Ethiopia seeks investment from India

Written by Huma Siddiqui | New Delhi | Updated: Jan 31 2011, 04:05am hrs
Ethiopia is becoming a major centre for Indian investment in Africa as companies seek new ventures in mining, textiles, leather, education and the hospitality industry in one of the worlds most oldest countries. The Ethiopian government has introduced new policies aimed at getting more investments in mining and increasing the sectors contribution to the country's funds.

Senior officials have said that the African country has identified development of the mining sector as one of its leading economic aims, with a target of ensuring that the sector accounts for 10% of gross domestic product in the next five years.

The Ethiopian government is aiming to grant about 50 mineral exploration licenses yearly. Seeking more investments from India especially in the mining and tourism sector, a high level delegation from that country will discuss the opportunities available during the Ethio-India Trade and Investment Forum. Accompanied by minister of trade Abdirahman Sheik Mohammed, and Amin Abdulkadir, minister of culture & tourism, minister of mining Sinkinesh Ejigu, will have an interactive meeting with the industry captains at the forum organised by Ficci on Monday in New Delhi.

According to MEA officials, Ethiopia has emerged as a politically stable, economically sound business destination with various macroeconomic reforms taking place. Many Indian companies have already established strong business presence in the Eastern African sub-region using Ethiopia as the base.

This forum would be an opportunity for the Indian companies to gain an insight into the business opportunities in Ethiopia from the who's who of Ethiopia and to also meet the Indian companies who are already established in Ethiopia and have become Indian success stories, Ficci officials told FE.

There is potential for increased trade and joint ventures in areas such as agriculture and agro-processing industries, floriculture, commercial farming of oil seeds, pulses and lentils, textile and garments, leather and leather products, IT sector, drugs and pharmaceuticals, packaging and woven sacks, etc.