Ethiopia Country Profile

Licences, Infrastructure and Public Utilities

Individual Corruption

According to the Transparency Ethiopia Corruption Diagnostic Baseline Survey 2009, citizens living in the Ethiopian capital, Addis Ababa, cite drivers' licence procedures as an area where bribes are often needed, with the average bribe being ETB 500.

Business Corruption

According to the US Department of State 2008, the regulatory system is considered to be generally non-discriminatory, but not always transparent. Obtaining a business licence is difficult, but closing a business is relatively easy. 

Frequency

The World Bank & IFC: Doing Business 2010:
- Starting a company requires the entrepreneur to go through 5 procedures, taking 9 days at a cost of almost 19% of income per capita.

- It takes 12 procedures, 128 days at 561.3% of the income per capita to obtain the necessary licences and permits, notifications and inspections and public utility connections to build a warehouse.

- It takes an average of 3 years to close a business at a cost of 15% of the estate.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give government regulations in Ethiopia a score of 3.8 on a 7-point scale (1 being 'burdensome' and 7 'not burdensome').

The World Bank & IFC: Enterprise Surveys 2006:
- 3% of the companies surveyed expect to give gifts to get an operating licence.

- 4% of the companies surveyed expect to give gifts to get a construction permit.

- 7% of the companies surveyed expect to give gifts to get an electrical connection, 5% expect to give gifts to get a water connection, and 4% expect to give gifts to get a phone connection.