Ethiopia once the byword for famine in the region is garnering attention from foreign investors. Top 5 opportunities for investment in ethiopia part ii. Its purpose was to develop the investment activity by giving major incentives for investors and promotion of investment opportunities both for domestic and. The study conducted based on the data gathered from four branches of cbe, one district office and head office. Opportunity for investment in ethiopias hospitality. Abstract the purpose of this paper is to explicitly identify the major opportunities and challenges. Outline section page disclaimer 3 background 4 ethiopia at a glance 5 profile sugar corporation 10 ethiopian sugar industry overview 12 project portfolio 18 3. Its aim was to provide prospective foreign direct investors with an overview of investment project opportunities linked to domestic enterprises. Opportunities for investment and business development in. Investment opportunities in the ethiopian aquaculture sub. To become successful in ethiopia, firms need to understand and appreciate the ethiopian governments. Background and context industry background although ethiopias garments industry has been identified as a key growth industry since 1995,9 its performance was lackluster until the implementation of the gtp in 2015. This study identified challenges and investment opportunities at various points along the potato value chain in western uganda where more than 80% of the countrys potatoes are produced. Challenges and opportunities of development in ethiopia through urbanrural economic linkages urels by berhanu zeleke gobaw submitted in accordance with the requirements for the degree of doctor of literature and philosophy in the subject development studies at the university of south africa promoter.
It was also identified by the world bank global economic prospects as one of the fastest growing economies in the world with an average of about 11% annual gdp growth for the last 14 years. Investment opportunities in ethiopian sugar industry. 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. Opportunities in ethiopia are almost endless and one of the promising areas is the. Ethiopias vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars ethiopian investment comission 9 1. Investment opportunity study for ethiopia, kenya, mozambique and zambia 2 made in the research, especially with reference to the specific countries, their economies and assessed investment opportunities. The netherlands embassy in addis ababa therefore felt the need to commission a business opportunity. Opportunities and challenges of tourism development in the addis ababaupper rift valley corridor tadesse kidanemariam professor, department of geography, edinboro university of pennsylvania, edinboro, usa abstract in spite of a long history of promotion and development, ethiopias tourism industry is in its initial stages of. There is a rise in the demand for wheat and maize flour in the country. Researchers investigated the challenges and opportunities of adopting eservices in commercial bank of ethiopia. Investment opportunities in the ethiopian poultry subsector. In origins where robusta is dominant, the investment opportunities are modelled for robusta only. 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 third involves drafting of the report, relying substantially on.
Challenges and prospectus of ethiopian tourism industry. Ethiopian investment commission is a government institution established in 1992 to promote private investment, primarily foreign. Investing in ethiopia opportunities and challenges. Ethiopia investment policies and incentives and opportunities. But as the second part of our special feature on the country explains, it presents both challenges and opportunities for investors. The federal and regional governments encourage investment. A sectoral overview introduction ethiopia has experienced rapid economic growth since 2005. Possible interventions on the supply side could be strengthening of raw milk supply, improving milk collection centers, provision of feed, logistics and breed improvement. 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. Ethiopias manufacturing industry opportunities, challenges and way forward. Ethiopia has become a preferred destination for foreign direct investment and emerging. Investment opportunities in the ethiopian dairy sector.
Highlights of investment opportunities and conditions in. Fdi inflows to the country have accelerated in recent years. Opportunities in ethiopia are almost endless and one of the promising areas is the industry sector of construction. Snv netherlands development organisation study on dairy investment opportunities in ethiopia, 2008 v consumer. The population is expected to increase to 117 million by 2025. Theres no doubt ethiopia is on an upward growth trajectory as an emerging source of textiles and clothing. Dutch investment opportunity and potentials in ethiopia, the dutch government has. This is significantly below the ssa average of 47% with ethiopia at low risk. 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. Investment opportunities related to infrastructure road source. This is due to the increase in population in ethiopia. European entrepreneurs perspective by olivier poujade east africa gate eagate. Investment opportunities in ethiopian sugar industry april 2019 federal democratic republic of ethiopia ministry of finance 2. Foreign and domestic investment has been steadily growing in 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. The atas private sector in agriculture team, through support from usaids investment support program and dalberg global development advisors, has developed detailed analyses on ten promising agribusiness investment opportunities summarized below. Doing business in ethiopia precise consult international 20. Challenges, opportunities and policy options for effective use to stimulate industrialization. Investment opportunities and challenges in the irish. Ethiopian investment commission, addis ababa, ethiopia. For further information read ethiopian investment guide 2015 or visit vestethiopia. The case of selected areas in jimma zone by abdissa ayana biftu. Ethiopia is the first in africa and the tenth largest livestock producer in the world the livestock subsector contributes about 12% of national gdp, over 45% of the agricultural gdp and 16% of total exports. Highlights of investment opportunities and conditions in ethiopia. 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. Introduction investment is an act of current spending for expected future return.
Foreign agricultural investment country profile ethiopia region subsaharan africa income group low population 84. So as to achive this objective, government of ethiopia encourages private sector investment in power generation. Due to longterm business development plans aimed at creating optimal market conditions, the city has become the home for many industries, agroprocessing companies and educational centers. Dairy investment opportunities in ethiopia final july 2008. A preferred location for foreign direct investment in africa. Ethiopia investment policies and incentives and opportunities unido. The government knows too well that where theres no peace, tourism can never thrive. This page contains a guide to the existing investment proclamations and regulations. Investment opportunities in ethiopia ethiopia is africas oldest independent countries in africa and also the 2 nd most populous with over 105 million people. Zemedeneh negatu on where the biggest business opportunities lie in ethiopia today 25. Ethiopias primary law concerning foreign investment is the investment proclamation.
As investment plays a great role in economic development, the government of ethiopia has given emphasis concerning this activity. Firstmover investment opportunities 9 sound fiscal management underpins new sources of funding given ethiopias prudent macroeconomic management, the country has maintained its stock of public debt at 26% of gdp for the last four years. Investment brochure to ethiopia ethiopia investment commission. Foreign investment in ethiopia slumps after business.
Foreign direct investment fdi in ethiopia investing. Burundi 2% cameroon 1% ethiopia 70% kenya 9% rwanda 3% tanzania 5% uganda 9% others 1% share of. Firstmover investment opportunities 3 political stability. Trade between the two countries is showing an encour. Ethiopia,ethiopian airline the almost the leading airline from africa and to be a member of a star alliance, ethiopia now building the leading african man made dam, lastly ethiopia is one the leading african country that registered heritage by unisco. Investment opportunities in the ethiopian construction sub. Overview of ethiopian investment opportunities and policies. Chinese firms in ethiopia heavily rely on imported. Ethiopias resolve to fully implement its hospitality policies has also created more investment and job opportunities. Pdf investment opportunities in the ethiopian dairy. Overview of economic, geographic, social, and political outlook. This has led to an opening for local business opportunities for ethiopian people. Pdf on apr 1, 2017, mulu gebreeyesus and others published foreign direct investment in ethiopia.
Ethiopia c a compact partners support for reform financing energy sector. The study adopted a value chainmultistage sampling method involving farmer groups, traders, processors, agroinput dealers, and seed potato multipliers. With an educated work force and a significant manufacturing base, the city is poised for. The supply of processed animal feedstuffs in ethiopia is very limited, totalling19,392 tons in 2010g. Ethiopian investment agency 15 ethiopias investment laws are favorable continued fiscal customs duty exemption on imported capital goods, construction materials, and spare parts worth up to 15% of the value of imported capital goods income tax exemption 2 to 9 years loss carry forward for half of income tax exemption period. Investment opportunities in mekelle, tigray state, ethiopia. Click on each title to view an executive summary of the case study. Ethiopia targets to increase power generation to more than 17,000 mw by 2020 and plans to boost export to neighboring countries. Privilege is given to full repatriate profits, dividends, principal and interest payments on external loan, etc. Foreign investors can invest on their own or in partnership with domestic investors in areas open for. 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. Path to middle income economic and political environment. Embassy of the kingdom of the netherlands in addis ababa. Supply chain opportunities federal and regional road lengths has constantly been increasing 48 800 51 636 54 818 58 211 61 771 64 522 0.
Almost half of the flows from the east african region were absorbed by ethiopia. Over the past two decades, mekelle has experienced rapid growth as the capital of the regional state of tigray. Strikingly, potential investment opportunities seem to barely travel through formal channels, such as through the investment promotion agency or other government agencies. Opportunities and challenges of investment activities. It expands the productive capacity of a nation and plays a crucial role in the economic growth and development process. Pdf investment opportunities in the ethiopian dairy sector. These eight investment opportunities were selected for their readiness.