Business Opportunities in Ethiopia

We want to assist you with Business Opportunities in Ethiopia, get Business Opportunities in Ethiopia as well as to search for and connect with leading Companies in Ethiopia. We also provide a list of key Government trade advisors who assist you with doing business in Ethiopia and other relevant business information on Ethiopia. Specifically we offer three digital portals that are FREE to use and will be of interest to you…..You can join our Africa Business Community FREE so we can promote your company here. After that if you have a specific investment or business proposition add it to the Africa Business Opportunities Dashboard FREE. Want investment, or to find a business partner, are you selling real estate etc, do you have goods, products or services you want to promote? If so our Africa Business Opportunities Dashboard is for you. View some of the business opportunities uploaded by our Africa Business Community here. Fast growing, more established Ethiopia companies with experienced management teams looking for investment can add themselves to our closed AFSIC African Investments Dashboard – after you have uploaded information about your investment opportunity we can send it directly into the inbox of many of Africa’s most important investors. To benefit from any of these options join our Africa Business Community today FREE !

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Knowledge

Country overview: Ethiopia is located in the north-eastern part of Africa. It is a landlocked country sharing borders with Eritrea to the North, Somalia & Djibouti to the East, Kenya to the South, South Sudan to the West and Sudan to the North West. Ethiopia is one of the oldest independent countries in the world. Its capital is Addis Abba with 9 regional states which serve as administrative divisions. It is a multi-party Federal Parliamentary Republic with the President sitting as the Head of State and Prime Minister as Head of Government. It runs a bicameral legislative system of government. Ethiopia has diverse official languages based on its regional states, but Amharic and English remain the business language. The country’s religion is evenly divided between Islam, Christianity, and Ethiopia orthodox. Its legal system is based on civil law. It has an area size of 1.10 million sq km. The country’s proximity to the Middle East and Europe, together with its easy access to major ports of the region, enhances its international trade. Ethiopia has the lowest level of income-inequality in Africa and one of the lowest in the world, with a Gini coefficient comparable to that of the Scandinavian countries.

Demographic Information: Ethiopia has an estimated population of 108.1 million comprising mostly of younger population (less than 25 years) which makes up about 59.3% of the population, those in the age bracket of 25-64 years makes up about 37.3% of the population and above 65 years age group makes up about 3.4% of the population. Ethiopia is the 12th most populous country in the world, the second most populous nation on the African continent (after Nigeria). Average population density is estimated at 115 inhabitants/km2. In terms of human development indicators, it has a life expectancy of 69.7 years (Women) and 65.5 years (Men). It achieved universal primary education with an 100.97% Primary enrolment rate in 2015 and overall literacy level of 51.8% as at 2017.

Broad Economic Overview: Agriculture is the backbone of the Ethiopian economy. It is also rich in gold deposits. The agricultural sectors constitute about 35.8% of GDP and employs about 70% of the population while Services sector constitute about 42.0% of GDP which employs about 19.9% of the population. The principal exports from the Agricultural sector are coffee, oilseeds, pulses, flowers, vegetables, sugar, and foodstuffs for animals. There is also a thriving livestock sector, exporting cattle, hides, and skins (has one of the largest livestock herds in Africa). It is the 6th largest coffee producer in the world (by volume) and the 8th largest coffee exporter (in value) but the main foreign exchange earnings are led by the services sector – primarily the state-run Ethiopian Airline. Real GDP growth slowed to 9.0% in 2019 from 10.1% in 2017, caused by social unrest and fiscal consolidation to stabilize the public debt. It has managed to sustain a record GDP growth in the past 5 years having grown 9.3% (5yr compound annual growth) over the period. Industry and services sectors continued to lead growth driven by construction, notably for industrial parks and infrastructure investments. Its currency is Ethiopian birr and it is not a convertible currency as private sector allocation to foreign exchange (U.S. dollars) is determined by the the National Bank of Ethiopia (NBE). Major imports include machinery and aircraft, petroleum products, motor vehicle, electrical materials, metal and metal products, Chemical and fertilizers etc.

Investment Opportunities: The Ethiopian state still heavily engaged in the economy, however, the state is in the process of privatizing many of the state-owned businesses moving toward a market economy and a new flexibility with respect to economic policymaking. Ethiopia has a comparative advantage in textiles and garments, leather goods, and processed agricultural products. To support industrialization, Ethiopia plans to increase installed power generation capacity by 8,320 MW, up from a capacity of 2,000 MW, by building three more major dams and expanding to other sources of renewable energy. It has a strong hydraulic energy potential, estimated at 45,000 megawatts. Some of the sectors with investment opportunities include Telecommunication, Ethiopian floricultural market, textile and garment, leather and leather product, Pharmaceutical, Agro-processing, ICT, Tourism, Mining and Power sectors.

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Other Information Sources

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African Development Bank: www.afdb.org

African Investments: www.africaninvestments.co

AFSIC – Investing in Africa Event: www.afsic.net

BBC Africa: www.bbc.co.uk/news/world/africa

Investing in Africa: www.invest-in-africa.co

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