Ethiopia is one of the five fastest growing countries in the world. It has a strong political climate, stability of the foreign exchange system, liberalization of the free market economy and others. The Ethiopian government is also interested in encouraging foreign investment opportunities, believing it is important for the Ethiopian economy, attracting foreign investors from different countries to invest in Ethiopia.
Ethiopia's geographical location:
Ethiopia is a landlocked country in the Horn of Africa with its capital Addis Ababa. It is the second largest country in Africa in terms of population after Nigeria and the tenth in size. It is bordered to the east by Djibouti, Somalia, Eritrea, West of South Sudan and south-west of Kenya.
Motives and reasons for investment in Ethiopia:
Areas of Investment Opportunities in Ethiopia:
There are many areas that enhance investment opportunities in Ethiopia, including:
1- Agriculture:
The economy in Ethiopia depends mainly on agriculture, where agriculture is the mainstay of the economy, which provides job opportunities for 80% of the population There is also agriculture in the provision of industrial inputs and raw materials. Ethiopia is characterized by the abundance of food crops, which have great opportunities for export.
2 - Livestock:
Ethiopia has a large abundance of livestock as a contributor to the national economy and thus increase opportunities for investment in this area and derivatives, such as trade in meat and milk and others.
3 - Fish wealth:
There are large areas of fresh water, which helps to invest in Ethiopia in the field of fisheries.
4. Forests and beekeeping:
Forests occupy large areas of Ethiopia, creating opportunities for investment in the timber industry and export. Ethiopia is also a leading producer of honey as it exports to African countries.
5 - Manufacturing industries:
Ethiopia is one of the leading countries in the manufacturing industries such as food products, textiles, wood products, leather, clothing, automobile assembly, chemical industry, building materials, paper products, glass, containers, processing meat, dairy products, sugar, manufacturing electric motors, generators and transformers. Light engineering products, spare parts, metal products, steam generators and others.
6 - Mining:
Ethiopia is one of the best gold mining regions in the world and enjoys the presence of marble, granite, limestone, precious stones, iron ore, coal and copper, thus enhancing investment opportunities in Ethiopia.
7 - Tourism:
Ethiopia has many attractions that attract tourists from all over the world such as its highlands with its natural landscapes, wildlife and forests in various forms, in addition to the Nile Blue Falls, important archaeological sites and other tourist attractions that help increase investment opportunities in Ethiopia.
Costs and how to establish a company:
Investment Factors in Ethiopia:
1. The Chamber of Commerce and the Ethiopian Sector Societies:
The Chamber of Commerce represents a non-profit organization that is independent of the public sector and responsible for the private sector. It promotes trade and investment in the private sector. It promotes the interests of the financial and business community and acts as a bridge between Government and Private Sector The Chamber of Commerce also promotes Ethiopian products around the world and thus attracts foreign investors.
2. Investment laws in Ethiopia:
The government in Ethiopia is interested in attracting more foreign investment through several measures, including exemption from customs duties, exemption from income taxes, export incentives, competitive land rents and rapid expansion of industrial parks throughout the country, Foreign investors are government there.
3 - The right of ownership in full:
Most countries do not allow the foreign ownership of companies fully, requiring the entry of local investors in certain proportions, in Ethiopia, the situation is different, allowing foreign investors to own their project shares without requiring the entry of local shareholders with them.
Ethiopia's geographical location:
Ethiopia is a landlocked country in the Horn of Africa with its capital Addis Ababa. It is the second largest country in Africa in terms of population after Nigeria and the tenth in size. It is bordered to the east by Djibouti, Somalia, Eritrea, West of South Sudan and south-west of Kenya.
Motives and reasons for investment in Ethiopia:
- Availability of reclaimed land area and available labor force.
- Permanent peace and political stability have contributed to increased investment in Ethiopia even though it is located in a volatile region of conflict and instability, but it has been able to maintain its security and stability, which has helped to increase its credibility and increase investment opportunities.
- Attention to economic diplomacy, foreign policy and relations with other countries.
- The Ethiopian economy is achieving a rapid growth rate.
- Expansion of comprehensive development plans.
Areas of Investment Opportunities in Ethiopia:
There are many areas that enhance investment opportunities in Ethiopia, including:
1- Agriculture:
The economy in Ethiopia depends mainly on agriculture, where agriculture is the mainstay of the economy, which provides job opportunities for 80% of the population There is also agriculture in the provision of industrial inputs and raw materials. Ethiopia is characterized by the abundance of food crops, which have great opportunities for export.
2 - Livestock:
Ethiopia has a large abundance of livestock as a contributor to the national economy and thus increase opportunities for investment in this area and derivatives, such as trade in meat and milk and others.
3 - Fish wealth:
There are large areas of fresh water, which helps to invest in Ethiopia in the field of fisheries.
4. Forests and beekeeping:
Forests occupy large areas of Ethiopia, creating opportunities for investment in the timber industry and export. Ethiopia is also a leading producer of honey as it exports to African countries.
5 - Manufacturing industries:
Ethiopia is one of the leading countries in the manufacturing industries such as food products, textiles, wood products, leather, clothing, automobile assembly, chemical industry, building materials, paper products, glass, containers, processing meat, dairy products, sugar, manufacturing electric motors, generators and transformers. Light engineering products, spare parts, metal products, steam generators and others.
6 - Mining:
Ethiopia is one of the best gold mining regions in the world and enjoys the presence of marble, granite, limestone, precious stones, iron ore, coal and copper, thus enhancing investment opportunities in Ethiopia.
7 - Tourism:
Ethiopia has many attractions that attract tourists from all over the world such as its highlands with its natural landscapes, wildlife and forests in various forms, in addition to the Nile Blue Falls, important archaeological sites and other tourist attractions that help increase investment opportunities in Ethiopia.
Costs and how to establish a company:
- Expenses to set up a company in Ethiopia cost about $ 250, and the capital to establish $ 900.
- Steps to establish a company in Ethiopia consists of 11 steps and within 19 working days you can get licenses.
- Ethiopia has a tax rate of 32%.
- If a warehouse is set up in Ethiopia and exported to you from your country, the container release takes 25 business days and $ 668 is paid as non-tariff, ground-based and container insurance for 25 days.
- The cost of living costs from $ 250 to $ 600 per month, and renting an office and storehouse costs about $ 12,000 a year.
Investment Factors in Ethiopia:
1. The Chamber of Commerce and the Ethiopian Sector Societies:
The Chamber of Commerce represents a non-profit organization that is independent of the public sector and responsible for the private sector. It promotes trade and investment in the private sector. It promotes the interests of the financial and business community and acts as a bridge between Government and Private Sector The Chamber of Commerce also promotes Ethiopian products around the world and thus attracts foreign investors.
2. Investment laws in Ethiopia:
The government in Ethiopia is interested in attracting more foreign investment through several measures, including exemption from customs duties, exemption from income taxes, export incentives, competitive land rents and rapid expansion of industrial parks throughout the country, Foreign investors are government there.
3 - The right of ownership in full:
Most countries do not allow the foreign ownership of companies fully, requiring the entry of local investors in certain proportions, in Ethiopia, the situation is different, allowing foreign investors to own their project shares without requiring the entry of local shareholders with them.
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