This week has seen the coming of investment groups from Pakistan and Russia among others. Considering the attractive factors the country is endowed with, it is hoped that many more will come in the coming weeks and months. The commission should build up on the achievements so far to witness even more flow of Foreign Direct Investment (FDI).
Ethiopia and Pakistan enjoy decades of strong bilateral relations. Ethiopia is one of the destinations of Pakistan’s industrial products. Pakistan also plays a big role in the export market of Ethiopia. Ethiopian Airlines flies to its commercial capital, Karachi for decades. The other country that sent its investors group this week is Russia. In addition to the strong multifaceted ties between Ethiopia and Russia, investment in the manufacturing industries of Ethiopia is likely to be a fruitful area of collaboration.
According to Industrial Parks Development Corporation, Representatives of various Russian companies interested in manufacturing in industrial parks have paid a visit to the Bole Lemi and Kilinto Industrial Parks. Pakistan and Russia are but some of the many countries or companies that have a strong desire to invest in Ethiopia provide the strong potential the country has and the favorable condition it created. In spite of the harms incurred by the instability in the northern part of the country during the last two years, Ethiopia still thrives to be a pearl in the eyes of potential investors from various corners of the world.
Indeed Ethiopia has many strong factors that make it one of the most preferable destinations of FDI in the continent as well as in the world. Its ever growing economy is one of the main reasons that play crucial role in drawing the attention of the FDI sources. With its population that closes to more than 115 million, Ethiopia stands the second most populous nation in the Sub Saharan Africa region. With it comes the wide ranging local market potential for the outputs of the manufacturing industries which the foreign companies are showing interest to invest on. On top of that majority of the above mentioned population is constituted by young and trainable working age people who can provide labor to the investors on affordable cost.
Clean and affordable source of energy is the other decisive element that is given priority by potential investors in their assessment of a target investment destination. In this regard Ethiopia stands as one of the most competitive countries as it is rich in its potential for renewable source of Energy, especially from hydroelectric power. It has so far developed close to five thousand megawatts of electric power from its rivers, and is also supplying power to neighboring countries. This shows that its manufacturing industries can enjoy a fair and sustainable energy supply.
The country has also worked strenuously in the past couple of decades to improve its transportation system. Accordingly, it has built road networks that connect most of its regions with each other as well as neighboring countries. Furthermore, it has built and launched the modern Ethio-Djibouti Railway network that connects the country with the port of Djibouti, its major sea outlet. Its capital, Addis Ababa is also a major diplomatic and continental trade hub that entertains many of the world’s airlines. This makes the country competitive destination for foreign investment.
On top of all this the government has also carried out encouraging works in opening more industrial parks in various parts of the country. This simplifies the process and activities of foreign investors that opt to reap benefit from the untapped potential here. The government also provides many incentives for foreign investors that enable them to get competitive advantages from their activities. The relevant government organs should do more to attract more FDI from many countries by building up on existing pull factors and improving the remaining ones.
THE ETHIOPIAN THURSDAY 9 MARCH 2023