Country Analysis
• Country Strategy
• Goals
• State led development model
• Economic : Public investments one-third of GDP ( infrastrucutre, power, telecom), Decrease export dependency
• Policies
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Govt presence in important sectors
Encouraging import substituition and FDI
Industies reserved for domestic – Media, retail, transportaton, financial sector, pharma
Custom exceptions on capital goods
Intellectual properly laws – focussed on protecting Ethiopian materials and copyrights but capacity of law enforcement was
poor
• Non Ethiopian businesses barred from wholesale trading and retailing, except locally produced goods
• MNCs must work with local partners
• Licensing opportunities, JV or subsidiary
• Country context
• Physical capital
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High logistics costs
Frequent power cuts
Frequent internet outages
Highly fragmented retail network – difficult to manage without lcoal partners
• Human capital
• 10,000 college graduates
• Local work culture
• Rule systems
• High level of corruption
Attractiveness of Ethiopia
• High increase in GDP
• Ethiopian government has adopted its policies so as to decrease its
dependency on exports, mobilize local production and increase local
consumption. This signals that they are looking for foreign invetments, but
at the country's terms so that the major benefits remain within the country
• Opportunities, especially in the retail market, are high. Due to limited
competition in the country well priced quality products will be in high
demand.
• Due to the high number of college graduates per year, Ethiopia offers well
qualified human capital for new entrants to leverage and partner with