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Ethiopia Pushes to Boost Foreign Direct Investment inflows

Ethiopia _ Foreign Direct Investment
Photo credit : ENA

By  Tesfa-Alem Tekle
January 2, 2020 

(ADDIS ABABA) -Ethiopia on Wednesday said it has established an integration platform to arrest problems encountering the horn nation to enhance Foreign Direct Investment flows.

Ethiopia had plans to attract over  $ 5 billion in Foreign Direct Investment (FDI) during the current Ethiopian Fiscal Year and is aggressively working to boost the already promising achievements.

To further effect its plan, the horn nation has established an alliance forum today to address problems facing the process of attracting Direct foreign investment.

Hosted by the Ethiopian Ministry of Foreign Affairs, a forum intended to highlight ways in how to ease problems investors face was being held today.

Foreign Affairs Minister, Gedu Andargachew, at the forum noted that following the current national change including the economic reforms, many foreign investors are increasingly flooding to invest in the horn of Africa’s nation.

However, the Minister underscored that there are gaps in the way of properly welcoming investors and putting foreign investors into work.

Therefore, he stressed the importance of setting up a follow-up forum to address problems in order to better attract investment.

Accordingly, members of the macroeconomic group, members of the Investment Commission Board and the Ministry of Foreign Affairs were summoned to discuss a way forward.

At the occasion, Macro-economic advisor to the prime minister, Ambassador Girma Biru on his part said that many investors are coming-in considering the factors that make Ethiopia the best investment destination in the world.

The Ambassador underscored a need to address every problem that these foreign investors are facing.

The discussion shows that there appear problems with recruitment, pre-investment, and post-investment in terms of attracting foreign investors.

Beyond this, investors have been reportedly facing problems with security and inadequate infrastructure, lack of foreign currency, tax-related issues, land supply, licensing of foreign experts, and other logistical problems.

According to information from the Ministry of Foreign Affairs spokesman, an agreement was reached to establish a monitoring group from the concerned department heads, in order to address these problems permanently.

Accordingly, a monitoring group led by Ambassador Girma Biru was formed today to follow up and its next meeting of the forum will be held at the end of next month.

According to economic researches, massive supply of infrastructure such as electricity, road access, telecommunication and excellent airway in the country have directly contributed to the ever increasing FDI growth in Ethiopia.

“improving the quantity, maintaining the quality of infrastructure, and enhancing good governance” have brought significant contribution for the boom in FDI recently.

The country’s series economic reforms have also played a direct positive contribution for the economic advancement of the African nation.

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