Are you in search of a list of the Most Profitable Business in Ethiopia that you can venture into either as a side hustle or a main business? Maybe you have always been searching for the right business that does not only have a good return on investment(ROI) but has a relatively low risk. In this article, I will be sharing with you a list of business ideas that you can start in Ethiopia with a relatively decent capital.
You will not just have a head’s knowledge about these ideas, you will also discover why they are profitable, their market size, customer base, profit margin, and how scalable it is.
But, before then, there are so many reasons why you need to consider building a business in Ethiopia today.
Why You Should Start A Business In Ethiopia Today
In terms of economic opportunities, Ethiopia has proven to be one of the most promising countries in Africa where you can start a business with a decent capital and succeed.
Although you might sometimes be met with fierce resistance that can break your resolve, building a business in Ethiopia can prove to be a lifelong investment following the market size of the Ethiopian market.
10 Most Profitable Businesses in Ethiopia
Look out for the Most Profitable Business in Ethiopia and discover ten proven business ideas you could start and make a decent profit from:
#1. Agriculture
Ethiopian soil has been known to be conducive to the growth of so many food and cash crops. This has led to an increase in global demand for both organic and sustainable food products. If you reside in Ethiopia or you have studied the nature of its atmospheric condition, then this would not come as a surprise to you.
Agriculture is one of the major sources of cash flow for the Ethiopian government. It reflects a large size of demand in the Agricultural sector. Building a business around this, you will be met with a large market sizer to buy your product. There is high demand for Agricultural products across Europe, The Middle East, and North America. Agricultural products are still in high demand across various European countries and can be sold for a very good profit. As you grow, you can choose to dive into other Agricultural products without losing your initial market.
#2.Textile and Garment Making.
The Textile and Garment industry made it to our list of the Most Profitable Businesses in Ethiopia because it is indeed one of the most lucrative businesses in Ethiopia right now. Due to the African Growth and Opportunity Act in Ethiopia, it is relatively easy to break into the international market. This means a lot of money, don’t you think?
Also, in Ethiopia, you can enjoy a low cost of labor. This will reduce the cost of starting this business or scaling in the future. The Textile industry is growing rapidly and is expected to hit a staggering $30 million by 2030. The Textile industry can offer its services to both the international and domestic market. This offers a sizable customer base don’t you think? Following a low cost of labor, venturing into this business can offer a very good profit. Following the large demand from the international market, more industries can be built and manpower deployed to upscale.
#3.Solar And Wind Renewable Energy.
Does this come as a surprise to you? I believe that the only surprise that you would have is that this was not mentioned earlier. Due to the need for power across Ethiopia and Africa in general, this is an industry that promises a lot of potential. As stated earlier, there is a great need for power across Ethiopia and a solution in this line will prove to be a fruitful investment. It is predicted to grow by 30% every year with a whopping $2 billion worth of value soon.
The Ethiopian government and other major organizations looking to reduce the cost of power can serve as a good market for this industry. There is a huge chance of making a high return on investment following the nature of the problem this industry solves. There is a very good chance of scaling because there is an expectation that demand for these products will increase greatly in the coming years.
#4. Information and Communication Technology.
This is not just in Ethiopia. There is a global rise in the need for solutions related to Information and Communication Technology. There is a high demand for Internet services and other Internet-related solutions. This sector is expected to grow rapidly and amass a $2.5 billion market size by next year. Government agencies and Small or large business owners make up a large portion of their customers. There is a high tendency to make huge profits if you are well-positioned in this industry. This industry is very scalable as you can upsell other related services or venture into a new market.
#5. Real Estate Development.
Ethiopia has seen a rapid increase in population. If you are a skilled realtor, you know that this presents a lot of opportunities in the Real Estate market. With a 15% annual growth rate, the Real Estate market is expected to keep growing and eventually hit a market worth $20 billion next year. Anyone looking for a good land where they can build their houses or offices. There is a high chance of getting a good return on investment, especially if you choose to sell luxury properties. As the demand for buildings increases, it offers you an opportunity to scale your business effortlessly.
#6. Tourism and Hospitality
Except you do not have a good knowledge of the rich culture and the loving nature of the people of Ethiopia, you would not doubt that this is a large industry with a lot of revenue. This sector alone contributes about 10% to the Revenue generated by the Ethiopian government. This is lucrative and profitable because it targets the International tourists and local travelers. Though not as high as other industries listed above, it has a good profit margin. There is a high chance to scale as the country is developing rapidly.
#7. Health and Wellness
Generally, The health sector is a very profitable market due to its market size and the nature of the problem it seeks to solve. The current Ethiopian health sector has a market value of about $3 billion. This is expected to grow continuously in the coming years. There is a wide range of customer base as both high-income earners and low-income earners need medical attention. The Health sector has a relatively high high-profit level following the nature of its solution. With an ever-increasing population, there will always be a need for medical services that can prove to be a Goldmine for Health practitioners.
#8. Transportation.
With an improved infrastructure like good roads, don’t you think there will be an increase in the need for transportation? Exactly. With a current market size of about $4 billion, the Transport industry is an industry that has been marked by rapid growth. This industry has a wide range of customer base. However, People in the Agriculture and Construction sector are a very profitable part of its customer base. This industry offers a very good return on investment following the population of Ethiopia. This Sector can easily be scaled because there is a constant increase in demand.
9. Construction and Building Materials
With the level of Urbanization, there is a corresponding increase in the demand for more houses, roads, and offices. This also means an increase in demand for construction and building materials. Predicted to hit a shocking $15 billion valuation by next year this industry has a very large market size. Government, Business Owners, and Individuals interested in constructing a building. Building and construction materials are relatively expensive. With a regular demand, it has a very good profit margin. The construction industry is easily scalable as you can choose to venture into different sectors.
#10. Education
Can you remember the money you spent as a student? Well, that is just another pointer at the financial treasure hidden in the education industry. With a large youth population, there is a high demand for education across Ethiopia. The private education market is valued at $2 billion. Imagine what the market value would be when you include the government sector. Parents of young children, young professionals looking to upgrade, and corporate organizations. The education sector, especially the private sector has a very high margin value. However, rewards are expected after the first five years. As you grow, you can open more schools in more rural areas.
Conclusion
This list doesn’t exhaust the comprehensive list of the most profitable businesses in Ethiopia. Believe me, list can. Ethiopia is a titan of lucrative business and opportunities in any sector. Rather, I picked these ideas because they can be easily implemented with good capital and adequate knowledge of the market. However, before fully venturing into any of the businesses listed above, you must seek the counsel of professionals in this industry. USS
