Steadily rising Chinese investment projects
Reporter, Ethiopia
February 7, 2009
Hayal Alemayehu
Chinese companies set foot in Ethiopia with state-run construction firms such as China Road and Bridge Corporation (CRBC), clinching road projects in the country and offering sub-contracts to private Chinese contractors.
Over the last several years, however, Chinese private companies have swarmed in almost every major investment area in the country, including manufacturing, real estate development, restaurant and hotel business and agro industries, among many others.
Steadily rising over the last several years, Chinese licensed investment projects have reached 828, most of which are registered in the manufacturing sector, according to data compiled by the Ethiopian Investment Agency (EIA).
Of the 828 investment projects, 16 are joint ventures with Ethiopian counterparts while the rest are exclusively Chinese.
Some 192 of these projects had already gone operational while eleven are under implementation according the EIA. The rest are yet to be implemented.
The combined capital of the Chinese investment projects amounts to over 12.5 billion birr, according to the federal investment agency. When and if all the licensed projects go operational, they are expected to create temporary and permanent job opportunities for over 119,000 people.
Over sixty percent of the Chinese investment projects in the country are licensed under the manufacturing sector with a combined registered capital of over 2.5 billion birr. The federal investment agency had licensed 497 Chinese investment projects in the manufacturing sector, of which 114 are currently operational while eight are under implementation phase.
The construction sector, which paved the way for the Chinese companies to enter the Ethiopian market, is currently the second major sector for the Chinese investment projects in the country. The federal investment agency has licensed 70 Chinese investment projects under this sector with an aggregate capital of over 1.6 billion birr. Twenty-one of these investment projects are currently operational.
Classified in one category, real estate, renting and business activities is the third major sector for the Chinese investment projects in the country. There are over 91 Chinese investment projects licensed by the federal investment agency under this sector with a combined capital of over 940 million birr. Of the 91 licensed projects under the real estate, renting and business activities, thirty-four are currently operational. Century Village is one of the major Chinese real estate companies in the country currently building villas and residential units with a Chinese workmanship.
Hotels and restaurants is the fourth major sector the Chinese investment projects are focused on. Along with the steadfastly increasing Chinese businesses in Ethiopia, particularly in Addis Ababa, one can easily notice that once rarely available, Chinese restaurants are now steadfastly flourishing in the city, catering for both the local citizens and the growing number of Chinese in the city.
The federal investment agency has licensed over 107 Chinese investment projects under hotels and restaurants with a combined capital of 906 million birr. Thirteen of these projects are currently operational.
Agriculture, hunting and forestry; education; health, mining and quarrying transport, storage and communication; wholesale and retail trade are the other major investment sectors in the country which the Chinese investment projects are involved in.
Aside from the formally registered Chinese investment projects, there are a number of business outlets providing manufacturing and other services in many corners of the city which have significantly contributed to the growth of Chinese businesses in the city and the country as well.