- Kenyan companies will be free to start operations in Ethiopia once the government signs an agreement that will exempt them from the tough regulations restricting foreign investments
- Ethiopia needs Kenya to support its bid to join the East African Community. And Kenyan companies need the huge market in Ethiopia
- Ethiopia restricts foreign investors from the telecommunication, banking, media, retailing and insurance and electricity sectors
That Ethiopia plans to accord Kenya a most favoured status to allow Kenyan companies to operate in the currently restricted market is good news.
Kenyan companies will be free to start operations in Ethiopia once the government signs an agreement that will exempt them from the tough regulations restricting foreign investments.
Kenyan investors should take advantage of this offer. Ethiopia needs Kenya to support its bid to join the East African Community. And Kenyan companies need the huge market in Ethiopia.
Ethiopia restricts foreign investors from the telecommunication, banking, media, retailing and insurance and electricity sectors.
Currently, Kenya’s exports to Ethiopia stands at about Sh5 billion compared to Uganda’s Sh76 billion. This lopsided arrangement must improve. After all, Kenya has been Ethiopia’s ally since independence.
Most Kenyan companies have restricted their operations to the EAC member countries and South Sudan. This is hardly a conducive atmosphere for business.
The government should prioritise the proposed Nairobi-Moyale road, and build a new one linking the port of Mombasa with Ethiopia.
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