EthiopiaArticle

Doing Business in Ethiopia

Doing Business in Ethiopia Ethiopia, the second largest African market with a burgeoning economy and a population of over 110 million, offers a promising landscape for Dutch businesses seeking expansion into new markets. The country’s ongoing economic, political, and social...

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Sustainable Development Goal 8 Sustainable Development Goal 9 Sustainable Development Goal 17

Doing Business in Ethiopia

Ethiopia, the second largest African market with a burgeoning economy and a population of over 110 million, offers a promising landscape for Dutch businesses seeking expansion into new markets. The country’s ongoing economic, political, and social reforms create favorable conditions for foreign investors.

Opportunities for Dutch Companies

The Ethiopian government is dedicated to fostering a favorable business environment for foreign investors, offering incentives such as tax breaks, land access, and support services. In addition, untapped business prospects span various sectors, including agriculture, manufacturing, renewable energy, and tourism.

Challenges of Doing Business in Ethiopia

However, conducting business in Ethiopia presents challenges, including: limited access to finance and foreign exchange, especially for small and medium-sized enterprises, underdeveloped infrastructure resulting in inefficiencies and high logistics costs, a shortage of skilled labor, particularly in specialized fields, bureaucratic hurdles and corruption that can impede business operations and inflate costs, and recent political unrest that has introduced uncertainty and insecurity to the business environment.

Support for Dutch Businesses

Despite these challenges, Dutch companies can succeed in Ethiopia by conducting thorough due diligence, adapting to the local business culture, and building strong relationships with local partners. The Ethiopian Investment Commission offers support to foreign investors, and the Ethiopian Netherlands Business Association assists Dutch businesses operating in Ethiopia.

Ethiopia offers both opportunities and challenges for Dutch entrepreneurs. Companies willing to navigate these challenges can tap into significant growth potential in this rapidly evolving market.

For further details, please read the complete factsheet or contact [email protected] for more information.


More information?

Contact Elham Mohammed Abdi

Project Officer Ethiopia

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