Ethiopia Country Profile

Snapshot of the Ethiopia Country Profile


Since the early 2000s, the federal government has continuously aimed at implementing an economic reform programme designed to stabilise the financial position of the country, promote private sector participation in the economy and attract foreign investment. Nevertheless, the private sector remains relatively small, characterised by small companies, low labour productivity and a high degree of corruption. Although official and unofficial barriers, such as corruption, still deter foreign investment and certain sectors remain off-limits to foreign participation (e.g. agriculture), the country has taken several steps to liberalise its foreign investment laws and streamline the registration process to obtain business licences.

Positive developments in relation to corruption and investments:

  • The legislative framework against corruption in Ethiopia is comprehensive and strong.
  • The Ethiopian government reviews investment proposals in a non-discriminatory manner and foreign investors do not regard the screening process as an impediment to investment or a limit to competition.
  • The government-established the Ethiopian Investment Commission (EIC), which provides investment information and a 'one-stop shop' that reportedly cuts the cost of obtaining investment and business licences.

Risk of corruption:

  • Practices of corruption are increasingly taking the form of private-to-private corruption whereby private companies yield procurement contracts to other private companies in return for bribes, etc.
  • Sub-city administration officials working with land administration have developed an attitude that it is their right to take bribes. Corrupt practices involve facilitation payments as well as bribes in order to be allowed to keep land that is leased.
  • Investors in Ethiopia should be aware that the tax system is generally considered to lack transparency and to contain many corrupt officials.
  • The customs authority lacks qualified staff, and customs laws are not exercised uniformly and without discrimination, which allows ample possibilities for corruption in interactions with customs officials.


We are currently conducting a survey, which takes just 5 minutes to complete, to improve the quality of the Business Anti-Corruption Portal. We would therefore value your feedback and appreciate if you took a moment to respond to some questions. Click here to take the survey.