Kenyan firms eye Ethiopia as new investment hub

A number of Kenyan companies are gearing to invest in Ethiopia as a new growth market, with the two countries opening up their boundaries.

President Mwai Kibaki and Ethiopian Prime Minister Hailemariam Dessalegn on Wednesday signed an agreement meant to open investment opportunities and improve trade between the two countries.

The two nations have a total population of 130 million people.

Inter-country trade

“We need to move our teamwork from just political interests and regional security to include improving inter-country trade to benefit the over 130 million people living in both countries,” Mr Hailemariam said.

Among the companies that expressed interest in investing in Ethiopia during the Premier’s visit include Equity Bank, Safaricom and Brookside. East African Breweries and Bidco have previously registered interest in the market.

During a breakfast meeting with the Kenyan business community on Thursday, Mr Hailemariam — who was on his first trip outside Ethiopia since he became the Prime Minister — outlined his country’s investment priorities as mainly agriculture and manufacturing.

“Special priority will be given to anything that will earn Ethiopia foreign income,” he said.

Equity Bank expressed interest in launching operations in Ethiopia, eyeing opportunities in agricultural financing and the budding small and medium enterprises (SME) sector.

Perfect market

“We are experts in financing agriculture and SMEs, which drive the Ethiopian economy. We feel this is a perfect market for this bank and we shall be approaching the Finance minister with an application to operate in the market,” Equity chief executive James Mwangi said.

Brookside chairman Muhoho Kenyatta told the Premier — when he visited the company’s premises — that the company considers Ethiopia as a potential strong market for its products.

“We would like to include Ethiopia as one of our key markets in this region,” Mr Muhoho said.  

The Premier also visited Safaricom where he held talks with the company’s chairman and management, requesting them to establish partnerships with Ethiopia’s ICT sector.

Tourism is also bound to benefit after the Premier said he would form a committee to look into various opportunities that could be exploited in the sector.