South African companies keen to invest in Ethiopia
South African investors and representatives of companies have expressed their readiness to invest in Ethiopia and do business with.
A South African business delegation comprising 22 investors and representatives of companies are currently in Ethiopia to explore investment potentials and opportunities in the country, particularly in manufacturing, agro-processing, energy and construction sectors.
State Minister for Foreign Affairs, Dr. Aklilu Hailemichael met with the South African Business Delegation on Monday (March 6, 2017) and briefed them on investment prospects in Ethiopia.
Dr. Aklilu underscored that the delegation's current move will promote Ethiopia's aspiration to boost the intra Africa trade and enhance south-south cooperation.
He said, "Ethiopia attracts investors from China and Turkey as well as the US and Europe; nevertheless we would like to also promote south-south economic cooperation between African countries."
Touching upon the huge investment potentials in Ethiopia, the State Minister said, "Ethiopia's geographic location, its active membership in regional and bilateral trade agreements, including various other platforms with the U.S, EU and COMESA region, and the favorable investment policies make it an attractive investment destination."
Ethiopia's young and productive work force which accounts for 60 percent of the population also offers significant comparative advantages to investors, he added.
Ethiopia’s export under AGOA has jumped by 62 percent between October 2017 and September 2018.
The country experienced the largest increase exports in the period under review, according to USAID East Africa Trade and Investment Hub.
“If this growth continues, Ethiopia may quickly become the second or third largest exporter under AGOA in East Africa,” the Hub said.
East African countries supported by the USAID-Hub reached nearly one billion dollars in exports to the U.S. under AGOA in the period under review.
This is a 17 percent rise over figures from the previous year, and a 42 percent increase since the USAID Hub began.
Kenya remained the largest exporter in eastern Africa with a total of 454 million dollars.
Almost all other countries saw their exports grow, with the exceptions of Mauritius and Burundi. Mauritius has witnessed increased competition since Madagascar regained its AGOA eligibility. Burundi, while not AGOA-eligible, saw its exports under the Generalized System of Preferences (GSP) drop.
According to the Hub, apparel continues to dominate East African exports across countries, accounting for 84.4 percent of all AGOA exports during the reported period.
East African countries have made sustained efforts to take advantage of their AGOA eligibility in recent years.
Rwanda, Uganda, Madagascar, Tanzania and Kenya have developed national AGOA strategies that outline targeted support for critical sectors and product categories to maximize the countries’ utilization of its duty-free benefits, while Ethiopia is in the process of updating its national strategy.
Firms, with the Hub’s support, have also made strides in increasing their competitiveness so that they can better compete internationally.
Through these efforts supported by the USAID Hub, East African countries have set record-high totals of AGOA exports.
To date, USAID Hub trade and investment support has contributed to 4.07 billion dollars in AGOA exports from the region, with 491.5 million dollars from USAID Hub-supported firms.
The USAID Hub boosts trade and investment with and within East Africa by deepening regional integration, increasing competitiveness of selected agricultural value chains, promoting two-way trade with the U.S. and facilitating investment and technology to drive trade growth.
Chinese State Councilor and Foreign Minister Wang Yi said the friendship between China and Africa is unbreakable after concluding a visit to four African countries on January 07/2019.
The Minister was in Africa on a visit to Ethiopia, Burkina Faso, the Gambia and Senegal from January 2 to 6, according to CGTN.
The Minister said “recently some countries deliberately smeared China-Africa cooperation” however, Africa prefers to continue its relation with China.
“The governments and people of African countries are not bewildered and they have stood up to break the rumors and firmly adhered to the friendly policy toward China.”
Wang said the leaders of the four African countries appreciated China’s cooperation with Africa and thanked China for its support for the development of African countries and the improvement of people’s livelihood.
Speaking of rising unilateralism, Wang said adherence to multilateralism has become a common voice.
“African countries have great expectation on China’s role in defending multilateralism. The four countries are willing to strengthen coordination with China and jointly defend the rules of multilateralism and jointly promote the democratization of international relations” he said.
Wang said his feeling from this Africa trip is that African countries have growing enthusiasm for the Belt and Road Initiative.
“A large number of China’s key projects in Africa have brought tangible benefits to local people. With the alignment of BRI with African Union’s ‘2063 Agenda’ and the development strategies of all countries, BRI is expected to launch cooperation with higher quality and higher level on the African continent,” Wang noted.
Prime Minister Abiy Ahmed and Eritrean President Isaias Afeworki have officially opened Oumhajir-Humera border on January 07/2019 that connects the two countries.
The opening of the border is anticipated to further enable the people-to-people relation on both sides and facilitate cross-border trade in the long term.
Prime Minister Abiy Ahmed landed in the Eritrean town of Tessene, accompanied by Chief Administrators of Amhara and Tigray Regional States, it was indicated.
Upon arrival, he was welcomed by President Isaias Afeworki and his delegation.
This opening border in Oumhajir and Gerset on the Eritrean side and to the Humera border area is the continuation of normalizing of Ethio-Eritrea relations, it was learned.
It is to be recalled that Ethiopian Prime Minister Abiy Ahmed and Eritrean President Isaias Afeworki signed a peace accord in July 2018, restoring diplomatic and trade relations between the two countries.
Following the peace accord, Ethiopia and Eretria have been enjoying mutual diplomatic relationship.
President Sahlework Zewde has received credentials of five newly appointed ambassadors of different countries including Eritrea on the 27th of December 2018.
Ambassadors of Egypt, Eritrea, Somalia, Thailand and Tunisia have presented their credentials for the President.
The newly appointed ambassadors pledged to improve their respective countries bilateral relation with Ethiopia.
Eritrea’s Ambassador to Ethiopia Semere Russom said his appointment in this time is encouraging working together and he will strive to strength the countries.
“All our energies, all our resources are going to be directed to working for common development and for joint development”, he said.
Ambassador of Somalia to Ethiopia Ali Sharif Ahmed said he will work to improve Ethio-Somalia relation to a higher level.
He added that the economic field will be the main areas of cooperation between Ethiopia and Somalia as the latter has vibrant private sector that wants to come and invest in Ethiopia.
“The relationship will be commercial, security, political and regional cooperation that we have never seen before, that is what we are trying to achieve as Somalia representative here”, he said.
Egyptian Ambassador, Osama Abdel Khaleq said Egypt and Ethiopia maintain strong relationship.
The Ambassador said that he will work to further the bilateral relationship to a strategic level.
“Both countries are enormous and have potential to further that relationship to strategic partnership… this is the ambition I have as an ambassador of Egypt”, he expressed.
While receiving credentials, President Sahlework told the Ambassadors to exert maximum effort to materialize bilateral agreements that Ethiopia signed with their respective countries.
She assured the ambassadors that the Ethiopian government will work to enhance the bilateral ties with all the countries, according to Melse Alem, Spokesperson of the Ministry of Foreign Affairs.
Adama Antex Groups, a Chinese textile manufacturing company, has officially started exporting its products, making it the first company to export from the recently inaugurated Adama Industrial Park on December 30/2018.
From its first export to Europe, a container of swimwear, the company is expected to generate 100,000 U.S. dollars, Antex Chairman, Qian Anhua said.
The Chairman said that the company has created jobs for 1,500 individuals. The number is expected to reach 10,000 when it goes fully operational.
Antex, that started its investment with five million U.S. dollars has later increased its capital to 50 million U.S. dollars. It is working on eight sheds that it rented within the park.
Officials from the investment commission and industrial parks development corporation (IPDC) attended the ceremony organized to celebrate the first export from the park.
CEO of IPDC, Lelise Neme lauded the company for starting to export products within a short period of time.
She added that Adama Industrial Park is exemplary for others for starting export within few months. The park was officially inaugurated in October this year.
Two companies including Antex are already started operation, while three others are in the pipeline, she said.
Adama industrial park is among the industrial parks that Ethiopia has developed over the past few years in order to stimulate industrial development by attracting anchor companies.
Adama Industrial park, approximately 93km southeast of Addis Abeba in Oromia regional state, was inaugurated in early October by Prime Minister Abiy Ahmed.
The first phase of the park that lies on 102 hectares, built at a cost of 147 million dollars was commissioned by the Industrial Parks Development Corporation.