Ethiopia presents a unique historical and cultural dynamism for investors in terms of its resident’s varied interest and consumption behavior. With more than 99.75 million population dispersed throughout the country, it has an untapped market for investment. Moreover, the strategic and geographical location of Ethiopia in the region as well as the presence of Ethiopian Airlines, makes the country a gateway to Africa through a networked connection and modal integration.
As can be seen from the World Bank’s Ease of Doing business ranking, Ethiopia’s performance in terms of improving the business and investment environment is progressing year after year. The country showed remarkable performance in improving contract enforcement, paying taxes, registering property and custom clearing.
Moreover, the revision of the investment regulation no. 474/2020 allows more room for local and international investors to take part in the flourishing business environment of the country. Shifting of customs related services to online provision is also expected to improve the business environment for investment.
More specifically, investing in the transportation and infrastructure sector of Ethiopia presents a unique opportunity and profit mix in terms of its readiness, vast area of land and young population. It is also an integral part of creating jobs and expanding economic development.
At Ministry of Transport, we are proud to continue our efforts to increase investment in transport infrastructure and logistics services, and bring about transformation in the sector by engaging with the private investors and development partners. We are ready to think forward and move forward. We encourage collaborations and partnerships shining solutions to transform Ethiopia’s Transport and logistics sector.
Why Ethiopia?
Growing Economy:
- Ethiopia’s economy experienced strong, broad-based growth averaging 9.8% a year from 2008/09 to 2018/19, Ethiopia’s real gross domestic product (GDP) growth rebounded to 9% in 2018/19. (World Bank Global Economic Prospects)
- Stable and positive economic outlook forecasts of more than 7% projected by IMF and the African Development Bank, placing Ethiopia among the world’s growth leaders over the medium term.
Regional Hub with access to wider market:
- Addis Ababa has emerged as a regional hub and is home to key international organizations such as the African Union (AU) and the UNECA, and the UNDP.
- Addis Ababa is also the main aviation hub for Africa and the home of Ethiopian Airlines, which has won repeated recognitions as the best airline in Africa.
110 international passenger destinations (62 in Africa, 22 in Europe and America and 26 in the Middle East and Asia), 23 domestic passenger destinations, and 57 cargo destinations, carrying two-thirds of Africa’s airfreight.
- Ethiopian products have duty-free, quota-free access to a wide market, including major markets such as the USA, and the EU:
Large domestic market of over 100 million consumers, COMESA (Common Market for Eastern and Southern Africa), with 19 member countries and over 400 million people. AGOA (African Growth and Opportunities Act) and GSP (Generalized System of Preference) of the United States Government initiatives, and EBA (Everything But Arms) of the European Union
- At the continental level, Ethiopia has acceded to the African Continental Free Trade Agreement (AfCFTA)
Improved Economic Infrastructure
- Power production has increased steadily over the last ten years, with 99% sourced from clean energy in the form of hydropower.
- Ethiopia has the second-largest hydropower potential in Africa The Grand Ethiopian Renaissance Dam (GERD) – the largest hydroelectric power dam in Africa being built on the Nile River – is expected to generate 6,000MW of electricity. This coupled with Gilgel-Gibe III (1,870MW) and Genale-Dawa III (254MW) and other wind power projects will make Ethiopia a regional powerhouse.
- Cheapest electricity rate in Africa and the whole world.
Abundant and Affordable labor
- Ethiopia’s labor law, which regulates worker-employer relations, is in line with international conventions.
- With over 50 million workers, Ethiopia has the second largest labor force in Africa (World Bank’s Doing Business Report, 2020).
- Ethiopia’s minimum wage is among the lowest in Africa, with only 5 countries – Burundi, Uganda, Egypt, Gambia and Malawi – having lower minimum wages (International Labor Organization, 2010/11).
Competitive Incentive Packages
Ethiopia offers a comprehensive set of incentives, particularly for priority sectors, such as:
- Customs duty payment exemption on capital goods and construction materials, and on spare parts whose value is not greater than 15% of the imported capital goods’ total value;
- Investors have the right to ask for a refund of customs duty paid on inputs (raw materials and components) when buying capital goods or construction materials from local manufacturing industries.
- Several export incentives, including the Duty Draw-Back, Voucher, Bonded Factory and Manufacturing Warehouse, and Export Credit Guarantee schemes.
- In addition, the government guarantees the remittance of profit, dividends, interest payments on external loans, and the provision of land at competitive lease prices.
WHY PARTICIPATE IN THIS SUMMIT?
- Right time, Right now! Leverage the right moment, the right place and the right time to Invest in Ethiopia’s transport and logistics sector;
- Develop the possibilities with several new business opportunities in transport and logistics sector;
- Share Solutions with a vast network of foreign and local investors-B2B and B2G;
- Navigate the future with a country that provides a myriad of attractive investment opportunities in transport, logistics or supply chain management,
- Get all the narratives to imagine more, measure the difference and invest in a better way to transform Ethiopia’s untapped market.
DISCUSSION POINTS
National Transport Policy
National Logistics Strategy
National Logistics Sector Policy
Ministry’s 10 years perspective Plan
Potential Investment projects
Investment Incentives and readiness
Opportunities of Grant Financing Scheme modalities
The role of Public Private Partnership in advancing the Transport sector
Opportunities of Foreign Direct Investment on the Transport Sector
WHO IS GOING TO BE THERE?
- Diplomats and the international community residing in Ethiopia
- Ethiopian Private investors
- International companies who are interested in the Ethiopian transport sectors
Chairman of DP world
DB Consulting and Engineering- Deputy CEO
DB Schenker
Bolloré Logistics
China Engineering Consultancy Co. & Sichuan Provincial Architectural Design and Research
- Institute
Siemens
And many more
- Various countries’ chamber of commerce
Dubai Chamber of Commerce
Kenya Chamber of commerce
Ghana Chamber of Commerce
Pan-African chamber of commerce
Intermediaries and business consultants
Other government Sectors
CONTACTS
Email : kalkidana@motr.gov.et or fregbree@gmail.com
Tel: +251913902045 or +251930306940
Office No. +251115518292
Register online at: www.ethiotransport.gov.et
Embassy of the FDR Ethiopia (Source)
