Ethiopia: Land of Investment Opportunities
Ethiopia as known by many as the Land of Origins, is endowed with a swathe of investment opportunities at all corners of the country. In the last decade, the country has achieved remarkable and fast economic growth. Home to the continent’s second largest population, the country has been attracting high amount of Foreign Direct Investment (FDI) in recent years.
Backstopped by a profound economic strategy and policies, the Government has been putting efforts to create a business environment that is conducive to investment through development of various infrastructures.
Even though the country is positioned as a yet untapped investment opportunity in Eastern Africa, its remarkable growth is amplified with various values and assets. The Government has established infrastructures such as Special Economic Zones (SEZs) that serve as a conducive microclimate to investments and are equipped with efficient and effective services, healthcare center, commercial buildings, proper waste treatment facilities, police stations, fire brigade and 24/7 security services.
With an overarching “Homegrown Economic Reform” agenda which supports the fast growth and puts the private sector at the heart of the economic development, the country has prioritized five investment sectors i.e., Agriculture, Manufacturing, Mining, Tourism and ICT.
Ethiopia has also identified emerging sectors for investment including Energy, Transport & Logistics, Financial services, Health and Housing development.
Tailored fiscal and non-fiscal incentives including customs, duties, and income tax exemptions, guaranteed repatriation of funds, bonded export facilities and availability of active and trainable labor which represents 60% of the total population offer great investment opportunities.
Market access is another opportunity Ethiopia offers for successful investments. The country has a large domestic market with a total population of more than 120 million people. Its strategic location with proximity to the African countries, Middle East,
Asia and Europe helps it connect with wide range of markets in these regions. In addition, it is a member of the African Continental Free Trade Area (AfCFTA) with market access to more than 1.4 billion people, and of the Common Market for Eastern and Southern Africa (COMESA) with preferential market access to a regional market of 400 million people.
Moreover, it has duty-free, quota-free access to the EU markets through EBA scheme and to Japan, Canada, China, Türkiye, Australia, and New Zealand- covering substantially all export goods from Ethiopia. There is also preferential market access to India. Furthermore, equipped with efficient logistical hub such as air transport through the legendary Ethiopian Airlines, clean powered railway, suitable dry ports, well-connected express roads, and highways provide expedited transportation services to investments.
