China and India and Ethiopia final report - FES Ethiopia

Similarly, imports of Ethiopia from India have been growing faster than theexports of Ethiopia to India thereby giving rise to widening trade deficit. Thedeficit started widening wildly since 2004/05(Figure 4.8). As figure 4.8 shows,the export revenue generated from India covers less than 4 percent for themajority of the years except for the years 2000, 2001, 2002 and 2003(Figure 4.9).The widening deficits in favor of India need due the attention of bothgovernments so as to sustain the trade relationship between the two countries.Figure 4.9: Exports, Imports and Trade Balance, IndiaValue in ‘000 BirrSource: Ethiopian Customs Authority (ECA), computed4.2 Investment Flows from China and India4.2.1 Chinese Private Investment in Ethiopia4.2.1.1 Licensed ProjectsThe number of Chinese private investors interested to invest in Ethiopia hasbeen increasing from time to time and reached 1829 in 2008 registering acapital of Birr 8.8 billion and employment to be generated 82,478 (32,800permanent and 49, 678 temporary) workforce(table 4.3). Investors have gotlicensed does not mean that they all move to implementation and operationphase. This is because for some, getting a license is an end by itself for theywant it with the aim of taking advantage of incentives related with it includingduty free imports, land and other benefit. Thus, one cannot tell about the actual38