Publication: Chinese FDI in Ethiopia: A World Bank Survey
Date
2012-11
ISSN
Published
2012-11
Author(s)
World Bank
Abstract
Chinese Foreign Direct Investment (FDI)
into Africa is on the rise and Ethiopia is at the forefront
of this trend. On request of the Government, the World Bank
surveyed 69 Chinese enterprises doing business in Ethiopia
with a 95-question survey in May/June 2012. The survey
covered various aspects of the foreign direct investment
climate in Ethiopia, including infrastructure, sales and
supplies, land, crime, competition, finance, human
resources, and questions about general opportunities and
constraints for doing business in Ethiopia. This report
summarizes the results of survey and provides policy
suggestions in light of the analysis; the report also
provides some broader background of the expected benefits of
FDI into Ethiopia as well as current policies and approaches
to promote incoming investment. Addressing identified
obstacles could help Ethiopia to take better advantage of
foreign investors in order to accelerate the shift from a
predominantly low-productivity agriculture-based economy
towards a higher-productivity manufacturing and export-based
economy. Experiences in successful countries around the
world, and especially East Asia show that foreign investment
is instrumental to facilitate such a structural
transformation and to maintain sustained and broad-based
economic development. This study recommends five main areas
for policy adjustments to facilitate foreign investors
coming into Ethiopia: adjust customs clearance procedures
and trade regulations; facilitate currency convertibility
and increase transparency of the exchange rate policy;
improve tax administration consistency and efficacy; execute
impartial labor regulation; and increase the supply and
quality of skilled workers.
Citation
“World Bank. 2012. Chinese FDI in Ethiopia: A World Bank Survey. © World Bank, Washington, DC. http://hdl.handle.net/10986/26772 License: CC BY 3.0 IGO.”