Where does EU investment size stand in Ethiopia? Draft report presented following general assembly meeting and networking of EUBFE
On April 13, 2018 EUBFE members held their first annual meeting which was followed by thematic networking.
The event saw an annual activity and financial report of 2017 and plans for 2018 by the executive director, Mr. Nahom F. Abraham. External audit report was part of the report by the executive director. The general assembly ratified both planning for 2018 and audit report.
Following the general assembly meeting, a presentation on the findings of the EU business mapping study conducted in collaboration between EU delegation and EUBFE was made by Mr. Carl Daspect, economic attaché at the EUD-Ethiopia.
In his presentation Mr. Carl indicated that the goal of this joint study is to periodically measure the level of EU investments in Ethiopia so that the joint work of EUD and EUBFE in the dialogue with Ethiopian authorities can be facilitated and more targeted. In addition to the EU business mapping study, two sectoral analyses (pharmaceutical and logistics) were developed and made available to EUBFE members.
Despite significant challenges in availability and reliability of data as well as disparities in definitions and standards of FDI, the draft report was able to depict a picture of EU investment size, employment trends, nature of ownership and geographical coverage. To this end, the report found that the EU block investment stands third in terms of FDI stock position, behind Chinese and Turkish investment, with an FDI stock of approximately 310 mln USD. 70% of EU investments are in the manufacturing sector, a priority sector of the Ethiopian government, creating more than twenty thousand permanent and close to thirty thousand temporary job opportunity. About 60% of EU investments are in Addis Ababa with the Oromia region accounting for about 27%. Unlike other FDI, EU investments were found to account to about 50% joint investment form, indicating willingness and interest of EU companies to collaborate with local ones. Following comments and suggestions by participants, Mr. Daspect reiterated that the final draft shall incorporate the suggestions made during the event with the refined report made available soon.
