High number of foreign investor delegations visit Ethiopia this week

Over the week, several delegations with investment interests in Ethiopia have visited the country according to Arkebe Oqubay (PhD), Special Advisor to the Prime Minister, who said that about five delegations from different countries have also met top government officials.

The delegations were from China Hunan province, South Korea, and clothing retail giant H&M. At a discussion held with Chinese investors at Eliliy Hotel, Arkebe said that the country has caught the attention of international investors.

Investors from Hunan province’s heavy equipment industry, represented by officials from the province, expressed their interest in investing in the country throughout their visit, which includes site visits and meetings with top officials in Ethiopia.

About a month and half ago, a delegation from Ethiopia visited the province and met the province’s officials and companies’ representatives.

Fitsum Arega, Commissioner of the Ethiopian Investment Commission (EIC), told the media that the Chinese visit was conducted as a follow up to the Ethiopians’ visit.

Sanny, an earthmoving equipment manufacturer, Tebian Electric Apparatus Stock Co. Ltd. (TBEA), producer of transformers and other energy products, and CGCOC a civil contractor engaged in several private and public big projects in the country, are the companies that have agreed to establish an industry park in Adama.

As per the deal with government, the stated companies will be the lead developers of the park to be named Ethiopia Hunan Equipment Manufacturing Industry Park, to be located on 300 hectares of land. The Chinese Export Import (EXIM) Bank has also agreed to provide USD 1 billion to establish the park.

“Sanny and TBA will be anchor investors in the park, while others will be linked with the two major firms to supply their product for local and international markets,” Fitsum said.

He added that these companies are engaged mainly on manufacturing import-substituting products.

The Industry Park Development Corporation (IPDC), a state owned park development enterprise, is in the process of commencing the park’s development in Adama, 90km east of Addis Ababa. The park will mainly accommodate textile manufacturers.

Chinese Jiangsu Sunshine Group and Kingdom, and the South Korean Yanguan Corporation have also agreed to join the Adama Park. Sunshine, which will produce wooland Kingdom to produce Lynen fabric, will invest on 80 and 30 hectares of land respectively at the park.

“The Korean firm shall develop 100 hectares, but it is very big company that will need more land in the future,” the commissioner added Fitsum said that the IPDC Park in Adama is not like the Hawassa Park; in Adama, the state corporation shall develop land, while the companies develop the buildings on their own.

 

Source Capital Ethiopia June 3, 2016

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