Invest in Ethiopia Presentation prepared for Canadian Investors - PowerPoint PPT Presentation

Invest in Ethiopia Presentation prepared for Canadian Investors June 28, 2017 Toronto, Canada

Content Key Facts 1. Economic Overview 2. 3. The Goals of the Growth and Transformation Plan Investment Facilities and Infrastructures 4. Investment Opportunities in Priority areas 5. Logistics 6. Investment Incentives 7. Why Invest In Ethiopia? 8. Tourism Attractions 9.

Key Facts

Location:- o In the Horn of Africa o GATEWAY TO AFRICA o AT THE CROSS ROAD BETWEEN AFRICA, MIDDLE EAST, ASIA AND EUROPE

Regional States of Ethiopia Regional States Administrative cities 1. Tigray 1. Addis Ababa 1 (Capital City – 2. Afar Diplomatic 3. Amhara Hub) 4. Oromia 5. Somalia 2. Dire Dawa 6. SNNP 2 3 7. Gambela 8. Benishangul Gumuz 8 9. Harari 11 10 9 7 4 5 6

Key F y Facts cts Population : 100 Ethiopia Land size: Ethiopia & Nigeria 45% (513,000 sq.km) million • 1,140,331 sq. km account for 25% of of the total Land is • World Rank 27 th • World Rank: 13 th total African arable and suitable • Africa Rank 8 th • Africa Rank : 2 nd population. for Agriculture 18 major agro- ecological zones 10 million hectares Rich resources of and 49 agro- of irrigable land cattle and minerals ecological sub- (only 3% utilized) zones

Economic Overview of Ethiopia

A Reg egio ional l Pil illar r of Econom onomic ic Growth wth and S d Stabil ilit ity y  There is macro-economic stability Stability  sustainable economic growth (double digit GDP growth for more than 12 years)  Investor friendly policies  The Growth is broad based. Ethiopia is not only Policy growing, but it is Transforming: Uplifting the society out of poverty and illiteracy  Pro poor policies - poverty is declining  There is visible institutional support: EIC, LIDI, TIDI, MIDI etc… Institutional Support  Infrastructure development: industrial parks, road, railways, irrigation, energy SOURCE: World Bank Country data;

Ethiopia Rising: Ratings Ethiopia Rising World Bank forecasted this year that Ethiopia will be the fastest growing economy in the world The Economist has ranked IMF called Ethiopia the star performer in Ethiopia as the the African Continent this year fastest growing economy in the world. UNCTAD reported that Ethiopia is 2 nd largest recipient of FDI in textile and apparel, next to Vietnam. (FDI flow increased by 46% this year) Ethiopia is emerging as a leading manufacturing hub in Africa . Fitch (rating agency) affirms Ethiopia at ‘B’ . SOURCE: The World Bank; The Economist; Ministry of Finance and Economic Cooperation (FDRE), Fitch, UNCTAD

The Growth and Transformation Plan (GTPII)

Growth and Transformation Plan II (2015-2020) VISION: To become a Carbon Neutral middle income country by 2025. Ethiopia defines middle income more broadly than a quantitative target; including achievement of aggressive poverty reduction and advances in health, education, and the environment. FOCUS AREAS Economic development, focused on an increase in the non-agriculture economy; Manufacturing. Social development by improving the quality of life through integrated progress in health, education, and overall living standards. Environmental development through the sustainable use of natural resources as well as increasing the resilience of the environment to adverse impacts of climate change. 11

The Second Growth and Transformation Plan (GTPII) o Priority sectors: o Agriculture o Industrialization-light manufacturing o Infrastructure o Human resource development and technological capacity building

Export focus  Over the next 10 years, Ethiopia aims to  >50 universities with ½ million create 2 million manufacturing jobs to student population and >1300 develop the manufacturing sector by four- technical and vocation education fold. and training schools with annual  Ethiopia aims for a four-fold growth in intake of 1 million. 70 % in manufactured exports during the coming engineering, technology and naturals decade. sciences.  EXPORT  The development of industrial zones is  On track to generate about 12,000 critical megawatts of power by 2017  Industrial parks are under construction  Developing a 5,000 kilometers of and agro economic zones and railway network horticulture hubs are under plan  Integrated air and sea transport and logistics infrastructure

Infrastructure Massive investments in infrastructure  Electricity  Roads  Rail road  Telecom etc… 15

GTPII Major Targets Infrastructure: Power generation: • Road: close to 17,347 MW Achieve annual 100,000 km Telecom: road average real Electric • Hydropower: • Railway: GDP growth mobile 38.8 coverage: 13, 817 MW 2741km rate of 11 million to • Wind : 1224 90 % percent at the MW 103.8 million end of 2020: • Geothermal: 577 MW

Five Years Average GTP I Projection GTP II Sector Average (2016-2020) Agriculture & 6.6 8.0 allied Activities Industry 20.2 20 Manufacturing 14.7 21.9 Service 10.8 10 Real GDP 10.1 11.0

Priority Sectors of FDI

Priority Sectors For FDI Manufacturing Investment Opportunities with a backward linkage to Agriculture T extiles & Garments/Apparel Leather & Leather Products yarn, fabrics, garments and Apparel  Tanning of hides & skins up to finished level  Leather goods & articles (shoes, garments, etc.)

Agricultural Investment )pportunities Agricultural- Opportunities  Horticulture: Flower, Vegetables, Fruits, Herbs etc plantation,  Cotton plantation  Sugarcane Plantation for the growing sugar industry,  Livestock & poultry breeding for processing

• Canned fruits • Poultry feed • Pineapple jam / marmalade • Canned jackfruits • Soya milk • Macaroni & pasta • Corn flakes • TEJ drink • Maize flour • Maize popcorn • Margarine from vegetable oil • Malt • Avocado oil (industrial use) • Edible avocado • Milk powder oil (dairy product) • Bakers yeast • Red meat • Biscuits processing plant • Corn/maize oil

• Beeswax • Egg powder • Tomato ketchup • Cattle meat • Fruit squash • Tomato soup (ready processing to cook) • Leather sole • Confectionary • Turmeric polishing • Ready to eat • Egg albumen flakes • Vegetable oil vegetables refinery • Mango processing • Sesame oil • Vegetable wax • Milk processing & • Soya bean flour, (CARNAUBA WAX) dairy defatted soya flour • Honey (DSF) • Potato chips • Poultry processing

Mining: Huge untapped resources  Opportunities exist both in upstream & downstream operations  Ethiopia has an emerging oil and gas opportunity  Currently major gold exporter  Ethiopia is Africa’s only producer of opal  Mining potential includes;  Potash, Platinum, Iron and Tantalum 24

CLIMATE E RESILIE LIENT NT GREEN EN ECONOMY OMY STRATEG EGY • clean energy potential • Hydro: More than 45,000 MW • Wind: More than 10,000 MW • Geothermal: More than 5,000 MW Potential • Supply chain opportunities • Engineering & tech. consultancy • Maximize the utilization of the country’s hydro, wind, solar and geothermal resources, develop fuel efficient stoves, reduce the role of hydrocarbon fuels in industry and transport Strategy • Low Level of Emission Emission

Industrial Parks Developments

IND NDUS USTRIAL TRIAL PARK RK DE DEVEL VELOPM OPMENTS ENTS By 2017 Specialisation 1. Hawassa II Apparel & Textile 2. Mekelle Apparel & Textile Apparel & Textile 3. Adama 2Machinery & Equipment 4. Dire Dawa Apparel & Textile 5. Kombolcha Apparel & Textile 6. Kilinto Pharmacutical 7. Bole Lemi II Apparel and Textile

Upcoming Industrial Parks:

IND NDUS USTRIAL TRIAL PARK RKS S DE DEVEL VELOPMENTS OPMENTS Hawasa Industrial Park (HIP) 1.4 million m 2 land 400,000m 2 factory buildings, World- class parks , ready for ‘plug and play’ Strategically located along the new railway corridors Specialized in Apparel and Textile Eco-industrial park (Zero Liquid Discharge) One window service

IND NDUS USTRIAL TRIAL PARK RK DE DEVEL VELOPM OPMENTS ENTS Hawassa Eco-Industrial Park Advantages  Abundant labor with competitive wage  Proximity to Airport, railway  Anchor and leading firms  Attractive incentives

Hawassa Eco-Industrial Park

Apartments for industrial parks Sustainability: Africa’s 1 st park with zero liquid discharge facility (ZLD)

Upcoming Industrial Park Mekelle Industrial Park

HIP’s 1st exports to USA & Canada

PVH and leading manufacturers at HIP

Integrated Agro Industry Parks

IAIP • open area production zones, • controlled environment growing IAIP • precision farming • knowledge hubs and research facilities • social infrastructure and agri-marketing • rural hubs, agri-infrastructure IAIP • collection centers • primary processing hubs