EUBFE Addressed Participants during Investment Engagement Summit Organized by EIC

The new commissioner of the Ethiopian Investment Commission (EIC) held consultative meeting with the board of the EUBFE and the EU Delegation
Hosted by HE Ambassador Johan Borgstam, head of the EU delegation to Ethiopia, the meeting was the first since HE Ms. Lelise Neme took helms at the commission
Following round of introductions and congratulatory messages on the appointment of HE Lelise from HE Ambassador Borgstam and Mr. Depraetere-Chair of EUBFE, representatives of the EU delegation and the EUBFE made power point presentations on the previous and current engagements of their respective institutions with the EIC.
On the discussion that ensued, EUBFE members indicated that despite the robust relationship established with the EIC and the tangible results registered, in particular via the public-private-dialogue (PPD) platform, a number of concerns of European FDI community remain unresolved. In addition to a more recent concern that is investment security, work permit renewal, logistical bottlenecks, foreign exchange shortage and uneven application of regulations and laws were pointed out. In response, HE Lelise pointed out that multi-regional forum, led by regional presidents and investment commissioners, has been established to oversee any concerns that might arise by investors and EIC will be happy to invite EUBFE to attend an upcoming meeting. Moreover, Commissioner Lelise promised to dedicate personnel and time to look into the challenges raised by EUBFE. In conclusion, EUBFE invited HE to an introductory meeting with members of EUBFE.
EUBFE’s general assembly held on February 27, 2020 saw approval of external audit report of FY 2019 as well as review and approval of annual plan for 2020. Major strategic focus for the year 2020 include expansion of membership base, enhance engagement and advocacy work as well as add new services and ventures. The EU Delegation in Ethiopia has pledged some 300 thousand euros worth of technical assistance towards improving EUBFE and this was officially announced at the general assembly. This is believed to be an important contribution towards realizing the key strategic goals set by the board of management of EUBFE.
Following the general assembly, a thematic networking event that focused on the implementation of the new customs legislation took place. It was hosted in partnership with EUBFE’s member association, the Ethiopian Netherlands Business Association (ENLBA). A panel composed of distinguished guests that include Mr. Gaim Yibrah (Director of the Strategic Partnership Directorate- Customs Commission), Mrs. Elisabeth Getahun (President of freight Forwarders and Shipping Association) Mr. Getachew Zewdu (Representative of Clearing Agents), Mr. Hayo Hamster (President of ENLBA) as well as Mr. Ben Depraetere (Chair of EUBFE) led the discussion on the application of the new customs legislation 1160/19 and the challenges associated with it. Particular concern was the reduction of maximum allowable deadline of goods in customs warehouses to 15 days in dry ports and 10 at airport and the fine of 20% of customs value sanction who fail to remove their imports within these day limits. Mr. Gaim responded to questions and concerns on behalf of Customs Commission and took away some suggestions for further scrutiny.
A memorandum of understanding was signed between EUBFE, AmCham Ethiopia and the Ministry of Trade and Industry (MoTI) on the occasion of thematic networking event held on October 24th 2019. The MoU was signed by Ato Tekay Gebre Yesus, State Minister of MoTI, Mr. Ben Depraetere-Chairman of EUBFE and Mrs. Serena Capelleti-President of AmCham Ethiopia.
The signing of the MoU marks the onset of a constructive and sustained dialogue between MoTI and member companies of the respective associations. In the opening remarks of both Ato Teka and Ben, it was highlighted that it is indeed high time the private sector and the public one to work closely together and feed off each other experiences and expertise. Following the signing ceremony, a presentation on the major mandates, various services and directorates of the MoTI was made by guests from the ministry. Question and answer session followed the presentation, where participants raised queries and concerns.
EU Business Forum in Ethiopia (EUBFE) in collaboration with the Ministry of Revenue (MoR) organized a training workshop for finance staff of member companies on October 17-2019 at the premises of MoR. The goal of the workshop was to equip participants with knowledge and skills in identifying fraudulent receipts. It is common knowledge that fraudulent receipts are causing considerable damage in the economy with some EU companies falling victim to such fraud. The training workshop was led by Ato Sisay Gezu, the director of the Intelligence and Investigation Directorate at MoR. During the lively discussion that followed the presentation, participants shared their experiences in combating illegal practices of such kind in addition to providing recommendations that would assist MoR.
This workshop is the one of the outcomes of the regular steering committee meeting held quarterly between the EUBFE and the MoR, as stipulated in the MoU signed between the two organizations.
Introduction to the electronic customs management system (E-CMS) was the theme of the event. The E-CMS is a new system that has been implemented for the Ethiopian Customs Commission for over a year, with funding from the European Union. Its goal is to improve and digitize the entire customs shipment mechanism and meet the dire need of fast and efficient movement of goods in Ethiopia.
HE Ambassador Johan Borgstam, in his opening remark, appreciated EUBFE for organizing such an event that would enable EU businesses to understand new developments that could improve their operations. Chairman of EUBFE also highlighted major achievements and challenges EUBFE face on the back of existing economic reforms. Subsequently, the country manager of the host of the evening Total-Ethiopia, Mr. Thibault Lesueur, extended his warm welcome to guests.
A presentation on the new customs management system was made by the representative of Webb Fontaine, the company that deployed the system. Details of the power point presentation are found on our downloads page.
The EU-Ethiopia business forum took place in Brussels, attracting some 200 high-level investors from EU, top officials from Ethiopian government as well as the EU Commission. Opening remark as well as presentations were made by Mr. Stefano Manservisi, Director-General for International Cooperation and Development (DEVCO) of the European Commission , HE Dr. Markos Tekle, State Minister of Foreign Affairs, Mr. Abebe Abebayehu, Commissioner of Ethiopian Investment Commission as well as Ms. Eleni Kyrou, Head of the European Investment Bank representative to Ethiopia and the African Union. The goal of the forum was to provide important and practical information to potential investors who are interested in doing business in Ethiopia.As part of the forum, the EU Business Forum (EUBFE) through its board chairman Mr. Ben Depraetere, moderated a panel discussion entitled “Doing Business in Ethiopia”. The panel was composed of three notable guests; Mr. Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa, Mr. Dougie Brew, Corporate Affairs and Sustainable Business Director Africa of Unilever and Mr. Melaku Ezezew, President of the Ethiopian Chamber of Commerce and Sector Associations.
Breakout sessions on agro-processing, textile and apparel, ICT as well as Pharma sector took place in the afternoon following the opening remarks and panel discussion, where a number of EU companies shared their experiences of investing in these sectors in Ethiopia.
The frorum also featured a company visit. A delegation that included the EIC commissioner, EUBFE executive director, guests of the forum, representative from the EU commission as well as diplomats from the Ethiopian embassy in Brussels attended a half day visit to Desmet Engineers & Contractors (DSEC) based in Louvain-la-Neuve, Belgium.
At the end of the forum, closing remark was delivered by Mr. Jyrki Katainen, Vice-President of the European Commission and responsible for Jobs, Growth, Investment and Competitiveness, in which he pointed out to policy conviction of the commission in promoting investmentin third countries via various instruments including the external investment plan.
The last day of the EU-Ethiopia Business Forum was dedicated to a morning-long networking and B2B session, where EUBFE was able to confer with a number of EU companies who showed interest to invest in Ethiopia.
The Ministry of Revenue, represented by State Minister Mr. Mohammed Abdi, signed a Memorandum of Understanding (MoU) with EU Business Forum and its member national business associations on May 2, 2019. The MoU is aimed at forging constructive dialogue between the Ministry of Revenue (MoR), as well as the Customs Commission (which is under the MoR), and members of EUBFE. In his key note address, H.E. Mr. Mohammed welcomed the initiative to construct meaningful dialogue with EU businesses and encouraged those involved to work towards its fruition.
In this connection, a joint steering committee has been established that would compile, review and address challenges of members of EUBFE in connection with tax and customs. The committee will be led by the Head of the Office of the Minister of Revenue and will be composed of directors of various directorates of MoR and board members of EUBFE. The steering committee will commence its task within two weeks’ time of the signing of MoU.
The General Assembly meeting that preceded the signing of MoU approved annual report for 2018, audit report of external auditor, plan for 2019 and extended the appointment of the existing board members by a further two years. The event was attended by various guests from government as well as EU diplomatic community.
The EU-Ethiopia Business Forum 2019 will take place in Brussels on Tuesday, May 14th and Wednesday, May 15th2019. The objective of this Forum is to promote and stimulate European private sector trade and investment in Ethiopia through the organization of a Business Forum aimed at advertising the potential opportunities in the country and at offering a networking platform for European and Ethiopian companies as well as Ethiopian government representatives.
During this high-level business Forum participants will gain practical information about doing business in Ethiopia and be able to interact with top-officials from the Ethiopian Investment Commission and with other high-ranking officials from Ethiopia. Mr. Jyrki Katainen, vice-president of the European Commission and Commissioner for Jobs, Growth, Investment and Competitiveness, will also take part in the event.
Please follow the link below to participate.
https://en.xing-events.com/eu_ethiopia_businessforum.html?page=1699742
Panel Discussion on middle-to-short-term economic was held on December 6, 2018. The panel discussion was co-organized in collaboration with the EU Delegation in Ethiopia. H.E. Johan Borgstam, head of EU Delegation in Ethiopia made an opening remark at the opening of the event. It featured three prominent speakers; Mr. Tamrat G. Giorgis (managing editor of Fortune Business Newspaper, one of the largest in circulation), Mr. Helaway Tadesse (formerly with IMF and currently manager of Cepheus Capital managing a capital close to 100 mln USD) and Mr. Henock Assefa (Manager of Precise Consult-one of the largest consulting firms in Ethiopia).
The panel deliberated on a theme entitled “charting uncertain economic future of Ethiopia; challenges and prospects”. The reflection of the panelists was rooted in the government’s new plan of action called “new horizon of hope”. Panelists shared their reflections on the latest economic reforms of the government on the private sector, renewed dialogue and collaboration with international financial institutions such as the World Bank and IMF, as well as other relevant concerns as raised by participants during Q&A. The major takeaway from the discussion was that political instability, poor/inefficient bureaucratic system as well as persistent economic structural failure remain a challenge despite the move for more privatization and allowing for partial opening of some sector for FDI (eg. logistics) resulting in temporary relief of chronic forex shortage, owing to financial injections from global financial institutions, particularly the World Bank.