Ethiopia welcomes Indian investors, says Minister
“Offers low cost power, excellent infrastructure and ready-to-start business facilities”
(thehindu) — Low power traffic, easy access to land with minimal lease period, excellent infrastructure, ready-to-start business facilities, and duty free and quota free market access to the EU and the US are major advantages for Indian investors in Ethiopia, according to Bogale Feleke Temesgen, State Minster for Industry, Ethiopia.
Delivering the keynote address at the Ethiopian Investment Promotion Workshop in Cotton, Textile, and Apparel Sector held here on Thursday, the Minister said Ethiopia was the largest domestic market in Africa.
Stating that textile industry would play a major role in the industry development strategy of the nation, he said Ethiopia’s textile and clothing industry has been undergoing major development aided by low labour costs and highly motivated work force. The minimum investment is $200,000, he added. “There is huge potential for expansion of cotton cultivation in Omo-Gibe, Wabi Shebelle, Baro Akobo, Blue Nile and Tekeze River basins in Ethiopia. With successful bilateral and multilateral agreements with the US and the EU, the manufacturer can easily export their products all over the world.
“We offer power for ₹ 2 per unit and unskilled labour wages was $60 per month,” the Minister said.
Top priority was given for infrastructure development. ‘Plug and play’ facility was created for investors in all industrial parks. New industrialists would directly engage in production as industrial parks have complete set up of buildings with dedicated power supply, access to roads, and one stop services, Mr. Bogale Feleke Temesgen said. Industrial parks have been developed at Addis Ababa, Hawasa, Kombolcha, Mekelle and Diredawa. Two more parks are coming up, he pointed out.
Similarly, Adis-Djibouti railway project became operational, ensuring better logistics, he said. Other railway projects connecting ports to Mekele, Kombocha and Hawasa were under way. “We had given licence to 500 Indian companies to invest in Ethiopia he said and welcomed investors to attend an investors meet to be held on October 20 in Ethiopia.
In his address, Ethiopian Textile Industry Development Institute Director General Seleshi Lemma Bekele said Ethiopia has plans to increase power generation to 17,000 MW from 4,370 MW by 2020. Grand Ethiopian Renaissance dam was set to generate an additional 6,450 MW power. About 60 to 80 years land lease right at promotional rate was being offered with sub lease rights, he said. Three million hectares of land was suitable for cotton cultivation. Ethiopian Textile and Garment Manufacturers Association president Fassil Taddesse Hailu accompanied them.