According to the report in the Financial Times, in emerging markets many international companies have already sought new countries to be at their new production bases, due to falling commodity prices and Chinese demand dwindling. Therefore, companies want to invest in other developing countries, especially in sub-Saharan Africa. That will often mean having Ethiopia on their shortlist.
Turkey is currently the leading country investing in Ethiopia – Turkish companies have invested $1.2bn in the last decade. Other big names that have recently announced investment plans include Unilever, GE and GSK. By 2020, Coca-Cola hopes to sell 100m unit cases in Ethiopia, putting it on par with Egypt and South Africa.
On one hand, there is no doubt that investors from other countries could help Ethiopia to develop its economy and improving the standard of life for people in Ethiopia; on the other hand, domestic companies may be reinforced by these international companies on account of technology, capital and markets.
This form of development can be regarded as the part of the process of globalization. Thus, from my perspective, although the government of Ethiopia use liberal market policy to attract more investments to develop its economy, it should take steps to protect their domestic industry. However, it is sometimes difficult to control the processing of globalization, because ‘a globalized present inescapably extends responsibility beyond representatives of local and national governments to the individual’ (Barbara Adams, 1996).
Note: Barbara Adams, ‘Re-vision: The centrality of time for an ecological social science perspective’ in Lash et al (ed.) (1996) Risk, Environment and Modernity
Read the full article at http://nazret.com/blog/index.php/2015/03/13/em-investors-need-ethiopia-on