WATER RESOURCES OF ETHIOPIA AND WHAT IS BEING DONE TO OPEN THE DOOR FOR INVESTMENT By: Desta Yoseph Wodebo
The Water Show Africa 2018 March 27, 2018 Johannesburg
ETHIOPIA
Total area 1.13 million sq.km
>100 million inhabitants (2.3% annual growth rate)
Hot arid( avg 32°c, 45,000 MW
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WATER SECTORS FOR INVESTMENT
Hydropower & Electricity
Irrigation (agriculture)
Manufacturing(water related...)
Consultancy 5
WATER SECTORS FOR INVESTMENT (Hydropower)
Average annual electricity demand growth rate > 20% The available potential (ready for investment)
Type
Capacity
Selected sites
small scale
60 MW
100
Geographic access to electricity grid
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT (HP- INCENTIVES)
Private sector investment in power generation is highly encouraged.
Income tax exemption incentive: 4 to 5 years exemption for investment in electricity generation.
sale to the national grid(guaranteed!)
Study and design documents can be prepared by local institution (e.g ECDSWC, Water and Energy Design Sector)
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT (Irrigation)
Potential
Priority areas for investment
plantation of cotton, palm tree, rubber tree, coffee, tea, sugarcane, oilseeds Horticulture (flowers, fruits, vegetables and herbs), apiculture, and high-value crops such as barley for malting. Source: MoWIE, EIC
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT (Irrigation-incentives)
Duty free import of machineries
Up to 9 years income tax exemption.
Additional 2 years exemption if 60% of product is directly exported or supplied to an exporter.
Additional 30% deduction for 3 consecutive years if investment in underdeveloped regions.
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT (MANUFACTURING)
9 Industrial park, anchored on the principles of:
Specialized parks Export promotion Vertical integration Skills Development & competitiveness
Equipment and appliance manufacturing
Small machineries, turbine, transmission & distribution system components (transformers, cables, accessories, poles & towers, meters)
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT MANUFACTURING (INCENTIVES)
10-15 years income tax exemption for development of industrial parks depending on park location 10 years if in Addis Ababa and surrounding 15 years in other areas.
60-80 years land lease right at promotional rate; with sub-lease right.
Reliable electricity at globally competitive rate – government avails dedicated power substation for industrial parks.
Hydropower
Irrigation
Manufacturing
consultancy
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WATER SECTORS FOR INVESTMENT
(CONSULTANCY)
Carbon-neutral growth pathway opens opportunities for international consultancy demands resonable capital amount:
USD
100,000 if the investment is on engineering works or related technical consultancy services USD 50,000 if joint investment with a domestic investor No capital requirement for reinvestment of profit or dividend
Hydropower
Irrigation
Manufacturing
consultancy
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OPPORTUNITIES ( EASY BUREAUCRACY= DELIVERY TIME+FEE)
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OPPORTUNITIES ( TRAINED CHEEP LABOUR FORCE)
54 million active labour force A growing educated labour force: 50
Universities with around half million student over 1,300 Technical and Vocational Education and Training (TVET) Institutes with an annual intake more than 800,000 14
OPPORTUNITIES ( POLITICAL STABILITY + ECONOMIC FACTORS)
Political stability and committed government Stable
socio-economic governance with sustained peace and security. High level political commitment for investment promotion and protection;
Conducive economic factors 11% annual GDP growth for the last 14 years Stable and conducive macroeconomic environment. Growth and transformation plan-I& II: structural transformation of the economy
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OPPORTUNITIES ( MARKET+ INFRASTRUCTURE)
Favorable market factors Africa’s
second most populous nation Duty-free, quota-free access Member of COMESA Signed The African Continental Free Trade Area (AfCFTA)
Well developed infrastructure Addis-Djibouti
electric-powered railway Expansive road networks connecting national and regional markets Expanding telecommunication and road network 16
OPPORTUNITIES (RELIABLE LOCAL PARTNERS) Example: Ethiopian construction design and supervision cooperation, Water and energy sector 1790 employee(70% technical stuff members) Already operating in African market: Dam design in Tanzania, irrigation project in Nigeria, road in Djibouti Has clear policy to work with partnership 17
About the presenter: Desta Yoseph Wodebo Desta currently working in Ethiopian construction Design and Supervision Works Cooperation, water and Energy Design works sector as Hydrologist. Previously he work in National Meteorological Agency of Ethiopia as meteorologist and Brach office manager and in Ethiopian Agricultural Research Institute as climate geospatial researcher. Academic experience: Desta was part of the European commission Erasmus Mundus scholarship and studied triple Masters programme in Water science & engineering and flood risk management at the Technical University of Dresden, UNESCO-IHE, Technical University of Catalonia and University of Ljubljana in Germany, Netherlands, Spain and Slovenia respectively. He also studied hydrology and water resource management(MSc, Arba Minch University), Economic( Haramaya University) and Meteorology (Arba Minch University). Desta has exceptional desire on improvement of Meteorological + hydrological service and its infrastructure, disaster risk early warning system in Ethiopia and Africa. He also interested in utilizing water for development, particularly for food security and energy production. Contact address:
[email protected]
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Invest in water sector of Ethiopia Invest in water sector of Africa
Thank you!!! 19
