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Commercial Reports
Trade Mission Boasts Concrete ResultsUS Embassy – Addis AbebaCommercial Section November 19, 1999 Source: Department of Commerce - National Trade Data Bank, March 1, 2000 ------- 1. The November 6-14 visit of corporate representatives with the Ethio-American trade and investment council generated numerous tangible results. One U.S. firm plans to establish both marble products factory and a group of refrigeration facilities. Other U.S. companies may soon establish plants to assemble computers, manufacture sportswear, produce shampoo and other beauty aids, and grow and export bamboo. Nearly half of the 27 U.S. firms represented on the trade mission have already applied for investment licenses, and most have lined up local business partners. The Ethiopian government and private sector community provided a warm and generous reception for the delegation. The week's events included several minister-level briefings and receptions, a roundtable discussion with the chamber of commerce, and a two-hour meeting with Prime Minister Meles, who said the intention of former emigrees to return and invest in the country is making the diaspora a "net gain" for Ethiopia. End summary. ------------------------- 2. The Ethio-American trade and investment council (EATIC) organized the visit of corporate members to Ethiopia from November 6-14. EATIC is a non-profit and non-partisan association based in Houston, with branch offices springing up in Seattle, Chicago, Boston, California, Florida, and the Washington-DC area. The council is dedicated to strengthening and facilitating trade and investment ties between the United States and Ethiopia. The 27 firms represented in the trade mission were from various regions of the United States and covered a variety of sectors, including telecommunications, oil and gas development, computers, garments, health care, and international consultants in the financial and information management fields. 3. The most prominent participant in the trade mission was Francis Schaffer of F.C. Schaffer and Associates based in Baton Rouge, Louisiana, a company that has been involved in Ethiopia's sugar industry for many years. The delegation also included the former U.S. ambassador to Sierra Leone and Burundi, Cynthia Perry, who is now the director of international advisory services at FCA corporation. One firm was created as a consortium of several companies primarily to take advantage of the trade mission. Otherwise, most of the firms were small and new to market, with little international experience. in many cases, the representatives were Ethiopian-Americans, some of whom had not returned to the country of their birth since emigrating many years ago. -------------------- 4. The Ethiopian government and private sector demonstrated energetic support for the trade mission. Senior-level officials from the ministry of trade and industry, investment authority, and the ministry of foreign affairs joined in VIP arrival formalities at the airport. Local chamber of commerce officials, the council's advance team, and embassy officers participated in the arrival party as well. The council arranged television and newspaper interviews at planeside, and invited media to attend functions throughout the week. 5. The mission kicked off on November 8 with a U.S. embassy welcome briefing on the commercial climate in Ethiopia, led by the ambassador. During the remainder of he morning, ministers of trade and industry, mines and energy, and transport and communications gave short synopses of the developments and performance in their sector and highlighted opportunities for foreign participation. The tourism commissioner, the general managers of the investment and privatization offices, and a national bank representative concluded the morning meetings with additional briefings. 6. On November 9, the mission joined 160 members of the Addis Ababa chamber of commerce to discuss the problems and potential for investment in 12 commercial sectors in Ethiopia, including health care, tourism, finance, agriculture, telecom, construction, and technology. the mission devoted the rest of the week pursuing plans and ideas with government representatives and private sector contacts. ------------------- 7. The most promising development from the week's events was the alliance formed during the roundtable discussion of the U.S. firm "Oasis of Life" with a prominent local business. The two companies plan to sign a memorandum of understanding at the investment authority on November 17 pledging cooperation in 14 joint ventures. The list of projects includes the establishment of a marble powder molding plant, a cold storage leasing facility, spice development, fertilizer production, frozen chicken exports, and a refrigerator assembly plant. Another firm is preparing to form a computer and accessories assembly plant, while still another is planning to launch a textiles and sportswear manufacturing plant to take advantage of Ethiopia's huge potential in raw leather material. A U.S. company will also build a shampoo and beauty products factory while another is trying to obtain land to grow bamboo for export to the company's bamboo products facility in the United States. In fact, EATIC council representatives announced that nearly half of the mission members have already applied for investment licenses to operate in Ethiopia. --------------------------- 8. As final evidence of Ethiopia's support for the trade mission, prime minister Meles Zenawi met with the entire delegation on November 13 for nearly two hours. EATIC president Gezahgen Kebede told econ/com officer and DCM that the prime minister expressed gratitude for the mission's efforts and interest in Ethiopia's opportunities, and welcomed their eagerness to invest. Gezahgen said the prime minister apologized for considering the Ethiopian diaspora a net loss and a brain drain for the country. Now he believes it was a mistake to lose hope in their exodus. The return of Ethiopian emigrants to invest and trade with the country of their birth will more than negate the prior loss and lead to a net gain, he said. --------------------- 9. According to the trade counselor at the Ethiopian embassy in Washington-DC, Mohammed Gurad, the government will grant the Ethio-American trade and investment council office space in Addis Ababa so they can maintain a permanent base to forge future commercial links and assist the efforts of their members. EATIC is in the process of obtaining a license to operate in Ethiopia as an NGO, he noted. Mohammed also said the council is planning a reverse trade mission to the United States for the fourth quarter of 2000. ------- 10. Although formed only recently, the Ethio-American trade and investment council is dead serious about its intention to forge greater economic and commercial ties between the two countries. Embassy support for the council's visit has apparently borne fruit with the promise of concrete investment projects in the pipeline. The Ethiopian government demonstrated its eagerness to assist in one of the few tangible signs of continued commercial interest in the country of late. In our view, the mission's visit demonstrates that a speedy and peaceful resolution to the border hostilities could entice other businesses to investigate the opportunities in Ethiopia. The fruitful results of the mission gives us hope that private sector interest in Ethiopia will rekindle faster than expected after the country's protracted dispute with Eritrea. |