Information for Investors

Natural Resources

STRONG NATURAL RESOURCE BASE

• Good rainfall, rich soils and favourable temperature range. Climate is identified by the UN and ICC as 'exceptional', offering ”an excellent environment for various agricultural activities”

• Unexploited mineral deposits, specifically gold, tantalum, platinum, nickel, potash and soda ash

• More than 80 million hectares of arable land and about 4 million hectares of irrigable land

• Diverse natural, historical and cultural tourist attraction with wide area of opportunity for development.

• More than 45,000mw hydropower, 10,000mw wind energy and 5000mw geothermal energy potential.

• Both urban and rural land is available for investment on leasehold basis. Lease right over land can be transferred, mortgaged or sub-leased together with on-build facilities. Leaseholders have the right to use urban land for up to 60 years in Addis Ababa and in a town designated as of the grade of Addis Ababa, and up to 80 years in other towns. The period of lease may also be renewed. The average raft estimated costs of land in industrial zones designated are as follows:

• Addis Ababa US$ 11.60-21.55 per m2 for the lease period

• Dire Dawa US$ 0.44-0.77 per m2 for the lease period

• Oromia US$ 5.55-6.55 per hectare per year

• Southern Nation, Nationalities and Peoples’ Regional State US$ 3-5 per hectare per year

• Amhara US$ 1.13-6.00 per hectare per year

• Tigray* US$ 2.36-3.16 per hectare per year