The information in this booklet is based on investment proclamations, tax law, legislative. This has led to an opening for local business opportunities for ethiopian people. Execution of investors requests to acquire water, electrical power and. The gradual shift to private ownership, which is being overseen by two government agencies, the ethiopian investment authority and the ethiopian privatization. The contribution of investment on gdp occupies a sound share in many countries including ethiopia. Private sector development in agriculture projects ata. The economy of ethiopia is growing stronger with each passing day. Ethiopia, by the ethiopian investment authority eia and the ethiopian commission on science and technology ecst. This week we travel to to the horn of africa for a closer look at the investment opportunities and challenges in the east african nation of ethiopia. The confidence among entrepreneurs and prospective entrepreneurs that contracts will be enforced and disputes will be resolved quickly, judiciously, and authoritatively is an essential element of a sound investment. I, berhanu zeleke gobaw, declare that challenges and opportunities of development in ethiopia through urbanrural economic linkages urels is my own original work and this work has not submitted before for any other degree at any unisa for another qualification or at any other higher education institution. Ethiopia s contribution to the emissions of ghgs is likely to increase with the. For further information read ethiopian investment guide 2015 or visit vestethiopia.
Promising investment opportunities in ethiopian agribusiness agricultural transformation agency may 2016, wef grow africa. Ethiopia has become a preferred destination for foreign direct investment and emerging. Overview of ethiopia s investment policies and incentives the policy for ethiopian investment has been modified in the last 20 years for more than 4 times. In part i of top 5 opportunities for investment in ethiopia, i recommended financial services, telecoms, and heavy constructions as sectors that investors should look into. Ethiopia is signatory of multilateral investment guarantee agency. Top 5 opportunities for investment in ethiopia part ii. Ethiopia has great potential for investments for several reasons. Private sector investment in power generation is highly encouraged. Strikingly, potential investment opportunities seem to barely travel through formal channels, such as through the investment promotion agency or other government agencies. Whether the grains are brought for milling by the customer.
This page contains a guide to the existing investment. Overview of ethiopian investment opportunities and policies. Ethiopian business development services network ebdsn p. It is responsible for facilitating the implementation of new investment projects, providing after care services for new and existing investments, as well as organizing investment promotion. Ethiopia has a tremendous potential for renewable energy generation hydropower generating capacity of about 45,000 mw, wind power of about 10,00 mw, and geothermal capacity of about 5,000 mw. Ethiopia has abundant and easily trainable labor force. Trade between the two countries is showing an encour. If yes, here are 50 best small scale business ideas and investment opportunities in ethiopia you can start in 2020. Huge investment potential in renewable energy including hyrdo, wind and geotermal. Investment opportunities in mekelle, tigray state, ethiopia. Ethiopian investment policy the ethiopian constitution and the investment law guarantee protection of private property and investment in addition, ethiopia is a signatory of 29 bilateral investment treaties and 6 multilateral investment agreements that stipulate.
Undertaking a carbon neutral economy is an opportunity for ethiopia for it is in line with the resources that it is endowed with. Ethiopia is known as a mosaic of people with more than 80 languages, different costumes, cuisines, dances and music. Fao investment food and agriculture organization of the united. The other investment limitations by banks are generally matters of regulating the scope of investment in banks by eligible investors and controlling the scope of services to be rendered by banks and scope of equity investment. Many companies have had successful experiences in ethiopia after making the decision to invest.
Ethiopia investment guide 20172018 aln ethiopia mesfin. Ethiopia once the byword for famine in the region is garnering attention from foreign investors. Ethiopas investment commission eic is mandated with promoting investments in ethiopia. Over the past two decades, mekelle has experienced rapid growth as the capital of the regional state of tigray. Areas of investment opportunities and incentives setting up an investment operating an investment factors at a glance legal and institutional framework annexes 3 5 6 18 22 23 28 32 1 an investment guide to ethiopia. Some of the top investment opportunities are in export. Introduction to what extent are the fundamentals of ethiopian foreign policy aligned with the multipolar global. This is due to the increase in population in ethiopia.
Ethiopian netherlands business event 56 november 2015, rijswijk, the netherlands. This has led to an increase in business opportunities in the. Privilege is given to full repatriate profits, dividends, principal and interest payments on external loan, etc. Ethiopia is politically and macro economically stable. Promoting the countrys investment opportunities and conditions to foreign and domestic investors. Foreign direct investment fdi in ethiopia investing. Investment opportunities in the ethiopian poultry subsector. Developing a precut and packaged fruit and vegetable industry in ethiopia offers an investment opportunity, particularly for investors with expertise in horticulture and retail. Opportunities and challenges of investment activities. We have been impressed all along by the positive attitude towards our inward investment by the ethiopian government. Many companies have had successful experiences in ethiopia. Firstmover investment opportunities 3 political stability. Ethiopia s vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars ethiopian investment comission 4 ethiopia envisions to become a middle income country and leading manufacturing hub in africa by 2025. Investment opportunities includes commercial cotton production, spinning, weaving and garment.
The study shows an overview of ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution. Ethiopia has envisioned doing all it can to build cncre because. Highlights of investment opportunities and conditions in. Its aim was to provide prospective foreign direct investors with an overview of investment project opportunities linked to domestic enterprises. Challenges, opportunities and policy options for effective use to stimulate industrialization. Despite this, a number of factors have an adverse effect on it. Visit ethiopian pavilion at dubai expo 2020,visit ethiopia at dubai expo 2020 for huge business exchange and investment opportunities. It expands the productive capacity of a nation and plays a crucial role in the economic growth and development process. Tapping into the dutch investment opportunity and potentials in ethiopia, the dutch government has included ethiopia in almost all financial instruments available for the private sector encouraging investment in developing countries.
The ethiopian government has formulated and started the implementation of the second five year growth and transformation plan. Businesses for sale and investment opportunities in. Foreign direct investment in ethiopia dropped by a fifth in the first half of the countrys fiscal year after violent antigovernment protests in which foreignowned businesses were targeted. Investment opportunities in the ethiopian dairy sector. Strategic and tactical issues of ethiopia s foreign policy. With doubledigit rates of gdp growth, 3 billion usd of foreign direct investment fdi in 2016 the second highest level of all ldcs1, and strong assessments by international credit rating agencies, ethiopia has made huge advances in its goal of reaching middle. Great investment opportunity in tigrai state northern ethiopia. The liberalization of the economy prompted improved incentives and more efficient marketing in the country.
Ethiopia investment policies and incentives and opportunities. Introduction investment is an act of current spending for expected future return. While attracting investment is an important priority for landabundant african countries, caution is warranted to pre vent speculative investments or arrangements in which local land rights are lost or landholders are excluded from the benefits of the investment. Addressing national investment agendas ona continental scale september 16 sector study conducted by agrilogic and valued chain by assignment of. Highlights of investment opportunities and conditions in ethiopia. We know the country and the ethiopian people well over a period of many years and so we know already that. Ethiopia has a variety of touristic heritage among which nine are recognized as world heritage sites by unesco. This booklet will inform you about the investment opportunities, priority areas, incentives and market accessibilities. Pdf on apr 1, 2017, mulu gebreeyesus and others published foreign direct investment in ethiopia. Pdf the contribution of foreign direct investment for. Theres no doubt ethiopia is on an upward growth trajectory as an emerging source of textiles and clothing. Strengths, weaknesses, opportunities and threats makonnen tesfaye, 18 october 2017 geopolitical areas of the horn of africa and the middle east 1. Ethiopia has a development plan that investors can align to to grow share total investment as percentage of gdp from 36.
Ethiopia s economic success over the past decade is outstanding. Chinese firms in ethiopia heavily rely on imported. There is a rise in the demand for wheat and maize flour in the country. The government has decided to transfer public enterprises to the private sector totally or partially. Box 113 addis ababa, ethiopia in collaboration with. Investment guide for ethiopia business environment investment policy investment areas incentivesguarantees taxation investment opportunities investment procedures addis ababa, ethiopia january 2004 published by.
Foreign investment in ethiopia slumps after business. Encouraged by this several domestic and expatriate companies have showed interest to work in joint ventures and private investment on sugar and related sectors. Please note that in this document, the term ethiopia is used in its simple form to refer to the federal democratic. Firstmover investment opportunities 7 industrial sector expansion during economic growth although agriculture remains an important contributor to ethiopia s economy, its share of gdp has been steadily decreasing. Abstract the purpose of this paper is to explicitly identify the major opportunities and challenges.
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