Ethiopia has long been considered the “Capital of Africa”, thanks to its history as an independent power and its position as headquarters of the African Union.

In 1991, Ethiopia boldly emerged from a decade of corroding Marxist rule and has remarkably progressed to become one of the continent’s most exciting and stable frontier market opportunities.

Today, Schulze Global views Ethiopia as a strong independent nation with a young, but robust private economy, led by a government that supports private entrepreneurship and is committed to fostering economic growth. Schulze Global also sees Ethiopia as an emerging economic capital for the region, eventually leading the way in industrial growth, international trade, and global integration. With continued market reforms, education, increased global integration, and international business policies that promote an open and competitive economy, Schulze Global foresees Ethiopia utilizing its resources to become East Africa’s business leader.

Market Size

Ethiopia is home to Africa’s second largest population, offering a domestic market of around 80 million consumers – twice as large as the next largest East African market in Tanzania and second only to Nigeria across the continent.

As a member of the African, Caribbean, and Pacific States (ACP) and beneficiary of EU’s “Everything But Arms” trade preferential regime, Ethiopia’s exports have quota and tariff-free access to the European Union, as well as similar benefits to the United States under the provisions of the African Growth and Opportunity Act (AGOA).


A Wealth of Opportunities

Ethiopia offers opportunities that are virtually untapped by foreign capital. Agriculture comprises one of the most established domestic industries in the country, and Ethiopia is Africa’s leading exporter of coffee. Significant potential in agriculture exists within Ethiopia’s immensely varied climate and diverse soil types which are suitable for a wide range of products.

Various service sectors, ranging from wholesale and retail sales to real estate services to communications, have been growing significantly over the past five years, and service industries as a whole are expected to grow dramatically in the years to come. In addition, heavy industry, mining and construction are expanding in connection with the growth of the economy, and manufacturing is already prevalent on a smaller scale.

The climate, along with the history and traditions of the country, provide a great asset for tourism. The country’s tourism infrastructure includes luxury and mainline hotels, tour operators, a leading airline, and well-known natural, historical and cultural attractions – although substantial portions of Ethiopia’s tourism potential remain untapped.


Dynamic and Growing Economy

Since the launch of its economic reform program in 1991, Ethiopia has established a remarkable track record of macroeconomic stability. It boasts the fastest growing non-energy-based economy in Africa, with an average of 10% annual real GDP growth over the past five years. This growth has been spurred by strong performance across a number of sectors, robust government spending and export diversification.

In an effort to create a distinctly pro-business climate, Ethiopia is currently negotiating membership into the World Trade Organization (WTO).


Stable Operating Environment

Ethiopia’s operating environment is stable and conducive to private enterprise. Ethiopia has the distinction of offering one of the cleanest business climates in the developing world. According to UNCTAD, “Ethiopia may well be, among Least Developed Countries, the country with the lowest levels of corruption.” The country’s bureaucratic corruption is minimal and it enjoys one of the lowest crime rates in the region. The two main religions in Ethiopia, Christianity and Islam, have coexisted peacefully for over a thousand years and continue to do so today. Ethiopia also has one of the largest armies on the continent and is the second largest contributor of peacekeeping forces.

Ideal Geographic Location

Geographically, Ethiopia is strategically located as the bridge between Africa and the Arab world. The country’s role as Africa’s political hub provides Ethiopia with the potential to influence Africa’s growth and development in the larger region, as the country benefits from the presence of the continent’s largest diplomatic corps, as well as a host of UN agencies and NGOs.