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.
Addis Ababa, 14 May 2014 (WIC) The Ministry of Finance and Economic Development (MoFED) expressed its pleasure with first sovereign credit rating by three leading global rating agencies.
Last week, Fitch and Standard & Poor’s (S&P) assigned Ethiopia a long-term foreign and local currency Issuer Default Debt Rating (IDR) of ‘B’ with an outlook of stable. On Monday, Moody’s followed up giving the country a higher rating of a “B1” (B+).
The ratings will open the door for the Ethiopian government to diversify its sources of finance and highlights the country’s overall transformation aided by a double-digit economic growth over the past decade.
“We are proud and very pleased with the first ratings and it testifies to the tangible transformation of the country,” Sofian Ahmed, Minister of MoFED, said today at a press conference.
“This shows that our economic model is bearing results and we are on the right track of growth and renaissance of the country,” Sofian added.
The rating paves the way for the government to issue international bonds and also attract more flow of foreign direct investment into Ethiopia.
The rating agencies evaluated various aspects of the country’s economy for the past six months and their ratings will be reviewed annually. The rating agencies highlighted a record of strong economic growth and reduction of poverty with bright prospect.
The agencies hailed the country in reducing poverty, expansion of infrastructure, internal stability coupled with a role in bringing about regional peace as well as a healthy external debt, the minister said.
Sofian said the rating paints a positive outlook of the economy of Ethiopia, a country associated with poverty and hunger for long, for potential investors.
“We believe the report provides investors who wish to invest in Ethiopia with factual and accurate information about the country,” Sofian said.
Sofian highlighted the importance of continued public investment on infrastructure development such as roads, railways and hydro-power projects which is driving the economy as well as contributing for the growth of the private sector.
However, the minister said more needs to be done to improve the efficiency of government agencies, build institutional capacities and improve quality of infrastructures.
The government expects the economy to continue to grow fast and one of the rating agencies - Fitch has predicted growth of around nine percent this year, lower than the government’s target.
Following its ratings, Fitch has published a full rating report and a special report entitled 'Ethiopia: Rapid Progress, Strong Potential' analyzing the country's strengths and weakness compared with its rating category, based on the analysis of the four key elements in Fitch's sovereign rating criteria: structural features, macroeconomic performance, public finances and external finances.
Turkey's Anadolu Agency (AA) officially inaugurated its new regional bureau in Addis Ababa on Monday (May 12) as part of the agency's plans to bolster its Africa coverage. Formally launching the bureau along with Ethiopian State Minister in Charge of the Government Communication Affairs Office, Mr. Ewnetu Bilata, the Anadolu Agency Director-General and Board Chairman, Mr. Kemal Ozturk, said the new Addis Ababa office would produce Africa news in English, Arabic, Turkish and French languages. He pointed out that the new Ethiopian bureau would be the agency's biggest in Africa after Cairo and Tunis, and noted that AA had some 1500 subscribers around the world. He indicated that the agency would also soon open offices in both Senegal and South Africa. The Turkish Ambassador to Ethiopia, Mr. Osman Riza Yavuzalp, said that the opening of the office would help to further bolster the existing excellent relations between Ethiopia and Turkey. He said the the new Addis Ababa bureau would cover not only Ethiopia and the African Union, but also other African countries. He underlined that the Anadolu Agency was “one of the most respected news agencies in the world”, adding “I only have one wish: that this office will produce good news for people to see the beauty and stability of Africa." State Minister Ewnetu said he hoped the new bureau and Ethiopia's official news agency would work together as "real partners," suggesting that they could share experience, technology and expertise. He said the government would provide the necessary support to make agency’s work successful.
Addis Ababa May 14/2014 The International Civil Aviation Organization has chosen Ethiopia to lead the African Aviation Academy, which will be established in the future.
After visiting the Ethiopian Airlines and Civil Aviation Authority yesterday, Secretary General of the Organization, Raymond Benjamin said the organization made
the decision considering the strong aviation industry and the country's leading role in the continent in this regard.
He requested for Ethiopia's assistance in supporting countries in the region in ensuring flight safety using its advanced technologies and strong capacity.
The development of the aviation industry of the country can be exemplary to other countries in the continent and displayed the commitment of the government, he said.
Ethiopian Transport State Minister Getachew Mengiste on his part thanked the Organization for recognizing the aviation industry growth in the country.
Ethiopia will work in close collaboration with the International Civil Aviation Organization to further boost the industry, he added.
Addis Ababa May 13/2014 The fast and consecutive economic development Ethiopia has been registering over the past five years put Ethiopia on top, the 2014 Economic Report on African said.
The yearly report issued by the UN Economic Commission for Africa says that Ethiopia has achieved a 9.4 percent growth over the past five consecutive years in average, and this puts the country on top.
Expansion in services and construction, aggressive public spending on infrastructure and public services, and increasing agricultural production associated with rising domestic demand contributed to the growth.
Libya, which despite strikes and disruptions to oil production still managed to expand by 8.7 percent, mainly because of hydrocarbons.
The Central African Republic had the slowest five-year growth which is 0.4 per cent. Political instability and high insecurity affected agriculture, the largest economic sector and main source of employment.
Among the regions, West Africa led with 6.7 percent growth rate. Growth rate in East Africa is almost unchanged compared to the previous year at 6 percent.
But the growth in Central Africa slowed from 5.8 percent in 2012 to 4.2 in 2013, largely owing to political instability and violence, while growth in South Africa edged up from 3.5 percent to 3.6 percent, because of increased investment in the sub region's mining sector.
Political instability and disruptions to oil output undermined growth in North Africa to 2.3 percent in 2013 from 7.2 percent in 2012.
Africa’s growth slowed from 5.7 per cent in 2012 to a projected 4.0 per cent in 2013, still almost twice the global average, but slightly lower than the average for developing countries. Africa was surpassed only by East and South
Asia, which grew at 5.6 per cent in 2013.
Africa’s expansion was underpinned by sustained relatively high commodity prices, increased domestic demand (due especially to higher private investment in infrastructure and energy) and improved economic governance and management in African countries.
Addis Ababa, 12 May 2014 (WIC) - The preparatory meetings of the Yemeni-Ethiopian joint ministerial committee kicked off here on Sunday.
The three-day meetings will be devoted to review the draft agreements and cooperation protocols, which will be signed in the Yemeni-Ethiopian joint ministerial committee to be held in Sana'a next Wednesday and Thursday under the co-chairmanship of two countries' Foreign Ministers.
Preparatory meetings discussed the details of the cooperation agreements and protocols to be signed by the Ministerial committee in any areas including education, tourism, culture, youth, technical education, vocational training, commerce, investment, specifications and standards, transport, health, labor force, agriculture, oil and minerals, in addition to enhancing the mutual cooperation between the two countries' private sectors and News Agencies. (Saba)