National coffer

Newsletter 11

Overview of Investment of Southern Nations, Nationalities and Peoples' Regional State (SNNPRS)

 The untapped national resources, varieties and the existence of conducive climate of investment has attracted many investors to the region.

Since the establishment of the regional investment bureau in 1993 up to June 2005 a total of 1319 projects have received licenses to invest in different economic sectors. Out of the total investment 248 (18.8%) are engaged in agriculture, 628 (47.6%) in industry, 106 (8%) in construction, 274 (20.7%) in services and the remaining 63 (4.7%) are engaged in other investment sectors.

The licensed investment projects have a total capital amounting to nine billion birr.

When all projects become operational they will employ 129,651 skilled and semiskilled people. 

The Southern Nations, Nationalities and Peoples' Regional State (SNNPR) which is located in the Southern and Southwestern part of the country is the third most populous region after Oromia and Amhara regional states.

According to population census conducted in 2004, it accounts for 21% of the population of the country, i.e, nearly 19 million people.

The region is land of plains, vast escarpments deep canyons and mountainous landscapes.  It is also endowed with rift valley lakes, rivers and diversified fauna and flora.

The region is known for its production of the major export items of the country such as coffee as well as hides and skins.  There are also adequate raw materials and market for industrial production.  So far, many investors, both domestic and foreign, have benefited from these significant investment opportunities in the region.  All sub-regions (North, South, East and West) have variety of climate with diversified investment potential and comparative advantage. 

In accordance with the constitution of the region, ownership of both urban and rural land is by the state and people of the region.  However land is also acquired on the basis of lease.

              Table 1 - Urban Land Prices

No.

Name of City

Zone

Floor Price/m2

1

Awassa

         -

0.80

2

Arba Minch

Gamo Gofa

0.70

3

Wolaita Soda

Woliata

0.35

4

Dilla

Gedeo

0.35

5

Hossana

Hadiya

0.20

6

Yirgalem

sidama

0.20

7

Alaba

Alaba

0.20

8

Yirgachefe

Gedeo

0.20

9

Wolkite

Guraaghe

0.15

10

Butajira

        "

0.15

11

Durame

Kembata Timbaro

0.10

12

Areka

wolaayta

0.10

13

Boditi

Wolayta

0.10

14

Sawla

Gamo Gofa

0.10

15

Bonga

Kaffa

0.10

16

Tepi

Sheka

0.10

17

Mizan Aman

Benchmaji

0.10

18

Jinka

Debub Omo

1.10