Ethiopia has the fifth fastest growing economy in the world, experiencing between 8%-11% annual growth for more than a decade. However, the economy still heavily relies on agriculture, which is only slightly surpassed by the services sector (41.4% against 43% respectively). Its exports are predominantly agricultural, with coffee accounting for 27% of the total exports.
Foreign direct investment (FDI) has been increasing exponentially since 2012 and reached US$2.168 billion in 2015. Though private land ownership is heavily restricted by the constitution, the government has recently privatized several state enterprises and improved business regulations, which have encouraged FDI.
Ethiopia is developing a new industrial parks program with Locus Economica assistance. The new industrial parks improve upon the country’s previous industrial zones by giving the Ethiopian Investment Commission power to simplify and streamline regulatory procedures within the parks.