ETHIOPIA’S INCENTIVES ATTRACTING INFLOW OF FDI

ADDIS ABABA, April 30 — The incentives put in place by the Ethiopian government are encouraging foreign companies invest in the country, says Minister for Communication and Information Technology and Co-ordinator of the Economic and Financial Cluster Debretsion Gebremicael.

The government has various incentive mechanisms aimed at promoting private investment and encourages the inflow of foreign capital and technology into Ethiopia, says Debretsion.

Customs duty and income tax exemptions are given for domestic as well as foreign investors involved in eligible new firms or expansion projects in agriculture, manufacturing and agro-industries, among others.

Some 2,146 investment projects with a combined capital of 187.31 billion Birr (about 9.62 billion US dollars), owned by foreign companies have been licensed over the past three years, Debretsion says.

The country’s infrastructure development and abundant labour are contributing to the increase in the inflow of Foreign Direct Investment (FDI), apart from incentives provided, he says.

SOURCE: ENA

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