Israel Chemicals – an Israeli multi-national company that specializes in manufacturing chemical products is terminating Potash project in Ethiopia, according to Reuters report.
The company is known for producing fertilizers markets its products in Asia and Europe among others and it has business relation with countries like China and India- among others. It’s project in Ethiopia, says Reuters, is estimated to be $170 million as of June 30th of this year.
Why is it leaving Ethiopia?
The company is apparently withdrawing from Ethiopia because of Ethiopian government’s “failure to provide the necessary infrastructures and regulatory framework” for the project.
As well, there seem to be issues regarding taxation.
Administration in Ethiopia is criticized for system wide corruption. In fact, the regime itself admitted that corruption is principal challenge for the system.
In addition to administrative challenges, foreign firms in Ethiopia could face security challenge with deteriorating “stability” in the country.
A Turkish firm was reportedly attacked just outside of the capital this week. And yesterday,an American student was killed in Holeta – just outside of the west end of Addis Ababa.
Ethiopia has been rocked with thunderous popular revolt for months now. This past Sunday about 678 people were reported dead after regime in power, say opposition party leaders and activists, caused a stampede in a religious festival with over one million attendance about 44 kilometers South East of the Capital Addis Ababa. Political situation is deteriorating.