Ethiopia: Indian Investors in Ethiopia Picking Up, Ambassador Says
New Delhi — The Embassy of Ethiopia in India announced that the involvement of Indian investors in Ethiopia is increasing from time to time due to the ideal investment conditions in the country.
Business men and women who have already succeeded in investing in Ethiopia are inviting their Indian mates who are looking for better investment opportunities.
Extraordinary and Plenipotentiary Ethiopian Ambassador to India, Genet Zewede said that many Indian investors are engaged in various sectors such as leather processing, agriculture, mining, agro- processing and steel processing among others. Between last July and September, for instance, four investors have issued investment licenses. And they are in the process of constructing industries in the areas of denim, cotton, sugar and garment production.
In addition, Indian investors have also been engaged in producing bio-gas, pondominia, jaterova and so forth. As a result, large coverage of area has been given to Indian investors compared to others.
In the previous year in particular, Indian investors have embarked on producing commercial crops like cotton, palm and sugar-cane. According to Ethiopian policy, to become food self-sufficient, Ethiopian farmers should be able to produce all kinds of crops.
According to her, some people complained that commercial farming has an impact on environment. For instance, the Indian company which cultivates tea plantation in Gambella could not harm the area as tea plantation doesn’t degrade the environment.
Moreover, out of the total vast area of cultivable land Ethiopia has only 3 per cent has been given to large commercial farms. Even this land has been given in the lowland as it is inhabited sparsely.
She further indicated that these mega commercial farms help development of agro-processing industries. Thus, the government believed in giving big commercial farms to investors. Those areas can be used as an input for further industry. For example, cotton can be changed into denim and palm into palm oil.
However, the nation imports huge amounts of edible oil from Asia and other countries. So what hindered inviting investors to come and invest in palm oil? If they produce oil in the country, this could not only save foreign currency but also contributes for its economic development. Moreover, what is left from domestic consumption could be exported to bring foreign currency.
She also said that there is lack of infrastructure and labour in Ethiopia in the hardly inhabited areas like Gambella. Even so, investors are coming while grappling with all these hardships to the country they don’t know. Other countries who have fulfilled infrastructure can afford to develop in that manner as they can afford its price.
But, Ethiopia is charging according to international market where infrastructure is not developed. Beyond that, there are countries which are giving land for free to attract investors because, when they come they bring new technology, employment and foreign currency. These are the main advantages that a developing nation like Ethiopia can benefit from foreign investments, she said.
She also pointed out that upon the establishment of Ethiopian Embassy in India the two countries started to build relationship in cultures and later on in trade. At this stage, the relationship has grown in all areas like investment, bilateral relationship which is government to government politically.