Country Snapshot

Population (2019, millions)¹ 112.1
Population Projections (2030, millions)¹ 144.94
Economically active population in agriculture (as % of Economically active population)12, 2019 84.1
Capital Addis Ababa
Surface Area (km²)² 1,104,300
Weather¹¹ In Addis Ababa: Hottest months, April-May, 10-30°C; coldest month, December, 5-23°C; driest month, December, 5 mm average rainfall; wettest month, August, 300 mm average rainfall
Languages³ Official: Amharic (national), Oromo (State of Oromiya), Somali (State of Sumale), Tigrigna (State of Tigray), Afar (State of Afar), etc. – Others: English, Sidamo, Wolaytta, Gurage, Hadiyya, Gamo, Gedeo, Opuuo, Kafa, Arabic and others
Main Religions³ Main: Ethiopian Orthodox and Muslim – Others: Protestant, Catholic, traditional and others
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .et
Country Calling Code +251
Plug, Socket and Voltage⁷ Type C, F and L –  220V/50 Hz
Currency Birr (ETB) – 1/100 = Santim
Exchange Rate (As of 28 January 2019, per USD)⁸ 28.40 (buy rate)
GDP at Market Prices (2018, current, billions of USD)⁹ 84.35
GDP Growth (2018, annual %)⁹ 6.81
Average GDP Growth (2014-2018, annual %)⁹ 9.27
GDP per Capita, PPP (2018, current international $)⁹ 2,018
Inflation, Consumer Prices (2017, annual %)⁹ 9.84
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ 8.54
Total Reserves in Months of Imports (2017)⁹ 1.85

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸National Bank of Ethiopia.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Ethiopia

Source: Ethiopian Investment Commission – EIC.

Population

Population Projections (millions)

Population (2019) 112.07
Population Projections (2030) 144.94

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 21.22
Percentage of Population Residing in Urban Areas (2030) 26.85

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 72.75
Youth Literacy Rate, Population 15-24 Years, Female 71.97
Youth Literacy Rate, Population 15-24 Years, Male 73.52

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Unemployment, Total 1.8
Unemployment, Female 2.41
Unemployment, Male 1.27

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 80.3
Labour Force Participation Rate, Female 74.23
Labour Force Participation Rate, Male 86.5
Labour Force, Total (number) 51,941,541

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 55.61 64.46 74.27 81.71 84.35
GDP Growth (annual %) 10.25 10.39 9.43 9.5 6.81

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 39.59 46.41
Manufacturing 7.39 6.46
Industry 34.59 23.84
Services 44.81 48.75
Construction 26.11 15.80
Electricity, gas and water 0.87 0.93
Mining and quarrying 0.23 0.66
Education 4.37 3.27
Finance, real estate and business services 8.58 10.22
Public administration and Defense 5.45 5.18
Health and Social Work 1.39 1.16
Other services 2.83 3.07
Transport, storage and communication 4.78 5.54
Wholesale and retail trade, hotels and restaurants 18.96 21.59

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

  2014 2015 2016 2017 2018
World 16,141,056 17,391,198 17,472,848 15,733,042 14,897,144
China 5,274,057 6,208,142 5,293,920 5,132,079 4,218,944
United States of America 671,234 923,922 1,652,397 1,233,930 1,579,509
India 1,002,540 1,184,965 1,336,406 1,131,705 1,277,507
Kuwait 1,676,258 1,303,563 906,856 865,638 1,067,430
Turkey 417,547 546,278 598,395 612,854 635,882

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

  2014 2015 2016 2017 2018
World 4,140,302 1,993,585 1,984,781 2,284,111 1,537,874
Saudi Arabia 198,316 163,779 152,427 179,376 136,486
China 447,396 276,744 311,359 240,855 113,465
United Arab Emirates 111,202 79,224 85,492 120,973 102,752
Israel 114,640 82,145 64,630 79,008 90,777
United States of America 129,046 169,338 144,128 163,981 66,318

Source: International Trade Center COMTRADE Statistics.

Ethiopia’s Top import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 16,141,056 17,391,198 17,472,848 15,733,042 14,897,144
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 2,044,208 2,355,899 2,629,335 2,797,570 2,315,560
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 3,488,850 2,126,602 1,815,828 1,557,550 1,486,078
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 2,054,791 2,852,874 2,048,923 1,394,810 1,175,815
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 1,363,884 1,612,136 1,490,974 1,470,890 871,040
88 Aircraft, spacecraft, and parts thereof 113,421 119,524 556,626 311,950 830,500

Source: COMSTAT database

Ethiopia’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 4,140,302 1,993,585 1,984,781 2,284,111 1,537,874
09 Coffee, tea, mate and spices 833,011 667,598 642,313 808,114 387,387
12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medical plants; straw and fodder 684,088 428,555 487,629 422,853 323,268
07 Edible vegetables and certain roots and tubers 576,200 195,299 235,638 258,915 279,278
02 Meat and edible meat offal 81,723 94,681 94,679 99,297 101,176
41 Hides and skins (other than furskins) and leather 91,067 87,052 68,373 75,787 50,327

Source: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 1,855 2,627 3,989 4,017 3,310

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 8,310 10,937 14,926 18,943 22,253

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

China, United States, India, UAE, UK, Turkey, Germany, South Africa, Egypt, and Kenya.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Textiles, Financial Services, Food and Tobacco, Chemicals, Communications, Business Services, Automotive OEM, Pharmaceuticals, Pharmaceuticals, and Building and Construction Materials.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Chongqing Lifan Industry, Libya Oil Ethiopia, Transsion Holdings (Tecno Telecom), CHT/BEZEMA Group, Black Rhino, Hela Clothing, Petronas, ZTE, Dow Chemical, and Wilmar International.

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

2020 159/190
2019 159/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 168/190
Procedures (number) 11
Time (days) 32
Cost (% of income per capita*) 45.4
Paid-in Minimum Capital (% of income per capita*) 0.0

*GNI per capita used: USD 790
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 132/190
Payments (number per year) 29
Time (hours per year) 300
Total Tax Rate (% of profit) 37.7
Profit Tax (% of profit) 24.6
Labor Tax and Contributions (% of profit) 12.4
Other Taxes (% of profit) 0.7

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 156/190
Time to Export: Border Compliance (hours) 51
Cost to Export: Border Compliance (USD) 172
Time to Export: Documentary Compliance (hours) 76
Cost to Export: Documentary Compliance (USD) 175
Time to Import: Border Compliance (hours) 72
Cost to Import: Border Compliance (USD) 120
Time to Import: Documentary Compliance (hours) 194
Cost to Import: Documentary Compliance (USD) 750

Assumptions

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – The Investment proclamation No. 769/2012
Key guarantees in terms of investment protection include:

Source:United Nations Conference on Trade and Development, iGuide Ethiopia.

Investment Incentives

General incentives

Tax incentives 

To encourage private investment and promote the inflow of foreign capital and technology into Ethiopia, the following incentives are granted to both domestic and foreign investors engaged in qualifying areas:

  1. Tax Exemption:
  2. Tax Deduction:
  3. Suppliers Credit, Tax exemption:
  4.  Custom Duty Exemption:

Source: KPMG, Burundi Fiscal Guide 2018 and Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018

Country Snapshot

Population (2019, millions)¹ 112.1
Population Projections (2030, millions)¹ 144.94
Economically active population in agriculture (as % of Economically active population)12, 2019 84.1
Capital Addis Ababa
Surface Area (km²)² 1,104,300
Weather¹¹ In Addis Ababa: Hottest months, April-May, 10-30°C; coldest month, December, 5-23°C; driest month, December, 5 mm average rainfall; wettest month, August, 300 mm average rainfall
Languages³ Official: Amharic (national), Oromo (State of Oromiya), Somali (State of Sumale), Tigrigna (State of Tigray), Afar (State of Afar), etc. – Others: English, Sidamo, Wolaytta, Gurage, Hadiyya, Gamo, Gedeo, Opuuo, Kafa, Arabic and others
Main Religions³ Main: Ethiopian Orthodox and Muslim – Others: Protestant, Catholic, traditional and others
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .et
Country Calling Code +251
Plug, Socket and Voltage⁷ Type C, F and L –  220V/50 Hz
Currency Birr (ETB) – 1/100 = Santim
Exchange Rate (As of 28 January 2019, per USD)⁸ 28.40 (buy rate)
GDP at Market Prices (2018, current, billions of USD)⁹ 84.35
GDP Growth (2018, annual %)⁹ 6.81
Average GDP Growth (2014-2018, annual %)⁹ 9.27
GDP per Capita, PPP (2018, current international $)⁹ 2,018
Inflation, Consumer Prices (2017, annual %)⁹ 9.84
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ 8.54
Total Reserves in Months of Imports (2017)⁹ 1.85

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸National Bank of Ethiopia.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Ethiopia

Source: Ethiopian Investment Commission – EIC.

Population

Population Projections (millions)

Population (2019) 112.07
Population Projections (2030) 144.94

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 21.22
Percentage of Population Residing in Urban Areas (2030) 26.85

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 72.75
Youth Literacy Rate, Population 15-24 Years, Female 71.97
Youth Literacy Rate, Population 15-24 Years, Male 73.52

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)

Unemployment, Total 1.8
Unemployment, Female 2.41
Unemployment, Male 1.27

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 80.3
Labour Force Participation Rate, Female 74.23
Labour Force Participation Rate, Male 86.5
Labour Force, Total (number) 51,941,541

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 55.61 64.46 74.27 81.71 84.35
GDP Growth (annual %) 10.25 10.39 9.43 9.5 6.81

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 39.59 46.41
Manufacturing 7.39 6.46
Industry 34.59 23.84
Services 44.81 48.75
Construction 26.11 15.80
Electricity, gas and water 0.87 0.93
Mining and quarrying 0.23 0.66
Education 4.37 3.27
Finance, real estate and business services 8.58 10.22
Public administration and Defense 5.45 5.18
Health and Social Work 1.39 1.16
Other services 2.83 3.07
Transport, storage and communication 4.78 5.54
Wholesale and retail trade, hotels and restaurants 18.96 21.59

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

  2014 2015 2016 2017 2018
World 16,141,056 17,391,198 17,472,848 15,733,042 14,897,144
China 5,274,057 6,208,142 5,293,920 5,132,079 4,218,944
United States of America 671,234 923,922 1,652,397 1,233,930 1,579,509
India 1,002,540 1,184,965 1,336,406 1,131,705 1,277,507
Kuwait 1,676,258 1,303,563 906,856 865,638 1,067,430
Turkey 417,547 546,278 598,395 612,854 635,882

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

  2014 2015 2016 2017 2018
World 4,140,302 1,993,585 1,984,781 2,284,111 1,537,874
Saudi Arabia 198,316 163,779 152,427 179,376 136,486
China 447,396 276,744 311,359 240,855 113,465
United Arab Emirates 111,202 79,224 85,492 120,973 102,752
Israel 114,640 82,145 64,630 79,008 90,777
United States of America 129,046 169,338 144,128 163,981 66,318

Source: International Trade Center COMTRADE Statistics.

Ethiopia’s Top import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 16,141,056 17,391,198 17,472,848 15,733,042 14,897,144
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 2,044,208 2,355,899 2,629,335 2,797,570 2,315,560
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 3,488,850 2,126,602 1,815,828 1,557,550 1,486,078
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 2,054,791 2,852,874 2,048,923 1,394,810 1,175,815
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 1,363,884 1,612,136 1,490,974 1,470,890 871,040
88 Aircraft, spacecraft, and parts thereof 113,421 119,524 556,626 311,950 830,500

Source: COMSTAT database

Ethiopia’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 4,140,302 1,993,585 1,984,781 2,284,111 1,537,874
09 Coffee, tea, mate and spices 833,011 667,598 642,313 808,114 387,387
12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medical plants; straw and fodder 684,088 428,555 487,629 422,853 323,268
07 Edible vegetables and certain roots and tubers 576,200 195,299 235,638 258,915 279,278
02 Meat and edible meat offal 81,723 94,681 94,679 99,297 101,176
41 Hides and skins (other than furskins) and leather 91,067 87,052 68,373 75,787 50,327

Source: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 1,855 2,627 3,989 4,017 3,310

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 8,310 10,937 14,926 18,943 22,253

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

China, United States, India, UAE, UK, Turkey, Germany, South Africa, Egypt, and Kenya.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Textiles, Financial Services, Food and Tobacco, Chemicals, Communications, Business Services, Automotive OEM, Pharmaceuticals, Pharmaceuticals, and Building and Construction Materials.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Chongqing Lifan Industry, Libya Oil Ethiopia, Transsion Holdings (Tecno Telecom), CHT/BEZEMA Group, Black Rhino, Hela Clothing, Petronas, ZTE, Dow Chemical, and Wilmar International.

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

2020 159/190
2019 159/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 168/190
Procedures (number) 11
Time (days) 32
Cost (% of income per capita*) 45.4
Paid-in Minimum Capital (% of income per capita*) 0.0

*GNI per capita used: USD 790
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 132/190
Payments (number per year) 29
Time (hours per year) 300
Total Tax Rate (% of profit) 37.7
Profit Tax (% of profit) 24.6
Labor Tax and Contributions (% of profit) 12.4
Other Taxes (% of profit) 0.7

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 156/190
Time to Export: Border Compliance (hours) 51
Cost to Export: Border Compliance (USD) 172
Time to Export: Documentary Compliance (hours) 76
Cost to Export: Documentary Compliance (USD) 175
Time to Import: Border Compliance (hours) 72
Cost to Import: Border Compliance (USD) 120
Time to Import: Documentary Compliance (hours) 194
Cost to Import: Documentary Compliance (USD) 750

Assumptions

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – The Investment proclamation No. 769/2012
Key guarantees in terms of investment protection include:

Source:United Nations Conference on Trade and Development, iGuide Ethiopia.

Investment Incentives

General incentives

Tax incentives 

To encourage private investment and promote the inflow of foreign capital and technology into Ethiopia, the following incentives are granted to both domestic and foreign investors engaged in qualifying areas:

  1. Tax Exemption:
  2. Tax Deduction:
  3. Suppliers Credit, Tax exemption:
  4.  Custom Duty Exemption:

Source: KPMG, Burundi Fiscal Guide 2018 and Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018