Ethiopia wants Indian investments to reach 10 bln in 3 yrs

Ethiopia’s strong business relationship with one of the world’s emerging economies is yet again set to get a boost with the visit this week of a high level delegation from FICCI (Federation of Indian Chambers of Commerce), the oldest and largest industry body in India. 

The delegation led by R.V. Kanoria, Chairman & Managing Director of Kanoria Chemicals & Industries Ltd, included businesses involved in sectors such as, sanitation, construction tiling, paper products, agricultural manufacturing equipment and information technology with a focus on solutions for the health and agricultural sector. 

Kanoria himself is already in the process of investing 30 million dollars in a textile project, which he says is going to export 30 million dollars in product annually which will be set in Debre Zeit city about 45 kms southeast of Addis Ababa.

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“My business will contribute directly to the garment sector, help create new business opportunities around the planet where Ethiopian companies and smaller converters will convert our fabric into trousers and jeans, and other apparel” said Kanoria, adding that when completed at the end of 2013, it is expected to employ around 500 people.

Kanoria said Indian businesses should come to Ethiopia, to participate in the growth of the country which he described as safe, with people who are willing to learn new skills, with a rule based business environment, ample power, cheap raw material and economical workforce.

However Kanoria said there are some challenges to overcome in Ethiopia like the very high cost of logistics, difficult financing because of lack of foreign exchange and regular delays when conducting business, although he said the government is making improvements. FICCI representatives had a Meeting with the Prime Minister Haliemariam Desalegn, in which he reportedly stated that he wants Indian investments to be over 10 billion dollars from the current 4.3 billion dollars in the next three years.