Technology and Big Data Empower Investment in Ethiopia

On Thursday, May 4, 2017, Corporate Council on Africa hosted Zakarias Amsalu, Director of Ethiopian Operations at Asoko Insight. Asoko Insight, a CCA member company, is a leading market research platform that provides corporate data on African public and privately held companies. It recently expanded operations to Ethiopia due to rising investor interest in the country. Mr. Amsalu’s presentation explained how Asoko Insight’s database and analytics technology is helping to connect Ethiopian businesses with foreign and local investors who want to invest in Ethiopia.Mr. Amsalu began his presentation with a general overview of the investment opportunities in Ethiopia. Ethiopia has become one of the top destinations for foreign direct investment in Africa, because of its rapid and sustained economic growth, proximity to Middle Eastern markets and other markets provided by trade agreements, infrastructure developments and a political environment that supports foreign investment. The Ethiopian government hopes that by 2025, Ethiopia will become a middle-income country and the manufacturing hub of Africa. The government has identified seven priority sectors that can help the country realize its development goals. These sectors can be divided roughly into two groups: light manufacturing industries—industrial parks, agro-processing, leather and textile and garment—and basic and import substitutions—chemicals, pharmaceuticals, construction materials, and metal engineering. The Ethiopian government and Ethiopian businesses in these sectors are looking for equity, technical advisors and companies who have developed successful business practices that have helped them grow.The biggest challenge many global corporations, investors and governments face in investing in Africa is the lack of information. Asoko Insight seeks to mitigate that problem by providing accurate, and reliable information on African businesses. It has the largest repository of African company information in its database, totaling more than 8,000 companies. Since its Ethiopia office opened in March 2017, Asoko Insight has compiled and validated information of 1,000 companies in Ethiopia and has 3,000 more companies in the pipeline.Asoko does not charge any African business for its service but it does charge subscription fees for investors seeking more comprehensive information on African