Ethiopia
A New Horizon of Hope1

Ethiopia Investment Seminar
June 27, 2023, Tokyo

01

Ethiopia’s Rising economic outlook

02

National Reform initiatives
and government commitment

03

Priority sectors: New growthpotentials

04

Investment Incentives

05

Sustainable National
Infrastructures

06

Investment Administrationand Services at EIC

1.
1 ETHIOPIA: AT A GLANCE>116 million population, 21%living in urban cities, 60%
young and productive
The 3th largest economy in SSA
Africa—GDP reached $127.6
Billion in 2022
The third fastest growing
economy of the millennium—
10% av. growth since 2010

49% literate population

Top/favorable FDI destinationin East Africa—USD 4.3 billion
in 20213

ECONOMIC AND INVESTMENT REFORMS
To sustain the success of the past decade, address emerging challenges
2 and create new opportunities created for private sector development
Correct FX imbalances

Macro economic
reforms

Control inflation

Jobs

Build confidence

Improve access to financeInclusive growth
Poverty
reduction

Ensure debt sustainability

Structural reforms

Ease business constraints

Rebalance growthand enhance
productivity

Sectoral reforms

Address sector-specificinstitutional and market
failures

Five starategic
priority sectors

Creating a pathto prosperity

4Governance: Economic and investment
reforms
Reform and investment committees
Macroeconomic committees
Economic reform steering committee
Private Sector and Investment
Reform Sub-Committee
Aimed to identify the enabling
conditions necessary for the private
sector to take a lead role in driving
the growth and transformation
agenda of the country in the coming
years

Job Creation and Investment
Reform National Steering
Committee
Aimed at facilitating policy andinstitutional coordination andalignment to create sustainable anddecent job creation

National Doing Business Steering
Committee
Aimed at identifying andimplementing structural reforms tobe address challenges of time, costand procedural hurdles businesses
face in their lifecycle

5Investment Policy and legal reforms:
From positive to negative listing–

Manufacturing of weapons, ammunition & explosives
Import & export of electrical energy
International air transport services
Bus rapid transit
Postal services excluding courier services

–
–
–
–
–
–

Freight forwarding and shipping agency services
Domestic air transport service
Cross-country public transport service (seating capacity > 45)
Urban mass transport service (large carrying capacity)
Advertisement and promotion services
Audiovisual services – Motion picture and video recording, production
and distribution
Accounting and Auditing services

Reserved for Joint –Investment with –––Government

Investment
Areas

Joint Investment
with Domestic
Investors–

Reserved forDomestic
Investors

–
–
–
–
–
–
–
–
–

Banking, insurance & microfinance excl. capital goods finance business
Wholesale trade, petroleum & products, wholesale of own products
excluding whole of electronic commerce
Retail trade excluding. retail of & electronic commerce
Import trade, excluling liquefied petroleum gas and bitumen
Export trade of raw coffee, khat, oil seeds, pulses, minerals, hides & skins,
products of natural forest, chicken, & livestock
Hotel, lodge, resort, motel, guesthouse excluding star-designatedTravel agency, travel ticket sales & trade auxiliary, tour operation
Operating lease of equipment, machineries & vehicles excluding
industry-specific
Transport services, excl Railway, cable-car, cold-chain, freight transport,
6

Investment climate reforms
National initiative to improve ease of doing
business launchedStarting a Business

Registering Property

Dealing with construction
permitGetting Electricity

Getting Credit

Protecting Minority
Investors

Paying Taxes

Resolving Insolvency

Trading Across Boarders

Enforcing Contracts

Cross Cutting Reforms: Multi-Agency

80 reforms undertaken
In various areas including:–Elimination of requirements of newspaper publications oftrade name–Lease agreement for business registration and licensing
removed–

Implementation of an OSS service delivery at the Ministryof Trade & Industry;–

Expansion of credit registry information–

Introduction of modern and web-based customs clearance
and tax administration systems;–

Online permit application launched, statutory time limit for
construction permit set,–

Electronic single window on pilot; new web-based customs
management system implemented; service delivery on
main dry ports extended from hours to 16 hours a day; ecertificate of origin implemented
7

Investment Administration Reforms
Broadened EIC responsibilities

Promotion

Targeted to strategic
sectors
Engaged in targeted
investment promotion
including:— Promoting investment
opportunities andconditions to foreign anddomestic investors,— Responding to investor’sinquiries on sectorspecific business
opportunities,
incorporation procedures
and related regulations.

One Stop Service
Including licensing, Visa,
TIN, and other services

Providing Incentives
With tailored investment
incentives

Provide streamlined onestop services including:Approves investment
incentives including:— Issuing investment
permits, business licenses
and construction permits,— Import duty exemption
on import of capital
goods, construction
materials, spare parts,
vehicles, raw materials,
and personal effects,— Notarizing memorandum
and articles ofassociation,— Facilitating exportoriented non-equitybased foreign enterprisecollaborations withdomestic investors.

— Export duty exemption,— Loss carry forward.

Aftercare
SupportSupport for investments
during operation
Provides postestablishment facilitationand follow-up services
including:— Facilitating acquisition ofland and utilities (water,electrical power andtelecom services),— Processing of loans andresidence permits,— Facilitating export trade.

8Regional Integration Reforms❑ African Continental Free Trade Area (AfCFTA)

African Continental Free Trade Area
(AfCFTA)❑ Aim to create a single continental market for goods
and services, with free movement of businesspersons and investments, while accelerating theestablishment of a continental-wide customs union❑ Signature and ratification of the AfCFTA❑ Unlocks market access potential of 1.2 billion
people❑ World Trade Organization
Signature and ratification

World Trade Organization❑ Re-initiate the negotiation for accession Join
WTO accession❑ Key points:•Bilateral market access/negotiations (goods
and services)•Multilateral negotiations
99

Home Grown Economic Reform Agenda 2.0

As the COVID 19 pandemic and economic downturn subsides, and the domestic conflict ends with a peaceagreement the GOE is introducing a new phase of reforms HGER 2.0 -2023-2026

Macro economic
reforms

Sustaining growth, ensuring debt sustainability and tax income reform, improving
export and foreign capital earnings, reducing inflation

Investment andbusiness climate
reform

Improving financial Access to private sector, improving investment services, public
enterprises reform(privatization), opening up sectors for private sector(liberalization)

Sectoral reforms

Broadening growth sectors of the economy, agricultural mechanization, improving
manufacturing sector productivity, expanding gains from mining and tourism sectors,
ensuring digital transformation

Public sector
reforms

Strengthening public service institutions, ensuring result oriented and modern
government services, coordinated digital civil service data
10

3

PRIORITY SECTORS
Reforms are further supplemented with sectoral interventions focused on
key productive sectors that Ethiopia has great potentials

Manufacturing

MiningAgriculture

ICT & Creative
industries

Tourism11

1. Agriculture and Agro-processing

Abundant natural
resources ( land,fertile soil, water andforests)

Diversified agroecologies

One of the first places
where agriculture
started

1st in Africa & 6th in
the world in coffee
production

2nd largest
exporter offlowers> 60% young
working age
population

85% population
depending on
Agriculture121.1. Agriculture: Product Opportunities
Sesame• Ethiopia is the 9th top producer of••

Sesame globally (FAO, 2019). Niger
seed, Sesame, Ground nuts, Linseed
and soybeans are the top five products
by volume
There is 204,000 ha of land suitable forsesame production
The sector benefits from a strong
support from the GoE that has set an
ambitious target for the sectoro Short term to medium term: increase
local production of oilseed for end
to end processing, replace imports

Animal Feed

Dairy

•
•

•

Over the past 15 years, volume of cow
milk production increased modestly
from 1 billion to 4 billion liters
Total milk production in Ethiopia is
4.3 billion liters and per-capita milk
consumption is 19 L/Year, compared
to required 22 billion total productionand 200 L per capita consumption tomeet WHO and FAO Standards
There is 2.5mn ha of suitable land fordairy production and three publicranches that are soon to be privatized

•

•

•
•

Ethiopia has an attractive market foranimal feed production, with unmet
domestic demand estimated at USD
150mn and immense export potential
An estimate of 91 million tons of dried
feed is annually produced; equivalent
to 1.3 tons per year for the estimated70 million cattle in the country (anaverage weight of 250 kg)
An estimated USD 8M in importsubstitution opportunity
Potential to tap into USD 2.9B market
in East and North Africa

Poultry•The average per capita
poultry consumption of
Ethiopia is 0.5k. It issignificantly lower than the
Sub-Saharan Africa averageof 2.3 kg•Imports of chicken meatincreased by nearly 60% in aperiod of 10 years and risenby 32% between 2008-2013•There is a shortage of dayold chick (DOC) supply

o Long term: become a net exporterof edible oil

Apart from the above areas, there are other lucrative businesses in which foreign investors can get involved such as production ofwheat, floriculture, vegetables and fruits

131.2. Cotton opportunities•

3 million hectares of land suitable + available (and currently
unused) for cotton with 8 cotton growing corridors•

No restrictions on foreign operation of ginneries or cotton farming
since September 2020•

Mix of small-holding and commercial farming with mechanical andhand-picking•

Short to long staple - average middling 28-30•

Mix of rain, bore and basin fed•

Most farming – effectively organic•

Easily trainable workforce•

Enabling training and educational centres helping to boost
productivity•

High government commitment supported by the sector specificstakeholders.
141.3. Agro-Processing

ACCESS TO A ~$33 BN DOMESTIC
MARKET AND A ~$313 BN SSA
MARKET• Growing middle income base andincreasing consumer spending.
• Increasing productivity in the sector​STRONG GOVERNMENT SUPPORT& COMPETITIVE TAX BENEFITS• Enabling policies, government reforms• A priority sector for the GoE, 10 year
perspective plan drafted by Ministry ofAgriculture (MoA) in line with the Home
Grown Economic Reform agenda• Integrated agro-industrial parks​A COMPETITIVE & SKILLEDLABOR ​POOL• Abundant workforce with 28mn of thecountry’s population aged between 1529 years• More than 300,000 university and
367,000 TVET graduates every year

​ABUNDANT NATURAL RESOURCES
AND INFRASTRUCTURE• Ethiopia has abundant natural resources• The widest African air connectivity
through Ethiopian Airlines• Well-developed train network includes
752 km transnational Ethiopia-Djibouti
Railway• A well developed road network
15

Agro-processing: Government Attention
Committed stakeholders collaboration in IAIPs investment facilitation
Private sector investments focus on the agribusinesses at the national level
Flagship components of theIAIPs program

Horticulture: 130 investors, 21 fruit and vegetable industries (USD 300 000 000
export and 68 million small-holding farmers employed)

1.
2.
3.
4.
5.
6.
7.
8.
9.

Honey: 49,000 tonnes produced annually, 18 million beekeepers

Research and extension
Public extension services
Small scale irrigation
Agriculture marketing
Quality input supply
Mechanisation services
MarketingTargeted support to VC
Farmers’ organization

Meat and leather: 15 export-oriented abattoirs and 23 commercial tanneries and1000 SMEs in the production of footwear
Dairy: 35 dairy processors with excess capacity, zero export, domestic market
constrained by animal products fasting
Coffee: major export commodity (USD 800 000 000 annually) and primaryforeign currency earner (Annual production – USD 2 000 000 000)
Cereals: 231 million tons annually produced by >14 million farmers
Malt barley: 4 internationally known companies cover 60% of the market needs
using locally produced malt barley16Integrated Agro Industrial Parks (IAIP)

Baeker IAIP
KEY PRINCIPLES Sector specialization focused Vertically integrated
 Export oriented
 Sustainability driven
 Skill development oriented

Bure IAIP
263.36 Ha

4-Agro-processing Parks

Tigray3-OPERATIONAL
Afar
Amhara

Addis
Ababa

BenishanguiGumaz

GambelaOromia
SNNP

SomaliBulbula IAIP
263.09 Ha

Yirgaem IAIP
294.5 Ha17

2. Manufacturing
2.1. Textile and Apparel••Endowed with needed industrial inputs.
A vast labour force and low energy costs give the Ethiopian textile
and garment sector a comparative advantage over other countries
and regions.
•
Ideal for• Ginneries• Spinning• Integrated Textile Mills• Handloom• Garment• Blanket• Weaving and/or Knitting
Geographical Proximity for Europe and Middle east market

18

Textile & Apparel specialized IPs

29

17

Total Industrial Parks

Government owned operational IPs
Bahir
Dar

22

6

Operational Industrial Parks

Operationl Private IPs
Jimma

4
Intergated agro IPs (3Operational)

7: IPs (State and private) under process

13: IPs have expnassion plan with19

2.2. Leather & leather Products•

A fine and globally demanded quality leather•

Strong value chain•

The Leather sector gets 44% of hides and 94% of skins produced in
Ethiopia.

•

RHS production is estimated at 3.6 million cattle hides, 9.7 million
sheep skins and 10.7 million goatskins in 2016 (FAO’s offtake rate)•

Serviced industrial zones for leather products manufacturing•

Low power costs•

Abundant livestock resources•

A reputable leather availability with goodwill to the global market•

Competitive labour costs•

An enhanced legal framework.

•

Coordinated government services•

Enabling stakeholders coordination•

Identified industrial clusters
20

Leather: Sustainable Infrastructures•

National focus on infrastructure development.
•
Industrial Parks•
Modjo leather city specialization: aims to upgrade leather
processing by reducing the heavy pollution footprint andrequiring environmentally friendly processing

There are two private leather industry parks:
1. Huajian International Light Industry City and2. George Shoe Industry Park

These two private industrial parks dedicated wholly
to production of leather and leather products.

21

2.3 Pharmaceutical manufacturing

22

Pharmaceuticals

Ethiopia’s
pharmaceuticalsector market
size

Estimated to
reach

~4B
USD by 2030

~ 1.8 B
USD by 2025

Mainly driven by:
Import12% of GDP to health (75% on essential medicines & services)
Out of pocket expenditure (46% of total expenditure)
Government 10 years expenditure for the sector (15B USD )▪ One of the first African countries todevelop a national strategy forpharmaceutical manufacturing▪ Strong investment policy focused on
pharmaceuticals including tax
exemptions, one-stop-shop services andprice preference in public procurement▪ Potential to serve >$20 billion
pharmaceutical market in Africa

Pharmaceuticals and the Health Sector
Major highly demanded medical Products include:• Pharmaceuticals• Biological products• Vaccines• Diagnostics & laboratory instruments• Medical supplies• Medical equipment• Contract research organizations-Eg.
Bioequivalent centers▪ Ethiopia is currently importing ~85% of its pharmaceuticalneeds – a big gap that is yet to be fulfilled by manufacturinglocally

MoH, 2021
24

Ethiopian Pharmaceutical Market
Pharmaceutical market in
Ethiopia(2015-30F), US$ million

5 years forecast
Annual forecast▪ Local market has been
growing steadily at an
average of 15% per year
▪ With growing population,
increased access to healthservices and a growing
middle-class, demand is
projected to growexponentially & reach >3.6
billion by 2030

2015

2016F*

2017F

2018F

2019F

2020F

2025F

Note: *Forecast
Source: Frost & Sullivan, World Bank, National Strategy and Plan of Action for Pharmaceutical Manufacturing

2030F
25

26

Cluster based product factories zoning

Zoning is compliance and
GMP requirement
expectation oriented.

27

3. Mining
Ethiopia offers multi mineral extraction and processing opportunities➢ GDP Contribution
o 1.94 % (2021) , for the
next ten years it isprojected 14%➢ Employmento
7. M people ,projected tohire 16.5M➢ Investmento National and International
Companies➢ Export share 20% , projected37%

28

3.1 Oil and Gas Potential Basins
Identified basins for oil and gas mining activities29

3.2 Fertilizer

Natural Gas• Reserves Certification
Potash• 350 Billion Tones• Production will start 2025
Phosphate• 1.85B Tones
Sulphur Minerals• Over 2.54B Tones

30

3.3. Iron and Steel Making• 1.1 Billion Tones of Iron
Ore reserves estimated.
• Plan to produce 3MTPY
Million Tones annually

6/28/2023

31

3.4. Construction Inputs➢ Cement : Currently We produce
8.8MTPY➢ National demand is 17MTPY, &Projections in 10 year is100MTPY

6/28/2023

32

Mining: Demand Gap
High government focus for exisiting companies.

Despite various existing companies, import is still
significant and increasing.

High government support with active private sector
engagement. Currently, companies are working on:

Major Imports

Iron ore (16)

1. Coal$ 500M /yr.

Steel making ( 80 +)2. Iron/ steel$1.5B/yr.

Basic CHEMICAL and Petrochemical

3. Fertilizer$2.1B/yr.

4. Marble & Granite$100M/yr.

5. Chlor-alkali Products$750MUSD/yr.

6. Ceramics$225 M/yr.

7. Petroleum Products$ 3 .6B/yr.

(50)
Cement producing companies (14)Coal (4)Geothermal (2)Petroleum (1)334. Tourism

Tourism• Origin of mankind and one of the oldest civilizations• GoE
on building
an inclusive digital• Home to several cultural and historical heritage sites,
nine focusof whichareeconomyincluded in the UNESCO list of world heritage• Key
in creating an• As political capital of Africa, Addis Ababa brings highrepresentationof enabling environment for
creative industries and innovationinternational and regional organizations• Opportunity: IT applications, e-commerce, IT
infrastructure, IT equipment manufacturing34

5. ICT• GoE focus on building an inclusive digital
economy• Key in creating an enabling environment for
creative industries and innovation• Opportunity: IT applications, e-commerce,
IT infrastructure, IT equipment
manufacturing35

6. Energy
Indigenous Energy Resources•High priority to RE Development•

Hydropower is considered as the backbone of thecountry’s energy sector development•

Wind, geothermal and solar, and bio-mas being
developed to increase the RE mix.

•

Exploration for natural gas and other hydrocarbon

Resource

Unit

Exploitable
Reserve

Exploited
Percent

HydropowerMW

45,000<5%

Solar/day

kWh/m2

Avg. 5.5<1%

Wind: Power
Speed

GW
m/s

1,350
> 6.5

<1%

Geothermal

MW

7000

<1%

fuels

Wood

Million tons

1120

50%

•

Bio-fuels for transport and household use

Million tons

15-20

30%

•

The supply of various household fuels

Agricultural
waste

•

Energy efficiency and conservation

Natural gas

Billion m3

113

0%

•

Environmental sustainability, gender mainstreaming.

Coal

Million tons

300

0%

•

Capacity building and technology transfer

Oil shale

Million tons

253

0%
36

38

Untapped renewable energy potential, growing electricity demand and availability of trainedCompetitive Advantages of Ethiopia in the Power Sector
and triable workforce are some of the competitive advantages of Ethiopia in Africa power
sector
Untapped Renewable
Energy Potential

Growing Electricity
DemandWorkforce Availability

Logistics & Stability

More than 95% ofrenewable energy
potential is yet to be
deployedEver growing domestic
and regional demand
due to industrialization

More than 1 million
workforce with electrical,
mechanical and civilengineering background

Relatively politicallystable country

More than 60 million
young and trainable
workforce

Competitive
infrastructure –Ethiopian Airways andrailways that extend to
Djibouti

Attractive basin and thegreat rift valley

Plan to export power toneighboring countries

National Focus
The 25 years Power Sector Master Plan•

Ethiopian Electric Power has developed has

Investor Engagements
There are two ways for investors to participate in the
power sector:

finalized In 2014•

The master plan has incorporated•

Load Forecast•

Generation Planning•

Transmission Planning•

In the master plan Target, Moderate andlow case scenarios are considered❖ The interested investor approach ministry of Water andEnergy and EEP-EEA❖ EEA will also float on various means ofcommunication, IPP developers.
❑ Enabling environment is created for both Public andPrivate sector.

40

7. Health care services
Why Invest in the Health Sector in Ethiopia?
‒ Government commitment to Universal Health Coverage (UHC)
and global commitments such as SDGs
‒ An epidemiologic shift with high morbidity and mortality fromthe triple burden of diseases.
‒ Data from the GBD study shows that 52% of the total
mortality is due to NCDIs while it comprises of 15% sharefrom the national health expenditure (NHA-7, 2016/17).
‒ Increasing demand from the community for highquality healthcare‒ High political commitment to improving health infrastructure.
‒ Large population with high need for services and products‒ Increased number of health professionals’ training institutions(public and private sectors) and programs‒ Introduction of insurance schemes (e.g., Community Based
Health Insurance system ( 55%) , third-party road accident)‒ Efforts to introduce Social Based Health Insurance system
41

Why Invest in the Healthcare Sector in Ethiopia?
Because Ethiopian hospitals do not have enough capacity forspecialty services – both in terms of facilities and healthcare
professionals - >6,000 patients seeks overseas treatment per
year
Reasons for overseas treatment include:

1. Advanced Cardiac Surgeries / interventional cardiac
procedures
2. Organ transplant (Renal and Liver)
3. Fertility treatment - IVF (In Vitro Fertilization)

4. Advanced orthopedics procedures
5. Oncology services (Diagnostic , radiotherapy andchemotherapies )Ethiopians spend >USD

100 million annuallyfor overseas treatment –presenting a great
opportunity to capture thisgrowing market segment

6. Ophthalmologic
7. Neurosurgery
8. Rehabilitation Medical Services
42

Modalities of Private Sector Investment•

Foreign or local direct investment•

Public Private Partnership (PPP)•

Joint venture•

Outsourcing

43

43

Priority investment areas in the health sector

Tertiary Healthcare services

Advanced
Diagnostic
Services

Medical Product
Manufacturing

Human Resource
Development

Pre-Hospital
Emergency Care

Healthcare
Technologies &Innovation
44

8. Logistics sector
Why invest in Ethiopia’s Logistics sector?
Ethiopia has key competitive advantages in Logistics

Wide array oflucrative investment
opportunities• Eight major logistics investment•areas prioritized by government
18 lucrative investment
opportunities/projects withvarious implementation
modalities; JV, PPP, concessions

Strategic clarity andstrong government
backing• National Transport Policy & National • Ethiopia is located at equidistance•••Source: Ministry of Transport (2020)

Strategic location andimportant logistics
epicentre

Logistics Policy ratified
National Logistics Strategy recently
approved
Strong institutional frameworkMinistry of Transport & accountable
institutions
More room opened up for foreignand domestic investors throughupdated investment regulation
scheme••from the world and close to the
middle-east market
Ethiopian Airlines is a leading
player with expanding reach andinfluence on the industry
Ethiopia has emerged as a leading
African country in infrastructure
connectivity

A competitiveand skilled-laborpool• Abundant workforce with 28mn•

of the country’s population aged
between 15-29 years
More than 300,000 university and
367,000 TVET graduates every
year

45

Sectoral Inefficiencies and Opportunities for Private Investment
Value-Chain Challenges and Opportunities

Dry Port Operational
Inefficiency

Revision underway

Investment openness fordry port construction

Investment openness forshipping lines
operations

Poor Truck
Accessibility

Inadequate Customs
Brokerage

Congested Storage &Warehousing

Poor quality &provision of
Infrastructure

Requires Joint Venturewith Government

Requires Joint Venturewith Domestic Investor

Open to Foreign
Investors

PPP & JV withgovernment

Cold Chain

Railway

Warehousing

Logistics city

Road freight transport

Oil pipe line

Contract Logistics
Services

Road infrastructureInternational air
Transport

Mass public and privatetransport

Fright forwarding

Postal services excluding
couriers

4

INVESTMENT INCENTIVES & SUSTAINABLE INFRASTRUCTURES
Tailored Incentives and Support

Non-Fiscal••

Guarantee against expropriation
Guarantee for repatriation of funds•

Customs facilitation through bonded export
factory and similar other schemes
Relaxed Industrial park land regime

•
•
•

•

One-Stop Shop Service
Expedited procedure for securing visa, work
permit & certificate of residency
Facilitation of market linkages

Fiscal••••Corporate Income Tax exemptions
Custom tax exemptions
Loss carry forward
Full export duty exemption•

Expatriates' income tax exemption

Companies looking to engage in expansions
are further eligible for tax holiday up to 100%on the additional income generated for theperiod that equals 50% of their initial tax
holiday incentive

5

Sustainable infrastructures: Air

AIR
Largest cargo
network andterminal in Africa
AIR

RAIL

Destinations>125 – International
59 – Cargo48

Sustainable infrastructures: Road

ROAD
All-weather roads
nation-wide

AIR
RAIL
Currently expanding

all corridors

49

Sustainable infrastructures: Railway

RAILWAY
Djibouti to Modjo (dryport city 70 kms from thecapital city) cut from 84
hours to under 10 hours
AIR

RAIL

Cargo trains operatingwith capacity of 3500 4000 tons of freight perday

50Sustainable infrastructures: Power

ELECTRICITY
Low cost green electricity rate at 4
US cents/KWH – among thecheapest in the world
AIR
RAIL
Country
power generation
potential❑Non Hydro-electric power
capacity: > 17,000 MW❑Hydro power: 45,000 MW

ELECTRICITYROAD❑GERD: generating power
51

Role

INVESTMENT SERVICES AT THE EIC-OSS

Promotion

Facilitation

Registration

Licensing

Aftercare⁻ Identify potential
investor bases/ leads,
organize promotional
events and pitch
investment
opportunities inc.
facilitating businesstrips

⁻ Hand-holding
investors throughtheir investment
exploration phase(e.g., feasibility)
including setting up
meeting with key
stakeholders

⁻ Providing therequired registrationinc. commercial reg.
and investment
permits⁻ Provide a license thatallows investors tocarryout their project
per their contract

⁻ Provide aftercare
services to investors
when needed

Activities

6

⁻ Create FDI linkages

⁻ Facilitating
negotiations⁻ Leveraging the
Ethiopian Investment
Board to resolve
deal-breakers

52

The EIC is mandated with providing end-to-end services to investors, perproclamation no. 1180/2020‒ OSS: Key trade/business license issuance, registration, renewal related services are now offered by EIC end
to end (entry to exit);‒ All work permit issuance, transfer of knowledge and skills, renewal, cancellation‒ Visa Facilitation and Visa Benefits:‒ Coordination with Regional Investment Bureaus: facilitate the efficient provision of pre- and postinvestment facilitation services‒ Establishment of an Inter-Regional Council (Council): facilitating the establishment and functioning of ahigh level inter-regional council that will coordinate federal and regional state administrations in the area ofinvestment‒ Regulating Brownfield Investments: All foreign investors, entering Ethiopia either through greenfield or
brownfield investments (acquisition or buying of shares of existing enterprises) are now serviced andregulated by EIC end to end (entry to exit)‒ Provision of Investment Land: regions respond to investors’ request for land within a maximum of 60 days
(for the manufacturing sector) and a maximum of 90 days for other sectors.
53

Aftercare Strategy:-IRP/IDP/TC/SC
Supporting development of the aftercare strategy work (including several consultationand iterations), and developing a full step-by-step guide implementation plan wasdeveloped
Eight key aftercare interventions [1] were identified based on a stock-taking exercise, andlater developed to improve aftercare services

1

Developing an aftercare strategy andimplementation plan

2

Assessing existing aftercare resources(tools, systems, etc.)

3

Identify investors’ base and their needs

Over 5,700 investors data are recorded on the FDI tracking tool. 100 top-tier companies
and VIP services are identified. 3 surveys conducted to assess investors’ needs.

4

Develop Key Performance Indicators (KPIs)>150 investors’ problems resolution tracked through the TC (>60% resolved). Investors
Development Program launched with 100+ companies, targets set and monitored.

5

Developing tools and procedures

Developed >25 tools, SOPs and procedures to guide implementation, facilitate aftercare
services and create consistency in the team

6

Building implementation capacity

Half-day training on aftercare services, joint monthly planning, on-the-job coaching andadditional refresher training provided to 27 staff in the aftercare directorate

7

Implementation

Implementing the aftercare strategy, adopting best practices, using tools and procedures,
applying learnings, capturing and monitoring results, etc.

8

Monitoring and evaluation

Monthly performance reviews against goals, checking investors’ pulses through surveys toensure results are being achieved, etc.

54

Committed and strong government
Regional
Administrations
Industrial Park
Development
Corporation

EthiopianInvestment
Commission

National Bank ofEthiopia

EthiopianInvestment
Board

Ethiopian
Shipping and
Logistics Service
Enterprise

Main Department
of Immigration &Nationality Affairs
Ministry of Tradeand Industry

Ethiopian
Customs
Commission

Ministry ofForeign Affair
Ministry of Labour
and Social Affairs
55

THANK YOU!
Time to Invest in Ethiopia!

CONTACT US FOR FURTHER INFORMATION!
We can help you set-up your company in Ethiopia. You can get guidance from Ethiopian Investment Commission
regarding your investment project in Ethiopia.

COMPANY WEBSITE

www.investethiopia.gov.et

NAME:

TEMESGEN TILAHUNPOSITION:

Deputy Commissioner
PERSONAL CONTACT:+2519117511045(WhatsApp)+251 9 44323841
temesgen.tilahun@eic.gov.et

COMPANY EMAIL

Info@eic.gov.et