Private Sector Development: ecbp

Private Sector Development

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The ecbp´s priority components would be nothing without a strong and vibrant Ethiopian private sector. Long considered an untapped potential, ecbp aims to open markets up by increasing competitive advantages for Ethiopian entrepreneurs. This is aimed at a new and keen generation of business-people: demanding and capable of succeeding in an open and ethical society.

Support to businesses will emphasize selected priority sectors, company reengineering and strengthening business and financial development services, with a special focus on smaller enterprises. ecbp will provide and facilitate solutions to individual businesses and business development consultants.
The program will also address chambers and sector associations to create a more fruitful public-private dialogue and transparent practices.

Achievements

Ethiopian companies, through re-engineering processes, receive technical and management training to bring them up to international standards. ecbp’s matchmaking and investment promotion helps them to build contacts with potential international investors and open new export opportunities. ecbp is strengthening business development organizations and training institutes, and helping to build business chambers and guilds. As they grow, so will Ethiopian industry.

The impact of these initiatives has been astounding. Exports in the Leather Sector have risen by 19%. Already, more than 3.5 million euros worth of orders have been secured for shoe companies and tanneries through ecbp intervention. Continuous technical and matchmaking support is being given to companies in the selected value chains. Through the facilitation of ecbp, 20 leather companies have established a jointly owned company in order to import their production inputs together, which saves all of them costs. Ethiopian garment companies have received over 20 international sample orders. The country’s pharmaceutical industry has exported for the first time – to the tune of over half a million euros. In addition, an ecbp intervention to change public tender policy in Ethiopia has directly resulted in companies securing over 6 million euros in national sales.

With ecbp support ten pharmaceutical companies entered the certification process for GMP (Good Manufacturing Practices); 3-4 companies should be ready for inspection within the coming year. In the wheat based value chains a change of the VAT regulation has been achieved which will help the businesses to be more competitive.

Currently 6 projects with potential new investors in different sectors are under way. Eight public-private partnership projects have been established (2.5M EUR) – with another 15 currently under negotiation. Technology and business incubation centers are now established in the regions.

A network with all national/regional investment promotion agencies has been established and integrated into the ecbp investment promotion structure.