guide romania - east africa
TRANSCRIPT
GUIDE
ROMANIA - EAST AFRICA
for Business, Development, Culture, Education, Training, Research and
Transfer of Technology
The large regional economic bloc with a combined population of more than 141.1 million people, land
area of 1.82 million square kilometres and a combined Gross Domestic Product of $99.8 billion, bears
great strategic and geopolitical significance and prospects of a renewed and reinvigorated East African
Community (EAC).
The EAC aims at deepening economic, social and political integration and enhance the region’s
competitiveness through enhanced value chain, trade and investments. To achieve such goals, the
EAC countries established a Customs Union in 2005 and a Common Market in 2010 which provides
“four Freedoms” namely, free movement of goods, labour, services and capital, to significantly boost
trade and investments and make the region more productive and prosperous.
EAC Partner States also qualify for duty-free access to the US market under the African Growth and
Opportunity Act (AGOA), as well as European Union (EU), and the Common market of Eastern &
Southern Africa (COMESA).
Reforms and a growing participation in global trade has helped the EAC region to grow. It has been the
second fastest growing economic bloc in the world in recent years with an average growth of 5.8% in
2012 (behind ASEAN at 6.1%) which is the best rate of growth in the Sub-Saharan Africa region.
Tanzania, Uganda and Rwanda showed a robust annual growth of over 7% from 2002 to 2012, and the
total FDI inflow in the EAC region has almost tripled from $1.3 billion in 2005 to $3.8 billion in 2012.
All countries in the EAC region have recognised the private sector as an essential growth engine for
economic and social development and have introduced favourable policies to attract domestic and
foreign investment. Governments are encouraging investment by providing fiscal incentives,
establishing Export Processing Zones (EPZs) and industrial parks, setting up exports and investment
promotion agencies (IPAs), and doing outreach activities.
The EAC region is projected to continue showing a strong macro-economic performance in coming
years. According to the World Bank, Rwanda’s economy is projected to grow by 7.5% in 2015,
Tanzania 6.8%, Uganda 6.2%, Kenya 4.9% and Burundi by 4.3%.
Intra-EAC Trade
The intra-regional trade among EAC is growing rapidly, doubling from $1.6 billion (7.8% of total east
Africa’s trade) in 2006 to $3.8 billion in 2010 (11.4%). The share of intra-EAC exports to total east
Africa’s exports has also increased from 14% in 2006 to over 20% in 2010, while the share of intra-
EAC imports in total east Africa’s imports remains small at around 5%.
Kenya, Uganda and Tanzania are the main intra-regional exporters. Kenya has played a dominant role
in the intra-regional trade, exporting manufactured goods, chemicals and machinery to the landlocked
countries such as Uganda and Rwanda. Major EAC exports within the region comprise manufactured
products (food products, beverage, tobacco, cement) and oil re-exports, while EAC exports to other
regions mainly consist of commodities.
EAC’s Trade with the World
The EAC region borders with eight countries including Ethiopia, Somalia, Sudan, South Sudan,
Mozambique, Democratic Republic of Congo, Zambia and Malawi, of which five are landlocked. This
central location of the EAC region presents significant market potential in largely untapped markets, not
only in East Africa but also in Central and Southern Africa.
EAC’s trade with the world increased over five-fold from $8.9 billion in 2002 to $49.3 billion in 2012.
Exports of the EAC have increased to $13.8 billion in 2012, up from $2.8 billion in 2002, while imports
have also witnessed almost six-fold increase to $35.4 billion in 2012, compared to $6.1 billion in 2002.
The region’s major exports are agricultural products such as tea, coffee, flowers, fish, tobacco, and
cashews, which account for 36% of the region’s total exports. Major imports include petroleum and
related products, vehicles and transport equipment, machinery, and pharmaceutical products. The
relatively small share of intra-regional imports to total EAC imports shows that manufacturing in the
region has remained under developed even while the demand is growing.
EU is the region’s biggest trading partner, accounting for nearly a quarter of the region’s total imports
followed by India, UAE, China, South Africa, and Japan. Coffee, cut flowers, tea, tobacco, fish and
vegetables dominate exports to the EU from EAC.
Machinery and mechanical appliances, equipment and parts, vehicles and pharmaceutical products
dominate imports from the EU into the region.
While, SADC accounts for a major share of EAC imports, which is mainly due to imports from South
Africa, imports from the rest of world are mainly from the Middle East and Asia, including India and
China.
BUSINESS GUIDE
ETHIOPIA
INVESTMENT
The Ethiopian Investment Agency (EIA) is a government agency established in 1992 to
promote private investment, primarily foreign direct investment. The overall activities of the
Agency is supervised and followed up by an Investment Board, which is chaired by the
Minister of Trade and Industry. The EIA is headed by a director general who is also a member
of the Board.
Vision: To be a strong institution whichwill make Ethiopia one of the leading investment
destinations in Africa.
Mission: To enhance investment, both foreign and local in the country by promoting its
resource potentials and divestment opportunities’' initiating policy and implementation
measures to create conducive investment climate and providing efficient services lo investors
so as to bring fast and sustainable economic development in the country.
Core values:
o Provision of efficient and effective services which are tailored to the best satisfaction of
our customers.
o Efficient and effective utilization of our resources.
Duties and Responsibilities:
o Providing information required by investors
o Receiving investment applications
o Approving and issuing investment permits
o Providing registration services to newly incorporated business organizations, inducing
notarization ot memorandum and articles of association
o Providing work permits to foreign employees
o Issuing trade and operating licenses to approved foreign investments
o facilitating the acquisition of land by foreign investors
o Providing all other pre and post- approval services to investors
o Promoting and facilitating foreign direct Investment
Investment Opportunities in the Energy Sector
- Bio-Fuel Production
- Wind Power Generation
- Solar Electricity Generators
- Renewable Energy
- Hydropower Development
- Geothermal Development
- Transformer manufacturing
Exchange Rate
Regime Foreign exchange rate is determined by the law of supply and demand of the market.
The national foreign exchange reserves, export performance and inflow of foreign capital
through foreign direct investment decide the average exchange rate of Ethiopian BIRR. At the
end of 2012/13, the average marginal exchange rate in the inter-bank foreign exchange
market was Birr 19.3 against US$ 1 as compared to Birr 17.99 to US$ 1 in 2011/12. Currently,
US$ 1 is equivalent to Ethiopian BIRR 20.16. Foreign Direct Investment It is an undeniable
fact that Ethiopia has made a considerable progress in economic and social development
since 1992 as a result of the implementation of favorable policies and strategies that are
instrumental in improving the national economy.
The Rural Development Policy and Strategy, the Industrial Development Strategy, and other
sectorial policies and strategies have initiated a new push towards creating frameworks
conducive for economic and social development. The Rural Development Policy and Strategy,
which is under implementation, underlines that agriculture-led development will bring about
fast economic growth, enable its people become beneficiary of economic growth, and lay solid
foundation for industrial development.
The Industrial Development Strategy focuses on export manufacturing with priority given to
textile and garments, leather and leather products, agro-processing, and small and
microenterprises. Due to the investment-friendly environment created in the country, the inflow
of foreign direct investment (FDI) has been increasing over the last twenty-two years.
Accordingly, out of the total investment projects licensed between 1992- 2012, FDI’s share is
about 15.80 percent. However, the overall trend of investment in 2012 both the total number of
projects and capital invested have shown slight increase. Ethiopia remains an untapped and
unexploited market for investors. China, India, Sudan, Germany, Italy, Turkey, Saudi Arabia,
Yemen, the United Kingdom, Israel, Canada and the United States are the major sources of
FDI.
Agriculture
Ethiopia's economy is based on agriculture but the government is pushing to diversify into
manufacturing, textiles, and energy generation.. Coffee is a major export crop. The agricultural
sector suffers from poor cultivation practices and frequent drought, but recent joint efforts by
the Government of Ethiopia and donors have strengthened Ethiopia's agricultural resilience,
contributing to a reduction in the number of Ethiopians threatened with starvation.
The banking, insurance, telecommunications, and micro-credit industries are restricted to
domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather,
commercial agriculture and manufacturing. Under Ethiopia's constitution, the state owns all
land and provides long-term leases to the tenants; land use certificates are now being issued
in some areas so that tenants have more recognizable rights to continued occupancy and
hence make more concerted efforts to improve their leaseholds. Ethiopia's economy continues
on its state-led Growth and Transformation Plan.
The five-year economic plan has achieved high single-digit growth rates through government-
led infrastructure expansion and commercial agriculture development. Ethiopia in 2015 is
continuing construction of its Grand Renaissance Dam on the Nile – a controversial five billion
dollar effort to develop electricity for domestic consumption and export.
Currently, agriculture is the leading sector in terms of contribution to the overall economic
growth and development by supplying food for domestic consumption and raw materials for
the domestic manufacturing industries and primary export commodities which constitute as
high as 86% of the total foreign exchange earnings. The national economy, therefore, is highly
correlated with the performance of the agricultural sector. Moreover, the sector accounts
currently for 85% of employment, and supplies 70% of the raw material requirements of local
industries
To facilitate the marketing of agricultural products, the government in collaboration with UNDP
has just introduced the Ethiopian Commodity Exchange (ECX system with its own separate
regulatory body named the Agency for Commodity Exchange. Under this system, is expected
that both the private sector and small farmer! Through cooperatives would participate and will
be beneficiaries.
Sugar Cane Plantation
In Ethiopia, sugar cane plantation started in 1954/55. Sugar has become one of the essential
food consumption items in the country especially in urban areas. Though per capita sugar
consumption in Ethiopia is one of the lowest in the world, the volume of consumption has been
growing steadily since the establishment of the first sugar cane plantations-cum-sugar mills in
the early 1950’s. As a sweetening food item, sugar is used in preparing all types of drinks
(coffee, tea, soft drinks, juices, etc) and foods (pastries, bread of special types, etc). White
sugar is mainly exported to the neighboring countries such as Djibouti, Kenya and Yemen in
quantities ranging between 30,000 to 50,000 tons per annum. The gap between demand and
supply required the importation of substantial amount of sugar from abroad. In view of the
increasing demand, the government has plans to increase its annual sugar production. Thus,
new sugar projects are under construction.
Horticulture
Farming With diverse agro-climatic zones, the long growing season and the availability of
water for irrigation, most fruits and vegetables can be grown well in Ethiopia. Among the major
fruits, mango, banana, papaya, avocado, citrus, grape, and pineapple are the most common
tropical and sub-tropical types cultivated. While pear and plum are emerging temperate fruits
in the country. Commercial floriculture is still a relatively new industry in Ethiopia but it has
emerged as a major non-traditional export sector.
The rose industry has undergone successful development over the period 1998–2009.
Ethiopia is now the second largest flower exporting country in Africa and the fourth in the
world. It is also an ideal location for highland and low land world class flowers. The flower
industry is one of the fastest growing sub sectors in the country. Currently, Ethiopia exports its
cut flower to the Netherlands, France, Germany, Italy, Canada, Norway, Sweden, UK, Middle
East, and other EU countries. Spices and herbs are also generally grown in Ethiopia. The
major spices cultivated are ginger, hot pepper, fenugreek, turmeric, coriander, cummins,
cardamoms, corianders and black pepper. Currently, there are nearly 122,700 ha under spice
farming. Spice production reached 244,000 tonnes per year.
The potential areas for the cultivation of spice are Amhara and Oromiya, SNNP and Gambella
regions. The total potential for low land spice farming is estimated to be 200,000ha. Cotton
Farming Cotton is an important crop in Ethiopia. There is a huge potential for cotton cultivation
in the country especially in Awash valley where large-scale cultivation under irrigation is found.
Other potential areas for cotton cultivation are found in South Omo (Omorate), north western
part of the country (Humera, Metema, Quara, and Belles Valley), Gambella, Tekezze valley,
Dabus Valley and Wabeshebelle watershed area.
Cotton Production
Cotton production is well integrated into the rest of the economy with a large number of textile
and garment factories relying on domestically produced cotton. Opportunities for the
production and processing of cotton in Ethiopia are thus significant.
Rubber and Palm Tree Plantation
Ethiopia has the potential for the production of rubber and palm oil. Rubber is grown under
large scale commercial production in hot tropical and sub tropical humid climatic zones.
Moderate acidic or acidic soil is suitable to grow rubber. Therefore, in south-western part of
Ethiopia these agro-climatic conditions exist for the production of rubber at commercial scale.
Palm tree is a perennial tree. It gives a higher yield of oil per unit area than any other oil seed
crops. The plant can be grown in tropical and sub- tropical hot and humid climatic conditions. It
can also grow in a wide range of tropical soils. Cultivation of palm tree can either be carried
out under irrigation or using natural rainfall. Many areas in the south-western part of Ethiopia
have both the required soil and climatic conditions to grow palm oil in large scale.
Livestock Farming, Fishery
Considerable opportunities exist for investments in rearing and breeding of livestock as well
as in fresh water fishery development and the production of honey and beeswax. The livestock
population of Ethiopia is first in Africa and tenth in the world. The sub-sector has large
resources, which include 50.88 million cattle, 25.98 million sheep, 21.80million goats and
42.05 million poultry. Opportunities are also available in ostrich, civet cat and crocodile
farming. Ethiopia is potential for fishery development is limited to its freshwaters of most of the
lakes that are located close to urban areas.
The total fish catch potential from these waters is estimated at 40,000 tons per year. However,
there is also an opportunity for investment in the construction of aquaculture to produce fresh
water fish for local and international markets.
The current annual production of honey and beeswax of the country is estimated at 43.7
thousand tones and 3,600 tones, respectively.
This provides a high investment opportunity in all aspects of the development of this untapped
sub-sector in the production, collection, processing and marketing of honey and beeswax. In
relation to this, the demand for the bee queen is growing rapidly providing an additional
opportunity for investment. Forestry and Related Activities Potential activities for private
investors in commercial forestry include the production and marketing of gum and incense,
large-scale plantations for timber, the establishment of integrated forest-based industries such
as pulp, and paper and chipboard.
Manufacturing
The manufacturing sector, is dominated by food, beverage, textiles, hides & skins, and leather
industries. But most recently considerable amount of investment is directed towards the
establishment of the cement factories in response to the strong surge in demand for cement
that emanated from huge construction activities booming in the country.
The sector is primarily oriented toward processing of agricultural commodities. It supplies
important consumer goods to the domestic market. The major manufactured export products
comprise clothing and apparel, canned and frozen meat, semi-processed hides and skins,
sugar and molasses, footwear, tobacco, beverages, oil cakes, bees' wax, and leather and
leather products Services
Mining
Ethiopia offers excellent opportunities for mineral prospecting and development. Geological
studies have identified a favorable geological environment hosting a wide variety of mineral
resources. According to the Ministry of Mines, Ethiopia has a substantial deposit of gold,
tantalum, platinum, nickel, potash and soda ash. Among construction and industrial minerals
are marble, granite, limestone, clay, gypsum, gemstone, iron ore, coal, copper, silica,
diatomite, etc. Geothermal energy resource also exists in good quantity.
With regard to fossil energy resources, there are significant opportunities for oil and natural
gas exploration and development in the major sedimentary basins, namely the Ogden, the
Gambella, the Blue Nile and the Southern Rift Valley. Steps are being taken to improve the
situation, including the creation of an environment conducive to private, local and foreign
investment. While there is no restriction on private investors in developing any type of mineral
resource, the greatest potential is in gold and rare metals, petroleum, precious and base
metals, industrial minerals and dimension stones (marble and granite). Prospecting,
exploration and mining licenses have been issued to foreign mining companies with an
aggregate capital of ETB 11.7 billion in 2008/09. Of the total capital, Birr 509.6 million was
injected into the petroleum project alone. In 2012/13, the proceed from the export of gold alone
was US$ 430.6 million. The Ministry of Mines is responsible for the processing of license
application, regulation of the mineral operations and the promotion of investment opportunities
in the mining sector. The Mineral Operations Department is the focal point in the Ministry for
the receipt of mining license application of a foreign investor.
Energy
The potential of Ethiopia’s renewable and non-renewable energy resources is large, with the
economically feasible hydropower potential estimated at 45,000 MW. It has large potential for
geothermal energy generation. Nine of its major rivers are suitable for hydroelectric power
generation. The private sector can participate in electricity generation from any source and
without any capacity limit. Transmission and supply of electrical energy through the Integrated
National Grid System is, however, exclusively reserved for the Government. But, private
investors, both foreign and domestic, are allowed to operate an off-grid transmission and
distribution of electricity. Moreover, private investors are highly encouraged to engage in
generating electricity in bulk and reach an agreement of power purchase with the Ethiopian
Electric Service, a public enterprise, for transmission and supply of electricity through the grid
system.
Infrastructure
Roads
In a country five times as large as the UK, but without an extensive rail network, road
transportation in Ethiopia is paramount. Over the last seven years there has been a massive
increase in funds allocated for road construction. State spending on roads accounts for a
quarter of each year's infrastructure budget and the government has earmarked the equivalent
of $4 billion to build, upgrade and repair roads over the next ten years under the Road Sector
Development Program (RSDP).
This reflects the government's recognition of the importance of the road sector for national
economic growth and for profiting to a maximum from the country's assets.
The RSDP was launched in 1997 and during its first five years, the intention is to maintain,
rehabilitate and upgrade the main trunk roads, link roads and regional roads. The government
will build 3,833 km of asphalt roads, 1,390 km of feeder roads and 5,399 km of gravel roads;
recondition 2,613 of asphalt roads; and carry out ‘heavy maintenance' on 1,575 km of existing
gravel roads. A Road Fund, which is being financed by a levy on fuel prices, is designed to
ensure a flow of funds for the maintenance of the road network.
Spending is concentrated on the five main arteries radiating from Addis Ababa toward Jimma,
Awassa, Adigrat and Djibouti. To kick-start the programme the World Bank is providing $309
million, the EU $300 million, the African Development Bank $104 million while the Ethiopian
government is investing $940 million. Preparations are in progress for the 326 km Addis
Ababa-Jimma road and the 513 km Addis Ababa-Woldiya road.
Airports
Ethiopia's new and upgraded airports facilitate the transport of goods and encourage
investment. There are now two international airports – Addis Ababa and Dire Dawa – and both
have seen an encouraging increase in passenger and freight transport over the last few years.
New passenger and cargo terminals have been built at Dire Dawa airport and are now fully
operational. Smaller airports such as Bahir Dar have been upgraded. In order to encourage
tourism five major airports – Arba Minch, Lalibela, Mekele, Axum and Gondar have been
singled out for upgrading; improvements at the first three airports are already complete and
work on the last two will be completed by early 1999. The opening of the new airport at Arba
Minch has opened up wide-ranging economic opportunities for the lush south.
Upgrading works have also been completed at Semera, Robe (Goba) and Jijiga airfields.
Upgrading of Asosa, Combolcha (Dessie), Shire, Negelle, Kebri Dar, Shilabo, Humera,
Gambella and Shire airfields will be completed by 1999.
Railway transport
The rapid and sustainable economic growth in the country requires availablity of a national
railway network. Therefore, the Ethiopian government has formulated a strategic plan to
construct a total of 2,395 km of national railway network. One of the rail corridors, creating a
crucial trade route, is to neighboring Red Sea Port of Djibouti and, the old railway that
connects Addis Ababa, the capital, to such port is now being replaced by an electrified railway,
a project expected to boost Ethiopia’s import-export trade. Currently, construction of this vital
railway line is in good progress.
Seaport
In order to ensure efficient, cost effective and reliable import and export movement of cargo to
and from the seaports of the neighboring countries, the government has established the
Ethiopian Shipping and Logistics Enterprise. The Enterprise is currently operating two dry
ports, which are located at Modjo and Semera, 73 kms and 588 kms, from Addis Ababa,
respectively. The enterprise is operating other four sub-terminals, which are located at Dire
Dawa, Mekele, Combolcha and Gelean, 515 kms, 783 kms, 376 kms, and 34 kms,
respectively from Addis Ababa. Addis Ababa is linked by road to the Port of Djibouti, 910 kms,
at the Gulf of Aden. The ports of Barbara, 964 kms, in Somaliland and Port Sudan, 1881 kms,
in Sudan are other external trade routes that provide services for export-import trades between
the countries. Another potential port accessible to Ethiopia (in the south) is Port Mombasa, in
Kenya, 2077 kms.
Telecommunications
Ethiopia was faced with the task of dramatically increasing the number of the existing 160,000
telephone lines and extending the service into rural areas, where most of the population live.
In 1996 the Ethiopian Telecommunications Authority was split in two; the new Ethiopian
Telecommunications Authority is responsible for regulating the industry, while the job of
Telecommunications Corporation (ETC) is to expand and improve the services and revitalize
the infrastructure.
In line with the policy of devolving power to the regional states, ETC has been decentralized
so that the individual states are responsible for providing their own telecom services; decision-
making now takes place at local level.
For international traffic ETC uses an earth satellite station. An additional satellite station will
begin operating in the northern part of the country by the end of 1999. Internet services began
in January 1997 and are currently being upgraded; the number of lines available to internet
users recently doubled and a more efficient service will in future be provided to the business
community, educational, health and agricultural sectors at competitive rates. In future the
VSAT system will provide internet, digital TV services and interactive distance learning access,
which will link higher education institutions with many colleges in the more distant regional
states.
The investment required for all these developments will be raised mainly through ETC's
revenue and profits as these are now fed back into the company and not channeled to the
government as they were under previous regimes. Furthermore the government is now
encouraging the participation of domestic and foreign private investment n the
telecommunications sector. ETC is one of the most efficient public enterprises and is highly
profitable. Its rate of return now averages 17% on total assets, and its average profit margin is
28%.
Social Services
Opportunities exist for private investment in the following services:
exporting the country's various products except traditional export products like raw
coffee, oil seeds, pulses, etc. by way of undertaking market promotion, quality improvement or
packaging;
Construction ,comprising first grade contracting and rental of construction machinery as
well as real estate development;
social services, such as health, education and sports facilities;
Education
The total number of educational establishments has been increasing rapidly. the number of
schools was 17,692 to go up to 31,783 in 2011/12. To increase the skilled labor force, the
government of Ethiopia has undertaken a rapid expansion of the university system in the last 8
years, increasing the number of higher education institution from one to 33. It has also
adopted an education policy that 70% of the annual student intake in public universities must
focus on science, engineering, technology and other social science fields. Currently, there are
34 public and 4 private universities in Ethiopia in addition to Addis Ababa University is the
oldest and most important university in Ethiopia followed by Jimma, Haramaya, Gonder,
Mekele, Bahr Dar and Adama Science & Technology universities. The main programs of most
universities include engineering, medical sciences, agriculture, information technology,
business education, humanities and law. These major programs of the universities are
relevant to the development of the strategic economic sectors of the country such as
manufacturing, agriculture, infrastructure, etc.
Now a day'seducation going fast to cover all regions of Ethiopia and Universities are also
meeting the targets of government and public interest
Water supply
Ethiopia has huge run-off and ground water potential. However, it utilizes a small portion of
these resources. Access to safe potable water in urban areas was 81.3 percent in 2012/13.
Access to safe potable water in rural areas was about 66.5 percent in the same year. The
overall national average of access to potable water supply was to 68.45 percent in 2012/13. A
huge project deemed to satisfy safe water demand in the towns and rural areas was launched
by the country’s first five year development plan. Accordingly, the national access to potable
water supply is expected to be 98.5 percent by the end of 2014/15.
Financial Services
The National Bank of Ethiopia (NBE) is the central bank of the country. Commercial banking
functions are performed by the state-owned Commercial Bank of Ethiopia (CBE) and a
number of private banks. The CBE and private commercial banks offer savings and checking
accounts, short-term loans, foreign-exchange transactions and mail and cable money transfer
services. They also participate in equity investments, provide guarantees and perform other
commercial banking activities.
The number of banks operating in the country has reached nineteen (three of them
government-owned) in 2013. These include the two specialized state-owned banks, the
Development Bank of Ethiopia (DBE) and the Construction and Business Bank (CBB). The
DBE, with its 32 branches, extends short-, medium- and long-term loans to viable
development projects including industrial and agricultural projects.
The CBB, with its 34 branches, provides long-term loans for the construction of plants,
producing housing construction materials and the construction of private schools, clinics,
hospitals, and real estate development. Private banks operating in the capital and in other
major cities are Awash (80 branches), Dashen (55 branches), Abyssinya (47 branches),
Wegagen (50 branches), United (41 branches), Nib (45 branches), Cooperative Bank of
Oromiya (38 branches), Lion (20 branches), Oromiya International (25 branches), Buna (8
branches), Zemen (1 branch), Birhan, Abay, Addis, Debub Global and Enat. The number of
insurance companies is fifteen, Ethiopian Insurance Corporation is government-owned and the
rest are private. Private insurance companies include Africa, Awash, United, Global, Nile,
Nyala, Nib, Lion, National, Ethio–Life, Oromiya, Abay, Berhan and Tsehay.
Taxation
The Ethiopian tax law provides for the direct and indirect taxes. The direct taxes are divided
into five categories: personal income tax, rental tax, withholding tax, corporation tax, etc. The
main types of indirect taxes applicable are VAT, customs duty, excise and turn over taxes.
Direct Taxes Incomes taxable under Income Tax Proclamation No. 286/2002 (Article 6)
include: incomes from employment, business activities, personal activities, entrepreneurial
activities by non-residents, movable property, immovable property, alienation property,
dividends distributed by resident company, profit shares paid by registered partnerships,
interest paid by the national, regional or local governments, and license fees. Personal income
tax rates applicable at present are given in following
• The contribution of the employer and the employee to the retirement or provident fund and
all forms of benefits contributed by employers that do not exceed 15% of monthly salary; and
• Payments made to a person as compensation in relation to injuries suffered by that person
or the death of another person.
Other direct taxes applicable are royalties (5%), income paid for services rendered outside of
Ethiopia (10%), income from games of chance (15%), dividends (10%), income from rental of
property (15%), and interest income (5%) and are payable at flat rates in accordance with
Article 31-36 of the Income Tax Proclamation. Indirect Taxes The value added tax (VAT)
system, which came into effect on 4th July 2002, largely replaced the old business tax system
of commodity and service taxes including the sales tax and the withholding tax. The VAT rate
is 15% of the value of every taxable transaction by a registered person and all imports of
goods and services other than those exempted. Taxable transactions which shall be charged
with zero percent are: export of goods or services to the extent provided in the regulations.
The rendering of transportation or other services directly connected with international
transport of goods or passengers as well as the supply of lubricants and other consumable
technical supplies taken on board for consumption during international flights. Excise tax is
payable on a range of consumer goods, whether locally produced or imported, e.g., alcohol,
tobacco, salt, fuel, television sets, cars, carpets and toys. Its rates vary from 10% on receivers,
garments and textiles of any type and fabrics to 100% on perfumes, vehicles above 1,800 cc
and alcoholic drinks. It is payable in addition to VAT.
Turn over tax, under the total value of 500,000 Birr, is applicable to pay 2 or 10 percent from
annual taxable transactions on goods sold or service rendered locally. All income from
domestic or foreign sources is taxed whether it is obtained as remuneration, profit or gains,
from employment, business activities or any activity which brings income to the beneficiary.
For depreciation allowance, assets are categorized into different classes.
The categories and rates of depreciation are: i. Buildings and structures 5%; ii. Intangible
assets 10%; iii. Computers, information systems, software products and data storage
equipment 25%; and iv. All other business assets including automobiles, buses and minibuses
20%. Every investor has a tax obligation and is required to obtain a tax payer identification
number (“TIN”) from the Federal Customs and Revenue Authority. An investor that will involve
in taxable activity has also an obligation to register for VAT.
HUMAN RESOURCES
In conformity with the international conventions and other legal commitments, Ethiopia has
issued a labor law to ensure that worker-employer relations be governed by the basic
principles of rights and obligations with a view to enabling workers and employers maintain
industrial peace and work in spirit of harmony and cooperation.
The Labor Law is believed to be consistent with the investment policy of the country. Foreign
investors shall obtain work permits for their expatriate employees directly from the Ethiopian
Investment Commission (EIC) during the implementation phase of the project. During the
operational phase, the Ministry of Labor and Social Affairs will issue the work permit. The EIC
processes applications of work permits in two hours. The Labor Law has fixed nominal hours
of work as eight hours a day and thirty-eight hours a week. Work done in excess of these
hours is deemed to be overtime. The maximum number of office closure days in a year is 12.
The government has strategic intervention to ensure linkage between economic growth and
employment. Accordingly, most of the urban dwellers benefitted from the economic growth
achieved in the past years. Ethiopia has abundant supply of skilled workers in various fields at
internationally competitive rates. Wages and salaries vary depending on the size of enterprise,
type of profession and level of skill required. They are determined by agreement between the
employer and the employee. Generally, the cost of labor in Ethiopia is low by African standard.
Labor disputes in Ethiopia are resolved through the application of the law, collective
agreements, work rules, and employment contracts
Market
Ethiopia has a large population and thus potentially one of the largest domestic markets in
Africa. Beyond the domestic market, by virtue of its membership of the Common Market for
Eastern and Southern Africa (COMESA) embracing 19 countries with a population of 400
million, Ethiopia enjoys preferential market access to these countries. Ethiopia’s proximity to
the Middle East also offers potential market opportunities.
The country also qualifies for preferential access to European Union market under the EU’s
Everything-But-Arms (EBA) initiative and to USA markets under the African Growth and
Opportunities Act (AGOA) and the Generalized System of Preference (GSP). Thus, most
Ethiopian products can enter into these markets quota and duty free. Furthermore, a broad
range of manufactured goods from Ethiopia are entitled to preferential access under the
Generalized System of Preference (GSP) in USA, most countries of the EU and other
developed countries. No quota restrictions are placed on Ethiopian exports falling under the
4800 products currently eligible for GSP treatment.
Economic Sectors of Ethiopia
Prime Minister, Office of the Prime Minister ,P.O. Box 1031,Addis Ababa,Fax: +251 115552020,Tel: +251 115 551059
Trade & Finance, Office of the Prime Minister ,P.O. Box 1031,Addis Ababa,Fax: +251 115552020,Tel: +251 115 550223
Ministry of Finance,P.O. Box 1905,Addis Ababa,Fax: 551355,Tel: 552014
Customs Authority,P.O. Box ,Addis Ababa,Fax: +251 115 551355,Tel: +251 115 511639
Inland Revenue Administration, P.O. Box,Addis Ababa,Fax: +251 115 551355,Tel: +25111 5159671
Ministry of Economic Development and Cooperation,P.O. Box 1037,Addis Ababa,Fax: +251 11 553844/553388,Tel: 550092,E-mail: [email protected] Mines, Energy & Water Resources Development Department,Ministry of Economic Development and Cooperation,P.O. Box 1037,Addis Ababa,Fax: +251 555 3844/553388 ,Tel: +251 111 560006
Human Resources Development and Social Affairs Dep’t.,Ministry of Economic Development and Cooperation,P.O. Box 1037,Addis Ababa,Fax: +251 11 5553844/553388 ,Tel: =251 11 1560007
Ethiopian Mapping Authority,P.O. Box 1037,Addis Ababa,Fax: +251 11 5553844/553388,
Tel: +251 11 5515901
Ministry of Agriculture,P.O. Box 62347,Addis Ababa,Fax: +251 11 5512984,Tel: +251 11 5152816
Public Relations Service,Ministry of Agriculture,P.O. Box 62347,Addis Ababa,Fax: +251 11 5512984/Tel: +251 11 5151809
Basin Dev’t Studies Department,Ministry of Water Resources Development,P.O. Box 5744,Addis Ababa,Fax: +251 11 4611700/+251 11 4610805/+251 11 4610710,Tel:+251 11 4 611322
National Metrology Service Agency,P.O. Box 5744,Addis Ababa,Fax: +251 11 4611700/+251 11 4610805/+251 11 4610710,Tel: +251 11 551 0863
Ministry of Works and Urban Development,P.O. Box 5608,Addis Ababa,Fax: +251 11 5511200,Tel: ++251 11 5154858/+251 11 5510000
Mines and Energy,P.O. Box 486,Addis Ababa,Fax: +251 11 4615130,Tel: +251 11 4615137
Ethiopian Geological Survey,P.O. Box 486,Addis Ababa,Fax: +251 11 4615684,Tel:+251 4 615685
Energy Studies & Research Center,P.O. Box 486,Addis Ababa,Fax: +251 11 5517874,Tel: +251 11 5150465
Geology & Geothermal Exploration Project,Ministry of Mines and Energy,P.O. Box 486,Addis Ababa, +251 11 3202851
Ethiopian Petroleum Enterprise,P.O. Box 486,Addis Ababa,Fax: +251 11 5512938,Tel:+251 11 5 510045
Ethiopian Electric Power Corporation,P.O. Box 1233,Addis Ababa,Fax: +251 11 5552345,Tel: +521 11 3112250
Gilgel Gibe Hydroelectric Project,P.O. Box 1233,Addis Ababa,Fax: +251 11 5 552345,Tel: +251 115 150735
Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: +251 11 5515411/+251 1 15514288,Tel: +2511 5513900
Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: +251 11 5515411/+251 11 5514288,Tel: +251 11 5515247
Policy and Planning Department,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 152961
Foreign Trade Department,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 516123
Domestic Trade Department,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 512427
Commercial Registration and Business Licensing Dept.,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 518025
Industry and Handicraft Dept.,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 152545
Chemical Weapons Convention Implementing Dept.,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 518230
Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 513829
Information and Public Relations Service,Ministry of Trade and Industry,P.O. Box 704,Addis Ababa,Fax: 515411/514288,Tel: 155533
Ministry of Transport and Communications,P.O. Box 1238,Addis Ababa,Fax: 515665,Tel: 518292
Ministry of Transport and Communications,P.O. Box 1238,Addis Ababa,Fax: 515023,Tel: 158640
Maritime Department,Ministry of Transport and Communications,P.O. Box 1238,Addis Ababa,Fax: 515665,Tel: 158227
Planning and Programming Dept.,Ministry of Transport and Communications,P.O. Box 1238,Addis Ababa,Fax: 515665,Tel: 153550
Civil Aviation Authority,P.O. Box 987,Addis Ababa,Fax: 612533,Tel: 180359/610277
Ethiopian Telecommunications Corporation,P.O. Box 1047,Addis Ababa,Fax: 515777,Tel: 158080/510500
Ethiopian Telecommunications Agency,P.O. Box 9991,Addis Ababa ,Fax: 531255,Tel: 530086
Ethiopian Roads Authority,P.O. Box 1770,Addis Ababa,Fax: 514866,Tel: 517170/156603
Ethio-Djibouti Railway,P.O. Box 1051,Addis Ababa,Fax: 513533,Tel: 518468/513997
Ethiopian Postal Service,P.O. Box 1629,Addis Ababa,Fax: 512999,Tel: 155886/515011
Ethiopian Road Transport Auth.,P.O. Box 2504,Addis Ababa,Fax: 510715,Tel: 515842/510244
Bole Expansion Project Coordinator,Ministry of Transport & Communication,P.O. Box 987,Addis Ababa,Fax: 612533,Tel: 613643/610277
Flight Clearance,Ministry of Transport & Communications,P.O. Box 987,Addis Ababa,Fax: 612533,Tel: 184902/ 610277
Aviation Facilitation & Security Services,Ministry of Transport & Communications,P.O. Box 987,Addis Ababa,Fax: 612533,Tel: 181196
Bole Airport Security Officer,Ministry of Transport & Communications,P.O. Box 987,Addis Ababa,Fax: 612533,Tel: 180520
Coffee & Tea Inspection and Trade Control Dept.,Coffee and Tea Authority,P.O. Box 3222,Addis Ababa,Fax: 517233/518713,Tel: 150999
Development & Project Coordination Department,Coffee and Tea Authority,P.O. Box 3222,Addis Ababa,Fax: 517233/518713,Tel: 152121
Planning and Programming Dept.,Coffee and Tea Authority,P.O. Box 3222,Addis Ababa,Fax: 517233/518713,Tel: 153058
Coffee & Tea Quality Control and Liquoring Center,Coffee and Tea Authority,P.O. Box 3222,Addis Ababa,Fax: 517233/518713,Tel: 653723
Information & Public Relations, and Tea Authority,P.O. Box 3222,Addis Ababa,Fax: 517233/518713,Tel: 516328,
Ethiopia Coffee Export Enterprise,P.O. Box 2591, Addis Ababa,Fax: ,Tel: 155229/515333
Tea Processing & Marketing Enterprise,P.O. Box 2520,Addis Ababa,Fax: ,Tel: +251 11 3202720
Central statistical Authority,P.O. Box 1143,Addis Ababa,Fax: +251 11 5550334,Tel: 550450
Ethiopian Investment Authority,P.O. Box 2428,Addis Ababa,Fax: 514396,Tel: 153432
Project evaluation & Duty Exemption Dept.,Ethiopian Investment Authority,P.O. Box 2428,Addis Ababa,Fax: +251 11 5514396,Tel: +251 11 5157967
Policy, Research & Planning Ser.,Ethiopian Investment Authority,P.O. Box 2428,Addis Ababa,Fax: +251 11 5514396,Tel: +251 11 5510033
Licensing, Registration & Project Follow-up Dept.,Ethiopian Investment Authority,P.O. Box 2428,Addis Ababa,Fax: +251 11 551 4396,Tel: +251 11 5510033
2020 Open College Address : Jimma Phone : 091 214 2235 ABC School Address : Bahirdar Phone : 058 220 4714 Abdal School Address : Harer Phone : 025 666 0621 Aboker Elementary School Address : Harer Phone : 025 666 1170 Aboker Primary Secondary School Address : Harer Phone : 025 666 0139 Abstract Computer Address : Jimma Phone : 047 112 2964 Abyssinia Computer Center Address : Jimma Phone : 047 111 6520 ADAMA NO 4 SCHOOL Address : Nazareth Phone : 022 111 2957 ADAMA NO.1 ELEMENTARY SCHOOL Address : Nazareth Phone : 022 111 3217
Addis Ababa Medical College Address : Dire Dawa Phone : 025 111 2786 Addis Ababa University, Faculty of Medicine Address : 1176 Phone : +251 518 999, Addis College Address : Addis Ababa, Yeka Phone : +251 11 6635393/94/6511027/6631277 Addis College Address : Addis Ababa Phone : +251 11 6635393/94/6511027/6631277 Admas University College Address : Awassa Phone : 046 221 0749 Admas University College Address : Addis Ababa Phone : 0115513515, 0115 50 88 08/10 Email : [email protected] Africa Beza University College Address : Awassa Phone : 046 110 4274 Africa Medical College Address : Addis Ababa Phone : 011-663 4653/011-618 0932 Email : [email protected] Detail Africa Medical College Address : Addis Ababa Phone : 0116634653/ 0116180383/ 0116180932/ 0116181308 Afro Canadian College
Address : Jimma Phone : 091 218 2769 Al Kalem School Address : Addis Ababa Phone : 011 270 7328 ETHIO LEATHER INDUSTRY PRIVATE LIMITED COMPANY (ELICO) Address : Addis Ababa Phone : +251-11-4400773/ +251-11-4422525 Email : [email protected] Hydrogen Peroxide H2O2 Address : No.38,Nongye road,Zhengzhou Phone : 86-371-86097690 Email : [email protected] 2A.M General Trading Address : Jimma Phone : 047 111 3090 AB PLAST PLC Address : Addis Ababa Phone : 011 6293494/6295112 Email : [email protected] AB SQUARE INDUSTRIAL ENGINEERING PLC Address : Addis Ababa Phone : +251 11 5540543/5540544 AB SQUARE INDUSTRIAL ENGINEERING PLC Address : Addis Ababa Phone : +251 11 5540543/5540544 Abader Hotel
Address : Harer Phone : 025 666 0721 Abakiy General Business PLC Address : Addis Ababa Phone : +251 11 4666406 ABC PLASTIC FACTORY PLC Address : Addis Ababa Phone : +251 11 2755206 Email : [email protected] ABDELKADER SELEMON FLOUR SALES Address : Mekelle Phone : 034 440 8217 Abdu Said Address : Dessie Phone : 033 111 7637 Abdulwasiibrahim General Trading Address : Dire Dawa Phone : 025 111 3232 Abe Industrial Engineering Address : Nazareth Phone : 022 111 1613, 022 112 7949 Email : [email protected] Abeba Sweater Production Distribution Address : Awassa Phone : 046 220 7432 Abyssinia Cements PLC Address : Addis Ababa Phone : +251 11 6639755
ADAMA SPINNING FACTORY Address : Addis Ababa Phone : 251-11-554 8170 Email : [email protected] ADAMA SPINNING FACTORY Address : Adama Phone : 022-111-93-95/022-111-94-54 Email : [email protected] Addie Trading Address : Awassa Phone : 046 221 5225 Addis Ahadu Packaging PLC Address : Addis Ababa Phone : 011 663 17 71/72 Email : [email protected] addis Gas & Plastics Factory Pvt. Ltd. Co. (aGP) Address : KIRKOS SUB-CITY, KEBELE 10, H. NO. 150-151 Phone : 251-011-551 9899 Email : [email protected]
KENYA
Mandate
Kenya Investment Authority (KenInvest) is a statutory body established in 2004 through an Act of Parliament (Investment Promotion Act No. 6 of 2004) with the main objective of promoting investments in Kenya. It is responsible for facilitating the implementation of new investment projects, providing After Care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally. The core functions of KenInvest include; Policy Advocacy; Investment Promotion; Investment Facilitation which includes Investor Tracking and After Care Services.
Opening a branch office of an overseas company
An overseas company wishing to open a branch office in Kenya should deliver the following to the Registrar of Companies: A certified copy of the Charter, Statutes or Memorandum and Articles of Association of the Company, or other instruments defining the constitution of the company;
A list of the directors and secretary of the company, giving full names, nationality and other
directorships of companies in Kenya;
A statement of all existing charges entered into by the company affecting properties in Kenya;
Names and postal addresses of one or more persons resident in Kenya authorised to accept,
on behalf of the company, service of notices required to be served on the company;
Full address of the registered or principal office of the company in its home country;
Investors full address for business in Kenya.
Both private and public companies may allot shares for considerations other than cash. Companies should inform the Registrar of Companies of such allotments and submit a written contract constituting the title of the allotted.
Patents and Trade Marks
Patents are regulated by the Industrial Property Act and administered by the Kenya Industrial Property Institute (KIPI), while trademarks are regulated by the Trade and Service Marks Act (Cap 506) and administered by the Registrar of Trademarks at KIPI. The duration of trademarks is seven years from the date of filing and renewable every 14 years.
Work permits
The Government allows investors to have key expatriate staff in senior management positions or where locals with specific skills are not available. Work permits for such expatriates are issued by the Immigration Department and are valid for one to two years, renewable on application.
Import and Export Procedures
There is no import licensing except for a few items restricted for security, health or environmental reasons detailed in the Imports, Exports and Essential Supplies Act (Cap 502).
During the Budget for Fiscal Year 2001/02 the Minister agreed to waive the 2.75% Import Declaration Form (IDF) fees applicable on imported goods used for manufacturing goods for exports under the Tax Remission for Export Office (TREO) scheme. Manufactures under the TREO will however have to pay Kshs. 5000 which is processing fees.
Economic composition
Kenya's economy is market-based, with a few state-owned infrastructure enterprises, and
maintains a liberalized external trade system. The country is generally perceived as Eastern
and central Africa's hub for Financial, Communication and Transportation services. As of
March 2014, economic prospects are positive with above 5% GDP growth expected, largely
because of expansions in tourism, telecommunications, transport, construction and a recovery
in agriculture.
Imports and exports
Exports in Kenya increased to 48832.81 Million KES in March of 2014 from 42648 Million KES
in February of 2014. Exports in Kenya averaged 24229.12 Million KES from 1998 until 2014,
reaching an all time high of 48832.81 Million KES in March of 2014 and a record low of 9007
Million KES in January of 1999. Exports in Kenyaare reported by the Central Bank of Kenya.
Imports in Kenya increased to 107990.37 Million KES in March of 2014 from 107072 Million
KES in February of 2014. Imports in Kenya averaged 54577.41 Million KES from 1998 until
2014, reaching an all time high of 136123 Million KES in August of 2011 and a record low of
13453 Million KES in January of 1999. Imports in Kenyaare reported by the Central Bank of
Kenya.
Market access
Kenya is signatory to a number of multilateral and bilateral trade agreements as part of its
trade policy. Kenya is a member of the World Trade Organization (WTO) making her products
access more than 90% of world markets at Most Favoured Nation (MFN) treatment.
In addition, Kenya is member to several trade arrangements and beneficiary to trade-
enhancing schemes. Kenya is a member of the East African Community (EAC) comprising
Kenya, Uganda and Tanzania with a population of more than 80 million people.
Kenya is also a member of the Common Market for Eastern and Southern Africa (COMESA)
with a population of about 400 million people.
The national market
Kenya has a population of 43.18 million and a GDP per Capita of 862.23 USD.
COMESA forms a major market place in Africa bringing together as it does 19 member states
covering a total population of 444 million. A Free Trade Area (FTA) was created in 2000 and
now encompasses 15 of the 19 member states (all but Democratic Republic of the Congo,
Eritrea, Ethiopia and Seychelles). A customs union is planned in the close future with the
eventual elimination of quantitative and non-tariff barriers for goods originating from within the
region. Common external tariffs are also foreseen. Given the technical and legal challenges
posed by a number of countries being both members of COMESA and the EAC single market,
it is likely that the conditions of the COMESA union will be harmonized with that of EAC.
Its member countries are: Burundi, Comoros, Democratic Republic of the Congo, Djibouti,
Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles,
Sudan, Swaziland, Uganda, Zambia, Zimbabwe.
Under the African Growth and Opportunity Act (AGOA) Sub-Saharan African countries
benefit from duty-free access to the United States for an additional range of 1,800 products
that are excluded from the Generalized system of preferences. These include most textiles
and apparel; watches; and most footwear, handbags, and luggage products. With regards to
apparels, the textiles and yarns must in general originate from Sub-Saharan African countries
or the United States.
Opportunities arising from political devolution
The implementation of the 2010 constitution has led to the devolution of significant powers to
Kenya’s x counties. This has led to the construction of new country government offices and
displacement of civil servants and spending power from Nairobi to county capitals, with the
attendant impact on local economies. The devolution of development funds to county budgets
has also led to an increase in road and other construction at the county level. This has led to
significant opportunities in construction and property development in the counties.
Energy
Major sources of commercial energy in Kenya are petroleum, geothermal and hydro energy.
75 % of population use traditional solid fuels such as fuel-wood and charcoal in residential
sector for heating, light and cooking. The residential sector contributed 81 % of energy
consumption in 2009. Further development of the use of biomass and extension of national
electricity grid would reduce this consumption greatly. Electricity demand in the country is
significantly rising mainly due to the accelerated productive investment and increasing
population.
Investment Opportunities in the Energy Sector
- Exploration of hydrocarbons and petroleum
- Development of A 300 – 1000 Nuclear Power Plant
- Bio-Fuel Production
- Wind Power Generation
- Solar Electricity Generators
- Renewable Energy
- Hydropower Development
- Coal Exploration and Exploitation
- Geothermal Development
- Transformer manufacturing
Incentives for investors in the energy sector
- The government has made available the following incentives available in order to encourage
investment in the energy sector:
- Letters of comfort to independent power producers.
- The government undertakes and makes available resource assessments and feasibility
studies to private investors.
- The government is proposing, but yet to be legislated, fiscal incentives and facilitation
assistance for investment in green energy.
Opportunities in geothermal energy
Kenya is endowed with vast geothermal potential estimated at between 7,000 and 10,000 MW.
It is currently Africa's largest geothermal producer with 210 MW of capacity. Recent
discoveries include a commercially exploitable geothermal seam in Menengai. The Kenyan
Government has recently initiated the Scaling-up Renewable Energy Program (SREP)
investment plan in line with its national renewable energy development strategy.
Tourism
Tourism is one of Kenya's leading foreign exchange earner and third largest contributor to the
GDP after agriculture and manufacturing. The sector has been growing fast as a result of
various factors such as liberalization of tourist markets and continued Government support
and commitment to providing an enabling environment, coupled with successful tourism
promotion and political stability.
A large proportion of Kenya's tourism centers on safaris and tours of its great National Parks
and Game Reserves. While most tourists do visit for safari there are also great cultural
aspects of the country to explore in cities like Mombasa and Lamu on the coast. The Masai
Mara National Reserve is usually where the MaasaiVillage can be found that most tourists like
to visit. There is also a lot of beaches to visit in Kenya, where you can experience water
boarding, surfing, wind surfing and many more fun activities that are good for Kenya's
economy
Investment Opportunities in Tourism
- Development of Resort Cities
- Construction of International Hotel Chains
- Investment in Conference Facilities
- Entertainment Options – Amusement Parks, Clubs, Casinos, Theatres and Specialty
Restaurants
- Film Industry
- Construction of Golf Cities
- Construction of lake view resort in Kisumu
- Water Sport
ICT
The Information and Communication Technology (ICT) sector plays a crucial role in the Socio-
economic development of the Country. The Government has recognized the
importance of ICT as a powerful tool in accelerating productivity of all sectors and empowering
people to meet the challenges of the 21st century.
To optimize the sector’s contribution to the development of the entire economy the
government is currently offering investment opportunities to the private sector.
The ICT sector in Kenya provides investment opportunities in the following areas under
the Public Private Partnership arrangement.
Kenya currently leads in African connectivity with the highest bandwidth per person on the
continent the fastest speeds, and some of the lowest internet costs.
The country has more undersea cables than any other nation on the East African coast, with
government support having been directed at increasing access and participation by more
carriers. The landing of the East African Submarine Cable System (EASSY), The East African
Marine System (TEAMS), SEACOM and LION high-capacity submarine cables brought a 20-
fold increase in international bandwidth in the country to 20Gbit per second.
Investment Opportunities in ICT
- Data Centre and Disaster Recovery Centre
- Deploying of Digital Broadcast Network
- Rolling out of E-government services
- Multimedia Technology Parks (MTPs)
- Software and Hardware Development
- Communication Equipment in the security sector
- BusinessProcessOutsourcingPark (BPO)
All the above factors coupled with the friendly business environment and an innovative culture
have made Kenya a premier outsourcing destination and facilitated the formation of strong
local BPO/ITES companies such as Kencall (awarded best non- European Call Centre, 2008),
Horizon Contact Centres, Direct Channel, TechnoBrain
(formerKentech data), Adept Systems and Craft Silicon, a leading software development
house. There is equally notable interest from a number of international outsourcing currently
at various levels of feasibility studies. Kenya is also host to regional offices for the world’s
biggest technology companies including Microsoft, Google, Cisco, Oracle, IBM and SAP.
Infrastructure
Kenya envisages a massive upgrading and extension of the country's infrastructure. In this
regard, the country has highlighed a number of infrastructure projects that present significant
opportunities for investors in the coming years.
It is important to note that while the Government has put forward plans on how it would like to
develop infrastructure, it is equally open to ideas and proposals from potential investors.
Investment Opportunities in Infrastructure
- Redevelopment of the Northern Corridor
- Nairobi Metropolitan Mass Rapid Transit Programme
- Building of a standard gauge line to replace the current Kenya-Uganda railway
- Design and Construction of a new terminal at JomoKenyattaInternationalAirport
- Development of a new corridor from Lamu to South Sudan and Ethiopia (LAPSET)
- Private Sector Management of Nairobi-Thika Highway
Nairobi Metropolitan Mass Rapid Transit Programme
The Nairobi Metropolitan Mass Rapid Transit Programme consists of the following projects:
- Rapid light rail
- Provision of Non-motorized transportation
- Closed Circuit Television (CCTV)
- Parking system
- Geographical Information Systems (GIS) Planning and Mapping of the Metropolitan Region
Manufacturing
This sector is mainly agro based at the moment and plays an important role in adding value to
agricultural output by providing forward and backward linkages with agricultural sector.
However, there is a shift to export oriented manufacturing as the main thrust of Kenya's
industrial policy since the country aims to raise the share of products in the regional market
from 7% to 15 % and develop niche products for existing and new markets.
Kenya is promoting development of Special Economic Zones (SEZs), Industrial Parks,
Industrial Clusters, promotion of small and medium scale manufacturing firms, development of
niche products, and commercialization of research and development results.
Investment opportunities in Manufacturing
- Development of Industrial and manufacturing Zones
- Development of Small and Medium-Enterprises (SME) Parks
- Micro and Small Enterprise (MSE) 2030 Initiative Project
- Agro-processing industry
- Chemicals industry
- Motor vehicle components manufacturing
- Iron and Steel Industry
- Manufacture of Aluminum Cans
- Component Manufacture
Agriculture / Horticulture
With a combination of active government support, favourable agro-climatic conditions (22°C-
30°C in the day, 6°C-12°C at night and 60-80 days of rain), availability of low-cost farm
workers and the know-how, reach and financial weight of foreign investors, matched by the
year-round demand for certain vegetables in international markets, and direct air connections
to Europe, horticulture has emerged as one of the country’s fastest growing sectors within
agriculture, making Kenya a major exporter in this field. Horticulture production is divided into
fruits and vegetables on the one hand, and cut flowers on the other.
Fruits and vegetables
Participation by foreign investors (mainly Dutch and British) in the growing, processing and
export of fruits and vegetables has been significant and has helped secure market access and
raise quality, both to meet EU sanitary and phyito-sanitary standards and additional ones, for
example those set by the British Retail Consortium. The most common vegetables are fresh
beans (French beans, fine beans and dwarf beans), fresh peas (mange tout, sugar snap and
garden peas), brussels sprouts, broccoli, courgettes, and baby carrots.
Cut flowers
There has been a cut flower industry in Kenya since the 1980s. However, it is only since the
1990s that foreign investment has enabled the industry to acquire new technologies, upgrade
quality control and improve infrastructure. Principal flowers exported from Kenya are roses,
spray and standard carnations, statice, alstromeria, lilies and hypericum. Peak periods for this
sector include Valentines Day, UK and European Mother’s Days, Easter, St Nicholas,
Christmas and France for New Year’s Eve.
The floriculture industry, located for the most part on the shores of Lake Naivasha, but present
in a number of areas through the Rift Valley and Mount.Kenya region, is vertically integrated,
depending to a large extent on outgrower arrangements (more so than fruits and vegetables).
Small cut flower farms in Kenya produce and sell their flowers to larger local Kenyan or foreign
companies, which control, grade, bunch and export the flowers via cold storage facilities at
JomoKenyattaInternationalAirport in Nairobi. The industry employs 2 million people, or 7
percent of the population, directly and indirectly.
Certification
In response to requirements introduced by buyers in international markets with regards to
standards of environmental management, product and food safety, quality, traceability, and the
occupational health and safety of workers, the two main horticultural producer groups, the
Fresh Produce Exporters Association of Kenya and the Kenya Flower Council have both
launched codes of practice, which are benchmarked to the international Global-GAP (good
agricultural practice) initiative. Fruit and vegetable producers are certified under Kenya- GAP,
while cut flower producers are certified under the Kenya Flower Council’s code of practice
Pharmaceutical sector
Kenya Investment Authority (KenInvest) is a statutory body established under The Investment
Promotion Act No. 6 of 2004. KenInvest’s mandate is to promote and facilitate private
investments in Kenya for both domestic and foreign investors. KenInvest offers the following
services to investors at no cost
➢ Issuing Investment Certificates
➢ Assisting in obtaining all necessary licenses and permits
➢ Assisting in obtaining incentives or exemptions under various Acts and other regulations.
➢ Coordinating relevant inter-governmental meetings for smooth investor facilitation.
➢ Investment facilitation and after care services
➢ Investment promotion through investor targeting, roadshows and conferences.
The purpose of this proposition is to enumerate what Kenya has done to promote investments
and invite you to take advantage of our investment opportunities that are of interest to you. We
also want to highlight that Kenya’s business climate is less regulated, and generally more
supportive of private enterprise.
During the years the Government has adopted and pursued a mixed economic development
strategy since independence. While the receptive roles of the public and private sectors have
evolved over time, the country has experienced remarkable continuity in its underlying
economic development strategy. However, there has been in the recent past a shift in
emphasis from public to private sector led investment. Market-based reforms have been
introduced and more incentives for both local and foreign private investments provided.
Kenya has also put in place a new development Blue print known as Kenya Vision 2030 that is
aimed in transforming Kenya into a newly industrialised middle income economy by the year
2030.
The vision is based on achieving an annual growth rate of ten percent annually from the year
2012. This growth target is aimed at six key sectors of our economy namely Tourism,
Manufacturing, Agriculture, ICT & Business Processing Outsourcing, Financial sector,
Wholesale and Retail.
There are several reasons why we would encourage your company to choose Kenya as an
investment destination.
➢ Firstly, Kenya is a convenient location for Hub operations. It has easy access to the rest of
African region through road railway, sea and air.
➢ Secondly, it also has easy access to the international markets, in Europe, Asia and the
USA.
➢ Thirdly there is adequate availability of business facilitation support services namely,
finance, insurance and transport. In addition Kenya has a highly developed and well
diversified human resource base.
➢ Vision 2030’s overarching vision is to make Kenya a globally competitive and prosperous
nation with a high quality of life by 2030.
During the first five years of the Medium Term Plan(MTP) major achievements especially in
the political pillar key among them being transformation of the Kenya’s political governance
across 5 strategic areas;
• Rule of Law – a new Constitution enacted in 2010.
• Electoral and political processes
• Democracy and public service delivery
• Transparency and accountability
• Security
➢ Last but not least, Kenya belongs to the East African Community Customs Union and the
Common Market for Eastern and Southern Africa (COMESA).
This huge population of 400 million with 19 member states and an annual import bill of US$ 32
billion and export bill of US$ 82 billion COMESA markets represent enormous opportunities for
investments.
Kenya is also a signatory to the COMESA Free Trade Area (FTA), which enables duty free
and quota free movement of goods and services among fourteen member States namely,
Burundi, Comoros, Djibouti, Egypt, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda,
Sudan, Seychelles, Zambia and Zimbabwe.
With a dynamic mix of modern industry and commerce along with a traditional Agriculture
sector supported by a vibrant growing private sector, your company will be an ideal investment
partner for Kenya. Below is a brief on the pharmaceutical industry in Kenya.
The Pharmaceutical sub sector
The pharmaceutical industry consists of three segments namely the manufacturers,
distributors and retailers. All these play a major role in supporting the country’s health sector,
which is estimated to have about 4,557 health facilities countrywide.
Kenya is currently the largest producer of pharmaceutical products in the Common Market for
Eastern and Southern Africa (COMESA) region, supplying about 50% of the regions’ market.
Out of the region’s estimated of 50 recognised pharmaceutical manufacturers; approximately
30 are based in Kenya.
It is approximated that about 9,000 pharmaceutical products have been registered for sale in
Kenya. These are categorised according to particular levels of outlet as free sales/OTC (Over
the Counter), pharmacy technologist dispensable, or pharmacist dispensable/ prescription
only.
Policy on pharmaceuticals
The patent protection of pharmaceuticals in Kenya is based on the African Regional Industrial
Property Organisation (ARIPO) patent system. Kenya’s patent laws have been revised from
the traditional British based format to the ARIPO system, which was created by the Lusaka
agreement.
ARIPO is based in Harare, Zimbabwe; the organisation was mainly established to Pool the
resources of its member countries in industrial property matters together in order to avoid
duplication of financial and human resources. Additionally, the Kenyan government passed the
Kenya Industrial Property Bill in 2001. This bill allows Kenya to import and to produce more
affordable medicines for HIV/AIDS and other diseases.
Production of pharmaceutical products
The products manufactured by the pharmaceutical companies in the country for both local and
international markets include Antibiotics, Antimalarials, Antiamoebics, Analgesics,
Antidiarrheals, Antacids, Tranquillisers, Antispasmodics, Vitamins and Antiulcers. These drugs
are used in various medical areas including Anti-Infective, Gastrointestinal, Analgesic/Anti-
inflammatory, Cardiovascular and Respiratory therapeutic segments. The pharmaceutical
sector in Kenya is also engaged in assembling capsules, disposable syringes, and surgical
gauze amongst others.
Medical research & development
There are great efforts being made in the area of research and development in the field of
pharmaceutical and healthcare development in Kenya.
Research institutions undertaking or supporting medical research in Kenya include Kenya
Medical Research Institute (KEMRI), Kenya Industrial Research and development Institute
(KIRDI), African Medical Research Foundation (AMREF) and academic institutions like
MoiUniversity’sSchool of Medicine, the Medical faculty of the University of Nairobi among
others.
Opportunities for investment in the health/pharmaceutical sector in Kenya include:
➢ Manufacture of disposable surgical gloves, latex gloves and condoms.
➢ Commercial processing of traditional medicines, considering the diverse flora available in
the country.
➢ Multipurpose chemical plant for bulk production of intermediate inputs such as
paracetamol, aspirin, etc.
➢ Processing of locally available sugar, salt (sodium chloride) and ethanol to pharmaceutical
grade for pharmaceutical industry use.
➢ Chemical plant to manufacture anti tuberculosis, anti-leprosy, antibiotic rifampicin from the
penultimate state.
➢ Manufacture of Quinine by extraction from Cinchona bark and subsequent purification and
synthesis to Quinine sulphate.
➢ Extraction of Hecogenin from sisal waste and synthesis of Betamethasone from
Hecogenin.
➢ Manufacture of medical supplies e.g. syringes, catheters, gauzes, etc, and medical
equipment for the regional market.
Prospects for the pharmaceutical industry in Kenya
➢ Export of high quality products
➢ Increased quantity of production
➢ Expand product portfolio and intensify the search for new markets and marketing
opportunities
➢ Support for medical research
Exports
Kenya enjoys preferential access to the regional market under a number of special access and
duty reduction programmes related to the East African Community (EAC) and the Common
Market for Eastern and Southern Africa (COMESA) among others. The country exports its
medicinal and pharmaceutical products to Tanzania, Uganda, DRC, Rwanda, Burundi, the
Comoros, Ethiopia and Malawi among other destinations.
ICT sector
Kenya Investment Authority (KenInvest) is a statutory body established under The Investment
Promotion Act No. 6 of 2004. KenInvest’s mandate is to promote and facilitate private
investments in Kenya for both domestic and foreign investors. KenInvest offers the following
services to investors at no cost:
➢ Issuing Investment Certificates
➢ Assisting in obtaining all necessary licenses and permits
➢ Assisting in obtaining incentives or exemptions under various Acts and other regulations.
➢ Coordinating relevant inter-governmental meetings for smooth investor facilitation.
➢ Investment facilitation and after care services
➢ Investment promotion through investor targeting, roadshows and conferences.
The purpose of this proposition is to enumerate what Kenya has done to promote investments
and invite you to take advantage of our investment opportunities that are of interest to you. We
also want to highlight that Kenya’s business climate is less regulated, and generally more
supportive of private enterprise.
During the years the Government has adopted and pursued a mixed economic development
strategy since independence. While the receptive roles of the public and private sectors have
evolved over time, the country has experienced remarkable continuity in its underlying
economic development strategy. However, there has been in the recent past a shift in
emphasis from public to private sector led investment. Market-based reforms have been
introduced and more incentives for both local and foreign private investments provided.
Kenya has also put in place a new development Blue print known as Kenya Vision 2030 that is
aimed in transforming Kenya into a newly industrialized middle income economy by the year
2030.
The vision is based on achieving an annual growth rate of ten percent annually from the year
2012. This growth target is aimed at six key sectors of our economy namely Tourism,
Manufacturing, Agriculture, ICT & Business Processing Outsourcing, Financial sector,
Wholesale and Retail.
There are several reasons why we would encourage your company to choose Kenya as an
investment destination.
➢ Firstly, Kenya is a convenient location for Hub operations. It has easy access to the rest of
African region through road railway, sea and air.
➢ Secondly, it also has easy access to the international markets, in Europe, Asia and the
USA.
➢ Thirdly there is adequate availability of business facilitation support services namely,
finance, insurance and transport. In addition Kenya has a highly developed and well
diversified human resource base.
➢ Vision 2030’s overarching vision is to make Kenya a globally competitive and prosperous
nation with a high quality of life by 2030.
During the first five years of the Medium Term Plan(MTP) major achievements especially in
the political pillar key among them being transformation of the Kenya’s political governance
across 5 strategic areas;
• Rule of Law – a new Constitution enacted in 2010.
• Electoral and political processes
• Democracy and public service delivery
• Transparency and accountability
• Security
➢ Last but not least, Kenya belongs to the East African Community Customs Union and the
Common Market for Eastern and Southern Africa (COMESA). This huge population of 400
million with 19 member states and an annual import bill of US$ 32 billion and export bill of US$
82 billion COMESA markets represent enormous opportunities for investments. Kenya is also
a signatory to the COMESA Free Trade Area (FTA), which enables duty free and quota free
movement of goods and services among fourteen member States namely, Burundi, Comoros,
Djibouti, Egypt, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Seychelles,
Zambia and Zimbabwe.
With a dynamic mix of modern industry and commerce along with a traditional Agriculture
sector supported by a vibrant growing private sector, it’s our believe that your company will be
an ideal investment partner for Kenya.
Government Policy on ICT Sector
The Government of Kenya has embarked on a series of initiatives to revitalize and transform
the economy into a modern market-oriented one. The aim is to improve the economic well
being of Kenyans by establishing Kenya, in the medium term, as the centre of industrial and
financial activities in the region.
The sector policies aim to define the framework within which telecommunications and postal
services will be provided. The overall Government objective for the sector is to optimize its
contribution to the development of the Kenyan economy as a whole by ensuring the availability
of efficient, reliable and affordable communication services throughout the country.
The primary motivation for growth in ICT has come from the private sector, with the role of
governments being that of a facilitator for creating an enabling environment. The challenges to
incorporate ICT in various aspects of economic development centers on five major areas are:
➢ Support to small and medium business
➢ Education
➢ attracting high tech industry
➢ Access to technology infrastructure
➢ Business – friendly government
Industry structure
One of the immediate goals of the telecommunications sector reform was to increase
telecommunication supply. The immediate result of the reform has been witnessed in high
growth in all areas that were open for competition. Low growth was noted in the areas without
competition notably in the provision of fixed line services. Competition no doubt released
resources from the private sector to serve the demand that could not be served under a
monopoly environment.
The Communication Commission of Kenya (CCK) reviewed and segmented the
telecommunication sector market into various service streams that are licensed separately as:
• Facility based public fixed telecommunication service
• Land mobile radio communication service (type 2 carrier)
• Fixed and mobile satellite services
• Facility based data communications networks and services
• Internet facilities and services and
• Value added services (VAS)
Reasons for investing in Kenya’s ICT sector
As a regional hub and a financial capital of the East and Central Africa region, Kenya’s
competitive advantage as an ICT investment destination is supported by various investor
friendly factors that include:
Regulatory framework
The establishment of Communications Commission of Kenya (CCK) as the regulatory body
provides an investor with a one-stop body for registration and facilitation thus reducing
bureaucracy. The regulation of the sector and granting of licenses remain the responsibility of
CCK.
Availability of a well-trained labor force
Kenya has a well-trained English speaking labor force with skilled personnel trained in ICT and
related fields. ICT and computer learning is currently offered at both secondary school level
and in universities and tertiary institutions in the country. Wages in Kenya are generally
reasonable and this extends to the ICT sector.
Kenya’s relation with the global information infrastructure
Kenya is an active member of the International Telecommunications Union, ITU. Kenya is also
a participant and a signatory to a number of international conventions and standards relating
to ICT.
Diversified experience
Kenyans are involved in virtually all areas of ICT. Whether in telecommunications, hardware
components, software, or Internet service provision, Kenya has a well-established group of
companies involved in all of these areas.
Access to the regional market
Kenya’s membership in regional trading bodies such as COMESA, African Union and the East
African community provides potential investors with a large potential market for their products
and services.
Investor friendly arrangements
The Kenya government can guarantee investor friendly arrangements such as:
➢ the Export Processing Zones (EPZ) program which offers attractive incentives to export-
oriented investors
➢ Kenya Investment Authority to promote all other investment in Kenya including in
Manufacturing under Bond (MUB) program
➢ the Tax Remission for Export Office (TREO), a program for intermittent imports for export
production
➢ generous investment and capital allowances
➢ Double taxation, bilateral investment and trade agreements
➢ The liberalization policy allowing for private sector participation in the ICT sector
➢ Reduced taxes on computer hardware and software (zero rating of import duties on PCs)
➢ Removal of licensing requirements on information and broadcasting services
Investment insurance
Kenya as a member of MIGA (Multilateral Investment Guarantee Agency), ATIA (Africa
Trade Insurance Agency) and ICSD (International Centre for Settlement of Investment
Disputes) provides potential investors with insurance for their investment in Kenya against a
wide range of non-commercial risks.
Strategic location
Located on the East African coast and having the port of Mombasa, Kenya is strategically
located for investors wanting to access the East and Central African market. Kenya is also a
regional hub for airlines allowing for easy access from and to any part of the world.
Good quality of life
Kenya hosts a number of international organizations and foreign embassies and provides very
good and up to standard living conditions for foreign investors willing to reside in Kenya. With
recognized international hotels, airports and entertainment centres.
Stable political climate
Kenya has been one of the most stable countries in Africa since independence. The country
has had three presidents with smooth transition taking place from one government to the next
and elections held regularly. This is also manifested in the number of international and
regional organizations headquartered in Nairobi including the United Nations.
Investment opportunities
Kenya provides investment opportunities in the ICT sector targeting both local and export
markets.
➢ Software development
➢ Internet services
➢ Software consultancy
➢ Hardware assembly and repairs e.t.c.
➢ Financing of the East Africa submarine cable
➢ Provision of ICT training for growing market
➢ Provision of telecommunication to the rural areas not yet reached by the
➢ Telecommunication network such as provision of internet facilities
➢ Provision of fixed telephone services as the Second National Operator (SNO)
Kenya business Directory
The Managing Director, Kenya Investment Authority (KenInvest) Kenya Railways Headquarters, Workshops Rd.OffHaile Selassie Ave. Block 'D' 4th Floor P. O. Box 55704-00200, Nairobi, Kenya Tel: 20 2221401-4 / Fax: 20 2243862 Web: www.investmentkenya.com Email: [email protected]
The Director General,
Vision 2030 Delivery Secretariat, Kenya Vision 2030 Delivery Secretariat KUSSCOCenter, 2nd Floor -Upper Hill P.O Box 52301-00200, Nairobi. Tel.+ 254(20)2722030 GSM: 254722904686 Web: www.vision2030.go.ke Email: [email protected]
Regional Office
E-mail: [email protected]
Kisumu Regional Office
E-mail: [email protected]
Mombasa Regional Office
E-mail: [email protected]
Jomo Kenyatta International Airport (JKIA) Liasion Office
E-mail: [email protected]
Adafric Communications Group
PO Box 4541-00200
Nairobi,Kenya
Tel: +254 20 828041
Email: [email protected]
Email: [email protected]
Web: www.adafric.com
Agricultural Society of Kenya
PO Box 30176-00100
Nairobi,Kenya
Tel: +254 20 3872875
Email: [email protected]
Web: www.ask.co.ke
American Chamber of Commerce
Kenya
Physical Address
Coca Cola Plaza,
Kilimanjaro Road,Upperhill.
Postal Address
P. O. Box 9746 – 00100
Nairobi, Kenya.
Tel: + 254 20 3253350, +254 733
880458
Fax: +254 20 3750448
Email: [email protected]
www.amcham.co.ke
Anti-Counterfeit Agency
P.O. Box 47771- 00100 Nairobi, Kenya. Tel: +254 (0)20 222 5124 31 Fax: +254 (0)20 222 5124 30 Email: [email protected] Web: www.aca.or.ke
Association of East Africa Women
Entrepreneurs
PO Box 12225-00400
Nairobi,Kenya
Tel: +254 725 559107
Association of Kenya Insurers
PO Box 45338-00100
Nairobi,Kenya
Tel: +254 20 2731330/ 2731331
Email: [email protected]
Email:
Web: www.akinsure.com
Athi River Mining Ltd
PO Box 41908-00100
Nairobi,Kenya
Tel: +254 22 2667675
Cell: +254 733 636456, 254 722
706708
Email: [email protected]
Email: [email protected]
Web: www.armafrica.com
BamburiCement Ltd
PO Box 30669-00100
Nairobi,Kenya
Tel: +254 20 2710510/ 2710487
Tel: +254 20 2710488
Cell: +254 20 2710489
Email: [email protected]
Email:
Web: www.bamburicement.com
Bell Atlantic Communications
PO Box 20747-00200
Nairobi,Kenya
Tel: +254 20 3750188/ 3750190
Cell: +254 20 3750171
Email:
Email: [email protected]
Web: www.bellatlantickenya.com
Bidco Oil Refineries Ltd
PO Box 239-01000
Nairobi,Kenya
Tel: +254 67 2821000/ 2821300
Cell: +254 733 619444
Email: [email protected]
Email: [email protected]
Email: [email protected]
British American Tobacco Ltd
PO Box 30000
Nairobi,Kenya
Tel: +254 20 533555/ 69042000
Email: [email protected],
Web: www.bat.com
Brookside Dairy Limited
PO Box 236
Nairobi,Kenya
Tel: +254 20 3542480/ 3542482
Cell: +254 735 222264/ 735 130000
Email: [email protected]
Email: [email protected]
Web: www.brookside.co.ke
Coca Cola East Africa Ltd
PO Box 30134-00200
Nairobi,Kenya
Tel: +254 20 2712271
Email: [email protected]
Web: www.thecoca-
colacompany.com
Centurion System
New RehemaHse, 2nd Flr, Rhapta Rd,
Nairobi
P.O.Box: 66031-00800 Westlands
Tel: +254-204440102
Kenya Bureau of Standards
(KEBS)
Head Office
Popo Road, Off Mombasa Road
Behind Bellevue cinema
P.O Box 54974 - 00200, Nairobi
Kenya
Tel: (+254 20), 6005634,(+254 20)
6948000
Fax: (+254 20) 6004031
Email: [email protected]
Confederation of Informal Sector
Organizations (SICO) EA.
PO Box 24244-00100
Nairobi,Kenya
Tel: +254 20 315157
Email: [email protected]
Corporate and Regulatory
Solutions
PO Box 24244-00100
Nairobi,Kenya
Tel: +254 724 255544
Email: [email protected]
Email: [email protected]
Crown Berger Kenya Ltd
PO Box 78848-00507
Nairobi,Kenya
Tel: +254 20 6533603
Email: [email protected]
Web: www.crownberger.co.ke
Deloitte Consulting Ltd
PO Box 40092-00100
Nairobi,Kenya
Tel: +254 20 4441305
Email: [email protected]
Email: [email protected]
East African Breweries Ltd
PO Box 40092-00100
Nairobi,Kenya
Tel: +254 20 8644000
Email: [email protected]
Web: www.eabl.com
East African Cables
PO Box 18243
Nairobi,Kenya
Tel: +254 20 5555132/ 555544
Email: [email protected]
Web: www.eacables.com
East African Grain Council
PO Box 218-00606
Nairobi,Kenya
Tel: +254 20 3745840
Email: [email protected]
Email: [email protected]
Web: www.eagc.org
East African Portland Cement
PO Box 20- 00204 Athi River
Off Namanga Road, Athi River
Tel: +254 20 3915000
Cell: +254 722 203076, 254 722
203078
Email: [email protected]
Email: [email protected]
Web: www.eastafricanportland.com
East African Tea Trade Association
Nairobi,Kenya
Tel: +254 41 2228460/ 2220093
Cell: +254 733 208700
Email: [email protected]
Web: www.eatta.com
Eastern & Southern Africa Daily
Association
PO Box 195-00606
Nairobi,Kenya
Tel: +254 20 3744065
Email: [email protected]
East Africa Tourism Platform
Phone :( +254) 20 8001000/3
Cell: (+254) 722 745645 (+254) 738
617499
Address: KWS complex, Langata rd.
Eastern Africa Association
7th Floor
Kenya Medical Association (KMA)
Centre
Mara Road
Nairobi,Kenya Upper Hill
P.O. Box 41272 – 00100
Nairobi
Kenya
Telephone: +254 20 2300166
ECOBANK Kenya Ltd
PO Box 49584-00100
Nairobi,Kenya
Tel: +254 20 2883000
Email: [email protected]
Web: www.ecobank.com
Elgon Kenya Ltd
PO Box 46826-00100
Nairobi,Kenya
Tel: +254 20 534410/
534810
Cell: +254 722 203089; 733 699992
Email: [email protected]
Web: www.elgonkenya.com
Equity Bank Limited
PO Box 75104-00200
Nairobi,Kenya
Tel: +254 20 2736620
Email: [email protected]
Web: www.equitybank.co.ke
Eveready East Africa
Ltd
PO Box 44765-00100
Nairobi,Kenya
Tel: +254 20 2216139
Email: [email protected]
Web: www.eveereadyindustries.com
Export Promotion Council (EPC)
PO Box 40247 00100
Nairobi,Kenya
Tel: +254 20 2228534-8,+254 722
205875/734 228534
Email: [email protected]
Web: www.epckenya.com
Federation of East African Freight Forwarders Association
PO Box 22694-00400 Nairobi,Kenya. The Crescent Rd,off Parklands Road opposite MP Shah Hospital Tel: +254 20 2684802 Tel: +254 738 150673 Email: [email protected] Website: www.feaffa.com
Federation of Kenya Employers (FKE)
PO Box 48311
Nairobi,Kenya
Federation of Women
Entrepreneurs Association
Nairobi,Kenya
Tel: +254 20 2721948/ 2721949
Email: [email protected]
Email: [email protected]
Web: www.fke-kenya.org
Tel: +254 20 3877739/ 3877802
Cell: +254 722 999120, 254 722
518880
Email: [email protected],
Fina Bank Kenya Limited.
P O Box 20613 - 00200, Nairobi.
Telephone: +254 703 084000.
Fax: +254 20 247164.
Firtsrand Bank
Address: P.O. Box 35909, 00200 –
Nairobi, Kenya
Telephone No.: +254 20 233 7927/
2337931
Fax No.: +254 20 2337931
Physical Address: 3rd Floor,
Geminia Plaza, Kilimanjaro Avenue,
Upper Hill, Nairobi.
GE East Africa Services Ltd
PO Box 41608-00100
Nairobi,Kenya
Tel: +254 20 2726222
Web: www.ge.com/ke
General Motors East Africa
Limited
PO Box 30527
Nairobi,Kenya
Tel: 0703 013 111
Cell:0713 013 333
Email: [email protected]
Glaxo Smith Kline
PO Box 78392-00507
Nairobi,Kenya
Tel: +254 20 6933200/ 534241
Email: [email protected]
Email: [email protected]
Web: www.gsk.com
GSI Kenya
PO Box 3243-00200
Nairobi,Kenya
Tel: +254 20 4452680/ 4452681
Email: [email protected]
Web: www.gsikenya.org
Hi-Plast Kenya Ltd
PO Box 299-00606
Nairobi,Kenya
Tel: +254 20 828552/ 652300
Email: [email protected]
Email: [email protected]
House of Dawda
PO Box 78277-00507
Nairobi,Kenya
Tel: +254 20 555167/ 6535070
Email: [email protected];
Housing Finance Company of Kenya
Limited
PO Box 30088-00100
Nairobi,Kenya
Tel: +254 20 3262000
Cell: +254 722 715256/ 722 137586
Email: [email protected]
Email: [email protected]
Web: www.housing.co.ke
IMED Healthcare Ltd
PO Box 268-00606
Nairobi,Kenya
Tel: +254 20 8009380/ 8009381
Cell: +254 722 525362
Email: [email protected]
Email: [email protected]
Web: www.imedhealthcare.com
Industrial Promotion Services
IPS Bldg, 11th Flr, Kimathi St, Nairobi
Central
P.O.Box: 30500-00100 Nairobi GPO
Tel: +254-202228026
Fax: +254-202214563
ISIS Africa Ltd
KEMU Towers, 6th Flr, University
Way, Nairobi Central
P.O.Box: 2049-00200 City Square
Tel: +254-202229335
Kapa Oil Refineries Ltd
Mombasa Road.
P. O. Box 18492, 00500 Nairobi, Kenya
Tel: +254 –20-6420000
Fax: +254 –20-6420642
Email: [email protected]
Kenchic Ltd
P.O Box 20052-00100 GP.O Nairobi
Exsan House
Enterprise Road
Tel: +254 (020) 3560102/3,
Fax: +254 (020) 3560101, 2060435
Email: [email protected]
Web: www.kenchic.com
Kenital Solar Ltd
P.O. Box 19764, 00202
Nairobi, Kenya
+254 (020) 2715 960, 2714 551-4
+254 (020) 2718 959
Kenya Airways
Head Office
Airport North Road, Embakasi
P.O. Box: 19002 – 00501 Nairobi ,
Kenya
Kenya Sugar Board
P.O Box 51500, 00200
Sukari Plaza, Upper Kabete,
Off Waiyaki way
Nairobi, Kenya
Tel: + 254-(0)20-6422000
Airtel: +254-0734-10-2000
Tel: +254 20 801 8750 - 3
Fax: +254 20 2021277
Hotline: 0707349908
Kenya Association of Manufacturers
(KAM)
PO Box 30225 - 00100 GPO Nairobi,
Kenya, East Africa.
86 Riverside Lane, Riverside off
Riverside drive, Next to Netherlands
Embassy,RiversideKenya
+254 020 2324817/8; 020 8155531/2;
020 2166657
254 20 2166658
Kenya Association of
Pharmaceutical Industry
Unipen Apartments, above Barclays
Bank, ArgwingsKodhek Rd, Kilimani
P.O.Box: 13743-00100 Nairobi GPO
Tel: +254-202733813
Kenya Commercial Bank
P.O.Box: 48400-00100 Nairobi GPO
Tel: +254-202241435
Fax: +254-202247691
Kenya Dairy Board
NSSF Bldg, 11th Flr, Bishops Rd,
Kilimani
P.O.Box: 30406-00100 Nairobi GPO
Fax: +254-202244064
Kenya Grange Vehicle Industries Ltd.
Kitui Rd, Off Kampala RdNairobi
P.O.Box: 17941-00500 Enterprise Rd
Tel: +254-203914000
Fax: +254-203914254
Kenya Investment Authority
Block DKenya Railways
Headquarters Premises, 4th Flr,
Workshop Rd, Nairobi Central
P.O.Box: 55704-00200 City Square
Tel: +254-202221401
Fax: +254-202243862
Kenya Marine Contractors
Mikanjuni Rd, Mombasa
P.O.Box: 93696-80118 Nyali
Kenya National Chamber of
Commerce and Industries
Ufanisi House, 1 & 2nd Flr, County
Rd, /Haile Selassie AveNairobi
Central
P.O.Box: 47024-00100 Nairobi GPO
Tel: +254-202402833
Fax: +254-20318740
Kenya Pipeline Company Ltd
HEAD OFFICE
Physical Address:
KenpipePlaza,Sekondi Road, Off
NanyukiRoad,IndustrialArea,Nairobi
Postal Address: P.O.Box 73442 - 00200,
Telephone: 020 260650-4
Mobile: 0722 207682/ 6768, 0734
333219/215/217
Fax: +254 020 530384/650436/8
Email: [email protected]
Web: www.kpc.co.ke
Kenya Ports Authority
Kipevu, Mombasa
P.O.Box: 95009-80100 Mombasa
Tel: +254-412113999
Kenya Power & Lighting Co. Ltd
P.O Box 30099-00100 GPO Nairobi
Kolobot Road, Parklands Nairobi
Tel: +254 (020) 3201000, 3754000,
3201680
Fax: +254 (020) 310336
Email: [email protected]
Kenya Private Sector Alliance
(KEPSA)
5th Floor, Shelter Afrique Building
Mamlaka Road
P.O. Box 3556-00100 GPO Nairobi
Tel : 254-20-2730371/2 and
2727883/936
Fax : 254-2-2730374
Cell : 0720-340949, 0735-999979
Email [email protected]
Kenya Railways Corporation
Workshop Rd, Off Haile Selassie Ave,
Nairobi
P.O.Box: 30121-00100 GPO Nairobi
Tel: +254-202221211
Fax: +254-202224156
Kenya Shell Limited
Laiboni Centre, Kilimani, Nairobi
P.O.Box: 44400-00100 Nairobi GPO
Tel: +254-203205555
Kenya Shippers Council
Crescent Hse, OppKabarnet Gardens,
Kabarnet Rd, Off NgongRdNairobi
Kenya Wildlife Services
P.O. Box 40241 - 00100
Nairobi Kenya
P.O.Box: 1291-00600 Ngara Rd
Mobile: 0733888540
Tel: +254 (20) 6000800,
+254 (20) 6002345
Fax: +254 (20) 6003792
Keroche Breweries Ltd
Email [email protected]
Telephone +254 050 50325
Nairobi,Kenya
Liaison Group Risk and Pension
Consultants
Liaison House, State House Avenue,
Nairobi,Kenya
P.O. Box 58013, 00200 City Sq.
Tel: +254 2 2710181 / 2710289 /
2710570
Fax: +254 20 2717137
Mail: [email protected]
Mabati Rolling Mills Ltd/ Safal Group
P.O Box 271-00204 Athi River Old
Mombasa Road
Tel: +254 (020) 6427000, 823758,
822758, (045) 22491
Fax: +254 (020) 6427500/1
Web: www.mabati.com
Mastermind Tobacco (K) Ltd.
P.O Box 68144-00200 City
Square,Nairobi
MTK Complex, Mombasa Road
Tel: +254 (020) 2798000, 3542400
Fax: +254 (020) 21522021, 2798220
Email:
Metsec Cables ltd
P.O Box 75963-00200 City Square
Nairobi Mombasa Road
Tel: +254 (020) 2743500, 2344777,
2132727
Email: [email protected]
Multichoice Kenya
Karuna Road, Westlands,
Nairobi
PO Box 60406 00200,
Nairobi
+254 711 066 000
+254 20 4236000
Email: [email protected]
Mumias Sugar Company
Head Office:
Nakumatt Holdings Ltd.
P.O Box 78355 - 00507 Nairobi
Mumias District, Western Province
P. O Box Private Bag, Mumias, Kenya
Telkom Landline: +254 56 641620,
641621
Telkom Wireless: +254 20 2037174/94,
20 8028344/5, 20 8006013
Fax: +254 56 641234
Nairobi Office:
Top Plaza, KindarumaRoad,OffNgong
Road.
P. O. Box: 57092 00200 City Square,
Nairobi, Kenya
Kenya
Head Office: Road,Off Enterprise
Road, Behind the Panari Sky
Centre,
Tel: +254 20 3599991 - 2/3/4
Fax: +254 20 650150 / 8012091
Email: [email protected]
Nation Media Group Ltd
P.O Box 49010-00100 GPO Nairobi
Nation Centre, Kimathi Street
Tel: +254 (020) 3288000, 221222
Fax: +254 (020) 213946
Email: [email protected]
Nestlé kenya Ltd
Consumer Services
Pate Road 3, Industrial Area
P.O. Box 30265 - 00100
Nairobi, Kenya
Email: [email protected]
Nestle Kenya Limited & Nestle Ear
Limited
Nestlé Equatorial African Region
Limited
The Atrium,
Chaka Road
P.O. Box 50813 – 00200
Nairobi, Kenya
Office: +254 20 4984 000
Cell: +254 711 043 200/246
E-mail: [email protected]
New Kenya Co-Operative Creameries
Ltd
P.O Box 30131 - 00100 Nairobi
Creamery House, Dakar Road,
IndustrialArea
Tel: +254 (020) 3980000
Fax: +254 (020) 558705
Email: [email protected]
Web: www.newkcc.co.ke
Nokia International OY
Nairobi Business Park, Ondiek Hwy,
Karen,
Box 29-00502, Nairobi, Kenya
Phone+254203862247
Pricewaterhousecooper Ltd Safaricom ltd
PwC Tower, Waiyaki Way/Chiromo
Road, Westlands
Nairobi, Kenya
Tel: +254 (20) 285 5000
Fax: +254 (20) 285 5001
P.O Box 46350-00100 GPO Nairobi
Safaricom House, Waiyaki Way
Tel: +254 (020) (722) 000000
Fax: +254 (020) 4273897
Sameer Africa Ltd
Mombasa/Enterprise Road Junction,
P.O. Box 30429 – 00100,
Nairobi, Kenya.
Telephone lines +254 020 3962000
Fax line+254 020 3962888, 533440
Email address:[email protected]
Sarova Hotels
Kenyatta Ave, Nairobi
P.O.Box: 72493-00200 City Square
Tel: +254-202716688
Fax: +254-202715566
Mobile: +254-722200945 +254-
722200946
SGS Kenya Ltd
Victoria TwsBldg, 2nd Flr,Upperhill
Avenue, Upperhill, Nairobi
P.O.Box: 72118-00200 City Square
Tel: +254-202733699
Spectre International Ltd
P.O Box 2131-40100 Kisumu Off-
Kisumu BusiaRoad Otonglo
Tel: +254 (057) 2022135, 530014,
2025474-7
Fax: +254 (057) 20221875
Email: [email protected]
Web:
www.spectreinternational.co.ke
SOLS Inclination/ Exhibition & Events
Organizers
Ann Wambaa Avenue, Jamhuri Park
P.O. BOX 11206 Code 00400 Nairobi,
Kenya.
tel: (254) 020 204 3016, 020 230 0592/3,
387 2828, 386 4914
fax: (254) 20 387 2217
email: [email protected]
Standard Chartered Bank
P.O. Box 30003 00100 – GPO
Nairobi
Standard Chartered@Chiromo, 48
Westlands Rd, Nairobi
Tel: +254-203293000
Standard Group Ltd
P.O Box 30080-00100 GPO Nairobi
Toyota Tsusho Africa (PTY) Ltd
Nairobi Office:
Mombasa Road
Tel: +254 (020) 3222111
Fax: +254 (020) 229218
Email: [email protected]
Web: www.standardmedia.co.ke
Uhuru Highway
Lusaka Road
Kenya
Tel: +254 20 650478
Fax: +254 20 650481
Kenya electricity transmission
company (KETRACO)
Capitol Hill Square, 2nd Flr, Chyulu Rd,
Upperhill, Nairobi
P.O.Box: 34942-00100 GPO Nairobi
Tel: +254-204956000
Fax: +254-204956010
Kenya Healthcare Federation
KMA CENTRE, UPPER HILL
7TH FLOOR,MARA ROAD
P. O. BOX 37929-00100
Nairobi,Kenya
+254 (0)20 4931117
+254 (0)724 294 238/ +254 (0)722 513
987
http://www.khf.co.ke
Unilever Kenya Ltd
http://www.unilever-esa.com
Commercial St, Industrial Area,
Nairobi
Tel: +254-206922000
Kenya Transport Association
Sea View Plaza, Mama Ngina Drive
Mombasa,Kenya
P.O BOX 88502-80100 Kenya
Email: [email protected]
Tel: 041 2312015
http://www.kta.co.ke
Kenya Wine Agencies
Enterprise Rd, Nairobi
P.O.Box: 40550-00100 Nairobi,GPO
Tel: +254-20652045
Fax: +254-20652519
UGANDA
Guide to Investing in Uganda
Uganda enjoys a unique location at the heart of Sub-Saharan Africa within the East African
region and lies astride the equator. The country is bordered by Sudan in the north, Kenya in
the east, the United Republic of Tanzania in the south, Rwanda in the southwest and the
Democratic Republic of Congo in the west. This land linked position, gives the country a
strategic commanding base to be a regional hub for the numerous trade and investment
opportunities. Uganda has a wealth of investment prospects, especially in agriculture,
fisheries, forestry, manufacturing and IT.
Indeed, as one of the leading producers of coffee and bananas in the world, and a major
producer of tea, cotton, tobacco, cereals, oilseeds, fresh and preserved fruit, vegetables and
nuts, essential oils, flowers and sericulture (silk), agriculture is one of the sectors with a lot of
offer.
Another viable sector is fisheries, as it is the second-highest foreign exchange earner for
Uganda, with export revenues amounting to an estimated US$220 million in the year 2009.
Large fresh water expanses are home to a wide variety of fish products and investment
opportunities are available for fish farming and the establishment of more fish processing
factories on lakes other than Lake Victoria.
Forestry also is ripe for investment. With over 4.9 million hectares of rich forest vegetation,
Uganda possesses abundant potential in areas like timber processing for export, manufacture
of high quality furniture/wood products and various packaging materials. There are also
opportunities in forestation and reforestation, especially of medicinal trees and plants, and soft
wood plantations for timber, pulp and poles.
Uganda’s manufacturing output has also been expanding by more than 10% annually over the
last eight years. Opportunities exist in virtually all areas, ranging from beverages, leather,
tobacco based processing, paper, textiles and garments, pharmaceuticals, fabrication,
ceramics, glass, fertilizers, plastic/PVC, assembly of electronic goods, hi-tech and medical
products.
Lastly, Uganda’s Information and Communication Technology (ICT) sector is one of the most
vibrant within the region, as good legal and regulatory frameworks exist. The newly developed
and highly qualitative ICT infrastructure is also ready to accommodate more future
investments. Opportunities in ICT include establishment of information and communication
infrastructure and broadband services, business process outsourcing services, computer and
related equipment hardware assembly, high level ICT training facilities on international
standards, ICT business services incubation, hardware repair training facilities, software
development niches, setting up information technology virtual zones (ITVZ), and setting up
Internet service provider facilities in other parts of Uganda.
Reasons to invest in Uganda
1. Predictable Environment
Uganda has been able to achieve macro-economic stability when clouds of uncertainty rocked
many regions of the world.
- Stable economic growth averaging 5.1% after 2012/13
- Maintained a competitive real exchange rate that supports export growth
2. Fully Liberalized Economy
- All sectors liberalized for investment
- Free inflow and outflow of capital
- 100% foreign ownership of investment permitted
- Ranked the 8th freest economy out of the 46 Sub-Saharan Africa countries by the 2013
Index of Economic Freedom.
3. Market Access
- Uganda is a member of the Common Market for Eastern and Southern African states
(COMESA), a region with a market of about 400 million people in 19 countries.
- Uganda is a member of the East African Community (EAC) comprising Burundi, Kenya,
Rwanda, Uganda, and Tanzania with a population of over 140 million people.
- Duty and quota free access into China (quota free access for over 650 products), the USA
(AGOA), Generalized System of Preferences (GSP) scheme and EU (EBA) markets.
4. Strong natural Resource Base
- Rich endowment of rainfall, soils, and favourable temperature range. A number of crops are
grown organically
- Unexploited mineral deposits and tourism opportunities. Confirmed deposits include
Phosphate, Gold, Zinc, Wolfram, Petroleum, Diamond, Vermiculite, Silica etc
5. Government Commitment to Private Sector
- Government and private sector dialogue in policy formulation through business and
investment associations e.g. Private Sector Foundation Uganda, Uganda Manufacturers
Association, Uganda National Chamber of Commerce and Industry, among others
- Continuous improvement in provision of infrastructure and other social services
6. Trainable Labour
- Uganda presently produces over 15,000 University graduates per year
- Quality of labour is one of the biggest attractions
- The National Development Plan focuses on skilling the labour force to match the needs and
opportunities for investment in the country
7. Security of Investment
- Guaranteed under the Constitution and the Investment Code 1991
- Uganda is a signatory to major international investment related institutions such as:
- Multi lateral Investment Guarantee Agency (MIGA)
- Overseas Private Investment Corporation (OPIC) of USA
- Convention on the Recognition and Enforcement of Foreign Arbitral Award (CREFAA)
- Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
- International Centre for settlement of Investment Disputes (ICSID), Agreement on Trade
Related Investment Measures (TRIMS), General Agreement of Trade in Services (GATS), and
Agreement on Trade related Aspects of Intellectual Property Rights (TRIPS)
1. Investment Incentives
Incentives Rate Comments
Import
Based
Incentives
The following sectors have exemptions
from import duty: Agriculture,
Tourism, Health, Education,
Renewable Energy; Mining, Oil and
Gas.
Plant and Machinery - Duty free at
importation (for most directly used in
production), VAT deferment (granted to
VAT registered persons), Withholding
Tax exemption for some sectors like
agriculture
First Arrival Privileges
These are in the form of duty
exemptions for personal effects and a
motor vehicle (previously owned for at
least 12 months) to returning Ugandan
Investors
For details of the listed incentives
please log onto the Uganda Revenue
Authority:www.ura.go.ug
Export
Based
Incentives
All exports are tax exempt except raw
hides and skins
Manufacturing Under Bond taxes)
Duty exemption on plant and machinery
and other inputs
Stamp duty exemption
Duty draw back – a refund of all or part
of any duty paid on materials, inputs
imported to produce for export
Withholding tax exemptions on plant &
machinery, scholastic materials, human
& animal drugs and raw materials
Investment
Capital
Allowances
Deductible
Annual
Allowances
50%
75%
25%
20%
Initial Allowance on plant and
machinery for industries located in
Kampala, Entebbe, Namanve, Jinja and
Njeru
Initial Allowance on plant and
machinery for industries located
(depreciable
assets)
5%
40%
35%
30%
20%
elsewhere in Uganda
Start up cost on actual expenditure
incurred over the first 4 years in 4 equal
installments
Initial Allowance on hotel, hospitals and
Industrial
buildings Depreciation rate
for Hotels, IndustrialBuildings and
Hospitals
Computers and data handling
equipment
Automobiles; buses and minibuses
seating capacity of less than 30
passengers; goods vehicles with a load
capacity of less than 7 tones;
construction and earth moving
equipment
Buses; goods vehicles specialized
trucks; tractors; trailers and trailer-
mounted containers; plant and
machinery used in farming,
manufacturing or mining operations
Comprehensive- list on www.ura.go.ug
Rails locomotives and water
transportation equipment and vessels
Comprehensive- list on www.ura.go.ug
Special
Deductions
100%
2%
On scientific research capital
expenditures
On costs of training /tertiary education
of a citizen or permanent resident of
Uganda
On Mineral exploration expenses of
capital nature incurred
Of income tax payable if 5% of their
employees on full time basis are
persons with disabilities
Depreciation allowance granted on
expenditure incurred on farm works
Deduction for bad debt in
Type of Tax Rate Comments
Income Tax
Rate 30%
However, corporate tax for mining
companies varies from 25% to 45%
Capital Gains
Tax Rate 30%
Capital gains are taxable that are
delivered from the disposal of assets held
by a company
Dividends and
Interest 15%
Tax is exempted in case a resident
recipient company controls 25% or more of
the voting power of the resident company
Personal Tax 0% - Income in excess of Uganda shillings 4.92
million is taxed at 30%. For oil and gas
30% sector resident contractors and sub-
contractors are taxed at 30%
Value-added
Tax (VAT) 18%
Supply of goods used in Agriculture Health
and Education is exempted from value
added tax
Value-added
Tax (VAT) 0%
Good or services are exported from
Uganda
Educational materials &printing
Supply of seeds fertilizers; machinery, tools
and implements suitable for use only in
agriculture.
Supply of leased aircraft, their parts
maintenance equipment.
Supply and installation Sanitary useable
mini-infrastructures.
Comprehensive- list on www.ura.go.ug
Social Security
Contributions 10%
This contribution goes to National Social
Security fund
Royalties 15% The royalties may be reduced under a tax
treaty
Capital duty 0.5% Charged for increase in nominal capital
and incorporation of the company
2. Business Registration and Licensing
Uganda Investment Authority (UIA) is the first point of contact for any potential investor for:
First hand information on investment opportunities in Uganda;
Issuance of an Investment License;
Assistance in securing other licenses and secondary approvals for investors;
Accessing help to implement investment project ideas through assistance in locating relevant
project support services;
Assistance in the acquisition of Agricultural and Industrial land;
Help to obtain work permits and special passes for investors, their expatriate staff as well as
their families;
Assistance in organizing itineraries for visiting foreign business missions in the country;
Contacts of potential joint venture partners and funding for the expansion of existing projects.
Registering your Investment in Uganda
Business registration and licensing can be done through the One-Stop-Centre (OSC) at the
UIA. The OSC hosts: the Uganda Registration Services Bureau (URSB) which registers
companies and issues them with a Certificate of Incorporation; the Uganda Revenue Authority
(URA) which registers Tax Identification Numbers (TINs) and offers tax advice; the Directorate
of Citizenship and Immigration Control which issues work permits among other immigration
documents; the Lands Registry which assists in the verification of land ownership; and the
National Environmental Management Authority (NEMA) which ensures that investments are
compliant with the laws that govern environment management. Accessing all these services
under same roof saves the investor both time and money to have their projects licensed and
implemented expeditiously.
Company Registration
Company registration is the first step to formalizing a business in Uganda. The applicable
forms and information on registration fees for the formation of a company charged by the
URSB can be downloaded from www.ursb.go.ug
Investment license
The normal processing time for an investment license is 2 days. However, if all the paperwork
is in order and there is no need for regulatory approvals, the license can be issued in 24 hours.
Investors can also apply for the investment license on-line if they have all their documents in
electronic form.
Detailed requirements are available from www.ugandainvest.go.ug
Secondary Licenses
UIA assists the potential investor in the acquisition of secondary licenses. Investments in
Energy generation, Mining, Banking, Air transport, Pharmaceuticals production, Education and
Health are regulated by the sector Ministries, Departments of Agencies. Regulatory
approvals/permits/or licenses must be acquired before applying for the Investment License.
Taxation
Applications for your Tax Identification Number (TIN) can be done on-line. A tax official in the
OSC is at hand to assist and offer tax advice as well. The guidelines can be accessed via the
URA website www.ura.go.ug
Aftercare services
UIA assists a licensed investor to obtain suitable (and serviced) industrial and agricultural land,
as well as work permits for expatriate staff. Utilities like telephone, electricity and water can
easily be secured from the relevant providers.
Investment Threshold
Foreign investors require a minimum of US$100,000 in planned investment. The license is
very crucial to foreign investors as it is the instrument that legalizes their investment in
Uganda.
Local investors, require a minimum investment of US$50,000. Local investors may proceed
with their investment without licensing with the Uganda Investment Authority; however a holder
of the investment license is easily distinguished from a trader for tax purposes.
Investment Opportunities
Agribusiness
Uganda is among the leading producers of coffee and bananas. It is also a major producer of
tea, cotton (including organic cotton), tobacco, cereals, oilseeds (simsim, soya, sunflower,
etc), fresh and preserved fruit,vegetables and nuts, essential oils, orchids, flowers and
sericulture (silk). Opportunitiesinclude commercial farming and value addition, as well as the
manufacture of inputs (fertilizers,pesticides etc.), supply of agriculturalmachinery and the
establishment of cold storage facilities as well as the production of packing materials.
PublicPrivate Partnership investment opportunitiesexist in thecommercial production of cereals
(maize and rice) and beans.
Fisheries
The sector is the second highest foreign exchange earner for Uganda with export revenues
amounting to US$ 136.22 million in the year 2011. Large fresh water expanses are home to a
wide variety of fish products. Opportunities are available for fish farming and establishment of
more fish processing factories on other lakes other than Lake Victoria. Uganda’s fish is a
delicacy in Europe and has recently penetrated the US market. The Government of Uganda is
encouraging fish farming (pond and cage) from which fish can be produced for food and the
skin processed to leather. The manufacture of fish feeds and fishing gear are other
opportunities for investment.
Forestry
With over 4.9 million hectares of rich forest vegetation, Uganda possesses abundant potential
in areas like timber processing for export, manufacture of high quality furniture/wood products
and various packaging materials. There are also Aopportunities in forestation and reforestation
especially of medicinal trees and plants, soft wood plantations for timber, pulp & poles.
Tourism
The distinctive attraction of Uganda as a tourist destination arises from the variety of its game
stock and its unspoiled scenic beauty. It is estimated that 50% of the world’s population of
mountain gorillas lives in Uganda. Within a relatively limited space of just over 240,000
square kilometres, Uganda offers an interesting contrast ranging from the wide East African
plains and expansive savanna grasslands to the impenetrable, mountain rain forests and snow
peaked mountains in the south western parts of the country. Lake Victoria, which is shared
with Tanzania and Kenya, is the 2nd largest fresh water lake in the world, while LakeBunyonyi
in south western Uganda is the 3rd deepest in the world! The NileRiver (longest in the world),
with its beautiful waterfalls and unique water scenery has its source in Uganda.
Uganda is home to 11% of the world’s bird’s species (1060 species) which offers a wide range
of bird species for viewing in addition to numerous sporting opportunities such as mountain
climbing and water sports including white water rafting. The opportunities in tourism range
from constructing high quality accommodation facilities, operating tours and travel circuits to
the development of specialized eco and community tourism.
Public Private Partnership (PPP) projects include:
1. The construction of up to mid market accommodation within QueenElizabethNational Park
and other conservation areas
2. The development and management of 20-25 bed facilities in the protected areas
3. The construction of a Wildlife Forest lodge comprising 20 spacious cottages to provide
additional accommodation for mi-range travelers within the tourist areas of Mabira and
Budongo Forests, as well as the Queen Elizabeth and Murchison Falls National Parks.
The establishment of internationally rated tourism and hospitability training centres to cater for
the increasing number of tourist visitors is another opportunity.
Mining
New geodata provides for opportunity in growth in mining. 80% of the country has been
surveyed and Uganda has large under-exploited mineral deposits of gold, oil, high grade tin,
tungsten/wolfram, salt, beryllium, cobalt, kaolin, iron-ore, glass sand, vermiculite , phosphates
(fertilizer), Uranium and rare earth elements. There are also significant quantities of clay and
gypsum.
Gold occurs in many areas of the country, including Busia in the east, Buhweju and Kigezi in
the west, Mubende – Kiboga in the central region and significant occurrences in Karamoja in
the north east.
Uganda provides special incentives to the mining sector with some capital expenditures being
written off in full.
Oil and Gas
A discovery of petroleum wells in the Lake Albert region has enhanced the sector’s joie de
vivre.
According to the Petroleum Exploration and Production Department, 21 oil and/or gas
discoveries have been made in the country to date. 87 oil wells have been drilled and there
are 21 fields in existence. Currently over 3.5 billion barrels of STOIIP have been discovered
with over 1.2 billion barrels of oil equivalent estimated as recoverable. However, appraisal of
the discoveries is still ongoing. Less than 40% of the AlbertineGraben has been evaluated.
Investment opportunities available in upstream activities include:
Joint Licensing for petroleum exploration and production
Ventures and farm-in arrangements in existing licenses
Heated crude oil pipelines to refinery
Environmental services, given that most activities are located in ecologically sensitive
areas. Waste treatment and disposal for both solids and liquids is critical
Service provision and contracts in the fields of Engineering, Procurement, Construction,
Environmental consultancy, drilling services, down hole services etc.
Other opportunities are detailed in the cylindrical illustration are areas where domestic
investment can be the major contributor
Information Communication Technology
Uganda’s Information and Communication Technology (ICT) sector is one of the most vibrant
within the region and fastest growing sector in the economy. This vibrancy hinges largely on
the good legal and regulatory frameworks. The supportive investment climate therein has
exposed numerous opportunities in ICT innovation services leading to maximum utilization of
the existing youthful human resource base as quite suitable for the ICT work. The newly
developed and highly qualitative ICT infrastructure is also ready to accommodate more future
investments. Uganda is now connected to three marine fibre optic cables.
Printing and Publishing
In the printing and publishing sub-sector, opportunities exist for the printing of textbooks for
schools. Currently, imports supply over 90% of Uganda’s textbook requirement (estimated at
over U$7 million a year). Investment opportunities therefore exist in the various type of printing
including flexography, screen printing, off-set printing and digital printing. Other opportunities
include electronic printing magnetograph, thermo graphic printing, ion deposition printing and
direct charge deposition printing
Education
Uganda runs high quality training programmes at a relatively cheaper cost than other
education destinations and is dedicated to making investment in the country’s knowledge hub
a unique experience and a win-win situation for both investors and students. Investment
opportunities therefore exist in Uganda for setting up of independent private universities,
branch universities and offshore campuses. In order to create the relevant skills needed in
emerging industries and technology, the Government of Uganda has emphasized the need for
technical & vocational training in the 2040 national vision. There is a need therefore for such
training centres that will skill Uganda’s human resource. Other areas of investment include,
technology-based education, distance education and student financing.
Manufacturing
Uganda’s manufacturing sector presents various opportunities in virtually all areas ranging
from beverages, leather, tobacco based processing, paper, textiles and garments,
pharmaceuticals, fabrication, ceramics, glass, fertilizers, plastic / PVC, assembly of electronic
goods, hi-tech and medical products.
Infrastructure
Although significant efforts have been made to develop and rehabilitate the existing physical
and non-physical infrastructure, potential investment opportunities still abound. In particular,
transport & logistics and energy sectors still require further investment.
With less than 10% of the mainstream capacity of 2,700 megawatts of power exploited,
Uganda has the potential to be a major supplier of hydro electric power to the entire East
African region.
About 90% of Uganda’s total cargo freight is transported by road leading to high costs in
maintenance, wear and tear as well as non tariff barriers and time. Only 20% of the rail
network is functional. Investment opportunities in transport infrastructure include some public
private partnership projects in the development of the KampalaJinja Toll Road, Bus Rapid
Transit, Uganda Railway Projects, Uganda/Tanzania Railway Project, and refurbishment and
expansion of Entebbe International Airport and the Upcountry Airports.
The average costs of investment for the EntebbeInternationalAirport are: Domestic Terminal
($8M), New Cargo Centre ($60M), Maintenance Centre ($30M), and Multi-Storey Car Park
($5M). The upcountry airport upgrades are estimated to cost: Gulu ($61M), Kasese ($41M),
and Pakuba (Oil Fields - $10M).
Financial Services
The financial services sector is liberalized for business. The recent years have seen an
expansion in the branch network countrywide. In 2000 there were 129 branches in the country
and at the end of last year (2012) the branches had risen to 495. The existing banks are
spreading outside the capital city of Kampala; there are now 270 bank branches outside
Kampala. However, opportunities for investment still exist for international multinational
banking groups particularly promoting new or innovative financial products (i.e. Mortgage
finance, venture capital, merchant banking, leasing finance and agricultural banking,
considering Uganda’s agro based economy). Micro finance saving institutions is the most
relevant option for operating in rural areas. Insurance, in particular, is still a relatively young
sector and offers several opportunities for investment. The liberal economic environment also
encourages the growth and development of electronic banking and innovative solutions to
transactions like mobile money transfers. There are currently around 9 million registered
mobile money customers in the country (about ¼ of the country’s population).
Infrastructure
Investment Projects at the EntebbeInternationalAirport
Project Description Public Private Partnerships
Expected Cost
Modernize the aviation industry to equate international standards MakeEntebbeInternationalAirport a befitting aviation hug in East and Central Africa .
Contact Swaziland Investment Promotion Agency
Total Amount of
Project
The Civil Aviation Authority of Uganda is seeking for investors in
the following infrastructure projects:
Design and construction of AirportCity aimed at the promotion of business at the airport (USD 1.5 billion) Investment in the infrastructure of the 13 up country aerodromes for the promotion of tourism, oil, and other sectors across Uganda (USD 1 billion) Development of a ferry port at Entebbe and expansion of the aviation fuel storage tank where the Fuel Farm will be located (USD 50 million) Design and Construction of Cargo Centre / FreeTradePort where cargo trade can take place (USD 80 million).
Expected Cost USD 2.63 billion
Actions Required or
Implementation
Arrangements
Civil Aviation Authority (CAA) is a corporate body
established under
the CAA Act No. 3 of 1994, CAP 354. The cardinal
objective of the Authority
is to promote the safe, regular, secure, and efficient use
and development
of civil aviation inside and outside Uganda. Any prospective
investor would have to go through a transparent bidding
process
and any implementation agreements would be signed with
CAA.
Status
All outlined projects are Greenfield Investments apart
from No. 2 regarding
up country aerodromes, which is an expansion. Details of
the
Investment Opportunities are available on request.
Contact
Mr. J. Bulindi Director Airports and Aviation Security Tel: +256 312 353000/ +256 414 353000 Fax: +256 414 320571 Email: [email protected] Website: www.caa.co.ug
Energy / Acquisition, Installation and Services of Micro Hydro Power Dams
Sub-Sector Electricity Generation
Project Description
Private investment in hydro power energy in 26 sites in 15 districts The project aims at constructing micro Hydro Power dams and a number of Pico hydro power schemes to address the acute energy deficit in rural areas as well as unreliable grid power in small towns that are off-grid Each micro hydro power dam will be an isolated community grid Current installed hydro capacity does not meet Uganda’s electricity demand, therefore having more hydro sites exploited will partly address deficit and promote rural electrification, thus contributing to the eradication of poverty.
Expected Cost USD 3.4 million
Status Greenfield private investment
Contact
Eng. Dr. Frank Ssebowa
Chief Executive Officer
Electricity Regulatory Authority
ERA House, Plot 15, Shimoni Road
Nakasero, KAMPALA
Tel: +256 414 341646 / 341852
Fax: +256 414 641624
Email: [email protected]
Website: www.era.or.ug
Infrastructure (Local and International Bidding)
Sub-Sector Transport Projects – Roads, Air, Rail, and Water
Project Description
Government contract (Public and transparent Bidding) Roads Transport
Alternative route to Entebbe town and InternationalAirport (40 Km). The project description and scope (pds) comprises feasibility study, detailed engineering design, and construction – USD 50 million Fly over between Jinja Rd and Kibuye (4.7 Km). The pds comprises as detailed above – USD 75 million Kibuye-Busega-Mpigi Road (32 Km). The pds comprises the review of detailed studies and construction works for dueling the road and construction consultancy supervision services – USD 128 million Supply of construction equipment for district roads. The pds comprises supply of equipment, after sales services, managing workshops and training managers and operators – USD 80 million. The government of Uganda will meet the cost of constructing the mechanical workshops.Rail Transport: Reactivation of Kampala Kasese line (333 Km). The pds comprises feasibility study, detailed engineering design and construction – USD 350 million.
Water Transport: Redevelopment of PortBellPort. The pds comprises feasibility study, detailed engineering design, and construction – USD 420 million.
Expected Cost Total estimated cost of projects is about USD 1.1 billion
Actions Required or
Implementation
Arrangements
International and national tendering of bids according to the public procurement and disposal of Assets Law
Status
Roads – Greenfield Investments and Supplies Railway – Reactivations Water Transport – Redevelopment of Port
Contact
The permanent Secretary
Ministry of Works and Transport
PO Box 7174
Kampala, Uganda
Tel : +256 414 235973 / 259136
Dir : +256 414 320657 Fax : +256 414 236369
Email : [email protected]
Website : www.miniworks.go.ug
General Business contacts:
Uganda Investment Authority
Tel: +256 414 301000
http://www.ugandainvest.go.ug
Uganda Registration Services Bureau
Tel: +256 414 2235219 / 235915
Email:[email protected]
http://www.ursb.go.ug
Uganda Revenue Authority
Tel: +256 417 444602 – 4, 417 444620
http:// www.ura.go.ug
The Investment Centre
Plot 22B Lumumba Avenue,
TWED Plaza
P.O. Box 7418 Kampala, Uganda
Tel: +256-414-301000
E-mail: [email protected]
Uganda Tourist Board
Tel: +256 414 342196/7
Email:[email protected]
http://www.visituganda.com
Uganda Wildlife Authority
Tel: +256 414 3555000, 312 355000
Email: [email protected]
http://www.ugandawildlife.org
Directorate of Citizenship and Immigration Control
Tel: +256 414 595945
http://www.immigration.go.ug
Uganda National Bureau of Standards
Tel: +256 414 505995, 222369
http://www.unbs.go.ug
Bank of Uganda
Tel: +256 414 259090, 312 392000
http://www.bou.or.ug
Uganda National Bureau of Statistics
Tel: +256 414 706000
http://www.ubos.org
Uganda Export Promotion Board
Tel: +256 414 230250, 230233
http://www.ugandaexportsonline.com
National Environment Management Authority
Email:[email protected]
http://www.nema-ug.org
Department of Geological Survey and Mines, Uganda
Tel: +245 414 320656, 312 262902
Email:[email protected]
http://www.uganda-mining.go.ug
Petroleum Exploration and Production Department
Tel: +256 414 320714
Email:[email protected]
http://www.petroleum.go.ug
Uganda Manufacturers Association
Tel: +256 414 221034, 287615/2
E-mail:[email protected]
http://www.uma.or.ug
Private Sector Foundation Uganda
Tel: +256 312 263850, 261850
Email:[email protected]
http://www.psfuganda.com
Uganda National Chamber of Commerce and Industry
Tel: +256 753 503035
Email:[email protected]
http://www.chamberuganda.com
Uganda Chamber of Mines and Petroluem
Tel: +256 312 516695
Email:[email protected]
http://www.ucmp.ug
ROMANIA
Business in Romania
The Romanian State:
Romania is a sovereign and independent, unitary and indivisible nation state;
Form of government: republic;
Romania is a democratic and social state ruled by the law;
The state is organized according to the principle of separation and balance of the powers – the
Legislative, the Executive and the Judiciary – in the framework of constitutional democracy,
guaranteed by political pluralism.
The President of Romania represents the Romanian state and guarantees the national independence, unity and territorial integrity of the country (5-year term).
The Legislative: The Parliament of Romania (4-year term) has two houses: the Senate and the Chamber of Deputies.
The Executive: The Government of Romania, headed by the Prime Minister, entrusted by the President of Romania with forming the Cabinet and with the Governance Program endorsed by Parliament by a vote of confidence.
The Judiciary: independence guaranteed by the Superior Council of the Magistracy; judges are irremovable.
Romania is a member of the UN (1955), of NATO (2004) and of the European Union (2007).
Economic profile
With a population of 22 million, Romania is Central Europe’s second largest market. Romania boasts several real advantages:
- an excellent location at the crossroads of the main trade routes between western Europe and
Asia, between South Europe (the Mediterranean) and northern Europe;
- important river and sea navigation facilities (Constanta is the biggest port on the Black Sea;
proximity to the Danube – Rhine – Main canal connecting the Black Sea to the North Sea);
- skilledlabour, including highly trained specialists in the fields of technology, IT and
engineering;
- plenty of natural resources (oil, gas etc.) and vast fertile croplands;
a huge tourism potential;
- diversified industrial structure;
- legislationfavouring foreign investment, based on free and nondiscriminatory access to the
market.
In 1990 Romania undertook an economic reform process that accompanied and complemented rapprochement or, in certain cases, integration in international institutions and organizations – the European Economic Community (which became the European Union / EU) and NATO, but then also the International Monetary Fund (IMF), the World Bank, the World Trade Organization / WTO (of which Romania is a founding member) or the Organization for Economic Cooperation and Development (OECD).
The 90s were marked by economic downturn, worse in the first transition years (1990-1992), when the economy shrank by 27%, and over 1997-1999 (a decline of over 12%). This trend, accompanied by quasi-permanent inflation and a significant rise in unemployment, evolved on the backdrop of measures geared at decentralization, privatization and, notably after 1997, accelerated economic restructuring.
The interval 2000-2008 brought a marked economic recovery, with an annual growth rate above 6%, higher over 2003-2008 when Romania posted a sizable rise in consumption and productive investment.
Improvement of the business environment, the effects of the flat taxation rate and foreign partners’ positive attitude towards Romania in the context of accession to NATO and the EU helped attract a record volume of foreign investment.
Foreign trade grew sensibly in point of both quality and quantity. The value of Romania’s trade exchanges has grown significantly, notably in recent years, when annual growth rates higher than 10% have been recorded. 2008 saw a peak in foreign trade which aggregated approx. EUR 90 billion (of which approx. 34 billion in exports). Romania’s main trade partners in the last decade have been Germany, Italy, France, Turkey, Hungary, the Netherlands, the UK, and Austria.
In point of quality, the structure of commercial exchanges has been marked by major changes, Romania exporting more and more value-added products and services, that mirroring the economic restructuring, the capacity of the national economy to supply goods and services and a better utilization of facilities of access to foreign markets. Currently, the EU accounts for over 70% of Romania’s foreign trade, which indicates the level of economic integration in the European single market.
As the world financial crisis that started in autumn 2008 caused commercial and credit flows to drop, 2009 and 2010 were years of economic downturn. Although the Romanian banking system is solid and the economy grew for nearly one decade, Romania has still been affected by the global economic and financial crisis, posting drops in GDP of 7% in 2009 and an estimated 2% in 2010, concurrently with an expanding budget deficit and unemployment. Foreign direct investment, too, declined in 2009, standing at about EUR 4.5-5 billion (roughly half the figure of the previous year).
The Government’s efforts to cushion the effects of the crisis were geared at stimulating economic growth, maintaining the capacity to attract investment, and protecting the economic interests of the people, by lowering the number of taxes included.
To prevent subsequent difficulties, Romania agreed with the EU and the international financial institutions on a two-year financial assistance package worth nearly EUR 20 billion. The main goals are to support the balance of payments (notably to ensure judicious expenditures in the public sector), to secure the credit and investment flow and to consolidate the reserves of the central Bank.
Romania’s macroeconomic prospects have visibly improved of late, on the backdrop of external demand, even though unemployment-related problems are likely to persist.
The Romanian Government will further work to fulfill the convergence criteria and observe the terms of the Stability and Growth Pact, as well as to ensure long-term stability of the exchange rate, with a view to switching to the Euro.
Reforms are to be operated at a fast pace, with emphasis on decentralizing the public administration, mobilizing public funds and strengthening the administrative capacity of generating projects to better absorb European funds, and financing priority projects in the areas of infrastructure, agriculture, education, health care, energy, environment, and creating new business opportunities for investors.
Romania’s strategic priorities for the next period are to develop the infrastructure, to ensure energy security and supply from alternative sources, modernize agriculture, enhance the quality of education and health care services
Doing business in Romania
Any business initiative stands for an opportunity and the government of Romania encourages Romanian and foreign citizens alike to be active in the private sector.
Backing private entrepreneurs and stimulating entrepreneurship are central to the activity of the Executive.
The actions of the Government are geared at consolidating a stable and predictable business environment, strengthening free competition, eliminating state monopolies that are not economically justified, enhancing the transparency of the business environment, of governmental policies and monetary policies and liberalizing the labor market.
Institutions and useful links
Foreign trade
The chief institution in charge of drafting and implementing the commercial policy internally is the foreign trade structure at the Ministry of Economy, Commerce and Tourism (www.dce.gov.ro).
This institution keeps the business environment abreast of import/export opportunities in third markets and of the schedule of Romania’s participation in international fairs and exhibition.
Other entities having tasks in the field of commerce:
http://www.portaldecomert.ro/OFERTA_EXPORT1/INDEX.html
http://www.portaldecomert.ro/OFERTA_EXPORT2012/INDEX.html
www.arisinvest.ro
Eximbank Romania (www.eximbank.ro) – institution created to provide support, by means or financial-banking instruments, for Romanian exporters to enter and manage to stay on foreign markets, high-risk ones included.
Foreign investment
Since 2009 the institution empowered to implement the Government’s policy on promoting and attracting foreign direct investment is the Romanian Center for Trade and Investment (www.traderom.ro , www.arisinvest.ro ).
Economic policy
The Ministry of Economy, Commerce and Business Environment (www.minind.ro) is the specialized institution of the central public administration that implements the Government’s policy on economic growth, industry, energy, mineral resources, defense industry, European integration, trade and economic external relations
Taxation
Tax policy focuses on ensuring a stimulating role of taxes, designed to help economic growth and development, fiscal consolidation as well as the development and strengthening of the middle class.
The Ministry of Public Finance (www.mfinante.gov.ro ) has a synthesis role as to the activity of the financial and fiscal structures of the Romanian state
Monetary policy
Designing and implementing the monetary policy, the exchange rate policy included, is the task of the central bank – the National Bank of Romania (BNR) (www.bnr.ro ), an independent public institution, the only one authorized to issue currency in the form of banknotes and coins to be used as legal tender in Romania.
The fundamental goal of BNR is to ensure and maintain price stability.
Along with its monetary policy tasks, the National Bank of Romania authorizes, regulates and supervises prudentially the credit institutions, promotes and oversees the smooth functioning of payment systems to ensure financial stability, establishes the currency regime, supervises its observance and manages Romania’s international reserves.
BNR also supports the general economic policy of the state, without prejudice to its main objective of ensuring price stability.
Small and medium-sized enterprises
Small and medium-sized enterprises (SMEs) currently are the engine of the private sector and the free market in Romania, while also making up the sector accounting for the biggest
absorption of labour. SMEs evince increased flexibility and mobility when it comes to adjusting to market trends and the evolution of the legal framework.
97% of all Romanian companies are SMEs. Coordination, monitoring and support for the implementation of governmental programmes targeted at SMEs is provided by an Agency for the Implementation of Projects and Programmes for SMEs (www.aippimm.ro), subordinated to the Ministry of Economy,
Commerce and Business Environment
Customs Policy
Customs policy is in agreement with the European Union’s. The national authority with specific competence in this field is the National Customs Authority (www.customs.ro ), subordinated to the Ministry of Public Finance.
Company Registration
The institution that handles company registration in Romania, both in the case of Romanian-owned and of foreign-owned companies, is the National Office of the Trade Register (www.onrc.ro ), subordinated to the Ministry of Justice.
Chambers of Commerce
The Chamber of Commerce and Industry of Romania (www.ccir.ro ) comprises the entire network of 42 territorial and bilateral chambers of commerce, plus professional associations.
The CCIR works to create a stable, coherent business environment favoring the development of the private sector and of a real, sustainable market economy open to the world.
Statistics
Official statistics in Romania is organized and coordinated by the National Institute of Statistics (www.insse.ro ), a specialized body of the central public administration, subordinated to the Government and financed from the State budget.
The National Institute of Statistics supplies operational statistical information to economic and social decision makers, assimilates the specific statistical indicators of the market economy, implements research and computing methodologies according to European and international standards and practice, and cooperates with other national statistics institutes.
Other sources: the National Prognosis Commission (www.cnp.ro )
Romania Business Recognized
Your competitors are in Romania or will be soon…
3M, AIG, Alcoa, Amway, Avon, Bunge, Cargill, Cisco, Citibank, Coca-Cola, Colgate Palmolive, Ernest & Young, Delphi, General Electric, HBO, Honeywell Garret, Howard Johnson’s, HP,
IBM, Johnson Controls, Kodak, Kraft, Lockheed Martin, McDonald’s, Microsoft, Motorola, New Century Holdings, Oracle, Philip Morris, Proctor and Gamble, Qualcomm, RAEF, Solectron, Timken, UPS, Visa, Washington Group, Xerox...to name a few!
Can your company afford to miss out on this important opportunity?
ActivitiesIn Romania
The Ministry of Commerce’s global network provides the platform to educate international investors on the advantages that come with investing in Romania.
The initiative is focused on outreach to the international investment community.
More specifically, Invest in Romania welcomes all inquiries and is equipped to serve as a foreign investor’s first point of contact for an investment in Romania. Initial meetings may involve gaining information about the Romanian economy as a whole, making contacts with appropriate agencies, and discussing Romania policies and basic investment procedures.
Invest in Romania can provide all potential investors an investment contact list encompassing all Romanian companies. This comprehensive guide provides the economic development point of contact within each state who has been designated by each Governor to field international investment inquiries.
In addition to helping foreign investors locate in the Romania, Invest in Romania works across various agencies to act as a voice within the federal bureaucracy to ensure the United States remains the premier location for foreign direct investment. Through its ombudsman role, Invest in Romania also supports potential and current foreign investors with regard to difficulties encountered within the bureaucracy.
Invest in Romania complements the work of state governments. The one activity the initiative will not undertake is to steer prospective investors toward or away from any particular location in Romania. The initiative promotes Romania in general as a site for investment.
Agriculture In Romania
The historic provinces of Walachia, Transylvania, Moldavia, Dobruja, and the Banat have distinct soil and climatic conditions that make them suitable for different types of agriculture.
The breadbasket of Romania is Walachia, which provides half the annual grain harvest and roughly half the fruit and grapes. Truck farming, especially in the Ilfov Agricultural District surrounding Bucharest, is also important. Despite the fertility of Walachia's soil, yields fluctuate considerably from year to year because of recurrent droughts. Transylvania, which receives more precipitation than Walachia, has poorer soils and more rugged terrain that restricts large-scale mechanized farming.
Livestock rising predominates in the mountains, and potatoes and grains are the principal crops in the central basin. Moldavia has generally less fertile soil than Walachia and receives scant rainfall. Its primary crops are corn, wheat, fruit and grapes, and potatoes.
The Banat region has a nearly ideal balance of rich chernozem soils and adequate precipitation. Grain, primarily wheat, is the principal crop; fruits and vegetables are also
important. Dobruja, a region of generally inadequate rainfall, was becoming agriculturally more important during the 1980s, because much of the marshland in the Danube Delta was being drained and brought under cultivation. The traditional crops of Dobruja are grain, sunflowers, and legumes.
Major Crops
Corn and wheat (predominantly of the winter varieties) occupied nearly two-thirds of all arable land in the 1980s and about 90 percent of all grain lands. Corn, the staple of the peasant diet, was grown on 3.1 million hectares in 1987, while wheat was sown on 2.4 million hectares.
Other important grains included barley (560,000 hectares), oats (70,000 hectares), rice (47,000 hectares), and rye (42,000 hectares). Among the major nongrain crops, the most widely grown in 1987 were hay (870,000 hectares), sunflowers (455,000 hectares), potatoes (350,000 hectares), soybeans (350,000 hectares), sugar beets (271,000 hectares), feed roots (70,000 hectares), corn silage (50,000 hectares), and tobacco (35,000 hectares). Wine and table grapes were widely grown, but the best vineyards were in Moldavia. Romania had gained a reputation for fine wines as early as the nineteenth century, and subsequently became one of the major producers of Europe.
Thanks to the increased use of fertilizers and plant-protecting chemicals and the expansion of arable land area through irrigation and drainage, grain output rose steadily from only 5 million tons in 1950 to between 20 and 30 million tons in the 1980s. How much grain was produced in the late 1980s was unclear because official figures had become unreliable. The Romanian government reported a 1987 grain harvest of more than 31.7 million tons, a record amount and far larger than the 1985 harvest of 23 million tons. The United States Department of Agriculture, however, estimated the 1987 harvest at only 18.6 million tons--well below the harvest of 1985.
Livestock
Prior to the dramatic increase in grain cultivation in the nineteenth century, livestock raising, sheep breeding in particular, was the most important economic activity in the country. But with the diversion of grazing land and a perennial shortage of fodder, livestock raising fell into decline. After a drastic reduction in livestock inventories in World War II, herds were gradually replenished, but the number of horses continued to decline, as agriculture became more mechanized. Cattle were raised throughout the country, particularly in the foothills of the Carpathians. Sheep predominated in the mountainous areas and Dobruja. Pigs, poultry, and rabbits were raised on a wide scale.
Private farmers, who produced a large share of livestock brought to market, operated under dire conditions. The state theoretically was obliged to provide fodder to the livestock breeders it contracted to fatten animals. But fodder and proteinrich mixed feeds were not made available in the necessary quantities, especially in the 1980s, when imports were drastically curtailed.
Fishing
The numerous rivers emanating from the central mountains, the Danube, the Black Sea coastal waters, and Lake Razelm in the Danube Delta provide rich fishing grounds. The lower Danube supplies roughly 90 percent of the total catch, about 80 percent of which is consumed fresh. In 1985 approximately 260,100 tons were produced, and the 1986 plan called for 380,100 tons. Fish farming was being practiced on an increased scale in the late 1980s, particularly in the Danube Delta, where more than 63,000 hectares were expected to be covered with fish ponds by 1990.
Farming Practices
By the mid-1980s, more than 30 percent of the country's 10 million hectares of cropland was irrigated. The remaining 7 million hectares were subject to recurrent and sometimes severe droughts, which were particularly destructive in the southern and eastern regions.
At the same time, large areas of land along the Danube and in its delta were waterlogged, and the government decided to drain much of this marshland and make it arable. The Danube Delta, covering more than 440,000 hectares, was being developed rapidly after 1984. By 1989 some 35,750 hectares had been made arable and large areas of pastureland had been created. By 1990 more than 144,000 hectares of the delta were expected to be useful agricultural land.
Poor crop rotation practices, with corn and wheat sown year after year on the same ground, led to serious depletion of soil nutrients, and supplies of chemical fertilizers were inadequate to restore the lost fertility. In the early 1980s, for example, only thirty-four to thirty-six kilograms of fertilizer were available per acre. Furthermore, much of the best farmland had been severely damaged by prolonged use of outsized machinery, which had compacted the soil, by unsystematic application of agricultural chemicals, and by extensive erosion.
During the first three decades of communist rule, agricultural planners ordered the slaughter of thousands of workhorses, which were to be replaced by more powerful tractors. Indeed, the number of tractors available to agriculture grew from 13,700 in 1950 to 168,000 in 1983. But with the onset of the energy crisis, the regime reversed its policy.
A program adopted by the National Council for Agriculture, Food Industry, Forestry, and Water Management in 1986 called for increasing horse inventories by 90,000 head by the end of the decade and reducing the number of tractors in service by nearly one-third. By 1990, according to plans, horse-drawn equipment would perform 18 to 25 percent of all harvesting and virtually all hauling on livestock farms.
Farm Organization
Cooperative and state farms were the two primary types of farm organization, although a significant number of small private farms continued to exist in the 1980s. State farms accounted for more than 17 percent and cooperatives nearly 75 percent of all arable land. In 1982 cooperatives employed 2.2 million farmers, while state and private farms employed about 400,000 each.
The formation of state farms, which were intended to be the rural equivalent of socialist industrial enterprises, had begun as early as 1945. These ideologically favored farms received the best lands expropriated in 1949 and during the major collectivization campaign of the 1958-62 period, and they had priority access to machinery, chemicals, and irrigation water. Because of these advantages, state farms reported higher crop yields than did cooperative farms. Like other state enterprises, state farms operated according to the directives of the central government. Workers received a fixed wage in return for their labor on the farm and had no private plot rights. Their incomes in the 1980s approached those of urban workers.
Although cooperative farms owned their land and certain basic equipment, they had little more autonomy than the state farms. Their directors routinely accepted production directives from Bucharest with little objection. The cooperatives were told what crops to grow, how to grow them, and how much to deliver to the state. Many smaller cooperatives were ordered to combine into associations during the 1970s and 1980s to pool their assets. According to a decree issued by the Council of State, cooperative farmers were required to work at least 300 days per year on the cooperative, and they were subject to transfer to other farms or even to construction and lumber work sites if their own cooperative had no work for them. Between 40 and 60 percent of the average cooperative farm income was derived from the sale of products from private plots. Despite this supplementary income, cooperative farmers earned only about 60 percent as much as their counterparts on state farms in the 1980s. Cooperative farmers also had much smaller pension benefits.
As late as 1988 almost 9.5 percent of the country's 15 million hectares of agricultural land remained in private hands. As a rule, this land was located in relatively inaccessible mountainous regions, where use of heavy machinery was impractical. In addition, in 1988 cooperative farms reserved some 922,000 hectares (about 6 percent of all arable land) for private plots, which were cultivated by families working on the cooperatives. These plots averaged 1,500 square meters in area, but in rugged terrain they could be considerably larger. Thus in the late 1980s, the private sector was still cultivating more than 15 percent of the country's agricultural land--the highest total in Eastern Europe after Poland and Yugoslavia. Privately owned land could not be sold, nor could it be inherited by persons unable to tend it adequately.
Even official government statistics revealed that private agriculture was more than four times as productive as socialized agriculture in the cultivation of fruit; twice as productive in grain growing and poultry raising, and 60 percent more efficient in milk, beef, pork, and vegetable production. In 1987 the private sector produced half the sheep, 40 percent of the beef, 28 percent of the pork, and 63 percent of the fruit output.
Despite the higher productivity of private agriculture and its major contribution to total farm output, the Ceausescu regime systematically penalized the nonsocialist sector. At the very time most of the communist world was beginning to permit peasants to lease larger tracts for longer periods, Romania was actually reducing the area under private cultivation--from 967,500 hectares in 1965 to 922,841 in 1985. Beginning in 1987, an area of at least 500 square meters (or one-third) of each private plot was required to be sown in wheat, and the harvest was to be traded to the state for the yield from an equivalent amount of land cultivated by the cooperative farm. This policy was designed to discourage peasants from spending an inordinate amount of time cultivating their private plots instead of working for the cooperative.
Its effect, however, was to further demoralize the farm population and thus make it less productive.
In the late 1980s, the systematization program aimed to subordinate privately owned land and private plots on cooperative farms to the regional agro-industrial councils and thereby tighten central control of private farming. Systematization would eliminate many of the plots, as villages were levelled to create vast fields for socialized farming. This policy directly contradicted the government's mandate in the 1980s that the population essentially feed itself by cultivating small plots (even lawns and public parks had been converted to vegetable gardens) and breeding poultry and rabbits.
Administration
Romanian agriculture in the late 1980s remained the most centralized in Comecon. A complicated and constantly changing network of overlapping state and party agricultural bureaucracies had evolved over the previous four decades. The Ministry of Agriculture set production targets and oversaw the distribution of resources among the judete. It became the frequent target of Ceausescu's ire and received much of the blame for agriculture's persistent problems. In 1978 the Congress of the Higher Councils of Socialist Agricultural Units and of the Whole Peasantry and its permanent bureau, the National Agricultural Board, were established. The apparent purpose of the new body was to approve and thereby legitimize the PCR's policy directives. The following year a joint party and state agricultural policy-making body was established--the National Council For Agriculture, Food Industry, Forestry, and Water Management. Meeting as frequently as four times a year in plenary session, the council provided a forum for Ceausescu to address thousands of agricultural specialists and functionaries.
In 1979 pursuant to the guidelines of the New Economic and Financial Mechanism enacted the previous year, a network of agroindustrial councils was set up to coordinate the activities of as many as five state and cooperative farms in an area served by a single state machinery station. A Stalinist holdover abandoned in the rest of Eastern Europe, these stations controlled access to tractors and other heavy equipment. In the 1980s the agroindustrial councils gained additional powers to coordinate agricultural production, food processing, research, and agricultural training. After 1980 judet and village people's councils bore responsibility for fulfilling agricultural production targets set in Bucharest. In each judet a General Directorate for Agriculture and Food Industry made assignments to individual state and cooperative farms.
Procurement and Distribution
State farms, like other socialist enterprises after the implementation of the New Economic and Financial Mechanism, were in theory self-financed and self-managed concerns that were expected to earn a profit while delivering assigned quantities of output to the state. In reality, few state farms in the 1980s could turn a profit, because the government's procurement prices were consistently lower than production costs. Cooperatives and private farmers, too, had large state-imposed quotas to fill even before satisfying their own food requirements. A 1984 decree specified the quantity of production to be delivered to the state by farmers. For example, potato growers were required to deliver three tons per hectare of land cultivated, and dairy farmers had to turn over 800 liters of milk per cow. To ensure compliance with the
compulsory quotas, Ceausescu reinstituted the Department for Contracting, Acquiring, and Storing Farm Produce, which had been disbanded in 1956. The state was able to hold sway over individual farmers because it controlled the supply of fertilizers, herbicides, machinery, construction materials, and other inputs. To gain access to these materials, the farmer had to sign delivery contracts. Farmers who failed to comply with the delivery quotas even risked losing their land.
Farmers were permitted to keep for their own use any food remaining after their quotas had been filled, and they could sell the surplus at farmers' markets, where prices in the early 1980s were frequently five times the state procurement prices. A law passed in 1983 required peasants to obtain a license to sell their products on the open market, and it imposed a maximum commodity price of 5 percent above the state retail price. Disappointing harvests in the early 1980s convinced the government to raise procurement prices. As a result, peasant incomes rose by some 12 percent between 1980 and 1985, and farm output increased by about 10 percent. Private farmers in the mid-1980s were obliged to sell to the state 30 percent of the milk, 50 percent of the pork, 12 percent of the potatoes, and comparable shares of other commodities they produced.
Throughout the 1980s, a self-sufficiency program, mandated by the PCR, was in effect. Each village and judet was responsible for producing, to the maximum extent possible, the food needed by the local population. In reality the program was another means for procuring agricultural products for export. Nearly all the production from the three types of farms was confiscated by state procurement agencies, which then returned the amount of food the state deemed sufficient to meet the dietary needs of the village and judet. The quantity returned invariably was less than that delivered. The self-sufficiency program in effect reversed the rationalization of the 1970s, when regions specialized in the crops and livestock best suited to local conditions. Thus a portion of the prime grain lands of Walachia had to be diverted to truck farming, while cool, wet regions of Transylvania attempted to grow sunflowers. The self-sufficiency program seriously impeded the distribution of agricultural products among regions and damaged the domestic marketing system.
The party secretary of each judet was responsible for delivering a specified quota of food to the state. Because these individuals reacted in different ways to the countervailing needs of their constituents and the central authorities, there was considerable regional variation in food supplies. Many party secretaries began understating output figures so that less would have to be delivered to Bucharest and more would be available for the people of their judet.Aware of this regional variation, citizens made food-hunting forays into other judethoping to find stores better stocked. Ceausescu ordered the militia to monitor the highways and railroads to prevent "illegal" food trafficking.
The Ministry of Agriculture and Food Processing itself was torn between a sense of responsibility to safeguard the interests of the agricultural sector and its obligation to fulfill the regime's mandate to maximize procurement. To resolve these conflicting loyalties, in February 1986 a separate Ministry of Food Industry and Procurement was established.
Currently Romania is one of the best business home in the world.
Energy Is Romania
Romania is the 38th largest energy consumer in the world and the largest in South Eastern
Europe as well as an important producer of natural gas, oil and coal in Europe.
The total energy consumption of Romania was in 2005 40.5 million toe structured as follows:
36.4 % - natural gas
25.1 % - oil and derivate
22.4 % - coal and coke
16.1 % - hydro and others
1 Reserves
o 1.1 Oil
o 1.2 Coal
o 1.3 Natural gas
2 Electricity
o 2.1 Hydropower
o 2.2 Nuclear energy
o 2.3 Wind power
o 2.4 Other renewable energy
3 Biofuels
4 References
Reserves
Romania's natural resources in the year 2007 were structured as follows:
Oil: 550 million tonnes.
Natural gas: 185 billion m3
Bituminous coal: 755 million tonnes
Lignite: 1.49 billion tonnes
Romania has the largest oil reserves in Central and Eastern Europe (except Russia) and the
second largest natural gas reserves (except Russia) behind Ukraine but twice as large than
Poland but it has the smallest reserves of coal in the region.[2]
Oil
Main article: Petrochemical industry in Romania
Petroleum field
Romania's oil production in 2007 was around 120,000 bbl/d while the consumption of oil was
around 230,000 bbl/d.
Romania had the largest oil production in the year 1976 when the total quantity extracted was
close to 14.7 million tonnes. Since then the oil production increased and decreased regularly
but in the last 10 years the production had a descending path.
Coal
In 2006 the total coal production of Romania was 34.1 million tonnes of which:
Bituminous coal: 2.9 million tonnes
Lignite: 31.2 million tonnes
Almost all the coal extracted in the country is used for electricity generation, bituminous
coal having a 7.2% contribution in all electricity produced in Romania and lignite having a
32.2% stake.
Evolution of bituminous coal production:
Evolution of lignite production:
Natural gas
Main article: Natural gas in Romania
In 2007 Romania produced a total of 12.3 billion m3 of natural gas the most important
producers being Petrom with 6.3 billion m3 and Romgaz with 6 billion m3.
The natural gas consumption in 2007 was 17.4 billion m3 with the local producers providing
around 70% and imports of 5.1 billion m3 supplying the rest.
Electricity
In 2006 Romania produced a total of 62 TWh of electricity having an installed capacity of
17,360 MW in thermal, hydro andnuclear power plants. The power generation was structured
as follows:
Hydropower
Romania has an estimated total usable hydropower of 36,000 GWh per year.In 2007 the total
installed capacity of hydropower plants in Romania was 6,400 MWh all of which were owned
by Hidroelectrica.
In 2007, Romania produced 19.8 TWhof hydropower. Romania co-ownes the Iron Gate I
Hydroelectric Power Station on the Danube River located on the border between Romania
and Serbia, which is one of the largest hydroelectric power plants in Europe with an installed
generation capacity of 2,216 MW by 6 generating units of 175 MW each on the Serbian side
and 6 generating units of 194.4 MW on the Romanian side.
The two countries also jointly operate the Iron Gate II Hydroelectric Power Station with an
installed generation capacity of 537 MW by 8 generating units of 27 MW on the Serbian side
and 10 generating units of 32 MW on the Romanian side.
The largest hydropower plant on the inner rivers of Romania is the Lotru-Ciunget Hydroelectric
Power Station with an installed generation capacity of 510 MW but this power plant will be
surpassed by the Tarniţa – Lăpuşteşti Hydroelectric Power Station which at completion in
2014 will have an installed generation capacity of 1,000 MW.[9]
Nuclear energy
Nuclear power in Romania :-Cernavodă Nuclear Power Plant
Romania currently has 1.400 MW of nuclear power capacity by means of one active nuclear
power plant with 2 reactors, which makes up to around 18% of the national power generation
capacity of the country. This makes Romania the 23rd largest user of nuclear power in the
world.
The Cernavodă Nuclear Power Plant (Romanian: Centrala Nucleară de la Cernavodă) is the
only nuclear power plant in Romania. It uses CANDU reactortechnology from AECL,
using heavy water produced at Drobeta-TurnuSeverinas its neutron moderator and water from
the Danube for cooling.
There are also plans for the construction of a second nuclear power plant inTransylvania that
will either have 2 reactors of 1.200 MW each or 4 reactors of 600 MW each with an electricity
generating capacity of 2.400 MW[10] and will be constructed after 2020
Wind power
Wind power in Romania
As of 2007, Wind power in Romania has an installed capacity of 10 MW, up from the
3 MW installed capacity in 2006.
Romania has a high wind power potential of around 14,000 MW [12] and a power generating
capacity of 23 TWh, but until 2007 there were no significant wind farms in operation.
Other renewable energy
The annual energy potential for renewable energy in Romania is:
Wind energy: 23 TWh
Hydropower: 36 TWh
Solar energy: 1.2 TWh electricity and 16.7 TWh thermal energy
Geothermal energy: 1.9 TWh
Biomass and Biogas: 88.3 TWh
In recent years Romania increased its production of biofuels in a sustained manner. The
country uses rapeseed as a source of biodiesel. In 2007 Romania had a total cultivated area
of 430,000 ha with Rapeseed and had a production of 750,000 tones.
In 2007 Romania produced 400,000 tons of biodiesel mainly
from rapeseed and sunflower seeds.
The German company MAN Forrestal invested US$200 million[13] in the construction of
a biodiesel refinery in County that produces around 142,000 tons of biodiesel per year.
There are other companies that are interested in investing in biodiesel in Romania like
the Martifer Group in Portugal that will build a biodiesel refinery in Călăraşi County where it will
invest US$120 million.
When this refinery will be at full capacity, Romania will be in the top ten biodiesel producing
countries in the world.
Industry of Romania
Romania has been successful in developing dynamic telecommunications, aerospaceand weapons sectors. Industry and construction accounted for 32% of gross domestic product (GDP) in 2003, a comparatively large share even without taking into account related services. The sector employed 26.4% of the workforce. With the manufacture of 245,000 vehicles in 2008, Romania was the Europe's twelfth largest producer of automobiles.
In 2004 Romania enjoyed one of the largest world market share in machine tools (5.3%)Romanian-based companies such as Automobile Dacia, Petrom, Rompetrol and Bitdefender are well known throughout Southeast Europe. However, small- to medium-sized manufacturing firms still form bulk of the manufacturing sector. These firms employ two-thirds of the Romanian workforce
Romania's industrial output is expected to advance 9% in 2007, while agriculture output is projected to grow 12%. Final consumption is also expected to increase by 11% overall – individual consumption by 14.4% and collective consumption by 10.4%. Domestic demand is expected to go up 12.7%.
The growth of the industrial sector was the principal stimulus to economic developmentIn 2007 manufacturing industries accounted for approximately 35 percent of the gross domestic product and 29 percent of the work force. Benefiting from strong domestic encouragement and foreign aid, Bucharest's industrialists introduced modern technologies into outmoded or newly built facilities at a rapid pace, increased the production of commodities—especially those for sale in foreign markets—and plowed the proceeds back into further industrial expansion. As a result, industry recovered from the decline of the 1990s, and was expected to grow by 7.1% in 2008.[1]
Except for mining, most industries were located in the urban areas of the northwest and southeastHeavy industries generally were located in the south of the country. Factories in Bucharest contributed over 25 percent of all manufacturing value-added in 1998; taken together with factories in surrounding Ilfov, factories in the Bucharest area produced 26 percent of all manufacturing that year. Factories in Bucharest employed 12 percent of the nation's 2.1 million factory work
1 Construction
2 Manufacturing
3 Car manufacturing
o 3.1 Automobiles
4 High technology
5 Information technology
o 5.1 Economic structure and sustained growth
6 Steel industry
7 Arms industry
8 References
Construction industry in Romania
Construction activity (about 10% of GDP) has increased due to recent tax incentives. Romania is becoming an increasingly popular choice for British property investors, according to recent research from Currencies Direct.[2] The latest Global Emerging Markets Index from the foreign exchange company shows that Romania has made the top ten for the first time, reaching number nine.
The monthly index is based on the number of foreign exchange transfers undertaken by the firm to emerging market regions for property purchases. According to Currencies Direct, Romania has seen significant increases in house prices in recent years and its interest rate has dropped from a level of 154 per cent in 1997 to 8.9 per cent in 2005.
The construction industry in Romania contributed an estimated 5.95% in 2006 to the country's gross domestic product (GDP). Business Monitor International released Romania Infrastructure Report Q2 2007 in which they forecast an average industry growth rate of 6.84% over the 2007–2011 period.[3]
The construction industry has been receiving funds from foreign institutions including European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB). Furthermore, the Romanian Ministry of Environment and Water Management is making efforts to align the Romanian environment standards with the European standards.
One of the ongoing projects in the country is the construction work on the various sections of the Bucharest-Brasov motorway. An increasing number of foreign companies are showing interest in electrical production capacities in the country. Companies include Germany's Siemens, U.S-based AES Corporation and Geneva-based SocieteBancaire Private.
However, the construction industry is subject to a number of risks, which can affect its growth. The rising budgetary deficit, for example, has had an increasingly adverse impact on the availability of funds for the infrastructure sector.
Despite the drawbacks, BMI ranked Romania 12th out of the 13 states included from the Emerging Europe for the infrastructure business environment. The construction industry is forecast to reach a value of RON36.2bn (US$13.41bn) by 2011, from an estimated RON20.88bn (US$7.43bn) in 2006.
Currently It is Dramatically Increasing
Manufacturing
The general pattern of development for wealthy nations was a transition from a primary industry based economy to a manufacturing based one, and then to a service based economy. Romania did not follow this pattern, manufacturing has always been secondary, though certainly not unimportant. In part because of this, Romania did not suffer as greatly from the pains of deindustrialization in the 1970s and 1980s. Manufacturers have been attracted to Romania due to the highly educated population with lower labour costs than the EU. Romania's government-run healthcare system is also an important attraction, as it exempts companies from the high health insurance costs they must pay in the EU.
Romania is also perceived as a dynamic market for machine tools, especially in the backdrop of growth in the domestic automobile and mechanical engineering sectors.
Romanian machine tool exports abroad have been growing at double digit figure since 2002. Moreover, Romanian exports saw an increase of 23 percent in the first half of 2007 compared to the same period last year. The exports comprised mainly machining centres, grinding, honing, lapping machines, gear cutting machines, lathes and milling machines, presses and other metal forming machine tools.
Romania Business Directory
Topic: Food Company: Margarine Factory For Sale
Address: Bucharest Zipcode: 011726 City: Bucharest Country: Romania Tel: +40212304390 Fax: +40212304389 email: [email protected] Description: Investment opportunity - margarine factory for sale. Factory For Sale: 25000 m2 concrete yard, 7000m2 industrial construction, 4 Electric transformers high power installed, refrigeration station, steam station, water treatment station, 3 deep water wls. 2 complete lines for margarine production ( if needed ). located in industrial zone, 10 km. from Bucharest Grand Marriott Hotel, Bucharest, Romania. Urgent.
Topic: Others Company: Sc Wine Princess Srl
Address: Octavian Goga Nr. 26 Zipcode: 310028 City: Arad Country: Romania Tel: +40 742 071 520 Fax: +40 257 251 000 url: http://www.wineprincess.ro email: [email protected] Description: Wine producer from Minis vineyard, Romania. The Minis vineyard is atested by documents since 1000 years ago. The weather conditions and earth conditions make a great place for pinot noir, cadarca, cabernet sauvignon and merlot grapes to grow up. Cadarca, was the wine of the imperial court of Wien in the time of the emperor Franz Josef, XVIII century. In 1714 from Cadarca grapes was obteind red sweet wine named ASSZU and was better than tokay. The red wine technology is the traditional technology and it is very
old. The results of this technology are the red wines with a good extract content, intens colored, with 13- 14 % vol. alc.
Topic: Construction Company: Spc
Address: EpiscopIlarion Nr 20 Sect. 2 Zipcode: 021495 City: Bucuresti Country: Romania Tel: 0721-439492 Fax: 021-3238597 email: [email protected] Description: Our company is one of the main producers of wood prefabricated houses in Romania. We can produce and deliver different types according to customers' plan or our own. Your dream become the reality with us!
Topic: Auto Company: S.C. DirServ S.R.L.
Address: Str.MedicZlatescu, Nr.10, Sector 2 Zipcode: 70000 City: Bucharest Country: Romania Tel: +40212524330 Fax: +40212524330 url: http://www.dirserv.ro email: [email protected] Description: Electronic and electrical parts for cars, vans, truck, marine and agriculture.
Topic: Industry Company: ScRobmetSrl
Address: Str.Darmanesti Nr.40 Bl. A11 Sc A Ap.2 Zipcode: 5600 City: Piatra Neamt Country: Romania Tel: 0040-745-369062 Fax: 0040-233-233460 url: http://www.robmet.ro
Description: -Flanged steel gate valves with non-rissing stem pn25 dn50-500 -Flanged steel gate valves with rissing stem pn25 dn 50-500 -Flanged steel globe valves pn 25 dn 15-150 -Forged steel gate and globe valves class 1500 dn 20-25 -Flanged cast iron gate valves plate body pn10 dn 50-200 -Flanged cast iron gate valves oval body pn10 dn 50-200 -Flanged cast iron gglobe valves pn16 dn 15-150 -Centric butterfly valves pn16 dn 50-250.
Topic: Others Company: InterscambioSrl
Address: P.O.Box 183 Zipcode: 3600 City: Cluj Country: Romania Tel: ++40-742-607088 Fax: ++40-264-587969 email: [email protected] Description: We are a firm from Romania specialized in the export of 'All wood' products, from furniture to houses. We have the possibility to offer a large variety of good quality wooden houses (also garages, tool boxes, etc), in any size, complexity, and model, at very competitive prices, while also having the possibility to offer houses in conditions 'ready made', all done at destination. We can also offer furniture of all types for homes, communities, gardens and open air festivities, either foldable or not, and products for the DIY industry at a very competitive price/quality relation.
Topic: Agriculture Company: Florea Comp
Address: Str.Paun Nr.3 Zipcode: 700212 City: Iasi Country: Romania Tel: +400740865519 Fax: +400740865519 url: http://itrademarket.com/floreacomp Description: We can supply from direct seller with: Wheat, sugar, urea 46, LPG gas, D2, CST 180, Crude oil, REBCO, SLCO, bitumen.
Topic: Agriculture Company: Florea Comp
Address: Str.Paun Nr.3 Zipcode: 700212 City: Iasi Country: Romania Tel: +400740865519 url: http://itrademarket.com/floreacomp email: [email protected] Description: We are an general trade company. We are dealers in wheat, sugar, urea 46, LPG gas, D2, gas, CST 180, REBCO, SLCO, bitumen, jet fuel, scrap steel. If have any offers or requesting in this field we are happy to receive we will reply fast.
Topic: Art and crafts Company: Millennium Art Style
Address: Str. Hangarului Nr. 4 Zipcode: 5100 City: Buzau Country: Romania Tel: 0040238416764 Fax: 0040238712893 email: [email protected] Description: Our firm manufactures both art reproductions in glassware field such as the art nouveau period with resounding names as: Galle, Schneidere, Daum-Nancy, Majorelle, Muller, Lalique, Val Saint Lambert, Legras, Rigot type, and diverse hand-made glassware items of colored glass, glass + bronze combinations, glass + wrought iron combinations and modern furniture and other articles for inner decoration like: pictures made of oil on canvas and stained glass windows. I hope you could be interested in our range of articles.
Topic: Others Company: Elinor
Address: PrimaveriiStr, 29 City: Slatina Country: Romania Tel: +40249406242
Fax: +40249431015 email: [email protected] Description: Decorative veneer in oak or beech specially but not only, according the demanded specification, in a very good quality of the raw material, with producers which has experience in export, until now in Italy, Grece, Spain and Germany. Experience in managing the external relations, good connections with all kind of transport. Good and very sure banks relations.
Topic: Trade Company: Infinity Trade
Address: Al. I. Cuza Boulevard No.3, 5th Floor Zipcode: 810019 City: Braila Country: Romania Tel: 0040 239 606116 Fax: 0040 239 606117 email: [email protected] Description: We are representing a private Romanian company acting in manufacturing of wrought iron finished products (as gates, fences, rails, window grilles), wrought iron elements for gates, fencings, railings, window grilles and other ornamental pieces ( including garden decoration, furniture ad any other idea on customer demand). Our company are doing consultancy services, especially in metallurgy and different type of metallic products, based on international exchanges. As a background, we are metallurgical engineers and we have a long experience in international trading and we are using this in connection with our contacts in Romania and outside.
Topic: Engineering and Manufacturing Industry Company: ScContactoareSa
Address: 10, Mesteacanului Street, Buzau, Romania City: Buzau Country: Romania Tel: +4 0238 716227 Fax: +4 0238 710632 email: [email protected] Description: We are a leading Romanian company which manufactures low voltage equipment - transformers, contactors, ballasts, thermal relays, switchers, generators -, lighting fixtures and accessories,
indoor electric network appliances features for domestic or industrial building, outdoor lighting systems, electric equipment for protection and power distribution. We have been also developing our manufacturing possibilities with execution of moulds and dies, metal working, galvanic covers and electro-static painting. In the auto area, we can produce parts of the electric system of a car, auto accessories or delco covers. Nowadays, our company exports in Germany, Spain, Italy and Slovakia - for Volkswagen - various products manufactured under clients' technical documentation, on basis of agreements that unfolds for more than 6 years.
Topic: Packaging Company: Contransimex Industry S.A. Address: 38 DinicuGolescu Avenue, PalatCfr, Mezanin, Sect. 1 Zipcode: 77115 City: Bucharest Country: Romania Tel: +40.21.638.7094 Fax: +40.21.222.3765 url: http://www.contransimex.com email: [email protected] Description: Supplier of ISO and special containers. We design, project and manufacture, according to customers specifications, a very large assortment of standard and special steel containers at competitive prices.
Topic: Industry Company: SindfibreSa
Address: Uzinei Str. No 1 Zipcode: 5612 City: SavinestiNeamt County Country: Romania Tel: 0040 724 241 167 Fax: 0040233 281 135 email: [email protected] Description: We are the only Romanian company, manufacturer of regenerate nylon chips. We need to import nylon 6 yarn waste abt 1000mt /year.
Topic: Electronics Company: Odyssey Com Srl
Address: World Trade Centre City: Bucharest Country: Romania Tel: +40 21 202 3193 Fax: +40 21 202 3100 url: http://www.odysseycom.srl email: purchasing@odysseycom-com Description: Romanian Company specializing in sourcing from worldwide contacts the latest in electronics/mobile phone/mobile phone accessories/fashion goods for distribution into Eastern Europe. We have weekly stock offers and can obtain the latest phones and electronics, plus more economic grade 1, return goods. We also deal in Samsung Return Goods (40% less than non-return, but in perfect condition - in box) Coffee and DVD's. Please contact us with your requirements - wholesale quantities only.
Topic: Garment Company: Aquarius Exim Srl Address: 13 Septembrie Str. 89, Ap 21, Sector 5 Zipcode: 050713 City: Bucharest Country: Romania Tel: 0040 21 410 02 42 Fax: 0040 21 410 32 98 email: [email protected] Description: We are looking for importers/wholesalers. Our export permanent range includes: 1.Piece goods in 100% cotton, linen, hemp or wool 2.Ready made products: - bed linen: printed or dyed in piece; sizes: up to 280 cm on Saten, Renforce, Percale or Flannel fabrics and up to 240 cm on Seersucker and Saten-seersucker. - bath linen: bathrobes, bath mats, beach towels, long chair mats. -kitchen linen: napkins, tablecloth, aprons, insulating gloves, 3.Worsted or Woollen fabrics (100% wool with Woolmark) or wool blends. 4.Blankets and travelling rugs made of 100% wool (with Woolmark).
Topic: Health Company: Ciprod Pharm Srl
Address: TepesVoda Str. Nr.55 City: Bucharest Country: Romania Tel: +40213237177;
Fax: +40213222080 url: http://www.ciprodpharm.com email: [email protected] Description: Our firm is producing and distributes medicinal herbs (tea) and aromatic. Also we are manufacturing plastic packages (medicinal or commercial) for more details and offer please check our web site.
Topic: Health Company: S.C. Tesanrom S.R.L.
Address: Str Gheorghe Doja No. 111 City: Ploiesti Country: Romania Tel: 0040244595951 Fax: 0040244595951 email: [email protected] Description: All kind of medical tapes.
Topic: Construction Company: ScHorea Trading Srl Address: Ec. Teodoroiu 29 Zipcode: 550083 City: Sibiu Country: Romania Tel: 0040213361011 Fax: 0040213361011 Description: We are one Romanian company and we can provide for you a big quantity of timber and wood products, cut at your dimensions. We can sell softwood, oak, turkey oak, ironwood, beech, mapel, cherry, birch and other.
Topic: Agriculture Company: BiprofSrl
Address: Rodica Street No 2 Zipcode: 2000 City: Ploiesti Country: Romania Tel: 0040722417194 Fax: 0040722112006 email: [email protected] Description: We are trade company from Romania. We export fresh
fruits and vegetables in EU. If you are interested in importing fruits / vegetables from Romania, we are here to deliver the best. We can also be your agent here for something you are interested.
Topic: Computers Company: Puzzle Srl
Address: Vergului 73/Gradinitei 87 Zipcode: 7000 City: Bucharest Country: Romania Tel: 0040-722.561.708 email: [email protected] Topic: Health Company: Arifa
Address: CaminLeuASt.B-DulIuliuManiu Nr.1-3 Ap.520 Zipcode: 72210 City: Bucharest Country: Romania Tel: +40723477410 Fax: +40213238101 email: [email protected] Description: We are a medication factory in Romania we would like to export our products out to the other countries if you would require from our products we'll send you all the information (medication drugs &prices).
Romanian American Chamber of Commerce: Cleveland Chapter
Contact: Svetlana Schreiber
Tel: (216) 621-7292
1370 Ontario St., Suite 1620 Cleveland, OH 44113
http://www.racc.ro/index.html
Insurance Agents
Gaius Vaduva – International Insurance Group, Inc.
5196 Lee Road, Cleveland, OH 44137
Toll Free: 800-332-8122, Local: 216-332-9940, Fax: 216-332-1645
[email protected] , www.insuranceiig.com
Financial Consulting
Susan SiaraVasu
Financial Advisor / Practice Manager: Landing Point Financial Group – A private wealth
advisory practice of Ameriprise Financial Services, Inc.
Office: 440.934.7100 | Fax: 440.934.0684
36350 Detroit Road, Avon, Ohio 44011-1506
http://www.ameripriseadvisors.com/susan.vasu
Marketing
SorinBica: Project Manager
Cubic Agency: Cleveland-based Online Marketing Agency
Phone: (216) 308-0559
[email protected], www.cubicagency.com
Property
200 West Apartments
Dan Miclau: General Manage | JaneneKubit: General Manager | Deanna Kaiser: Bookkeeper
Phone: (440) 333-0102
20201 Lorain Road, Fairview Park, OH 44126
www.200West.com, [email protected]
HOME AND GARDEN
Bartan Design, Inc.: Granite & Marble Manufacturing – Maria Bartan
Tel: (216) 267-6474, Fax: (216) 267-6478
13100 Enterprise Ave., Cleveland, OH 44135
www.bartandesign.com, [email protected]
COMMERCE AND SERVICES
Food Products
Nita Food Mart
Tel: (440) 845-1828
5363 Ridge Rd, Parma, OH 44129
AC Meat Shop
Familia Cotrau
Tel: (216) 741-7500
5543 State Rd., Cleveland, OH 44134
Dessert Stores
Perla Homemade Delights
Tel: (216) 741-9222
5380 State Rd, Cleveland, OH 44134
http://www.perlahd.com/index.html
Dodo & Toto Bakery Inc.
15219 Madison Ave., Lakewood, OH 44107
Tel: (216) 659-3590
Piccadilly Artisan Yogurt
Piccadilly Cleveland Heights: 1767 Coventry Rd. Cleveland Heights, OH 44118 | Tel: (216)
321-7422
Piccadilly Ohio City: 2547 Lorain Avenue Cleveland, OH 44113 | Tel: (216) 331-1308
http://www.piccadillyartisanyogurt.com/
Piccadilly Artisan Creamery
Tel: (216) 563-1992
11607 Euclid Ave., Cleveland, OH 44106
http://www.piccadillycreamery.com/
JUDICIAL
Attorneys
Cocirteu, Huford&Sleibi LLC (Cleveland)
Tel: (216) 381-8800
West Side Office – 13326 Madison Avenue, Lakewood, OH 44107
East Side Office – 4040 Mayfield Road, Suite 1, Cleveland, OH 44121
Svetlana Schreiber & Assoc. Co. L.P.A. (Cleveland)
Tel: (216) 621-7292, 1-866-553-4643
1370 Ontario Street, Suite 1620, Cleveland, OH 44113
www.immigration-greencards.com, [email protected]
Wojnar& Associates (Cleveland)
Cristina Marinescu
Tel: (330) 547-2050 (office) | (330) 651-5050 (mobile)
15649 Akron-Canfield Rd, P. O. Box 126, Berlin Center, OH.44401
=Health & Life Insurance: SSIP Insurance Partners: http://www.1ssip.com/
=Legal Plans & Identity Theft Protection: Legal Shield: cristiana73.legalshieldassociate.com
=Retirement & Legacy Planning: Wealth & Wisdom
Institute: http://www.wealthandwisdominc.com/
=Notary & Translation Services
Public Notaries
Wojnar, Nicoleta Esq. (Cleveland)
Services for Immigration in USA
Svetlana Schreiber & Assoc. Co. L.P.A. (Cleveland)
Tel: (216) 621-7292, 1-866-553-4643
1370 Ontario Street, Suite 1620, Cleveland, OH 44113
www.immigration-greencards.com , [email protected]
Wojnar, Nicoleta Esq. (Cleveland)
HEALTH AND SOCIAL SERVICES
Dental Laboratories & Technics
Supreme Dental Laboratory, Inc. (Cleveland)
PetruCocirteu
Tel: (216) 291-1900
4040 Mayfield Road, Cleveland, OH 44121
Europe Dental Care
MirceaOlteanu DDS Familly Dentistry
8193 Avery Road Suite 100,
Broadview Heights, OH, 44147
440-746-9030, Fax: 440-746-9070
ASSOCIATIONS AND ORGANIZATIONS
Christian Associations & Organizations
Romanian Catholic Diocese of Canton (Canton)
Bishop: Most Rev. John Michael Botean | Vicar General: Very Rev. IuliuMuntean | Chancellor:
Very Rev. OvidiuMarginean
Tel: (330) 493-9355 | Fax: (330) 493-9963
1121 44th Street NE, Canton, OH 44714-1297
www.RomanianCatholic.org
ART, CULTURE, AND EDUCATION
Greg Sotak
Digital Image: Wedding and Fashion Photographer
1445 Alameda Ave., Lakewood, OH 44107
216 509-4959
www.GregSotak.com, [email protected]
Mass Media
Unirea of the Romanian Catholic Diocese of Canton/Eparchy of Canton
Editor : Mrs. Jude SurduBălaş
Tel: (330) 493-9355 | Fax: (330) 493-9963
1121 44th Street NE, Canton, OH 44714-1297
www.RomanianCatholic.org
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