Country Profile 

‣► Location: Horn of Africa, bordered by Sudan, Somalia, Djibouti, Eritrea, Kenya and South Sudan

‣► Capital: Addis Ababa (Political, economic, & diplomatic capital of Africa)

‣► Area: 1.1 Million Sq km with diverse ecosystems such as highlands to lowlands, rich in natural resources & tourist attractions

‣► Access to markets across Africa, Asia, and the Middle East

‣► Population: 132 Million (Africa's 2nd most populous)  

‣► Center for regional & international trade, strong air connectivity, and expanding infrastructure

‣► Diverse economic sectors including tourism, agriculture and manufacturing

‣► Currency: Birr

Key Investment Opportunities

Ethiopia presents a wealth of investment opportunities across various tourism subsectors. In the hospitality and accommodation sector, investors can explore opportunities in luxury hotels, eco-friendly lodges, boutique hotels, and budget accommodations. These opportunities are particularly available in major cities such as Addis Ababa, Hawassa, Bahir Dar, Jimma, and Gondar. The MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism sector also offers significant potential, with opportunities in convention centers, event planning, business hotels, and hybrid event technologies.

Moreover, Ethiopia's growing ICT infrastructure, software development, and digital payment systems create a fertile ground for investments in technology and digital solutions.  Partnership initiatives, particularly through Public-Private Partnership (PPP) models, further highlight the potential for ecotourism, cultural tourism, and adventure tourism, supported by the country's unique natural and cultural assets.

The country also offers specialized investment opportunities in tour operations, cultural tourism, and nature conservancies. Tour operators can capitalize on adventure tourism, geotourism and ecotourism, while cultural tourism investments can focus on heritage sites, festivals, and community-based tourism.

Nature conservancies provide opportunities for forest restoration, ecotourism, and wildlife conservation, with projects like Gorgora and Wonchi showcasing significant potential.  Furthermore, Ethiopia's training and skill development sector is ripe for investment, particularly in vocational training, technical education, and youth workforce development.

The marketing and promotion sector offers opportunities in digital marketing, advertising, and event management. This is supported by the country’s increasing 5G internet penetration and mobile usage. Overall, Ethiopia’s diverse investment landscape, along with government support, creates a conducive environment for investors. Investors can explore and capitalize on the country’s potential across multiple sectors.

Investment Incentives

In Ethiopia, key investment incentives include income tax exemptions for new businesses depending on the sector and location, duty-free importation of capital goods and construction materials, tax deductions for investments in underdeveloped areas, and the ability to import vehicles duty-free for development projects.  

‣► Duty-free vehicles for tour operators (minibus, midi bus and Autobus), star-designated accommodations (minibus for shuttle, coaster, and staff service) for operation and pickup for new construction or expansion and higher training and educational institutions (bus and midi-bus).  

‣► Duty-free construction and operational materials for star-designated accommodations.

‣► A five-year tax exemption for investment in new, atypical, and selected tourism areas in hotels, lodges, and resorts with a rank of star.   

‣► Expanding or upgrading existing investment is entitled to get tax exemption with respect to the income generated by the expansion or upgrading.  

‣► 30% income tax deduction for investors who invest in an area far from the main towns or areas with poor infrastructure for three consecutive years after the expiry of the tax holiday.

Contact Information

Ministry of Tourism

Tel: +251 118619618  

Email: info@mot.gov.et

Website: https://visitethiopia.travel/

Address: Bole Africa Avenue, Behind DH Geda Building, Addis Ababa, Ethiopia

  

Ethiopian Investment Commission

Tel: +251 11 551 0033

Email: info@eic.gov.et

Website: https://investethiopia.gov.et/

Address: Addis Ababa, Ethiopia

Africa Avenue (in front of Dembel City Center, next to the OLA gas station)