Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable.
This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%.
190 countries ranked
This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear.
Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear.
Renewable energy-powered lanterns: 0%
No mention of solar panels in the ERCA Tariff Book.
As per the ERCA Tariff book of 2017
Only if used for renewable energy, as per the ERCA Tariff Book of 2017.
As per VAT proclamation No. 285/2002
As per VAT proclamation No. 285/2003
As per VAT proclamation No. 285/2004
The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise.
The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not.
167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.
The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.
The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.
Overview
Ethiopia
Overview
The economy of Ethiopia has seen significant development over the last five years, achieving double digit real growth in 2015 and 2017, and maintaining 9% growth in 2019. The country's long term investment rating is B and B1, as determined by Standard & Poor’s (S&P) and Moody’s respectively. While this is below investment-grade, it remains on par with many similar emerging economies on the continent. Per capita gross domestic product (GDP) is growing consistently at an annual average rate of about 8%.
Inflation rates are high and rising rapidly from 10% in 2017 to nearly 16% in 2019. High inflation has, in part, driven overvaluation of the Ethiopian Birr (Br) leading to a devaluation of the currency in 2017 from Br 27 to Br 32 against the euro. Beyond the devaluation, the value of the Birr has been relatively stable while steadily depreciating, losing about 10 Birr or 30% of its value against both the US dollar and the euro between 2015 and 2018.
Inflows of foreign direct investment (FDI) into Ethiopia contracted sharply in 2018 to 3.98% of GDP following a peak of more than €4.1 billion in 2016, or 5.58% of GDP in the same year. Similarly, clean energy investment volumes decreased by €58 million in 2018 to just below €170 million with 59% of the investment coming from foreign sources. By comparison, 98% of the €227 million invested in clean energy in 2017 was the result of foreign investment.
To help address challenges to attracting and retaining foreign investment, the Ethiopian Investment Commission (EIC) was created as an autonomous government institution dedicated to promoting investment in the country. Their mandate is to develop an enabling investment environment to increase foreign investment through a series of services and support initiatives including streamlining administrative processes, providing relevant guidance, formal permitting such as registration and licencing, bilateral negotiations and policy advisory.
Ethiopia provides no sales tax incentive for renewable energy products, charging the standard VAT rate of 15% on solar panels, wind turbines and batteries for storage. While there is some uncertainty as to exactly what solar panel products are exempt from import duty, renewable energy-powered lanterns and wind turbines incur no such duty. Similarly, batteries are exempt from import duty only if they are used for storing renewable energy.
Inflation rates are high and rising rapidly from 10% in 2017 to nearly 16% in 2019. High inflation has, in part, driven overvaluation of the Ethiopian Birr (Br) leading to a devaluation of the currency in 2017 from Br 27 to Br 32 against the euro. Beyond the devaluation, the value of the Birr has been relatively stable while steadily depreciating, losing about 10 Birr or 30% of its value against both the US dollar and the euro between 2015 and 2018.
Inflows of foreign direct investment (FDI) into Ethiopia contracted sharply in 2018 to 3.98% of GDP following a peak of more than €4.1 billion in 2016, or 5.58% of GDP in the same year. Similarly, clean energy investment volumes decreased by €58 million in 2018 to just below €170 million with 59% of the investment coming from foreign sources. By comparison, 98% of the €227 million invested in clean energy in 2017 was the result of foreign investment.
To help address challenges to attracting and retaining foreign investment, the Ethiopian Investment Commission (EIC) was created as an autonomous government institution dedicated to promoting investment in the country. Their mandate is to develop an enabling investment environment to increase foreign investment through a series of services and support initiatives including streamlining administrative processes, providing relevant guidance, formal permitting such as registration and licencing, bilateral negotiations and policy advisory.
Ethiopia provides no sales tax incentive for renewable energy products, charging the standard VAT rate of 15% on solar panels, wind turbines and batteries for storage. While there is some uncertainty as to exactly what solar panel products are exempt from import duty, renewable energy-powered lanterns and wind turbines incur no such duty. Similarly, batteries are exempt from import duty only if they are used for storing renewable energy.
Regional affiliation
AU, COMESA
Official language(s)
Amharic
National currency
Ethiopian birr
Presence of port
No
Port of Djibouti/Doraleh is used. 754 km between port and Addis Ababa
Port of Djibouti/Doraleh is used. 754 km between port and Addis Ababa
Next planned election and cycle length
Presidential elections:
2024 (6-year cycle)
Parliamentary elections:
2020 (5-year cycle)
2024 (6-year cycle)
Parliamentary elections:
2020 (5-year cycle)
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet
Import Duties and Value-Added Tax
Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)