Category: Business

Tariff free trade launch program was held at Bole Lemi Industrial Park for investors engaged in industrial parks to supply their products to the UK tariff-free market, according to Industrial Parks Development Corporation(IPDC).

The inauguration program was held to allow manufacturers from developing countries to supply their products to the UK market tariff-free.

Nigel Huddleston of the United Kingdom Ministry of Commerce, who was present at the opening of the program, said that the trade program for developing countries will start in 65 countries of the world and 37 of which are African countries.

He added that it will help the manufacturers engaged in the production of garment, textiles and other manufacturing sectors in Ethiopia to supply their products to the UK market tariff free.

CEO of IPDC, Aklilu Tadesse said that the corporation has been searching for market options in cooperation with other stakeholders to address the market problems faced by investors working in industrial parks in connection with the cancellation of AGOA.

This opportunity is a demonstration of the results of the work done to facilitate a comfortable environment for investors to continue with their engagement and also get other market destinations which are in the process, he added.

Source: Ethiopian News Agency

Accessing finance for Micro, Small, and Medium Enterprises (MSMEs) needs to improve massively to realize the nation’s long-term ambitions in the sector, Minister of Agriculture Girma Amente said.

Opening the half-day workshop on access to finance for MSMEs on Monday, Girma said that ministry of agriculture identifies access to finance as a key pillar in the 10-year development plan under creating enabling environment for development of the agriculture sector.

Even though the contribution of agriculture is very immense for the economic development of the country, the focus and coverage it obtains in terms of financial accessibility is weak, he affirmed.

For the minister, sufficient financial accessibility is crucial for the agriculture sector to meet the overall ambitions of the nation as working on the linkages among water, land and human resources is also pivotal.

Similarly, Vice Governor of National Bank of Ethiopia (NBE) Solomon Desta stressed the crucial role the agricultural sector plays for the nation’s economic growth.

The vice governor also stated the policy and strategy issued by NBE need to enhance access to finance to the sector.

One of the policy directives which the NBE has put an obligation on commercial banks to avail at least 5 percent of the loan disbursement to enterprises in the agriculture sector, it was indicated.

CEO of Agricultural Transformation Institute (ATI) Mandefro Nigussie said for his part that despite significant efforts by the government of Ethiopian and development partners to improve MSMEs’ access to finance, the financial market is under-developed in Ethiopia.

So, he added MSMEs are suffering from limited access to finance which is stifling the sector’s ability to contribute towards the country’s economic development and generate higher employment.

Accordingly, major objectives of the workshop are to discuss the challenges and issues that are constraining the Agri-MSMEs operation in accessing finance, explore best experiences, obtain recommendations among others.

The half-day workshop was held in the presence of high-level federal and regional government officials, public and private financial institutes, agri-businesses SMEs among others.

Source: Ethiopian News Agency

The emerging coffee company, Wild Coffee Ethiopia, has won the Africa Food Awards as one of the rising star companies of the year, the Ethiopian Embassy in Kenya disclosed.

In a ceremony which took place yesterday, Managing Director of Wild Coffee Ethiopia, Gezahegn Mamo, received the award at a ceremony held at Safaripark Hotel in Nairobi.

During the occasion, Gezahegn announced that the company will open the first international wild coffee tasting house in the capital city of Kenya very soon.

Over 50 African companies received different awards in various categories at the recognition ceremony.

Since its first edition in 2017, the Africa Food Awards celebrates people, new product innovations, sustainability initiatives, and leading companies in Africa’s food industry.

The award has become sub-Sahara Africa’s most respected food industry award.

Source: Ethiopian News Agency

The Ethiopian Embassy in New Delhi has taken part in the Exim Bank Conclave on India-Africa Growth Partnership organized by the Confederation of Indian Industry from 14 to 16 June 2023.

In his opening remarks, External Affairs Minister S. Jaishankar stated that India’s development partnership with Africa will have a strong focus on digital, green economy, healthcare, food security and water, in tune with the pressing needs and priorities of Africa.

“For India, and it is important that our African partners appreciate this, the rise of Africa is key to global re-balancing,” he added.

According to the Ethiopian Embassy in New Delhi, the Ethiopian delegation briefed Indian investors on trade and investment opportunities.

Ethiopia’s Ambassador to India, Demeke Atnafu, also conferred with CEO and Founder of IRIS Business, S. Swaminathan, on the current status of FinTech Initiative in Ethiopia and its opportunities.

Source: Ethiopian News Agency

Favorable conditions have been created for investors in all the eleven industrial parks in Ethiopia, according to the Industrial Development Parks Corporation (IDPC).

In an exclusive interview with ENA, Corporation Marketing and Communication Department Head Zemen Jonedi, said efforts have been exerted to create conducive situation in the global standard industrial parks.

More investors in various sectors have shown interest in engaging in the parks, following the Pretoria peace agreement, he added.

Accordingly, some 20 investors with over 407.42 million USD have signed agreements to engage in the industrial parks in the past 9 months.

Zemen further said electric power supply, infrastructure, and one-window service for all kinds of services is made available in the parks.

“The Industrial Development Parks Corporation is providing one-window service for both foreign and local investors who invest in the parks. The industrial parks have essential and adequate electric power and have market access as well,” he stated.

According to the head, there are various monetary and non-monetary incentives for both foreign and local investors that operate in the industrial parks and the Dire Dawa Free Trade Zone.

For instance, Zemen said that an investor who works in industrial parks is allowed an income tax relief of up to 10 years on average, and companies developing industrial parks are given income tax relief of up to 15 years.

Investors in industrial parks are also exempt from tax on export products and other taxes, and they have the right to import products to be used as raw materials duty free.

Being a member of the Multilateral Investment Guarantee Agency (MIGA), Ethiopia has signed various international investment protection and guarantee agreements, he pointed out.

Foreign investors can remit their income from profit and other incomes in foreign currency. Investors who export their products are not subject to any export price control on the export product, he added.

Zemen further pointed out that “industrial in industrial parks are working in areas of textile, apparel, agro-processing, manufacturing, and pharmaceuticals. Following the peace agreement, the investment interest and flow is increasing and the corporation is providing essential services to the investors.’’

Source: Ethiopian News Agency

The liberalization underway in Ethiopia would enable the country to attract international investors, players and new markets, Nairobi Securities Exchange CEO Geoffrey Odundo said.

In an exclusive interview with ENA, Geoffrey Odundo said “East Africa especially is looking for the opportunity to do cross-border trading with Ethiopia. I think the economic transformation, especially the liberalization of various sectors, is a very good development if you are looking forward to how to be part of it.”

According to him, investors are very excited about the economic reforms being undertaken in Ethiopia to open it up, to allow international investors, players and new markets to come into the country.

The CEO noted that the financial reform in Ethiopia is in a very good advancement.

“Opening up the financial sector is extremely good to bring in especially international investors, bringing in companies which are going to raise money a lot faster, a lot easier, more transparency and governance of running of these companies because they become public.”

Putting that all together, what you are creating is a very transformative economy to take Ethiopia to the next level, he elaborated.

Commenting on the liberalization of the banking sector in Ethiopia, Odundo said “I think liberalization of the banking sector is beneficial to Ethiopia because you are able to bring in highly successful banks to come and invest in Ethiopia and when these banks come they bring in new products, new capital to the country and they are bringing in new businesses.”

The other good thing about opening up the financial sector is bringing banks that know how to do a lot of cross-border trading.

So, you find a lot of people who want to trade with Ethiopia and are able to trade a lot easier because they are coming with financial institutions that have good regional presence, he added.

For the CEO, that encourages a lot of cross-border trading, bringing in best international practices because you are bringing in banks that have been there for centuries.

He further pointed out that whether the institutions are coming either in joint venture with the local banks here or coming here as subsidiary, they are going to scale up the capacity of the local people.

Financial sector liberalization, which is opening the financial sector to foreign investment, has been shown to have multiple benefits for developing countries as it promotes financial inclusion, competitiveness, and innovation.

Source: Ethiopian News Agency