Ethiopia Attracting Labor-Intensive Companies, Says Investment Commission

Addis Ababa, February 15, 2019 (FBC) –As a result of the ongoing political changes, Ethiopia is attracting many labor-intensive foreign companies, said Abebe Abebayehu, Commissioner of Ethiopian Investment Commission (EIC). In an exclusive interview with FBC, he said the companies could also boost export performance of the country and improve work culture of Ethiopians. In order to create fertile ground for investors, works are underway to equip industrial parks with the necessary infrastructure and revise the country’s investment law, the Commissioner said.

Abebe also stressed the need to undertake an economic reform to create more employment opportunities for the youth through maintaining the sustainability of the economic growth and ensuring that the benefits of the people are fair. Among the companies attracted by the ongoing reform process are the German automaker Volkswagen, and the Abu Dhabi-based property developer Eagle Hills, among others. Last month, Volkswagen signed a memorandum of understanding (MoU) with the Ethiopian Investment Commission (EIC) to set up an automotive industry in Ethiopia.

Volkswagen will focus on establishment of a vehicle assembly facility, localization of automotive components, introduction of mobility concepts such as app-based car sharing and ride hailing as well as the opening of a training center. Similarly, Eagle Hills ventured into the Ethiopian market last November with the launch of La Gare, boasting one of the largest mixed-use developments in Ethiopia and offering more than 4,000 residences.

He said floriculture companies are on process to commence development in Amhara regional state in an area called Kunzila, adding new investors are also desirous to engage in different investment sectors in Oromia and other regional states.