Remarks by H.E. Hiroyuki Kishino, Ambassador of Japan to Ethiopia,
at the Opening Session of the 3rd Round of the 2nd Phase High-level Forum
on 16 January, 2013

Thank you, Mr. Chairman,
Excellencies, Professors, Colleagues, Ladies and Gentlemen,

Endemen Aderachechu.

It is gratifying that the third round of the 2nd Phase High-level Forum is being held here today.  I would like to express my sincere appreciation to all those who have made preparations for today’s session in which we will discuss foreign direct investment (FDI) with particular focus on how to encourage FDI in Ethiopia.  Our previous two sessions focused on export promotion and I appreciate their useful analyses and pragmatic suggestions, in particular several initiatives shown in the Strategic Export Promotion Seminar to identify champion products that can sell in the global markets.  I hear that Ethiopian business people are now eager to explore champion products for export, and this is a good sign.  Today, I do hope that our discussions will have some positive impact on Ethiopian policies and business practices regarding FDI.

Excellencies, Ladies and Gentlemen,

The Growth and Transformation Plan (GTP) has designated industrial development as one of the two main pillars together with food security to achieve self-sufficiency.  To that end, infrastructure development and human resource development are also designated as priority areas.  FDI is one of the critical elements for the Ethiopian endeavor for industrialization in eight priority sectors.  If investment by foreign companies is continuous, it will bring various positive effects in such areas as capital inflow, introduction of technology, creation of employment and capacity building of the work force.  In addition, if such investment is made in export industries, it will bring foreign currency earnings through increased exports, which was part of our discussion in the previous session on export promotion.  If it is made in import substitution industries, it will save foreign reserves through reduced imports.

At the same time, however, some consideration will be required on what effects FDI will have on indigenous Ethiopian companies.  Will such FDI incorporate Ethiopian companies in supply chains?  Will its foreign technology, either production technology or management skills, spill over to Ethiopian companies in some way or another such as partnerships or business deals?  Here, there is ample room for the host government to introduce schemes favorable to indigenous companies or workers such as technology transfer or capacity building.  I know that Prime Minister Hailemariam is interested in this issue.  If our experience in Japan or East Asian countries is useful, we are pleased to share it with you.

Amesegenalehu.