A study conducted by UK’s Overseas Development Institute (ODI), puts Ethiopia among the top four African countries in attracting foreign direct investment (FDI) in the manufacturing industry.
This was revealed on June 5, 2017 at a consultative forum organized by the Ethiopian Investment Commission (EIC) to share experience with African countries that are successful in the sector.
Ethiopia was ranked among the top four countries by the institute taking into consideration its huge investment on infrastructure and industrial parks as well as its market potentials.
Dr Arkebe Oqubay, Special Advisor to the Prime Minister Hailemariam Desalegn, at the forum briefed the participants about Ethiopia’s ambition to shift to an industrial-led economy by attracting FDI in the manufacturing industry.
The Special Advisor said Ethiopia is making utmost efforts to push the contribution of the manufacturing sector to the economy, which has been at a lower level, to 25% over the coming ten years.
As part of the efforts to improve the sector and achieve the target, the country has given due attention towards human resource development and addressing the skill gaps in the manufacturing industry, he told the attendees.
According to ODI, the leading independent think tank on international development and humanitarian issues, Ethiopia’s investment in power sector has reached at a promising level for the growth of the manufacturing industry.
Ethiopia is the leading country in Africa in supplying cheap electric power, it said, adding it also joined other African countries with huge market potentials for manufacturing products, such as Kenya, Mozambique, Nigeria and Zambia.
It is to be recalled that a UN report prepared by a consortium of three teams from the African Development Bank (AfDB), the OECD Development Centre and the United Nations Development Program (UNDP), tipped Ethiopia to be the biggest recipient of private equity in eastern Africa, beating Kenya.
The 16th edition of the African Economic Outlook report released two weeks ago says the development blueprint has made Ethiopia a magnet for manufacturing and service industries.
It sets the projected private equity inflows into Ethiopia this year at 4.4 billion US dollars compared to Kenya’s 1.3 billion US dollars.