1. Strategic Location: Ethiopia is strategically located in the Horn of Africa, making it an important gateway for trade and business activities between Africa, the Middle East, and Europe.

1. Fast-growing Economy: Ethiopia has one of the fastest-growing economies in Africa, with consistently high annual GDP growth rates, averaging around 10% over the past decade.
2. Large Consumer Market: With a population exceeding 115 million people, Ethiopia offers a vast consumer market, presenting numerous opportunities for businesses in various sectors, such as consumer goods, retail, and telecommunications.
3. Investment-Friendly Policies: The Ethiopian government actively encourages foreign investment through policies such as tax incentives, duty-free importation of machinery, and repatriation of profits, providing an attractive environment for businesses.
4. Infrastructure Development: Significant investments have been made in recent years to improve infrastructure, including transportation networks, power generation, and telecommunications. These efforts contribute to creating a more business-friendly environment.
5. Abundant Natural Resources: Ethiopia is rich in natural resources, including coffee, gold, and potash. The country’s vast agricultural land, combined with its favorable climate conditions, presents opportunities for agribusiness and food processing industries.
6. Industrial Development Focus: The Ethiopian government has prioritized industrial development, aiming to transform the country into a manufacturing hub for Africa. Businesses can benefit from government incentives and support to establish manufacturing facilities.
7. Growing Industrial Zones: Ethiopia has developed several industrial parks and special economic zones throughout the country to attract foreign investment and foster a conducive environment for business operations, mainly in sectors like textiles, garment production, and light manufacturing.
8.  Regional Integration: Ethiopia is actively involved in regional economic integration efforts, including the African Continental Free Trade Area (AfCFTA). This initiative aims to create a single market for goods and services across the continent, providing increased opportunities for international trade and investment.

Visa and Immigration Requirements

Visas are required for all foreign visitors to Ethiopia, with the exception of nationals of Kenya and Djibouti. Visas may be obtained at Ethiopia’s diplomatic missions overseas. However, nationals of 37 countries are now allowed to receive their tourist visas on arrival in Ethiopia. The nationals of these countries can also apply for a tourist visa on line at www.evisa.gov.et. The list includes Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Greece, India, Ireland, Israel, Italy, Japan, Republic of Korea, Kuwait, Luxembourg, Mexico, the Netherlands, the New Zealand, North Korea, Norway, Poland, Portugal, Russian Federation, Slovakia, South Africa, Spain, Sweden, Switzerland, Thailand, United Kingdom and United States.

Health Requirements

A yellow fever certificate is required for some African destinations. Vaccination against cholera is also required for any person who has visited or transited a cholera infected area within six days prior to arrival in Ethiopia.

Government

Government offices work 39 hours in a week. Office hours extend from 8.30 a.m. to 5.30 p.m. (lunch break from 12.30 p.m. to 1.30 p.m.) Monday through Thursday, and from 11.30 a.m. to 1.30 p.m. on Fridays.

Banks

Most banks are open from 8 a.m. to 4 p.m., including lunch hours, Monday through Friday. Most banks are also open on Saturday from 8 a.m. to 12 noon.

Ethiopia has 3 public banks and 16 private banks, as well as numerous insurance companies (one public and 15 private) and 31 micro-finance institutions. Internationally recognized credit cards such as Visa and Mastercard are available in Ethiopia through two leading Ethiopian banks, the Commercial Bank of Ethiopia and Dashen Bank. Until recently, Dashen Bank was the only Ethiopian bank to distribute Mastercard, but in March 2014 Awash International Bank (AIB) announced a partnership with Mastercard International.

Shops

Most shops are open up to 6 p.m., Monday through Saturday. Some shops, particularly supermarkets, are open on Sundays and public holidays.

As of 2023, Ethiopia’s economy displays several positive indicators:

• Gross Domestic Product (GDP) has shown robust growth, reaching $131 billion, reflecting a significant increase from previous years.
•  Foreign direct investment (FDI) has surged, with inflows reaching $5.8 billion, demonstrating growing confidence from international investors in Ethiopia’s business environment.
• Inflation has been effectively managed, and the consumer price index has remained stable, hovering around 7.5%, ensuring market stability and affordability for consumers.
• The agricultural sector continues to play a crucial role in the economy, contributing around 35% to GDP and employing the majority of the population.
• Export performance has also strengthened, with total exports exceeding $4.2 billion. Key export sectors such as coffee, horticulture, and textiles have thrived, contributing to a positive trade balance.
• The government’s focus on infrastructure development has been instrumental in attracting investments and boosting economic growth. Notably, the completion of major transportation projects, including railways and airports, has enhanced trade connectivity both domestically and internationally.
• Efforts to diversify the economy away from agriculture have yielded positive results. Manufacturing and industrial sectors have experienced significant growth, contributing over 25% to GDP, with emerging industries such as textiles, pharmaceuticals, and renewable energy gaining traction.
• The labor market has also witnessed improvements, with an overall decrease in unemployment rates to 16.5%, indicating increased job opportunities for the growing workforce.
• Investments in education and skills development initiatives have played a crucial role in building a talented and competitive workforce, fueling economic growth and attracting investment.