Matchmaking: Building Ethiopia – Building Contacts
The aim:
Matchmaking – bringing together business people to strengthen business and create wealth in Ethiopia – was established within the ecbp-private sector development team mid-2007. ecbp’s mandate is to support new investments in the Ethiopian private sector focused on the priority industries: leather, textiles, agricultural and pharmaceuticals.
ecbp’s matchmaking and investment promotion approach supports Ethiopian companies to build contacts and long-term relationships with European companies in order to exchange information and business experiences. The aim is to strengthen Ethiopian private sector development and create new jobs through (1) cooperation between companies, (2) new export possibilities for Ethiopian companies, and (3) new foreign direct investments for European investors.
The Service:
(1) + (2) Ethiopian companies who are looking for an export partner to generate new business opportunities, a partner for commission processing, technology or management know-how or a financial or strategic investor in Germany or Europe are welcome to contact the ecbp team in Addis Ababa, Frankfurt and Berlin (Germany).
(3) The team also promotes Ethiopia as an investment location in Germany and Europe in order to attract foreign investors for Greenfield or Brownfield activities. ecbp assists and advises potential European investors on the favourable conditions in Ethiopia in close cooperation with investment promotion agencies on national and regional levels.
Enterprises planning to establish business operations in Ethiopia can obtain information on the business environment, such as the corporate investment framework, tax regulations, and subsidies, in close cooperation with the investment authorities. The range of services includes strategic planning, market research, and competitive analysis. Industry experts provide comprehensive project management and support services from site selection to the final realization of investments. All inquiries are kept confidential and our services are free of charge.
FDI - Foreign Direct Investment in Ethiopia
More than 400 investment promotion agencies worldwide are competing in order to maximize the flow of new investments in their country or region. The foreign direct investment market is highly competitive as incoming foreign direct investment can boost investment and skills, transfer technology and create links to marketing networks. Moreover, the advantages of foreign direct investment are extremely positive for a country or region:
- Employment: creating new and sustainable jobs
- Capital: investors bringing in capital to Ethiopia while investing in a new factory or company
- Technology transfer: improvements in access to excellent technology
- Revenue benefits: widening local tax bases and contributing to government revenues
- Higher local investments: increasing domestic investments as local companies gain access to distribution channels or become suppliers
- Improved exports: FDI is often export-oriented, using their access to overseas marketing and distribution networks
- Improved labor skills: more training, knowledge transfer
- Increased competition and competitiveness: improving overall economic growth by increasing competition; raising quality levels and delivery reliability
Ethiopia has competitive advantages in different areas and, with tremendous business opportunities, the country should be seen as an attractive investment location for nationals, Diaspora and foreign investors:
10 good reasons why to invest in Ethiopia:
- Strategic location in Eastern Africa with easy access to the lucrative markets of the Middle East, Europe and Asia
- Access to 23 African countries through the Common Market for Eastern and Southern Africa
- Market Potential: 340 million people in East Africa, more than 80 million people in Ethiopia with a growth of circa 8 % per annum.
- Availability of educated employees
- Favorable labor costs
- Availability of excellent resources/huge domestic raw material base
- Abundant and inexpensive labour force
- Attractive investment incentive packages and tax structure
- Heavy government investments in infrastructure and telecommunications
- Substantial growth industries: average of circa 10-30% per sector