Chines Textile Giant to Invest USD 945 mln in Ethiopia
- Published on Thursday, 16 March 2017 13:42
The Chinese textile and garment company, Jiangsu Sunshine Group, is to build a mammoth wool factory in Adama Industrial Park at a cost of 945 million dollars. Teka Gebreyessus, deputy commissioner at the Ethiopian Investment Commission (EIC), told The Reporter that the giant Chinese company has decided to invest 945 million dollars. Teka said Jiangsu Sunshine will build a wool factory that would manufacture wool fabrics and export to various countries. President of the company signed the investment agreement recently in Addis Ababa. The company manufactures and sells men’s suits and women’s wear. Established in 1986 Jiangsu Sunshine investment conglomerate engages in wool textile and garment production, pharmaceutical, real estate, energy and ITC sectors in China and many other countries.
The company formerly known as JiangYin Worsted Wool Mill changed its name to Jiangsu Sunshine Group Co. Ltd in 1993. The company is based in Jiangyin, China.
Another Chinese pharmaceutical company, Human Well, is in the process to build a pharmaceutical factory in Debre Birhan town. Teka told The Reporter that Human Well was excepted to invest in the Bole Lemi II pharmaceutical industrial park. However, he said since the company wants to immediately start construction it decided to build the plant near Debre Birhan town. A Chinese construction firm has started building the Bole Lemi II Industrial Park dedicated to the pharmaceuticals sector.
In a related news, the American communications giant, Honeywell, has expressed a keen interest to invest in Ethiopia. Teka told The Reporter that the president of Honeywell recently visited Ethiopia and expressed his company interest to build electric cables manufacturing plant.
Honeywell International Inc. is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services and aerospace systems with an annual turnover of 38 billion dollars.
According to EIC, the first six months of the budget year from July 2016-December 2016 1.2 billion dollars of foreign direct investment was registered. This has shown a sharp increase of 35 percent when compared to the same period last year.
Briefing local reporters on Wednesday in his office Teka said EIC is working aggressively on investment promotion work. “We are working on targeted investment promotion campaign. We are going after big international companies,” Teka told journalists.
According to Teka, Ethiopian embassies are actively participating in the investment promotion campaign. “We work closely with ambassadors residing in Addis Ababa,” Teka said.
EIC participates in international trade and investment fairs where it promotes the vast investment opportunities in Ethiopia. “We have started a one stop service. We have also started a new scheme where we have assigned one professional for each major investment that follow up the progress the investment project makes and the bottle necks the project faces. This person is responsible for helping the company resolve the bottle necks,” Teka said.
According to him, the fact that the industrial parks construction and the government’s firm commitment to transform the country to a manufacturing hub is attracting FDI.
EIC is working with all stakeholders including Ethiopian Customs and Revenue Authority (ERCA), Immigration, and Ethiopian Shipping lines in solving hiccups that investors face. Ethiopia ranks 159 out of 190 countries in World Bank’s Ease of Doing Business Index. “We know that our rank in the Ease of Business Doing is not good but we are working with the World Bank and all concerned local authorities to improve the situation.”
The major problem lies in the logistics sector. “We are trying to make the logistics sector efficient. We are also expediting the visa issuance process.”
Up on the request of foreign investors the government is looking at building Hawassa Industrial Park phase two. “We have built eleven more shades than the original plan. Now we are under preparation to start phase II.”
Big industrial parks are being developed in Adama, Mekelle, Kombolcha, Jimma and Dire Dawa town. In addition, work on four specialized agro processing parks in Oromia, Tigray, Amhara and Southern regional sates has commenced.