Gov’t uneasy about inactive foreign investors

The Ethiopian government has decided to revoke the investment license of at least 2500 foreign direct investors who have not started investment. The majorities of the 65, 000 investors who have been given the license in the past 15 years have not been operational.

According to information obtained from the Ethiopian Investment Agency (EIA), investors from Turkey, India and China have been showing an interest to invest in farming, manufacturing and the service sectors. However, the government has been concerned at the fact that investors from Europe and the U.S. who disappear after being given the license.

In the past three years alone, 2164 projects with a 51 billion birr capital have been given license although only 637 projects have entered the production phase.

The investment law stipulates that it can revoke a license unless an investor reports to the Agency every six month and renews the license yearly. The government had waited for around 10 years giving a chance to the investors to go operational.
Disgruntled investors had relocated to other African countries or have left the country altogether due to corrupt and troublesome practices. Reports indicate that investors from Chinese and Indian investors are getting illegal benefits by working together with Ethiopian government officials especially in the commercial framing, manufacturing, roads construction, telecom and electric sectors.ESAT News