Foreign direct investment flow to Ethiopia growing

Addis-Ababa(CakaraNews).Rigbe Yohanes, Foreigners account for more than half of the over 312 billion birr capital registered by investors in the sector. Ethiopia plans to register a 20.1 percent average growth rate in the industry sector at the end of the Growth and Transformation plan. In the years before 2010/2011 the average growth was around 10 percent. In the first year of the GTP, that’s last year, the sector registered growth of 15 percent. This year it is estimated to be 17.9 percent. The plan intends to attract more investors in selected industries such as textile, sugar, and leather processing. Currently, there are over 13,000 investors with a combined capital of over 312 billion birr, creating jobs for 1.3 million compatriots. Out of these, 2,000 projects are owned by foreigners. Their investment amounts more than 184 billion birr capital. Chinese, Turkish and Indian investors take the lion’s share. There are 629 Chinese businesses worth 9.6 billion birr thriving in the manufacturing industry. The eastern industrial zone is one of such projects. It is run by a Chinese private company know as Jansu Yonyuan and has 9 factories. Out of which four have already entered into production, manufacturing shoes, packing materials, cement and gypsum board. The industrial zone which was established in 2010 rests on 500 hectares of land. Estimates show it will consume $200 million and create 17,000 jobs. Right now there are 500 Ethiopians working there. Chian Guwochin is Deputy Managing Director of the Eastern Industrial Zone. He said in addition to creating job opportunities and transferring technology and skills to local people, the company gives emphasis to environment protection. Similarly, 115 Turkish investors are in the manufacturing sector with an amount of 6 billion birr. Ellse Addis industrial development located in Adama is one of the factories run by Turkish investors. It is one of the biggest textile factories in Sub Saharan Africa. The company has brought in $150 million investment capital. “Not only Turkish investors but also other foreigners are interested to do business in Africa, in this case in Ethiopia. The first reason is the presence of reliable peace and security in Ethiopia. The other is conducive investment policy and abundant resources in the country,” Seiffetin Kochak,the owner, of the factory said. The volume of Indian investment in the industry sector has risen. Over 260 Indians are involved with 4.6 billion birr capital. The ministry of industry is working to attract more foreign investment to the sector. Ahmed Nuru Advisor to the State Minister says the efforts are paying off.

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