Business Dynamics: Ethiopia

May 2023

Ethiopia ranks in the bottom third in the global Economic Freedom Ranking in 2022, due to an unfavourable business environment, with limited monetary and labour freedom. Skills shortages, poor transport and ICT infrastructure, as well as restrictive trade environment, continue to impede Ethiopia’s business climate. However, as one of the largest African economies, with abundant natural resources, Ethiopia remains an attractive destination for FDI, despite heavy constraints on the flow of investm

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

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Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

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The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Business Dynamics: Ethiopia


Labour and monetary limitations continue to impede Ethiopia’s business environment
Ethiopia received high FDI inflows in 2021, despite unfavourable investment climate
Educational disparities in rural areas contribute to low education attainment
Underdeveloped transport infrastructure constrains Ethiopia’s logistics
Scarce telecom investments, income inequality leave most households unconnected
Chart 1 Operational and Legal Environment Key Indicators
Chart 2 Index of Economic Freedom Ranking by Pillar in Ethiopia and Regional Comparison 2022
Chart 3 Index of Economic Freedom Ranking 2017-2022
Chart 4 Index of Economic Freedom: Judicial Effectiveness Pillar Rank in Ethiopia and Regional Comparison 2017-2022
Chart 5 Index of Economic Freedom: Government Integrity Pillar Rank in Ethiopia and Regional Comparison 2017-2022
Chart 6 Corruption Perceptions Ranking: Ethiopia and Regional Comparison 2017-2022
Chart 7 Key Financial and Investment Indicators
Chart 8 Index of Economic Freedom: Property Rights Pillar Rank in Ethiopia and Regional Comparison 2017-2022
Chart 9 Key Skills and Labour Indicators
Chart 10 Population Aged 15+ with Higher Education 2017-2022
Chart 11 Education Indicators 2022
Chart 12 Number of University Graduates by Programme 2022
Chart 13 Employment by Age 2022
Chart 14 Employment by Gender 2022
Chart 15 Youth Unemployment Rate 2017-2022
Chart 16 Labour Structure Change 2017-2022
Chart 17 Labour Structure Comparison 2022
Chart 18 Self Employed as % of Total Employed Population 2022
Chart 19 Index of Economic Freedom: Labour Pillar Rank in Ethiopia and Regional Comparison 2017-2022
Chart 20 Wage per Hour in Manufacturing Sector 2017-2022
Chart 21 Labour Market Regulations in Ethiopia and Regional Comparison 2022
Chart 22 Key Infrastructure Indicators
Chart 23 Index of Economic Freedom: Trade Freedom Pillar Rank in Ethiopia and Regional Comparison 2017-2022
Chart 24 The Top Four Largest Ethiopia’s Export Categories 2017-2022
Chart 25 Turnover of Transport and Storage Industry by Category in Ethiopia 2022
Chart 26 Transportation Mode Indicators in Ethiopia and Regional Comparison
Chart 27 Road Infrastructure 2022
Chart 28 Innovation and Digitalisation Key Indicators
Chart 29 Network Readiness Ranking by Pillar in Ethiopia and Regional Comparison 2022
Chart 30 Network Readiness Ranking for Ethiopia and Regional Comparison 2019-2022
Chart 31 Network Readiness Ranking: Technology Pillar for Ethiopia and Regional Comparison 2019-2022
Chart 32 Intellectual Property: Ethiopia Compared to Selected Regional Peers 2022
The 2022 Index of Economic Freedom
The Network Readiness Index (NRI) 2022

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