ADDIS ABABA – Ethiopian Investment Commission announced that the number of foreign companies investing in the manufacturing sector is increasing in comparison with the other sectors of the economy.
While the inflow of FDI in Ethiopia is steadily increasing / increasing, there is a growing trend from an inflow of FDI inflows into the processing sector, with the Commission revealing that 136 foreign manufacturing companies alone are operational in the 2016/17 fiscal year. with 42 and 23 companies in the services sector and the agricultural sector respectively.
Mekonnen Hailu, director of public relations at the Ethiopian Investment Commission (EIC), told the Ethiopian Herald that the number of foreign production companies ready to invest in the country is growing day by day, in comparison with the other sector, as a reflection of the enormous attention from the government to the sector and the policy and strategy implemented.
Referring to the Agency's data, he stated that the processing industry has taken the lion's share of foreign direct investment over the past two years, with manufacturers from China, India and the Netherlands taking the lead. This year it looks the same as most companies that have taken out an investment license, are preparing themselves to invest in the production sector, which is again more than the other sectors.
According to Mekonnen, this has economic implications. Firstly, the increase in foreign direct investment in the sector will play a role in helping the country realize its vision of transforming the economy from agriculture to industry driven, because technology transfer takes place to local manufacturers.
In addition to helping to create jobs, because the sector is the greatest creator, this peak will contribute to increasing the country's export volume, and in solving the country's currency problems, he repeated. "41 companies from those operating from last year are involved in the export sector."
The secret behind the wave has to do with various factors, such as with Mekonnen. "Firstly, Ethiopia has a huge trainable workforce and a suitable investment policy with incentive packages." Furthermore, he said that several other attractive attractive packages, such as industrial parks that are mainly intended for labor-intensive production, including textiles and leather, together with the competing infrastructure of the country have played a role in increasing the investment in production. being poured. sector.