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| Ethiopia Scandanvia Free Trade Zone Announced | |
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| Tweet Topic Started: Jun 11 2008, 03:46 PM (93 Views) | |
| Ethiopia | Jun 11 2008, 03:46 PM Post #1 |
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Ethiopian Officials Announce Scandanavian Free Trade Zone May 15th, 1950: Ethiopian Herald Reporting (ASSEB) - The Ethiopian Government has been on edge over recent months over a very significant deal with Scandanavian nations. Ethiopian economic ministers have been getting progressively worried about a recent slowdown in foreign investment into the slowly democratizing Kingdom. The new deal with Scandanvia puts those worries at ease for the near term. Ethiopian economic officials, state planners, Afar state planners, and Scandanavian government and private investors have been examining the small city of Asseb for development and have finally reached agreements. The large plan is multi-pronged and involves numerous investors from across Scandanavia, Ethiopia, and the Ethiopian government. To start, the Ethiopian government and the Afar state will be alotting a free trade zone at the port of Asseb for Scandavian investors. The free trade zone will include a large shipping area which will serve as a transfer point for Scandavian shipments. The area will also house a 100,000 square foot office complex for housing Scandavian business offices. The only taxes and fees that will apply to businesses in the building will be standard application fees. Scandavian Import/Export businesses, agri-businesses, and petrochemical firms have already applied for liceneses. From there on out the businesses set up within this zone will be completely tax and duty fee aside from standard individual earned income taxes for their employees. Adjacent to the Free Trade Zone will be an industrial free zone. The size of the zone is expected to be around 12,000 acres, and will involve the demolition of numerous properties in the city of Asseb. These individuals will be relocated as a part of the project at cost to the Ethiopian Government, however, foreign investors will also be supporting the costs of relocation projects. Officials estimate that they have recieved applications for operating licenses to fill half of the zone. Investors will be opening canning factories, juicing factories, meat packing facilities, and refrigeration facilities. Investors in these projects come from across all of Scandanavia, and some of the projects are joint ventures with Ethiopian businessmen. Fruit products are expected to be exported to Scandanavia, while meat packers expect to export their products to Saudi Arabia, Djibouti, and Yemen. Petrochemical companies, farm machinery companies, and tanneries are also expected to set up shop within the zone. A few blocks away from the port near the Swedish/Persian commercial area, a commercial free zone is going to be established for Scandavian investors. In this area Scandavian businesses will be able to establish any commercial business free of taxes and fees excluding income taxes. Contracts have been submitted to construct two restaurants, two 3 star hotels, and five shops. To the south of the city the Ethiopian government will begin constructing a new regional airport in 1951. The airport will have service to Addis Ababa, Asmara, and Dire Dawa via Ethiopian Airlines. Private planes will also be allowed to utilize the airport. It is anticipated that private German and Swedish planes will be utilized to fly back and forth between Asseb and their investments in the Ogaden basin. Talks are also taking place to allow the Scandavians to set up a fishing port at the Port of Asseb to begin commercial fishing operations. This would fall within the Scandavian Free Trade Zone and would involve the construction of a new small port berth. Rumor is also about that Scandavian investors are also strongly interested in establishing commercial citrus fruit and tropical fruit plantations. Investors believe that stability through the interior of Ethiopia, new sound transportation network, low cost of labor, and favorable tax climate, that Ethiopia is now ideal territory to establish such investments. Expected investment from all parties is expected to top one billion dollars when the projects are entirely completed, with over half of that being spent by the end of 1951. Construction, and relocation has already begun. The first businesses are expected to come online by the end of 1951. |
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8:28 AM Jul 11