From 5 to 8 March 2018, His Excellency Dr. Mulatu Teshome, President of Ethiopia, will host the Second International Agro-Industry Investment Forum in Addis Ababa. The high-level Investment Forum will focus on food processing, textiles and garments, leather and leather products, as well as allied sectors such as packaging and renewable energy. It will feature participants from the public and business sector, including current and potential investors, international and domestic enterprises, industry associations, international organizations and financial institutions, as well as representatives from the Government of Ethiopia.
H.E. Mr. Ahmed Abtew, Minister of Industry, Ethiopia
Statements by high-level dignitaries
High-level representatives of international organizations
High-level representatives of financial institutions and the international business sector
Mr. LI Yong, Director General, UNIDO
Keynote and official opening address
His Excellency Dr. Mulatu Teshome, President of Ethiopia
In order to sustain Ethiopia’s high economic growth rate, recent government reforms and incentives have created new investment and business opportunities in the industrial sector. The session will introduce Ethiopia’s business environment and investment climate, including government efforts to attract leading global firms through the establishment of state-of-the-art industrial parks and the development of related investment incentives. Representatives of international companies operating in the country will talk about their respective experiences of investing in Ethiopia.
The session will look at opportunities for accessing finance for investment in agro-industry and allied sectors. The government will present incentives for investing in existing and new industrial parks. A panel discussion featuring representatives of development finance institutions, international financial institutions and national banks will further elaborate on financing possibilities for the business sector.
This session will introduce government initiatives that promote agricultural commercialization and incentives that support private sector engagement in the agricultural sector, focusing on sub-sectors with comparatively high growth and investment potential. In particular, the session will highlight untapped investment opportunities in the following sub-sectors: livestock (e.g. beef and dairy sectors, small ruminant production and marketing, apiculture and fisheries), horticulture (flowers, fruits, vegetables, spices, aromatic and medicinal plants), including the 5,000 ha of land designated for the development of horticulture clusters; oil and plantation crops including sesame, cotton, coffee and tea; and industrial crops such as sugarcane, durum wheat and malt barley.
In order to support the growth of the agro-processing sector, the government plans to establish integrated agro-industrial parks (IAIPs) across 17 zones in the country. These parks will focus on adding value to locally sourced agricultural products, and provide firms with access to infrastructure, utilities and business services, thus addressing many constraints related to private sector development. The concentration of activities and services in one area is expected to facilitate economies of scale for the transformation of agricultural products for export or further commercialization. This session will present current progress in the establishment of the first four pilot IAIPs. It will also highlight specific investment opportunities and incentives offered for companies interested in operating within these parks. The session will also present different opportunities for private sector involvement in the development of the remaining 13 IAIPs.
While Ethiopia has penetrated international markets for various food products, imports continue to grow: food imports in 2010 accounted for US$ 959 million and in 2015 reached US$ 1.69 billion. Given the agriculture potential of Ethiopia, combined with state-of-the-art industrial infrastructure, the country could drastically reduce its food imports with additional processing capacity.
This session will look into specific agro-processing investment opportunities in agricultural sub-sectors such as coffee, oilseeds, cereals, dairy, honey, and fruits and vegetables, aimed at the country’s large internal market as well as international markets.
The Government of Ethiopia has undertaken the development of ten new sugar factories across the country, including regions where the new IAIPs are being established. This session will present specific investment opportunities in downstream products of the sugar industry, including paper, renewable energy, ethylene and animal feed. Joint venture opportunities in sugar factories will also be presented.
There is increasing demand and opportunity for investment in machinery and equipment related to the processing of food and beverages in Ethiopia. This includes meat, fish, fruits and vegetables, dairy products, sugar and sugar products, brewery, winery, soft drinks, and the bottling of mineral water, among others. There is also growing demand for firms specialized in agro-logistics that provide integrated cold chain solutions, from cold storage facilities to refrigerated transport of fresh and frozen food products.
The production and distribution of packaging materials and related technology also offers ample opportunities for investment, given that almost all Ethiopian food processing companies import ready-made packaging for products such as biscuits, pasta, flour, cooking oil, milk, water, juice, coffee and tea, among others.
This session will focus on investment opportunities in: the provision of machinery for processing of food and beverages (targeting Ethiopian food processors); local production and supply of primary, secondary and tertiary packaging materials for perishable and non-perishable food products; and the provision of integrated cold chain solutions and bulk transportation.
An abundance of raw materials, a vast labour force and low energy costs give the Ethiopian textile and garment sector a comparative advantage over other countries and regions. This includes processes from the spinning, weaving and finishing of textile fabrics to the manufacturing of knitted and crocheted fabrics, carpets and sportswear. In this session, representatives of the government, sector specific institutes and associations, and the international business sector will discuss investment opportunities in the production of cotton fibers, textiles and garments.
With an annual production of 5 million tons of hides, 8.1 million tons of sheepskin and 7.5 million tons of goatskin, Ethiopia’s leather industry offers immense investment potential. In this session, representatives of the government, sector specific institutes and associations, and the international business sector will discuss investment opportunities from tanning to the finishing and manufacturing of luggage items, handbags, saddlery and harness, footwear, garments and other leather goods.
Closing remarks will be delivered by Mr. Philippe Scholtès, Managing Director of UNIDO, followed by a vote of thanks and official closing by H.E. Dr. Mebrahtu Meles, State Minister, Ministry of Industry of Ethiopia.