The Government of Ethiopia has signed a Memorandum of Understanding (MoU) with Siemens to address the country’s energy and infrastructure sectors. The memorandum was signed between the Ethiopian Investment Commission (EIC) and Siemens on April 4, 2019 to support the government’s objective of becoming a low middle income country by 2025.
Siemens, the largest industrial manufacturing company in Europe, is a German conglomerate company which annually generates revenue of EUR 130 billion. The primary goal of this agreement is to commit to a long-term partnership between Siemens and the people of Ethiopia to develop fast-track solutions that will enable the government to stabilize and expand existing grid infrastructure, explore solutions for industrial parks and co-develop micro-grid solutions for remote villages.
Abebe Abebayehu, commissioner of the EIC, said: “Ethiopia shall continue its drive as the primary destination of Foreign Direct Investments and will endeavor to fully utilize the vast experiences, technological and management competencies, and funding models availed by multinationals such as Siemens.”
In addition, the Commissioner affirmed the Ethiopian government’s fullest commitment to realize the commencement of this collaboration and to set up a standing coordination committee for this purpose.
Sabine Dall’Omo, Siemens CEO for Southern and Eastern Africa said, “This milestone agreement is another step in demonstrating our strong commitment to the people and government of Ethiopia. We are here today as we have been since 1927, to help achieve affordable and reliable power supply, create jobs, increase access to training and develop local skills alongside local partners.”
Siemens has established a permanent office in 2017 and has been present in Ethiopia since 1927. Siemens is a global powerhouse focusing on the areas of electrification, automation and digitalization, which has been in Africa for over 157 years.
The principal divisions of the company are Industry, Energy, Healthcare, and Infrastructure & Cities, which represent the main activities of the company. The company is a prominent maker of medical diagnostics equipment and its medical health-care division, which generates about 12 percent of the company's total sales, is its second-most profitable unit, after the industrial automation division.
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