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Tigrayi at a 6

Glance

Interview with

Invest in Tigrai
Dr. Ambassador 10

Content
Addisalem Balema

Tigrais Manufacturing
16
Industry on the Rise

Organized By Ethiopias Industrializa-


tion: Insights through 22
GTP I and GTP II

What the Region can


Offer for Investors 26

/
Tigrai Chamber of Commerce Tigrai Chamber of Sectoral Tigrai Bureau of Urban Develop-
& Sectoral Association Association ment, Trade and Industry

Industrial Parks Devt


in Ethiopia 30

Coordinated by

Why is Ethiopia the


Leading Recipient of 34
FDI?
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

Message

H. E. Abay Woldu
President, Tigrai Regional State

O
ver the past decades, Ethiopia has manufacturing industry in Africa. environment. The region is endowed with various Tigrai Bureu of Urban Development, Trade and
experienced a strong and all rounded natural and human resources that can enable Industry in collaboration with WAFA Marketing
Therefore, in order to ignite the planned
double digit growth exceeding the investors to embark on a successful and profitable & Promotion PLC has organized the first ever
economic transformation the manufacturing
regions average growth, 5.4 percent. The business ventures. The regional government International Manufacturing Exhibition in Mekelle
sector is expected to grow 21.9 percent on
development in service and the agricultural realizing the crucial role of the private sector city. The Exhibition is expected to bring together
average during this GTP II. This will spurt the
sectors account for most of this growth, while has revised its investment law to make it more various local and international manufacturers.
sectors contribution to Ethiopias economy to
manufacturing performance was low. Lagging transparent, attractive and competitive. In order to With this, it is hoped that the exhibition will
eight percent creating a job opportunity for 758
behind what was planned the manufacturing minimize the effort, the time and money investors serve as a platform to share ideas, skills and
thousand employees by the end of the Plan in
sector had contributed 4.1 percent for spend to establish business in the region the technologies as well as to create opportunities for
2020.
the countrys GDP in the first Growth and government has set up Industrial Zones allocated market linkages among participantes. Moreover,
Transformation Plan (GTP) despite the widely In line with this, the government is working hard for investment projects inclusive of all the it will be an ideal place to promote the region and
acclaimed broad based economic growth. toward achieving these goals shielding the sector necessary infrastructures with cheaper land lease to show the potential business opportunities it
from various hurdles including lack of land and price. In addition, the government provides its holds.
For the country that aspires to become a
financial provisions, infrastructure, market, skills support relentlessly in every steps of the investors
lower-middle-income country by 2025, the
and technology. And also, intensively exerting journey in establishing business in the region
manufacturing sector is an assurance to maintain
its effort to attract foreign direct investment and along with various tax incentives. I wish your participation in the event will be
the economic growth and to achieve this goal.
encourage domestic entrepreneurs. fruitful, enjoyable and paves the way to your
As a result, the performance in the sector plays a Hence, for the realization of this and to
investment endeavour in the region.
decisive role in the countrys strive to transform its Cognizant of the federal government efforts, Tigrai strengthen the efforts made so far Tigrai Regional
economy from agriculture to industry by realizing regional government is following suit to bring Chamber of Commerce and Sectoral Association,
its goal of becoming the leading hub of light paradigm shift in creating investment friendly Tigrai Chamber of Sectoral Association and Invest in Tigrai!

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TIGRAI its central city, Mekelle. Various historical monuments


can be found spreading around all the regions of Ti-
grai. This includes the Axum obelisks which is built in

AT A GLANCE
2nd century BC, the Temple of the Moon from the 5th
century BC pre-Axumite Yehas period, palace of the
Queen Sheba, Axum Tsion Church where the Ark of
the Covenant can be found and Al Nejashi Mosque.
Al Nejashi is one of the worlds earliest mosques built
in the 4th Century by the companions of Prophet
Mohammed. Additionally, there are around 120 rock
hewn churches and caves that serve as monasteries
scattered all over the regions breathtaking moun-
tainous landscape.

T
igrai is a place where Ethiopias Woldu who is elected by the council of the An elevations ranging from 500 meters above sea
ancient civilization is written all region. level in the western end in Humara to 3,965 above
over it and, that remains a symbol sea level at the Tsibet Mountains in the southern
Total populations of 4.3 million live in the
and reminder of the nation past zone of the region has made Tgirais landscape a
region that encompasses 54,573 km2 areas.
glory. Flourished approximately 100 AD to spectacular view for visitors. The climate in Tigrai can
Its total area size accounts for about 11
940 AD ago, Aksumite Empire was origi- be generally categorized as tropical, but moderat-
percent of the countrys total area, accord-
nated on the land of Tigrai in Axum city. ed by its altitude. This has created a place for the
ing to Central Statistical Agency. It consists
The Empire was one of the ancient and beautiful flora, birdlife and wildlife in the region. Wild
of six administrative zones, one city admin-
powerful empires in Ethiopia as well as in animals such as elephant, leopard and bush back
istration and 47 districts.
Africa playing a major role on the commer- can be seen roaming the mesmerizing landscape of
cial route between the Roman Empire and Even though during the ancient times Tigari.
Ancient India. Geez used to be the official working
On top of these historical and natural attractions,
language of the region currently, it is
Located in the northern part of Ethiopia there is its typical beautiful culture with warm, kind
replaced by Tigiringa but Geez continues
sharing borders with Eritrea in the north, and hospitable people.
to be used among the Ethiopian Orthodox
the national regional state of Afar in the Having all of these it is no wonder with the ongoing
Christian Churches. In addition to Tigiringa,
east, the national regional state of Amhara promotion via website, social media and exhibitions
Sahonga and Kunaminga are spoken by
in the south and the Republic of Sudan about the regions tourism the inflow of international
the respective communities of the region.
in the west today, Tigrai is among the tourists are increasing throughout the past years,
nine federal regional states of Ethiopia. It The region has well known major cities
attests, Dawit Hailu, Tigrai Regional Culture and Tour-
is headed by the regions president Abay including Axum, Adwa and Humar beside
ism Bureau head.

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Five years ago, the inflow of international tourists to the region Dawit. The government on its part is also doing general, to the countrys economy, points out
was 29,097. this has now doubled. In 2015/16, inbound tourists its best for the development of the tourism Dawit. Given the sectors high labour intensive
to the region have reached 62,972 and the government was industry, he added. This includes 100 percent nature and being a great source of forex, the
able to garner 86.9 million dollar. In the current mid-budget year, exemption from the payment of customs need to exploit the sector to the maximum
30,767 international and 175,135 domestic tourists have visited duties on imports that are granted to all capital level is crucial, pointed out Tesfaye. But, con-
Tigrai. goods to investors engaged in the sector. sidering the untapped potential of the sector
there is a long way to go yet, to fully utilize it as
The regions tourism industry is growing, verifies Tesfay Bekele Moreover, the accessibility of sufficient road
envisaged, he added.
the four-star, Planet Hotel manager. Three years back when Plan- networks and frequent air flights from the cap-
et Hotel was established in 2014 it used to receive on average 15 ital city, Addis Ababa to Mekelle international Lack of promotion and skilled human resources
guests per day but now it hosts on average 45 guests per day, airport and two additional modern airports in are few of the challenges the industry faces,
according to Tesfaye. Planet Hotel was established by an Ethiopi- Aksum and Humera have also inspired tourists emphasized Tesfaye. But, now it can be said
an investor with 270 million birr capital. to visit historical sites and take pleasure in the the sector is in a better position than the previ-
naturally endowed mesmerizing landscape ous years. The introduction of the new tourism
Currently, there are a total of 80 tourist standard hotels and
enjoying the comfortable ride. brand Ethiopia: Land of Origins and the im-
restaurants in Tigrai. And, 17 tour and travel companies out of
Tesfay Bekele plementation of national and regionaltourism
which five are locally based. With the fortunate situation that exists and
Planet Hotel, Manager marketing strategy along with it is expected to
working on the challenges the government is
The growing of these tourist services providers created fertile better guide and improve the activities of the
committed to further tap the tourism potential,
ground for the increment of tourists inflow to the region, said sector. F
as it can contribute highly to the regions and in
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NO RHETORIC,
BUT ACTION
In an interview with Dr. Ambassador Addisalem Balema, Vice President of Tigrai Regional
State Investment - Friendly Tigrai discussed the preferred opportunities the region can
offer for investors and tourists, he says it is all practical in there, excerpts:

Q. What defines Tigrai region and what makes it different from other
regions of the country?

Amb. Addissalem: In general, investment climate in Ethiopia is similar. In Tigrai,


we have working force that can be easily organized and trained to suit the needs
of the manufacturers. We have witnessed this repeatedly when manufacturers
trained their Employers they are fast learners; they are good in production activities.
In general we have a culture of organizing ourselves easily and we have a young
workforce that is trainable.
We have been working in training the workforce in the TVET colleges and Universi-
ties based in the region that enabled us to easily harness huge workforce into these
manufacturing companies.
So, what we are doing now is mapping out what kind of human resource we have
around in Mekelle and the rest of Tigrai. We are compiling that and we are planning
on what kind of catchments we could use for investments in Mekelle and Adigrat
and Adwa. So that we can plan how easily we can make them [invest] have access
to housing and transportation then we can have convenient transport for the man-
ufacturers.

Q. Taking into account the facilities availed to investors in the region,


which is the center of the countrys tourism, what can be said about
the contribution of the region in the sector ?

Amb. Addissalem: We have a lot of tourism sites and tourist destinations in the
region. Centuries old history of the region coupled with the wide range of heritages
The Obelisks of Aksum, Yeha Temple and the Geraalta churches speaks what the re-
gion as well as Ethiopia means to the world. From one of these sites one can easily
access Erta Ale and other areas.

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industries that contribute a lot to the regions de- potential investors to bring foreign direct invest-
velopment in particular and the whole country ment to the region. And we are also supporting
in general. and promoting domestic investments in every
aspect. So, through such kind of mechanisms
We also have the government industrial park
and encouragement, we can coordinate their
that is toward the finishing line; maybe it will
activities to maintain viable industry in this area.
be ready within the coming months and be
available to investors. Beyond that, we also have
We have made a Master Velocity [a textile and garment manufacturer] Q. You have been telling me about the
Plan that deals with the that is also designated as an industrial park too. industrial park development in the re-
coordination of those We have textile factories around Mekelle- we gion. What does the development of the
historical sites and other also have Bangladesh citizen owned textile com- industrial park in the region look like?
places of the region as panies around Quiha; Italian investments too.
Amb. Addissalem: We allotted more than
well as Afar and Amhara These will have their own impact on attracting
1000 ha for the development of industrial park
regions tourist destina- FDI.
in the region. For now, we are developing 75
tions to be easily accessi- But, our main aim is not only to attract foreign in- hectares; we have already cleared around 250
ble to tourists in a coordi- vestors to Tigrai and Mekelle but also to engage hectares to build shades.
nated manner. domestic investors in the sector so that they can
Now, the first phase of the development is un-
learn, share experience, gain knowledge and
derway on 75 hectares which will house a total
skill transfer from foreign investors and become
We have made a Master Plan that deals with dustrial led economy by enhancing the man- of 15 shades; the foundation, the steel structure
competitive and efficient by their own.
the coordination of those historical sites and ufacturing sector and encouraging results and all the roofing are completed. It will be
other places of the region as well as Afar and were registered during the first Growth and finished in a couple of months and be ready for
Q. What are the main achievements of
Amhara regions tourist destinations to be easily Transformation Plan [GTP I]. In line with this, investors.
the first Growth and Transformation Plan?
accessible to tourists in a coordinated manner. what can be said about the performance and
So, we hope that this have significant contribu-
The Master Plan incorporated the historical and enhancement of the manufacturing sector in
The main achievement is that it created a very tion in attracting domestic investors to engage
heritage sites for tourists to redirect them to go the region?
conducive environment for investment. That is in the sector. We are doing our best to encour-
and visit Erta Ale, Afar, Lalibela and other parts of the pulling factor. So, that is why we worked hard age domestic investment by providing them
Amb. Addissalem: The first initiative is creat-
the Amhara region as they are easily accessible. during the first Growth and Transformation Plan equipment through the Development Bank of
ing more conducive environment for investors.
Although we have the Master Plan at hand, there (GTP) to introduce Ethiopia all over the world. Ethiopias lease agreement.
When investors apply for investment, we make
are some works remain to be done to realize and it easy so that there will not be any drawbacks in As it is known, investors take time at deciding to We also have other institution in Tigrai called Taza
implement it. We have problems of infrastructure the system and investors will not get frustrated invest in any country. Therefore, during the first which provides machineries to investors. There is
in those areas such as standard hotels that suit in the process of investmenting. We also prepare GTP when we were promoting the country, to also a microfinance called Dedebit which is also
tourists. So, that was our shortage and nowadays land that can be provided for investment; we build the confidence and trust of foreign inves- aggressively working to avail loan to domestic in-
some lodges are coming up in Geralta and hotels also train our employees so that we can be ami- tors, they were attracted to Ethiopia and started vestors. So, we are organizing whatever resource
are being developed in Axum and Mekelle. these cable to investment and supportive to it. to bear fruits. Now in the second GTP, the inflow we have to build the local investors capacity.
facilities will encourage tourists to stay in those of FDI is showing a progress- especially in the
In the last two, three years, we have seen encour- FDI comes when there is conducive investment
areas longer. region. So, this start of flow of FDI encourages
aging flow of foreign direct investment to Tigrai. environment and if something happens and face
We can see newly emerged industries under domestic investors to engage in the business bureaucratic hurdles, they lose the confidence to
Q. The primary focus of the government is to and contribute to their country. So, what we
construction. Today we may see dust and debris; invest. We need to have our local investors who
transform the agrarian economy into an in- are trying is, we are encouraging and selecting
in the near future we will see huge factories and are in par with the FDI and have the capacity to

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compete and penetrate to the international mar- tapes and limited infrastructure. What is
ket with know how to stand by themselves. the regional government doing in avoid-
ing these bureaucratic red tapes and
Q. What defines the conducive invest- expanding infrastructure?
ment climate in Tigrai?
Amb. Addissalem: It is right that investors face
Amb. Addissalem: The investment incen- these challenges in many places they go. We
tives all over the country are the same; there are established a system to make the process short In the last two,
incentives we offer. Tax relief, marketing support and a bit easier to overcome the bureaucratic red three years, we
and the like that we offer all over the country. tapes and easily accessible complaint corridor. have seen en-
The top government body will address any ineffi-
But, what we are trying is to make it better; we
ciencies and process gaps exhibited in the lower
couraging flow
established working mechanism to overcome
echelons of the government. of foreign direct
bureaucratic hurdles. We avail land almost for
So, we are aggressively working round the clock investment to
free- they pay only 75 cents per a square meter
of land. We provide electricity and water, con- to bridge the gaps and strengthen the system to Tigrai.
struct roads and ever growing development of bring a more conducive investment climate from
infrastructure to encourage investors to come time to time. Even after the investments get into
operation- we give after- care services and we Investment is not easy- there are challenges what activities we are planning to do and so on.
and invest in this region in industries and other
work closely together to look into their problems, everywhere; the difference comes on the way
sectors. Third, those investments that have started pro-
take remedial actions. We welcome any com- the challenges are addressed. We try to address
duction will have the opportunity to introduce
plaints to address any discrepancy in a timely challenges and solve problems immediately.
Q. As you have said, the incentives men- and promote their products as they will have one
fashion and investors will not get frustrated. But, whatever problems come into play, it is not to one and group to group discussion platforms
tioned are all the same all over the coun-
try. Why should investors specifically only our responsiblity to solve the problems but with the other participants. This gives them an
come to Tigrai region? Q. Although Ethiopia is promoting itself the investors too have responsibilities. We en- opportunity of finding export markets for their
to attract investors to the manufacturing courage them to be our partners and whenever products.
Amb. Addissalem: Everybody says that but it sector, in general there are problems of there is a problem we solve them together.
is practical here- one can come and see the real promoting the countrys potential well. In Q. Finally, let me give you the chance
difference. We complement with other regions this regard, what is Tigrai region doing? to say something you want add on the
Q, The region is organizing an internation- points we discussed earlier.
of the country but at the same time, we compete al manufacturing exhibition in concert
with each other- that is the beauty of what we Amb. Addissalem: The Ethiopian Investment
with other stakeholders in the country.
Commission is doing good job in promoting the Amb. Addissalem: The point is investment
do at this time. What do you say are the benefits of such
country and we are also trying to promote our is not an easy thing- there are always challenges
exhibition and what result does Tigrai ex-
As we have the same laws and regulations we region to compliment the Commissions activi- and investors should always be ready to turn the
pect from this specific exhibition in May?
complement each other but we compete in ties. challenges into an opportunity. What we advise
provision of better services. So, we are in a better any potential investor is to come to us, to discuss
When investors come to visit our region, we try Amb. Addissalem: The most important thing
position in our services deliveries than other with us, and whatever problems we have we try
to make it comfortable so that they can stay here is, when investors come to the region they start
regions in simplified, efficient and effective, time to solve them in cooperation with the investors.
and we make them understand what is available knowing the region; they will start knowing what
saving manner. As long as we are partners, we can solve any
here. We objectively make them understand the advantages of investing in the region are. So,
the exhibition will be the first eye opening event problem and the only thing is if their coming.
what the challenges and prospects of investing
Q. One of the challenges that investors in that regard. The second is, we will have a fo- Come to Mekelle and see. We are very good part-
in our region can be and show them how ready
face when they come to invest in any rum to introduce what kind of resources we have, ners and we work hard to ensure that. F
we are to work along with them.
country in Africa are bureaucratic red
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TIGRAIS
MANUFACTURING
INDUSTRY ON THE RISE

E
lias Power Electromechanical Enterprise established
in 2002 at the heart of Tigrai region, Mekelle is one
of the factories that caught the spirit of the ongoing
manufacturing industry progress in the region.
The company set its foot in the business by producing
small metal works by the then 18 years old youngster,
enthusiasm and ambition.
When I started out I had only 2,000 Birr capital investment
and only two employees, said Elias Gebremariam, owner
of Elias Power Electromechanical.
Currently, the company is operating with 2.8 million birr
capital and 30 employees. And, the initial produces have
grown from simple metal works to manufacturing various
agricultural input materials, satellite dishes and food pro-
cessing machineries.
Elias is not the only one that is participating in igniting
the manufacturing sector in the region. According to this
Currently, the manufac-
years data from Tigrai Region Small and Medium Manu-
turing share to the gen-
facturing Development Agency, there are 3,038 small and
eral economy is 12.9 medium manufacturing enterprises. The sector used to
percent. Textile, leather encompass 4.89 percent of Tigrais economy while agri-
and metal works are culture and service took the major shares at the same 39.2
the major contributors percent. But, currently, the manufacturing share to the
to the sector. general economy is 12.9 percent. Textile, leather and metal
works are the major contributors to the sector.

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Tilahun Tareke
Director, Tigrais Small and Medium Manufac-
turing Development Agency director.

However, before all of this, most people in the to increase urban communities income and to products in the pipeline that I plan to introduce lowest land lease price possible with full fledge
region remember the only manufacturing enter- change their livelihood through capitalizing on to the local market, the market is just fresh and infrastructure provisions, he added.
prise used to be a flour processing factory. The small and medium enterprises. untapped.
Financial support is also provided by Ethiopian
spell broke in 1995 with the establishment of
Well, working with the direction of the strat- Elias agrees saying, most of the products in- Development Bank as well as by micro finance
the Endowment Fund for the Rehabilitation of
egy we are able to create a breeding ground cluding in the dwellers homes, in offices and in institutions backed by the region government.
Tigrai (EFFORT), points out Tilahun Tareke Tigrais
for various small and medium manufacturing factories are either outdated or imported so by The micro finances are working aggressively to
Small and Medium Manufacturing Develop-
enterprises as well as other types of enterprises, seizing this opportunity and assessing the mar- be easily accessible by setting up their office
ment Agency director. Under EFFORT, manufac-
Tilahun. ket one can have a successful business endeav- near customers and availing loans easily de-
turing companies such as Almeda Textile, Sheba
our in the region. manding small or none collateral, said Tilahun.
Leather Industry, Mesfin Industrial Engineering The 27 years old Yaynishet Bazezew is also one
and Messebo Building Material Production of the many entrepreneurs that joined the Additionally, the government has also de- Following suit with the federal government
started to operate and still continue to make an sector. He just relocated his furniture business signed a policy to ease operational fume and policy direction the regional government allows
impact in the sector. Nonetheless, a significant from Addis Ababa to Mekelle three months ago. to strengthen the capacity of the enterprises in duty free importation of capital goods and
change in the sector was registered due to the His company is established with 3.2 million Birr terms of land provision, financial support, tax exemption of income tax ranging from one to
2012 nationwide reform. The reform, like never capital and created job opportunities for 21 em- incentives and market networking, emphasized nine years for manufacturers. In additional, the
before introduced clear strategies that embrac- ployees. He underscores that the opportunities Tilahun. The government has cleared some short distance from Tigrai to Djibouti which is
es and align city development and industry are immense in here [Tigrai region] especially areas in various parts of the region allotted 585 Km, makes it the delivery time of imported
together, said Tilahun. The reform sought out in terms of market demand. There are so many for industries. These areas are provided in the goods shorter in relative to other regions of

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the country. To make sure the sustainability of the


textile factories that rely on small manufacturing
enterprises, the local government also thrives to see
suppliers for some of their inputs, said Tilahun. Es-
through the manufactures challenges that came in
tablishing its automobile assembly in Wikro town,
relation to managing and keeping the enterprises
48 Km from Mekelle, the company closely works in
running by providing them with various managerial
collaboration with small and medium manufactur-
training and networking programs, attests Tilahun.
ing enterprises in the production of manufactur- When I started out I had only 2,000
With all these supports and resources the sector is ing inputs. Birr capital investment and only two
growing. For instance, the numbers of manufactur- employees
This value chain production will grow further with
ing enterprises that graduated from small enterprise Elias Gebremariam
the construction of industrial parks in the region,
level to the medium enterprise level are growing Founder, Elias Power Electromechanical.
he added. The Mekelle Industrial Park which is
year by year from 18 in 2013, to 70 in 2016. But this
expected to be inaugurated this year is one of the
is not still enough we need to keep creating an envi-
biggest projects. The park will host companies that
ronment that further allures citizens to the manufac- procurement strategy for government
engage in textile and apparel, and food process-
turing sector, emphasized Tilahun. organizations to give priorities of pur-
ing. It is expected to create job opportunities for
Even though, the sector is progressing and is prom- chasing materials produced by medium
one million peoples.
Yaynishet Bazezew, Business Owner ising, it remains to contribute little to the regions manufactures. Currently, the regulation
All these are destine to create a spill over effect for only benefits small enterprises. The market
the opportunities are immense in here economy and the same is true for the countrys
other small start ups, emphasized Tilahun. Fur- demand from individual households is also
[Tigrai region] especially in terms of mar- economy as well, points out Tilahun. So, there are
thermore, the regional government is finalizing its expected to grow with the existing emerg-
ket demand. wide ranges of gaps to be filled.
preparation for the construction of shades that will ing economy and the lifestyle that accom-
Nevertheless, the future is bright with the opening be available for entrepreneurs in the region which panies it. Therefore, enterprises shall aspire
and expansion of giant manufacturing companies will ease the hustle for acquiring and establishing to catch up with the growing demand and
which offer an extensive amount of works for value working places, he added. the opportunities that come, concluded
chain manufacturing suppliers. This is already wit- Tilahun. F
Tigrai regional government is also working on a
nessed with Mesfin Industrial Engineering and other
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ETHIOSPIA'S
INDUSTRIALIZATION
INSIGHTS THROUGH GTP I AND II

E
thiopia is more dependent on the in Ethiopia stood at 10.1 percent which
agricultural sector which contributes is double that of the Sub Saharan Africa
to 85 percent of the countrys employ- Average. Out of the total economic activities
ment and more than 80 percent of export contribution to the total GDP, agriculture
items. Apart from this, agriculture also plays shares 40.2 percent, industry 14.3 percent
as the major drive in the countrys economic and service 46.2 percent.
growth.
This shows that the countrys industrializa-
During the first Growth and Transformation tion and industrial development is still at its
Plan (GTP), the registered economic growth infancy.

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Although the industrial development in the For this intended development of the industrial Similarly, while looking at the investment flow ed industrial development and the realization of
country is at its infancy, the growth that the sector sector, the government offers investment in- during the five years of the first growth and trans- structural change in the countrys economy. With
registered during the period is promising. During centives such as land provision with very small formation plan, 12.9 percent of the total investors the aim of 11 percent economic growth within
GTP I, the industrial sector grew by 20 percent lease price, income tax incentives like exemption, that came to the region were engaged in the the five years from 2016-2020, the plan aims at
while agriculture and service grew by 6.6 percent export trade incentives and customs incentives manufacturing sector while 58 percent and 29.1 creating stable macroeconomic environment
and 10.7 percent, respectively. like duty free importation of capital goods to percent of the investors went for the service and while pursuing aggressive measures towards rapid
investors. agricultural sector respectively. 54.6 percent of industrialization and structural transformation.
The share of the manufacturing sector to the GDP
the capital of these investors went for the service
was average five percent. From the total contri- With these incentives into place, the flow of in- The projected growth of the manufacturing
sector while 22.8 percent and 22.6 percent of
bution of the industry to the countrys GDP, 50 vestors to the country had been large during GTP sector during the five years of the second Growth
the capital flow went for the agricultural and the
percent is taken by the construction sector. I. Political stability of the country, its fast growing and Transformation Plan is 19.8 percent with the
manufacturing sectors respectively.
economy, excellent climate and fertile soil, strong manufacturing sub sector planned to grow at the
But, the period has shown tremendous growth
investment guarantee and protection, abundant The main achievement is that it created a very rate of 23.9 percent. This will make the industry
compared to the baseline year of 2010. The eco-
and affordable labor, regional strategic location conducive environment for investment. That is contribute for 22.8 percent for the GDP while the
nomic transformation to an industrial led one has
to access wide markets, improved economic the pulling factor. So, that is why we worked hard manufacturing sector takes a share of eight per-
shown a little drift and the share of the agricultural
infrastructure, and competitive incentives are the during the first Growth and Transformation Plan cent of the overall GDP.
sector has declined while the share of the industry
pulling factors for the growing investment in the (GTP) to introduce Ethiopia all over the world,
in the economy has shown improvements. But, For this, the past 12 years sustained economic
country. states Ambassador Addissalem Balema (Dr), the
still much remains to bring full structural change growth rate of 10.9 percent, physical infrastruc-
vice president of the regional state of Tigrai. Inves-
in the economy by accelerating the industrial The same growth for industrial sector was also ture and human development investments, the
tors take time to decide and during the first GTP
development in the economy. registered during GTP I. The sector grew by 13.3 achievement of Millennium Development Goals
when we were promoting the country, they were
percent while the manufacturing sector grew by as well as the launching of mega projects such as
Unleashing the potentials of the manufacturing attracted to Ethiopia and now in the second GTP,
9.2 percent. the Great Ethiopian Renaissance Dam (GERD) are
industry in the country and increasing the partic- they have started coming, Ambassador Addissa-
ipation of the domestic investors in the industrial The contribution of the sector to Tigrais region considered factors that drives the economy for
lem.
investment are among recommended solutions GDP was 21.2 percent while the manufacturing the achievement of the plan. F
The second GTP also gives emphasis to accelerat-
for the sectors development. sector took 4.9 percent share of the GDP.

24 25
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

WHAT THE
REGION CAN OFFER
FOR INVESTORS

I
nvestment decision
needs waiting on
main factors such as
availability of resourc-
es, accessibility and
governments policy
framework. And, Tigrai
Geographically, located in the northern parts of Ethiopia and states Goitom Gebrekidan, the regions Invest- of Tigrai Regional State. The existence of four
regional state compiling
relatively having better proximity to Djibouti at 542 Km distance, ment Bureau head: with 6,451.43 Km all weather major universities including Mekelle University
all these factors together
Tigrai region is one of the main corridors for the transport of roads, double it had five years ago which was and other Technical Vocational Education and
has created a wider op-
import and export goods via Djibouti. It is also one of the places 3,074 Km. So is the air transport, there are two in- Training (TVET) colleges will provide investors
portunity for investors.
for the one among the eight dry ports of Ethiopia. Its accessibility ternational airports located in Mekelle and Axum young and energetic skilled and easily trainable
to the outer world and to central part of Ethiopia is also expected cities and one local airport conducting eight to human resources, said Goitom. There are up to
to boost with the ongoing Awash-Waldiya railway project. The 10 flights per day to the capital, Addis Ababa. 50,000 graduates that join the work force each
railway stretching 394 Km long is expect to connect Mekelle to year.
Tigrai, encompassing 54,573 km2 areas inhabits
Haro Gebeya then Addis Ababa to Djibouti easing transportation 4.3 million people. The work force in the region In order to benefit this expanding work force the
between the northern and central parts of Ethiopia. Furthermore, shaped by its hardworking culture is easily train- regional government, with the direction from
in the past decade road accessibility has increased in the region able with great productivity calibre, attests Dr. the central government has created an initia-
making mobility comfortable, less time and money consuming, Ambassador Addisalem Balema, vice president tive that increases urban communities income,

26 27
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI
Tilahun Tareke, Tigrais Small and Medium this fiscal year. In the near future, the region
Manufacturing Development Agency director. will also see an agro-processing industrial
The pre-existing conducive environment for park construction. These industrial parks are
entrepreneurs in terms of land, training and planned to ease the process of starting invest-
financial support have able to create 130,000 ment by providing investors with a place to
small and medium enterprises. The enterprises work with fully built-in infrastructures along In order to
have created a job opportunity for around with other business essential services such as further en-
500,000 people, he added. customs, migration office, commercial services compass more
etc. The industrial parks also come with an in-
Out of the total number of the enterprises
centive package for income tax exemption for
businesses, the
3,038 are engaged in the manufacturing sec-
tor. The sector in the first year of Growth and
eight to 10 years and exemption from duties regional gov-
Transformation Plan, 2010, accounted for 4.89
and other taxes on imports of capital goods, ernment has
percent of Tigrais economy while agriculture
construction materials, and spare parts beside also cleared
other alluring benefits for investors.
and service took the majority shares having around 250
the same 39.2 percent. But, currently with In general, with the existing suitable and
the governments ongoing efforts to transfer promising upcoming initiatives by the gov-
hectares of
the countrys economy from agriculture to ernment one can say investment in Tigrai is land to build
industry, the sector share in the economy has booming especially comparing to 62 invest- shades.
reached 12.9 percent. Most manufacturers are ment projects that used to operate around
engaged in textile, leather and metal works. 20 years ago. Currently, there are 6,798 invest-
ment projects with a total capital of around 84
All these businesses had the opportunity of
billion Birr. Construction leads having major
land allotted to them by the government
share of the total investment at 2,335 projects
having not being required for land clearance
followed by industry and agriculture at second can offer a great investment opportunity for for- in the city of Axum. In addition, there are an
compensation in various industrial zones that
and third places having 1,582 and 1,469 proj- eigners. The region is amongst the horticulture estimated amount of 120 rock hewn churches
are spread in different cities of the region,
ects, respectively. Looking into the hospitality belt areas of Ethiopia. In addition, it is naturally and caves that serve as monasteries are found
states Goitom. The industrial zones have all
industry, a significant investment project in gifted with great concentration of 12 prominent in Tigrai along with Al Nejashi which is one the
the necessary infrastructures such as water,
hotel and tourism can be found amounting mining resources including gold and marble. worlds earliest mosques built in the 4th century.
road and electricity. The lands are offered for
to 1,080 projects. The rest is shared between The region is consisted of six administrative Its spectacular rocky landscape is also some-
100 years lease at the least price possible, 75
service and mining with 309 and 23 projects, zones, one city administration and 47 woredas thing not to miss.
cents per square meter of land. And foreign
respectively. which are abundant with 30 billion metric tonne
investors are also welcome to benefit from the The regional government on its part, in order to
opportunity, he added. The total investment activity in the region has of marble. While gold is located in 20 woredas of facilitate investors engagement to their choos-
created 934,594 temporary and permanent the region. ing sector has set up investment office in 21
In order to further encompass more business-
jobs. Entitled as the centre of Ethiopias tourism, woredas equipped with fast and efficient service
es, the regional government has also cleared
around 250 hectares of land to build shades. Tigrais tourism sector can as well highly benefits provision, points out Goitom.
The activity in the foreign direct investment is
On the first phase the construction of a total also warming up having three to four com- investors that decide to engage in the business. So, what we are saying is we have better ser-
of 15 shades are expected to be build and dis- panies establishing their foot hold during last Tigrai is home to one of Ethiopias ancient civili- vices tailored to serve in simplified and efficient,
tributed for investors. Furthermore, the capital year alone including big textile factories such zation, Axumite Civilization. The main historical time saving manner.... it is not rhetoric, it is
city of the region, Mekelle, will be graced with as Velocity and DBL, emphasized Goitom. heritage of the time, Axum obelisks, built in the practical here- one can come and see the real
its first ever industrial park to be completed in 2nd century BC still can be seen standing tall difference, Dr. Ambassador Addisalem. F
Tigrai with its fertile land and suitable climate

28 29
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

INDUSTRIAL PARKS
DEVELOPMENT IN
ETHIOPIA
I
ndustrial development has been the central to transform their economies. Singa-
theme of the Government of Ethiopia with the aim pore, China and Korea are among the
of transforming the economy from an agricultural considerable examples that the country
led one to an industrial led one. This concept was took into account.
the fundamental driving force behind the develop-
ment of the two Growth and Transformation Plans Thus, the government developed its
that the country devised to realize its goal of be- first ever industrial park in Addis Ababa,
coming an industrial led economy thus becoming a Bole Lemi Industrial park, for manu-
lower-middle income country by 2025. facturers engaged in the textile and
apparel production.
For the accelerated industrialization as well as The Bole Lemi Park that rested on a
for an organized management of the industrial 156ha of plot of land and constructed
development in the country, the development with an investment of a little over 2.5
of industrial parks was oven priority. For the billion Br accommodates 20 manufac-
development of industrial parks in the country,
the government has gathered multiple expe-
riences from most successful countries in the The construction of the industrial parks in
world that have effectively used industrial parks the country is expected to bring a paradigm
change in the role that the manufacturing
industry plays in the economy

30 31
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI
turing shades that are leased for 12 compa-
nies.
Industrial park proclamation 886/2015 states
that it is necessary to accelerate the eco-
nomic transformation and development
of the country through the establishment
of industrial parks in strategic locations to
promote and attract productive domes- The park administration also gives
tic and foreign direct investment thereby a one stop shop service to let the
upgrading industries and generate employ- manufacturers be able to export
ment opportunity. Furthermore, the procla- their products directly from the
mation puts the need to expand industrial Park getting the customs clearance
parks in detail: the need to enhance export and other required services within
promotion, protection of environment and the park.
human wellbeing, economical land use and
establishing and expanding planned urban
centers.
are planned to be operational very soon, according
The construction of the industrial parks in to IPDC.
the country is expected to bring a paradigm
The major areas of investment in the industrial parks
change in the role that the manufacturing
in the country are Agro-processing, textile and
industry plays in the economy as the plan is
garment, leather and leather products, sugar and
becoming one of African countries that are
related industry, chemical industries, pharmaceutical
named for their light manufacturing indus-
industries and metals and engineering industry.
try.
Up on going operational, the parks will help attract
By the end of 2017, the country plans to
more foreign direct investment, stimulate export
have eleven industrial parks to be owned
By the end of 2017, the trade and create jobs for 10 million citizens. They are
and managed by IPDC. One of these, the
country plans to have expected to return their construction cost within 20
eleven industrial parks to Bole Lemi Industrial Park phase one has
years.
be owned and managed been completed and the second phase
by IPDC. together with the Kilinto Industrial Park will In the industry parks, in addition to the provision of
be constructed for 250 million dollars that is the shades for the installation of the machines, the
found from the World Bank in loans. The two park administration also gives a one stop shop ser-
will start operation in 2017. vice to let the manufacturers be able to export their
products directly from the Park getting the customs
As a model for industrial parks development,
clearance and other required services within the
Hawassa Industrial Parks was developed in
park.
nine months and factories in it have begun
exporting their products. Dire Dawa Indus- With the support of these industrial parks, the coun-
trial Park, Kombolcha Industrial Park, Mekele trys economy is planned to transform itself from an
Industrial Park, Adama, Bahir Dar and Jimma agrarian economy to an industrial led one. F

32 33
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

WHY IS ETHIOPIA
THE LEADING RECIPIENT OF

FDI?
S
aving and investment are imminent to countries
that want to build strong economies by develop-
ing important necessities for their development
and social and economic welfares.
But, it is not many countries that have the capacity of
mobilizing the required resources to do this hence, look-
ing for other means of doing this - foreign direct invest-
ments(FDI). The contributing factors for the failure in the
resource mobilization is the poverty level in the countries
that hampers saving, and lack of awareness among the
society about the benefits of saving.
In this regard, many countries have leveraged the advan-
tages that the foreign direct investment offers to them
and alleviated poverty from their societies. Many Asian
countries are among the successful examples in leverag-
ing FDI and fill the gap of saving for investment until they
create sufficient saving culture.
Following on the footholds of the Asian tigers and cus-
tomizing the model for its suit, Ethiopia is also leverag-
ing the foreign direct investment to attract capital to
the country and support the economy with the capital
requirements for the economy.
In 2013 for instance, Ethiopia was proclaimed the third
largest FDI recipient on the African continent by the
International Monetary Fund (IMF). The FDI inflow to the
country had reached 953 million dollars in 2014, up from
the 279 million dollars in the prior year. Furthermore, the

34 35
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

In addition, doing business in Ethiopia is easier than in any other African states.
In 2013, the World Bank ranked Ethiopia seventh among African nations in terms
of ease of doing business.
Ethiopia concluded investment promotion and protection agreements with 18 Ethiopia was
FDI inflow to the country in 2016 was 4,508.7 million that the country offers for any investor. Way beyond countries across the globe. Furthermore, the country signed double taxation proclaimed the
dollars. any manufacturers could see demand for its products avoidance treaties with countries such as China, India, Turkey, the UK, France, third largest
in the international markets, the domestic market of
This shows that Ethiopia is a preferred destination to
Ethiopia is highly attractive to investors.
Russia, Kuwait, Israel, Egypt and South Africaall to facilitate the inflow of FDI FDI recipient
into Ethiopia.
FDI compared to many countries on the continent. on the African
In addition to this, investors in Ethiopia enjoy markets
Apart from the double digit economic growth reg- The provision of investment incentives in the country is also another pulling continent by
in the US and Europe through trade deals that the
istered in the country over the past 13 years and the
country has. African Growth and Opportunity Act
factor for investors to see Ethiopia as their primary destinations. the Interna-
political and economic stability of the country, there
(AGOA) and Economic Partnership Agreement (EPA) The government offers various packages of incentives in terms of tax breaks and tional Mone-
are indeed many other factors that are making the
with Europe are among the major opportunities to import duty exemptions. The country also offers service facilitation for investors tary Fund (IMF)
country a hotspot for foreign investors. when they arrive. There is an efficient service in terms of issuing license to start
the products in Ethiopia.
The strategic situation of Ethiopia is one of the fac- businesses. Land provision is also facilitated for investors.
The other notable factor to attract investors to the
tors that are attracting foreign investors to the coun- To sum up, stable political climate, liberalized and free market economy, condu-
country is the cheap labor force available in the
try. This is to mean that Ethiopia is situated at an ideal cive macro-economic policies and stable foreign exchange regime, huge home
country. Unit labor cost to manufacture of polo shirts
place to access markets in the Middle East, eastern market, access to 23 African countries through the Common Market for Eastern
are 0.14 dollars per unit, less than half the level in Chi-
Asia, Europe and even the American markets. and Southern Africa (COMESA), other market opportunities, huge domestic raw
na and Vietnam in Ethiopia, according to McKinsey
There is no doubt that investors going to any given Global Institute (MGI). material supply, abundant and inexpensive labor force and attractive incentive
country assess the market proximity from the pro- packages can be mentioned. F
Hence, not only the low cost labor but also the unit
duction sites and Ethiopia appears to be well situated
cost labor are main attractive to investors to the
for this demand of any investor.
country.
The second point is that the market opportunities

36 37
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI

Kaizen UNSHACKLES THE


MANUFACTURING 100%
SECTOR Effective

W
hen the World War II came to an end that promotes baby small changes in our daily It has also its own teachings, pillars, and tools
Germany were finally made to surrender after
in 1945, it had wiped out many of the lives to accomplish a target goal ranging from of implementation that ranges from the simple
the atomic bombing of Hiroshima and Nagasaki.
gains which Japan had made since personal diet program to a countrys economic brain storming to complicated mathematical
The defeat had left the people disoriented, sites
1868. About 40% of the countrys industrial growth, says John Kain an author of One Small equations to improve productivity and quality.
Societies, Networks and Transitions: A Global
plants and infrastructure were destroyed, and Step: The Art of Kaizen. The philosophy, which Kaizen is a statistically-influenced way of doing
History a book by Craig Lockard.
production reverted to levels of about fifteen is always stipulated as an American idea with things with an eye toward constant improve-
However, within less than 10 years after the war, Japanese makeover, had helped to restore and ment, says Jesse Emspak former staff writer for
years earlier. By the end of the war, what re-
the country started experiencing swift economic improve the post Second World War economy of Wall Street, Institutional Investor Newsletters.
mained of the Japanese Empire was wracked by
growth. The economic growth which started in Japan. The inception of Kaizen was started as a
shortages, inflation, and currency devaluation. Moreover, Kaizen goes to introduce and plants a
the aftermath of World War II made the country result of the arrival of American expert named W.
Transport was nearly impossible, and industrial deep root in the minds of the stakeholders about
one of the worlds economically giant nations. Edwards Deming following the defeat of Japan
production in Japans shattered cities ground to its basic implementation tools including the 7Ms
Currently, the country is the 3rd biggest econo- in the World War II. By the time, the experts were
a halt. The destruction wrought by the war even- that alert them from inefficient and wasteful
my in the world with the highest life expectancy. working to rebuild Japanese industry by intro-
tually brought the Japanese economy to a virtual working habits like: Muda/waste of overproduc-
standstill, reads a book titled Postwar Japan as For many Economics scholars, Kaizen is suppos- ducing new management approaches and their
tion, inventory, waiting, transportation, defect
History by Andrew Gordon. edly the key to Japanese success in industries efforts brought the concept of Kaizen to light.
making, motion and processing.
from cars to electronics manufacturing. Focusing on how to improve quality and reduce
Japanese who was fighting along with Nazi In order to minimize any aspect of wastes,
Kaizen is a management philosophical concept costs, Kaizen uses statistical processes control.
increase quality and productivity, 5S Kaizen tools
38 39
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI
were devised, which include sorting, setting ing on the manufacturing sector with great
in order, shining, standardizing and sustaining. enthusiasm to improve the sectors productivity
These tools descriptions are always displayed on and quality. The two main virtue of Kaizen, qual-
visible places to remind and motivate workers. ity and productivity improvement are consid-
Consequently, it is very likely for you to see ered as means to achieve the governments plan
these descriptions plastered to the buildings to industrialize as well as for the manufacturing
stairs while visiting one of Kaizen implementing sector to highly raise its export contribution, ac-
institutions. The process involves identifying im- cording to Daniel Kitaws (Dr, Eng) presentation
portant materials that was left in the store and on the Experience of Kaizen in Ethiopia and the
make use of them and dump unimportant ones, Way Forward in Japan, 2011.
neatly sorting, labeling and organizing the store.
Following the same suit of the federal govern-
The first Kaizen training teachings go through ment, the Tigrai Regional Government has been
the indoctrination of the concept and motivat- trying to implement Kaizen in its jurisdiction.
ing and preparing peoples mind for change
We try to equip small and medium enterpris-
starting from the assembly line workers up to
es with various management tools including
the CEOs, elucidates Fekadu Nigussie, program
Kaizen in order to enhance their efficiency and
officer of private sector & industrial devel-
productivity, Tilahun Tareke Tigrais Small and
opment at Japan International Cooperation
Medium Manufacturing Development Agency
Agency (JICA). Along the years Kaizen has come
director.
to be adopted in various countries including
Singapore, India and other Asian countries. And, In the region, two prominent manufacturing
following the collapse of the former USSR in companies can be mentioned for their exem-
early 1990s other east Europe countries such plary deed in relation to a successful implemen-
as Hungary and Poland also incorporated the tation of Kaizen, Sheba Leather Industry Plc and
system, proving the cross cultural compatibility Almeda Textile. The effect of Kaizen
of it, he added.
before and after as
Almeda Textile Plc, established in 1996 by the
Endowment Fund for the Rehabilitation of Tigrai
seen in these pictures
But, it took until the year 2009 to make it to
Ethiopia. The initiative to introduce Kaizen to (EFFORT) has been using Kaizen to improve
Ethiopia spark from the personal experience of quality and productivity since 2014.
the late Prime Minister Meles Zenawi up on the At first, the introduction of Kaizen in the institu-
attendance of a joint report meeting on Kaizen tions sparked fear and uncertainty. According to
implementation in Egypt and Tanzania coor- Girmay Mekonne, who has worked for around
dinated by Japans government in 2008. After- eight years for Alemda states I, myself and my
ward, a request for the government of Japanese co-workers had been stressed out with the in-
for Kaizen technology transfer is made and then troduction of Kaize in our company because of
the implementation process begun in 2009. The the change it will bring and the expected extra
initiative to spread the use of Kaizen is lead by activities that would come along with it.
Ethiopian Kaizen Institution (EKI).
But only later, to find out that the benefit it
Since then, the federal government is trying to gained to the company and the relief it created
ignite the use of the system nationwide focus- for employees from work strains and loads.

40 41
Investement- Friendly Investement- Friendly

TIGRAI TIGRAI
The overall companys productivity in terms of monetary value has
reached 31,628 Birr during 2015/16 from 18,783 Birr in 2012/13. With
regards to quality, for instance in knitting section quality improved
from 67percent to 90percent and in knit dying from 67percent to
82percent between the years 2013/14 and 2015/16. Sales has also
improved with the implementation of Kaizen, attests Gebregzab-
here Gebremichael, Kaizen Bureau officer at the factory. In 2015/16
fiscal year, Almeda has made around 400 million Birr sales far from
the 2013/14s 232 million Birr sale it used to make before the use of
Kaizen.
Similarly, Sheba Leather Industry, the second prize award winner
for best practice of Kaizen among exporting companies in Ethiopia
has witnessed so many improvements. Kaizen pave the way for the
company to be more competitive in the international market arena
and to become more profitable, according to Yohannes Kasahun,
general manager at Shaba Leather Industry. Export has increased in
40 million Birr and value added sprinted from 18.9percent to 66.7per-
cent between the 2013/14 and 2015/16 fiscal years.
At national level an encouraging results are registered as well.
Assessing institutions that have been implementing Kaizen, EKI
disclosed that it brought all rounded capacity and thus enable to
improve productivity of man power from 1.29 percent to 60percent,
of machinery from 25 percent to 75percent and raw materials from
4.76 percent to 19.7percent. Additionally, EKI reports achievements
in terms of reducing production costs from 33percent to 6percent,
defects from 57.1 percent to 5percent and accidents from 49.5per-
cent to 14.29 percent.
These all achievements are mainly attributed to the role played by
the EKI in organizing and transferring the Kaizen tools accordingly.
On top of this, the customization of Kaizen opting with the countrys
vision and status has greatly contributed to the success of Kaizen
implementation. The Ethiopian Kaizen has its own Kaizen Promotion
Assessing institutions that have been Teams (KPT) /organization, and is aligned with major objective of the
implementing Kaizen, EKI disclosed that government strategy such as creating gender equality, green econo-
it brought all rounded capacity and thus my and industrialization, according to Fekadu.
enable to improve productivity of man Howev er, we have still a long way to go in further gathering our
power from 1.29percent to 60percent. efforts and push the use of Kaizen forward in the region, concludes
Tilahun. F

42 43
Investement- Friendly
Testimony Testimony Investement- Friendly

TIGRAI TIGRAI

Name: Kibrom Fitsum


Company: Maa Garment
Company: Velocity Garment/ Vogue Industrial Park Position: General Manager
Name: Tadej Pojbic
Position: Chief Operations Officer

V O
elocity is a garment producer; it produces Middle East are also easily accessible from Ethiopia. ur Company has been in operation since 2004 huge cotton plantations in Humera. If we are close to
knits, denim and other garments based on and we were first producing garments. Our input source and we have the human power available,
the interest of our customers. These prod- Investors still have many things to get if they come
capital was 250 million Birr at the time. Then, it is an ideal place for investment. The land lease is also
ucts are mainly sold in the United States and in Eu- to Ethiopia as the country has a bright future. Not
we expanded into background activities including cheaper here compared to that of Addis Ababa.
rope because our high quality products enable us only our Company but other companies are recog-
textile dyeing and knitting in 2007. Then in 2010, we
to penetrate the market there. nizing the potential the country has. Additionally, the government supports projects be-
brought full vertical integrated system that can part
process textile starting from cotton. And since 2010, we ginning from their inceptions. Our project took a very
The Company has been operating for the past two There is a growing population so the local market
have been operating with a fully integrated system. short time to get started. The governments supports
years in Ethiopia. Our investment here, in Mekele is will grow exponentially. There is also good relation-
from land provision to duty free importation of capital
a state of the art garment industry. Every machinery, ship between investors and the government. They
When we first started out, we had only 250 employees goods were very encouraging; we completed our proj-
we are installing is new. We are bringing the latest are helpful and they cooperate whenever we need
but now the number has expanded to 1,600. Our pro- ect without any bureaucratic hurdles. The government
technology to Mekelle. help from them.
duction capacity has also tripled since then. We used to even did not take long to convince the farmers on the
There may be some challenges here and there be- produce in hundreds of finished garment but now we plot to leave their places for our investment providing
There are many reasons to come and invest in Ethi-
cause we are new for the country and it takes time are producing finished garment in hundreds of thou- incentives.
opia. The owner decided to come to Ethiopia as the
to acquaint ourselves with the environment. But, sands to the market. Currently, we are exporting 70 per-
country is one of the potential suitable countries for This country has much to provide to investors who
with the support from high level officials, we are cent of our produce to the export market. That means
the garment industry. would like to come and invest. The first point is the
getting used to the environment quickly. We did we export up to 350,000 to 450,000 finished garments
to the export market. In terms of revenue, our export abundance of resources in the country. Second, there
The governments support and its willingness to not face that big of a challenge as the rules and reg-
generates up to 500,000 dollars every month. We aim is cheap, trainable, young and energetic labor. The la-
attract foreign investors to the country is also the ulations of the country are known and clear.
to earn a million dollars a month in the near future. bor force can be brought to the expected international
main reason. There is also abundant man power
The industrial park being developed also gives op- standard level in a very short time. Another consid-
which is the major factor of production for invest-
portunity for newcomers to the country. Ethiopia The reason for our investment here is based on our re- eration is access to transportation. There is a growing
ments like ours. Every month we are employing
for sure has huge potentials to become hub for search findings. The community has huge human re- road network in the country.
around 200 workers, mainly females.
Africas light industry. We are installing many ma- source capacity that can be an input for our investment
here. Tigrai region is also a center for transportation Fourth, availability of land is crucial. Unlike other coun-
The cost of electricity and labor is another reason to chineries and there are also needs to bring more
whether you go to Port of Djibouti or other ports. The tries like Bangladesh that develop factories in high ris-
invest in Ethiopia.The countrys strategic location is technology in like mills and accessories. Therefore,
region has proximity to the port of Djibouti compared ing buildings, Ethiopia provides land for investment.
another factor. The position of Ethiopia which en- we can say there is huge potential for the country
to Addis Ababa. There are also upcoming infrastruc- Cheap electricity is also another factor to invest in this
ables us to reach Europe in two weeks and US in in that regard. F
tures developments in the near future. country. The rate is smaller than any other places on the
three and two weeks is another plus. Far East and
globe. So, Ethiopia is ideal place for investment. F
Tigrai region is also close to input source as there are

44 45
..
Tsehay Industry S.C.

Kaliti Metal Products factory
ISO 9001:2008 Certified
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Address:- Addis Ababa ( Head Office)


Tel. 011-434-01-10, 011-435-16-62, 011-434-24-10 Branch Sales Offices:-
Fax: 251-11-434-10 -13 / 251-11-434-99-50
T/Haymanot(A.A) 011-157- 07- 85
P.O.Box: 5751 Hawassa: 046-220-62-03
e-mail: Kalitimetalmkt@gmail.com Adama: 022-112-60-61
website: www.Kalitimetal.com.et Bahirdar : 058-220-53-30
Jimma: 047-211-04-86
DIMMA BEE KEEPING DEVELOPMENT & HONEY PRO-
CESSING PLC

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+2513 44 45 46 24
+251344454625
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Email Dimmaplc@yahoo.com