Investment Opportunities
Priority Sectors
Ethiopia has a vast agronomically favourable land, conducive climate, water and land resources which made it an incredible hub for investing in agriculture. From the total land 74.3 million hectare is suitable for agriculture. And there are eighteen identified major agro-ecological zones, making us suitable for diverse agricultural investment opportunities.
Ethiopia’s competitive wage rates and large industrial workforce have also boosted our capacity in light manufacturing―including textile, apparel, and leather products―enabling us to become a strategic partner in global value chains
Ethiopia has a vast mineral potential and Mining is Ethiopia´s fastest-growing economic sector which posted a 115% growth rate in 2021 and 91% in 2020, which translated into a five-fold increase of the sector´s contribution to GDP and it is projected to grow by 33% annually, becoming a backbone of agriculture and a catalyst for industrial growth, job creation and export earnings.
Ethiopia is the most attractive investment destinations for establishing ICT based businesses. Having the largest workforce in Africa and a digital-focused education system has created a growing, competitive, tech-savvy and English-proficient local talent pool. Our 200-hectare ICT-dedicated industrial park in Addis Ababa, with all necessary infrastructure and services, provides investors with a ‘plug and play’ opportunity.
Ethiopia offers investments opportunities in building tourism infrastructure (including hotels and resorts, convention centres, duty-free centres, cultural villages and centres) and the development of selected destinations.
Other Sectors
Despite the massive work in electricity production there is still a huge and growing demand in the sector and in order to address demand, the government plans to significantly expand installed capacity. According to the 10-year Development Plan, the government, in close collaboration with the private sector, plans to grow the installed power generation capacity from 4,500 megawatts to 19,900 megawatts by 2030—while diversifying the power generation mix and building a more climate-resilient power system.
Ethiopia has over 28,000 healthcare providers, yet this falls short for its expanding population. At the tertiary healthcare level, only 364 hospitals exist, with a mere 17% being private. This underscores a substantial gap for private healthcare operators, particularly in meeting the needs of the growing middle class. Additionally, the majority (85%) of private hospitals are concentrated in Addis Ababa, presenting a significant opportunity for healthcare providers in the country’s interior.
There is also a huge gap in pharmacutical supplies where Imports account for 65% to 75% of the Ethiopian out of wich 22 % is primarily sourced from India.
To support increasing trade and make Ethiopia a hub for regional trade, we have embarked on an ambitious journey to build transport and logistics infrastructure and improve services. Investors are invited to engage in BUILDING LOGISTICS Infrastructure, provide logistics services and build port connecting transport infrastructure.
Emerging Sectors
I. Telecom
Invest in Ethiopia’s booming digital economy! In 2019, we launched a strategy for high-speed telecom expansion. Global Partnership Ethiopia secured a 15-year license in May 2021, investing $8 billion. Safaricom Telecommunications Ethiopia, part of the consortium, successfully launched services in October 2022. Now, we invite global telecom leaders to join as the third operator. The Ethiopian Communication Authority is accepting proposals, and a 40% stake in Ethio Telecom, East Africa’s telecom leader, is up for grabs.
II. Financial Services
Starting from the last quarter of 2022, we have approved a bill to open up the banking sector in Ethiopia for foreign competition. Foreign investors can now enter the Ethiopian market and establish their own banks or work in partnership with an existing bank.
III. Privatization of State-owned Enterprises
To push our economic reform agenda further and unleash the potential of the private sector, the Government of Ethiopia is offering to sell a host of state-owned enterprises, either partially or entirely. These include state-monopolies in airline, logistics, telecom and energy. Foreign investors are encouraged to explore these opportunities and tap into an existing operation, an existing market and the potential to upgrade and expand production of highly demanded products.
Explore the dynamic economic landscape, demographic strength, and global collaborations for a rewarding investment platform. Seize the opportunity to unlock Ethiopia’s full potential. The gateway to Africa’s prosperity awaits your strategic investment in our journey towards prosperity!
