Business Dynamics: Ethiopia

January 2022

Ethiopia ranks among the bottom third countries globally in the Economic Freedom Ranking, struggling with an unfavourable business environment, soaring skills shortages and underdeveloped infrastructure. However, as one of the largest African economies, Ethiopia remains an attractive market, with reforms taking place across sectors. To boost the country’s trade capacity, the government is investing in road development, while telecommunications liberalisation is set to provide wider internet acce

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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:

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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


Ethiopia continues to struggle with poor property rights enforcement, but efforts have been made to liberalise the business environment
Civil war leads to a highly uncertain investment outlook, but the new investment law offers opportunities
Ethiopia continues to rely on agriculture, resulting in high susceptibility to climate change impacts
Movement of goods to be supported by investment in the country’s key transportation route
Liberalisation of the telecommunications sector is set to bring better internet accessibility for Ethiopian households
Chart 1 Operational and Legal Environment Key Indicators
Chart 2 Index of Economic Freedom Ranking by Pillar in Ethiopia and Regional Comparison 2021
Chart 3 Index of Economic Freedom Ranking 2016-2021
Chart 4 Index of Economic Freedom: Judicial Effectiveness Pillar Rank in Ethiopia and Regional Comparison 2017-2021
Chart 5 Index of Economic Freedom: Government Integrity Pillar Rank in Ethiopia and Regional Comparison 2016-2021
Chart 6 Corruption Perceptions Ranking: Ethiopia and Regional Comparison 2015-2020
Chart 7 Key Financial and Investment Indicators
Chart 8 Index of Economic Freedom: Property Rights Pillar Rank in Ethiopia and Regional Comparison 2016-2021
Chart 9 Key Skills and Labour Indicators
Chart 10 Population Aged 15+ with Higher Education 2016-2021
Chart 11 Education Indicators 2021
Chart 12 Number of University Graduates by Programme 2021
Chart 13 Employment by Age 2021
Chart 14 Employment by Gender 2021
Chart 15 Youth Unemployment Rate 2016-2021
Chart 16 Labour Structure Change 2016-2021
Chart 17 Labour Structure Comparison 2021
Chart 18 Self Employed as % of Total Employed Population 2021
Chart 19 Index of Economic Freedom: Labour Pillar Rank in Ethiopia and Regional Comparison 2016-2021
Chart 20 Wage per Hour in Manufacturing Sector 2016-2021
Chart 21 Labour Market Regulations in Ethiopia and Regional Comparison 2021
Chart 22 Key Infrastructure Indicators
Chart 23 Transportation Mode Indicators in Ethiopia and Regional Comparison
Chart 24 Road Infrastructure 2021
Chart 25 Innovation and Digitalisation Key Indicators
Chart 26 Network Readiness Ranking by Pillar in Ethiopia and Regional Comparison 2021
Chart 27 Network Readiness Ranking for Ethiopia and Regional Comparison 2019-2021
Chart 28 Network Readiness Ranking: Technology Pillar for Ethiopia and Regional Comparison 2019-2021
Chart 29 Intellectual Property: Ethiopia Compared to Selected Regional Peers 2021
The 2021 Index of Economic Freedom
The Logistics Performance Index (LPI) 2021
The Network Readiness Index (NRI) 2021

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