The role of private investments in expanding economic opportunity, and enhancing nations' GDP is irreplaceable.
In some countries, the impact of private investment for real growth has been greater than that of the public sector investment. The sector has an important role in complementing governments endeavours to accelerate socio-economic developments. Particularly, the socio-economic roles that industrialists play would be more crucial in Ethiopia; a country striving to implement agricultural led-industrialization development strategy.
The contributions of private sector, particularly the industrialists are globally acknowledged in sustaining socio-economic development. The sector has a huge potential both in improving the livelihoods of the people and job creation. It creates opportunities, and increase incomes of the poor. In turn, the sector would generate the revenues that governments needs to allocate to other social services such as health, education and basic infrastructural development.
However, in many developing countries like ours, the participation of the private investments is too low due to various reasons. This would lead to under performance in exploiting the potential in the sector. It would also be the main cause for insufficiency, low initiations for innovation and inadequate job opportunities for citizens. The sum total of such effects would be on investment. Hence, investment will not be sufficiently predicted. No, safe and adequately paid jobs created in the formal economy.
It is cognizant of this fact that the Ethiopian Prime Minister has held a consultative meeting with local and foreign industrialists engaged in the production of agriculture and industrial raw materials yesterday. The main aim of the meeting was to set possible directions and improve the sector through identifying achievements and bottlenecks in the sector.
Obviously, vigorous and sustained economic growth that is fueled by active participation of private investors and entrepreneurship, is needed to speed up the implementation of the development plan. Thus, creating mutual understanding between the government and industrialists would enable them have common position towards nation's development goals and also to look for alternative solutions for possible hindering factors. Truly, it is when competitiveness of the country's industry sector has enhanced that the national development plan can for sure be realized.
In general, the sector contributes a lot to sustain economic growth, decent job creation, more sustainable production processes and technology transfer. Therefore, strengthening partnership with private investors would be an urgent task for the country to ensure fair business transaction, create more middle class society and strengthen better local and foreign market chains.