Investment Opportunities in Ethiopia

Investment opportunities  in Ethiopia

Ethiopia has been a very attractive destination for the investors because of the following reasons.

A land of vast opportunities

  • Stable political climate
  • Liberalized free market economy
  • Conducive macroeconomic policies and stable foreign exchange regime
  • Huge home market of 65 million people
  • Access to 23 African countries through the Common Market for Eastern and Southern Africa
  • Preferential treatment to the European market under the ACP-EU Lome Convention
  • Favorable export market status under the US Generalized System of Preference (GSP)
  • Huge domestic raw material base
  • Abundant and inexpensive labor force
  • Strategic location with proximity to the lucrative markets of the Middle East, Europe and Asia
  • Attractive incentive packages
  • Participation in the privatization opportunities


Excellent opportunities are available in Ethiopia for mineral prospecting and development. The Ministry of Mines and Energy records show that Ethiopia’s green stone belts offer one of the finest areas for gold mineralization as compared to anywhere in the world. More than 500 metric tons of gold deposits have been identified by Government exploration. Gold reserves are expected to be identified in at least seven regions of Ethiopia. The country apart from gold reserves is blessed with good deposits of tantalum, platinum, nickel, potash and soda ash. Included in the construction and industrial minerals are marble, granite, limestone, clay, gypsum, gemstone, iron ore, coal, copper, silica, diatomite, bentonite, etc. Fossil energy resources of oil and natural gas are found in the four major sedimentary basins, namely the Ogaden, the Gambella, the Blue Nile and the Southern Rift Valley. The country is also endowed with 30,000 Mw of hydro-power resources.

·         Manufacturing :

·         The country has a large domestic market potential. And there are many opportunities for labor intensive and resource based industries because of the availability cheap & trainable labor. Major opportunities in the manufacturing sectors offer attractive potential benefits to prospective investors in food and beverage, leather, electronic, building materials and non-metallic mineral and metallic industrial sub-sectors.


·         Tourism in Ethiopia is picking up slowly. There are a lot of things to be offered to the tourists. The visitors would find mesmerizing landscapes and awe-inspiring historical sites and monuments. The highlands of Ethiopia also have an attractive landscape, scenery and wild life. The African Rift Valley system which had a wide variety of wildlife and numerous bird species both endemic and common, are found in Ethiopia. Thus a substantial volume of traffic is directed to this area. The beautiful Tis Issat Falls on the Blue Nile (Abay) river, the endemic wildlife in Semien Mountains, the Sof Omar Cave in the South East are some of the interesting sites. The rock-hewn churches at Lalibela and the ancient buildings of Yeha and the obelisks at Axum, the medieval palaces at Gondar and the monasteries of Lake Tana, Debre Damo and Debre Libanos are the main tourist.

·         The available tourism potential creates great opportunities for private investment in hotels, lodges and international restaurants.

Forestry & Apiculture :

·         An estimated 2.5 million hectares of natural forest presently remains in 58 designated National Forest Priority Areas (NFPA) in Ethiopia. Investors are welcome to invest in integrated commercial production of structural timber, pulp-wood, match wood or even fuel wood. The production of rubber and natural gum in Ethiopia also offers exciting opportunities for private investment.

·         With some 3.3 million beehives, Ethiopia is the leading honey and bee wax producing and exporting nation in Africa. This offers excellent prospects for private investment in apiculture.

Livestock :

The large livestock resources that include 35 million cattle, 11.4 million sheep and 9.6 million goats, as a contributor to the national economy, leave much to be desired. Investment opportunities are potentially attractive for modern commercial livestock breeding, production and processing of meat, milk and eggs.

·         Investment opportunities of significant potential are also available in ostrich, civet cat and crocodile farming.


Many opportunities fish production and processing for fresh water fish Also in addition, the country’s fresh water bodies have a potential of an estimated annual fish production of 30,000-40,000 tons, of which less than ten per cent is presently being exploited.


The country’s agro-climatic conditions make it suitable for the production of a broad range of fruits and vegetables which mainly include citrus, banana, mango, papaya, avocado, guava, grapes, cabbages cauliflower, okra, egg plant, tomato, celery, cucumbers pepper, onion, asparagus, water melon, carrots, green beans and cut flowers. Cut flower and vegetable production are fast growing export business. The horticulture sub-sector in general holds great potential for private investment.