Manufacturing in Ethiopia

Manufacturing business in Ethiopia offers huge opportunities and potentials in a range of well-developed world class export sectors such as textiles and garments, leather and leather products, food staffs and pharmaceutical and metal and engineering products.

Area:1.104 million square kilometers
Arable land: 513,000 square kilometers (45%)
Irrigated land: 34,200 square kilometers (3%)
Population: 107 million in 2022 (CSA Population Projections for Ethiopia 2007-2037)
Working age Population: 50.7%
Population Under age of 15: 40.1 million
GDP: $107 Billion (2019/2020)

Per Capita GDP $1,080 (2019/2020)

REASON FOR INVESTMENT IN ETHIOPIAN MANUFACTURING SECTOR

GROWING POPULATION AND RISING CONSUMER SPENDING

The total population of Ethiopia is over 107 million in 2022 (CSA Population Projections for Ethiopia 2007-2037) of which 22.5% of the total population is residing in urban areas. Ethiopia’s population will rise to 119 million and 131 million in 2027 and 2032, respectively. Ethiopia is the second populous countries in Africa (next to Nigeria) and thus potentially one of the largest domestic markets in Africa.

AFRICAN MILLIONAIRES

According to Business Insider Africa Top Ten wealthy countries in Africa 2021 report “the “Big 5″ wealth markets in Africa are South Africa, Egypt, Nigeria, Morocco and Kenya – together these five countries account for over 50% of Africa’s total wealth.”

South Africa has over twice as many millionaires as any other African country, whilst Egypt has the most billionaires on the continent.

Fastest growing countries (2007-2013)

  • Ethiopia (2700 Millionaires) – 108% 
  • Angola (6400 Millionaires) – 68% 
  • Tanzania (5600 Millionaires) – 51% 
  • Zambia(900 Millionaires)- 50% 
  • Ghana(2400 Millionaires)- 50% 
  • Nigeria(15700 Millionaires)- 44% 
  • Algeria(4100 Millionaires)- 41% 
  • Ivory Coast(2100 Millionaires)- 31% 
  • Morocco(4900 Millionaires)- 26% 
  • Kenya(8300 Millionaires)- 24% 

GROWING ECONOMY

Ethiopia’s Gross Domestic Product (GDP) stands at USD 107 bn (2019/2020) and it is among the fastest growing global economies. An average growth of 8.2% per annum has been achieved over the past five years (2015/16-2019/20).

POLITICAL STABILITY

Ethiopia is considered as one of the most stable countries in Africa. It is a diplomatic and political hub and hosts the headquarters of the African Union (AU) as well as United Nations Economic Commission for Africa (UNECA). Ethiopia is also a key proponent of peace on the continent and is regularly involved in conflict resolution in the region.

HUGE NATURAL RESOURCE

Ethiopia has vast land and huge natural resource base for developing new areas and improving existing ones. The country has suitable growing conditions for production of a range of inputes for ago processing plants.

POTENTIAL LABOR SUPPLY

Ethiopia has the second largest labor force in Africa (over 43 million workers) Minimum wage is among the lowest in Africa. The cost of labor is very affordable. Private sector monthly salaries for university graduates range from USD 150 to USD 200, while construction sector monthly wages range from USD 60 for daily laborers to USD 300 for a foreman.

For the details of Ethiopian Manufacturing Sector Overview of Ethiopian Manufacturing Sector