Impact investing in Ethiopia

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Written By girumas

Girum is a tech blogger


Impact investments are ones that are undertaken with the goal of producing both a good financial return and a verifiable social and environmental benefit. Impact investments may be undertaken in both developing and mature economies.

The world’s most urgent problems are being addressed by the expanding impact investing industry, which is funding initiatives in fields including microfinance, agriculture, renewable energy, conservation, housing, healthcare, and education.

Overview of Ethiopia’s economic and social development

Ethiopia has a population of more than 100 million, making it the second most populous country in Africa. The majority of Ethiopia’s population still lives in rural areas, although Impact Investing Ethiopia (I2E) is currently funding ventures in the furniture, fiberglass, and agriculture industries. There has been significant urbanization recently. This creates a sizable market across the nation’s various industries. There is a significant opportunity for investors who are prepared to take a risk to fill the market gap in a variety of industries, including education, real estate, and agriculture.

Investing in Ethiopia is difficult, especially if your main goal is to make money. Like every developing nation, Ethiopia’s investment climate is fraught with difficulties. Lack of peace and stability, corruption, a lack of skilled labor, a lack of foreign currency, the availability of land, and other factors are a few of them.

Impact Investing in Ethiopia

While traditional investing places a strong emphasis on the financial side of the business, impact investing takes into account the whole social and environmental impact of the investment.

Certain firms in Ethiopia are permitted to be held entirely by foreign corporations, while the majority are permitted to be owned by Ethiopians. But if a company is jointly owned by Ethiopians, practically all enterprises are permitted.

This offers investors the chance to collaborate with local enterprises. Working with local enterprises has several advantages for both domestic and international businesses. The entry barrier for international enterprises is reduced because the locals are familiar with the customs and operational procedures in that region.

Local businesses can get information and funding to expand quickly and reach a sizable population with their goods and services. It’s a win-win situation.

Benefits of Impact Investing in Ethiopia

Impact investing in Ethiopia can help the economy grow, create more job opportunities, and make it easier for people to get money.

Impact Investing Ethiopia (I2E) is now collaborating with businesses in the furniture, fiber glass, landscaping, and agricultural sectors. A plan exists to invest in the health and education sectors.

Due to the growing population and high demand in cities, we urge investors to focus on real estate, farming, health care, and education. If you are interested in investing in these areas in Ethiopia, you can reach us by phone at +251921333813 or by email at

Author: girumas

Girum is a tech blogger

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