directorate Director of the Ethiopian Investment Commission.
Observing the nation’s stability under the state of emergency, ten giant Chinese companies have also decided to invest in Ethiopia. From these ten, five of the companies are licensed to invest in textile and garment.
He said though most of the companies are interested in investing in textile, garment and leather products, there are still untapped major areas of opportunity like agriculture, livestock, manufacturing, tourism, mining, hydro power and social services.
Mekonen said since industrialization is going to take over the nation’s economy from agriculture to industry-led, the Ethiopian government has given due attention for the manufacturing sector. In this case, it provides special incentives for investor who are willing to be engaged in the sector. These incentives include export incentives, custom duty exemption, income tax holy days, and provision of land at competitive lease price.
Source: Ethiopian Herald