Investors are Welcome

The Ethiopian Economy is predominantly agrarian, with agricultural produce contributing 45% of gross domestic product (GDP), 62% of the total export and 85% employment. Manufacturing, mining, trade, tourism construction, services, etc. make up the remaining 55% of the GDP. Industry contributes only 11% of the GDP, and 16% total export of the country.According to the Economic Freedom index, published annually by the Heritage Foundation in the United States, noted in 2004 that Ethiopia offered the second-most-improved business environment in the world. The ranking was based on improvement in four areas: trade policy, foreign investment, fiscal burden and government intervention.With its market oriented economic policy, a liberal investment law, fast service delivery by the Ethiopian Investment Commission (the responsible body dealing with foreign investors) and with the number of opportunities stated below, it is the right time to invest in Ethiopia. The Embassy of the Federal Democratic Republic of Ethiopia in Dublin is always ready to cooperate with those who have interest to invest in Ethiopia

 

Why Invest in Ethiopia

There are a number of reasons why potential investors would find it well worth their while to consider Ethiopia as a location for investment:

  •      Stable political Climate
  •      Free market economy
  •      Conductive macro economic policies and stable foreign exchange
  •      Excellent climate and fertile soils
  •      Huge local market of 70 million people
  •      Access to 23 African countries through the Common Market for Eastern and Southern Africa          (COMESA)
  •      Preferential treatment to the European market under the ACP-EU Convention
  •     Beneficiary of market access to the USA through the African Growth and Opportunity Act (AGOA)
  •     Favorable export market status under the US Generalized System Preference (GSP)
  •     Huge domestic raw material base Abundant, easily trainable and inexpensive labour force
  •     Strategic location with proximity to the lucrative markets of the Middle East, Europe and Asia
  •     Attractive incentive packages
  •     Participation in the privatization opportunities

 Good Reasons to Invest In Ethiopia

he Ethiopian Economy is predominantly agrarian, with agricultural produce contributing 45%of gross domestic product (GDP), 62% of total export and 85% employment. Manufacturing, mining, trade, tourism construction, services, etc, make up the remaining 55% of the GDP. Industry contributes only 11% of the GDP, and 16% total export of the Country.

Due to diverse weather conditions, a wide variety of crops are grown in different parts of Ethiopia. But Coffee Arabic, sold in Japan, as mocha is the main cash crop bringing the largest portion of the country’s foreign currency. Other cash crops include oil seeds (i.e. sesame, Soya beans), pulses (horse beans, lentils), cotton, fruits and sugarcane, to mention only a few. However agriculture remains largely in the hand of small holders who use less technology, making the sector more receptive to technological adaptations and attractive to investment.

Manufacturing is currently at its lowest level, only contributing 11% to National income. But it’s a sector, which is fast growing and presents an attractive opportunity for investors. Currently Ethiopia exports clothing and apparel, canned and frozen meat, semi-processed hides and skins, sugar and molasses, footwear and gloves, tobacco, beverages, oil cakes and bees wax to the world market.

Although only 3% GDP comes from mining sector at the moment, there are proven reserves of minerals like gold, tantalum, nickel, iron-ore, coal, marble, potash, copper, silica, etc, as well as oil and natural gas awaiting exploitation, making the Country very attractive to both foreign and domestic investors.

Following the fall of the military regime and the abolishing of the centrally command economy in 1991, the Government has embarked upon radical reforms to transform the economy to free market, speed up integration to the world economy and encourage wider participation of the private sector. The reforms include devaluation of local currency and introduction of inter-bank foreign currency market based on World market forces, deregulation of domestic prices, abolishing of all export taxes and subsidies, liberalization of foreign trade, reduction of taxes, privatisation of public enterprises, promulgation of a highly competitive investment code, etc. As the result the reforms, the economy has shown a marked improvement with growth rate averaging 6.3% in the last several years. Inflation rate was brought down from 20% in 1992 to an average of 4% in the last ten years. The country’s foreign exchange has also stabilized and the budget deficit has declined to acceptable level. But above all private investment activities have flourished.

In the last nine months alone new investment amount to 10 billion Birr (roughly US$ 1.16), more than half of which belongs to foreign investors. Compared to previous years foreign investment has shown a capital increase of 28%. This is very significant and a clear indication of how fast Ethiopia is becoming one of the major investment destinations in Africa.

Out of several factors that can be sighted as good reasons for investors to consider investing in Ethiopia, four stand out as indicated by recent revised draft issued jointly by the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO).

Perhaps the most important of these is the security and stability of the Country. Though the Country is very much diverse in many aspects, it offers a very stable political and economic environment with very little crime and disorder. Secondly, the market is one of the largest domestic markets in Africa with 72 million consumers. Though currently limited by low purchasing power, it’s growing steadily with GDP growth rate averaging 6.3 in the last ten years.

The third reason is the Country’s exceptional climate. Forty Five percent of the landscape consists of highlands with pleasant temperature averaging between 15 and 20 degree Celsius. The climate offers an excellent opportunity for various agricultural activities. Anything can grow in Ethiopia. Lastly Ethiopia is exceptional among the least developed countries, in its virtual absence of routine corruption. This is true for both public sector and the broader society, making the cost of doing business cheaper. The moral value is being strengthened further by the on going civil service reform.

Ethiopia represents a unique business and Investment opportunity not found anywhere. We therefore hope the Irish business community take this opportunity to go and invest in Ethiopia. The Country, the Government and the people are ready to receive them with the legendary hospitality.

 

LIST of State-Owned Enterprises to be Privatized

No. Name of Enterprise Location

FOOF INDUSTRY
1 Addis Modjo Edible Oil S.C Addis / Modjo
2 Kality Food S.C Addis Ababa
3 Dire Dawa Food Complex S.C Dire Dawa
4 Fafa Food S.C Addis Ababa
5 Hamaressa Edible Oil S.C Harar
6 Ethiopia Spice Extraction Addis Ababa
7 Yerer Flour S.C Nazareth
8 Bahir Dar Edible Oil S.C Bahir Dar
9 Tigray Flour S.C Quiha
10 Ada Flour & Pasta Factory Debre Zeit
11 Awassa Flour S.C Awassa
12 Addis Candy Factory Addis Ababa

BEVERAGE INDUSTRY
13 Bedele Brewery S.C Bedele
14 Harar Brewery S.C Harar
15 Meta Abo Brewery S.C Sebeta
16 National Alcohol Liquors S.C Addis Ababa
17 Addis Ababa Bottle & Glass S.C Addis Ababa
18 Babile Mineral Water Factory Harar

GARMENT INDUSTRY
19 Addis Garment S.C Addis Ababa
20 Akaki Garment S.C Akaki
21 Gulele Garment S.C Addis Ababa

LEATHER & SHOE INDUSTRY
22 Ambessa Shoe S.C Addis Ababa
23 Addis Ababa Tannery S.C Addis Ababa
24 Modjo Tannery S.C Modjo
25 Kombolcha Tannery S.C Kombolcha
26 Tikur Abay Shoes S.C Addis Ababa
27 Rubber & Canvas Shoes Addis Ababa

ENGINEERING INDUSTRY
28 Akaki Spare part S.C Akaki

COFFEE
29 Coffee Plantation & Dev’t Enterprise * Jimma

PUBLIC TRANSPORT
30 Abay Technical Serv. Enterprise * Addis Ababa
31 Walia Public Transport Enterprise * Addis Ababa

FREIGHT TRANSPORT
32 Addis Mechanical Enterprise * Addis Ababa
33 Bekelcha Transport Enterprise * Nazareth
34 Shebele Transport Enterprise * Addis Ababa
35 Woyre Transport Enterprise * Addis Ababa

CONTRACTORS
36 Awash Construction Enterprise Addis Ababa
37 Batu Construction Enterprise Addis Ababa
38 Blue Nile Construction Enterprise Addis Ababa
39 Water Works Construction Enterprise Addis Ababa

CONSTRUCTIONS DESIGN
40 Building Design Enterprise Addis Ababa
41 Transport Construction Design Ent.. Addis Ababa

HORTICULTURE
42 Horticulture Development Ent. Addis Ababa
43 Upper Awash Agro. Industry Merti-Jeju
44 Etfruit Addis Ababa

PHARMACEUTIAL
45 PHARMID Addis Ababa
46 EPHARM Addis Ababa

BASIC METAL ENGINEERING INDUSTY
47 Ethio-Iron & Steel Akaki
48 Kality Metal Kaliti
49 Kotebe Metal Addis Ababa
50 Kolfe Household Addis Ababa
51 Nazareth Tractor Nazareth

HOTEL & TOURISM
52 Ethiopian Tourist Trade Enterprise Addis Ababa
53 National Tour Operators (NTO) Addis Ababa
54 Ras Hotels Addis Ababa
55 Ethiopian Hotels Addis Ababa

SHARE COMPANIES
56 Pulp & paper Factory S.C Wonji
57 Crown Cork S.C Akaki
58 Ethio-Japan Textile S.C Modjo
59 AMCE (Truck Assembly) S.C Addis Ababa

AGRI SERVICES
60 Coffee Technology Development Addis Ababa
61 Fish Product & Marketing Enterprise * Addis Ababa
62 Natural Gum Marketing Enterprise * Addis Ababa
63 Agricultural Equipment & Technical Addis Ababa

CONSTRUCTION
64 Addis Block S.C Addis Ababa
65 Water Wells Drilling Enterprise Addis Ababa
66 Building Materials Supply Enterprise Addis Ababa
67 Bole Bulbula Construction Material Addis Ababa
68 Housing Construction Enterprise Addis Ababa
69 Ethio-Marble Addis Ababa
70 Prefabricated Building Production Addis Ababa
71 Tabor Ceramics S.C Awassa
72 ECAFCO Addis Ababa
73 Ethiopian hard & Soft Board Fact Addis Ababa
74 Sawmill & Joineries Addis Ababa

MINING
75 Abijata Soda Ash S.C Abijata
76 Ethiopian Mineral Dev’t Enterprise Addis Ababa

TEXTILE
77 Debre Berhan Blanket Debre Berhan
78 Adei Ababa Yarn Factory Addis Ababa
79 Ethio-Fiber Factory Akaki
80 Meher Fiber Factory Akaki
81 BahirDar Textile S.C BahirDar
82 Dire Dawa Textile Factory Dire Dawa
83 Edget Yarn & Sewing Thread Addis Ababa

AGRICULTURE
84 Dairy Development Enterprise Addis Ababa
85 Middle Awash Agricultural Awash
86 Bale Agricultural Dev’t Enterprise Robe
87 Abobo Agricultural Dev’t Enterprise Abobo
88 Arsi Agricultural Dev’t Enterprise Arsi
89 Awassa Agricultural Dev’t Enterprise Awassa
90 North Omo Agricultural Devt’ Arba Minch
91 Tendaho Agricultural Devt’ Assaita

PRINTING
92 Yekatit Paper Convert Addis Ababa
93 Artistic Printing Addis Ababa
94 Bole Printing Addis Ababa
95 Commercial Printing Addis Ababa

CEMICAL
96 Nefas Silk Paint Factory Addis Ababa
97 Ethiopian Plastic S.C Addis Ababa
98 Addis Ababa Foam & Plastic Factory Addis Ababa

TRADE
99 M’S Whole Sale & Import Trade Addis Ababa

* Restricted for local investors

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LIST of Enterprises in search of Strategic Partners

No. Preferred Modality Sector Name of Enterprise
1 JV-Equity Textile Akaki Garment S.C.
2 JV-Equity Textile Akaki Textile S.C.
3 JV-Equity Textile Kombolcha Textile S.C.
4 JV-Equity Textile Bahar Dar Textile S.C.
5 JV-Equity Leather Blue Nile Shoe S.C.
6 JV-Equity Construction Tabor Ceramics S.C.
7 JV-Equity Food Kaliti Food S.C.
8 JV-Equity Food Dire Dawa Food Complex S.C.
9 JV-Equity Cement Dire Dawa Cement Factory
10 JV-Equity Agriculture Upper Awash Agro-Industy Enterprise
11 JV-Equity Beverage Assela Malt Factory
12 JV-Equity Agriculture Dairy Dev’t Enterprise
13 JV-Equity Textile DebreBrhan Blanket Factory
14 JV-Equity Chemical Addis Ababa Bottle & Glass S.C
15 JV-Equity Food Addis Modjo Edible Oil Complex S.C.
16 JV-Equity Food Fafa Food S.C.
17 JV-Equity Mining & Mineral Ethiopian Mineral Dev’t S.C.
18 JV-Equity Chemical Awash Aluminum sulfate & sulfuric Acid Co
19 JV-Equity Chemical Adami Tulu Pesticide Processing S.C. *
20 JV-Equity Agriculture National Veterinary Institute
21 JV-Equity Others Industrial Project Service
22 JV-Equity Agriculture Horticulture Dev’t Enterprise
23 JV-Equity Textile Ethiopian Fiber Products
24 JV-Equity Textile Meher Fiber Products Factory
25 JV-Equity Construction Ethiopian Marble Industry
26 JV-Equity Food Ethiopian Spice Extraction Factory
27 JV-Equity Pharmacy & Health Ethiopian Pharmaceutical Manufacturing Co
28 JV-Equity Beverage Babile Mineral Water Factory
29 JV-Equity Agriculture Coffee Plantation & Dev’t Enterprise
30 JV-Equity Chemical Caustic Soda S.C.
31 JV-Equity Textile Adei Ababa Yarn S.C.
32 JV-Equity Textile Addis Garment S.C.
33 JV-Equity Textile Dire Dawa Textile Factory
34 JV-Equity Textile Arba Minch Textile S.C.
35 JV-Equity Leather Anbesa Shoe S.C.
36 JV-Equity Leather Ethiopia Rubber & Canvas Shoes Factory
37 JV-Equity Textile Gullele Garment S.C.
38 JV-Equity Textile Nazareth Garment S.C.
39 JV-Equity Leather Modjo Tannery S.C.
40 JV-Equity Leather Addis Ababa Tannery S.C.
41 JV-Equity Leather Kombolcha Tannery S.C.
42 JV-Equity Textile Edget Yarn Factory
43 Lease Transport Shebelle Transport S.C.
44 Lease Transport Walia Liter-City Bus Service Enterprise
45 Lease Transport Woyra Transport S.C.
46 Lease Transport Bekelcha Transport S.C.
47 Lease Wood ECAFCO S.C.
48 Lease Wood ETHARSO Factory
49 Lease Wood Ethiopia Ply Wood Factory
50 Lease Food Kokeb Flour & Pasta Factory
51 Lease Food Misrak Flour & Bread Factory
52 Lease Food Bahir Dar Edible Oil S.C.
53 Lease Food Yerer Flour S.C.
54 Lease Food Tigray Flour & Edible Oil Sh. Co.
55 Lease Food Adama Edible oil Factory
56 Lease Food Ada Flour & Pasta Factory
57 Lease Food Nazareth Edible Oil Factory
58 Lease Wood Sawmills & Joineries Enterprise
59 MC Agriculture Coffee Technology Dev’t & Engineering Enter
60 MC Construction Awash Construction S.C.
61 MC Construction Batu Construction S.C.
62 MC Construction Water Well Drilling Enterprise
63 Lease Agriculture Abobo Agricultural Dev’t Enterprise
64 MC Agriculture Agricultural Equipment & Technical Service
65 Lease Agriculture Agricultural Mechanization Service Enterprise
66 JV-Equity Agriculture Arsi Agricultural Dev’t Enterprise
67 JV-Equity Agriculture Awassa Agricultural Dev’t Enterprise
68 JV-Equity Agriculture Bale Agricultural Dev’t Enterprise
69 JV-Equity Agriculture Coffee Processing & Warehouse Enterprise
70 JV-Equity Agriculture Ethiopian Fruit & Vegetable
71 JV-Equity Agriculture Fish Production & Marketing Enterprise
72 JV-Equity Agriculture Kaliti Animal Feed Enterprise
73 JV-Equity Agriculture Middle Awash Agricultural Dev’t Enterprise
74 JV-Equity Agriculture Natural Gum Production Marketing Enterprise
75 JV-Equity Agriculture Semen-Omo Agricultural Dev’t Enterprise
76 JV-Equity Agriculture Tendaho Agriculural Dev’t S.C.
77 JV-Equity Beverage Ambo Mineral Water Factory
78 JV-Equity Beverage Bedele Brewery S.C.
79 JV-Equity Beverage Harar Brewery S.C.
80 JV-Equity Beverage National Alcohol & Liquor Factory
81 JV-Equity Chemical Addis Ababa Foam & Plastic Factory
82 JV-Equity Chemical Alkyd Resin S.C.
83 Lease Chemical Chora Gas & Chemical Factory
84 Lease Chemical Nazareth Soap Factory
85 Lease Chemical Nefas Silk Paint Factory
86 JV-Equity Construction Addis Block Production S.C.
87 JV-Equity Construction Blue Nile Construction S.C.
88 JV-Equity Construction Building Materials & Supplies Enterprise
89 JV-Equity Construction Prefabricated Building Parts Construction
90 JV-Equity Construction Residential Houses Construction Enterprise
91 JV-Equity Food Hamressa Edible Oil S.C.
92 JV-Equity Hotel & Tourism National Tour Operation Enterprise
93 JV-Equity Hotel & Tourism SPA Service Enterprise
94 JV-Equity Mining & Mineral Abijata Soda Ash S.C.
95 JV-Equity Mining & Mineral Bole Bulbula Construction Stone Production SC
96 JV-Equity Mining & Mineral Adola Gold Dev’t
97 MC Pharmaceutical Pharmaceutical and Medical Supply S.C.
98 Lease Printing Artistic Printing Enterprise
99 Lease Printing Bole Printing Enterprise
100 Lease Printing Commercial Printing Enterprise
101 JV-Equity Printing Educational Materials Production & Distr.
102 JV-Equity Printing Ethiopian Pulp & Paper Factory S.C.
103 Lease Printing Gonder Printing Enterprises
104 JV-Equity Printing Yekatit paper Converts Enterprise
105 Lease Sugar Addis Ketema Candy Factory
106 MC Trade Procurement Service Enterprise
107 MC Trade Merchandise Wholesale & Import Trade
108 Lease Transport Comet Transport S.C.
109 JV-Equity Hotel & Tourism Ethiopian Tourist Trading Enterprise
110 MC Hotel & Tourism Ethiopia Hotel
111 MC Hotel & Tourism Ras Hotel
112 JV-Equity Sugar Wonji/Shoa Sugar-Baker Yeast Project
113 JV-Equity Chemical Abjiata Soda Ash S.C.
114 JV-Equity Textile Ethio-Japan Synthetic Textile S.C.

* Enterprises under partnership process.

Last Updated (Tuesday, 21 December 2010 18:15)