Ethiopia

[pic 3][pic 4][pic 5]

[pic 6][pic 7][pic 8]

Table of Content

Executive Summary        

Methodology        

Key Economic Indicators        

CareCo        

ShoeCo        

MedCo        

Legal Barriers to Entry in Ethiopia        

Conclusions        

Executive Summary

The report considers the most relevant socio-economic and political indicators that define the Ethiopian economy and their relevance to three international firms that are deciding on entering this market. An analysis of legal system of Ethiopia is also performed to identify market barriers for these companies.[pic 9]

Methodology

The analysis for each of these companies has been carried out in following steps:

[pic 10]

Key Economic Indicators

• GDP Growth

The estimated GDP growth of Ethiopia as of 2014 is 10.3 percent.^[1] It is world’s fourth fastest growing economy. This indicates that purchasing power of people of Ethiopia is increasing. The estimated GDP per capita of Ethiopia was $1600 in 2014.^[2]

• Labor Force and Unemployment

Overall, 2–2.5 million young people are entering the labor market every year.^[3] Moreover, the employment rate is 7.3 percent.^[4] Thus, availability of unskilled labor is in abundance.

• Health Expenditure

Ethiopia’s health expenditure was 5.1% of its GDP in 2013.^[5] Such low levels of health expenses reveals poor state of healthcare system in country. Ethiopia was ranked 166 out of 191 countries for its healthcare expenditure.^[6]

• Infrastructure

Ethiopia is a land locked country and is dependent on ports of Djibouti and Somalia for surface transfers.^[7] Ethiopia has 57 airports and it ranks 83 among all other countries in the world.^[8]

• Hospital Bed Density

As of 2011, Ethiopia has 6.3 beds per thousand population.^[9] It ranks 193 with a life expectancy of 61.48 years.^[10] The degree of risk of major infectious diseases is very high. As of 2014, 730 300 people are living with HIV/AIDS.^[11] The healthcare industry has a scope of major improvements in Ethiopia.