29 September 2017

Ethiopia: State Luring More Investors

Amhara State Investment Commission has given investment licenses to 1,860 investors who run various projects with an aggregate capital of 36.4 billion Birr this fiscal year.

The investment projects will create 278,462 jobs to citizens when go fully operational, Yehenew Alem, Marketing Promotion and Public Relations Director with State's Investment Commission, told The Ethiopian Herald.

"Among the stated investors, 830 of them have been engaged in construction, while the remaining 517 and 299 investors in industry and agriculture sectors respectively."

The Director pointed out that incentive packages that are being provided both at federal and state levels have been drawing more investors to the state.

"We offer various incentives to investors. For instance, if they show keen interest on investing in the manufacturing sector, they will be granted with income-tax holiday that lasts from two to nine years. For those who plan to invest in information technology and power generation, they are entitled to enjoy a five-year income tax holiday," Yehenew emphasized.

He also made clear that investors engaging in construction, tourism and hospitality areas are allowed to import tax-free construction materials and machinery as incentive by the Federal Government.

Meanwhile, construction of new industrial parks will be commenced this year in Bahr Dar, Debre Berhan, Arerti, said Yehenew.

He stated that 19 hectares of land has been allocated by the state government to investors who seek to tap opportunities in agro-processing, manufacturing and horticultural sectors in the aforementioned towns.

"There is huge investment potential in our state. There is fertile land, affordable labor and conducive climate. Taking all these advantages into consideration, we have intended to build additional industrial parks dedicated to the production of export-oriented and value-added items."

Besides, 2,900 hectares of land have been allocated in 20 major industrial towns of the state to investment, and 800 standard sheds have been built in major cities like Bahir Dar, Gonder and Debre Berhan, the director added.

Ministry of Industry, Agro-processing Industry Development Director, Dandena Chemeda for his part said the cornerstone for the construction of Bure Integrated Argo-processing Industrial Park has been laid. The park will process milk and milk products, fruits and vegetable products and cereal products for domestic and export consumption.

"Bure will be gigantic agro-processing industrial park in the country. It will create huge opportunity to nearby farmers to supply their products for the industry. The investors will have access to abundant raw material and human power as well."

He added that basic infrastructure like roads; electricity, water and banks are under construction with a view to commencing the construction of the park.

It was learnt that Ethiopia has been striving to realize its ambition of building industry-led economy through constructing industrial parks in various areas of the country. The Hawassa, Kombolcha, Bole Lemi and Mekelle industrial parks have already started to lure domestic and foreign investors while creating ample jobs for hundreds of thousands of Ethiopians.

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