Top 10 Investment Opportunities in Ethiopia in 2025

Ethiopia, the fastest growing economy in Africa, is a prime location for foreign investors. Some of the favorable conditions for investment include a young and productive population, vast untapped resources, and huge government investment in infrastructure. Below are the top ten investment opportunities in Ethiopia for the coming year.

10. Mining

• Ethiopia is teeming with resources, including undeveloped minerals and natural resources like gold and tantalum. With the increase in exploration and mining enterprises, exports are bound to double in the near future.

9. Heavy Construction

• The Ethiopian government is determined to make the delivery of infrastructural services a priority, and as such, the construction industry is experiencing a boom. Opportunities for investment exist in the provision of raw materials whose prices are currently prohibitive, in the provision of funds for construction, and provision of skilled labor.

8. Financial Services

• Provision of financial services is another of the investment opportunities in Ethiopia. Though foreign banks are yet to be allowed into the market, opportunities exist in the provision of financial infrastructure to the largely unbanked population, private equity and finances for expansion.

7. Textile Industry

• Ethiopia produces high-quality textiles that are exported to Europe and the United States. Currently, USA receives 40% of the Ethiopian textile and garment exports, the UK 10%, and other European countries a combined total of 50%. Investment opportunities in this industry lie in the development and expansion of this sector with the aim of increasing export revenue.

6. Telecom Services

• Though this sector is currently restricted with Ethio Telecom having sole monopoly rights, this industry still presents another of the investment opportunities in Ethiopia. Mobile phone penetration is currently between 10 and 15%, barely matching the pace at which the country is developing. With the infrastructure upgrades, however, the challenges facing mobile uptake will need to be addressed. At this point, foreign investors will most likely be invited to speed up the process.

5. Infrastructure

• Ethiopia is a landlocked state, relying heavily on the port of Djibouti for its import and exports. The Ethiopian government is currently working on a more efficient transport system to and from this port, with the aim of increasing the amount of exports. Investors are likely to benefit from the focus on road, air and rail transport, including the project to expand the current airports and to build new ones.

4. Agriculture

• Ethiopia is blessed with large tracts of arable land of which only 15 million hectares are cultivated. This country is currently ranked as the largest producer of wheat, the top coffee producer and the third largest producer of maize in Africa. Ethiopia’s agricultural sector is expected to grow in the years ahead, thanks to development projects involving the World Bank, USAID, and the Ethiopian government. Investment opportunities exist in the provision of advanced farming technologies that will lead to the production of high-value crops for export. Some of these crops include coffee, tea, and horticultural products.

3. Industrial Sector

• Ethiopia’s industrial sector is growing rapidly, thanks to the abundance of cheap energy, available labor, and raw materials. The government is currently focusing on increasing production of leather products, cement, sugar, and textiles with the aim of getting the county to middle-income status by 2025. Also, institutional and legal frameworks are being put in place as an incentive to foreign investors.

2. Energy

• Only 12% of Ethiopia’s population has access to electricity, despite the country’s energy being quite cheap. Currently, investment opportunities exist within the energy sector, where wind, solar, hydroelectric and geothermal power projects are in progress. The completion of the hydroelectric dam projects will greatly reduce the cost of electricity for the Ethiopian people, and give the country an opportunity to become an energy exporter.

1. Industrial Parks

• The Ethiopian government is in the process of constructing several industrial parks in the country. These parks, located along key economic corridors, are part of the government strategy to get the country to middle-income status. Already, two parks are operational, with seven more in the pipeline. The benefits of these parks include economies of scale, export promotion, among others.

There are several investment opportunities in Ethiopia available for the discerning foreign investor, opportunities that will benefit both the investors and the country as a whole.