Monday, 28 May 2012

The rapid emergence of African economies is very heart warming to see, and with ever increasing populations and a growing skilled workforce multinational businesses are starting to look at setting up manufacturing concerns. African entrepreneurs both within the continent and in the diaspora need to be part of the growing expansion and not wait until things become over competitive.

Taking a look at Ethiopia we see an economy that is growing at a rapid pace with Ethiopians in diaspora returning home to be a part of the huge potentials. They have a huge mining industry and massive tracts of arable land. The Ethiopian Investment agency reports that FDI to Ethiopia is increasing.


06 May 2012

Addis Ababa, May 5 (WIC) – The Ethiopian Investment Agency (EIA) said Foreign Direct Investment (FDI) flow to Ethiopia has shown a remarkable increase in the last nine months.

Agency Corporate Communications Director, Getahun Negash, attributed the increase to the improvement in the financial sector, promotional works and smooth licensing process.

Getahun told WIC that some 95 per cent of the country’s capital budget, about 61 billion birr, is covered from the FDI.

Chinese and Indian companies take the lead in the FDI activities of Ethiopia, he said, adding companies from Saudi Arabia, Yemen, Israel, UAE, Europe and the USA are also investing in the country.

A number of investors are also coming from African countries such as Sudan, South Africa, Nigeria, Egypt and Kenya. The African investors, as Getahun stated, are engaged in agro processing and manufacturing sectors.

More significantly, the returnee Ethiopian Diaspora from Europe and America are engaging in various investment sectors, he further indicated.

He said the agency issues licenses for foreign investment projects based on the feasibility of the projects and the priorities of the Growth and Transformation Plan (GTP).

Manufacturing, agriculture and service are among the sectors that the GTP gives priority, he said, adding selection of foreign investors will also be done on the basis of the job opportunities they will create, their export potential and their engagement in an import substitution.

According to Getahun, since September 2011, 123 companies with over 11 billion birr combined capital have started operation, thus creating job opportunities for over 31, 000 employees.

The Ethiopian market is ready for private equity funds and i know there are Africans, including African Americans, who have the know how and are already involved in private equity in Europe and in the States who can set up private equity funds. Its a question of being aware of the opportunities and yes there are risks but there are huge profits to go with the risks.

Schulze Global Starts $100 Million Equity Fund for Ethiopia

Ethiopia’s first private-equity fund will see investments of $100 million in the Horn of Africa nation, said Gabriel Schulze, chief executive officer of Beijing-based Schulze Global Investments, which is managing the fund.
“The market is ripe and ready for private equity capital,” he told reporters in the capital, Addis Ababa, today. “We believe Ethiopia presents opportunities across the board.”
CDC Group Plc, the U.K.’s development finance institution, will invest $15 million in the fund, while the Schulze family will commit $10 million, said Schulze. It will reach its limit of $100 million by September, he said.
The $100 million will be put into as many as 22 Ethiopian companies in agriculture, manufacturing, education, health care, real estate, energy and tourism, Schulze said.
Government policy and development of private industries makes Ethiopia ready for the investments, he said.
“In the past five years there’s been a noticeable development in private sector support and foreign investor support,” Schulze said.

The Ethiopian government must be commended for making the country attractive for foreign direct investment and it is also trying to balance giving away chunks of its mining licences and land to foreign businesses as well as encouraging domestic and regional investment.

oh and if you just want somewhere exotic and peaceful to relax with your family or friends try staying at the Babogaya ViewPoint Lodge about an hours drive from Addis Ababa. Rustic and charming.