Tuesday, July 23, 2024
HomeEthiopian NewsForeign investors evacuating industrial parks because of corruption, bureaucracy

Foreign investors evacuating industrial parks because of corruption, bureaucracy

Ethiopia Industrial Parks
Adama Industrial Park (Photo :file/FBC)

By Hailegebriel Endeshaw
Staff Reporter

ADDIS ABABA – (BORKENA) – Foreign investors that have been engaged in various sectors in Ethiopia are evacuating Industrial Parks due to what they think unjust payments they are asked to process works and bureaucratic bottleneck, sources said. This was said at the inspection of a nine-month plan execution report of Ethiopian Investment Commission. The report of the 2022/23 Ethiopian Fiscal Year was presented to the Trade and Tourism Affairs Standing Committee of the House of Peoples Representatives (HPR) last Monday, 08 May 2023.

The Trade and Tourism Affairs Standing Committee of HPR said on the occasion that while having a visit at Eastern Industry Parks located in Dukem area of Oromia Region, the administration of the Park had been forced to pay for services ranging from little to big ones. Moreover, as there is no sentiment of ownership, investors are highly complaining of intruders that have been committing robbery by entering into the parks, standing committee members said. 

The committee members confirmed during their visit that 51 investors have left the Industry Parks due to robbery, theft and bureaucratic bottleneck. The standing committee members also said that the investors have left for Uganda and other neighboring and remote countries.

The investors have faced big problems to get services of land and loan provisions without greasing the hands of the administrative bodies of land and town administrations, according to the standing committee members. There are investors who do not receive the proper services even if they pay the required bribery, their members said.

However, the Investment Commission said that it had not received any information or report regarding the departure of investors from Eastern Industrial Parks. Deputy Commissioner of Investment Commission, Daniel Teresa said, “as far as we know, no organization has left the parks. However, investors numbering not more than five have moved to other parks in the country”. He said that when investors leave the country, it is with the knowledge of the Commission and they do that after they hand over their investment permits. The stated number and information indicated are not concise to what has been said, Daniel said.

Chief Commissioner of Investment Commission, Lelisse Nemie said in the nine-month report that of the target of 4.5 billion USD investment planned to attract the country over the last nine months, it was possible to get 2.67 billion USD, which is 61 per cent of the initial target. Investments that have been attracted into the country are mostly in the sector of agriculture, manufacturing, information-communication, tourism and health, according to the report.

Among the investors that have entered in to country Chinese, Indians and Kenyans take the highest share 

The Chief Commissioner said that products that cost 118 million USD were exported. Though it was planned to open job opportunities for 138,000 compatriots, 55.4 percent was achieved. Lack of product receivers of the factories, the failure of new parks to enter into operation and high turnover among factory workers were cited as reasons for low performance, according to the commissioner. 

 __

To share information or for submission, send e-mail to info@borkena.com 

Telegram Channel : t.me/borkena

Business Listing 

Ethiopian News Video

Join the conversation. Follow us on twitter @zborkenato get the latest Ethiopian News updates regularly. Like borkena on Facebook as well. Subscribe to YouTube channel 

advertisment

4 COMMENTS

  1. Modern industrial parks are mushrooming in unprecedented rate across many developing countries. Countries that used to remote and landlocked have given priorities to building transporting infrastructures. Just look at Uganda and Rwanda. You can get your goods to either Kenyan or Tanzanian sea ports in less than a day. The same goes for Uganda. All these countries have no peace depriving violence. So if people start giving you grief in Ethiopia all you have to do pack up and leave for next door. It is the same move companies are doing with they were doing beginning the late 1990’s in the Far East. Companies move from China to Vietnam was common then and still going on these days. Also airfreight used to be unthinkable for bulky and heavy products but with much better fuel efficiency that also has been coming down exponentially even though still prohibitive comparing to land and sea transports. So those folks in our old country better shap up and get their act together. They should make it their priority to invite more manufacturers and not chase away/lose what they have now. They should hit at corruption real hard. What I’m hearing is theft of raw materials destined for factories and infrastructures is becoming a serious problem through out that country. These offences are believed to be the works of underground organized crime groups and those parading themselves under the guise of ‘liberation’ front this or that. I doubt such crimes are being committed without inside help. So the regime should look at itself in the mirror and do serious house cleaning. Meanwhile those of us who have access companies that produce their products overseas should lobby for their consideration of the old country.

  2. Subject: QUOTE: “Foreign investors evacuating industrial parks because of corruption, bureaucracy” UNQUOTE May 11, 2023

    Ha, Ha, Ha, Ha, Ha, Ha, ………………………………………..

    Who created the “corruption” , not only in Ethiopia but also in the entire Continent of HONEST, SINCERE, HUMBLE FRIENDLY BLACK AFRICA? WHO, WHO, WHO, WHO DESTROYED OUR BLACK AFRICA ??????????????????????????????????

    DEAR AFRICAN INTELLECTUALS
    A) WHAT DO YOU THINK YOU SHOULD DO IN SUCH AN UGLY SITUATION IN YOUR OWN BELOVED BLACK AFRICA’?
    B) HONESTLY, DOES YOUR CONSCIOUS PRICK YOU ?
    C) DEAR BLACK AFRICAN READER >>>> YOU ARE NOT THE ONLY BLACK AFRICAN WHO DO NOTHING >>> INCLUDE ME,
    PLEASE. WE ARE ALL DESTROYED BY COLONIALISM.
    D) OBVIOUSLY THE GOOD LORD IN HEAVEN HAS HIS OWN MYSTERIOUS WAY OF HANDLING THE UNIVERSE.
    E). ONE WONDERS IF THERE IS SUCH A THING AS FAIRNESS
    F) BUT THEN, WHY SHOULD HE?!?! HE ALREAD GAVE US ALL THE FACULTIES THAT HE GAVE TO OTHER CREATURES.
    DIIDN’T HE ?!?!?!?!?!?!?!?!?!?!?!?! THE END

  3. Incompetency takes time to show but it does. Why does PP appoint such dullards to demanding posts? It could give them pocket money if the issue is to compensate past injustices. The world is flying by and the country is lagging because of this toxic ethnic racism so rampant everywhere including the industrial parks. Now it is creeping into the banks, hospitals, airforce, and even EAL. Stop this nonsense.

  4. QUOTE: “Stop this nonsense” .UNQUOTE:

    SOBER, ADMIRABLE ADVICE
    However, very sad to say, the TRAGEDY of TRAGEDIES, Ethiopia is heading to disintegration.
    That would be the GREATEST SADNESS in the entire Black African Continent .
    The rest of the so-called “CIVILIZED WORLD” will only ‘glance’ on passing.
    After all, it is only about a BLACK SKINNED Country!!!
    We all know — even the tiniest country, with white skin people, will frown upon decent Black Person.
    Who said that the world is fair?!?!?!?
    THE END

LEAVE A REPLY

Please enter your comment!
Please enter your name here