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Striking Element of Development and Investment

Development initiatives coupled with investment promotion ideas are the focus for every country development plans particularly to those developing countries such as Ethiopia. In most developing countries new investment policy ideas are emerging pursuing a broader and more organized pro investment policies and environment.  

Most developing countries including Ethiopia integrated their investment policy into development strategy incorporating sustainable development objectives in investment policy and ensuring investment policy relevance and effectiveness.

  Countries also incorporated innovative investment promotion ideas and facilitation process to attract investment from domestic and international investors Jumia Travel survey revealed. The new continental development initiatives are made to address major constraints of sustainable development focusing on projects that brings development and employment.

 Although remarkable development initiatives are taking place progressively; developing countries information gap and effective promotion of investment potential remained to be the problem for many African countries. Promoting investment opportunities specifying locations are giving countries the upper hand as potential investors will get location specific information that will match their investment designs. It also helps investors to know the process, rules and regulations framed in the investment of inviting country helping investors be familiar with the process, risks and potential financial returns on the intended investment. Still developing countries needs to invest more to close the gap of infrastructure deficit to make investments sustainable.

For development to finally happen and to take the African people out of poverty the wasteful past strategic patters much change gears.  To date African economies face subdued and uncertain prospects being in hunger of more investment. Fruitful policies and regulations to enhance capacity to invest in better productive sectors can provide a boost to the overall economy contributing to eliminate poverty. 

Establishment of industrial zones in different parts of the country has been considered as one strategic direction in the promotion of industrial development in the country. With this objective African head of states has taken a number of measures including furnishing the industrial estates with necessary infrastructures. In this regard the export sectors receive special attention. Industrial zones are also perceived as one mechanism to attract foreign direct investment and developing countries aggressively pursued this scheme. Such developing countries allocated industrial zones to foreign investors on country cluster basis to those who promise to mobilize a large number of investment engaging in diversified but mainly export sectors.

For instance Ethiopia implemented a wide range of institutional reforms aiming to address the bottlenecks to the private sector investment growth. One of the prominent initiatives was the Civil Service Reform Program launched under the broader National Capacity Building Program. Service delivery was one of the five key areas and a special programme while Performance and Service Delivery Improvement Policy was introduced in priority ministries and agencies to work directly with the private sector.

 These along with other reform programme areas, have promoted Business Process Engineering as a key management initiative. Towards this, the country simultaneously implemented other reforms that include business registration, substantial revision to the investment code, modernized the tax regime, established competition policy, and partially reformed the customs administration. Such reforms have led to substantial restructuring in the government offices that deliver service to investors. Service delivery had improved as a result. The required procedures and time for business registration/license in Ethiopia were also significantly reduced leading the country into the aspired economic development.

By Eden Sahle. She can be reached at eden.sahle@jumia.com

Striking Element of Development and Investment Striking Element of Development and Investment Reviewed by IFEDAYO AKINWALERE on 4:08:00 pm Rating: 5