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Investment Opportunities of the Salt-Rich Afdera

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An essential element in the diet of not only humans but also animals and one of the most effective and most widely used of all food preservatives, industrial, medical and other purposes, salt.

In the past salt has served as money at various times and places. The Ethiopian rock salt, commonly known as Amolee apart from being used as food substance, was a medium of exchange, and paid in the form of tax and salary among others. In the old days, it played deceive role in Ethiopian domestic transactions. Salt still plays matchless role in making foods delicious and in factory inputs.

The Afar State is the major supplier of the salt in demand in Ethiopia. Osman Mekbul, Afar State Finance and Economy Development Bureau Head, said that implementation of programs aimed at bringing development and ensure good governance in the state was started 23 years ago. Since then, the government has facilitated conducive conditions for investment. In this budget year alone the state has prepared about 500 hectares of land for investment in zone three, he added.

At present, some 423 investors are engaged in extraction of salt from Afdera Lake and are supplying it to domestic market. About 300 thousand quintals of iodized salt is produced monthly from Afdera alone. In other sectors, along the Awash River Basin, especially in zone one and zone three Ethiopian and Ethiopian origin investors are producing cotton, sesame and other cash crops.

Afar has registered commendable achievements in the area of education, health, pastoralist development and agriculture sectors as well according to the Bureau Head. The people in the state in cooperation with the state government have recorded multifaceted economic development, Osman said.

Osman further said as Afar is the only salt producer in Ethiopia, salt extraction has been given due emphasis to keeping the public from health and related negative impacts. Hence, iodized salt is prepared by making it suitable for public health.

Apart from meeting domestic salt demand, investors who are engaged in salt extraction are planning to export salt. Salt will significantly contribute to the development of the Afar State, according to Osman. It is also an important mineral product useful for tannery and chemical industry and cotton factories, he added.

The Bureau plans to earn about 60 million birr from salt related tax by the end of this budget year. However, the income will be exceeded if salt is exported.

What is more, in order to enable the pastoral community to get access to potable water supply, health and education facilities among others, the government has carried out settlement programs and introduced modern animal husbandry systems.

In 32 woredas of the state, the government has constructed various schools, colleges, and alternative schools for the pastoral community. One university, four colleges, over six hospitals exist in the state, he said.

Currently, the State has been engaged in implementing various socio-economic development projects, like road construction and health institutions.

Afar has untapped natural resources and conducive conditions for investment. Infrastructures like air and road transport facilities are available in the state. “I urge investors to come and invest in Afar,” he said.

The government has endorsed various proclamations and directives that help improving its tax collecting systems. These directives and tax collection procures in turn help to enhance the state’s Growth and Transformation Plan, according to Osman. The agricultural income tax and animal husbandry income tax are among the directives that have already been implemented. The Bureau has also organized various awareness raising programs for eight thousand tax payers. By implementing various tax procedures and systems like preparing manuals, the Bureau has increased the state’s revenue to 450 million birr, he said.

[FBC]

[Image Source: www.volcanodiscovery.com]


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