BY KASSAHUN CHANIE
Prominent economists urged the government to establish a welcoming atmosphere for business and attractive financial policy adjustments before allowing foreign investors to join the domestic market, particularly those business sectors previously barred to foreign investors.
According to Kostantinos Berhe (PhD), the prior ban has placed significant strain on the nation’s economy, and the high inflation that occurred previously is a direct consequence of this.
Kostantinos who contends it was improper to forbid foreign businesses from operating in the retail sector, told EBC Cyber that the newly adopted law, which lifted the ban on retail business for foreign companies, will help lower the high already inflation to consumers and manage the domestic business through business law.
In the same vein, foreign investors will bring global expertise to the local market, which will contribute to import substitution thereby helping farmers to maximize.
Kostantinos also claimed that the quality and worth of the product will rise when big enterprises with overseas experience join the local market and showcase their offerings to overseas consumers.
The advent of overseas businesses allows local entrepreneurs to flourish greatly for they prevent market swings and promote output.
Another prominent economist who seconds Kostantinos’ arguments is Birhanu Denu (PhD). Beyond only giving the youth more work options, Birhanu claims that foreign investors’ involvement in the domestic market boosts the country’s economy in numerous ways by allowing local producers to boost output and gain a competitive edge.
He continued by saying that artificial shortages in retail and wholesale trading will vanish if the industry, which has been restricted to other competitors, is opened to them.
Foreign businesses investing in the nation will be a good resource for the economy by shifting the infrastructure development that was exclusively expected from the government to the private investor, the economist explained.