Addis Ababa — Some 75 Investors with close to 3.8 billion Birr registered capital have obtained licenses to operate in Gondar city and the surroundings during the past five months, according to the city administration.
In an exclusive interview with Ethiopian News Agency, Gondar City Administration Industry and Investment Department Head Bayu Abuhai said the bureau has issued licenses for 75 of the investors interested in investing in agro-processing, large-scale farming, services, manufacturing, and others.
According to him, 33 of the companies have already started production.
The head noted that though Gondar is one of the largest tourist destinations in the country, the city has been lagging far behind in investment attraction and has not yet benefited from the resource.
The instability in the area some years ago affected negatively the flow of investment, he pointed out.
However, the flow of investment has dramatically increased in recent years as the city administration worked together with the community and security forces to solve the problem.
"Gondar is one of the most important tourist destinations in the country, and it is a city where people live in harmony. But conflicts that ensued in the past years had negative impacts on investment. In recent years, however, peace has prevailed and contributed significantly to the investment flow," Bayu stated.
In addition, the city administration has been exerting efforts to promote the local potential and exploit it, according to the head.
The availability of inputs for industrial raw materials in the area as well as the qualified manpower and the strategic location of the city have created favorable conditions for investment.
He further noted that those opportunities have resulted in attracting local and foreign investors, and great interest is aroused in investing in the region during the past two years.
"The investment promotion work carried out by the department has contributed a lot to attracting many local giant companies and investors from the diaspora," Bayu added.
The city administration is reportedly working in collaboration with the federal and the Amhara Regional State to make Gondar a major investment destination.
Some investors on the other hand told ENA that Gondar is particularly suitable for garment and textile industry as well as agro-processing.