The Government of Ethiopia (GOE) and its governmental institutions serve as the primary customer and market for American products on a significant scale. The Government of Ethiopia (GOE) allocates substantial resources towards the development of crucial social and economic infrastructure initiatives. These encompass a wide range of sectors, such as electricity generation, industrial parks and zones, housing construction, water supply and irrigation systems, road and railway networks, airports and dry ports, communication and internet infrastructure, and the establishment of fertilizer manufacturing facilities. There are potential avenues for American enterprises to participate in government procurement processes. American companies heavily rely on the assistance of influential lobbying efforts in order to get government contracts or rectify unjust or non-transparent tender choices resulting from deficiencies in the bidding process.
The General Office of Education (GOE) welcomes proposals for contract bids that include several financing possibilities. Typically, bidders that do not provide full financing are placed at a competitive disadvantage. Furthermore, there have been reports indicating issues pertaining to inequity and a dearth of transparency in the evaluation of bids. Hence, it is advisable for prospective contractors to consider engaging in collaboration with the Commercial Service Ethiopia and using the advocacy mechanism of the U.S. Commerce Department (refer to export.gov) prior to undertaking the contract evaluation process. In 2019, the U.S. Senate reinstated the U.S. Exim bank’s full financing power by approving the appointment of three individuals to its board of directors. The U.S. International Development Finance Corporation (DFC), which succeeded the Overseas Private Investment Corporation, has shown a heightened inclination towards financing projects in Ethiopia via U.S. equity investment, as seen by its expanding capacity.
Agriculture
Ethiopia has a diverse range of agricultural resources and encompasses many natural zones suitable for agricultural cultivation. Land may be leased for a maximum duration of 99 years from regional and local government bureaus, and acquisition of investment licenses can be facilitated by the Ethiopian Investment Commission. The Government of Ethiopia (GOE) has encountered significant obstacles in relation to land distribution, compensation, and relocation, which have posed considerable hurdles to the principles of equality and transparency. The variation in the recognition of land rights in Ethiopia is influenced by the significant level of regional autonomy present in the nation. Prior to engaging in expenditures related to land use and/or migration, it is essential for American enterprises to do thorough research and analysis.
Energy
The energy industry plays a crucial role in driving Ethiopia’s economic development and progress. It is anticipated that there will be a substantial rise in power production during the next years. Ethiopia aims to capitalize on these resources by augmenting the installed capacity of renewable energy sources. Ethiopia has considerable prospects for the development of renewable energy, particularly in the domain of hydropower. It is worth noting that renewable sources already fulfill more than 90% of Ethiopia’s energy requirements. The Government Office of Energy (GOE) provides opportunities for bidding on diverse renewable energy projects, where the key assessment criteria are centered on the project’s quality and the level of expertise shown.
Aviation
The aviation sector is now undergoing substantial development, characterized by an annual growth rate of 20%. This increase may be attributed to the increasing demand for both passenger and freight air transport. The expansion of the freight transport industry has been facilitated by the strengthening of its operational capabilities, enabling it to sustain growth even within the COVID-19 pandemic. Based on the expectation that operational capacity may recover between 80% and 100% of its pre-crisis level, as opposed to the 70% recovery seen in relation to the pre-pandemic capacity, it is projected that the industry would have a more favorable performance in the fiscal year 2022 compared to the preceding fiscal year 2021.