Why Ethiopia


Agribusiness industry of Ethiopia offers huge opportunities and potentials in a range of well-developed world class export sectors such as cereals, pulses, horticulture, spices, floriculture, and livestock.

Areas of Investment

All areas of investment are open for foreign investors other than the following:

Capital Requirement

Under the Investment Proclamation No.280/2002 (as amended), a foreign investor, who invests on his own,

Major Investment Incentives

To encourage private investment and promote the inflow of foreign capital and technology into Ethiopia,

Market Access

The most important information for the investment process in Ethiopia. The most important information for the

Sector opportunities in Ethiopia

These guides an overview of the investment opportunities supported by the ABSF project for investors in specific sectors in Ethiopia.

Reasons for Investment in Ethiopia Agribusiness

Lead Sector of a Growing Economy

Ethiopia is one of the fastest growing non-oil dependent countries in Africa at an average rate of 10% since 2010. Agriculture is the mainstay of this growing economy, accounting for more than 50 percent of the GDP and employing over 80 percent of the workforce.

Vast land, huge geographical diversity and natural resources base

Ethiopia has huge potential land, favorable climate, and water and land resources that combined make the country an incredible hub for agribusiness investment. The extraordinarily diverse geography begets the country to grow almost any crops and real livestock.

Strategic geographic location and regional hub with wide market access

Ethiopia is geographically well-positioned to serve several export markets. Strategically located in the East and Horn of Africa, Ethiopia is at the crossroads between Africa, the Middle East and Europe. Within easy reach of the Horn’s major ports, Ethiopia is close to its traditional markets for export products — the Middle East and Europe.

Potential labor supply at affordable cost

Ethiopia has the second largest labor force in Africa (over 43 million workers) Minimum wage is among the lowest in Africa. The cost of labor is very affordable. Private sector monthly salaries for university graduates range from USD 150 to USD 200, while construction sector monthly wages range from USD 60 for daily laborers to USD 300 for a foreman.

Steadily Improving Economic Infrastructure

Ethiopia has the second largest hydropower potential in Africa. Power production is in steady increase over the previous decade, with 99% sourced from clean energy in the form of hydropower. The country’s installed electricity generating capacity is expected to reach 10,000 MW by mid-2015. Telecom infrastructure is fairly good and a 5,000 km-long railway network is currently under construction.

Competitive investment incentive packages and benefits

Foreign investors can invest directly by themselves or in partnership with domestic investors in areas open for foreign direct investment. There is a strong guarantee against expropriation or nationalization. Ethiopia also offers almost equal investment incentive packages.