New Business Ideas in Ethiopia

Overview of Ethiopia’s Economy

Ethiopia’s economy grew by 7.1% in 2023, as a result of the growth in the services, industrial, and agricultural sectors. The services sector is currently the largest contributor to Ethiopia’s GDP, due to expansion in communication and transport services, the hotel and restaurant business, and retail and wholesale trading. The industrial sector, on the other hand, has grown due to investments in roads, railways, dams, housing, and industrial parks.

Challenges Facing Business in Ethiopia

Business owners in Ethiopia face various challenges, including:

• Limited access to finance and foreign exchange for small and medium-sized businesses
• Poor managerial skills
• Insufficient and inefficient use of technology by small businesses
• Shortage of skilled labor especially in specialized fields
• Corruption and other bureaucratic hurdles that result in inflated costs
• Political instability
• Lack of adequate machinery and spare parts

New Business Ideas in Ethiopia

Below is a list of the new business ideas that you can implement in Ethiopia.

1. Building Management

• Building management in Ethiopia involves conducting regular maintenance of buildings, prioritizing safety, and implementing sustainable practices like energy efficiency, waste management, and water conservation. Building managers also communicate with tenants and manage the finances of the building to allow smooth operations.
• Success in this business idea is guaranteed by the fact that the country is experiencing a rapid growth in urbanization and there is increasing demand for quality residential and commercial properties that are well managed.

2. Solar Panel Sales and Service

• This is a promising business area because Ethiopia has growing energy needs that can be met by the abundance of sunlight, especially in the rural areas. It involves the installation, maintenance, and provision of solar systems that are accessible and affordable.
• Getting into this business is lucrative, as the government is currently focusing on sustainable energy solutions to meet the increased demand for energy in the country.

3. Consultancy

• Consultancy services are in high demand in Ethiopia due to modernization, economic growth, and investment in key sectors. Small and medium business owners are currently looking for new knowledge and skills to help them excel in their business ventures, hence the need to hire consultants to provide mentorship and guidance.
• Some of the types of consulting services offered include agricultural consulting, business and investment consulting, energy consulting, IT consulting, and infrastructure consulting.

4. Laundry and Cleaning Services

• Another of the new business ideas in Ethiopia is laundry and cleaning services. Many urban households in Ethiopia are turning to providers of these services to make the running of their homes more efficient. Also, hotels and restaurants are outsourcing professional cleaning services for their businesses.
• To succeed in this business area, you simply need to come up with tailored packages targeting different clients and deliver affordable, eco-friendly cleaning options.

5. Tutoring Services

• Tutoring services are becoming increasingly popular with parents in urban areas who want their children’s academic performance to improve and are willing to invest in this.
• Some of the areas in which you can provide tutoring services are in academic subjects like mathematics, sciences, and English, as well as examination preparation.
• Online tutoring services are also a preferred option by families who are not able to manage the logistics of physical classes.

6. Mobile Photography

• The provision of mobile photography services is another great business idea in Ethiopia. High-quality photography services are usually required at events like parties, weddings, and corporate functions. You can also offer photo editing and mounting services in addition to creating digital copies of these photographs.
• To build a clientele in this field, you will need to build a strong online presence using a website or social media platforms where they showcase their work.

7. Renovation and Interior Design

• Urbanization in Ethiopia has led to the demand for modern living and working spaces. As such, the demand for renovation and interior design services has increased greatly.
• If you decide to get into this business, offer a range of services including consultation and project planning, as well as sourcing the materials, offering design services, and hiring specialized labor. You can also partner with suppliers, contractors, and other service providers to make your packages more professional and affordable.

8. Entertainment

• Creating unique entertainment spaces is another of the new business ideas in Ethiopia. You can set up play parks for children, coffee shops, recreational centers, adventure parks, and unique restaurants to meet the demand for leisure activities among urban residents.
• You can also set up cultural events, live concerts, and themed nights, depending on the tastes and desires of the clientele being targeted. Once the business has a loyal following, you can then approach corporates for sponsorships and partnerships.

9. Personal Fitness Services

• Making money as a personal fitness instructor involves making personalized fitness plans, offering nutrition advice, and helping clients make lifestyle changes. You can either offer one-on-one sessions or group classes.
• Personal fitness is becoming a growth area in Ethiopia, thanks to the increasing awareness of health, wellness, and lifestyle diseases. You can grow your client base through referrals, building a good online presence, or collaborating with local gyms or wellness centers.

10. Garbage Collection and Disposal

• Urbanization in Ethiopia has led to an increase in waste generation in the country. A business that specializes in efficient waste management solutions is therefore likely to penetrate the market quickly.
• To set up a garbage collection business, you must be focused on providing efficient waste management solutions that involve proper waste disposal and recycling of materials. You will also need to comply with all the government safety regulations that apply to waste management.
• If you are able to provide timely, efficient, and safe garbage collection and disposal services, your business will succeed!

Try out any of these new business ideas in Ethiopia, and you will be on the way to success!