Ethiopia is the oldest
independent country in Africa, and is among the most stable countries in
the region. The 2012 peaceful transition of power to a new Prime Minister
has proven the stability of Ethiopia’s multi-party-political system and
parliamentarian form of government.
After the coming into power of
Dr Abiy Ethiopia undergo unprecedented radical reform
Democracy and Rule of Law:
Pardoning political detainees,
Allowing political groups in
exile to come home,
Lifting the state of emergency
Lifted bans on websites and
Building peace in the region,
Successfully made peace with
Partial privatization of
Ethiopia Airlines, Ethio-Telecom, and Shipping and logistics sector,
Ethiopian Parliament appointed
its first Female Head of state H.E President Sahele-Work, Federal Supreme
Court President and the head of Ethiopia's electoral board.
Ministerial cabinet was reduced
to 20 from 28 in an effort to create efficiency and lean government
structure & The ministerial cabinet is now composed of 50% female
This is unthinkable in a
patriarchal society such as ours. This sets the standard for future but
also normalizes women as a decision maker in public life.
Ethiopia is most known for its
social stability and least crime rate, as well as strong public institutions
and reliable police service.
An average of about 11% annual
GDP growth for the last 14 years, one of the fastest growing economies in
the world during the same period (World Bank Global Economic Prospects).
The country gets the recognition
of UNCTAD for promoting investment in the Sustainable Development Goals
Similarly, the world bank
recognized Ethiopia through its “Star Reformer Award” for its outstanding
performance on investment policy reform and promotion.
Stable and conducive
46% growth in FDI inflow-one of
the most dynamic and largest FDI recipients in Africa (UNCTAD World
Through a coordinated, prudent
fiscal policy and a tight monetary policy, combined with a slowdown in
global commodity prices, the Government has brought down inflation to
Ethiopia is ranked 57th which,
is higher than its regional peers (Kenya, Rwanda and South Africa) for its
conducive macroeconomic environment (World Economic Forum, Global
Growth forecasts of more than 7%
from the International Monetary Fund and the African Development Bank
place Ethiopia among the world’s growth leaders over the medium term.
On IMF recent visit to Ethiopia
on September they published an article and it suggested that Ethiopia
growth could be more than the expected one which was 7.5% for the fiscal
year 2018/19 but because of the political change and economic reforms This
growth is expected to be 8.5%
3.Excellent climate and fertile soil
Ethiopia is the 27th largest
country in the world by land size and given its diverse topography and
geographical location, it is suitable for the production of some of the
world’s most coveted food crops - cereals, pulses, oil seeds, a wide range
of fruits and vegetables, coffee, tobacco, sugar cane, tea and spices,
Much of Ethiopia has a
surprisingly temperate climate by African standards due to its elevation.
Ethiopia has an elevated central plateau varying in height from 2,000 to
3,000 meters above sea level.
Thanks to its fertile soils,
Ethiopia is among the world’s largest producers of coffee, and the 3rd
largest producer of Arabica beans in the world (US Department of
Agriculture). Ethiopia also is among the top non-EU exporter of cut-flower
to the EU market and the 2nd largest flower exporter from Africa.
4.Strong guarantees and protections
Private property is protected by
the Constitution and the investment law.
A foreign investor has the right
to make remittances out of Ethiopia in convertible foreign currency at the
prevailing rate of exchange.
Ethiopia is a member of the
Multilateral Investment Guarantee Agency (MIGA), a World Bank affiliate which
issues guarantee against non-commercial risks in signatory countries, and
of the World Intellectual Property Organization (WIPO).
Ethiopia has concluded over 30
bilateral investment promotion and protection agreements, of which 11 are
with individual European Union Member States. Significant other partners
include China, India, South Africa, and Russia, and a number of regional
economic partners (Israel, Egypt, and Sudan, among others).
5.Young and trainable labor force
Ethiopia’s labor law, which regulates
worker-employer relations, is in line with international conventions.
Ethiopia is the second most
populous country on the continent with a working population of 60%
Ethiopia has a young and
trainable labor force and supportive government policy that facilitates
labor sourcing for industries.
6.Regional hub with access to a wide market
With a population of appx. 100
million people and a rapidly growing middle-class society, Ethiopia is the
second largest market in Africa, and is also part of the Common Market for
Eastern and Southern Africa (COMESA) comprising 19-member countries and
over 400 million people.
Addis Ababa has emerged as a
regional hub and is home to key international organizations such as the
African Union (AU) and the United Nations Economic Commission for Africa.
Addis Ababa is also the main air
hub for Africa and the home of Ethiopian Airlines, which has won repeated
recognition as the best airline in Africa. Ethiopian Airlines offers
flights to 101 international passenger destinations (57 in Africa, 20 in
Europe and America and 23 in the Middle East and Asia), 22 domestic
passenger destinations, and 35 cargo destinations (21 in Africa, 11 in the
Gulf, Middle East and Asia, and 3 in Europe). It carries two thirds of
Africa’s air freight.
Ethiopian products have duty-free,
quota-free access to wide market:
Large domestic market,
COMESA (Common Market for
Eastern and Southern Africa),
19 member countries,
Over 400 million people
AGOA (African Growth and
Opportunities Act) and GSP (Generalized system of preference) of the
United States Government initiatives, and
EBA (Everything but Arms) of
the European Union.
7.Improved economic infrastructure
Power production has increased
steadily over the last ten years, with 99% sourced from clean energy in
the form of hydropower. Ethiopia has the second largest hydropower
potential in Africa (Deloitte, 2014), and the country’s installed
electricity generating capacity is expected to reach 10,000 MW by
mid-2015.The Grand Ethiopian Renaissance Dam – the largest hydroelectric
power dam in Africa being built on the Nile river - is expected to
generate 6,000MW electricity. This coupled with Gilgel-gibe III (1,870MW)
and Genale-Dawa III (254MW) and other wind power projects will make
Ethiopia a regional power house.
Cheapest electricity rate in
Africa and the whole world.
Expanding and improving
Expanding road networks
connecting national and regional markets.
Newly built Addis-Djibouti
electric-powered railway - making access to port Djibouti much easier.
Other standard gauge networks are in pipeline. As a significant portion of
Ethiopia’s import/export trade passes through port Djibouti, the rail way
construction is a huge efficiency enhancer for producers and traders. As
part of this big project, a 34 km Addis Ababa light rail is fully
operational while a new 756 km Addis Ababa-Djibouti electrified railway
route is well completed in 2016.
Africa’s world class and star
alliance member Ethiopia Airlines the passenger network covers more than
90 international destinations in the five continents in Africa, Asia,
Europe South and North America. As an African Airline Ethiopian Airlines
flies to more than 50 destinations in Africa alone.
8.Competitive incentive packages
·Ethiopia offers a
comprehensive set of incentives, particularly for priority sectors, such as:
oCustoms duty payment exemption on capital goods and construction
materials, and on spare parts whose value is not greater than 15% of the
imported capital goods’ total value;
oInvestors have the right to ask refund of customs duty paid on
inputs (raw materials and components) when buying capital goods or construction
materials from local manufacturing industries.
oIncome tax exemption of up to 6 years for manufacturing and
agro-processing, and of up to 9 years for agricultural investment. Additional
2-4 years income tax exemption for exporting investors located within
industrial parks and 10-15 years exemption for industrial park developers;
oCarry forward of losses for half of the tax holiday period;
oSeveral export incentives, including the Duty Draw-Back,
Voucher, Bonded Factory and Manufacturing Warehouse, and Export Credit
·In addition, the government guarantees the remittance of profit,
dividends, principals and interest payments on external loans, and the
provision of land at competitive lease prices.
High level political commitment
for investment promotion and protection, investment policy making is led
by the Ethiopian investment board chaired by the prime minister.
Wide-ranging incentive packages
for priority sectors and export oriented investments.
Bold initiative in the
development of state-of the art industrial parks, electric powered railway
connecting the capital and other economic corridors to the port of