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etEthiopia: Best Investment Destination in Africa



Ethiopia is located in the Horn of Africa and has land area of 1.14 million km2. Its geographic
proximity to the Red Sea, the Gulf region and Indian Ocean makes Ethiopia a gate way to Africa.
Ethiopia's population is about 91 million, second populous country in Africa after Nigeria. More
than half of Ethiopia's population is young and productive force. Ethiopia is a country of ancient
civilization (among the oldest in the world) and cradle of humankind: the 3.2 million year old
hominid of Lucy, and the 4.4 million year old Ardi. Ethiopia is also the origin of coffee, which
is one of its gifts to the world.


Ethiopia is currently in its era of renaissance. Politically, the country is very stable and peaceful. Ethiopia is run by a federal system of government with nine regional states in the federation and two chartered cities directly accountable to the Federal Government. Democratic elections are held every five years and the Ethiopian People's Revolutionary Democratic Front (EPRDF) is the ruling party since 1991.

Regional Map of Ethiopia

Ethiopia hosts the Headquarters of the African Union, the UN-Economic Commission for Africa
and many regional and international organizations. Addis Ababa, the capital city of Ethiopia, is
also the political and diplomatic capital of Africa. Ethiopia is playing a vital role for ensuring
larger peace and stability in Africa.

The country has been registering an average GDP growth of 10% for the last ten consecutive
years. It is among the top 10 fastest growing economies in the world and the 4th largest GDP at
purchasing power parity (PPP) in sub-Sahara Africa, after South Africa, Nigeria, and Angola.
When we see the structure of the Ethiopian economy: service contributes 45%, agriculture 42%,
& industry 13%. The country has a stable macro-economy, disciplined monetary & fiscal

Regarding the energy sector, Ethiopia has the potentiality of generating over 45,000 MW of
electricity from hydropower, 1350 GW from wind, and 7000 MW from geothermal. Projects are
underway to produce 8,000-10,000MW mainly from hydropower in the year 2015. Moreover, by
giving priority for infrastructure development, Ethiopia has developed a national railway
construction scheme of more than 6000kms. All regional States and cites are connected with
asphalt/gravel roads. The country is linked by international highways with neighboring countries
(such as Kenya, Djibouti, Eritrea, and Sudan).

To expand trade, investment and people-to-people ties Ethiopian Airlines has been expanding its
international destinations. Currently it has a total of 78 international destinations: 20 destinations to Asia, including China (Beijing, Guangzhou, Hangzhou & Hong Kong), 47 destinations to Africa, 7 destinations to Europe, 4 destinations to North America, and 40 cargo destinations
across the world. Ethiopian Shipping Lines also sails to more than 37 destinations in the world
including China (13 ports).