FDI declined by 16.4pc last year to 3.3 billion dollars despite recent directives from the Ethiopian Investment Board opening previously restricted sectors to foreign capital.
Herbeg Roses Ethiopia is one of the companies facing problems importing vehicles, with requests to authorities on hold for months. The Dutch-based company’s requests to import a Minivan and a Toyota Land Cruiser Prado have been delayed for three months, forcing it to resort to high-cost rentals. Its General Manager, Jolis Klijis, said the latter is needed for field visits while the former is for employee transportation.
The company exports an average of 100 million rose stems annually to the United Kingdom (UK) and the Netherlands from a 40hct farm in Batu, near Ziway Lake, in Oromia Regional State. Jolis expressed concern that the absence of power infrastructure makes it impossible to accommodate electric vehicles.
“Infrastructural inefficiencies have made it impossible,” he told Fortune.
Another company with a 100hct farm in Bishoftu (DebreZeit), Joytech Plc, has also faced problems due to the recent ban. The company has struggled to import a cold truck with a capacity of 50,000Kg of herbs and a tractor for its farm. According to Joytech’s Manager, Bisrat Haileselassie, the company has had to resort to renting trucks at a monthly cost of 12,000 Br while waiting for a resolution.
However, Abebe Mosisa, CEO of Public Transport & Vehicles at the Ministry, disclosed measures have been taken to allow the import of vehicles ordered before the ban, including construction machinery, trucks, ambulances, and tractors. According to him, there is no resolution for those imported after the ban, while reversing the decision requires a higher official decision.
“It’s beyond our authority,” he said.
