IFC, part of the World Bank Group, launched the Ethiopian Investment Climate Program in the national regional state of Oromia in order to attract, retain, and leverage foreign and domestic investment for private sector-led growth.
Our team was commissioned to support the Oromia National Regional State, Ethiopia’s economic powerhouse and most populated region, to develop an investment promotion strategy and engage public and private leaders to accelerate the growth of investment and jobs.
Our assignment comprised an in-depth market analysis of the Oromia region’s competitive advantages in order to establish a list of of priority sectors. A subsequent deep-dive analysis was performed for each of the value chains to determine their potential for growth, target markets, types of industries, key market leaders, and regional centers of growth in the state. Our team then delivered a regional investment promotion plan for each of the prioritized sectors, including an investment toolkit, training program for local staff, and ascertaining of buy-in opportunities.
The assignment resulted in:
1- The selection of four priority sectors demonstrating the highest potential for growth and opportunities for private sector investment in the medium term (3 to 5 years): a) food processing (agro-processing + horticulture), b) livestock (including poultry and goats), c) advanced materials, and d) fashion (textile and leather).
2- The outline of a plan of engagement (sector promotion plan), and the creation of an investment toolkit aiming at accelerating the public-sector reform agenda and preparing the domestic private sector to open up to forward-looking targeted investments.