Ananta Apparels Limited, a subsidiary of Ananta Group, Bangladesh, has expressed its intent to invest US $ 8 million in setting up an apparel factory in Ethiopia.
The firm recently submitted its proposal with the central bank seeking latter’s approval to initiate its plan of investing in the African country.
It also said that while the company would invest US $ 8 million from its own fund, any additional fund would be taken from multinational financial institutions like International Finance Corporation.
Meanwhile, the central bank has forwarded Ananta’s proposal to the Ministry of Finance as the Government of Bangladesh preserves the right to give permission for such proposals.
Ananta Apparels is the latest among several companies from Bangladesh to show keen interest in Ethiopia. Of the 7 Bangladeshi companies to have been granted approval to invest abroad, Akij Jute Mills got the approval to invest US $ 20 million to procure 2 Malaysian firms.
According to the Group, availing duty benefits was the main objective behind its decision to invest in Ethiopia. Besides, skilled labour force has been another major attraction for the Group to invest in the country.
A company official said Bangladesh would face high taxation when the country graduates to developing nation and therefore it was all the more relevant to move to a growing hub like Ethiopia.
AB Mirza Azizul Islam, Former Caretaker Government Adviser, said that the government must investigate whether the investment would be profitable under the tax benefits.