|
Ethiopia possesses enormous natural potential
resources by virtue of its natural endowment. Its endowment.
Its endowments are likely to facilitate and enhance its development
in the agricultural, agro-industrial, industrial, mining, construction
and tourism sectors.
Ethiopia is exerting efforts to create a more
business-friendly atmosphere. Modestly speaking the country
has been a destination for investment opportunities with an
assured potential for investment fortunes. Ethiopia which is
located in the north-eastern part of Africa, popularly known
as the Horn is regarded to be a gate way of investment opportunities
due to the availability of natural resources, good power supply
and communication facilitities, political stability, investor-friendly
policies, relatively cheap labor, easy access to markets, incentive
bonanza etc.
Hence, over the last eleven moth (1996E.C),
the Federal Investment commission has licensed about 810 projects
with an out lay of 11 billion 255 million birr. This designates
a clear growth rate compared to that of 1995 E.C. with regard
to foreign investment, the figure for the last eleven months
report about 303 projects with an out lay of six billion and
60 million Birr. This is indicative of about 80% growth rate
in foreign investment during the 2004.
The main objective of this brochure is therefore,
to clearly exhibit the diversity of the investment opportunities
in the country. The brochure has basically been prepared with
the intention to purely illustrate the wide sectoral scope of
opportunities to further enhance new investment initiatives
in Ethiopia. Come and capitalize on its vast investment opportunities.
The Country
Ethiopia is located in the north eastern part of Africa; popularly
known as the horn of Africa. Ethiopia is bonded on the east by
Djibouti and Somalia, on the north and north east by Eritrea,
on the south by Kenya and on the west by the Sudan.
It is a country of great geographical diversity.
Besides being located with in the tropics, it also has great physical,
altitudinal and climatic variations which endowed it with fertile
soils, flora and fauna. A large part of Ethiopia comprises of
high plateaux and mountain ranges dissected by fast rushing streams
that are mainly tributaries of huge rivers such as the blue Nile,
Awash Bro- Akobo, Omo tekkeze and Wabe Shebele .
Climate
Ethiopia has three principal climatic zones, namely, (a) tropical
rainy region, having an altitude of over 2500 meters above sea
level (b) dry climatic region of hot low land lying below 1500
meters above sea level ( c) warm temperate wet region lying between
1500-2500 meters above sea level.
Moreover, Ethiopia’s mean annual rainfall ranges
from less than 100mk over its northeastern parts, to an excess
of 2800mm over its south western parts. Hence, the country’s annual
average rainfall distribution remains regional varying in amount,
space and time, as the rain moves from the south west to the north
east of the country.
Resource
Ethiopia is also a county with great natural potential. The country
is a land blessed with fertile solis, great rivers (huge water
bodies), favorable climatic features, vegetation and immense mineral
resources. Ethiopia is predominantly agricultural, which remain
to be the basic source of the national economy.
Thus, agriculture provides 45-5 percent of the gross
The People
They are peoples whose life style is greatly influenced by topographic
& climatic variations of their country, religious, cultural
and historical heritages that enabled the country to be home of
mosaic of nations, nationalities and peoples.
Infrastructure
The government of the FDRE is well aware of the crucial importance
of infrastructure necessities to attract foreign direct investment
in to the country. Besides, facilitating quality infrastructure
services in primary for efficient operations of the private sector
and enables to take role in the global market there by attracting
foreign direct investment. Hence, the Ethiopian government has
been and still is trying its level best to attain its infrastructure
development programmes in the fields of energy, roads and telecommunication
sectors.
Transport
Highway transport system is the most important
means of communication in the country. High way transport thus
provide over 90 percent of the passenger and freight transport
services in the country
Addis Ababa, the capital is linked with important
cities, towns and to agriculturally, commercially and industrially
active centers of the country both by asphalt and gravel roads.
International high ways also link Addis Ababa with neighboring
countries such as Djibouti, Eritrea, Kenya and the Sudan.
More over, the Ethiopian Air lines, offers excellent
passenger and cargo air transport services. Its international
flights link Ethiopia with about 50 major cities in three continents;
Africa, Asia and Europe. The EAL has extensive domestic net works
serving in about 26 air ports. The country has international air
ports. Its modern fleet include Boeing 767 and 757 jets for international
flights; ATR-42 and Boeing 737 jets for domestic flights.
Rail ways and ports
Ethiopian makes use of the port of Djibouti and
has a limited rail service stretching bout 780Km to link Addis
Ababa with the port of Djibouti via Dire Dawa and Nazareth in
the east of the country.
Port Sudan is an other external trade route alternative
in the north western part of the country. The port to offer service
in the future. In line with, the Ethiopian shipping lines provides
import-export and coastal carrier services. Cargo handling, harbour
facilities and services are provided by Maritime and transit services
Corporation. Private transit companies also offer similar services
in the sector
Telecommunications
Ethiopia’s telecommunication facilities are relatively
efficient by sub-sahara African standards designating marked day
to day improvements
Direct microwave links connect all regional cities
and several other smaller towns have automatic telephone service.
Besides, excellent international communication links are maintained
via two satellite earth stations, providing telephone, telex,
fax internet and television services, digital data network, pre
and post paid mobile telephone and coin box international telecommunication
services.
There also exist a microwave link with neighboring
Kenya, Djibouti and the Sudan. Moreover, digital telephone exchange
services have been installed to facilitate up-to-date services.
The Ethiopian Telecommunications corporation (ETC) has taken an
number of measures to create an enabling investment climate in
the country the corporation is also planning to enhance it capacity
n terms of capital, technology and management, creating strategic
partnership through transferring partial ownership if the public
operators to an international company or a consortium.
The Ethiopian postal service and private courier
agencies also provided postal services for both local and international
contacts (including sky-pac facilities).
Power supply
Ethiopia has enormous hydropower and promising geothermal energy
resources. It hydropower potential is estimated to range from
15,000-30,000 MW the topographic features of the country at least
allow twenty-five percent of this potential to be used economically.
Presently, the total amount of electric power generated is only
two billion kwh/a which is much less than two percent of the country’s
natural potential. In Ethiopia, electricity is relatively by far
cheaper.
Education and health
Ethiopia’s education system produces well trained skilled and
semi skilled technical and business personnel. The country’s universities,
colleges and technical institutions graduate professionals, semi
professionals and technically skilled labour force to meet needs
of the business sector. Thus, thousands of primary, and secondary
schools lay the corner stone for human development.
The Ministry of Education has recently been trying
to increase the intake capacity of higher educational institutions
both at graduate and post-graduate levels. Private universities
and colleges have also began flourishing in the capital and in
the regional cities as well. Moreover, the New Education policy
and Training policy is also aiming at providing skilled and productive
labour force that contribute to the national economic development.
To this effect, the Federal government has given due special consideration
for the expansion and facilitation of technical consideration
for the expansion and facilitation of technical and vocational
education and training programmes to meet the immediate needs
of the country.
As regards health, urban centers have reasonable
number of hospitals, health centers and clinics. Regional governments
have also substantially increased their budgets to further raise
the capacity of health service sector.
| 