Ethiopia is working towards greater openness and democratic process. Since 2018, a number of measures have been taken which manifested in terms of reconciliation both domestically and peace abroad. The rapprochement with Eritrea on a border dispute that lasted for two decades is an asset for Ethiopia’s continued stability. Among its 115 million populations, more than 70% of them are under the age of 30 while 50% are under the age of 15.

The government policy of 70:30 in higher education which is training 70% of students in technology and science, and 30% in social science and humanities, helped to produce skilled manpower for the growing manufacturing sector in the country. State-owned enterprises such as railway projects, sugar development plants, industrial parks, hotels, Ethiopian Airlines, Ethio-Telecom, electricity generation projects and the Ethiopian Shipping and Logistics Services Enterprise are on the pipeline to be partially and fully privatized.

Ethiopia is the gateway to the Middle East, Europe and Asia. In this regard, Ethiopian Airlines is playing a pivotal role connecting Africa with the rest of the world. The country is also the seat of the African Union and the United Nations Economic Commission for Africa in addition to the more than 100 foreign embassies.

Growing Economy

An average of about 11% annual GDP growth for the last 14 years. The fastest-growing economy in the world during the same period (World Bank Global Economic Prospects), 46% growth in FDI inflow-one of the most dynamic and largest FDI recipients in Africa (UNCTAD World Investment Report, 2017). Ethiopia is ranked 57th, better than its regional peers (Kenya, Rwanda and South Africa), for its conducive macroeconomic environment (World Economic Forum, Global Competitiveness Report, 2017-2018). Recognized by UNCTAD for promoting investment in the Sustainable Development Goals (SDGs).

Recognized by the World Bank through its “Star Reformer Award” for Ethiopia’s outstanding performance on investment policy reform and promotion. Stable and conducive macroeconomic environment. Stable and positive economic outlook forecasts of more than 7% projected by IMF and the African Development Bank, placing Ethiopia among the world’s growth leaders over the medium term.

Young and Vibrant Labor Force

With a population of more than 110 million people and a rapidly growing middle-class society, Ethiopia is has young and Vibrant Labor Force of median age of 19. Ethiopia’s labor law, which regulates worker-employer relations, is in line with international conventions. Ethiopia is the second-most populous country on the continent with 60% of the population in the labor force. Ethiopia has a young and trainable labor force (median age of 19) and a supportive government policy that facilitates labor sourcing for industries.

Improved Infrastructure

Power production has increased steadily over the last ten years, with 99% sourced from clean energy in the form of hydropower. Ethiopia has the second-largest hydropower potential in Africa (Deloitte, 2014)
The Grand Ethiopian Renaissance Dam (GERD) – the largest hydroelectric power dam in Africa being built on the Nile River – is expected to generate 6,000MW of electricity. This coupled with Gilgel-Gibe III (1,870MW) and Genale-Dawa III (254MW) and other wind power projects will make Ethiopia a regional powerhouse. Cheapest electricity rate in Africa and the whole world.

Expanding Telecommunication Service

Expanding and improving telecommunication service and road networks connecting national and regional markets. Newly built Addis-Djibouti electric-powered railway – making access to port Djibouti much easier. As a significant portion of Ethiopia’s import/export trade passes through port Djibouti, the railway construction is a huge efficiency enhancer. 34 km Addis Ababa light rail is fully operational.

Africa’s world-class and Star Alliance member, Ethiopia Airlines, network covers more than 90 international destinations in the five continents of Africa, Asia, Europe South, and North America. Ethiopian Airlines flies to more than 50 destinations in Africa alone.

Government Commitment

High-level political commitment for investment promotion and protection. Investment policy-making is led by the Ethiopian Investment Board and chaired by the Prime Minister. Wide-ranging incentive packages for priority sectors and export-oriented investments. Bold initiative in the development of state of the art industrial parks, an electric-powered railway connecting the capital and other economic corridors to the port of Djibouti.

Safe and Stable

The Constitution and the investment law protect all private property. A foreign investor has the right to make remittances out of Ethiopia in convertible foreign currency at the prevailing rate of exchange. Ethiopia is a member of the Multilateral Investment Guarantee Agency (MIGA), a World Bank affiliate which issues guarantee against non-commercial risks in signatory countries, and of the World Intellectual Property Organization (WIPO).

Ethiopia has concluded over 30 bilateral investment promotion and protection agreements, of which 11 are with individual European Union Member States. Significant other partners include China, India, South Africa, and Russia, and a number of regional economic partners (Israel, Egypt, and Sudan, among others).

Excellent Climate and Fertile Soils

Ethiopia is the 27th largest country in the world by land size. Given its diverse topography and geographical location, it is suitable for the production of some of the world’s most coveted food crops, such as cereals, pulses, oilseeds, a wide range of fruits and vegetables, coffee, tobacco, sugar cane, tea, and spices, among others
The majority of land in Ethiopia has a surprisingly temperate climate by African standards due to its high elevation. Ethiopia has an elevated central plateau varying in height from 2,000 to 3,000 meters above sea level.
Due to its fertile soils, Ethiopia is among the world’s largest producers of coffee and the 3rd largest producer of Arabica beans in the world (USDA). Ethiopia also the top non-EU exporter of cut-flower to the EU market and the 2nd largest flower exporter from Africa.