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Ethiopia's Focus on Enhancing Investment and Trade

Posted on : Thursday , 5th January 2017

Nobody denies that a sustainable financial industry depends on a market driven business, characterized by competitiveness and efficiency. The government also plays its role in regulating the fiscal and monetary aspect of the economy. These make the economy to move in the right track.

As it is known, Ethiopia has been working to boost trade and investment and towards that end various measures have been taken including the formulation of rules and regulation for fair play . In addition to this, institutional arrangements are undertaken to enable the private sector play crucial role. The customs, tariff and tax systems are also improved many times to attract investors and create enabling environment that allows getting loan from Banks without any bureaucratic hurdle. As a result the volume of trade, both the import-export one, is doubled. Currently, are not only domestic investors but also foreign investors involved in trade and investment and the sector's contribution to the nation, Growth Domestic Production is increasing from time to time.
At the same time due emphasis is given to intensifying international trade and improving domestic marketing systems by strengthening consumer cooperatives and supporting access to viable market opportunities.
In the domestic front, trade creates job opportunities for many. It is stretched up to the consumers associations. Efficiency and competitiveness are attending it. However, the rent-seeking mentality witnessed in the sector is creating a roadblock in the working environment. Addressing the problem is a quest of today. Promoting a competitive and efficient domestic trade and distribution system, ensuring consumers' rights, strengthening consumer's cooperatives, transparency, fairness and accountability are vital.
Yes, nation is augmenting efforts to embark on industry-led economy in which both public and private investment play pivotal role. In addition to the aforementioned tasks the role of Foreign Direct Investment(FDI) is immense. As part of the development effort,side by side the economic growth, to achieve development and ensure structural change the government has prioritized the expansion of the manufacturing sector, which helps to create job opportunities for thousands, enhance export earning,import substitution and create link with agriculture and facilitate the ongoing development of agro- industrial park.. To support the scheme, recently, the Ministry of Agriculture and Natural Resources has created a new Agricultural Investment Support Directorate that is currently engaged in assisting the sectors performance.
Industrial Parks Development Corporation is also showing great commitment in building integrated agro-industrial parks at various part of the nation.
These measures, in addition to the above mentioned values, boosts productivity, employment, technology transfer, and foreign exchange earning capacity.
On the other hand, empowering public offices and financial institution also have been given due attention to improve the sector's performance.
As Ethiopia is one of the most populous country in the continent, it has huge number of youths, who need employment. And side by side with the provision of education providing entrepreneurial skill in trade and business can help to address the unemployment. In such a scheme women's Empowerment also realized.
As it is clearly known the ultimate goal of GTP 2 is transforming the nation from agricultural-led economy to that of industry-led one. In this regard, trade and investment play a crucial role by stimulating the economy. To that end, self sustaining and innovation based economy is necessary. According to official reports, currently, there are 2,500 small and medium size manufacturing industries and as compared to nation's population totaling 100 million, they are insignificant. Hence ,widening the space for the private sector in the economy is essential. And for that increasing accesses to finance for small and medium size enterprises must be enhanced because many end up without achieving their aim due to financial constraints. On the other hand, to empower these enterprises the role of the chamber of commerce from the national level up to the woreda is immense. Chambers can provide skills to their members,updates others by providing information to come up with new situation.
The commercial enterprise and financial institutions from the public and private wing are also augmenting the sector supplying actors with finance and consultations.
Still nation should work on trade openness that could create competitive environment and results in quality products leading to the economic growth.
The lawbreakers who take the investment and trade incentives for illegal and personal will should be tarred-and-feathered as per the infringements of the institutions.
Some factories which received loans in a bid to produce export standard materials but who fail to supply the market rather send it to the local market hampering the sector's development. The customes office and respective institutions should act coherently to bar prohibited acts.
Finally, for the development of empowered and viable trade and business community, which can be an engine for the nation development, creating enabling environment by all stakeholders is vital.

Source : allafrica.com




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