MekelleMekelle Investment ProfileInvestment Profile

By By MeresaMeresa RedaRedaBy By MeresaMeresa RedaReda

TigrayTigray Investment Office Investment Office

I. TIGRAY IN BRIEFI. TIGRAY IN BRIEF

II. INVESTMENT PERFORMANCE II. INVESTMENT PERFORMANCE

III. III. Investment Potentials In Investment Potentials In TigrayTigrayIV. Investment IncentivesIV. Investment IncentivesIV. Investment IncentivesIV. Investment IncentivesV. V. Why Invest In Why Invest In TigrayTigray ??

VI. List of Industrial ProjectsVI. List of Industrial Projects

PartPart--II

TIGRAY AT TIGRAY AT GLAGLAnnCECE

Tigray at a glance

44

TigrayTigray… … cont’dcont’d

�� Location: Location: Northern tip of Ethiopia Northern tip of Ethiopia between 12between 1200 --151500

north latitude and 36north latitude and 36003030’’--4040003030’ ’ east longitudeeast longitude

� Area: 53,638 km53,638 km22

� Population: 4.45 millions as of census 2007 4.45 millions as of census 2007

7 zones, 47 7 zones, 47 WoredasWoredas & 673 & 673 KebelesKebeles

55

7 zones, 47 7 zones, 47 WoredasWoredas & 673 & 673 KebelesKebeles

�� Altitude:Altitude: 500500--3935 meters above sea level3935 meters above sea level

�� Agro Ecology:Agro Ecology:

��11.5% temperate (11.5% temperate (DegaDega))

��40.5% subtropical (40.5% subtropical (WoinedegaWoinedega))

��48% Tropical (Kola)48% Tropical (Kola)

TigrayTigray… … cont’dcont’d

�Economy: Predominantly AgriculturePredominantly Agriculture

��The contribution of The contribution of Agriculture, Industry and Agriculture, Industry and Service sector to the regional Service sector to the regional

66

Service sector to the regional Service sector to the regional GDP is 46.75%, 18.89%, GDP is 46.75%, 18.89%, 34.36% respectively. (2006/7)34.36% respectively. (2006/7)

��RainfallRainfall:: the annual average rainfall the annual average rainfall is between 650is between 650--980 mm980 mm

PartPart--IIII

INVESTMENT PERFORMANCEINVESTMENT PERFORMANCE�� SO FARSO FAR

�� 2869 existing 2869 existing projects projects

� 29%agriculture

� Job opportunity

Above 100,000 Above 100,000 permanent and permanent and >>88,824 Temporary88,824 Temporary� 29%agriculture

� 20% construction

� 14% Hotel & tourism

�� 30% industry30% industry

�� 0.01 Real estate0.01 Real estate

�� 0.07 social servic0.07 social servicee

>>88,824 Temporary88,824 Temporary

�� CapitalCapital

32.3 billion birr32.3 billion birr

800

1000

1200

1400

1600

No of Projects

0

200

400

600

800

1984 1985-1990 1991-1995 1996-2000 2001-2003

No of Projects

PartPart--IIIIIIInvestment Potentials In Investment Potentials In TigrayTigray

•• Economy of the region is based on Economy of the region is based on agricultureagriculture

•• The region is suitable for crops such as The region is suitable for crops such as sorghum, sesame, cotton, barley, wheatsorghum, sesame, cotton, barley, wheat, , teffteff, and the likes , and the likes

�� AgricultureAgriculture

�� About 20,000 About 20,000 and, 100,000 hectares of and, 100,000 hectares of land is suitable for wild land is suitable for wild

gum and incense gum and incense

The region has wide opportunities for the livestock development.

Cattle 3,040,760,

Sheep 935,349

Goats 1,465,741

Camel 13,661

and so on….

The Livestock resource in the region is base for investment opportunities such as; • Dairy products• Fattening and meat processing• Leather and leather products• Animal feed processing• Animal feed processing• Bee keeping and honey processing• Poultry• Plantation of incense and resin• Rental of agricultural machineriesand so on…

��TigraiTigrai regionregion endowedendowed withwith variousvarious typestypesofof metallic,metallic, industrialindustrial andand dimensiondimensionstonesstones..

MININGMINING

��HoweverHowever thethe metallicmetallic mineralmineral ofof thetheregionregion hashas notnot yetyet beenbeen exploredexploredconsequentlyconsequently thethe possibilitypossibility ofofdiscoveringdiscovering economiceconomic depositdeposit isis definitelydefinitelyhigherhigher togethertogether withwith thethe currentcurrentattractiveattractive priceprice andand conduciveconducive investmentinvestmentenvironmentenvironment..

......

��The region is potentially rich in The region is potentially rich in metallic mineralsmetallic minerals

�� gold gold

platinumplatinum��platinumplatinum

��coppercopper

�� lead lead

�� zinc etczinc etc

............

�� industrial mineralsindustrial minerals

��GypsumGypsum

�� limestone, limestone,

kaolin kaolin ��kaolin kaolin

��silcasilca sandsand-- raw materials for raw materials for cement, ceramic and glass industrycement, ceramic and glass industry

..........

��varieties of dimension stonesvarieties of dimension stones

��granitegranite

�� marblemarble

limestone . limestone . �� limestone . limestone .

Exploration /Mining Status in Exploration /Mining Status in the regionthe region

More than 15 foreign and domestic More than 15 foreign and domestic companies are conducting exploration for companies are conducting exploration for gold and base metals in the region. gold and base metals in the region.

Among them the Chinese companies like Among them the Chinese companies like Among them the Chinese companies like Among them the Chinese companies like Shandong, Shandong, DoniaDonia ,,MakedaMakeda, Harvest are , Harvest are jointly working with domestic exploration jointly working with domestic exploration companies in the region.companies in the region.

..............

More than 90 domestic investors are More than 90 domestic investors are involved in small scale mining for involved in small scale mining for crushed aggregates.crushed aggregates.

Local investors are involved in mining of Local investors are involved in mining of Local investors are involved in mining of Local investors are involved in mining of industrial and dimension stone. In industrial and dimension stone. In general general

��More than 5 billion birr is invested in More than 5 billion birr is invested in mining sector.mining sector.

................

�� TheThe regionalregional governmentgovernment isis committedcommitted totoenhanceenhance andand encourageencourage investmentinvestment inin thethesectorsector..

• Tigrai is the heart of historic sites

• It is one of the cradles of the country’s ancient civilization.

• Aksumite civilization was one of the greatest and earliest civilizations in the world.

• Some of the most important remarkable architectural land marks and fabulous works of art represent the dazzling history are

• The obelisks at Aksum, the rock hewn churches and

TOURISM

• The obelisks at Aksum, the rock hewn churches andmonasteries, murals, parchment paintings, uniquealphabet, mosques (like Ahmed –Al- Negashi), religiousrituals etc.

Part -IV

Investment IncentivesInvestment Incentives

INCEINTIVESINCEINTIVES PERMITEDPERMITED ATAT REGIONALREGIONALLEVELLEVEL ANDAND COMPARATIVECOMPARATIVE

ADVANTAGESADVANTAGES

1. Land Availability for1. Land Availability forManufacturing sectorsManufacturing sectors

��Generally the region has 9 industrial Generally the region has 9 industrial ��Generally the region has 9 industrial Generally the region has 9 industrial zones that its minimal cost in some zones that its minimal cost in some specific areas is almost approaches specific areas is almost approaches to zero as depicted below.to zero as depicted below.

........City/

Town

Area of land ( in hectare)Area of land ( in hectare) Type of Type of

Investment Investment

ProjectProject

Price/m2 /year

in BirrDemarcatedDemarcated CompensatedCompensated

Mekelle 281.6281.6 221.5221.5 Metallurgy & Metallurgy &

ICTICT

1.001.00

OthersOthers 1.251.25

Humera 98 40 Agro processing 0.25Humera 98 40 Agro processing 0.25

OthersOthers 0.35

Shire 52 22 Agro processing 0.50

Others 0.75

Axum 33 20.18 Textile &

Garment

0.50

Others 0.75

Adiwa 40 40 Textile & 0.50

......City/

Town

Area of land ( in hectare)Area of land ( in hectare) Type of Type of

Investment Investment

ProjectProject

Price/m2 /year

in BirrDemarcatedDemarcated CompensatedCompensated

Adigrat 42.5 18.4 Chemical

industry

0.50

Others 0.75

Wukiro 20 10 Metallurgy & Metallurgy & 0.50Wukiro 20 10 Metallurgy & Metallurgy &

ICTICT

0.50

Others 0.75

Michew 50 15.2 Agro

processing

0.40

Others 0.75

Alamata 50 50 Agro

processing

0.75

Others 0.50

Land Utilization in industry Land Utilization in industry

ZoneZone(in (in hactarehactare))

Demarcated utilized unutilized

931.4 131.01 800.39

2. Proximity to Ports2. Proximity to Ports

TheThe regionregion isis nearernearer toto portsports thanthanmostmost ofof thethe otherother regionsregions inin EthiopiaEthiopia..ToTo makemake itit clearclear letlet usus comparecompareAddisAddis AbabaAbaba && MekelleMekelle citiescities fromfromAddisAddis AbabaAbaba && MekelleMekelle citiescities fromfromEastEast AfricanAfrican PortsPorts

portport Distance (in Kilo meter) Distance (in Kilo meter)

MekelleMekelle Addis AbabaAddis Ababa

DjiboutiDjibouti

910 910 via via GelafiGelafi

837 via Mile, 837 via Mile, ChifraChifra, , AlewuhaAlewuha

708 via 708 via SemeraSemera, , Yallo,MekoniYallo,Mekoni

680 680 via via SerdoSerdo, , AfderaAfdera, , ShiketShiket680 680 via via SerdoSerdo, , AfderaAfdera, , ShiketShiket

SudanSudan 1579 via 1579 via Kesala,GedarifKesala,Gedarif, , humerahumera 1881 via 1881 via MetemaMetema, ,

AzezoAzezo, , AnjibaraAnjibara1339 via 1339 via KasalaKasala, , HumeraHumera, Shire , Shire

MassawaMassawa 391 via Asmara, 391 via Asmara, AdigratAdigrat 1163 via 1163 via MekelleMekelle

4. Favorable Agro4. Favorable Agro--ecologyecology

It is highly suitable for residence and for It is highly suitable for residence and for

�� growing all types of fruits and vegetablesgrowing all types of fruits and vegetables

5. 5. Availability of dry port serviceAvailability of dry port service

6. Access of cold room and cargo service6. Access of cold room and cargo service

7. Existence of higher education 7. Existence of higher education

institutions/MU,ADU,AXUinstitutions/MU,ADU,AXU

Part -V

Why Invest In Tigray

� Strategic location with proximity to the markets of Middle East, Europe and Asia� Political and Social stability� Macro-economic stability� Simple investment proceduresAbundant, inexpensive & trainable labor � Abundant, inexpensive & trainable labor

force� daily laborer …… $3/day� Salaries of fresh university graduates…. $110/month -

$200/month

� Competitive investment incentives� Zero tolerance for corruption

Part Part --VIVIList of Industrial ProjectsList of Industrial Projects

�� A.A. TextileTextile

1.1. Children ClothChildren Cloth

2.2. Mosquito net, sports net and fishing netMosquito net, sports net and fishing net

3.3. Gauze and BandageGauze and Bandage3.3. Gauze and BandageGauze and Bandage

4.4. Absorbent Cotton and Sanitary padAbsorbent Cotton and Sanitary pad

5.5. Canvas based productCanvas based product

6.6. Sewing thread Sewing thread

7.7. Carpet Production Carpet Production

B. LeatherB. Leather

8.8. Acrylic yarn productionAcrylic yarn production

9.9. Lint cotton and edible oil productionLint cotton and edible oil production

Laminated leather beltLaminated leather belt10.10. Laminated leather beltLaminated leather belt

11.11. Leather goodsLeather goods

12.12. Leather jacketsLeather jackets

13.13. Leather footwearLeather footwear

C. Food and BeverageC. Food and Beverage

14.14. CannedCanned fruitfruit productionproduction

15.15. MalmaladeMalmalade productionproduction fromfrom CactusCactus

16.16. DressedDressed andand packedpacked chickenchicken

17.17. CarbonatedCarbonated beveragebeverage andand lemonadelemonade17.17. CarbonatedCarbonated beveragebeverage andand lemonadelemonade

18.18. BabyBaby foodfood productionproduction

19.19. CompositeComposite flourflour

20.20. CornCorn flakesflakes

21.21. VinegarVinegar

Cont’dCont’dC. Food and BeverageC. Food and Beverage

22.22. Beef in jellyBeef in jelly

23.23. Pasteurized milk, butter, and Pasteurized milk, butter, and cheesecheese

24.24. Wine productionWine production24.24. Wine productionWine production

25.25. Poultry feedPoultry feed

26.26. Processed HoneyProcessed Honey

27.27. Potato chipsPotato chips

28.28. Mini Brewery productionMini Brewery production

D. Chemical, Plastic & D. Chemical, Plastic & RubberRubber

29.29. OralOral RehydrationRehydration saltsalt (ORS)(ORS)

30.30. BeesBees waxwax productionproduction

31.31. FertilizerFertilizer fromfrom bone,bone, mealmeal…………

GlueGlue productionproduction32.32. GlueGlue productionproduction

33.33. Glycerin,Glycerin, hairhair oil,oil, shampooshampoo andandperfumeperfume

E. Non Metallic MineralE. Non Metallic Mineral

34.34. Mosaic tilesMosaic tiles

35.35. Grinding wheelGrinding wheel

36.36. Lime productionLime production

37.37. Calcinated gypsumCalcinated gypsumCalcinated gypsumCalcinated gypsum

38.38. Refractory bricksRefractory bricks

39.39. Sheet glassSheet glass

40.40. Glass bottles and tumblersGlass bottles and tumblers

41.41. Ceramic Sanitary wares Ceramic Sanitary wares

42.42. GemstonesGemstones

43.43. Ceramic table wareCeramic table ware

��THANK YOUTHANK YOU