The Hindu Business Line : Ethiopia details sops for investors

Seeking Indian investments in Ethiopia, one of the "Horn of Africa" countries, where a private investor can invest on his own or jointly with a domestic partner, Ms Gennet Zewide, Ambassador, Embassy of Ethiopia in India, said here on Monday that many new investor-friendly policies had now been adopted by the Government there.

The areas where investments are sought include oil and gas, agriculture, particularly in coffee and tea, cotton, oilseeds and pulses, textiles, tannery and leather goods, glass and ceramics, cement, chemicals, building materials and mining products.

Making a presentation on emerging business opportunities in Ethiopia at a workshop on `India-Africa project partnership: Showcasing opportunities', she said investor-related business meetings with the Prime Minister were held every two months to sort out problems.

Foreign investors, besides profit tax exemption for certain number of years, also get customs duty exemption, as export is encouraged by the Government. They can also avail themselves loans on soft terms.

Favourable environment

Pointing out that Ethiopia now had a highly favourable economic environment to welcome foreign investments, especially in agri-processing sector, Ms Zewide said her country had the potential to emerge as the second largest market (70 million strong) in Africa, after Nigeria, with growing purchasing power among the people.

Describing coffee as Ethiopia's gift to the world, Ms Zewide said the favourable agro-climatic conditions strongly favoured tea growing. She also sought investments in cotton, considered a major Ethiopian cash crop.

Among the positive developments in Africa now include large increases in oil production in Angola, Chad and Equatorial Guinea and recovery in agricultural output in Ethiopia and Rwanda.