ETHIOPIA RISING

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.

ETHIOPIA RISING

1GROWING ECONOMY

WHY ETHIOPIA?

• 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.

Ethiopia received the World Travel and Tourism Council (WTTC) safe travel stamp, Feb 2021.

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)

2

• Photo taken before COVID-19

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.

3

Ethiopia has been expanding and improving telecommunication

service and road networks connecting national and regional markets.

The Grand Ethiopian Renaissance Dam (GERD)

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).

4

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.

5ETHIOPIAN TRANSPORT INVESTMENT SUMMIT

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.

•

ETHIOPIAN TRANSPORT INVESTMENT SUMMIT

DISCUSSION POINTS


Skylight Hotel | Addis Ababa March 24-25, 2021

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

National Transport Policy National Logistics Strategy National Logistics Sector Policy Ministry’s 10 years perspective Plan


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

MINISTRY OF TRANSPORT SECTORS




POTENTIAL AREAS OPEN TO INVESTMENT MORE SPECIFIC PROJECTS UNDER EACH CATEGORY TO BE PRESENTED AT THE SUMMIT

• Port to Port Development and logistics Services Development

• Logistics City Development

• Dry port and Silo development

• Cool- Chain Logistics Development

• Railway infrastructure and operational Projects

• Pipe line transport development

• Maritime Training Institution and Manning Services

• Road Transport Services Development

• Road Infrastructure Development

• Aviation Services Development Project


CONTACTS

Email : [email protected] or [email protected]

Tel: +251913902045 or +251930306940

Office No. +251115518292

Register online at: www.ethiotransport.gov.et

Documents

ETHIOPIA RISING