This summary was prepared by Whitehouse & Associates for the African Resource Network.
Ethiopia has suffered for decades from political mismanagement of the economy and development constrained by heavy reliance on agriculture. In addition a series of debilitating civil and external wars has retarded the development of the economy for some time. Whist investor confidence remains low, donor-driven project work in several fields is providing huge opportunities for suppliers of goods and services in Ethiopia. The project work is taking place in areas largely unaffected by the border war, and breweries, hydro-projects, infrastructural developments and other industrial projects are spurring growth. Interest in mining is also growing. Although South Africa’s current level of trade with Ethiopia is relatively low at R72 million, the potential is there and traders working in this area report huge opportunities for business.
