Easier place to Invest ፡ Make fortunes in the manufacturing sector in Ethiopia!

This time, investing in Ethiopia just needs few million dollars to get you a fortune! After 5 years, definitely it will require a damn huge capital to make the same fortune and the competition will be much stiffer. Then why take further time? A sane investor having the right information wouldn’t. Many investors are victims of the past country brand effects and prejudices. This article tries to set the right image to potential investors.

Here are the basic reasons to invest in the manufacturing sector in Ethiopia at this moment.

The basic reasons are mainly four:

1. There is a high demand,

2. There are available but unexploited resources,

3. There are few and inept competitors,

4. The government is eager and giving many incentives.

Let’s see the details:


Large Market Size

Ethiopia with a population close to 100 million is the 2nd populous country in Africa next to Nigeria. In the past decade, Ethiopian economy has shown a successive double digit growth. High number of population coupled with economic growth, is the right recipe for high demand. However, the manufacturing sector in Ethiopia is still in its infancy to satisfy the growing demand.

High Import of Manufactured Goods

Many industrial products are still imported to the country. Edible oil, tyre, glass, packed foods, electronics, furniture, garments, reinforcement bars, cosmetics, paper, toilet soap, machineries, fertilizer, chemicals, pharmaceuticals, pen, exercise book, etc. are still imported in huge quantities to the country congesting the port of Djibouti through which it is imported.

This shows that there is a great market opportunity for those who are interested to go into the manufacturing sector in Ethiopia. For those having the interest, capital, technology and know-how Ethiopia is a place to make fortunes.

Basic Resources

Ethiopia has the highest cattle population in Africa (10th in the world), which is a great opportunity for meat processing and related businesses. This creates an opportunity for abattoirs, tanneries and leather garment factories. It is also an opportunity, subsequently at a later stage, for companies supplying inputs to these companies.

Ethiopia is the place where Coffee has originated and still it is among the top 10 Coffee suppliers in the world. Specially there is a great opportunity for speciality coffee.

Ethiopia is endowed with a lot of perennial rivers and underground waters. It is a country where there is a much GW of electric power generated. There is no reason why other nearby countries consume their expensive fuel and other resources to generate electricity and get bottled water from elsewhere. The high number of population is also a good source of labour for labour intensive operations such as garment manufacturing.

Climate

Ethiopia has a very nice climate. Some say it is naturally air conditioned. This makes it a natural candidate for hospitality industry. Safe, clean and comfortable weather coupled with the beautiful sceneries and people makes Ethiopia one of the best places for hotels & lodges. Its diverse people, culture and landscape is completely amazing.

Few & Inept Competitors

As the manufacturing industry in the country is in its infancy, there are few competitors. And many of the competitors are not that strong. The prevailing conditions of demand and supply gap didn’t force them to be strong. Most are inept. However, strong and world class manufacturers such as Heineken in Brewery and Dangote in cement have entered the market with strong marketing strategies. And these companies have placed themselves as strong competitors in just less than a year. This shows that the market is hungry for strong players.

Investment Policy

The investment policy gives a lot of incentives for those who invest in manufacturing industries. The incentives range from access to capital, tax exemption periods, provision of land to lease of working halls with power & water. Loan provisions go up to 85% in some cases.

Other Opportunities

For those who plan to engage in export opportunities to U.S.A. and EU, Ethiopia enjoys the Africa Growth and Opportunity Act (AGOA) and Everything But Arms(EBA) respectively which exempt export goods from duty.

Don’t forget that Ethiopia is the seat of African Union head quarter and many other international organizations which will create a lot of networking opportunities and serve as a gateway to Africa.

Last but not the least, Ethiopian Air Lines which flies to many corners of the world with its passenger and cargo flights adds the icing to the cake.

All said, Ethiopia has a pool of professionals which can work for a payment far less than what is paid in other parts of the world. This is nothing but due to the fact that life is inexpensive for the weather is amiable and doesn’t require the associated costs to make it cool or hot. In many parts of Ethiopia, the average temperature is 18 to 28 degree Celsius.

For those having the interest to invest in Ethiopia the above glimpse will give a birds eye view of the opportunities. In fact, as is the case in many countries, all investment opportunities might not be that cozy. They need an expert who knows the local traverses to help you manage any hurdles that might happen and make your life easier.

For any queries and help, feel free to contact and you are most welcome.

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