Identify Opportunities and Threats that exist in Ethiopia for international

investor
(Xác định các cơ hội và mối đe dọa tồn tại ở Ethiopia khi đầu tư)
a, Opportunities:

- Economic growth status: Economic growth had occurred relatively more in

the service and agricultural sectors than it had in the manufacturing sector. In a
recent report that assessed the market opportunities for 54 countries in
sub-Saharan Africa, Ethiopia had ranked 6.

- Human resources: Human resources Ethiopia was cost competitive with

China for light production. It also produced more than 10,000 university
graduates each year, creating a supply of skilled, affordable employees. Some
foreign employers, particularly from the United States and Europe, believed
that the gaps between expatriate and local employees in work culture,
management style, and communication were difficult to bridge. Many foreign
businesses viewed native Ethiopians who had worked elsewhere and returned
as the best-trained talent, but such hires were relatively scarce and costly.

- The infrastructure: Massive public investments in transportation, power, and

telecommunications infrastructure were key drivers of economic growth.

- Tax: Ethiopia provided income-tax exemptions, for up to five years, to

investors who established enterprises in manufacturing, agro-processing, and
the production of agricultural products. Enterprises in targeted areas of
underdevelopment could enjoy an additional tax deduction after the standard
exemption period had expired.

- Custom/Custom duties: Ethiopia granted customs exemptions for capital

goods, such as plants, machinery, equipment, spare parts, and construction
materials. The law protected private property and permitted investors to
convert capital and profit into foreign currency.
→ According to World Bank, Ethiopia ranked 129th of 189 countries in its
global ranking for ease of doing business, top 3 countries in sub-Saharan
Africa

b, Threats:
- Ethiopia's infrastructure is near the bottom of the World Bank's ranking of
countries->Ethiopia's transportation, electricity and telecommunications
systems are limited, making business activities difficult
- In 2013, Transparency International ranked Ethiopia 111th out of 177 countries
in terms of public sector corruption->Although Ethiopia has abundant human
resources, highly skilled workers lacking High levels of corruption in Ethiopia
affect the investment climate and increase the cost of doing business
- Ethiopia had long been closed to foreign influence, global brands did not enjoy
the same awareness among consumers
- Although Ethiopia has abundant human resources, there is a shortage of skilled
workers -> It takes time to recruit and is costly for investors
- Furthermore, its capacity for law enforcement was limited, and numerous
businesses used well-known names and trademarks without permission.
Counterfeit and pirated products were also common
- Intellectual property Enforcement of protection for intellectual property was
unreliable. Ethiopia had not signed all of the major international
intellectual-property treaties.
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