Ethiopia woos Indian firms

Ethiopia has invited the Indian companies to invest in sectors like infrastructure, educational and technical training, water resource management, pharmaceuticals, leather and development of small and medium enterprises (SMEs).

Addressing a seminar on 'Business opportunities in Ethiopia' organised by Madras Chamber of Commerce, Teketel Forssido, ambassador, Embassy of Ethiopia in New Delhi said: "Around 5,000 professors have applied with their curriculum vitae for recruitment as professors in Ethiopian University during the current year and we expect this to increase every year. The Ethiopian educational system is a good potential area for Indians."

"Africa has changed and is changing by the day and for economic development to be realised there should be political stability and security. We are having the Parliamentary elections in May next year. Ethiopia is in a nascent stage of development and investments in projects must start from scratch," he added.

Wholly foreign-owned ventures, here, can happen only at investment levels of $100,000 per project.

However, for sectors such as engineering, architectural, accounting and audit services or in other consultancy services or publishing, the investment floor is at $50,000, Teketel said.

In joint venture projects the minimum foreign investment requirement is $60,000 per project. For consultancy services or publishing the requirement is much lower at $ 25,000 per project.

There are no stipulation on foreign investors on re-investing profits or dividend, as long as at least 75 per cent of the out put is exported, he added.

Teketel said that roads, railways, consultancy, telecommunication, power, mango plantation and water resource management are the areas where the Indian companies are jointly working with Ethiopian companies.

The areas where Indian companies cannot invest are transmission and supply of electrical energy through the integrated National Grid System, banking, insurance, postal services and air transport, he said.

Yosef Kumelo, economic counsellor, Embassy of Ethiopia, said: "We offer incentives such as tax holidays of one to five years depending on the project location, tax holidays of up to two years on income from expanded projects and unrestricted repatriation of profits, dividends, interest payments from approved projects."

Investment activities eligible for income tax exemption are manufacturing or agro-industrial activities or agricultural products, he added.