Stability, economic growth attracting giant companies: President

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Addis Ababa, 21 August 2014 (WIC) - President Mulatu Teshome said the political stability, economic growth and enabling investment atmosphere in Ethiopia are attracting attention of giant international companies.   

In an exclusive interview with ENA the President said number of giant international companies coming to Ethiopia is increasing since recent times.

Some 20 years ago, Ethiopia was a country that draws attention of donors and aid organizations, but now this fact has changed and giant companies have started to be attracted to the country because of various activities geared towards the development of the country, he said.   

The rapid and successive economic growth is helping the country get international recognition. This situation encouraged companies to come to Ethiopia and see the investment opportunities for themselves.   

"Conducive condition for investment, abundant natural resources, political stability and economic development are the main reasons that attract more investors to Ethiopia." he said.   

In addition to the conducive investment atmosphere, there are many reasons for companies to invest in Ethiopia, including raw material supply, cheap labour and vast market.   

"Cheap labour and, power and raw material supply make Ethiopia preferable for investment compared to other African countries."   

By investing in Ethiopia, the second populous state in Africa next to Nigeria, companies would benefit from exploiting the vast market. In addition they could easily enter into EU and U.S. markets, since Ethiopia is beneficiary from various duty and quota free agreements with those countries.   

The government has given priority to the manufacturing and agriculture sectors such as textiles, leather and agro-processing areas and encourages investors to engage in these areas. And most of the investors are engaged in these areas, Dr Mulatu said.   

"One of the areas that the government provides priority is the textile industry. When you see Turkish industries they all are engaged in textiles. There are some activities in leather industry too. Most of the Chinese companies are also engaged in this area."     

The government is striving to attract more FDI by promoting the conducive atmosphere and investment opportunities using various investment forums, he said. (ENA)