Ethiopia is still not ready to open up its market for foreign banks, Prime
Minister Ato Hailemariam Desalegn has said throwing into disarray plans by
Kenyan lenders to venture into the country.
The Ethiopian leader was ironically speaking at a breakfast hosted by Equity
Bank at the Intercontinental hotel in Nairobi just after the bank chief
executive James Mwangi sought the Ethiopian leader's support to venture into
the country.
Desalegn was responding to local business community's inquiries on available
opportunities in Ethiopia following the signing of an inter-governmental
pact for Special Treatment Agreement for Kenyan traders going to Ethiopia.
But according to the Ethiopian PM, banking is not part of the agreement
signed between him and President Kibaki on Tuesday. "Liberalising the
banking sector would make credit expensive for business and slow down growth
momentum, and that is why we have state our own Development Bank of Ethiopia
to create a balance," the PM said.
Ethiopia has sustained 11 per cent growth rates for a number of years now
and hopes to keep it going through regional co-operation with regional
countries.
The PM landed in Kenya on his first foreign visit since he ascended to top
leadership of Ethiopia to succeeded Meles Zenawi who died a few months ago.
While urging Kenyan business community to venture into Ethiopia, the PM said
opportunities are mainly in agricultural production, agro-processing and
manufacturing.
Ethiopia offers a variety of incentives for investors including
serviced-leased land, collateral-free loans, duty-free importation of
capital goods alongside tax holidays of up to seven years. Kenya and
Ethiopia have already agreed on axle-load requirement for trucks transiting
to and from either side of the border.
Tourism sector operators will however have to wait for an agreement before
Ethiopia allows issuance of visas in Nairobi for foreign tourists in Kenya
wishing to visit the northern neighbor.
Desalegn said a committee will be formed to link with Kenyan tour operators
to formulate a co-operation deal as Ethiopia learns the tricks from the more
advanced Kenyan tourism players.
The two countries have resolved to accelerate activation of trade agreements
and find new areas of commercial co-operation as individual countries,
regional bloc and corporate investments.
In the services sector, the Ethiopian leader said cities are in dire need of
five-star hotels because currently one has to book a month in advance to get
accommodation in Addis Ababa.
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Received on Sat Nov 24 2012 - 18:09:05 EST
