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Investment Opportunities and Conditions in Ethiopia Ethiopian Investment Agency February 2009. _______________________________. Ethiopia at a glance ____________________. Area .....……….. 1.14 million km 2 Geographical Location……..within 15 o North of the Equator, at cross

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  1. Investment Opportunities and Conditions in Ethiopia Ethiopian Investment Agency February 2009 _______________________________

  2. Ethiopia at a glance ____________________ • Area .....……….. 1.14 million km2 • Geographical Location……..within 15o North of the Equator, at cross roads b/n Africa, Asia and the Middle East • Time Zone………GMT + 3 Hours • Population ..…... Over 74 million • Capital City …. Addis Ababa, seat of the Federal Government, AU, UNECA • Rainy seasons ….. Receives big rain during June, July & August and small rain during February and March • Political System... Federal Democratic Republic

  3. Food Crops : wheat, maize, beans, peas, lentils, soybeans, chick peas, • pulses, etc • Oil crops: rapeseed, linseed, groundnuts, sunflower, • niger seed and cotton seed • Beverage Crops: coffee and tea. • Cotton: over 322,000 ha of land • Feed stocks for bio-diesel: jatropha, palm oil, castor oil • Feed stocks for ethanol: sugarcane, sugar beet, potatoes, corn, etc. Main Investment Opportunities in Agriculture:----------------------------------------------------

  4. Opportunities (Cont…) • Horticulture :Major horticultural crops grown include: citrus, banana, mango, papaya, avocado, guava, grapes, pineapple, passion fruit, apples, potatoes, cabbages, cauliflower, okra, eggplant, tomato, celery, cucumber, onion, asparagus, watermelon, sweet melon, carrots, green beans, strawberries, herbs. • Floriculture: Highland and Lowland world class flowers and roses • Livestock Population : • No. 1 in Africa • 42 million heads of cattle • 25.5 million heads of sheep • 24.4 million heads of goats • 53 million chickens • 2.3 million camels • 7 Million equines

  5. Opportunities (Cont…) Beeswax A leading producer of honey and beeswax in Africa (3.3 million beehives) Livestock Modern Commercial breading, production & processing of meat, milk and egg Animal feed processing Ostrich, civet cat and crocodile farming.

  6. Textile & Garments/Apparel ______________________________ • Spinning, weaving and finishing of textile fabrics • Production of garments • Industrial sites are ready in all towns and cities

  7. Tannery and Leather Products Heavy leather Cattle Hides • Leather products: • footwear • hand bags • saddle & harness • garments • l.goods • upholstery Goat Skins Light Leather (Bovine) Goats Light leather (S&G) Sheep skins Sheep • Industrial sites are ready for shoe and leather projects

  8. Food and Beverage Products _________________________________ • Processing and preserving of meat products • Processing and preserving of fish and fish products • Processing and preserving of fruits and vegetables • Integrated production and processing of dairy products • Production of crude and refined edible oil • Production of flour and bakery products, spaghetti, and macaroni • Manufacturing of starch and starch products, • Processing of animal feeds • Sugar production • Brewing and wine making, etc.

  9. Construction _________________________________ • Rental of construction machinery • Comprising of first grade construction contracting • Real estate development

  10. Tourism_____________________________ Historic routes Blue Nile falls City of Gondar- Famous for its medieval castles and the design and decoration of its churches Lalibela –Known as the “Eighth wonder of the World” it is a legendary city curved from solid rock Axum – the site of Ethiopia’s most ancient city where the original Ark of the Covenant is claimed to be housed. It is famous for its seven monolithic stella all hewn from single pieces of granite. Attractive historical and archeological sites, scenic landscape and cultural heritage Seat of AU, ECA, and offices of other multilateral and bilateral institutions Exceptional climate with temperatures ranging from 10 to 25 deg.c.

  11. Tourism Cont…___________________ Islamic Shrines Mosque of Mohammed Al Negashi Ancient city of Harar – An Islamic city with unique Muslim architectural designs which is one of UNESCO’s prestigious world heritage sites. Mosque of Sheih Nur Hussein Great Caves of Sof Omar _______________________________________________ Therefore, opportunities for private investment in hotels, lodges, international restaurants and tour operations ________________________________________________________________

  12. Market ___________________ • Domestic market with over 74 million people • COMESA • 20 member countries • 380 million people • AGOA and GSP • EBA • Middle East

  13. Labour Force ____________________________________ • Abundant & trainable labour force • Labour cost in Ethiopia is cheap even compared to African average • daily laborer …… $2/day • Salaries of fresh university graduates…. $110/month - $200/month • English is the medium of instruction in secondary & higher education • A number of international and community schools are available

  14. Ethiopia’s Business Environment___________________________________ Investment Policy and Incentives No restriction on the modality of participation No discrimination between domestic and foreign investors Exemption from the payment of customs duty : Duty free importation of capital goods and construction materials Duty free importation of spare parts whose value is not greater than 15% of the total value of capital goods to be imported Income tax exemption : 2 up to 7 years for manufacturing or agro-processing and agricultural investments Carry forward of losses : half of the tax holiday period

  15. Ethiopia’s Business Environment (cont) ___________________________________ Export Incentive Scheme Duty Draw-Back scheme Voucher scheme Bonded Manufacturing Warehouse scheme Export Credit Guarantee scheme

  16. Ethiopia’s Business Environment(Cont) ________________________________________________ Investment Guarantee and Protection • Constitution and Investment Law protect private property • Repatriation of Capital and Profit • Multilateral Investment Guarantee Agency (MIGA) • Bilateral Investment Promotion & Protection Treaties (BIPPT) • International Convention for the Settlement of Investment Dispute(ICSID)

  17. Ethiopia’s Business Environment(Cont) ____________________________________________ One-stop shop services Time frame • Issuance of investment permit ……………………. 4 hours • Principal commercial registration …………………. 4 hours • Issuance of work permits………………..……….… 1 hour • Issuance of business license ……………………….. 4 hours

  18. Ethiopia’s Business Environment(Cont) ___________________________________________ One-stop shop services Time frame • Technology transfer agreement registration ……….…….. ….4 hours • Issuance of certificate to foreign investors to be considered • as domestic investors ……… …………………..………….. 1 hour • Pre-approval and post approval services to foreign investors • (facilitation & after care services)

  19. Sources of Foreign Investment projectsJuly 1992 to January 2008

  20. Major Commodities Exported to Italy __________________________________________ • Coffee • Textile & Textile Products/Garment • Pulses • Leather & Leather Products, Shoes • Mineral Products

  21. Why invest in Ethiopia? ____________________________________ • Political and Social stability • Macro-economic stability • Strategic location • Simple investment procedures • Abundant, cheap & trainable labour force • Competitive investment incentives • Lowest crime rate in Africa • Zero tolerance for corruption

  22. Why Invest in Ethiopia (Cont) _____________________________ • Welcoming attitude to FDI • Wide market opportunities • Transparent laws & regulations • Adequate guarantees & protection • Enormous investment opportunities • Ethiopia’s exceptional climate(more than 50% of the country consists of highlands, with average annual temperatures below 200c) • “Ethiopia is safe, peaceful, stable and very nearly free of corruption .Among LDCS, Ethiopia is the country with the lowest levels of corruption.” UNCTAD and ICC, An investment guide to Ethiopia, Geneva,2004

  23. Our Contact Address __________________________ • Ethiopian Investment Agency • P.O.Box 2313 Addis Ababa, Ethiopia • Tel. 251-11-5510033(pbx), 251-11- 5539474(Direct) • Fax:251-11-5514396 • E-mail:ethiopian.invest@ethionet.et • Website:www.investethiopia.org

  24. THANK YOU

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