Kazakhstani companies have every chance to organize profitable import or invest their capital in the economy of Ethiopia. This was stated in an exclusive interview with www.palata.kz by the Ambassador of the Republic of Kazakhstan to the Federal Democratic Republic of Ethiopia Yerlik Ali, who arrived in Astana for a short visit and shared his expert opinion on the Ethiopian economy and the investment opportunities of the domestic business in this country.

- Mr. Ali, let us begin the conversation with a floral theme. The information note, which was given to us, reporters before the briefing at the Ministry of Foreign Affairs of Kazakhstan, stated that just in a decade Ethiopia increased the export of flowers from hundreds of thousands to a billion of flowers. Frankly, it is surprising to hear about flower cultivation in Ethiopia, an African country with a hot climate.

- This is a country, which is located mainly on the Ethiopian plateau. If you look at a map, the capital of Ethiopia, Addis Ababa, by the way, its name is translated as a new flower, is situated on a hill at level 2.3 km above the sea level. This is actually like our Chimbulak, which creates unique climatic conditions. For example, Ethiopia is now the rainy season, which will last until October. It is very good for flowers.

You say it is hot Ethiopia. It is hot in the south, and mainly, two-thirds of Ethiopia is not too hot, there is stable temperature of + 22 + 25 degrees.

- What kind of flowers did you see personally in Ethiopia?

- Almost all, including roses and even tulips. I saw a field of roses, which have no end in sight. French and Dutch work here very actively. Some of the flowers grown in Ethiopia, arrive in Kazakhstan through Holland. However, specificity is the fact that our customers like flowers with a long stem, the length of which ranges from 80 cm to 1 meter. Until recently, Ethiopians worked with the Russian market, probably, with Kazakhstani as well. But due to the fact that the need of Arab and European countries in the flowers with a stem 50-60 cm, the flowers with long stems are hardly cultivated. I was told in Ethiopia: "If you find a business that on a regular basis will buy flowers, we are ready to grow roses with a long stem up to one meter. But we do not see on the horizon your companies". Even Russian businessmen gradually stopped supplies from Ethiopia due to the crisis, although they had a good business. Therefore, the number of plantations in Ethiopia was reduced.

I talked to some of our businessmen who showed interest to import flowers from Ethiopia to Shymkent, but at some point contacts for some reason went quiet. The reasons unknown to me, maybe people did not get a loan, may be, they have issues with implementation. Although, if the business got into Kazakhstan and had its segment, the prices of flowers that grow from year to year at a frantic pace, could be significantly reduced. This, of course, would ease the burden of our customers, who sometimes spend a lot of money on flowers. We all love to give them as a gift.

- How do you assess the prospects for the import of coffee from Ethiopia, which you also noted at the briefing?

- I'll tell you frankly: great coffee. It seems to me, in terms of taste and value Ethiopian coffee is much better than peers from other countries. Because Ethiopia – is the birthplace of coffee. And I would like to bring this coffee to Kazakhstan. Recently I went to Astana to a coffee shop, they served Ethiopian coffee. But, in my opinion, this coffee was delivered to Astana through a distribution network of one of the Russian companies. Perhaps this coffee comes through Moscow. But it is possible to make direct deliveries to Kazakhstan and to reduce the price of coffee for consumers.

- You have said that the Kazakh businessmen are afraid to take risks with supplies to Ethiopia. What repels our companies?

- First of all, it was Ebola. When I went there in the capacity of an Ambassador, I also had fear. But Africa – it is not one country. There was Ebola, which was, for example, in West Africa - in Liberia, Sierra Leone and Guinea. But it didn’t spread to other countries. Fight with Ebola was in these countries, but the disease did not reach Ethiopia, no cases of Ebola disease were registered there, including the eastern part of Africa. Fear was exaggerated by the media. Yes, there are problems, they fear malaria. For some African countries, this is a real a problem, I felt it myself, when I was in Benin, Cameroon, Congo. You must be cautious, and there are no medicines to protect yourself from it. But in most parts of Ethiopia, malaria is absent. Only in the rainy season, the problem arises. But there is no malaria in Addis Ababa.

- What can you say about the conditions created for importers in Ethiopia? How flexible are they?

- The legal, financial and economic framework in Ethiopia only starts to develop. And, of course, many businesses experience problems and difficulties. But many countries, for example, Turkey, have 300-400 companies there. They insure their capital through Ex-Im Bank and they are not afraid to cooperate with this country. They invest in its economy.

- Are Kazakh companies present on the market of Ethiopia?

- No. Unfortunately, our business has no opportunity.

- Are there companies in Ethiopia, which, in your opinion, could be the investors in Kazakhstan's economy?

- Sadly, Ethiopia is not at that stage, and not a country that can invest. Even its foreign policy is currently in search of donors, sponsors, investors, and therefore the country is working with all states. Ethiopia from 2013 to 2016 received financial assistance of around 30 billion USD from the EU. So I say: there are countries that can bring investments in Kazakhstan, and there are countries where Kazakhstan can and should invest. Ethiopia wants to diversify, they want to see not only Chinese, Americans, Indians, Turks, Koreans, and so on. There are problems, for example, there is no developed banking system. It takes a lot of effort for an investor to take out of the country the invested capital.

- In which niches of the economy could consolidate our investors in Ethiopia?

- First of all, in the mining industry. As they say now, it is a promising field. We could start with a small investment. We also have specialists who could help. For example, graduates of Kazakh universities with education and experience. Of course, investors need to have the pool of not only financiers, but also lawyers, who will defend their interests. Yes, you need to create a bilateral contractual basis. But if we go down this path, we will lose time. It is necessary to work in parallel. If we have a big investment, of course, bilateral laws are needed. But if it is small investment, you need to start work now.

- Thank you for the interview!

Zhanar Serdalina