THE IMPACT OF FOREIGN INVESTMENT IN IMPROVING EMPLOYEES INCOME IN ETHIOPIA


      Foreign investors are welcome in most parts of Africa particularly in Ethiopia their government welcomes foreign investors as longs as they will comply with their basic regulation provided by the Ethiopian Investment Agency they must present basic information and data on how they are going to invest. There are various reasons why foreign investors invest in Ethiopia simply because they have a stable economic environment that is why investors are assured they can get manpower because there are available graduates from various field and their salary is considerable, the Natural resources is abundant that is why many foreign companies have stayed in this country for a long period of time.


      Ethio Telecom from Addis, Ababa recently announce last September 10, 2011 that their gross revenue amounted to 8.82 Billion Birr that surpassed its budget from 7.5 Billion Birr gross revenues. This has been the result of increase in their subscribers that has reach up to 10.5 million that is more than 50% increase from previous years and this is continuously increasing as they continue to work on improving their system. The Ethio Telecom is a partner of foreign investors France Telecom one of the best in the world in telecommunication industry.


      The Ethio telecom has provided faster technology in communication and information system, faster delivery and repair, they have also developed a world class Human Resource Management for the benefits of their employees are mostly receiving a higher than industry standard salaries and wages plus additional benefits that is why most of their employees are highly satisfied about their job. They have also experience fiber optic service cuts in the last few months of operation that is intentional and non intentional occurrences on their service but they have already done a major fixes in the affected areas.


      Also in Addis, Ababa one of the biggest conglomerate is Midroc Technology Group is another foreign and local base company that consist of 30 different companies has been established last June of 2000 companies includes Queens Supermarket, Unity University, Midroc goldmine, Trans Nation Airways, Addis Home Depot, Addis Glass and Plastic Factory among others. This companies has employed thousands of workers in Addis, Ababa they are all equal opportunity employees with a basic Human Resource procedure that benefits largely their employees to receive standard salary with opportunity for improvement and promotion.


      The company has grown and their employees have become their most important assets, employees are mostly assured that they have up to date system appraisal for their advancement. Basic training is also provided in most companies of midroc for employee empowerment, teamwork has been largely promoted in all phases of the company, they have followed a balance working attitude so as to promote productive atmosphere. Their employees have an opportunity to be regular in their job if they have stayed in the company if they have served a good working attitude.


      Their customers would also benefit in their companies since they are able to give them the quality of services they deserved that is why they have developed prestige and good reputation in the eyes of their clients, they have also exercised Social Responsibility in the environment and mostly their shareholders are satisfied with the division of profits in their investments, they are also included in the stock holders meeting. This means that all in all the benefits to their government and in their people in revenue generation has been largely improved and dedicated to their workers and employees. They have received tremendous benefits and livelihood that have largely reduced unemployment in their countries during the 90’s.


      There also controversy in foreign investments in Ethiopia that has been creating a great threat in their country especially in their farming and mining industry that foreign investors are land grabbing their communities. The Indian investors have been cultivating their land and it is because they may have the technology and money but mostly they have only hired a few workers from Ethiopia and most of the crops have gone through other countries, that usually  the case while Ethiopian farmers do not own their land.


      Their local farmers do not earn much because they will need to lease a land in order to have a place to plant their crops and mostly they are served by foreign investors. For example when a 300,000 hectares of land in Gambella is leased by Indian Karuturi Global Company a little is left for their people and farmers that is why most of their town including some parts of Afar, Tigray, and other little population areas but mostly it has been leased by foreign investors such as Saudi Star and others. Although there are areas in Ethiopia that has been successfully becomes a global economic zone like Addis Ababa most towns are experiencing lowly income, famine and unemployment because of foreign investors. (www.de-world.de)            



Credit:ivythesis.typepad.com


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