|
Foreign Direct Investment
Too many sectors of Ethiopia’s economy are closed to foreign investment. Although international corporations do not normally operate in some of these sectors, the restrictions project a generally negative image to potential foreign investors in Ethiopia. In some of the closed sectors, in particular air transport, travel operations, and financial services, the financial and trading skills of foreign investors would likely be a positive influence on domestic investors and stimulate domestic investment activity. In addition, the Government should review and reduce or eliminate its current minimum investment requirements. Moreover, although the Ethiopia Investment Agency (EIA) has taken many positive steps toward encouraging private investment, it lacks resources in terms of the necessary scale and content of its investment promotion activities; its staffing, equipment, and information resources; and its access to and status with other Government departments and agencies. To undertake effective promotional work, the EIA should be strengthened.
|
