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Ethiopia –Land of Origin
Investment Opportunities
Consulate General of Federal Democratic
Republic of Ethiopia
Mumbai – India
World Trade Center
Oct. 29, 2018
10/31/2018
Fast growing economy 11% avg. growth for the last the last decade.
2nd most populous country in Africa Close to 100 million people
Untapped resources 74 million hectares of arable land Livestock- agro-processing, leather Export: Leading exports, gold 21
%,Coffee19% followed by live animals, oilseeds, flower 2016
GDP per capital 800 USD
• Average life expectancy 66y ears,
Language: Working Federal working language Amharic,
English is widely spoken
Ethiopia: Brief Country Profile
10/31/2018
Why Ethiopia?
1. Fast and sustainable economic growth and development,
– Double digit average growth of for the last decade,
– The first fast growing economy in Africa,
2. Stable economic and political environment
– Political, security, macroeconomic stablity
3. Access to international markets,
– AGOA, EBA, COMESA
4. Labor Force
– abundant and wage competitive labor force, minimum average wage of $50 to 100,
– Easily conversant and Trainable
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Why Ethiopia? Cont’d….
5. Fast growing infrastructure and very cheap green energy
– Transport: Airlines, Railway, Express Ways
– Energy: Hydropower, Wind, Solar projects
– Industry Parks
6. Attractive investment incentives focusing on export
7. Naturally conditioned weather (no need for heater or cooler)
8. Active and Continuous Government Support
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Priority Sectors:
Focus on Manufacturing Industries
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Ethiopian Investment Policy
• The Ethiopian Constitution and the Investment Law guarantee
protection of private property and investment
• In addition, Ethiopia is a signatory of 29 Bilateral Investment
Treaties and 6 Multilateral Investment Agreements that stipulate:
• Protection of private property rights
• Principle of National Treatment
• Repatriation of capital and profit
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Investment Policy initiatives
• Incentives for domestic & foreign investors
o Income tax exemption (2 to 8 years)
o Exemption from the payment of customs duty
o Carry forward of losses: half of the tax holiday period
o Export Incentive Schemes: Duty Draw-Back scheme, Voucher scheme, Bonded Manufacturing Warehouse scheme and Export Credit Guarantee scheme
o Hand holding Support through the Sector Supporting Gov. Institutes
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Investment Incentives
Repatriation of investment and profits
Repatriation: of profits, dividends, principal and interest payments on external loans out of Ethiopia in convertible currency
Hiring Expats
The right to employ expatriate experts and management staff; there is also an exemption of 2 years corporate income tax for exporting companies of expat employees
Customs duty exemption
on capital goods, construction materials and partially on spare parts (as much as 15% of the total value of capital goods)
Income tax exemption
2-8 years, may be more for manufacturing of textile and garment inside IPs and 10-15 years for Industrial Park Developers
Other investment Incentives
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Market Opportunities
• Domestic market with over 100 million people
• COMESA
19 member countries
Over 430 million people
• AGOA of the USA Government initiative
• EBA (Everything But Arms) initiative of the European Union
• Proximity to the Middle East
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Proximity of Ethiopia to Other Parts of the World
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Industrial Parks Development
By 2017 Cluster
Hawassa Apparel & Textile
Mekelle Apparel & Garment
Adama Textile
Dire Dawa Apparel & Textile, Assembly
Kombolcha Apparel & Textile
Kilinto Pharma, Food & Beverages
Bole Lemi Apparel and Textile 10/31/2018
Hawassa Eco-Industrial Park -
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Mekelle Industrial Park
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Adama Industrial Park
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Kombolicha Industrial Park
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Major Investment Opportunities
A) Manufacturing Sector
– Textiles & Garments/Apparel
– Production of textile fabrics
– Production of garments
– Production of other textile products (carpets,
curtains, etc.)
– Leather & Leather Products
– Tanning of hides & skins up to finished level
– Leather goods & articles (shoes, garments, etc.)
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Major Investment … Cont’d
• Chemical Products
• 4. Pharmaceutical Products
• 5. Metal Engineering & Steel Products
• 6. Agro-processing, i.e. processing of horticultural, cereal, edible oil, sugar,
animal feed, etc products, brewing and wine making, etc.
B) AGRICULTURAL OPPORTUNITIES
– Rubber Tree Plantation
– Sugarcane Plantation
– Horticulture
– Floriculture
– Fiber Crops : Cotton, jutes, etc.
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Major Investment … Cont’d
C) CONSTRUCTION OPPORTUNITIES
• Grade 1 construction contracting
• Real estate development
• Water works construction contracting including water-well
drilling
• Specialized construction contracting (e.g. electro-
mechanical)
D) TOURISM OPPORTUNITIES
• Star rated hotels lodges, restaurants
• Tour operations
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Major Investment … Cont’d
E) MINING • Exploration for gold and related base metals;
• Exploration for Tantalum;
• Assessment for iron and phosphate occurrences;
• Exploration for platinum group elements (PGE);
• Exploration for epithermal gold and associated metals;
• Advanced exploration and development in joint venture;
• Exploration for petroleum;
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Major Investment … Cont’d
F) Energy
– Construction of Hydropower power dams, Geothermal and wind power on EPC arrangement;
– transmission construction;
– Manufacturing of Solar technologies;
– Petroleum fuels replacement with bio-fuel blending (10% ethanol blending is operational);
– Introduction of electric rail system for major cities.
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Major Investment … Cont’d
G) Water
• Dams and related hydraulic infrastructure;
• Irrigation schemes;
•Water supply schemes including sewerage system;
•Drilling of wells for domestic water supply and irrigation;
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Ethiopia – India Bilateral Trade Relation
• Relationship traced back to Axumite period, around 1st C AD.
• India and Ethiopia have long-standing economic and commercial relations, which are centuries old and can be.
• During the Axumite Kingdom, Indian traders had links with the ancient port of Adulis in the eastern part of Ethiopia and traded silk and spices for gold and ivory.
• In recent years, grown significantly, especially in the areas of trade, investment, agriculture and infrastructure projects.
• India is the second largest in capital and number of companies, above 600, invested in Ethiopia, next to Turkey and China respectively.
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Ethiopia’s Exports to India
• Major imports by India from Ethiopia were:
–pulses,
–precious and semi precious stones,
– vegetables & seeds
– leather and spices.
• India is the second most important source of imports for Ethiopia, contributing 7.4% of all of Ethiopia’s imports next to China.
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India’s Export to Ethiopia
• Bilateral trade stood at US$1.2 billion in 2015,
– India’s exports to Ethiopia were over US$1.15 billion
– Imports - US$65 million.
• Major export Items of India
• Iron & Steel Products, accounting for 17.2% of India’s total exports to Ethiopia.
• followed by rice (12.7%),
• pharmaceuticals (10.6%),
• transport equipment (5.6%),
• machineries (5.5%),
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India Export to Ethiopia…
• sugar (5.2%),
• paper products. (4.5%),
• plastics (3.3%),
• rubber(3.2%),
• textile and clothing (3.0%), etc.
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Some Major Indian Companies Invested in Ethiopia
• Asian Paints • Arvid • Raymonds • Kanoria • Fontana Flower Plc. • Bajaj Manufacturing Plc. • Samaka Stones Pvt Ltd.
• Telecommunications Consultants India Limited (TCIL),
• EXIM Bank of India, • Oxford Group of
Companies, • Roto PLC, • Whitefield Cotton Farm
PLC, • Ruchi Agri PLC, • Verdanta Harvests PLC,
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Some Major Indian Companies ….
• Cadila Pharmaticals
• Tata International
• Karuturi Global Plc.
• Kanoria Africa textile
• Mohan Group of Campanies
• Anmol Products Ethiopia Plc
• Neha International PLC,
• Asian Paintings,
• Arvind Mills,
• Allana sons Ltd.,
• Kanoria,
• SVP Group,
• Fontana Flower PLC,
• Balaji Manufacturing PLC,
• Samaka Stones Pvt. Ltd. Co.,
• Velocity Apparel etc.
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Thank You!
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