The Africa Country Series: Federal Democratic Republic of Ethiopia

Pakistan’s exports appear to have hit a ceiling at US$24 – 25 Billion a year. Conventional wisdom suggests that given Pakistan’s size and resource endowment, this should ideally be around the US$50 – 60 Billion a year. While the government and its various think-tanks debate the policies required for Pakistan to achieve its true export potential, the Board of the Pakistan Business Council (PBC) has initiated a series of studies on the emerging markets of Africa. The first of this series covers trade & investment potential of the Federal Democratic Republic of Ethiopia (Ethiopia). The other African countries which will form part of this Africa Series are:

  • South Africa
  • Nigeria
  • Angola
  • Ghana
  • Mozambique

Located in the “Horn of Africa”, Ethiopia with a population of 96.0 Million has been experiencing double digit growth for the past ‘7’ years.
While Ethiopia’s bilateral trade with Pakistan was only US$90.0 Million in 2014, the corresponding figure for Ethiopia’s bilateral trade was US$1.1 billion with India, and nearly US$5.5 billion, with China. Out of Ethiopia’s total imports of US$14.7 Billion in 2014, the major items where Mineral Fuels (17.0%), Machinery (14.0%), Electric & Electronic Equipment (12.0%), Vehicles (8.0%), Articles of Iron & Steel (6.0%). The major contributors to Ethiopia’s exports of US$2.9 Billion in 2014 are Coffee (28.0%), Oilseeds (22.0%), Edible Vegetables (19.0%) and Live Trees & Plants (10.0%).

For Pakistani exporters the major opportunities exist in the Textile and Apparel sectors followed by the Food & Beverages, Leather, Electronics, Building Materials, Non-Metallic Mineral and Metallic sectors.