April 19, 2024

Business Bib

Business & Finance Blog

Ethiopia business opportunities

3 min read

Situated in the Horn of Africa is a sovereign state called the Federal Democratic Republic of Ethiopia or better called Ethiopia. The nation, due to its rich past, and is believed to be a place of ancient civilization. However, the civil war that continued on this property from 1974 to 1991 stripped Ethiopia of its humanity and beauty.

But lately, the nation has bounced back and has been considered a promising spot for certain businesses. Progress is becoming clear and improvements are being seen.

Economy of Ethiopia

Regardless of the fact it is the second most populous nation in Africa, Ethiopia has one of those fastest-growing markets in the world.

In 2014, it was recorded that the nation has a GDP of 54.8 billion USD, exports amounting to an estimated 4.14 billion USD and imports amounting to an estimated 12.08 billion USD, making its mark in the worldwide market. The nation’s economy was listed to have averaged 10.7% increase during the past ten years.

The government of Ethiopia has been investing great amounts in crucial infrastructure that’s the principal reason for the nation’s speedy growth. This growth is attracting many foreign investors into the country.

Following its first multiparty elections in 1995, Ethiopia became the ideal place for business establishments. The adoption of the new constitution led the nation into innumerable developments thus making the nation reach the summit of its market.

In a survey done in 2014, it was discovered the agricultural sector has the most significant participation in the economic output of the country comprising a total of 45 percent of its total output.

The Growth and Transformation Plan

The multiparty elections started many terrific doors for Ethiopia. One of its consequences was the understanding of the Growth and Transformation Strategy that was adopted to meet and achieve the dreams of the future.

The plan specifically intends to direct Ethiopia in attaining development in several areas like agriculture, rural development, infrastructure and decent governance. One of the many objectives of this program, a major one is to make certain that the nation maintains its average GDP growth rate in order for it to attain its millennium development objectives.

In accord with this strategy, some infrastructure improvement projects are continuing, making Ethiopia more attractive to foreign investments. One of those projects is the improvement of various airports namely the Bole International Airport, reconstruction of several domestic airports, and the building of the fifth international airport that’s expected to accommodate a larger volume of passengers in 2020.

Road and railroad projects are also continuing which will, of course, enhance the transport sector of Ethiopia. This project won’t only benefit the country but also its neighboring countries including Sudan and Egypt

6 Sectors of Investment Opportunities in Ethiopia

Given all the ongoing projects, the government of Ethiopia has identified six important sectors of investment opportunities. These are:

Many regional and national jobs are now being undertaken to enhance the transport system for land, sea or air travel.

Industrial Sector

1 primary focus of the nation now is to raise production in sugar, textiles, leather goods and cement. The industrial sector is expected to be a significant contributor to the economic output of the nation by the year 2025.

Agriculture

Despite being the biggest contributor to the economic output of Ethiopia, the agricultural sector still looks for methods to present opportunities for improved farming technology. In actuality, 8 million acres are currently being offered to commercial farming investors.

 Energy

The country’s aim to be the regional exporter of energy is extremely evident with the wind, solar, hydropower and geothermal projects under way.

Mining

Owing to the rich resources of minerals such as gold and tantalum deposits, there is no doubt that Ethiopia will double its exports in the years to come.

ICT

The creation of 4G and 3G will raise the demand for innovative technologies like telemedicine, video conferencing, and distance learning.

With all these developments that Ethiopia prospers and jobs which are still ongoing, it is certain that this nation will emerge as you with immense business opportunities. However, if you intend to venture into business in a country like Ethiopia, use our export programmers to allow you to be knowledgeable about the sort of market and people you are going to be dealing with.

More info on Ethiopia: https://employerofrecord-africa.com/ethiopia-employer-of-record-services/