As Ethiopia is working to lure more foreign direct investment, Japanese companies that came to Addis Ababa to take part in the Africa-Japan Business Forum are hoping to start businesses here.
Two Japanese companies, namely Rohto Pharmaceuticals Co., and Africa Matters Ltd, a consultancy firm, are eying Ethiopia as a potential market for pharmaceutical products.
Rohto Pharmaceuticals, a multinational engaged in the health and beauty care area, is eying Ethiopian market, Executive Vice President Lekhe Juneja told ENA.
Products of the company will be in the Ethiopian market in the near future, said Juneja.
Ethiopia has been encouraging companies to engage in the manufacturing of pharmaceutical products, hoping to substitute import of basic medicines and earn foreign currency by exporting some products.
The east African nation has targeted to meet 80 percent of the demand for basic medicines locally during the past five years, but it manages to supply only 20 percent.
To lure more investment, Ethiopia is engaged in establishing industrial parks across the country.
The nation aims to attract investors who are moving some manufacturing from Japan and other Asian markets, where costs are rising.
The industrial park, which is under construction for exclusive use by Japanese companies, is among the activities being underway to lure Japanese manufacturing companies.
By establishing the parks, the Horn of Africa nation makes sure that industries have infrastructure features, such as stable electricity and water supplies.
Rohto, with investments Tanzania and Kenya, is looking the Ethiopia’s close to 90 million population for its eye and skin care, diagnostic kits and other products.
“We will aggressively explore opportunities in next emerging countries with growth prospects. We will also develop our operational group synergy in Ethiopia.”
Although, Rohto’s plan is to supply its products to Ethiopia, the desire of the East African government is to attract companies that manufacture products here.
The role of international consultancy firms is critical in luring more FDI to destination countries. Africa Matters Ltd is among these firms.
Africa Matters will start activities in Ethiopia to promote the basis for good health care businesses, said Company Client Manager, Chiara van Oekel.
“Our objective is to make an even greater contribution to healthy lifestyles by extending our operations into more business domains.”
The company is aspiring to provide assistance and consultancy services to a range of health businesses investing and operating in Ethiopia, she said.
“We will work closely with our clients providing risk mitigation, insight, introductions, government engagement, opportunity identification, fundraising and strategic advice in the Ethiopian health sector”
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