VII DEVELOPMENTS IN INVESTMENT SECTOR During the fourth quarter of 213/14 Ethiopian Investment Agency Regional Investment Offices issued investment licenses to about 1,21 projects with a total capital of Birr 141 billion The number of approved investment projects the registered investment capital decreased by 143 518 percent on annual 116 644 percent on quarterly basis wing to the decline in the newly registered number of projects in Addis Ababa, es pecially in construction sector as the dem for the machine renting is declining the government also ceased to provide incentive to the subsector (Table 71) With respect to ownership, about 997 percent of the approved projects were private of which 1,117 projects (93 percent) were domestic the remaining 8 projects (67 percent) foreign Foreign investment projects recorded an investment capital of Birr 58 billion; accounting for 41 percent of the total investment capital registered during the review quarter Compared with the preceding quarter foreign investment projects slowdown by 545 percent despite increased in investment capital by 7 percent Similarly, four public investment projects with a capital of Birr 4949 million were registered during the same period The approved investment projects are expected to generate employment opportunities for 138,999 thous workers of which 66,252thous or 477 percent would be permanent 523 percent casual (Table 71) 1
Table 71 Performance of Approved Investment Projects Type of Projects 1 Investment 2 Private Investment 21 Domestic Investment 22 Foreign Investment Items [in million Birr] [in million Birr] [in million Birr] [in million Birr] [in million Birr] 3 Public Investment Source: Ethiopian Investment Agency 212/13 213/14 QIV QIII QIV Percentage changes A B C C/A C/B 1,41 1,359 1,21 143 116 29,399 39,765 14,137 518 644 36,26 92,23 66,252 83 281 6,493 114,55 72,747 23 362 1,39 1,355 1,197 139 117 11,972 31,538 13,6421 146 567 36,26 85,644 64,452 78 247 6,493 14,623 7,147 16 33 1,214 1277 1,117 8 125 6,59 117256 7,8549 28 33 17,464 19644 18,251 45 71 35,923 6699 41,378 152 382 176 78 8 545 26 5,463 19,812 5,7872 7 78 18,742 66, 46,21 1465 3 24,57 37,633 28,769 171 236 11 4 4 636 17,427 8,227 4949 972 6,559 1,8 9,432 2,6 2
With respect to sectoral distribution of projects, real estate, renting business activities is the leading sector in terms of number of projects (36 percent) followed by manufacturing ( 257 percent), agricultural project (149 percent), construction (142 percent), hotels restaurants (58 percent) the rest is taken by other sectors In terms of employment opportunities, about 455 percent of permanent employment is envisaged to be created by manufacturing sector followed by construction (328 percent), agriculture (8 percent) health social work (67 percent) On the other h, about 875 percent of casual employment would be in manufacturing agriculture sectors (Table72) Table 72 Investment Distribution by Sector during the Fourth Quarter of 213/14 Sectors Agriculture, hunting forestry Construction Education Electricity, gas, steam water supply Health social work Hotels restaurants Manufacturing Mining quarrying Other community, social personal service activities Real estate, renting business activities Transport, storage communication No of Proj (in Millions of Birr) Perm Emp Emp 179 149 1,512 16 5,31 8 31,748 436 171 142 2,2726 161 21,744 328 4,21 55 8 7 886 6 343 5 69 1 1 8 1179 8 4,453 67 1,117 15 7 58 1,5663 111 2,544 38 1,982 27 39 257 6,715 474 3,116 455 31,894 438 4 3 192 1 52 1 85 1 51 42 1239 9 183 3 161 2 368 36 1,659 117 1,39 2 1,416 19 16 13 49 3 86 1 91 1 Wholesale, retail trade 15 12 459 3 121 2 163 2 & repair service 1,21 1 14,137 1 66,252 1 72,747 1 Gr Source: Ethiopian Investment Agency 3
As for regional distribution of the total approved investment projects, about 61 percent with 533 percent share in estimated total investment capital will be in Addis Ababa Similarly, about 192 percent of the projects with an investment capital of 174 percent will go to Amhara region followed by Oromia region with 88 percent of the project with 144 percent of investment capital (Table 73) Of the total permanent jobs, 59 percent is expected to be in Addis Ababa, Tigray region (169 percent), Amhara region (19) percent Oromia region (85 percent) Of the total temporary employment, 426 percent will be in Amhara, 41 percent in Addis Ababa 64 percent in Oromia regional states Similarly, about 848 percent of the approved investment projects in real estate, renting business activities with an 84 percent investment capital will go to Addis Ababa Addis Ababa will take the lion share in terms of number of projects (68 percent) investment capital (457 percent) in manufacturing sector followed by Amhara (168 percent project 16 percent capital) Oromia region (11 percent project 198 capitals) Regarding investment projects in agriculture, Amhara took 626 percent with capital share of 567 percent followed by Oromia 179 percent 268 percent project capital share, respectively (Table73) Second Quarter, 214/15 4
Table 73: RegionalSector Nexus in the Number, (in thouss of Birr) Employment Creation Capacity of Licensed Projects for the Fourth Quarter of 213/14 Sector/Re gions Agricultu re, hunting forestry Construct ion Educatio n Electricit y, gas, steam water supply Fishing Health social work Hotels Indica tors Addis Ababa Afar Amha ra BGu muz Dire Dawa Oromi a SNN PR Gamb ella Soma li Har ari Tigra y Multi regio nal* Gr Proj 5 5 112 2 32 8 11 4 179 36,22 9 42, 851,75 96 9,4 42,1 81 32,5 111, 564 16,15 1,51,1 769 mp 87 56 2,488 39 1,791 138 661 41 5,31 emp 14 268 27,1 1 919 95 2,588 43 31,748 Proj 121 9 11 2 14 1 2 2 171 2,125,6 469 mp 21,298 37,1 28,57 8,91 1 45,5 15,9 5, 6, 2,272,6 269 63 67 39 127 99 16 35 21,744 emp 2,672 16 356 1 575 76 15 157 4,21 Proj 6 1 1 8 84,56 6 2, 2,134 9 88,641 4 mp 299 2 24 343 emp 29 4 69 Proj mp emp Proj mp emp Proj 8 2 1 63,834 54,92 117,926 mp 4,321 132 4,453 emp 1,67 5 1,117 Proj 2 5 18 1 12 4 4 6 7 Second Quarter, 214/15 5
Sector/Re gions Restaura nts Manufact uring Mining quarry Real esate,,ren ting business activities Tour operation, ecotourism, cold storage service, etc Wholesal e, retail trade & repair service Others Indica tors Addis Ababa Afar 677,98 5 16, Amha ra 36,71 2 BGu muz 5, Dire Dawa Oromi a 174,62 62 SNN PR 77,14 98 Gamb ella Soma li 48,36 65 Har ari Tigra y 116,4 182 Multi regio nal* Gr 1,566,2 576 mp 967 77 494 546 162 14 158 2,544 emp 367 27 498 3 341 42 255 179 1,982 Proj 188 2 52 15 34 12 2 4 39 mp 3,65,4 491 11,118 emp 24,254 4, 1,72, 329 368,6 883 1,329,6 828 57,8 74 1,3 26 3,841 821 3,11 312 3 82,5 4 1,95 7 13 2,72 158 2,677 375 7 1,537 6,71,4 644 3,116 31,894 Proj 1 1 1 1 4 12, 1,7 1,5 4, 19,2 mp 15 2 3 5 52 emp 3 3 2 5 85 Proj 312 2 21 9 12 2 3 2 5 368 1,334,5 316 3, 93,831 59,48 71 31,1 7,5 1,5 156 18,4 21 1,63 1,659, 164 mp 76 6 29 95 37 31 115 4 16 1,39 emp 555 2 271 132 94 32 13 29 1,416 Proj 14 1 1 16 37,61 1,3 2, 4,91 mp 73 3 1 86 emp 74 2 15 91 Proj 1 11 1 2 15 1,6 34,25 2, 8, 45,85 mp 1 33 5 37 121 emp 1 4 1 22 163 Proj 46 2 3 51 12,23 39 3, 18,65 123,883 9 mp 142 9 32 183 Second Quarter, 214/15 6
Sector/Re gions Indica tors Addis Ababa Afar Amha ra BGu muz Dire Dawa Oromi a SNN PR Gamb ella Soma li Har ari Tigra y Multi regio nal* Gr emp 97 3 34 161 No of Proj 722 25 231 1 3 16 27 33 4 22 1,21 7,541,6 195,1 2,464,8 5 5, 45,1 2 2,37,1 9 176,9 57 287,1 38 23,4 21 955,7 2 11,21 m 39,81 237 7,189 1,48 5,644 693 1,92 56 2 em 29,16 851 3,992 3 33 4,656 1,422 3,328 28 1,95 p Percentage shares 14,136, 9536 66,252 72,747 Proj 61 21 192 1 25 88 22 27 3 18 1 533 14 174 32 144 13 2 2 68 1 m p 59 4 19 16 85 1 16 1 169 1 em p 41 12 426 5 64 2 46 27 1 Source: Ethiopian Investment Agency *are projects having one license but invested in more than one region Second Quarter, 214/15 7