Bolstered by its large domestic market, low cost of energy, favorable investment climate, labor cost advantages, strong trade relationships, and the introduction of special economic zones (SEZs) along major trading corridors, Ethiopia offers endless opportunities. The country also enjoys diverse agro-ecological zones, adequate irrigation, favorable climatic conditions, and fertile soil, all of which create a ripe environment for agro-processing.
Ethiopia’s competitive wage rates and large industrial workforce have also boosted our capacity in light manufacturing―including textile, apparel, and leather products―enabling us to become a strategic partner in global value chains. We also benefit from preferential trade agreements with key international markets (e.g., Everything But Arms, African Continental Free Trade Area, Common Market of Eastern and Southern Africa). These benefits are accessible to Ethiopia-based investors.
It is no wonder that the manufacturing sector receives over 50% of FDI flow in Ethiopia. Investors can explore opportunities in various sectors including textile and apparel, leather and leather products, pharmaceuticals, agro-processing, packaging, and more.
It is no wonder that the manufacturing sector receives over 50% of FDI flow in Ethiopia. Investors can explore opportunities in various sectors including textile and apparel, leather and leather products, pharmaceuticals, agro-processing, packaging, and more.
Subsectors
The opportunity to serve a growing domestic FMCG market and gain access to regional and international export markets.
- The opportunity to serve a growing domestic pharmaceutical market.
- Ethiopia — the new sourcing hub for textile and apparel.
- Quality resources plus competitive cost—a recipe for success in the global leather value chain.
