Ethiopia’s government has introduced comprehensive and remarkable reform programmers, which have already achieved good results. Particularly noteworthy is the high level of investment in improving the country’s infrastructure. The large population of over 117 million people offers low labor costs and a good sales market due to the growing middle class.
Which business is profitable in Ethiopia?
1. Construction and Real Estate
Construction and Real Estate is becoming the best sector for investment in Ethiopia. Posh Apartments, Luxury Condos, houses with one or more stories and Villas are filling the landscape of the outskirts of Addis Ababa.
But still there is an increased demand for short or long term residence, office buildings, properties such as warehouses, etc. Addis Ababa is a city with many diplomatic missions, International and regional organizations such as UN, AU, EGAD, NGO’s and their different offices.
For Ethiopians living abroad, it is time for you to seize the opportunities in Construction and Real Estate sector and build or buy a property. The Ethiopian Diaspora has so far invested more than USD 1 Billion in Ethiopia.
2. Small Manufacturing Business in Ethiopia
There is a wide scope for small-scale manufacturing businesses to prosper in Ethiopia. As a matter of fact, there is a big number of successful business owners in Ethiopia are in the manufacturing industry.
The main industries in the country are food processing, beverages, textiles, leather, garments, chemicals, and construction materials. If you have the required capital, one must consider launching a small-scale manufacturing unit. And try to tap the export market as the existing manufacturing enterprises have not been able to capitalize as yet.
3. Agriculture and Food Processing
This is an important industry in Ethiopia. Accounting for over 85% of employment for the people of Ethiopia, agriculture is vital. There are different types of crops that can be grown in the country ranging from cereals to fibre crops and flowers, to teas and coffee plantations, etc. Forestry is also an important resource in the country along with fisheries. Also, commercial processing of produce and raw materials gotten from agriculture provides an opportunity for business in Ethiopia.
4. Vending machines
Most people in Ethiopia are always on the move and would not like to waste precious time in the process of buying things. This has led to an increase in the demand for vendors and their machines. A vending machine for the sale of small items like drinks, snacks, water, milk, juice, newspapers, cigarettes, etc. can be installed in different strategic places to meet the immediate needs of people on the go. This is a splendid business idea for busy places like a bus terminus, schools or colleges or even a busy residential area in Ethiopia.
5. Fast Food Joint
Starting a fast food joint is a good business idea in Ethiopia. Burgers, drumsticks and other fast food are very popular here. Hence you can start a fast food joint and earn a good profit. Serving good quality food will ensure more customers coming to your fast food shop.
Licensing and Registration Process in Ethiopia
Ethiopia’s new Investment Permit Application process is simple and requires only a few steps and, those steps vary slightly depending on the business form under which investors plan to operate their business:
- Step 1: Collect information from Ethiopian Investment Commission (EIC) Information and Investment Promotion Department about requirements, incentives, etc.
- Step 2: Collect application form from Information Desk.
- Step 3: Submit application with passport and visa to start new investment permit application in Licensing and Registration Department.
- Step 4: Collect bank letter from Licensing and Registration Department to open an account at National Bank of Ethiopia.
- Step 5: Transfer/deposit cash in an opened bank account.
- Step 6: Collect confirmation letter from bank which states the bank account is already opened and money is transferred/deposited.
- Step 7: Collect investment permit certificate from Licensing and Registration Department.
Private Limited Company (PLC)
- Step 1: Collect information from Information and Investment Promotion Directorate about requirements, incentives, etc.
- Step 2: Collect application form memorandum and article of association from Information Desk.
- Step 3: Submit draft memorandum and article of association in Licensing and Registration Department
- Step 3: Check uniqueness of the company name from Ministry of Trade (MoT) database
- Step 4: Collect letter of clearance for unique company name from Licensing and Registration Department
- Step 5: Edit and authenticate memorandum and article of association in Licensing and Registration Department.
- Step 6: Collect letter to the National Bank of Ethiopia from Licensing and Registration Department to open an account at the bank.
- Step 7: Open an account in the bank and transfer/deposit money.
- Step 8: Collect confirmation letter from the bank which states the bank account is already opened and money transferred, authenticated lease agreement from documentation and authentication office and TIN number from CUSTOM and Revenue office.
- Step 9: Fill application form /profile/ available at EIC Information Desk.
- Step 10: Collect investment permit certificate and principal registration from Licensing and Registration Department
Branch /Multinational Company
- Step 1: Collect information from Information and Investment Promotion Directorate about requirements, incentives, etc
- Step 2: Collect application form from EIC Information Desk
- Step 3: Submit application, authenticated parent (mother) company document, new company general manager’s passport and visa in Licensing and Registration Department to start new investment permit
- Step 4: Collect a letter to the National Bank of Ethiopia from Licensing and Registration Department of EIC to open an account in a bank
- Step 5: Open an account at the bank and transfer/deposit cash
- Step 6: Collect confirmation letter from bank which states the bank account is already opened and money is transferred/deposited
- Step 7: Collect investment permit certificate from Licensing and Registration Department