Investing in Ethiopia
Ethiopia is strategically located in the northern part of Africa. Sinc 1992, the Ethiopian Government has implemented a series of reforms and encouraged wider participation of the private sector in the development of the national economy. The GDP growth for the last three years averaged 8%. The port of Djibouti, located on the Red Sea coast serves Ethiopia for major import-export trade.
A foreign investor is allowed to invest in all areas investment except those reserved for Government, Ethiopian nationals and domestic investors. Ethiopia provides guarantees for Repatriation of capital and profits to foreign investors besides other benefits. Major Investment areas in Ethiopia are:
Cotton: Ethiopia is believed to be one of the original homes of cotton and is one of the major cash crops in the country. Cotton is basically a crop of warmer climates and also requires dark, often cracking soil, which is available in Ethiopia.
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Horticulture: With its variety of altitudes and micro climates, most fruits and vegetable such as citrus fruits, banana, mango, papaya, avocado, guava, grapes, pineapple, apples, potatoes, cabbage, cauliflower, okra, egg plant, tomato, celery, cucumber, pepper, onion, asparagus, water melon, sweet melon, carrots, green beans and cut flowers can grow well in Ethiopia. The Ethiopian Government encourages companies with experience in agro-processing to invest in this sector. |
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Floriculture: The country has a wide range of altitude from 148 meters below sea level in Dallol Depression to 4620 meters above sea level at the summit of Ras Dashen. Optimum altitude for cut flower crops production is between 1500 and 2300 meters above sea level. Large areas of the country lie within this range of altitude. Climate and well drained sandy loam soil also favour the production.
Livestock: Ethiopia’s hides and skins are highly regarded for their natural qualities of clarity, flexibility, strength, thickness and compact texture. Cattle hides from Ethiopia are equally known for their fine grain pattern and good fibre structure and are preferred internationally for making shoe upper. Ethiopian highland sheep skins are estimated to comprise of about 70% of the total sheep skin production of the country and are reputed for their unique natural finesses, thickness, flexibility, strength and compactness of texture. They are suitable for production of high-quality dress gloves, sports gloves and garments. Likewise, Ethiopian goatskin is classified as Bati-genuine. Currently there are 20 operational tanneries in Ethiopia. In the manufacturing sector, the leather industry is the leading export earner.
Textile: The investment friendly environment, the availability of resources, abundant labour and political stability have made investing in textile and garment manufacturing sub-sector a rewarding business in Ethiopia. There are opportunities in spinning, weaving and finishing of textile fabrics and production of garments.
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Chander Verma takes over as new Chairman of Project EPC
Mr. Chander Verma has taken over as the new Chairman of Project Export Promotion Council of India. A civil engineer by profession, Mr. Verma is an experienced project manager with substantial experience in project exports. He is currently the Managing Director of Continental Construction Ltd., Chairman of MCM Group, Vice Chairman of Construction Industry Development Council (CIDC), Chairman of Indian Society for Trenchless Technology (INDSTT) and the President of International Council of Consultants. He brings with him an experience of over 30 years of project execution both within the country and abroad. He has executed projects in Libya and Iraq and has headed several business offices across the globe. |
