Why Ethiopia is top destination for investment in Africa?


Committed political leadership

Ethiopia is going under bold political and economics reforms to ensure stability, increase public participation
The Government has recently decided to partially open up key sectors such as Telecommunication, Electricity, Airlines, etc… to sustain economic growth
The Government has prioritised improving ease of Doing Business as a key economic reform and it’s championed by the Prime Minister
High level political commitment for promoting and supporting investment
Bold initiatives and flagship projects such as Industrial parks with generous incentives and world class infrastructure (please see flagship projects section)
Wide-ranging incentive packages for strategic sectors and export-oriented investments (please see government support section)

Conducive economic environment

Overall Economy Ethiopia's economy experienced strong, broad-based growth averaging 10.3% a year from 2007 to 2016/17 (World Bank Global Economic Prospects).
Ethiopia is one of the leading FDI flow receivers in Africa ($4 billion in FY2017/2018)
InfrastructureNewly built Addis-Djibouti electric-powered railway connects key industrial hubs of the country to Djibouti port
Africa’s world-class and Star Alliance member Ethiopian Airlines flies to more than100 passenger and 36 dedicated cargo International destinations and also 20 domestic passenger destinations
Enormous investment potential in renewable energy including hydro, wind and geothermal; Grand Ethiopian Renaissance Dam – the largest hydroelectric power dam in Africa under construction expected to generate additional 6,000MW electricity
Expanding telecommunication services with 58 million mobile subscribers (FY 2016/17)

Favorable market factors

Strategic location with proximity to the Middle East, Europe and Asia.
59 million active labor force (World Bank, 2017); trainable and available at competitive wage rate.
Enormous domestic market with more than 100 million population
Duty-free, quota-free access to the USA and EU markets through AGOA and EBA, respectively
Duty-free, quota-free access to Japan, Canada, China, Turkey, Australia and New Zealand – covering substantially all export goods from Ethiopia and preferential market access to India
Member of COMESA with preferential market access to a regional market of 400 million people.
Ethiopia had ratified the African Continental Free Trade Area