EIC: Recent Unrest No Significant Impact on FDI

EIC: Recent Unrest No Significant Impact on FDI Recent Unrest No Significant Impact on FDI

Ethiopian Investment Commission (EIC) said the recent unrest has not caused serious impact on foreign direct investment flow into the country.

In a press briefing he gave today, EIC Director-General Fitsum Arega said significant investments have been witnessed during the past three months.

He revealed that investments with capital of 560 million USD were registered during the quarter and this does not show significant decrease from the performance of same period last Ethiopian year.

Some 124 investors have also expressed interest to do business in Ethiopia with 3.5 billion USD capital, the director-general said, adding that of those 74 are Chinese.

Companies from Asia have growing interest to particularly invest in labor intensive projects such as textile, leather and electronics, Fitsum stated.

According to him, agreement was reached with a Chinese company for the construction of an industrial park in Oromia regional state, despite the unrest.

Asked about compensation for companies damaged by the unrest, the director-general said the commission will give compensation to horticulture and floriculture growers, taking into account their role in export and labor-intensive nature of the businesses.

The government is also facilitating conditions to give loans to all affected companies so that they can pay salaries and cover other expenses, Fitsum indicated.

The director-general said only one of the damaged 24 horticulture and floriculture companies has not yet started work, while two of the 23 affected industrial investment projects stand idle.

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