Investment Opportunities in Ethiopia

December 28, 2013

Ethiopia has a vast investment opportunity in the Agriculture, Agro-Processing and Manufacturing sectors such as Textile, Leather Goods, Chemical and Pharmaceutical.

The country is an Agrarian Economy and currently Ethiopia has formulated and is in the process of implementing a 5-year Growth and Transformation plan that envisages the transformation of the economy into industrialization. Thus, agricultural products as well as value addition to the agricultural products are highly encouraged.


Ethiopia has an area of 1.14 million sq. km, out of which 513,000 square kilometers (45%) are arable land and 34,200 square kilometers (3%) is irrigated land. The agricultural sector accounts for 41% of the GDP, provides 85% of employment and 90% of foreign currency earning. There are 18 major agro-ecological zones and 32 diversified or sub agro-ecologies. The temperature ranges from 20oC to 30oC, the altitude from -125 meters below sea level to 4620 meters above sea level and annual rainfall varies from 200 to 2500 mm. There are two seasons: the dry season prevails from October through May and the wet season runs from June to September. The main sources of water are ground water, rivers and rain. Labour force is available at reasonable cost and land can be procured on lease for a certain period of years.

The priority areas in the Agriculture and Manufacturing sectors are shown below.

1. Horticulture and Floriculture
Land for horticulture is available around the capital city and the main cities whereby all the necessary facilities are in place. 33,000 ha of land is available for horticulture.

2. High Value Plantation Crops (cotton and sugar cane)
The government is developing economic zones for commercialized farming. All the infrastructure and facilities will be provided in the economic zones.

3. Livestock
Ethiopia is ranked 1st place in Africa in terms of Livestock population. They have 52 million cattle, 63.1 million small ruminants, 42.1 million poultry and 2.5 million camels. There are opportunities in rearing, breeding and fattening of livestock.

4. Agro Processing - Food & Beverages
There are 18 major agro ecological zones and 32 diversified or sub agro-ecologies, thus the country has a capacity to grow a variety of food and beverage crops. There are plenty of inputs for agro-processing factories.

5. Manufacturing Sector
The potential areas for investment in Manufacturing Sectors are textile, leather goods, pharmaceutical, chemicals, metal etc.. Ethiopia has a high quality cotton and leather resources.

Moreover, Ethiopia has an investor friendly policy and the investment proclamation encourages investors by providing a package of investment incentives. A one-stop shop, where all the services including land clearance being given in one window is being developed. Ethiopia has a skilled and semi skilled labour available at a reasonable cost and electric power at a reasonable price.

Therefore, Ethiopia invites potential investors to be a development partner of country. The Embassy of Ethiopia in New Delhi will provide all the necessary information and facilitate a pre-investment visit program. The contact address of the Embassy is:  

Embassy of the Federal Democratic Republic of Ethiopia

7/50-G, Satya Marg, Chanakyapuri, New Delhi -110021
Tel +91 11 2611 9513/14, 24675367 Fax +91 11 2687 5731,
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