Information for Investors

Additional Information

Why do we choose Ethiopia for Investment?

Ethiopia is an ancient, independent and stable country in Africa. The people enjoy independent, free and democratic country. The government has a system of Federal Government, having regional States, strong and powerful system of administration. It is an African country where peace and stability cherishes. The atmosphere is most convenient for investment. Ethiopia is known for its untapped resources and fertile land suitable for agriculture.

On top of this, Ethiopia has moderate climate and sufficient rainfall throughout the year. In Ethiopia one can observe 13 months of sunshine. This is a great gift and blessing of God. Today, Ethiopia has attracted the attention of well-known and potential investors and international businessmen investing in all sectors of our economy. All the investors have come to Ethiopia because Ethiopia has a wonderful, conducive social, political and economic environment in which they can invest, grow and be successful. Ethiopia has a solid tradition of investments in agriculture and agro-processing.

Ethiopia is an ancient, independent, and stable country in Africa. It has untapped resources and fertile land suitable for agriculture. Its democratic and powerful system of government makes it helpful to enter into investment. Ethiopia has moderate climate and sufficient rainfalls throughout the year. In Ethiopia, one can observe “13 months of sunshine”. This is a great gift of God. Moreover, it is situated in a cross-road zone to Africa, the middle-east and Europe, and beyond that.

To mention a few, Ethiopia is the seat of the African Union (AU), the United Nations Economic Commission for Africa (UNECA), foreign embassies and different organizations. It is obvious that Ethiopia has abundant and affordable labor force, which is governed by Labor Law. Besides this, the minimum wage for labor is considerably cheap compared with other countries of the world.

  1. Regional Hub with Access to a Wide Market

Ethiopia has a population of 90 million people, and is the second largest market in Africa. It is also part of the Common Market for Easter and Southern Africa (COMESA). This comprises 19 member countries and over 400 million people.

Addis Ababa is the capital city of Ethiopia and is home to key international organizations mentioned above. It has also the best airliner in Africa having 17 domestic destinations and offers flights to over 80 international destinations, and is known that it carries two third’s of Africa’s air freight.

On top of this, Ethiopia products have duty free, quota-free access to the U.S. and EU markets under the African Growth and Opportunities Act (AGOA).

 

  1. Competitive Incentive Packages

Ethiopia provides or allows a Customs duty payment exception on capital goods and construction materials, also on spare parts which value is not greater than 15% of the imported capital goods’ total value.

  1. Strong Guarantees and Protections

The Ethiopian Constitution and the Investment Law fully protect and guarantees private property of investors who launch different projects in the country.

Foreign investors have the rights to mate remittance out of Ethiopia in exchangeable foreign currency. It is known that Ethiopia is a member of the Multilateral Investment Guarantee Agency (MIGA), World Bank affiliate which issues guarantee against non-commercial risks in signatory countries, and of the World Intellectual Property Organization (WIPO).

  1. Income Tax Exemption

There is the opportunity for income tax exception from two to seven years on manufacturing or agro-processing and agricultural investments.

 

Carry forward as losses for half of the tax holiday period several export incentives, including the duty draw-back, voucher, bonded factory and manufacturing warehouse, and export credit guarantee schemes.

There are additional privilege that government guarantees such as remittance of profit, dividends, principals and the provision of land at competitive lease prices.

  1. Ethiopia is suitable place to live and work
  2. Visa and immigration requirements

All foreign visitors who intend to come to Ethiopia need to have visa.

  1. Health Requirements
  2. All foreign visitors who please to come to Ethiopia should have valid health certificate for yellow fever, vaccination against cholera…

 

Location

 Ethiopia is found in the north eastern part of Africa known as “Horn of Africa.” It enjoys a unique location at crossroads between Africa, the Middle East, and Asia. Ethiopia is bordered by Djibouti and Somalia to the East, Eritrea to the North, the Sudan to the West and Kenya to the South.

Geographic Coordinates

Ethiopia extends from 3 degrees – 15 degrees north of the Equator, and 33 degrees – 48 degrees east of the Greenwich Meridian.

Demography

Total Population                      90million

Female Population                  49.5%

Male Population                      50.5%

Rural Population                     83.92

Urban Population                    16.12

Population Growth Rate         2.6% per annum

Total Fertility Rate                  5.42% per annum

Population Density                 68.9 person/sq.km

Crude Mortality Rate              510/1000

Infant Mortality Rate              77/1000

 

Life Expectancy

Male                53.42 years

Female             55.42 years

 

Broad Age Structure

0-14 years                    45%

15-64 years                  51.9%

65 and above               3.1%