Ethiopia, Korea Interested in Boosting Trade, Investment Relations
ENA November 29/2019 Ethiopia and Korea are interested in scaling up their strong bilateral relations in trade and investment, according to the Ministry of Foreign Affairs.
Ethio-Korea business forum was held in the presence of dozens of Korean business persons and hundreds of Ethiopians in Addis Ababa today.
During the occasion, Foreign Affairs State Minister Aklilu Hailemichael said Ethiopia attaches great importance to its partnership with South Korea in mainly investment, trade and technology transfer.
According to him, the country has got abundant natural resources with a competitive package of incentives to investors who want to engage especially in textile, leather, agro-processing, and pharmaceuticals.
It has also a clear industrialization policy that aims to achieve economic growth through agricultural modernization.
If Korean investors are interested to engage in textile, apparel, renewable energy, information, and communication technology as well as pharmaceuticals, the government will support them to benefit more, Aklilu stated.
Korea’s Ambassador to Ethiopia, Lim Hoon-Min said on his part the two countries have enjoyed an excellent relationship, and this will be further strengthened in areas of trade and investment.
Anchor Korean investors have shown the highest preferences to invest in Ethiopia, the ambassador, said, adding that the sweeping reforms under the leadership of Prime Minister Abiy would be encouraging and Korean investors see the situation positively.
Ethiopia is profitable due to its strategic location, Hoon-Min noted.
Korea exports medicine, electronics, and vehicle to Ethiopia while Ethiopia exports coffee, oilseeds, and sesame.
Alibaba founder to talk business with Ethiopia
Jack Ma, the co-founder and former executive chairman of Alibaba Group, is coming to Ethiopia. According to sources, he is to lead a large business delegation and will be arriving in the capital tomorrow afternoon.
In the capital, he is to meet with Prime Minister Abiy Ahmed (Ph.D.) on Monday morning at Skylight Hotel and on the same day; he is to meet with a number of local startup owners at a round table discussion and have an audience with Minister Getahun Mekuria (Ph.D.) of the Ministry of Innovation and Technology.
Several heads of local startups confirmed to The Reporter, that they were contacted days ago and invited to meet one of the most influential business leaders in the world, with an expanding interest within the African continent that is a latecomer to the concept of startups and free enterprise.
Earlier this year, Minister Getahun met with Jack and discussed ways he and his Alibaba Group could help build the nation's infant digital economy sector.
This followed a visit by Prime Minister Abiy Ahmed (Ph.D.) to the headquarters of Alibaba to discuss investment within Ethiopia earlier this year.
The 55-year-old Chinese entrepreneur, who resigned from his position at Alibaba this year is no stranger to the African continent, making frequent visits to nations such as Rwanda, South Africa, and Ghana, meeting with young entrepreneurs and being the donor of the Africa entrepreneur Prize that grants 1 million USD to young African entrepreneurs with good and practical ideas.
While Ethiopia is no stranger to the interest of China and Chinese investment, this is to be China's most prominent businessman first official visit to the nation and there is unconfirmed speculations that he might be interested in government-held enterprises as Ethiopia is set to liberalize some of its sought after institutions and look out for foreign investors.
November 23, 2019
Source: - Reporter
Alibaba is ready to open the second branch of Africa in Ethiopia
Alibaba company is one of the best digital marketing organization; it gains up to one trillion dollars per year and open job opportunity for 40 million youths also, in Africa this company have the branch only in Rwanda. Now this company is ready to open the second branch of Africa in Ethiopia.
It is announced that the opening of this branch in Ethiopia helps small businesses to use digital marketing and open the way for the highest industries to come to Ethiopia.
The founder and the director of Alibaba Company come to Ethiopia by the invitation of Ethiopian Prime Minister Dr. Abiy Ahmed and sign the cooperation consensus with Ethiopia.
Source: - IPDC
African Industrialization Week aspires industries feeding CFTA market
The African Union, along with various partners, is scheduled to hold the African Industrialization Week (AIW) in Addis Ababa from November 18-22, 2019.
The AIW, which aims to supply the demand expected to be created by the largest trade area agreement in the world, the African Continental Free Trade Area (AfCFTA), has “Positioning African Industry to Supply the African Continental Free Trade Area (AfCFTA) Market” as its theme.
The statement that the African Union Commission’s Department of Trade and Industry (DTI) sent to The Reporter regarding the event reads, “with the AfCFTA ushering in a market space of at least USD 3.4 trillion, and a consumer base of 1.27 billion, there is no doubt that moving the continent’s industrial production frontier, becomes critical, as enterprises tap into large scale opportunities on the back of free trade. The AIW 2019; through leveraging public-private dialogue platforms, seeks to: engender industry policy coherence in Africa; enhance effective engagement of key stakeholders by the AUC on industrialization and trade-related subjects in the context of the AfCFTA.”
This year’s event, the second to the inaugural AIW held in Niger last year, focuses on exploring tools; and business instruments that strengthen the industry’s capacity to compete and innovate. Hence, it is expected to be attended by more than 1,000 multi-stakeholder delegates drawn from the private sector, public sector, civil society, development partners, trade and industry think tanks within and outside Africa. The sectoral profile of the Business Start-Ups includes high tech companies, manufacturers, tourism, Medicare, automotive, textiles, fertilizers, and the financial sector.
“The event is expected to provide a public-private engagement dialogue platform that seeks to enhance the interface between the industrial policymakers; AU Member States; Private Sector representatives; Regional Economic Communities; AU Commission; Africa Korea Foundation; Academia; Civic society; Research Institutes and Think Tanks; and financial institutions such as Afreximbank and Africa Development Bank,” the statement adds, indicating that “it will also promote the implementation of AU continental frameworks such as; the Accelerated Industrial Development of Africa (AIDA); the Africa Mining Vision (AMV), the SME Strategy; the Boosting Intra-African Trade strategy (BIAT); and the African Continental Free Trade Area (AfCFTA).”
The agreement for the establishment of the AfCFTA entered into force on May 30, 2019, with the ratification of the same by 24 nations. The operational phase of the AfCFTA was subsequently launched during the 12th Extraordinary Session of the Assembly of the African Union in Niamey, Niger on 7 July 2019. The AfCFTA will be governed by five operational instruments, i.e. the Rules of Origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payments system and the African Trade Observatory.
Source: - Reporter
IFC injects EUR 20 million in Soufflet Ethiopia
Malt maker to fully source barely from local farmers
The International Finance Corporation (IFC), a member of the World Bank Group, has financially backed Soufflet Malt Ethiopia – a subsidiary of the French-based Group Soufflet – with EUR 20 million to help expand the company’s malt production and for its role involving some 40,000 smallholder farmers in the value chain.
The investment involves both IFC and the Global Agriculture and Food Security Program (GAFSP) to which IFC serves as the private sector window investing EUR 10 million each, to enhance the production capacity of Soufflet Malt.
Accordingly, the production target is expected to result in 110,000 metric tons of malt per year. In fact, last year, it was announced that the initial capacity was set at 60,000 tons per year. The major international player in the global malt market has agreed to join Ethiopia's malt industry.
It can be recalled that last year, investing for the first time in Sub-Saharan Africa, Soufflet had signed a land-lease agreement with Industrial Parks Development Corporation (IPDC) together with the Ethiopian Investment Commission (EIC) and the Agricultural Transformation Agency (ATA).
For the initial project, Soufflet was expected to invest USD 50 million and install the malting plant at the Bole Lemi-II Industrial Park, which was to be finalized and commissioned this year. However, it was a challenging task for the company to commence its project when the land was not yet provided by the government. What would make it more challenging, according to Soufflet, was the requirement to work with 40,000 smallholder farmers. Nevertheless, the company sees opportunity in Ethiopia produces some two million tons of barely per year.
Currently, 70 percent of malt is imported annually, leaving the beer industry short of supply. The malt maker will source its barely entirely from local farmers and 80 percent of the barley producers will be smallholder farmers.
It is to be recalled that Christophe Passepande, CEO of Soufflet Ethiopia said that “Ethiopia is the largest producer of barley in Africa. Two million tons of barley is produced.”
Soufflet was expected to launch its first production this year and supply the starving beer factories. However, it was only in March that the company was able to lay the foundation to begin the groundwork.
Currently, Assela and Gondar, the only malt factories in the country, have started to source from local farmers. Aiming to expand barley and malt production in Ethiopia, ATA had designed a business plan to encourage malting companies around the world to come to Ethiopia; and Soufflet was convinced to come and invest.
Assela Malting Factory alone buys from 20,000 farmers and the likes of Diageo and Heineken source barley from local markets via farmers’ cooperatives. The coming of Soufflet will help Ethiopia no longer depend on imported raw barley.
Gruope Soufflet is part of a family-owned group mostly engaged in barley, rice wheat, and pulse business. It operates some 27 plants in Europe, Asia, and South America and Ethiopia will be joining 22 countries.
Back in 2017, the Belgian Boortmalt acquired a 15 hectares plot of land to install a USD 60 million malting plant in Debre Berhan Industrial Park, Amhara Regional State, which is in the making.
Source: - Reporter
IPDC wins FEMOZA award
INDUSTRIAL PARKS DEVELOPMENT CORPORATION (IPDC) has won the prestigious FEMOZA award by FEMOZA - The World Free & Special Economic Zones Federation.
The Board of FEMOZA in a recent message sent to IPDC confirmed the selection of the IPDC for the FEMOZA Award during the FEMOZA Awards ceremony scheduled on November 14, 2019.
The award will be handed over in the SU-Meet in Monaco, a sovereign city-state on the French Riviera in Western Europe during November 13-15, 2019.
“On behalf of the Board of FEMOZA, we have the honor and pleasure of confirming that IPDC has been selected to receive a FEMOZA Award during the FEMOZA Awards ceremony scheduled on November 14, 2019,” the statement issued from FEMOZA read.
The Board of the Geneva-based non-profit non-governmental organization working to further free zones around the world to them develop, especially, in emerging nations and countries in transition, earlier nominated IPDC for the award.
FEMOZA’s functions involve offering experience, issuing norms, rules and processes, training professionals and assisting with technical, legal and economic support for free zones around the world, helping them set up, develop and grow.
It ensures free zones such as export processing zones (EPZ), Industrial Parks, services, tourism, logistics, freeport, bonded warehouse through sharing experiences as well as information and technology.
Studying the changes in international law which may affect or restrict free zone facilities and operational advantages, FEMOZA held protect free zones so that they keep revitalizing the economy.
The organization has selected IPDC for the award as Ethiopia Industrial park development corporation is a winning combination with its competitors in Eco-friendly Industrial park, business-friendly environment and cost structure that can give the investors best returns for its industrious, selecting strategic location, regional connectivity, and worldwide access, IPDC is committed to boosting industrial parks through the highest standards of professionalism; to drive industrialization, promote exports, and create employment opportunities so as to contribute to the country’s overall development goal of the middle-income status. In realizing the mission and vision IPDC adheres to the highest level of integrity, professionalism, the natural and physical environment and the use of efficient and effective resources and client/customer satisfaction. IPDC is rapidly growing, it developed 12 industrial parks in which 7 of them are operational and generated more than 252 Million USD exports, more than 55,000 direct jobs. It’s able to contribute to the macro-economic value of Ethiopia within 5 years of establishment. IPDC follows the principle of eco-friendly development such as a zero liquid discharge system.