Information about the partnership
Partner country since 2019
Participants in the programme to date: 71 executives
Political partner for the Federal Ministry for Economic Affairs and Energy: Ministry of Trade and Regional Integration (MOTRI) of the People’s Democratic Republic of Ethiopia
Ethiopia was one of the fastest growing economies in the world in the last decade and recorded above-average growth rates. However, the business environment remains difficult due to political instability, high inflation and a restrictive monetary policy. The government’s measures to gradually open the Ethiopian economy, expand infrastructure and attract foreign investment are beginning to bear fruit. This has created numerous opportunities for German companies. Partnering in Business with Germany facilitates business relations between Ethiopian and German companies in Ethiopia. The targeted matching of entrepreneurs from both countries, along with B2B contacts, creates the basis for long-term cooperation.
Focus Areas and Cooperation Potentials of Ethiopia
With approximately 130 million inhabitants, Ethiopia is Africa’s second most populous country and has the third-largest economy in Sub-Saharan Africa, behind South Africa and Nigeria. German companies are particularly interested in the country’s large internal market and in business opportunities in agriculture, the food industry, construction and energy. Germany is one of the world’s largest purchasers of Ethiopian goods, importing in particular coffee and textiles.
Business in Ethiopia – Opportunities for German Companies
Ethiopia’s largest economic sector is agriculture, accounting for ca. 40% of GDP and ca. 65% of exports in the food sector. Around 75% of the country’s labour force is employed in agriculture. The most important export is Ethiopian coffee. Other exports include pulses, oilseeds and flowers. Ethiopia mainly imports German agricultural products in the form of pesticides and agricultural machinery.
The emerging industrial sector is developing particularly rapidly, especially the light industry (food, beverages, textiles and leather), as well as the construction and energy industries. In the food industry, there is demand for German machinery and equipment for beverage production, creating opportunities for German companies in the areas of packaging, refrigeration and storage. The construction sector is expanding, particularly in the capital, Addis Ababa. German companies can capitalise on business opportunities in developing and constructing new residential and business districts, and in expanding electricity transmission and supply. In the energy sector, plans to increase energy capacity by using more solar, wind and geothermal energy offer good business opportunities for German companies, especially those specialising in green technologies.
Although Ethiopia has already opened up the telecommunications and finance sectors to foreign investors, the same has yet to happen in trade. Currently, the Ethiopian government is opening up and liberalising the economy and facilitating trade for foreign companies – including sales offices.
German companies are increasingly interested in bilateral foreign trade with Ethiopia. They are attracted by investment projects that often require the kind of things that Germany prefers to supply: Technology and know-how.
Industry Focus and Participant Profiles
Partnering in Business with Germany is open to executives from all sectors. So far, executives from export-oriented companies doing trade in coffee, oilseeds and pulses have participated in the programme. In addition, the food industry, the textile industry, the construction sector, the chemical industry and the healthcare industry play a key role. Participants from these sectors have imported machinery and equipment.
News
Meeting of Partners in the Africa Business Network: A Focus on North Africa
The 20th Meeting of Partners in the Africa Business Network took place at the Federal Ministry for Economic Affairs and Climate Action on 19 March. The network is a Federal Government initiative to support German SMEs that wish to develop and expand their business in Africa. The Partnering in Business with Germany (PG) programme is one of the network partners that promote cooperation between Germany and Africa.
“Buna enteta” – Let’s Have a Coffee!
Coffee is Ethiopia’s national beverage. Sara Yirga also loves the brew made from roasted beans. Her company produces fair trade coffee and supports smallholder farmers. Since completing the Manager Training Programme, she has also been exporting her special beans abroad. The passionate entrepreneur is also involved in advanced training for coffee experts.
Coffee, Culture and a Skills Upgrade
The first 21 participants from new MP partner country Ethiopia arrived in Germany in November 2019. During the introductory workshop in Addis Ababa, the group had expressed great interest in expanding their intercultural skills and showed enthusiasm for modern technology. It also quickly became clear that the Ethiopian and German cultures are linked by one thing in particular: coffee
