Ethiopia’s economy boosts steel companies

Ethiopia's investment climate is paving the way for a robust business environment, with the country opening up its economic sectors to new investments. In a recent interview with CNBC Africa, Mahdi Zemmouchi, the General Manager at Ethiopian Steel Production and Building Company, discussed the business sentiment and opportunities in Ethiopia's growing economy. Zemmouchi highlighted the challenges facing the industry, including exchange rate fluctuations, the impact of COVID-19, logistical issues, and a shortage of skilled workers. Despite these challenges, he emphasized the importance of transferring knowledge and expertise to contribute to Ethiopia's development. The General Manager pointed out that Ethiopia's business climate is similar to that of Kenya, where he had previously lived for two decades. He noted Ethiopia's substantial market size, economic growth of 5-7%, and the availability of skilled labor as key factors attracting investors. Zemmouchi revealed that Ethiopian Steel Production and Building Company has partnered with KS Industries from Holland, a conglomerate with investments in the USA, to expand its manufacturing capabilities in Ethiopia. The company aims to become a manufacturing hub, offering import substitution, outsourcing of high-skilled labor, and technical drawing services. Looking ahead, Zemmouchi expressed optimism about Ethiopia's future as a business destination, citing support from the investment committee and the Dutch embassy. He stressed the importance of partnership and collaboration with local entities to ensure success in the competitive market. With a focus on innovation and research, Ethiopian Steel Production and Building Company plans to differentiate itself through quality offerings and export initiatives. Zemmouchi envisions the company leading in East Africa for storage solutions and embracing technology to meet market demands. In conclusion, Zemmouchi emphasized the need for customer-centric approaches and innovation to address evolving market dynamics. The company aims to export its products to markets beyond Ethiopia, including Uganda, Sudan, Kenya, and the broader East African region, solidifying its position as a regional industry leader.