Ethiopia the Wonders of Africa and the world

In our research to evaluate Ethiopia risk, prior to our visit, we figured some distance between the Ethiopia of the 1980s and the Ethiopia of today, and we became fascinated with Ethiopian history & culture we decided to share some of these with you. 

Ethiopia, is a country located in the Horn of Africa. It is bordered by Eritrea, Djibouti, Somalia, Sudan, Kenya, South Sudan. With over 90 million inhabitants. It occupies a total area of 1,100,000 square kilometers, with its capital Addis Ababa. 

• Ethiopia, is where the oldest form of Homo sapiens has been found. 
• It is Africa's oldest independent country. 
• The only African country to defeat a European colonial power. 
• Ethiopia is one of only two nations in the world never to have been occupied. 
• Was one of the four most powerful kingdoms in the past the Axum kingdom. 
• The legendary Ark of the Covenant, the relic said to hold the 10 Commandments, is claimed to be housed in a church in Ethiopia. 
• Ethiopia is the only country in Africa with its own alphabet. 
• Ethiopia is the only country in the world to have 13 months in a year this makes Ethiopia about 7.5 years behind the United Kingdom. 
• Ethiopians celebrate New Year in September, meaning that they are currently only a couple of months into the year 2008, whilst we near the end of 2015. 
• Ethiopians measure time from sun rises and count time on the opposite side of the clock. 
• It has a unique cultural heritage, being the home of the Ethiopian Orthodox Church - one of the oldest Christian churches - The world's oldest surviving illustrated Christian Bible exist in Ethiopia. 
• Ethiopia is one of the founding members of the UN & the African base for many international organizations. 
• In May 1995 a free and democratic elections took place bringing into power prime minister Meles Zenawi the founder of the new Ethiopia & Negasso Gidada as president. 
• The country is regarded as one of Africa's most stable. 
  

8 REASONS WHY ETHIOPIA

1. On 21st October there was a wonderful meeting in London "UK-Ethiopia Trade & Investment Forum". Organised by DMA together with the Ethiopian Embassy and WAFA, and led by Hon Dr Tedros Adhanom, Minister of Foreign Affairs, the Forum mentioned that  Ethiopia is one of the fastest growing economies in Africa (at some 8% annually), with a workforce that is large (a population of over 90 million), cheap (a tenth the price of China) and young (70% under the age of 25). Ethiopia has an ambitious of becoming a middle income country within the next decade, with zero net carbon growth, and of replacing Nairobi as the aviation hub of sub-Saharan Africa. Ethiopia ranks sixth on Barclay’s Africa Trade Index and is expecting $1.5 billion Foreign Direct Investment in 2015 (up from $953m in 2014 making it the third largest recipient in Africa). there are some UK companies already operating in Ethiopia to name a few – Diageo, Pittards, GSK and Vasari. 
2. According to the UK independent think tank Overseas Development Institute (ODI) and the US Department of State and both the UN and the International Chamber of Commerce (ICC) identified Investment Climate in Ethiopia - in short that Ethiopia considered a country with a huge and wonderful climate and almost no corruption. The political environment is very hospitable to investors. There is untapped investment potential, as well as continuous incentives by the government towards foreign investment. 
3.  Stable Economic Environment • Government commitment to private sector. Safe and secure working and living environment. 
4.  Liberalised Economy •100% foreign ownership of investment with $100,000 USD sole foreign investment.
5.  Strong investment guarantees •  The constitution and the investment code guarantee the protection of investment • Ethiopia is a signatory to the international investment related institutions (MIGA), (ICSID), (WIPO), WTO and (BITs). 
6.  Attractive investment incentives: 100% exemption on all imports for the establishment of enterprises or for the expansion and upgrading of existing ones.• 0% export tax. 
7. Trainable labour •  With a population over 90 million, Ethiopia has a young, trainable and disciplined labor force. • Average private sector wage £30 per month, • Good standards of spoken and written English.
8. Good infrastructure standards • 8 domestic airport. • Good road infrastructure. • New Railways and rail services. • Telecoms – connect all regional cities and a number of smaller towns. • Power supply – The main industrial towns are all connected into the national grid and electricity is relatively cheap. 
   
   

Finally we look at Ethiopia gemstones:

Artisanal mining and small-scale-miners dominated the mining operation. Almost all of gemstone mining is done on a low-tech digging by hand or with light equipments, seeking pay dirt. Miners collect and sell rough gem to local market. 

Gems and jewelry is an emerging sector of Ethiopia with an immense export potential. The current level of gemstone trade is expected to reach more than £100 million in the future. Most of the exports are in the form of rough stones, mainly because of lack of sophisticated processing industry in the country. 

An enormous export market for the Ethiopian gemstones exists in Europe, USA, Asia and the Middle East. Small players are involved in cutting and polishing by simple and unsophisticated tools which are not preferred by many trader/exporters of gems. 

Currently there are limited relevant projects mainly that deals in Opal, due to lack of necessary tools and know how has been hindrance to the development of lapidary industry. 

The government of Ethiopia is losing income as most of the beneficiaries in this regards has been illegal foreigners who buy these minerals cheaply and illegally from the miners and export them abroad illegally. 

Ethiopia strategically located close to some of the major markets. And it has one of the largest deposits of gemstone variety, including some highly priced and demanded gemstones. There is also availability of low cost labor compared to those in other countries. In our opinion there is no doubt that Ethiopia could become one of the major players in the gems world. this also evident by Gemfields acquisition of 75% or interest in an emerald exploration in Ethiopia. 

Conclusion: Ethiopia investment climate is ideal.