Opportunities, Challenges and Prospects of Tigray Investment and Export Commission in Promoting Investment in Tigray

Abstract

The attraction of investment generally and FDI particularly requires putting in place an independent and more effective institutional setup in the region. Having this need in mind, TIEC has been established to administer the entire investment activities of the region by proclamation no 319/2011 E.C. This research critically examines the opportunities, challenges, and prospects of TIEC in promoting investment in Tigray. It has employed predominantly empirical qualitative methodology in that legal instruments, key informants’ interviews, questionnnaieres, focus group discussion and personal observations which are the major source of the data. Findings of this research show that finding land to be placed in investment land bank, allocation of budget for compensation, administration and monitoring FDI in the region and its institutional arrangement of the commission are the leading challenge of TIEC in promoting investment in Tigray. Finally, the researcher forwarded recommendations in that annual budget should be allocated to the TIEC to compensate the displaced persons and it is better for the TIEC to have full power in finding land for investment. It also forwarded that amendment of the current investment proclamation is needed to enable the TIEC to have the power of administrating FDI in the region by delegation and the structural arrangement of TIEC must include highly qualified experts of environmental impact assessment team that undertake the duty of assessing on matters relating to environmental impact assessment issues of the investment projects.