The appointment of honorary consulate for Ethiopia in Muscat in 2014 took Oman-Ethiopia relations to new heights. The Omani products exhibition – OPEX to be held in Addis Ababa from April 11 to 14 will be the biggest showcase of Omani products in Africa ever. HE Sheikh Fahmy Said Al Hinai, the honorary consular of Ethiopia to Oman, talks about what OPEX holds in store for Omani business houses, especially at the time of falling oil prices.
Oman-Ethiopia relations have strengthened ever since Federal Democratic Republic of Ethiopia opened its honorary consulate in the Sultanate in 2014. These ties are all set to bolster further and enter a vibrant new phase in the coming days.
This renewed interest in Ethiopia is evident especially in the trade and industrial sectors in Oman. Buoyed by the help and assurances offered by the honorary consulate with the cooperation of Governments of both countries and the business opportunities opening up for Oman in Ethiopia, Omani entrepreneurs, industrialists and investors are making a beeline to OPEX, the largest exhibition of Omani products to be held in Addis Ababa Ethiopia from April 11 to 14.
HE Sheikh Fahmy Said Al Hinai, the honorary consular of Ethiopia to Oman who played a key role in developing Oman-Ethiopia relations is happy about the increased cooperation between both the countries, but he wants to better it and take it to the next level.
“Oman and Ethiopia should open embassies in each other’s country. At least consulate offices should be opened and not just honorary consulates. We want both the governments to take the initiative. I request both governments to do it to increase business to its maximum potential and support in providing benefits to the people of both countries,” he said.
He pointed out that Ethiopia has their embassy and trade offices established in the region. These offices facilitate trade and investment and the volume of trade is quite high; Oman has a big potential too. There needs to be an urgent ministerial level approval to facilitate the opening of embassies or at least full functional consulates in both countries, he said.
Different phases of progress
Recounting the strengthening of relations between Oman and Ethiopia, Sheikh Fahmy Al Hinai said, although there were some interactions between the two countries before the opening of the consulate, there were gaps in communication. “Once our office started functioning, the gap was bridged and both came closer. We provide all necessary information about Ethiopia, especially on the business and industry there through different channels with the help of our representative Rukiya Abdulkadir. We have authentic statistics on population, potential consumers, business opportunities, potential partners, etc. and can provide guidance as to how to secure investments which are vital for investors and travellers,” he said.
He continued, “Investors from all over the world give priority to secure their investment and need reliable data on different aspects of economy which we provide. We do feasibility studies and provide it to investors. We provide details of government offices, regulatory bodies, laws, etc. and guide investors to phase investments. We ask them to route investments through the government as it will provide protection to the money. Our guidance makes doing business easy for the investors and makes them confident,” he said.
Earlier, Omanis who wanted to go to Ethiopia for business or other purposes had to contact Ethiopian embassy or consulate in the region. They had to directly deal with Ethiopians in Addis Ababa for business and were unable to secure their investment. But after the honorary consulate started functioning, Omanis go to Ethiopia through us. “We guide them travel without trouble. We give them authentic information on how to get a visa, where to stay, whom to contact, etc. The result is now people are more confident when they go to Ethiopia,” Sheikh Fahmy Al Hinai observed. More than 3000 Omanis have travelled to Addis Ababa after the consulate opened. Many decided to visit there after consulting the consulate.
Importance of Opex
Sheikh Fahmy Al Hinai cites different reasons on why participating in OPEX is crucial for Omani business houses, especially at the time of fall in oil prices. This is the right opportunity for those who have not done any trade with Ethiopia to strike a relationship and start business. For those who have visited Addis Ababa but does not have the right connections, this is the time for getting right connections. Now we are going as a big group with representation of different sectors and we will do our best to make this successful.”
“‘One Team One Dream’ is our motto,” he said. Going in a group is better than going alone for businessmen, he added. “Our group will have the Minister of Commerce and top officials of different government and semi government bodies of Oman including Oman Chamber of Commerce and Industry (OCCI), Public Authority for Investment Promotions and Export Development (ITHRAA), the Public Establishment for Industrial Estates (PEIE) and the Public Authority for Small Medium Enterprises (RIYADA). This is the highest ever-official delegation between Oman and Ethiopia/Africa. God willing! This year, we will have a big delegation coming from Ethiopia to Oman too. When Oman exchanges high level delegations with other countries, doing business will become easier and more business will happen,” he said.
OPEX will help Omani businessmen find Ethiopian business partners. A study has found that some Omani products like food items are reaching Ethiopian market through distributors from different countries. Omani manufacturers have realised that instead of routing through distributors they can directly export these products to Addis Ababa and get better rates. Many of them are coming to OPEX to find partners there. Ethiopia is huge country with a population of more than100 million. This is a very huge market and Omani companies can have more than one distributor there, they can benefit from inter Africa trade with Sudan, Kenya and other large African countries, Sheikh Fahmy Al Hinai noted.
He added, “When targeting Addis Ababa we are actually targeting 250 million people in Common Market for Eastern and Southern Africa (COMESA) which is a free trade area comprising 20 countries surrounding Ethiopia . From Ethiopia, one can re-export without duty to others in COMESA and benefit from common trade agreement.
Apart from exporting to Ethiopia, there are opportunities to invest there. Hundred percent foreign investment is allowed in Ethiopia in certain areas. Ethiopia has low-cost labour and can become a source for low cost and quality raw materials for Oman’s manufacturers, which they can import and use to make value added products and re-export. Already some Omani manufacturers have evinced interest in opening factories in Ethiopia.”
OPEX will also feature stalls of Ethiopian Governments where government officials will help on all trade and investment related issues. It will be like a one-stop-shop. Ethiopian banks will also be present at the exhibition. All these make OPEX attractive for exporters and investors.
Opportunities
Ethiopia offers investment opportunities in different areas like agriculture, infrastructure development, manufacturing, oil and gas, mining etc. Export opportunities exist for a broad spectrum of products including building materials, fibre optic cables, pipes, aluminum, electrical distribution boxes, furniture, marble and plastic. Ethiopia’s infrastructure sector is rapidly developing. As Omani products have superior quality and are priced reasonably, they can make a difference in the Ethiopian market. Omani contracting companies will get ample opportunities there.
Future prospects
“We are planning events in Africa for five years. We are doing surveys through ITHRA in different African countries. We hope to do exhibitions; one each in Africa and the Middle East next year. Then we will provide survey results to all companies that participate in this OPEX and they can tell us where to go next,” said Sheik Fahmy Al Hinai.
“To further the reach of OPEX we are inviting people from countries neighbouring Ethiopia. The African Union is based in Addis Ababa and its member countries have their representatives in Addis Ababa. We are inviting them also to OPEX. Initiations are being extended to more than 170 embassies there. OCCI is also sending invitations to all African chambers of commerce, added Sheik Fahmy Al Hinai.
Oman will become the first GCC country to organise a big trade and investment show in Addis Ababa with OPEX, which will be a new effective strategy to boost trade. OPEX will be the biggest showcase of Omani products in Africa ever. “In spite of the current economic condition resulting from oil price fall, we have almost exceeded the previous participation record of OPEX. This signifies the market dynamics of Ethiopia and Africa and is a pointer to the future growth,” Sheik Fahmy Al Hinai concluded.