According to the latest World Bank annual ratings, Ethiopia is ranked 159th among 190 economies in terms of ease of doing business
. While the rank has remained unchanged at 159 in both 2018 and 2019, the government of Ethiopia has been undertaking various reforms to improve the ease of doing business in the country
. These reforms aim to create a more favorable environment for businesses, particularly small and medium-sized enterprises (SMEs)
Growth Opportunities and Reforms
Ethiopia presents numerous growth opportunities as it seeks to establish itself as a major manufacturing hub within Africa
. The country boasts a large and increasingly educated labor pool, competitive wage rates, low energy costs, and improving business operating conditions
. These factors contribute to the attractiveness of Ethiopia as an investment destination. The government of Ethiopia has been implementing measures to ease doing business and modernize trade and investment services
. These measures include introducing cutting-edge technological solutions, digitizing working systems, and implementing short, medium, and long-term strategies. The goal is for Ethiopia to become one of the top 100 countries in terms of ease of doing business by 2021
.
Reforms for Small and Medium Businesses
The government’s reforms also aim to support the growth of small and medium-sized businesses in Ethiopia
. Small and medium businesses are springing up not only in Addis Ababa, the capital and financial city of Ethiopia, but also in other regions of the country
. The government has provided resources and information to help entrepreneurs navigate regulations and procedures when starting a business
Electronic Single Window System
As part of the government’s efforts to facilitate ease of doing business, Ethiopia has launched the Electronic Single Window (eSW) project
. The eSW system is a one-stop service system that provides traders with the required information and enables them to process all import and export documentation through a single electronic submission
. This system aims to reduce clearance time and create a paperless environment, ultimately streamlining the process of doing business in Ethiopia
Conclusion
Ethiopia is actively working to improve the ease of doing business in the country. The government’s reforms, including the introduction of technological solutions and the implementation of the eSW system, aim to create a more favorable environment for businesses, particularly small and medium-sized enterprises. These efforts, combined with Ethiopia’s growth opportunities and competitive advantages, make the country an attractive destination for investment and business expansion.
