Ethiopia is the oldest independent country in Africa, and is among the most stable countries in the region. The 2012 peaceful transition of power to a new Prime Minister has proven the stability of Ethiopia’s multi-party political system and parliamentarian form of government.
Ethiopia is most know for its social stability and least crime rate, as well as strong public institutions and reliable police service
There is no tolerance to corruption, ranked 34th under the Global Competitiveness report (2016-2017) for impartial public decision making,well above most of its regional peers such as Kenya (92nd) and South Africa (115th)
2. Growing Economy
Ethiopia has grown at an average rate of 10% since 2010.
Through a co-ordinated, prudent fiscal policy and a tight monetary policy, combined with a slowdown in global commodity prices, the Government has brought down inflation to single digits.
Ethiopia is raked higher than its regional peers (Kenya, Rwanda and South Africa) for its condusive macroeconomic environment(World Economic Forum, Global Competitiveness Report,2016-2017)
Growth forecasts of more than 7% from the International Monetary Fund and the African Development Bank place Ethiopia among the world’s growth leaders over the medium term.
3. Excellent Climate and Fertile Soils
Ethiopia is the 27th largest country in the world by land size and given its diverse topography and geographical location, it is suitable for the production of some of the world’s most coveted food crops – cereals, pulses, oil seeds, a wide range of fruits and vegetables, coffee, tobacco, sugar cane, tea and spices, among others.
Much of Ethiopia has a surprisingly temperate climate by African standards due to its elevation. Ethiopia has an elevated central plateau varying in height from 2,000 to 3,000 meters above sea level.
Thanks 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 (US Department of Agriculture). Ethiopia also is among the top non-EU exporter of cut-flower to the EU market and the 2nd largest flower exporter from Africa.
4. Strong Guarantees and Protections
Private property is protected by the Constitution and the investment law.
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).
5. Abundant and Affordable Labor
Ethiopia’s labor law, which regulates worker-employer relations, is in line with international conventions.
With over 50 million workers, Ethiopia has the second largest labor force in Africa (World Bank’s Doing Business Report, 2014).
Ethiopia’s minimum wage is among the lowest in Africa, with only 5 countries – Burundi, Uganda, Egypt, Gambia and Malawi – having lower minimum wages (International Labor Organization, 2010/11).
Generally, 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 (Source: Ethiopia’s Ministry of Urban Development and Construction).
6. Regional Hub with Access to a Wide Market
With a population of appx. 100 million people and a rapidly growing middle class society, Ethiopia is the second largest market in Africa, and is also part of the Common Market for Eastern and Southern Africa (COMESA) comprising 19 member countries and over 400 million people.
Addis Ababa has emerged as a regional hub and is home to key international organizations such as the African Union (AU) and the United Nations Economic Commission for Africa.
Addis Ababa is also the main air hub for Africa and the home of Ethiopian Airlines, which has won repeated recognition as the best airline in Africa. Ethiopian Airlines offers flights to 94 international passenger destinations (52 in Africa, 17 in Europe and America and 25 in the Middle East and Asia), 19 domestic passenger destinations, and 35 cargo destinations (21 in Africa, 11 in the Gulf, Middle East and Asia, and 3 in Europe). It carries two thirds of Africa’s air freight.
Ethiopian products have duty-free, quota-free access to the U.S. and EU markets under the African Growth and Opportunities Act (AGOA) and the Everything But Arms (EBA) initiative, respectively.
Ethiopia enjoys also preferntail access to key markets like Australia, Canada, Japan, New Zealand, Norway, Switzerland, China, India, Russia, the Republic of Korea, and Turkey.