Okay, let's get the obvious objections out of the way before we even start. Everyone knows that Ethiopia is subject to intermittent drought, famine and ongoing security concerns (sharing borders with Sudan, Eritrea and Somalia), so why would any Canadian company be interested in setting up business there? The fact is that most of Ethiopia is green, relatively prosperous and secure, and in fact construction is booming, both in infrastructure and buildings.
There are many buildings under construction, but on many of them work has ceased as power, concrete shortages and land speculation are slowing down the pace at which construction can proceed. However, by next year, greatly increased hydro electricity supply will alleviate many of these issues, creating more of the conditions sustained, rapid growth.
Buildings are often constructed of a rough concrete, iron window and door frames with poor quality glass – perhaps like inexpensive building construction from the early in the last century in Canada. When better quality materials are used for more elaborate designs, finishing is often poor because the workers don't have the required skills or tools to work with them.
There is a crying need (and thus a great opportunity) for more concrete production, more sophisticated steel and aluminum production, plumbing pipes manufacturing of all kinds, PVC extrusion, doors and windows technologies, etc.
The problem is that purchasing western materials is prohibitively expensive as the Birr is worth approximately .10 of a Canadian $, but, materials manufactured in Ethiopia could do very well not only in Ethiopia but in the rest of Africa. Africa needs to increase its own manufacturing capability, and mature its construction industries; and in this lies a huge opportunity for Canadian businesses.
My emphasis on Canadian businesses is in part because of a CIDA (Canadian Government) program which pays for the feasibility study for a Canadian company looking into whether it could work to set up business in a country such as Ethiopia; and, there also is money to support the training of the new work force. Total support can be as high as $500 - $600,000CDN.
CIDA itself describes Ethiopia as:
Heir to an ancient civilization going back over 2,500 years . . . a prominent and strategically located country in the Horn of Africa. With a population of 77 million, the country has a rich and diverse cultural heritage. Agriculture is the economy's mainstay. Ethiopia plays a major role in African affairs as home to the African Union and the United Nations Economic Commission for Africa, and in its pivotal role in other regional development organizations.
I also have formed good working relationships with construction developers, businessmen who can partner with a Canadian company, assisting with land acquisition, building development, and of course with a detailed understanding of the construction industry and opportunities for growth.
Finally, there are as well clothing manufacturing opportunities as Ethiopia produces very good quality cloth and a lot of leather. So far however, they have not made much of a foray into manufacturing clothing or shoes, and in fact a good tannery is needed, as is training in animal husbandry so that the raw hides are in better shape for leather goods.
So why, outside of sensible business reasons, am I inviting Canadian companies to consider setting up a branch in Ethiopia? Well, for one thing, I believe that good business involves also making a positive contribution to one's society and the world. I'm also in love with Ethiopia and intend to spend more and more of my time there. As an entrepreneur committed to doing good, helping such businesses get established is good for them, good for the people who will work in them and buy their products, and good for Africa in general.
So join in with me and spread the word!! :o))
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