Friday, June 24, 2011

Fast-growing Ethiopia seeks greater investment from UAE

(June 24, UAE)- Ethiopia, Africa's fastest growing economy, boasting 11 per cent growth, is looking for greater investments from the UAE, a top Ethiopian government official said yesterday.

The UAE's investments in Ethiopia, just $800 million (Dh2.9 billion) in the last seven years, are modest because of a ‘lack of information' about the opportunities available, Tadesse Haile, Ethiopian Minister of Industry, told Gulf News.

Investment opportunities abound in agriculture, mining, infrastructure, manufacturing, tourism in Ethiopia's underserved economy, experts agreed during a seminar briefing UAE-based companies on investment opportunities in Ethiopia yesterday.

Despite the geographical proximity between the UAE and Ethiopia, it is India and China that are leading investments in Ethiopia, Haile said.

In terms of trade, Germany is Ethiopia's top trading partner. "UAE-Ethiopia trade is far behind expectations...There is much to go in this area," he commented.

Ethiopia is Dubai's 71st trading partner with non-oil trade reaching Dh1 billion in 2010, said Abdul Rahman Saif Al Ghurair, chairman of the Dubai Chamber of Commerce and Industry (DCCI) that organised the event.
Investment potential

Ethiopia offers massive opportunities for investors: A large market with a population of more than 80 million, more than 1.14 million square kilometres or the equivalent of France and Spain combined, cheap labour, political stability and access to markets in the EU and US are just a few reasons to invest in Ethiopia, experts said.

Ethiopia, an underserved economy, has undergone a major overhaul in the past 10 years.

It is the fifth biggest economy in Africa — after South Africa, Nigeria, Angola and Sudan — climbing up from 10th in 2003, according to Zemedeneh Negatu, Managaing Partner of Ernst and Young Ethiopia, in a presentation called ‘Investing in Ethiopia: Why now?'

By 2023, Ethiopia's GDP per purchasing power will hit an approximate $500 billion and it is set to become the third largest economy in sub-Saharan Africa, according to an Ernst and Young forecast.

However, political risk remains an issue for investors to consider as Ethiopia shares borders with Eritrea, Somalia and Sudan, he added.

Halcrow Group, a global construction and infrastructure consultancy, is also considering Ethiopia as a prime market for projects in water treatment plants, roads, rail and airports, said Tim Gamon, Development Director in the UAE.  Read more »
Source: Gulf news

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