INVESTMENT AND BUSINESSES OPPORTUNITIES And ... · PDF fileINDUSTRIALIZATION IN ETHIOPIA April...
Transcript of INVESTMENT AND BUSINESSES OPPORTUNITIES And ... · PDF fileINDUSTRIALIZATION IN ETHIOPIA April...
INVESTMENT AND BUSINESSES OPPORTUNITIES
AndINDUSTRIALIZATION
IN
ETHIOPIA
April 25, 2017
National VisionJoining Middle Income Group by 2025
Sector visionMaking the country Africa’s leading in light manufacturing(Economic Transformation)
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Industrial Development Strategy• Leading role of private sector
• ADLI link (use of domestic raw materials)
• Export oriented & strategic import substitution industries
• Focus on labor-intensive light industries (young,
trainable & low cost- 70% < 30 yrs)
• Expansion of Domestic & Foreign Investment
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IDS....contd.
• Supportive role of state
• Close cooperation & integration, tri-partite partnership for development :
Government & private sector,
Owners & employees,
Industry & agriculture, education
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Guiding Principles
1. Productivity and competitiveness
2. Market development
3. High value addition and diversification
4. Technology and innovation
5. Fair trade practices
6. Growth and Graduation of SMEs
7. Employment Creation
8. Environmental Sustainability
9. Education and Human Resource Development
Growth and & Transformation Plans
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GTP 1 Performance (2010/2011-2014/15)
Sector Growth
Share of
GDP
Agriculture 6.4 38.5
Industry 21.7 15.1
Manufacturing 15.8 4.8
LMEs 20.3 3.7
SMEs 2.9 1.1
Service 10.2 46.3
GDP 10.2
GTP 2 Plan (2015/16-2019/20)
2015/16 actual
SectorGrowth(av.)
Share of
GDPGrowth
Share of
GDP
Agricult
ure
8.0 33.5 2.3 36.6
Industry 20.0 22.3 20.6 16.7
Manuf. 21.9 8 18.4 5.4
LMEs 21.8 5.9 22.9 4.4
SMEs 22.3 1.8 2.5 1.0
Service 10.0 44.3 8.7 47.3
GDP 11.0 8.0
GTP 2 Sector plan as an opportunityCreate conducive environment for investment, export market and
reduction of BOP
Export growth at an average rate of 29%
Contribution of manufactured export to reach 25% by 2019/20and 40% by 2024/25
Manufacturing contribution to GDP to reach 8% by 2019/20 and
18% by 2024/25
Increase the current level of employment (350K) by 1.5 million by
2024/25
Investment to GDP ratio of 41.3 by 2019/20 7
Areas of growth
1) production, productivity and competitiveness
2) Investment
• Quality FDI
• Domestic investors promotion and support
3) Diversification of existing priority industries
a) Textile and garment industries
• Synthetic fibers
• Natural fibers
• Technical textile8
b) Leather and leather products industries
• rubber, plastics and canvas footwear
c) Agro-processing industries :
• Wood industry
• Industrial aquaculture and processing
• Spice industry
d) Metal and engineering industries-technological capability
• Machineries, components and s/parts
• Iron & steel
• automotive 9
e) Chemical industries
• Petro-chemicals
• Construction and paint chemicals
• Alcohol based chemicals
f) Pharmaceuticals industries
• Herbal medicines
• Food supplements
• Pharmaceutical inputs
• Cosmetics
4) Emerging industries
• Bio-technology
• Electrical & electronics
• Information technology equipments and software, Packaging 10
Instruments for promoting investment
Development of industrial, agro-parks and specialized clusters (One
stop shop Service)
Preferential Cost of investment finance and forex allocation
Quality incentives based on performance
Export Credit Guarantee Scheme
Tax holidays
Preferential Transport and Shipping Rates
Building competitive capacity through linkages and handholding
programs
Enablers & conducive environments
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Enablers/targets for GTP 2
1) Transport and logistics Global ranking to improve from 104 to 57
Transit time for import-export to reduce by 50%
Containerization to reach 100% (currently 7%)
Port handling days to reduce from 40 to 3 days
Multi-modal transport to cover 90% of cargos
2) Infrastructurea)Road access and quality:
Express ways to link major transport corridors
All weather roads linking urban and rural
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Key enablers targets for GTP 2…..
b) Railways
Ongoing three projects and 5 new ones (2,782 kms)
c) Air
Air transport hub of Africa and linkage to key investment countries
d) Energy Increase per capita to support manufacturing & export
- 17,347 MW by 2012
Improve quality of supply (interruption & down time)
- Increase transmission line from 12,825 Km to 21,728
- reduce wastage from 22.3% to 11%
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Key enablers targets for GTP 2 ……e) Telecom Complete the IT park
Increase per-capita use of computers-ICT manufacturing development
Improve international linkage quality & capacity (20Gbs to 1,485Gbs)
3) Human resource (focus on science & technology) Increase number of TVETs from 1,329 to 1,778 (one in each woreda)
Additional 11 public universities
Capacity to transfer, adapt and improve technologies-Institutes
Hands on capacity building through linkages
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Key enablers targets for GTP 2 ……
4) Finance Infrastructure – address the factors in the financial framework that inhibit capital supply
for operations and expansion.
– an increased role of development finance institutions (DBE and CBE), including more flexible collateralization rules.
5) Sectoral Policy frame work– Design of manufacturing and export focused policies
6) Scalable Firms in Selected Sectors – Foster the emergence of firms capable of operating at significant scale
and exporting (quality investment).- Model companies
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Integrated Agro-Industrial Parks To attract private domestic and foreign
investors to set up agro-processing industries
To reduce post-harvest losses, to add value to
local content of primary products
To provide forward linkages for the processed
produce
To link farmers and farmer clusters to agro-
processing industry
To create jobs and drive rural economic growth
Zones within IAIP
1. Industrial zone
2. Specialized agri. infrastructure zone
3. Logistics zone
4. Institutional and amenities zone
5. Multi facility complex utilities
6. Residential zone
7. Greenery and walkways
IAIP Development Corridors
S.N Region No. of IAIP 1St Phase Development
1 Oromiya 5 1
2 Ahmara 3 1
3 SNNP 3 1
4 Tigray 2 1
8 Somali 1
9 Benishangul 1
10 Afar 1
11 Gambela 1
Total 17 4
IPS Development
1.Targeting manufacturing Investment-Quality
FDI and domestic
2. Quality infrastructure, skills & competitiveness
Focus areas:
1.Light manufacturing (textile, leather, agro-
processing, electronics, & Equip.,
pharmaceuticals, )
2. Strategic & import substitution (steel, machinery &
equipment, chemical and pharmaceutical)
3. Strategic (energy, ICT and bio-technology)
Status of IPs Development1. Bole Lemi, Hawassa and Eastern IP -operational
(3)
2. Mekelle, Kombolcha, D/Dawa, B/dar, Adama, Jima,
Bole Lemi 2, Kilinto (7)= under construction
3. Debre Birhan = Bid process
4. Aysha = Bid process
5. Arerti = Award process
Companies Operating in IPs
1) Bole Lemi (I)-12
Country of origin
Sub-sector
No. of Cos
Sub-sector
No. of Cos
India Garment 5
China/Taiwan/HK
Garment 2 Footwear & Glove
2
S. Korea Garment 3
Companies Operating in IPs
2) Hawassa - 25Country of origin Sub-sector No. of CosUSA Garment 1India 4China/HK 7Sirilanka 2Singapore 1Belgium 1France 1Indonesia 1UAE 1Ethiopian 6
3) Eastern (Chinese-private) - 15
Country of
origin
Sub-sector No. of Cos
China
Textile & Garment 4
Metal & Engineering 3
Chemical 3
Construction materials 2
Footwear 1
USA/SA Chemical 1
India Food 1
Clusters development plan S.N Region Size of Cluster 1St Phase Development
250 Ha 100 Ha 250 Ha 100 Ha 50 Ha
1 Oromiya 14 15 6 5
Woreda level
Developments
(30%)
2 Ahmara 9 12 4 4
3 SNNP 8 11 3 3
4 Tigray 3 4 1 1
5 Addis Ababa 4 1 3
6 Dire Dawa 1 2 1
7 Harar 1 2 1
8 Somali 2 2
9 Benishangul 1 1
10 Afar 1 1
11 Gambela 1 1
Total 40 52 19 (48%) 18 (35%)
Skill Development Clusters/CentersS.N
Region Skill Development Centers
S.N Region Skill Development Centers
1 Federal • SME Agency• Sub-sector Institutes (6)• TVETs
4 SNNP (3) • Awassa PTC • SODO PTC• Bonga PTC
2 Oromiya(5)
• Ambo PTC• Nikemit PTC• Shasemenie PTC• Adama PTC• Jima PTC
5 Tigray (2) • Mekele PTC• Shire PTC
6 Others (each 1)
• ADIS ABABA Winget PTC• Afar PTC• Diredwa PTC• Benishangul PTC• Gambela PTC• Harar PTC• Jigjiga PTC
3 Ahmara(4)
• Gonder PTC• Baher Dar PTC• Dessie PTC• Deber Berhan PTC
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ARIGATOU
GOZAIMASU
Thank You