Ethiopia has had an annual growth rate between 8% and 11% for more than a decade, the country is the fifth fastest growing economy among the 188 member countries of the International Monetary Fund.

Ethiopia's export earnings are led by the service sector, primarily Ethiopian airlines, followed by various commodities. Coffee continues to be the main source of foreign exchange, but exports are diversifying and products such as gold, sesame, khat, livestock and horticultural products are increasingly important.

The manufacturing industry represents just over 7% of the country's exports. The banking, insurance, telecommunications, and microcredit industries are restricted to domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather, commercial agriculture, and light manufacturing.

It can be assured that the notorious growth of the jurisdiction is due to progress in the agricultural and services sectors. Despite the great strides that have been made towards eliminating extreme poverty and annual growth, Ethiopia remains one of the poorest countries in the world due to rapid population growth.

Ethiopia is the second most populous country in Africa and the fourteenth in the world with more than 102 million inhabitants.

Its inhabitants have a very low standard of living in relation to the 196 countries in the per capita GDP ranking. As for the Human Development Index or HDI prepared by the United Nations to measure the progress of a country, it indicates that Ethiopians are among the worst quality of life in the world.

But not everything is bad, with all the development that has been observed in Ethiopia it is prudent to emphasize that this jurisdiction has an enormous potential of natural resources that could provide opportunities for expansion in the hydroelectric power industry, fishing and agriculture.

Ethiopia is increasingly opening up to foreign investment and granted its first financial services license in August 2019, allowing the company to import $ 600 million worth of equipment.

It is important to emphasize that investors wishing to import investment capital goods, such as building materials, machinery, plant equipment or spare parts not manufactured in Ethiopia, are guaranteed 100% exemption from customs duties.

If you want more information about this jurisdiction, Foster Swiss can advise you.

Contact our consultants for reference on this issue or any requirement related to our services, or you can contact us directly through info@fosterswiss.com