BY KASSAHUN CHANIE
African firms are showing increasing interest to investing in Ethiopia following the nation’s active effort to the implementation of African Continental Free Trade Area (AfCFTA), particularly over the past four years, a development expert said.
Of the 55 African Union member states, close to 50 states, Ethiopia being the 22nd, have so far signed the agreement in 2018, in Kigali, Rwanda.
Joining AU’s effort to create a single strong African market, the government of Ethiopia has set aside funds for the building of a free trade zone as part of the country's 10-year development plan.
Abeselom asserts it is this active engagement of Ethiopia to the implementation of AfCFTA that African corporations are eying the Business and investment opportunities in Ethiopia.
“If we take the last four years in Ethiopia, a number of companies have shown good appetite to invest in Ethiopia. They are encouraged with the presence of the African Free Trade Zone in the country.”
Since Africa is a continent with 1.2 billion people with over 60 % youth population, it would be difficult to change the without realizing AfCFTA, according to Abeselom.
He also said AfCFTA has been put to a test by the consequences of COVID-19 as well as the trade ties of some African governments with their colonial masters.
“Since many African states have a strong trade tie with the colonial powers, there are challenges to easily come to the AfCFTA platform. So, coming to AfCFTA needs transition work. And States should be committed for that,” Abeselom underscored.
Abeselom added that close collaboration between the African governments and private stakes is deemed necessary to successful AfCFTA operationalization.