Public-Private Dialogue between foreign businesses and Ethiopian government is in its final stage of preparation
The development of the second public-private dialogue (PPD2) has seen two key issues distilled for discussion with the relevant high-level Ethiopian authorities; taxation& auditing and logistics & clearance. EUBFE, which co-chairs the technical team comprising of foreign business associations tasked at developing the issues for PPD, has worked tirelessly to collect, analyze and finally present the final list of challenges to the Ethiopian Investment Commission for approval. As soon as date for the high-level PPD is decided, members shall be informed. It is to be recalled that the previous PPD deliberated on Forex and Business Visa issues with the National Bank of Ethiopia and the Immigration and Nationality Affairs Authority, resulting in a the introduction of numerous forex management directives and the launch of e-visa.
EUBFE represented EU businesses in Ethiopia at a global summit of EU Chambers in Brussels
EUBFE took part in an annual summit of global European Chambers of commerce hosted by the European Commission’s Directorate for Internal Market, Industry, Entrepreneurship and SMEs (DG-GROW). The three days summit brought together more than 30 Eurochambers from around the globe with EUBFE among the three active Eurochambers in Africa to attend.
Two days of the summit were dedicated to discussions with representatives of the various European Commission’s directorates and representatives of the EU parliamentarians regarding improved collaboration between EU chambers and EU trade negotiations, future plan of the commission and potential for collaboration and other pertinent developments that are relevant to EU businesses operating outside the EU economic zone.
The concluding date saw general assembly meeting of European Business Organizations Worldwide network (EBOWWN), to which is a full member since 2017. The EBO Worldwide Network stands as the sole organization representing European business interests in markets outside the European Union. It represents a network active in over 35 key markets that serves European multinationals, as well as micro, small, medium and large enterprises. European chambers of commerce and European business associations within the EBO Worldwide Network work on a daily basis with European Union delegations across the globe in the shared interest of supporting European companies.
Where does EU investment size stand in Ethiopia? Draft report presented following general assembly meeting and networking of EUBFE
On April 13, 2018 EUBFE members held their first annual meeting which was followed by thematic networking.
The event saw an annual activity and financial report of 2017 and plans for 2018 by the executive director, Mr. Nahom F. Abraham. External audit report was part of the report by the executive director. The general assembly ratified both planning for 2018 and audit report.
Following the general assembly meeting, a presentation on the findings of the EU business mapping study conducted in collaboration between EU delegation and EUBFE was made by Mr. Carl Daspect, economic attaché at the EUD-Ethiopia.
In his presentation Mr. Carl indicated that the goal of this joint study is to periodically measure the level of EU investments in Ethiopia so that the joint work of EUD and EUBFE in the dialogue with Ethiopian authorities can be facilitated and more targeted. In addition to the EU business mapping study, two sectoral analyses (pharmaceutical and logistics) were developed and made available to EUBFE members.
Despite significant challenges in availability and reliability of data as well as disparities in definitions and standards of FDI, the draft report was able to depict a picture of EU investment size, employment trends, nature of ownership and geographical coverage. To this end, the report found that the EU block investment stands third in terms of FDI stock position, behind Chinese and Turkish investment, with an FDI stock of approximately 310 mln USD. 70% of EU investments are in the manufacturing sector, a priority sector of the Ethiopian government, creating more than twenty thousand permanent and close to thirty thousand temporary job opportunity. About 60% of EU investments are in Addis Ababa with the Oromia region accounting for about 27%. Unlike other FDI, EU investments were found to account to about 50% joint investment form, indicating willingness and interest of EU companies to collaborate with local ones. Following comments and suggestions by participants, Mr. Daspect reiterated that the final draft shall incorporate the suggestions made during the event with the refined report made available soon.
Panel discussion on the impact of the recent Ethiopian Birr devaluation
Intellectual Property rights protection in Ethiopia #2
The two topics at the agenda were (i) improving the allocation of forex and (ii) better immigration procedures. Following initial recommendations made by the business communities in June 2017, both Immigration and NBE came prepared to the meeting offering concrete solutions and commitments. EIC and the business communities also agreed on the steps forward in order to keep this Public-Private Dialogue productive and sustainable.
European Business Organisation Worldwide Network (EBOWWN)'s Annual General Assembly
The EUBFE participated from June 19 to June 21 to EBOWWN’s AGM where its application to become a member of the organisation was accepted. By joining EBOWWN, the EUBFE will benefit from best practices sharing, will establish itself as the official representative of the EU business community in Ethiopia and will be able to raise important issues faced by EU businesses in developing countries. More information on EBOWWN can be found on its website (wwww.ebowwn.eu)
EUBFE 1st Thematic Breakfast
On June 14th, 2017, the EUBFE held its first Thematic Breakfast, at the Ramada Addis. The Guest Speaker, H.E Dr. Yohannes Ayalew – Chief Economist and Vice Governor of Monetary Stability at the National Bank of Ethiopia (NBE) presented the view of the NBE on FOREX, notably regarding: (i) current conditions; (ii) considered solutions by the NBE to improve the situation; and (iii) forecast for the short to medium-term. A lively Q&A session followed.
EUBFE Official Launching
On March 29th, 2017, the European Union Business Forum in Ethiopia (EUBFE) celebrated its official launching, following its formal registration as ‘Foreign Investors Association’ under Ethiopian law. The registration shall facilitate the work towards achieving EUBFE’s main mission: to improve the business environment in Ethiopia in order to enhance commercial and economic ties between the EU and Ethiopia.
New Memorandum of Understanding with ERCA
In December 2016, the EUBFE signed a new Memorandum of Understanding (MoU) with ERCA in order to facilitate information-sharing and to provide a channel for the EU business community to raise its issues and to express its remarks and questions. The new MoU notably set-up a Steering Committee in charge of ensuring the effectiveness of the MoU and to facilitate discussions.
Intellectual Property rights protection in Ethiopia
On September 6th, 2017, the EUBFE together with Mehrteab Leul & Associates Law Office, held a session on the protection of Intellectual Property rights under Ethiopian law. Discussions centered on trademarks registration and protection.