Index of "1996 Country Commercial Guides"
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U.S. Department of State 
Ethiopia Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
 
                           Country Commercial Guide 
 
                                   Ethiopia 
 
                              Fiscal Year 1996 
 
 
This Country Commercial Guide (CCG) presents a comprehensive look at 
Ethiopia's commercial environment through economic, political and market 
analyses.   
 
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.   
 
--------------------- 
I.  EXECUTIVE SUMMARY 
--------------------- 
 
ETHIOPIA'S HISTORY AS AN INDEPENDENT POLITY IS MUCH LONGER THAN THAT OF 
ANY OTHER STATE IN SUB-SAHARAN AFRICA.  WITH A POPULATION OF ABOUT 55 
MILLION GROWING AT 3.0 PERCENT PER YEAR, ETHIOPIA IS THE SECOND MOST 
POPULOUS COUNTRY IN SUB-SAHARAN AFRICA.  ETHIOPIA'S AREA, 1.3 MILLION 
SQ. KM., MAKES IT THE NINTH LARGEST COUNTRY IN AFRICA.  THE RURAL TO 
URBAN POPULATION RATIO IS QUITE HIGH AT 4:1.  WITH A PER CAPITA INCOME 
OF USD 110 IN 1994, ETHIOPIA RANKS AS ONE OF THE POOREST COUNTRIES IN 
THE WORLD.  DESPITE ITS POVERTY, ETHIOPIA IS THE FIFTH LARGEST U.S. 
EXPORT MARKET IN SUB-SAHARA AFRICA, AFTER SOUTH AFRICA, NIGERIA, ANGOLA, 
AND GHANA.  THE AGRICULTURAL SECTOR, CONSISTING MOSTLY OF PEASANT FARMS, 
ACCOUNTS FOR ROUGHLY 40 PERCENT OF THE NATION'S GDP, 85 PERCENT OF ITS 
EXPORTS, AND 85 PERCENT OF TOTAL ETHIOPIAN EMPLOYMENT.     
 
AFTER A LENGTHY CIVIL WAR, THE ETHIOPIAN PEOPLES' REVOLUTIONARY 
DEMOCRATIC FRONT (EPRDF) TOOK POWER IN 1991, OUSTING THE BRUTAL, MARXIST 
MENGISTU REGIME.  THE TRANSITIONAL GOVERNMENT OF ETHIOPIA (TGE), FOUNDED 
BY THE EPRDF, HAS CARRIED OUT A DEMOCRATIZATION PROGRAM WHICH -- DESPITE 
IMPERFECTIONS -- HAS PROVIDED ETHIOPIAN CITIZENS WITH GREATER POLITICAL 
FREEDOMS THAN AT ANY PREVIOUS TIME IN THE NATION'S HISTORY. 
 
ETHIOPIA'S MAIN IMPORTS INCLUDE PETROLEUM PRODUCTS, CIVIL AIRCRAFT, 
VEHICLES, SPARE PARTS, CONSTRUCTION EQUIPMENT, MEDICAL AND 
PHARMACEUTICAL PRODUCTS, AGRICULTURAL AND INDUSTRIAL CHEMICALS, 
AGRICULTURAL MACHINERY, FERTILIZERS, IRRIGATION EQUIPMENT, AND DURABLE 
AND NONDURABLE CONSUMER GOODS.  ITS MAIN EXPORTS ARE COFFEE, HIDES AND 
SKINS, PULSES, KHAT, GOLD, LIVE ANIMALS, PROCESSED MEAT, OILSEED CAKE, 
AND FRUITS AND VEGETABLES.  AMONG THESE CATEGORIES, COFFEE IS BY FAR THE 
MOST IMPORTANT EXPORT GOOD, CONSTITUTING AN AVERAGE OF 55 PERCENT OF 
TOTAL EXPORTS DURING THE LAST TWELVE YEARS, AND PERHAPS AS HIGH AS 65 
PERCENT IN 1994-95.   
 
THE PRESENT EXCHANGE RATE OF THE BIRR, THE ETHIOPIAN CURRENCY, IS 6.32 
TO THE U.S. DOLLAR.  THE BIRR WAS ARTIFICIALLY PEGGED AT THE OFFICIAL 
RATE OF 2.07 PER DOLLAR FROM FEBRUARY 1973 TO OCTOBER 1992.  TO BRING 
THE SIGNIFICANTLY OVERVALUED BIRR MORE IN LINE WITH ITS UNDERLYING 
WORTH, THE TGE DEVALUED THE EXCHANGE RATE BY 147.8 PERCENT, TO BIRR 5.0 
PER U.S. DOLLAR EFFECTIVE OCTOBER 1, 1992.  AS A RESULT OF THIS 
ADJUSTMENT, THE PRICES OF IMPORTED AND EXPORTED GOODS NOW REFLECT MORE 
CLOSELY THE INCURRED COSTS AND THE WORLD PRICE STRUCTURE, THEREBY 
IMPROVING THE PRICE SIGNALS TO ETHIOPIAN PRODUCERS, TRADERS, AND 
CONSUMERS.   
 
THE MAJOR MANUFACTURING SUBSECTORS IN ETHIOPIA ARE FOOD, BEVERAGES, 
TEXTILES, CLOTHING, AND LEATHER, ALL OF WHICH ARE RELATED TO THE 
AGRICULTURAL SECTOR.  CHEMICALS AND METALS ARE ALSO IMPORTANT, AS ARE 
NONMETALLIC MINERALS.  THE SHARE OF MANUFACTURING IN GDP HAS DECLINED 
STEADILY, FROM 8.2 PERCENT IN 1987/88 TO 4.5 PERCENT IN 1993/94.  THE 
MOST IMPORTANT MANUFACTURING INVESTMENTS UNDER DESIGN, CONSTRUCTION, OR 
REFURBISHMENT IN 1995 ARE A SUGAR FACTORY AT FINCHAA, A TEXTILE FACTORY 
AT ARBA MINCH, AND A CERAMIC FACTORY AT AWASSA.  THE BULK OF THESE ARE 
FINANCED WITH THE SUPPORT OF BILATERAL DONORS AND MULTILATERAL LENDING 
BANKS.   
 
TO ACHIEVE LONG-TERM ECONOMIC GROWTH AND SOCIAL DEVELOPMENT GOALS, THE 
TRANSITIONAL GOVERNMENT OF ETHIOPIA FOCUSES ON AGRICULTURAL DEVELOPMENT 
AS THE CATALYST TO EXPORT-LED ECONOMIC GROWTH.  THE NATION'S STRATEGY 
ALSO INCLUDES THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY, CONTROL OF 
POPULATION GROWTH, AND DEVELOPMENT OF THE ECONOMIC AND SOCIAL 
INFRASTRUCTURE OF THE COUNTRY.  IN PARALLEL, THE TGE IS IMPLEMENTING A 
COMPREHENSIVE DECENTRALIZATION PLAN THROUGH THE REGIONALIZATION OF THE 
COUNTRY, TO ENHANCE POPULAR PARTICIPATION IN ECONOMIC ACTIVITIES AND 
DECISION MAKING PROCESSES BY ENSURING CONTROL OVER RESOURCES BY REGIONAL 
AUTHORITIES.  THE GOVERNMENT STRATEGY, THEREFORE, FOCUSES ON THE 
AGRICULTURAL SECTOR AND THE EXPANSION OF EXPORTS, AND RELIES ON AN 
INCREASING ROLE OF MARKET FORCES AND THE PRIVATE SECTOR.  THE FOUR KEY 
COMPONENTS OF ETHIOPIA'S DEVELOPMENT STRATEGY CAN BE STATED AS FOLLOWS:   
 
(1)  MAINTENANCE OF AN APPROPRIATE MACROECONOMIC FRAMEWORK, 
 
(2) IMPROVEMENTS IN AGRICULTURAL EFFICIENCY AND GROWTH,  
 
(3) PRIVATE SECTOR DEVELOPMENT AND REFORM OF THE PUBLIC SECTOR, AND 
 
(4) ALLEVIATION OF POVERTY AND DEVELOPMENT OF HUMAN RESOURCES. 
 
THE MAJOR OBSTACLES TO DOING BUSINESS IN ETHIOPIA INCLUDE THE EXTREME 
POVERTY, WHICH HINDERS THE GROWTH OF A CONSUMER ECONOMY; INFRASTRUCTURE 
LIMITATIONS IN TERMS OF POOR ROADS, RAIL SERVICE, TELECOMMUNICATIONS, 
AND UTILITIES; DIFFICULTIES FACED BY EXPORTERS; THE UNCERTAINTY OF THE 
EFFECTIVENESS AND LONGEVITY OF ONGOING ECONOMIC REFORMS; PROHIBITIVE 
TAXES ON MANY ITEMS WHICH STIFLE EMERGING MARKETS FOR CONSUMER GOODS; 
BUREAUCRATIC PROBLEMS FOR PROSPECTIVE EXPORTERS; AND SLOW DECISION-
MAKING PROCEDURES. 
-   
COUNTRY COMMERCIAL GUIDES (CCG) ARE AVAILABLE ON THE NATIONAL TRADE DATA 
BANK ON CD-ROM OR THROUGH THE INTERNET.  PLEASE USE THE FOLLOWING 
WORLDWIDE WEB ADDRESS:  WWW.STAT-USA.GOVE.  CCGS CAN ALSO BE ORDERED IN 
HARD COPY OR ON DISKETTE FROM THE NATIONAL TECHNICAL INFORMATION SERVICE 
(NTIS) AT 1-800-553-NTIS. 
 
-------------------------------- 
II.  ECONOMIC TRENDS AND OUTLOOK 
-------------------------------- 
 
THE OBJECTIVES OF THE TRANSITIONAL GOVERNMENT OF ETHIOPIA (TGE) ARE TO 
ESTABLISH PEACE AND SECURITY, ENCOURAGE GROWTH BY REPLACING THE PREVIOUS 
CENTRALLY-PLANNED ECONOMY WITH A MARKET-BASED ECONOMY, AND REDUCE 
POVERTY.  TO CREATE A CONDUCIVE ENVIRONMENT FOR DEVELOPMENT, THE NEW 
ECONOMIC POLICY, ADOPTED BY THE GOVERNMENT IN NOVEMBER 1991, AIMS TO 
LIMIT THE ROLE OF GOVERNMENT TO SELECTED ECONOMIC SERVICES, ENCOURAGE 
PRIVATE INVESTMENT, PROMOTE GREATER PARTICIPATION OF THE PRIVATE SECTOR 
IN THE ECONOMY, MOBILIZE EXTERNAL RESOURCES, AND PURSUE APPROPRIATE 
MACROECONOMIC AND SECTORAL POLICIES.   
 
IN THE FOREIGN EXCHANGE SECTOR, THE GOVERNMENT DEVALUED THE BIRR BY 142 
PERCENT IN OCTOBER 1992, AND IN MAY 1993 INTRODUCED A BIWEEKLY AUCTION 
SYSTEM FOR FOREIGN EXCHANGE, WHICH IS FUNCTIONING FAIRLY WELL.  EXPORT 
TAXES (ON COMMODITIES OTHER THAN COFFEE) HAVE BEEN ELIMINATED, AND 
COFFEE EXPORT LICENSE FEES HAVE BEEN GREATLY REDUCED. 
 
IN AUGUST 1993, THE GOVERNMENT ENACTED A NEW HARMONIZED SYSTEM FOR 
CUSTOMS DUTIES, VIRTUALLY ELIMINATING SPECIFIC TARIFFS AND REDUCING THE 
MAXIMUM IMPORT DUTY FROM 230 PERCENT TO 80 PERCENT. 
 
IN THE AGRICULTURAL SECTOR, THE MONOPOLY OF MOST MARKETING BOARDS WAS 
ABOLISHED, ENABLING FARMERS TO SELL THEIR CROPS TO THE HIGHEST BIDDER.  
PARTS OF THE MARKET FOR AGRICULTURAL INPUTS WERE LIBERALIZED, AND COFFEE 
MARKETING HAS BEEN OPENED TO COMPETITION.  IN ADDITION, A NATIONAL 
CONSERVATION STRATEGY, INCLUDING A NATIONAL ENVIRONMENTAL ACTION PLAN, 
WILL SHORTLY BE COMPLETED. 
 
IN THE FINANCIAL SECTOR, NEW LAWS HAVE BEEN ISSUED OPENING THE BANKING 
AND INSURANCE SECTORS TO THE DOMESTIC PRIVATE SECTOR.  THE THREE 
FUNDAMENTAL PROCLAMATIONS ARE: 

(A) AUTONOMY OF THE NATIONAL BANK OF ETHIOPIA (NBE); 
 
(B) ESTABLISHMENT OF PRIVATE BANKS, AND 
 
(C) ESTABLISHMENT OF PRIVATE INSURANCE COMPANIES. 
 
THE FIRST PRIVATE BANK -- THE AWASH INTERNATIONAL BANK --  AND THE AWASH 
INSURANCE COMPANY AND THE NATIONAL INSURANCE COMPANY OF ETHIOPIA (NICE) 
STARTED OPERATIONS IN EARLY 1995.  SINCE THEN, FOUR ADDITIONAL PRIVATE 
INSURANCE COMPANIES, UNITED, AFRICA, NILE, AND UNIVERSAL, HAVE OPENED 
FOR BUSINESS.  TWO ADDITIONAL PRIVATE BANKS, THE DASHEN BANK AND THE 
BANK OF ABYSSINIA, ARE PREPARING TO APPLY FOR BANKING LICENSES AND ARE 
EXPECTED TO OPEN SOON.  
 
A NEW LEGAL FRAMEWORK HAS BEEN ESTABLISHED FOR THE LEASING OF URBAN 
LAND.  A PRIVATIZATION AGENCY HAS ALSO BEEN ESTABLISHED TO FORMULATE AND 
IMPLEMENT A PHASED PRIVATIZATION PROGRAM WITH DUE REGARD TO SOCIAL 
IMPACT.  IN 1995, THE GOVERNMENT HAS STARTED SELLING MOST STATE-OWNED 
RETAIL SHOPS AS WELL AS MOST GOVERNMENT-OWNED HOTELS AND RESTAURANTS.  
ENTERPRISES VALUED AT OVER USD THREE MILLION, SUCH AS SOFT DRINK 
BOTTLING PLANTS AND MAJOR HOTEL CHAINS, ARE BEING OFFERED FOR LEASE, 
MANAGEMENT CONTRACT, OR JOINT VENTURE, WITH THE ETHIOPIAN GOVERNMENT 
HOLDING A MINIMUM SHARE OF 25 PERCENT.  THE GOVERNMENT HAS ALSO 
DEVELOPED PROGRAMS TO FACILITATE THE COMMERCIALIZATION OF THOSE 
ENTERPRISES REMAINING IN THE PUBLIC SECTOR.  FOR STATE-OWNED 
ENTERPRISES, THE FOCUS WILL BE ON IMPROVEMENT OF PERFORMANCE, PHYSICAL 
REHABILITATION AND FINANCIAL RESTRUCTURING, AND  RETRENCHMENT, WHERE 
APPROPRIATE.  PRIVATIZATION OF STATE FARMS WILL BE UNDERTAKEN ALONG WITH 
THE REMAINING PUBLIC ENTERPRISES OVER THE LONGER TERM. 
 
GIVEN THE SITUATION INHERITED BY THE TGE, IT IS UNREALISTIC TO EXPECT A 
RAPID CHANGE IN ECONOMIC PERFORMANCE WITHOUT A RELAXATION OF ETHIOPIA'S 
FOREIGN EXCHANGE CONSTRAINTS.  ALTHOUGH THE SHORTAGE OF RAW MATERIALS, 
INTERMEDIATE GOODS, AND SPARE PARTS HAS PERSISTED, THIS CONSTRAINT HAS 
BEEN EASED PARTICULARLY THROUGH THE DONOR-SUPPORTED EMERGENCY RECOVERY 
AND RECONSTRUCTION PROJECT (ERRP), WHICH WAS DESIGNED TO HELP RESTART 
ECONOMIC ACTIVITY AND REBUILD ESSENTIAL SOCIAL AND PHYSICAL 
INFRASTRUCTURE.   
 
DEVELOPMENT DURING 1994/95 HAS BEEN LESS DRAMATIC, AND THE ECONOMY IS 
ESTIMATED TO HAVE GROWN QUITE MODESTLY (AT A RATE OF ROUGHLY 1.3 
PERCENT).  AN ERRATIC DISTRIBUTION OF RAINFALL THROUGHOUT THE COUNTRY 
AND LOW USAGE OF FERTILIZERS AND PESTICIDES DURING THE MAIN RAINY SEASON 
ARE ESTIMATED TO HAVE CONTRIBUTED TO A SIGNIFICANT DROP IN AGRICULTURAL 
OUTPUT.  THIS SHORTFALL HAS BEEN FURTHER AGGRAVATED BY AN UNUSUALLY DRY 
SHORT RAINY SEASON, LEADING TO SEVERE DROUGHT IN SOME NORTHERN REGIONS 
AND THE SOUTHERN LOWLANDS.  IN ADDITION, THE PEST PROBLEMS THAT EMERGED 
DURING THE 1994 SHORT HARVEST IN THESE REGIONS, AS WELL AS IN THE 
WESTERN PARTS OF THE COUNTRY, ARE ESTIMATED TO HAVE CONTRIBUTED TO THE 
SHARP DROP IN THE HARVEST.  AS A CONSEQUENCE, AGRICULTURAL OUTPUT IS 
ESTIMATED TO HAVE DECLINED BY ALMOST 6 PERCENT.  
 
HOWEVER, GROWTH IN THE NON-AGRICULTURAL SECTOR (9.2 PERCENT), MOST 
NOTABLY IN MANUFACTURING (13.2 PERCENT), CONTINUED TO BE ROBUST, THEREBY 
HELPING THE ECONOMY MAINTAIN A POSITIVE RATE OF GROWTH.  THIS GROWTH WAS 
MAINLY ATTRIBUTABLE TO THE CONTINUED RECOVERY IN THE PUBLIC ENTERPRISE 
SECTOR, AND TO PRIVATE SECTOR ACTIVITY, AS WELL AS AN IMPROVED 
INVESTMENT RATE. 
 
ETHIOPIA'S 75 MILLION HEAD OF LIVESTOCK IS ESTIMATED TO BE THE LARGEST 
IN AFRICA.  IT IS DIFFICULT TO CALCULATE THE SECTOR'S VALUE, SINCE A 
SIGNIFICANT PART OF MEAT AND DAIRY PRODUCTION IS FOR SUBSISTENCE 
PURPOSES.  IN CERTAIN REGIONS, PARTICULARLY IN THE HIGHLANDS, LIVESTOCK 
IS UTILIZED ONLY TO SUPPORT FARMING.  ETHIOPIA'S LIVESTOCK CONTINUES TO 
SUFFER FROM UNPREDICTABLE WEATHER CONDITIONS, DISEASES, AND THE LACK OF 
A COHERENT PLAN FOR THE DEVELOPMENT OF THE SECTOR.  ALTHOUGH HIDES AND 
SKINS/ LEATHER ARE ETHIOPIA'S SECOND MOST IMPORTANT EXPORT, THE SECTOR'S 
HUGE POTENTIAL REMAINS LARGELY UNTAPPED.  THE RECENT DROUGHT IS 
ESTIMATED TO HAVE HIT LIVESTOCK HERDS HARD. 
 
THE MANUFACTURING SECTOR IS COMPRISED OF LIGHT MANUFACTURING PRODUCTS, 
SUCH AS CONSTRUCTION MATERIALS, METAL AND CHEMICAL PRODUCTS, AND BASIC 
CONSUMER GOODS SUCH AS FOOD, BEVERAGES, AND TEXTILES.  THE SECTOR IS 
DOMINATED BY ABOUT 150 PUBLIC ENTERPRISES, WHICH ACCOUNT FOR MORE THAN 
95 PERCENT OF ITS VALUE.  THE PRODUCTION OF PUBLIC ENTERPRISES IS MOSTLY 
CONCENTRATED IN FOOD AND BEVERAGES, TEXTILES, CLOTHING, LEATHER AND 
LEATHER PRODUCTS, TOBACCO, RUBBER, PLASTIC, AND CEMENT.  PRIVATE  
 
SECTOR MANUFACTURING ACTIVITY, ALTHOUGH ON A MUCH SMALLER SCALE, FOLLOWS 
A SIMILAR PATTERN.  FROM THE TOTAL OF ABOUT 145 PRIVATE SECTOR 
MANUFACTURING FIRMS, MOST ARE INVOLVED IN BAKERY PRODUCTS, TEXTILES, 
FOOTWEAR, AND FURNITURE PRODUCTION. 
   
DURING 1989-91, MANUFACTURING WAS ADVERSELY AFFECTED BY THE CIVIL WAR; 
SHORTAGES OF RAW MATERIALS, FOREIGN EXCHANGE, AND FUEL; AND FREQUENT 
BREAKDOWNS ARISING FROM OBSOLETE MACHINERY AND POWER FAILURES.  AS THE 
RESULT, THE SHARE OF THE MANUFACTURING SECTOR IN GDP DECLINED STEADILY, 
FROM AROUND 5.7 PERCENT IN 1989/90 TO 2.2. PERCENT IN 1991/92.  IN 
1992/93, THE SECTOR'S SHARE INCREASED TO 3.8 PERCENT, OWING TO A SHARP 
REBOUND FOLLOWING THE ELIMINATION OF SOME CONSTRAINTS (MAINLY THE 
GREATER AVAILABILITY OF FOREIGN EXCHANGE).  IN 1994/95 THE AVERAGE 
CAPACITY UTILIZATION OF PUBLIC ENTERPRISES CLIMBED TO ALMOST 70 PERCENT, 
FROM RATES AS LOW AS 20 PERCENT AT THE END OF 1992/93.  IN 1994/95, THE 
SECTOR'S SHARE OF THE GDP INCREASED FURTHER TO 4.5 PERCENT, THOUGH THIS 
WAS IN PART DUE TO THE CONTRACTION IN AGRICULTURAL PRODUCTION. 
 
IN THE SHORT TERM AT LEAST, THE SUSTAINABILITY OF THE MANUFACTURING 
RECOVERY IS LIKELY TO BE INFLUENCED BY HOW WELL THE PRIVATE SECTOR 
RESPONDS TO MARKET INCENTIVES, AS WELL AS BY THE CAPACITY OF PUBLIC 
ENTERPRISES TO ADAPT TO THE RECENTLY MORE COMPETITIVE MARKET 
ENVIRONMENT.  ACCORDING TO THE NEW POLICY, PUBLIC ENTERPRISES ELECT 
THEIR MANAGEMENT BOARDS, ASSUME AUTONOMY IN THEIR PRICING AND PRODUCTION 
DECISIONS, AND ARE NO LONGER SUPERVISED BY THE MINISTRY OF INDUSTRY.   
 
ETHIOPIA'S BALANCE OF PAYMENTS HAS BEEN AFFECTED BY WEATHER CONDITIONS, 
TERMS OF TRADE, THE CIVIL WAR AND CHANGE OF GOVERNMENT, AND THE 
EMERGENCY RELIEF AND REHABILITATION EFFORTS PROVIDED BY THE 
INTERNATIONAL COMMUNITY.  DEVELOPMENTS IN 1991/92 MAINLY REFLECTED THE 
INITIAL RECOVERY AND RECONSTRUCTION FOLLOWING THE CHANGE OF GOVERNMENT 
IN MAY 1991, ALTHOUGH CONDITIONS REMAINED DIFFICULT AFTER MID-1991 
DESPITE THE END OF THE CIVIL WAR.  IN 1992/93, THE BALANCE OF PAYMENTS 
BEGAN TO BE INFLUENCED BY THE STABILIZATION AND STRUCTURAL POLICIES THAT 
WERE IMPLEMENTED, STARTING IN OCTOBER 1992 WITH THE MAJOR DEVALUATION, 
THE INCREASING AVAILABILITY AND ACCESS OF THE PRIVATE SECTOR TO FOREIGN 
EXCHANGE FROM DONOR SOURCES, AND THE INITIAL STEPS TAKEN TO LIBERALIZE 
THE FOREIGN TRADE AND DOMESTIC MARKETING SYSTEMS. 
 
COFFEE CONTINUES TO BE THE MOST IMPORTANT EXPORT COMMODITY IN ETHIOPIA.  
FOR FIFTEEN YEARS UP TO 1994, COFFEE ACCOUNTED FOR AN AVERAGE OF 55 
PERCENT OF THE NATION'S TOTAL VALUE OF EXPORTS.  THIS PROPORTION HAS 
INCREASED RECENTLY, TO PERHAPS 65 PERCENT OF TOTAL EXPORT EARNINGS IN 
THE 1994-95 COFFEE YEAR.  DURING 1994, A TOTAL OF 79,920 METRIC TONS OF 
COFFEE WAS EXPORTED, GENERATING AN INCOME OF BIRR 969 MILLION, WHICH IS 
A 15 PERCENT INCREASE IN QUANTITY AND A 51 PERCENT INCREASE IN VALUE 
OVER 1993 EXPORT FIGURES.   
 
ETHIOPIA'S MAIN IMPORTS CONSIST OF SEMIFINISHED GOODS, CRUDE PETROLEUM 
AND PETROLEUM PRODUCTS, TRANSPORT AND INDUSTRIAL CAPITAL GOODS, MEDICAL 
AND PHARMACEUTICAL PRODUCTS, VEHICLES, CIVIL AIRCRAFT, RAW MATERIALS, 
AND AGRICULTURAL CAPITAL GOODS.   
 
AFTER THE DEVALUATION OF THE BIRR, AND IN AN EFFORT TO CLOSE THE GAP 
BETWEEN OFFICIAL AND PARALLEL EXCHANGE RATES, THE GOVERNMENT INTRODUCED 
A SYSTEM OF FORTNIGHTLY FOREIGN EXCHANGE AUCTIONS IN MAY 1993.  ANY 
TRADER WITH AN IMPORT LICENSE MAY APPLY FOR FOREIGN EXCHANGE.  THE 
AUCTION-DETERMINED PRICE IS THEN APPLICABLE FOR ALL TRANSACTIONS OTHER 
THAN DEBT SERVICING, PAYMENTS TO INTERNATIONAL ORGANIZATIONS, AND 
IMPORTS OF FUEL, FERTILIZER, AND PHARMACEUTICALS.  THIS MECHANISM LED TO 
A FURTHER 10 PERCENT DEVALUATION BY THE END OF 1993 AND ANOTHER 9 
PERCENT DEVALUATION BY MAY 1994.  THE EXCHANGE RATE AS OF JULY 1995 IS 
BIRR 6.32 PER DOLLAR. 
 
IN LATE 1992 THE GOVERNMENT ANNOUNCED A COMPLETE OVERHAUL OF TARIFFS ON 
FOREIGN TRADE.  THESE INCLUDED SUBSTANTIAL CUTS IN CUSTOMS TARIFFS AND 
IN THE SALES TAX ON IMPORTED GOODS, BRINGING IT INTO LINE WITH RATES 
APPLICABLE ON DOMESTIC GOODS. 
 
IN EARLY 1992, THE TRANSITIONAL GOVERNMENT ISSUED A NEW INVESTMENT CODE, 
WHICH OPENS ALL SECTORS (EXCEPT LARGE-SCALE ENERGY PROJECTS, TRANSPORT, 
AND FINANCIAL SERVICES), TO FOREIGN INVESTORS.  THE RECENTLY-ESTABLISHED 
INVESTMENT OFFICE OF ETHIOPIA IS RESPONSIBLE FOR COORDINATING NEW 
INVESTMENT FROM FOREIGN AND DOMESTIC SOURCES.  ALTHOUGH MANY INVESTMENT 
PERMITS HAVE BEEN ISSUED SO FAR, THE NUMBER OF SUCCESSFULLY INITIATED 
PROJECTS HAS BEEN VERY LIMITED. 
 
IN ETHIOPIA, THE LABOR FORCE WAS ESTIMATED AT APPROXIMATELY 22 MILLION 
IN 1988/90, OF WHICH ABOUT 80 PERCENT WERE EMPLOYED IN AGRICULTURE, 
MOSTLY AS PEASANT FARMERS.  SERVICES, PARTICULARLY THE GOVERNMENT AND 
THE ARMED FORCES, HAVE BEEN THE MOST IMPORTANT SOURCE OF EMPLOYMENT 
OUTSIDE AGRICULTURE, PROVIDING WORK FOR ALMOST 3 MILLION PEOPLE.  THE 
NUMBER OF PERMANENT AND TEMPORARY WORKERS EMPLOYED IN PUBLIC SECTOR 
MANUFACTURING INCREASED FROM 78,000 IN 1978 TO OVER 200,000 IN 1989.  IN 
1995, IT IS ESTIMATED THAT 30 PERCENT OF THE ETHIOPIAN WORKFORCE IS 
UNEMPLOYED.  
 
URBAN UNEMPLOYMENT AND UNDEREMPLOYMENT ARE HIGH, ALTHOUGH THIS IS 
PARTIALLY OFFSET BY THE PARALLEL INFORMAL ECONOMY.  THE LATTER HAS 
EXPANDED MASSIVELY SINCE THE CHANGE OF GOVERNMENT IN 1991, AS CONTROLS 
ON TRADE, PARTICULARLY OF IMPORTED CONTRABAND, EVAPORATED.  DURING THE 
1980'S FORCED AND INCREASING ARBITRARY CONSCRIPTION OF URBAN YOUTH INTO 
THE ARMY HELPED MASK UNEMPLOYMENT.  THE POSTWAR PROSPECTS FOR EMPLOYMENT 
ARE GRIM.  OVER 200,000 LARGELY UNSKILLED YOUNG MEN HAVE ENTERED THE 
LABOR MARKET FOLLOWING DEMOBILIZATION.  MANY STATE CORPORATIONS ARE TO 
BE DISBANDED OR FORCED TO SHED THOUSANDS OF JOBS.  HOWEVER, THE 
GOVERNMENT EXPECTS RECENTLY-LICENSED PRIVATE INVESTORS TO CREATE ABOUT 
50,000 JOBS.  NOTWITHSTANDING HIGH LEVELS OF UNEMPLOYMENT, THERE IS AN 
ACUTE SHORTAGE OF SKILLED PERSONNEL, WORSENED BY THE FLIGHT OF MANY 
GRADUATES AS POLITICAL REFUGEES DURING THE MENGISTU PERIOD.  DOUBTS OVER 
FUTURE STABILITY AND THE MUCH HIGHER LIVING STANDARDS IN DEVELOPED 
COUNTRIES HAVE DETERRED QUALIFIED PERSONNEL FROM RETURNING.   
 
ABOUT 17 PERCENT OF ETHIOPIAN IMPORTS ARE CONDUCTED THROUGH GOVERNMENT 
TENDERS.  THE TENDER ANNOUNCEMENT IS MADE PUBLIC TO ALL INTERESTED 
POTENTIAL BIDDERS, REGARDLESS OF NATIONALITY OF SUPPLIER OR ORIGIN OF 
THE PRODUCTS/SERVICES.  BOTH ETHIOPIAN AND FOREIGN SUPPLIERS, ESPECIALLY 
THOSE FROM ITALY, GERMANY, FRANCE, JAPAN, AND THE UK WHO HAVE LOCAL 
REPRESENTATIVES PARTICIPATE AGGRESSIVELY AND TEND TO COMPETE 
SUCCESSFULLY.  IT IS IMPORTANT THAT SUPPLIERS BE INVOLVED AT THE 
EARLIEST DESIGN STAGES TO ENSURE THAT PROJECT SPECIFICATIONS FIT U.S. 
PRODUCTS.  METHODS USED BY SUCCESSFUL COMPETITORS INCLUDE ACTIVE CONTACT 
WITH KEY OFFICIALS RESPONSIBLE FOR VARIOUS MAJOR PROGRAMS AND PROJECTS, 
PERSONAL VISITS BY REPRESENTATIVES FOR INITIAL MARKET SURVEYS, AND 
CONTACT WITH LOCAL REPRESENTATIVES KNOWLEDGEABLE ABOUT FUTURE PLANS AND 
MARKET POTENTIALS. 
 
ETHIOPIA'S POOR TRANSPORT AND OTHER INFRASTRUCTURES HAVE HAMPERED 
ECONOMIC DEVELOPMENT AND ARE AN OBSTACLE TO ECONOMIC INTEGRATION, EXPORT 
GROWTH, AND THE REALIZATION OF GREATER ECONOMIC POTENTIAL IN GENERAL.  
TO ALLEVIATE THOSE PROBLEMS, THE GOVERNMENT WILL FOCUS ON THE FOLLOWING:  
ROAD MAINTENANCE AND REHABILITATION, ENCOURAGING THE DEVELOPMENT OF 
LOCAL ROAD CONSTRUCTION AND MAINTENANCE CONTRACTING CAPABILITY, 
PRIVATIZING STATE CONSTRUCTION COMPANIES, AND HELPING DEVELOP THE 
PRIVATE SECTOR CONSTRUCTION INDUSTRY.  IN THE TELECOMMUNICATIONS SECTOR, 
THE GOVERNMENT WILL FULLY COMMERCIALIZE THE ETHIOPIAN TELECOMMUNICATIONS 
AUTHORITY (ETA), ESTABLISH A REGULATORY BODY, AND ALLOW PRIVATE SECTOR 
PARTICIPATION IN THE TRADING OF SELECTED TELECOMMUNICATIONS EQUIPMENT.  
 
OTHER AREAS OF GOVERNMENT CONSIDERATION INCLUDE: FORMULATING AND 
IMPLEMENTING A NATIONAL ENERGY STRATEGY, DOUBLING THE ACCESS TO SAFE 
WATER AND EFFECTIVE SANITATION AMONG THE POPULATION, AND ADDRESSING 
HOUSING SHORTAGES BY LIBERALIZING THE HOUSING AND CONSTRUCTION MARKETS. 
 
THE FOLLOWING ARE THE MAJOR PROJECTS UNDERWAY: 
 
A.  PROJECT:  HEALTH II - PROJECT SEEKS A FOLLOW-UP TO THE FAMILY HEALTH 
PROJECT.  COMPONENTS ARE TO BE DETERMINED -  ENVIRONMENTAL ASSESSMENT 
CATEGORY. 
 
IMPLEMENTING AGENCY:  MINISTRY OF HEALTH 
                      P.O. BOX  1234 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-517-011  
                      FAX: 251-1-519-366         

B.  PROJECT:  ENERGY II - PROJECT SEEKS TO:  (A) MEET GROWING DOMESTIC 
DEMAND FOR ELECTRICITY BY EXPANDING TRANSMISSION AND GENERATION 
CAPACITY; AND (B) IMPROVE THE SUPPLY AND EFFICIENCY OF USE OF ENERGY IN 
RURAL AREAS 
 
IMPLEMENTING AGENCY:  MINISTRY OF MINES AND ENERGY 
                      P.O. BOX  486   
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-518-250 
                      FAX: 251-1-517-874 
              
C.  PROJECT:  NATURAL RESOURCE MANAGEMENT - CONSERVATION DEVELOPMENT OF 
LAND AND WATER RESOURCES THROUGH SUPPORT FOR COMMUNITY-BASED 
INITIATIVES, STRENGTHENING GOVERNMENT'S INFORMATION AND PLANNING SYSTEMS 
REGARDING ENVIRONMENT RESOURCES. 
 
IMPLEMENTING AGENCY:  MINISTRY OF NATURAL RESOURCES 
                      DEVELOPMENT AND ENVIRONMENTAL 
                      PROTECTION 
                      P.O. BOX  1034 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-518-040 
                      FAX: 251-1-513-042 
 
D.  PROJECT:  RURAL ROADS I - PROJECT IS EXPECTED TO (A) REHABILITATE 
SELECTED RURAL ROADS IN REGIONS TO BE DETERMINED WITH THE OVERNMENT; (B) 
BUILD UP PRIVATE SECTOR CAPACITY FOR EXECUTING ROAD WORKS; AND (C) BUILD 
UP CAPACITY OF REGIONAL BUREAUS FOR RURAL ROAD MAINTENANCE. 
 
IMPLEMENTING AGENCY:  ETHIOPIAN ROADS AUTHORITY 
                      P.O. BOX 1770 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-516-603 
                      FAX: 251-1-514-866 
 
 
E.  PROJECT:  WATER SUPPLY DEVELOPMENT - PROJECT SEEKS TO PROVIDE:  (A) 
INSTITUTIONAL SUPPORT FOR CAPACITY BUILDING FOR WATER SECTOR 
INSTITUTIONS; (B) ASSISTANCE IN SECTOR DEVELOPMENT PLANNING AND IN 
PREINVESTMENT STUDIES; AND (C) ASSIST IN THE MEDIUM AND SHORT-TERM 
REHABILITATION AND AUGMENTATION OF URBAN WATER SUPPLY SCHEMES. 
 
IMPLEMENTING AGENCY:  WATER SUPPLY AND SEWERAGE AUTHORITY 
                      (WASSA) 
                      P.O. BOX 5744 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-611-111 
                      FAX: 251-1-610-600 
 
F.  PROJECT:  TELECOM VII - PROJECT WILL INCLUDE: (A) SUPPLY AND 
INSTALLATION OF TELECOMMUNICATION EQUIPMENT INCLUDING EXCHANGES; 
EXTERNAL LINE PLANT; LONG DISTANCE, POWER, AND AIR CONDITIONING 
QUIPMENT; AND (B) TECHNICAL ASSISTANCE FOR SECTOR RESTRUCTURING AND 
LONG-TERM NETWORK DEVELOPMENT STRATEGIES. 
           
IMPLEMENTING AGENCY:  ETHIOPIAN TELECOMMUNICATIONS 
                      AUTHORITY (ETA) 
                      P.O. BOX 1047 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-510-500 
                      FAX: 251-1-515-777 
 
G.  PROJECT:  TO PROVIDE THE NORTHERN PARTS OF THE COUNTRY WITH ELECTRIC 
POWER SERVICE INCLUDING A 490 KM BAHIR DAR - ALAMATA - MAKELLE 230 KV 
CABLE, A 100 KM MAKELLE - ADIGRAT 132 KV CABLE, AND A 120 KM MAKELLE - 
ADWA 132 KV CABLE. 
 
IMPLEMENTING AGENCY:  ETHIOPIAN ELECTRIC LIGHT AND POWER 
                      AUTHORITY (EELPA) 
                      P.O. BOX 1233 
                      ADDIS ABABA, ETHIOPIA 
                      TEL: 251-1-550-811 
                      FAX: 251-1-551-324 
 
-------------------------- 
III. POLITICAL ENVIRONMENT 
-------------------------- 
 
A.  HISTORICAL BACKGROUND 
 
IN 1974, A PROVISIONAL ADMINISTRATIVE COUNCIL OF SOLDIERS, KNOWN AS THE 
DERG ("COMMITTEE") SEIZED POWER FROM EMPEROR HAILE SELASSIE AND 
INSTALLED A GOVERNMENT WHICH WAS SOCIALIST IN NAME AND MILITARY IN 
STYLE.  ITS LEADER, LT. COL. MENGISTU HAILE MARIAM, ASSUMED POWER AS 
HEAD OF STATE AND DERG CHAIRMAN. 
 
MENGISTU'S YEARS IN OFFICE WERE MARKED BY A TOTALITARIAN-STYLE 
GOVERNMENT AND THE COUNTRY'S MASSIVE MILITARIZATION, FINANCED BY THE 
SOVIET UNION AND THE EASTERN BLOC, AND ASSISTED BY CUBA.  FROM 1977 
THROUGH EARLY 1978 THOUSANDS OF SUSPECTED ENEMIES OF THE DERG WERE 
TORTURED AND/OR KILLED IN A PURGE CALLED THE "RED TERROR."  COMMUNISM 
WAS OFFICIALLY ADOPTED DURING THE LATE 1970S AND EARLY 1980S WITH THE 
PROMULGATION OF A SOVIET-STYLE CONSTITUTION, POLITBURO, AND THE CREATION 
OF THE WORKERS' PARTY OF ETHIOPIA (WPE). 
 
THE DERG'S COLLAPSE WAS HASTENED BY DROUGHTS AND FAMINE, AS WELL AS BY 
INSURRECTIONS, PARTICULARLY IN THE NORTHERN REGIONS OF TIGRAY AND 
ERITREA.  IN THE LATE 1980'S, THE TIGRAY PEOPLES' LIBERATION FRONT 
(TPLF) MERGED WITH OTHER ETHNICALLY-BASED OPPOSITION MOVEMENTS TO FORM 
THE ETHIOPIAN PEOPLES' REVOLUTIONARY DEMOCRATIC FRONT (EPRDF).  IN MAY 
1991, EPRDF FORCES ADVANCED ON ADDIS ABABA.  MENGISTU FLED THE COUNTRY 
AND WAS GRANTED POLITICAL ASYLUM IN ZIMBABWE, WHERE HE STILL RESIDES. 
 
IN JULY 1991, THE EPRDF, THE OROMO LIBERATION FRONT (OLF), AND OTHERS 
ESTABLISHED THE TRANSITIONAL GOVERNMENT OF ETHIOPIA (TGE), WHICH WAS 
COMPRISED OF AN 87-MEMBER COUNCIL OF REPRESENTATIVES AND GUIDED BY A 
NATIONAL CHARTER THAT FUNCTIONED AS A TRANSITIONAL CONSTITUTION.  IN 
JUNE 1992, THE OLF WITHDREW FROM THE GOVERNMENT; IN MARCH 1993, MEMBERS 
OF THE SOUTHERN ETHIOPIA PEOPLE'S DEMOCRATIC COALITION WERE EXPELLED.  
AS OF AUGUST 1994, ONLY 64 MEMBERS REMAINED IN THE COUNCIL, 32 OF WHOM 
BELONGED TO THE EPRDF. 
 
IN MAY 1993, ERITREANS VOTED OVERWHELMINGLY IN FAVOR OF INDEPENDENCE 
FROM ETHIOPIA, AND ERITREA IS NOW AN INDEPENDENT COUNTRY.  IN ETHIOPIA, 
PRESIDENT MELES ZENAWI AND MEMBERS OF THE TGE PLEDGED TO OVERSEE THE 
FORMATION OF A MULTIPARTY DEMOCRACY.  THE ELECTION FOR A 547-MEMBER 
CONSTITUENT ASSEMBLY WAS HELD IN JUNE 1994, AND THIS ASSEMBLY ADOPTED 
THE CONSTITUTION OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA IN 
DECEMBER 1994.  THE ELECTIONS FOR ETHIOPIA'S FIRST POPULARLY CHOSEN 
NATIONAL PARLIAMENT AND REGIONAL LEGISLATURES WERE HELD IN MAY AND JUNE 
1995.  ALTHOUGH MOST OPPOSITION PARTIES CHOSE TO BOYCOTT THESE 
ELECTIONS, INTERNATIONAL AND NON-GOVERNMENTAL OBSERVERS CONCLUDED THAT 
THE ELECTIONS WERE GENERALLY FREE AND FAIR, AND NOTED THAT OPPOSITION 
PARTIES COULD HAVE PARTICIPATED HAD THEY CHOSEN TO DO SO. 

B.  RELATIONS WITH THE UNITED STATES 
 
THE UNITED STATES HAS HAD LONG AND CORDIAL RELATIONS WITH THE ETHIOPIAN 
PEOPLE, EVEN DURING PERIODS WHEN OUR OFFICIAL RELATIONS WITH THE 
GOVERNMENT WERE MINIMAL.  THE U.S. PROVIDED MASSIVE HUMANITARIAN 
ASSISTANCE TO ETHIOPIA THROUGHOUT THE YEARS OF THE DERG REGIME.  UNTIL 
THE MID-1970'S, THE PEACE CORPS MAINTAINED ONE OF ITS LARGEST PROGRAMS 
IN ETHIOPIA.  THE STRONG AFFILIATIONS FORMED ARE REFLECTED IN THE FACT 
THAT NEARLY 100 FORMER PEACE CORPS VOLUNTEERS RETURNED TO ETHIOPIA IN 
JUNE 1995 TO COMMEMORATE THEIR 30TH ANNIVERSARY OF SERVICE. 
 
SINCE 1991, THE U.S. HAS MAINTAINED CLOSE BILATERAL TIES WITH THE 
TRANSITIONAL GOVERNMENT.  ETHIOPIA IS, AFTER SOUTH AFRICA, THE LARGEST 
RECIPIENT OF U.S. ECONOMIC ASSISTANCE IN SUB-SAHARAN AFRICA.  ALTHOUGH 
MOST U.S. ASSISTANCE IS IN THE FORM OF FOOD AID, DEVELOPMENT ASSISTANCE 
TOTALLED ABOUT USD 30 MILLION IN FY 95.  THE PROMOTION OF A MARKET 
ECONOMY, THE DEVELOPMENT OF DEMOCRATIC INSTITUTIONS, AND BUILDING 
UNDERSTANDING OF THE RULE OF LAW AND RESPECT FOR HUMAN RIGHTS ARE 
PRIMARY OBJECTIVES OF U.S. POLICY IN ETHIOPIA.  THE PERIOD 1991 - 1995 
HAS SEEN SIGNIFICANT PROGRESS IN EACH OF THESE KEY AREAS, ALTHOUGH 
ADDITIONAL WORK REMAINS. 
 
C.  POLITICAL IMPACT ON THE BUSINESS CLIMATE 
 
THE ETHIOPIAN LEADERSHIP IS AGGRESSIVELY IMPLEMENTING A MARKET ECONOMIC 
SYSTEM TO REPLACE THE STATIST ECONOMY IMPOSED BY THE MARXIST DERG 
REGIME.  ETHIOPIA MAINTAINS CONSTRUCTIVE RELATIONS WITH THE IMF AND 
WORLD BANK, AND IS IN TECHNICAL COMPLIANCE WITH ALL IMF AND WORLD BANK 
BENCHMARKS AND CONDITIONALITIES.  THE TRANSITIONAL GOVERNMENT HAS BEGUN 
AN AMBITIOUS PROGRAM TO PRIVATIZE STATE-OWNED ENTERPRISES.  THE 
GOVERNMENT IS ALSO COMMITTED TO ATTRACTING FOREIGN INVESTMENT, ALTHOUGH 
SOME BUREAUCRATIC IMPEDIMENTS TO ENTRY BY FOREIGN FIRMS REMAIN.  
NEVERTHELESS, AN AMERICAN FIRM RECENTLY WON A USD 85 MILLION CONTRACT TO 
CONSTRUCT A SUGAR MILL.  OTHER U.S. FIRMS HAVE WON CONCESSIONS TO 
EXPLORE FOR GOLD AND PETROLEUM.  ETHIOPIAN AIRLINES REMAINS A MAJOR 
PURCHASER OF U.S. AIRCRAFT AND JET ENGINES.  ETHIOPIA IS LARGELY FREE 
FROM THE CULTURE OF CORRUPTION WHICH SERVES AS A BARRIER TO INVESTMENT 
IN MANY OTHER AFRICAN COUNTRIES. 

 
----------------------------------------- 
IV.  MARKETING U.S. PRODUCTS AND SERVICES 
----------------------------------------- 
 
ETHIOPIA REQUIRES THAT ALL IMPORTS BE CHANNELED THROUGH ETHIOPIAN 
NATIONALS REGISTERED WITH THE GOVERNMENT AS OFFICIAL IMPORT OR 
DISTRIBUTION AGENTS.  THE IMPORTER OR AGENT IS REQUIRED TO APPLY FOR AN 
IMPORT LICENSE WITH THE MINISTRY OF TRADE, AND WITH THE CONTROLLER OF 
EXCHANGE OF THE ETHIOPIAN NATIONAL BANK TO OBTAIN ACCESS TO FOREIGN 
EXCHANGE.   
 
IN ETHIOPIA IT IS NOT DIFFICULT TO FIND EXPERIENCED AND REPUTABLE AGENTS 
AND DISTRIBUTORS.  TO CONDUCT BUSINESS EFFECTIVELY AND PARTICIPATE IN 
LOCAL TENDERS, IT IS ADVISABLE FOR U.S. FIRMS TO APPOINT LOCAL AGENTS TO 
REPRESENT THEIR PRODUCTS IN ETHIOPIA.  THE EMBASSY MAINTAINS A LIST OF 
EXPERIENCED LOCAL REPRESENTATIVES WILLING TO ASSIST U.S. COMPANIES IN 
BIDS ON MAJOR PROJECTS.   
 
DUE TO A CHRONIC SHORTAGE OF FOREIGN EXCHANGE, FRANCHISING AND DIRECT 
MARKETING ARE DIFFICULT.  
 
FOREIGN INVESTMENT INFLOWS THROUGH JOINT VENTURES ARE, HOWEVER, PROMOTED 
AND ENCOURAGED IN ETHIOPIA.  THE FOLLOWING ARE THE MAJOR CRITERIA FOR 
THE APPROVAL OF JOINT VENTURE PROPOSALS:  
 
(A) TRANSFER, ABSORPTION, AND ADAPTATION OF NEEDED TECHNOLOGY AND KNOW-
HOW INTO THE COUNTRY; 
 
(B) IMPROVEMENT OF THE COUNTRY'S FOREIGN EXCHANGE POSITION;  
 
(C) UTILIZATION AND DEVELOPMENT OF THE COUNTRY'S RESOURCES, INCLUDING 
THE GENERATION OF LOCAL EMPLOYMENT OPPORTUNITIES; AND 
 
(D) DEVELOPMENT OF FORWARD AND BACKWARD LINKAGES, AND INCREASED ADDED 
VALUE IN VARIOUS ECONOMIC SECTORS. 
 
ALL IMPORTERS AND EXPORTERS MUST BE REGISTERED WITH THE MINISTRY OF 
TRADE AND OBTAIN A TRADING LICENSE.  THE MINISTRY OF TRADE REGULATES 
IMPORTS AND EXPORTS.  FOREIGN EXCHANGE PERMITS ARE REQUIRED FOR ALL 
IMPORTS. 
 
ADVERTISING AND TRADE PROMOTION ARE IMPORTANT IN THE ETHIOPIAN MARKET.  
THE GOVERNMENT-OWNED MASS MEDIA (RADIO, TELEVISION, AND NEWSPAPER) AND 
PRIVATELY-OWNED MAGAZINES AND NEWSPAPERS ARE THE MAJOR MEANS OF 
ADVERTISING.  IN ETHIOPIA, RADIO AND NEWSPAPERS HAVE A WIDER AUDIENCE 
THAN TELEVISION, WHICH IS VERY LIMITED.  SOME OF THE MAJOR NEWSPAPERS 
AND MAGAZINES INCLUDE: 
 
ETHIOPIAN HERALD 
P.O. BOX 30701   
TEL:  251-1-123-879, 251-1-112-041, 251-1-118-252   
ADDIS ABABA, ETHIOPIA 
 
THE MONITOR 
P.O. BOX 22588 
TEL:  251-1-156-400, 251-1-511-880 
FAX:  251-1-518-409 
ADDIS ABABA, ETHIOPIA 
 
ETHIOPIAN TRADE JOURNAL 
ETHIOPIAN CHAMBER OF COMMERCE 
P.O. BOX 517 
TEL:  251-1-518-240 
FAX:  251-1-517-699 
ADDIS ABABA, ETHIOPIA 
 
NIGDNA LIMAT 
ADDIS ABABA CHAMBER OF COMMERCE 
P.O. BOX 2458 
TEL:  251-1-518-055, 251-1-513-814 
FAX:  251-1-511-479 
ADDIS ABABA, ETHIOPIA 
 
ATBIA KOKEB PUBLISHING AND ADVERTISING P.L.C. 
P.O. BOX 24763     
TEL:  251-1-112-255 
ADDIS ABABA, ETHIOPIA 
 
REGULATIONS FOR THE REGISTRATION OF PATENTS AND TRADE MARKS DO NOT EXIST 
IN ETHIOPIA.  SOME PROTECTION CAN BE SECURED THROUGH REGISTRATION OF 
PATENTS AND TRADE MARKS AT THE MINISTRY OF TRADE AND THE PUBLICATION OF 
CAUTIONARY NOTICES IN LOCAL NEWSPAPERS IN ETHIOPIA.  TWO COPIES OF THE 
NEWSPAPER SHOULD BE SENT TO THE MINISTRY. 
 
--------------------------------------------- 
V.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS 
--------------------------------------------- 
 
THE FOLLOWING PRODUCTS, LISTED AS ESSENTIAL ITEMS ON THE TRANSITIONAL 
GOVERNMENT OF ETHIOPIA'S (TGE) PRIORITY LIST, REPRESENT THE BEST 
PROSPECTS FOR PRODUCTS AND SERVICES FOR U.S. EXPORTERS: 
 
A.  BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES 
 
1.  AIRCRAFT, AIRCRAFT ENGINES, AND SPARE PARTS (AIR) 
 
2.  HIGHWAY CONSTRUCTION EQUIPMENT (CON) 
 
3.  INDUSTRIAL CHEMICALS (ICH) 
 
4.  HANDTOOLS FOR FARMING (TLS) 
 
5.  POWER TRANSMISSION EQUIPMENT (ELP) 
 
6.  TELECOMMUNICATIONS EQUIPMENT (TEL) 
 
7.  TRUCKS AND PARTS (TRK) 
 
8.  CONSTRUCTION MATERIALS (CMT) 
 
9.  INDUSTRIAL MACHINERY AND PARTS (MTL) 
 
10. VETERINARY DRUGS AND SUPPLIES (VET) 
 
11. PHARMACEUTICAL RAW MATERIALS (DRG) 
 
12. MEDICAL EQUIPMENT (MED)  
 
13. ROAD MAINTENANCE EQUIPMENT (CON) 
 
14. COMPUTERS AND PERIPHERAL EQUIPMENT (CPT) 
 
15. AIRPORT EQUIPMENT (SUCH AS NAVIGATION AND COMMUNICATION DEVICES) 
(APG) 
 
16. TEXTILE MACHINERY AND EQUIPMENT (TXM) 
 
17. WATER RESOURCE EQUIPMENT (WRE) 
 
 
B.  BEST PROSPECTS FOR AGRICULTURAL GOODS AND SERVICES 
 
- 
1.  FERTILIZERS, AGRICULTURAL CHEMICALS, AND PESTICIDES 
 
2.  AGRICULTURAL COMMODITIES (COTTON, WHEAT, SEEDS) 
 
IN ADDITION TO THE ABOVE, A KEEN DEMAND IS ANTICIPATED FOR TECHNICAL 
SERVICES IN SEVERAL AREAS, INCLUDING: 
 
-- PEASANT AGRICULTURAL DEVELOPMENT 
 
-- STATE FARMS DEVELOPMENT 
 
-- RURAL INFRASTRUCTURE DEVELOPMENT 
 
-- NATURAL RESOURCES AND SETTLEMENT 
 
-- WATER SUPPLY AND SEWAGE SYSTEMS 
 
-- NATURAL OIL AND GAS EXPLORATION 
 
-- FOOD INDUSTRY 
 
-- NON-METALLIC INDUSTRY 
 
-- SMALL-SCALE INDUSTRIES AND HANDICRAFTS 
 
-- TRADE AND TOURISM 
 
-- TRANSPORT AND COMMUNICATIONS 
 
IN 1992 AND 1993, ETHIOPIA WAS THE UNITED STATES' THIRD AND FOURTH 
LARGEST MARKET IN SUB-SAHARA AFRICA, IMPORTING USD 249.5 AND USD 168.2 
MILLION WORTH OF AMERICAN GOODS AND SERVICES, RESPECTIVELY.  BASED ON 
INFORMATION FOR THE FIRST NINE MONTHS OF 1994, ETHIOPIA HAS FALLEN TO 
FIFTH PLACE IN TERMS OF THE VALUE OF U.S. IMPORTS.  DURING THIS PERIOD, 
ETHIOPIA IMPORTED USD 108.7 MILLION WORTH OF AMERICAN GOODS AND 
SERVICES.  WHILE THE BULK OF THESE IMPORTS CONSISTS OF AIRCRAFT AND 
PARTS, OTHER IMPORTS INCLUDE: FOOD ITEMS, BEVERAGES AND TOBACCO, 
AGRICULTURAL AND INDUSTRIAL CHEMICALS, AND FERTILIZERS.  IN 1992, 
ETHIOPIA BECAME ELIGIBLE TO PARTICIPATE IN THE GENERALIZED SYSTEM OF 
PREFERENCES (GSP). 
 
IN 1993 ETHIOPIA'S MAJOR TRADING PARTNERS IN RANK ORDER WERE THE UNITED 
ARAB EMIRATES (UAE), GERMANY, ITALY, UNITED KINGDOM, DJIBOUTI, AND THE 
U.S.  MOST PROJECTS OPEN FOR INTERNATIONAL COMPETITIVE BIDDING ARE 
FUNDED BY EITHER THE ETHIOPIAN GOVERNMENT OR MAJOR INTERNATIONAL 
FINANCIAL INSTITUTIONS IN WHICH THE UNITED STATES PARTICIPATES, SUCH AS 
THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) OF THE WORLD BANK, AND 
THE AFRICAN DEVELOPMENT FUND (AFDF) OF THE AFRICAN DEVELOPMENT BANK 
(AFDB).   
 
---------------------------------- 
VI. TRADE REGULATION AND STANDARDS 
---------------------------------- 
 
WITH THE NEW ECONOMIC POLICY, SALES TAX RATES ARE NOW 0 PERCENT, 5 
PERCENT, AND 12 PERCENT, WHILE THERE ARE 10 EXCISE TAX RATES (MINIMUM 0 
PERCENT AND MAXIMUM 200 PERCENT), ALL EQUALLY APPLICABLE TO DOMESTICALLY 
PRODUCED OR IMPORTED GOODS.   
 
THE MINISTRY OF TRADE HAS THE POWER TO RESTRICT AND/OR LIMIT IMPORTS AND 
EXPORTS.  THERE ARE RESTRICTIONS ON THE IMPORTATION OF PRODUCTS WHICH 
COMPETE WITH LOCALLY PRODUCED GOODS, PARTICULARLY IN AGRICULTURAL 
SECTORS.  AUTOMOBILE OR MOTOR VEHICLES IMPORTS REQUIRE APPROVAL FROM THE 
MINISTER OF TRANSPORT AND COMMUNICATIONS.   
 
ETHIOPIA DOES NOT OPERATE OR ALLOW DEVELOPMENT OF FREE-TRADE ZONES, 
ALTHOUGH A TRANSSHIPMENT PORT IS AVAILABLE IN DJIBOUTI. 
 
AVAILABILITY AND ACCESS TO FOREIGN CURRENCY IS LIMITED.  ALL EXCHANGES 
REQUIRE THE USE OF AGENTS OR BANKS APPROVED AND CONTROLLED BY THE 
NATIONAL BANK OF ETHIOPIA.  ALL PAYMENTS ABROAD REQUIRE EXCHANGE 
LICENSES ISSUED BY THE EXCHANGE CONTROLLER. 
 
MOST IMPORTS TO ETHIOPIA REQUIRE THREE CERTIFIED COPIES OF THE 
COMMERCIAL INVOICE, TWO DETAILED COPIES OF THE MANUFACTURERS INVOICE 
SHOWING CONTENTS AND PRODUCT SPECIFICATIONS, A BILL OF LADING OR AIR 
WAYBILL, AND A PRO-FORMA INVOICE.  CERTIFICATES OF ORIGIN ARE NOT 
REQUIRED UNLESS REQUESTED BY THE IMPORTER OR STIPULATED BY THE LINE OF 
CREDIT.   
 
IN 1992, ETHIOPIA BECAME ELIGIBLE TO PARTICIPATE IN THE GENERALIZED 
SYSTEM OF PREFERENCES (GSP). 
- 
 
------------------------ 
VII.  INVESTMENT CLIMATE 
------------------------ 
 
A)  THE TGE IS COMMITTED TO ENSURING THAT PRIVATE CAPITAL PLAYS A 
SIGNIFICANT ROLE IN THE ECONOMY.  TO THIS END, THE GOVERNMENT HAS 
ELIMINATED DISCRIMINATORY TAX, CREDIT, AND FOREIGN TRADE TREATMENT OF 
THE PRIVATE SECTOR, SIMPLIFIED ADMINISTRATIVE PROCEDURES, AND 
ESTABLISHED A CLEAR AND CONSISTENT SET OF RULES REGULATING BUSINESS 
ACTIVITIES.  BEGINNING IN 1992/93, THE GOVERNMENT HAS REVIEWED AND 
AMENDED THE COMMERCIAL CODE.  IN MAY 1992, THE TGE ISSUED A DETAILED 
PROCLAMATION ON INVESTMENT AND ESTABLISHED AN OFFICE OF INVESTMENT WHICH 
IS ACCOUNTABLE TO THE BOARD OF INVESTMENT.  THE OBJECTIVE OF THE 
INVESTMENT CODE IS TO DEVELOP, PROMOTE, AND ENCOURAGE PRIVATE DOMESTIC 
INVESTMENT IN GENERAL AND IN THE PRODUCTION SECTOR IN PARTICULAR, WITH A 
VIEW TO CONTRIBUTING TO THE ACCELERATED AND BALANCED GROWTH OF THE 
COUNTRY.  THE CODE ALSO SEEKS TO ENCOURAGE FOREIGN INVESTORS TO PLAY A 
ROLE IN REHABILITATING AND RESTRUCTURING ETHIOPIA AS WELL AS IN CREATING 
WIDER EMPLOYMENT OPPORTUNITIES.   
 
B)  AREAS FOR INVESTMENT HAVE BEEN CLASSIFIED AS INCLUDING: (1) THOSE 
RESERVED EXCLUSIVELY FOR THE GOVERNMENT, (2) THOSE WHERE GOVERNMENT 
PARTICIPATION COULD INCLUDE JOINT VENTURES WITH PRIVATE INVESTORS, AND 
(3) AREAS FULLY OPEN TO PRIVATE INVESTORS. 
 
AREAS EXCLUSIVELY RESERVED FOR THE GOVERNMENT INCLUDE DEFENSE 
INDUSTRIES; LARGE-SCALE PRODUCTION AND SUPPLY OF ELECTRICAL ENERGY; 
LARGE-SCALE AIR, RAIL, AND MARINE TRANSPORT SERVICES; POSTAL AND 
TELECOMMUNICATION SERVICES; AND IMPORT/EXPORT TRADE IN THOSE SELECTED 
PRODUCTS DEEMED CRUCIAL TO THE ECONOMIC LIFE OF THE COUNTRY. 
 
AREAS WHERE THE GOVERNMENT MAY CHOOSE TO ENTER INTO A PARTNERSHIP WITH 
PRIVATE INVESTORS INCLUDE LARGE-SCALE ENGINEERING AND METALLURGICAL 
INDUSTRIES; CAPITAL INTENSIVE OR TECHNOLOGY-RELATED INVESTMENT IN LARGE-
SCALE MINING AND ENERGY PRODUCTION; LARGE-SCALE MANUFACTURING OF 
PHARMACEUTICALS AND FERTILIZERS; AND INDUSTRIES THAT SUPPLY STRATEGIC 
RAW MATERIALS TO THE CHEMICAL INDUSTRY. 
 
AREAS FULLY OPEN TO PRIVATE INVESTORS INCLUDES SMALL OR MEDIUM-SCALE 
INVESTMENTS IN AIR, RAIL, AND MARINE TRANSPORT SERVICES, AS WELL AS IN 
THE PRODUCTION AND SUPPLY OF ELECTRICAL ENERGY UNDER REGULATIONS ISSUED 
BY THE APPROPRIATE GOVERNMENTAL AUTHORITY.  IN THE FINANCIAL SECTOR, NEW 
LAWS OPENING BANKING AND INSURANCE TO THE DOMESTIC PRIVATE SECTOR HAVE 
BEEN ALSO ISSUED. 
 
AN INVESTOR WHOSE INVESTMENT IS IN LINE WITH THE OBJECTIVES MENTIONED IN 
THE CODE AND WHO FULFILLS THE FOLLOWING CONDITIONS SHALL BE ISSUED AN 
INVESTMENT CERTIFICATE: 
 
(I)  IN MOST CASES, A FOREIGN INVESTOR MUST HAVE AN INVESTMENT CAPITAL 
OF NOT LESS THAN USD 500,000 AND MUST MAKE A CASH DEPOSIT OF NOT LESS 
THAN 25 PERCENT OF THE INITIAL INVESTMENT CAPITAL.  THE INVESTMENT 
CAPITAL MUST BE REGISTERED WITH ETHIOPIAN NATIONAL BANK (NBE).  HOWEVER, 
THE MINIMUM INITIAL INVESTMENT CAPITAL REQUIREMENTS MAY BE LOWERED ON 
THE BASIS OF DIRECTIVES ISSUED BY THE BOARD OF INVESTMENT IN AREAS OF 
SPECIAL INTEREST TECHNOLOGY OR TECHNOLOGICAL KNOW-HOW.  FOR DOMESTIC 
INVESTORS, SECURING AN INVESTMENT CERTIFICATE REQUIRES AN INVESTMENT 
CAPITAL OF NOT LESS THAN BIRR 250,000. 
 
(II)  INVESTORS SHALL BE ENTITLED TO THE LAND REQUIRED FOR THE 
INVESTMENT.  A LEASE AGREEMENT WOULD BE REQUIRED BETWEEN THOSE PARTIES 
HAVING THE LEGITIMATE INTEREST OR TITLE IN THE LAND AND THE INVESTOR, 
WITH THE LEASE SPECIFYING THE PURPOSE FOR WHICH THE LAND IS REQUIRED, 
THE PERIOD OF USE, THE AMOUNT OF RENT, AND OTHER RELEVANT MATTERS. 
 
INVESTORS ARE EXPECTED TO SUBMIT AN APPLICATION FORM TO THE INVESTMENT 
OFFICE OF THE NATIONAL/REGIONAL GOVERNMENTS, WHICH IN TURN, PRIOR TO 
MAKING A DECISION, MAY REQUEST THE APPROPRIATE GOVERNMENTAL AUTHORITY TO 
PROVIDE AN EXPERT OPINION IN WRITING WITHIN 15 DAYS.  AFTER APPROVAL, 
THE INVESTMENT OFFICE WOULD BE EXPECTED TO ISSUE AN INVESTMENT 
CERTIFICATE WITHIN 60 DAYS FOLLOWING RECEIPT OF THE APPLICATION.  AN 
ENTERPRISE SHALL BE ESTABLISHED AND REGISTERED IN ACCORDANCE WITH THE 
COMMERCIAL CODE, AND THE APPROPRIATE AUTHORITY SHALL ISSUE A CERTIFICATE 
OF REGISTRATION AND AN OPERATING LICENSE TO THE INVESTOR WITHIN 10 DAYS 
AND 15 DAYS RESPECTIVELY, FROM THE DATE OF COMPLETION BY THE INVESTOR OF 
THE REQUIRED FORMALITIES. 
 
ANY INVESTOR WHO HAS BEEN ISSUED AN INVESTMENT CERTIFICATE SHALL, IN 
PRINCIPLE, COMMENCE OPERATIONS WITHIN SIX MONTHS OF RECEIPT OF SUCH A 
CERTIFICATE, AND SHALL SUBMIT TO THE INVESTMENT OFFICE A PROGRESS REPORT 
ON THE ESTABLISHMENT OR EXPANSION PROCESS.  THE LICENSE IS TRANSFERABLE 
UPON PRIOR APPROVAL BY THE INVESTMENT OFFICE OF ETHIOPIA, AND SUBJECT TO 
CANCELLATION ON GROUNDS SPECIFIED IN THE CODE.  THE OFFICE MAY ALSO 
DEMAND THAT ALL FINANCIAL BENEFITS BE REFUNDED AND INCENTIVES AND 
PRIVILEGES COMPENSATED.  THE OFFICE MAY ALSO BLOCK ALL REMITTANCES OF 
CAPITAL, PROFITS, INTEREST, ALLOWANCES, AND OTHER PAYMENT RIGHTS.  AN 
APPEAL AGAINST THE DECISION OF THE OFFICE MAY BE SUBMITTED TO THE BOARD 
OF INVESTMENTS BY AN INVESTOR WITHIN TEN DAYS FROM THE RECEIPT OF SUCH A 
DECISION, AND THE BOARD, AFTER REVIEWING THE CASE, SHALL GIVE ITS 
DECISION, WHICH IS FINAL AND BINDING. 
 
C)  DISPUTES ARISING OUT OF FOREIGN INVESTMENT WHICH INVOLVE A FOREIGN 
INVESTOR OR THE STATE MAY BE SETTLED BY MEANS AGREEABLE TO BOTH PARTIES. 
 
D)  INVESTORS IN SPECIFIC AREAS MAY BE ELIGIBLE FOR INVESTMENT 
INCENTIVES.  THESE AREAS INCLUDE AGRICULTURAL DEVELOPMENT AND AGRO-
PROCESSING; AGRICULTURAL PRODUCTION; MANUFACTURING OF EQUIPMENT, 
MACHINERY, SPARE PARTS, COMPONENTS AND SUPPLIES, VEHICLE BODIES, OTHER 
PRODUCTS AND ASSEMBLY PLANTS, AND PUBLISHING OR PRINTED GOODS; LARGE-
SCALE CAPITAL ROAD AND BUILDING CONSTRUCTION; WATERWORKS SUCH AS WELL 
DRILLING, DAM CONSTRUCTION, AND OTHER RELATED WORKS; RURAL 
TRANSPORTATION FACILITIES; AND THE PURCHASE OF SPRAYING MACHINERY, 
TRUCKS FITTED WITH REFRIGERATION FACILITIES, OR OTHER EQUIPMENT FOR 
SUPPORT SERVICES. 
 
AN INVESTOR IN ONE OF THE THESE SPECIFIED AREAS WHO MEETS THE CONDITIONS 
FOR A QUALIFYING INVESTMENT CERTIFICATE, AND WHO PRODUCES EVIDENCE 
SHOWING THE EXACT AMOUNT OF THE CAPITAL INVESTED WITHIN 30 DAYS OF 
COMMENCEMENT OF OPERATION SHALL QUALIFY FOR THE INCENTIVES.  SUBJECT TO 
THE APPROVAL OF THE BOARD OF INVESTMENT, THE INITIAL CAPITAL REQUIRED 
FOR INVESTMENT IN AREAS OF PRIORITY OR IN TECHNOLOGY MAY BE LOWERED AS 
AN INVESTMENT INCENTIVE.  THE SPECIFIC INCENTIVES FOR DOMESTIC AND 
FOREIGN INVESTOR AS WELL AS EXISTING ENTERPRISES AND EXPANSIONS INCLUDE 
EXEMPTION FROM IMPORT DUTIES AND TAXES FOR IMPORTS OF CAPITAL GOODS AND 
EQUIPMENT OR SPARE PARTS OF UP TO 15 PERCENT OF THE VALUE OF THE CAPITAL 
INVESTED (PROVIDED THAT THE IMPORTS ARE NOT AVAILABLE IN THE COUNTRY IN 
COMPARABLE QUALITY, QUANTITY, AND PRICE); EXEMPTION FROM THE INCOME TAX 
FOR THREE YEARS FROM THE DATE OF COMMENCEMENT OF PRODUCTION OR OPERATION 
(WITH A POSSIBLE FURTHER EXEMPTION FOR TWO ADDITIONAL YEARS); FOR 
ETHIOPIAN PRODUCTS OR SERVICES THAT ARE DESTINED FOR EXPORT, EXEMPTION 
FROM EXPORT DUTIES AND TAXES IF APPROVED BY THE BOARD OF THE INVESTMENT 
OFFICE; AND EXEMPTION FROM TAX ON ANY REMITTANCE FROM ANY PROCEEDS FROM 
THE SALE OR TRANSFER OF SHARES IN PART OR ALL OF AN ENTERPRISE BY A 
DOMESTIC INVESTOR. 
 
E)  NO ASSETS OF A DOMESTIC INVESTOR OR A FOREIGN INVESTOR, ENTERPRISE, 
OR EXPANSION MAY BE NATIONALIZED WHOLLY OR PARTLY, EXCEPT IN ACCORDANCE 
WITH THE REGULATIONS OF THE GOVERNMENT AND UPON PAYMENT OF ADEQUATE 
COMPENSATION.  SUCH ASSETS MAY NOT BE SEIZED, IMPOUNDED, OR DISPOSED OF 
EXCEPT IN ACCORDANCE WITH A COURT ORDER. 
 
F)  INVESTMENT DISPUTES:  NO INVESTMENT DISPUTES HAVE BEEN REPORTED 
SINCE THE ESTABLISHMENT OF THE TRANSITIONAL GOVERNMENT OF ETHIOPIA IN 
1991.  ETHIOPIA SIGNED A MEMBERSHIP AGREEMENT WITH THE INTERNATIONAL 
CENTER FOR THE SETTLEMENT OF INVESTMENT DISPUTES (ICSID) AND THE COUNCIL 
OF MINISTERS IS IN PROCESS OF RATIFYING THIS AGREEMENT. 
 
G)  BILATERAL INVESTMENT AGREEMENTS:  ETHIOPIA HAS ESTABLISHED BILATERAL 
INVESTMENT PROTECTION AGREEMENTS AND TREATIES WITH ERITREA, ITALY, 
GREECE, ISRAEL, SWITZERLAND, AND GERMANY. 
 
H)  OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) PROGRAM:  OPIC HAS 
PROVIDED POLITICAL RISK INSURANCE FOR A MAJOR PUBLIC WORKS 
INFRASTRUCTURE PROJECT FOR THE FIRST TIME IN EARLY 1995.  A SECOND 
APPLICATION FOR COVERAGE BY AN AMERICAN FIRM HAS JUST BEEN RECEIVED AS 
WELL.  
 
I)  LABOR:  LABOR IS AVAILABLE AND CHEAP IN ETHIOPIA, ALTHOUGH SKILLED 
MANPOWER IN HIGH TECHNOLOGY FIELDS IS SCARCE.  THE GOVERNMENT ISSUED A 
NEW LABOR LAW IN JANUARY 1993, WHICH HAS AS ITS OBJECTIVES: (1) TO 
ESTABLISH RULES GOVERNING WORKER-EMPLOYER RELATIONS ACCORDING TO BASIC 
PRINCIPLES OF RIGHTS AND OBLIGATIONS; AND (2) TO GUARANTEE THE RIGHT OF 
WORKERS AND EMPLOYERS TO FORM THEIR RESPECTIVE ASSOCIATIONS AND TO 
GUARANTEE THEIR RIGHT TO COLLECTIVE BARGAINING. 
 
J)  FOREIGN TRADE ZONES/FREE PORTS:  THERE ARE NO AREAS DESIGNATED AS 
FOREIGN TRADE ZONES AND/OR FREE PORTS IN ETHIOPIA, ALTHOUGH THE 
ETHIOPIAN GOVERNMENT BENEFITS FROM ACCESS TO THE ERITREAN FREE PORT OF 
ASSAB.  IN ADDITION, ETHIOPIA LARGELY TOLERATES SMALL-SCALE TRADE OF 
CONTRABAND (SUCH AS COFFEE, KHAT, AND FRUITS AND VEGETABLES BEING TAKEN 
OUT OF THE COUNTRY, AND CIGARETTES, ALCOHOL, TEXTILES, ELECTRONICS, AND 
OTHER CONSUMER GOODS BEING SMUGGLED IN) IN THE EAST AND SOUTHEAST OF THE 
COUNTRY. 
 
K)  CAPITAL OUTFLOW POLICY:  PRIVATE ETHIOPIAN CITIZENS ARE ALLOWED TO 
TAKE MONEY OUT OF THE COUNTRY ONLY IN SPECIAL CIRCUMSTANCES OF 
DEMONSTRATED NEED (I.E., MEDICAL TREATMENT OVERSEAS, BUSINESS TRAVEL 
ABROAD).  THE GOVERNMENT HAS ESTABLISHED A RETENTION SCHEME FOR 
EXPORTERS IN WHICH EXPORTERS RETAIN 20 PERCENT OF THE EXPORT EARNING IN 
HARD CURRENCY AND USE IT FOR BUSINESS TRAVEL ABROAD TO EXPLORE 
ADDITIONAL MARKETS OR FOR OTHER SIMILAR PURPOSES. 
 
L)  MAJOR FOREIGN INVESTORS:  ACCORDING TO THE INVESTMENT OFFICE OF 
ETHIOPIA, AS OF JUNE 1995, THE OFFICE HAD LICENSED 1,400 INVESTORS (BOTH 
LOCAL AND FOREIGN) WITH A TOTAL VALUE OF ABOUT USD 2 BILLION.  OF THIS 
FIGURE, FOREIGN INVESTORS GIVEN LICENSES COMPRISE ABOUT 10 PERCENT, AND 
HAVE INTRODUCED CAPITAL ESTIMATED AT USD 65 MILLION.  ALTHOUGH A 
BREAKDOWN IS NOT AVAILABLE, CURRENTLY AMERICAN DIRECT INVESTMENT IN 
ETHIOPIA IS ESTIMATED AT ABOUT USD 8 MILLION.  OTHER MAJOR FOREIGN 
INVESTORS INCLUDE:  SAUDI ARABIA, SOUTH KOREA, KUWAIT, AND ITALY.  THE 
LARGEST U.S. COMPANIES WITH INVESTMENTS IN ETHIOPIA ARE: 
 
-- MOBIL OIL (EAST AFRICA) LTD. 
 
-- AT&T 
 
-- BOEING 
 
-- CANYON RESOURCES 
 
-- FEDERAL EXPRESS CORPORATION 
 
- 
-- CARGILL INC. 
 
-- CROWN CORK & SEAL CO. 
 
-- AVIS RENT-A-CAR 
 
-- DHL INTERNATIONAL 
 
-- CATERPILLAR TRACTOR CO. 
 
-- JEEP CORPORATION 
 
-- F.C. SCHAFFER AND ASSOC., INC. 
 
-- XEROX CORPORATION 
 
-- JOHN DEERE & COMPANY 
 
-- IBM 
 
-- AT&T GLOBAL INFORMATION SYSTEMS 
 
-- MACK TRUCK 
 
-- HUNT OIL COMPANY 
 
-- GENERAL MOTORS 
 
-- KENWORTH 
 
-- PRATT AND WHITNEY 
 
-- PIONEER HI-BRED SEEDS, INC. 
 
-- COCA-COLA 
 
-- PEPSI-COLA 
 
-- NAVISTAR TRUCKS 
 
M)  OTHERS:  ETHIOPIA'S PREVIOUS ECONOMIC POLICIES HAVE RELIED ON STATE-
OWNED ENTERPRISES, AND FOR MANY YEARS ACTIVELY DISCOURAGED PRIVATE 
INVESTMENT INITIATIVES.  THE INVESTMENT PROCLAMATION OF 1992 RESTRICTS 
PRIVATE INVESTMENT IN SOME SECTORS TO JOINT VENTURES WITH GOVERNMENT.  
GIVEN THE WORLDWIDE COMPETITION TO ATTRACT INVESTORS AND THE COMPETITION 
OF ETHIOPIA'S NEIGHBORS IN PARTICULAR, ETHIOPIA'S INVESTMENT LAW NEEDS 
TO BE MADE MORE ATTRACTIVE. 
 
---------------------------------- 
VIII.  TRADE AND PROJECT FINANCING 
---------------------------------- 
 
BANKING AND INSURANCE INSTITUTIONS WERE NATIONALIZED IN 1975.  THE 
BANKING PROCLAMATION OF 1976 GREATLY ENHANCED THE AUTHORITY OF THE 
NATIONAL BANK OF ETHIOPIA (NBE) BY GIVING IT COMPLETE CONTROL OF THE 
FINANCIAL SYSTEM.   
 
IN LINE OF THE NEW ECONOMIC POLICY, THE TGE ISSUED PROCLAMATIONS 
ALLOWING FOR THE ESTABLISHMENT OF PRIVATE BANK AND INSURANCE COMPANIES 
ON JANUARY 30, 1994.  FOREIGN OWNERSHIP OF SUCH COMPANIES IS NOT 
ALLOWED.  ACCORDING THE PROCLAMATIONS, THE NATIONAL BANK OF ETHIOPIA 
WILL CONTINUE TO EXIST AS AN AUTONOMOUS INSTITUTION.  ITS PURPOSE, BY 
WHICH IT SHALL BE GUIDED IN ALL ITS ACTIONS, IS TO FOSTER MONETARY 
STABILITY, A SOUND FINANCIAL SYSTEM AND SUCH OTHER CREDIT AND EXCHANGE 
CONDITIONS AS ARE CONDUCIVE TO THE BALANCED GROWTH OF THE ECONOMY.  THE 
BANK MAY ENGAGE WITH BANKS AND OTHER FINANCIAL INSTITUTIONS IN 
TRANSACTIONS INVOLVING THE DISCOUNT, REDISCOUNT, PURCHASE, OR SALE, AS 
THE CASE MAY BE, OF DULY SIGNED AND ENDORSED BILLS OF EXCHANGE, 
PROMISSORY NOTES, ACCEPTANCES, AND OTHER CREDIT INSTRUMENTS WITH 
MATURITIES OF NOT MORE THAN 180 DAYS FROM THE DATE OF THEIR DISCOUNT, 
REDISCOUNT, OR ACQUISITION BY THE BANK.  THE BANK MAY BUY, SELL, AND 
HOLD FOREIGN CURRENCY NOTES AND COINS AND SUCH DOCUMENTS AND 
INSTRUMENTS, INCLUDING TELEGRAPHIC TRANSFERS, AS ARE CUSTOMARILY 
EMPLOYED IN INTERNATIONAL PAYMENTS OR TRANSFERS OF FUNDS. 
 
ALL TRANSACTIONS IN FOREIGN EXCHANGE MUST BE CARRIED OUT THROUGH 
AUTHORIZED DEALERS UNDER THE CONTROL OF THE NATIONAL BANK.  ALL PAYMENTS 
ABROAD REQUIRE LICENSES ISSUED BY THE EXCHANGE CONTROLLER.  ALL EXPORTS 
ARE LICENSED BY THE EXCHANGE CONTROLLER TO ENSURE THE SURRENDER OF 
FOREIGN EXCHANGE PROCEEDS, AND SHIPMENTS REQUIRE PERMITS ISSUED BY THAT 
OFFICE. 
 
THE ETHIOPIAN GOVERNMENT RELIES ON GRANTS AND EXTERNAL BORROWING ON 
HIGHLY CONCESSIONARY TERMS TO FINANCE THE EXTERNAL CURRENT ACCOUNT 
DEFICIT; THIS WILL NECESSITATE EFFORTS TO STRENGTHEN THE GOVERNMENT'S 
CAPACITY TO MEET DONORS' DOCUMENTATION AND OTHER REQUIREMENTS IN ORDER 
TO ENSURE TIMELY AND EXPEDITIOUS DISBURSEMENTS.  AN EFFORT WILL ALSO BE 
MADE TO IMPROVE DEBT MANAGEMENT BY STRENGTHENING DEBT MONITORING AND 
ANALYTIC CAPABILITY. 
 
ETHIOPIA IS CURRENTLY "OFF COVER" FOR THE SERVICES OF THE EXPORT-IMPORT 
BANK.  FURTHER MACROECONOMIC PROGRESS MAY EVENTUALLY RESULT IN HIGHER 
CREDIT RISK RATINGS, LEADING TO ACCESS TO EXIM BANK FINANCING. 
 
CURRENTLY, THE FOLLOWING ARE BANKS WITH CORRESPONDENT U.S. BANKING 
ARRANGEMENTS: 
 
THE COMMERCIAL BANK OF ETHIOPIA 
P.O. BOX 255 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-515-004 
FAX: 251-1-514-522 
 
AWASH INTERNATIONAL BANK S.C. 
P.O. BOX 12638 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-612-919 
FAX: 251-1-653-685 
 
IT IS LIKELY THAT TWO MORE PRIVATE BANKS WILL SOON OPEN WHICH WOULD SEEK 
CORRESPONDENT BANKING RELATIONSHIPS. 
 
-------------------- 
IX.  BUSINESS TRAVEL  
-------------------- 
 
ETHIOPIAN HOLIDAYS - LATE 1995:  AUGUST 8 (BIRTHDAY OF MOHAMMED -LUNAR 
HOLIDAY SUBJECT TO CHANGE), SEPTEMBER 11 (ETHIOPIAN NEW YEAR), AND 
SEPTEMBER 27 (MESKEL). 
 
EARLY 1996:  JANUARY 7 (ETHIOPIAN CHRISTMAS), JANUARY 19 (ETHIOPIAN 
EPIPHANY), MARCH 2 (VICTORY OF ADWA), MARCH  (ID AL-FITER OR RAMADAN - 
LUNAR HOLIDAY SUBJECT TO CHANGE), APRIL 6 (VICTORY DAY), APRIL 15 (GOOD 
FRIDAY), APRIL 17 (EASTER SUNDAY), MAY 1 (INTERNATIONAL LABOR DAY), MAY 
(ID AL-ADHA OR AREFA - LUNAR HOLIDAY SUBJECT TO CHANGE), AND MAY 28 
(DOWNFALL OF THE DERG).  
 
BUSINESS INFRASTRUCTURE:  ETHIOPIA'S SURFACE TRANSPORT INFRASTRUCTURE, 
PRIMARILY CONSISTING OF ROADS, IS INADEQUATE AND UNDERDEVELOPED.  THE 
COUNTRY'S MAIN ROUTE, THE ADDIS ABABA-ASSAB ROAD, IS DETERIORATING AND 
COULD BECOME A BOTTLENECK TO THE MOVEMENT OF GOODS.  ONLY 21 PERCENT OF 
THE HIGHWAY NETWORK IS PAVED, WITH FEW INTERCONNECTING LINKS BETWEEN 
ADJACENT REGIONS, AND A GROSSLY INSUFFICIENT FEEDER ROAD NETWORK.  AS A 
RESULT, LARGE PARTS OF ETHIOPIA REMAIN ISOLATED AND LARGELY DEPENDENT ON 
PACK ANIMALS OR HUMAN CARRIERS FOR TRANSPORT.  LIMITED RAIL SERVICE 
LINKS ADDIS ABABA WITH DJIBOUTI VIA DIRE DAWA.  PASSENGER AND CARGO AIR 
TRANSPORT SERVICE IS PROVIDED BY ETHIOPIAN AIRLINES.  ITS INTERNATIONAL 
FLIGHTS LINK THE COUNTRY WITH 43 CITIES ON THREE CONTINENTS, AND ITS 
DOMESTIC SERVICE LINKS 43 AIRFIELDS AND 21 LANDING STRIPS WITH ADDIS 
ABABA. 
 
THERE ARE MORE THAN 80 MAJOR LANGUAGE GROUPS IN ETHIOPIA, ALTHOUGH THE 
NATIONAL LANGUAGE, AMHARIC, IS SPOKEN THROUGHOUT THE COUNTRY.  ORMINYA 
AND TIGRINYA ARE OTHER WIDELY-USED ETHIOPIAN LANGUAGES.  ENGLISH IS THE 
SECOND OFFICIAL LANGUAGE AND IS UNDERSTOOD IN MOST TOWNS AND AMONG THE 
EDUCATED SECTOR OF THE POPULATION. 
 
INTERNALLY, DIRECT MICROWAVE TELEPHONE LINKS ARE AVAILABLE TO MOST 
REGIONAL CITIES; A NUMBER OF SMALLER TOWNS ALSO HAVE AUTOMATIC TELEPHONE 
SERVICES. INTERNATIONAL COMMUNICATIONS LINKS ARE MAINTAINED THROUGH TWO 
SATELLITE EARTH STATIONS, PROVIDING TELEPHONE, TELEX, AND TELEVISION 
SERVICES.  DIGITAL TELEPHONE EXCHANGES HAVE ALSO BEEN INSTALLED 
RECENTLY.  GENERALLY, TELECOMMUNICATION SYSTEMS IN ETHIOPIA ARE GOOD BY 
AFRICAN STANDARDS. 
 
THERE IS A SHORTAGE OF HOUSING IN ETHIOPIA.  BUSINESS TRAVELLERS 
GENERALLY SEEK LODGING IN HOTELS IN LARGER CITIES.   
 
PROPHYLAXIS AGAINST MALARIA (NOT NECESSARY IN ADDIS ABABA DUE TO ITS 
ELEVATION) IS ADVISABLE IF TRIPS ARE PLANNED TO LOWER ELEVATIONS, 
INCLUDING DIRE DAWA.  THROUGHOUT ETHIOPIA, IT IS ESSENTIAL TO DRINK ONLY 
BOILED, FILTERED WATER, OR BOTTLED MINERAL WATERS, WHICH ARE WIDELY 
AVAILABLE. 
 
ETHIOPIA'S MAIN DISH IS CALLED "WOT", WHICH IS MEAT OR VEGETABLES COOKED 
IN A HOT, SPICY SAUCE.  THIS IS TRADITIONALLY EATEN WITH A FLAT, SPONGY 
BREAD CALLED "INJERA".  IN LARGER HOTELS AND RESTAURANTS MENUS ARE TO 
INTERNATIONAL STANDARDS.  IN ADDIS ABABA THERE ARE A NUMBER OF GOOD 
RESTAURANTS SERVING CONTINENTAL, ITALIAN, FRENCH, GREEK, ARMENIAN, 
MIDDLE EASTERN, INDIAN, FRENCH, AND CHINESE FOOD. 
 
------------- 
X. APPENDICES 
------------- 
 
A.  COUNTRY DATA: 
 
    POPULATION - 55 MILLION (APPROX.) 
 
    POPULATION GROWTH RATE - APPROX. 3.0 PERCENT PER YEAR 
 
    RELIGIONS - CHRISTIAN AND MUSLIM 
 
    GOVERNMENT SYSTEM -  IN SEPTEMBER 1995, THE TRANSITIONAL GOVERNMENT 
OF ETHIOPIA WILL TURN OVER POWER TO A DEMOCRATICALLY-ELECTED 
PARLIAMENTARY GOVERNMENT WITH REGIONAL GOVERNMENTS BASED UPON ETHNICITY. 
 
 
    LANGUAGES - AMHARIC, ENGLISH, OROMINYA, AND TIGRINYA 
 
    WORK WEEK - MONDAY THROUGH FRIDAY 
 
B.  DOMESTIC ECONOMY (USD MILLIONS UNLESS NOTED): 
 
                          1994           1995        1996 
GDP                    3,225.4        3,435.1     3,624.1 
GDP GROWTH RATE            6.6            1.4         5.5 
GDP PER CAPITA (USD)      60.3           62.4        65.2 
GOV. SPENDING  
  AS PERCENT OF GDP       33.8           38.7        39.0 
INFLATION (PERCENT)       24.2           26.4        30.0 
UNEMPLOYMENT (PERCENT)    37.0           43.5        44.0 
 
FOREIGN EXCHANGE  
  RESERVES               200.0          191.0       303.8 
AVERAGE EXCHANGE            
 RATE FOR USD 1.00         5.0            5.7         6.3  
FOREIGN DEBT           1,715.2        2,644.9     3,116.6 
DEBT SERVICE  
 RATIO                    80.0           71.5        56.9 
PRICE INDEX  
 (1963=100)              845.3          909.5       985.0 
U.S. ECONOMIC  
  ASSISTANCE             100.0          112.0         N/A 
U.S. MILITARY  
  ASSISTANCE               N/A            N/A         N/A  
 
C.  TRADE: 
 
                          1994           1995        1996      
 
TOTAL EXPORTS            228.3          312.0       350.0 
             
TOTAL IMPORTS            423.2          652.0       750.0 
 
BALANCE OF TRADE        -194.9         -340.0      -400.0 
 
U.S. EXPORTS  
  TO ETHIOPIA            136.6          143.1       160.0              
U.S. IMPORTS  
  FROM ETHIOPIA           22.1           34.1        45.0 
 
U.S. SHARE OF  
  EXPORTS                  9.1           16.1        10.0    
U.S. SHARE  
  OF IMPORTS              32.3           30.3        33.0 
 
 
1995 - PROVISIONAL ESTIMATES 
 
1996 - PROJECTIONS 
 
CALCULATIONS ARE BASED ON THE CURRENT EXCHANGE RATE (ONE US DOLLAR 
EQUALS 6.25 ETHIOPIAN BIRR) 
 
SOURCE:  ETHIOPIAN GOVERNMENT, IMF PUBLICATIONS, WORLD BANK, U.S. 
EMBASSY, AND USAID 
 
 
D.  U.S. AND COUNTRY CONTACTS: 
  
1.  COUNTRY GOVERNMENT AGENCIES: 
 
MINISTRY OF AGRICULTURE 
P.O. BOX 63247 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-518-507 
FAX: 251-1-513-042 
 
MINISTRY OF CULTURE AND SPORTS 
P.O. BOX 1907 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-517-020 
 
MINISTRY OF EDUCATION 
P.O. BOX 1367 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-553-133 
TLX: 21435 MOEAA 
 
MINISTRY OF EXTERNAL ECONOMIC COOPERATION 
P.O. BOX 2428 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-118-703 
FAX: 251-1-517-988 
 
MINISTRY OF FINANCE 
P.O. BOX 1905 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-552-400 
FAX: 251-1-551-355 
 
MINISTRY OF HEALTH 
P.O. BOX 1234 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-517-011 
FAX: 251-1-519-366 
 
- 
MINISTRY OF INDUSTRY 
P.O. BOX 704 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-518-025 
FAX: 251-1-515-411 
 
MINISTRY OF LABOR AND SOCIAL AFFAIRS 
P.O. BOX 2056 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-517-080 
 
MINISTRY OF MINES AND ENERGY  
P.O. BOX 486 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-518-250 
FAX: 251-1-515-788 
 
MINISTRY OF NATURAL RESOURCES 
DEVELOPMENT AND ENVIRONMENTAL PROTECTION 
P.O. BOX 1034 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-513-906 
FAX: 251-1-513-042 
 
MINISTRY OF PLANNING AND ECONOMIC DEVELOPMENT 
P.O. BOX 1037 
ADDIS ABABA, ETHIOPIA  
TEL: 251-1-552-800 
FAX: 251-1-553-844 
 
COFFEE AND TEA AUTHORITY   
P.O. BOX 3222 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-518-088 
FAX: 251-1-517-933 
 
MINISTRY OF TRADE 
P.O. BOX 2559 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-511-066 
FAX: 251-1-514-288 
 
MINISTRY OF TRANSPORT AND COMMUNICATIONS 
P.O. BOX 1238 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-516-166 
FAX: 251-1-515-665     
 
MINISTRY OF WORKS AND URBAN DEVELOPMENT 
P.O. BOX 5608 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-514-655 
FAX: 251-1-512-000 
 
 
2.  COUNTRY TRADE ASSOCIATIONS: 
 
ETHIOPIAN CHAMBER OF COMMERCE 
P.O. BOX 517 
TEL: 251-1-518-240 
FAX: 251-1-517-699 
ADDIS ABABA, ETHIOPIA 
 
ADDIS ABABA CHAMBER OF COMMERCE 
P.O. BOX 2458 
TEL: 251-1-518-055 
FAX: 251-1-511-479 
ADDIS ABABA, ETHIOPIA 
 
U.S. ETHIOPIA TRADE & ECONOMIC COUNCIL 
P.O. BOX 9438 
ADDIS ABABA, ETHIOPIA 
TEL: 251-1-510-168, 150-040 
FAX: 251-1-510-200 
 
(AND) 
 
222 W. ONTARIO STREET #502 
CHICAGO, IL 60610-3695 
TEL: (312)-787-2716 
FAX: (312)-787-2680 
 
 
3.  COUNTRY MARKET RESEARCH FIRMS: 
 
TRADE & DEVELOPMENT SERVICES INTERNATIONAL 
(TDSI) 
P.O. BOX 22508 
TEL: 251-1-510-100 
FAX: 251-1-514-800 
ADDIS ABABA, ETHIOPIA 
 
D.M. BUSINESS ENTERPRISE 
P.O. BOX 4043 
TEL: 251-1-183-505 
FAX: 251-1-551-276 
ADDIS ABABA, ETHIOPIA 
 
ADDIS RESOURCES DEVELOPMENT PLC 
(ARDCO) 
P.O. BOX 4360 
TEL: 251-1-518-385 
FAX: 251-1-517-877 
ADDIS ABABA, ETHIOPIA 
 
 
E.  U.S. EMBASSY TRADE-RELATED CONTACTS: 
 
THOMAS C. NIBLOCK 
POL/ECON SECTION CHIEF 
AMERICAN EMBASSY 
P.O. BOX 1014 
TEL: 251-1-550-666/550-399 
FAX: 251-1-550-174/552-191 
ADDIS ABABA, ETHIOPIA 
 
ERIC P. WHITAKER 
ECONOMIC OFFICER 
 
BEYENE MOGES 
COMMERCIAL SPECIALIST 
TEL: 251-1-551-944 
 
 
F.  WASHINGTON-BASED USG COUNTRY CONTACTS: 
 
CHANDRA WATKINS 
INTERNATIONAL TRADE ADMINISTRATION 
IEP/OA/ANESA 
DESK OFFICER FOR ETHIOPIA 
DEPARTMENT OF COMMERCE 
WASHINGTON, DC 20230 
TEL:  (202) 377-4564 
FAX:  (202) 482-5198 
 
GEORGE W. COLVIN, JR. 
COUNTRY OFFICER FOR ETHIOPIA AND ERITREA 
OFFICE OF EAST AFRICAN AFFAIRS (AF/E) 
DEPARTMENT OF STATE 
WASHINGTON, DC 20520 
TEL:  (202) 647-8852 
FAX:  (202) 647-0810 
 
 
G.  MARKET RESEARCH: 
 
POST HAS RECENTLY CONDUCTED MARKET RESEARCH ON THE FOLLOWING MAJOR 
AGRICULTURAL PRODUCTS:  COTTON, TEA, COFFEE, HIDES, SKINS, LIVE ANIMALS, 
PULSES & OILSEEDS, TOBACCO, FRUITS, VEGETABLES, AND FLOWERS.    
 
 
H.  TRADE EVENT SCHEDULE: 
 
TRADEFAIR - ETHIOPIA - '95 
ADDIS ABABA, ETHIOPIA 
OCTOBER 26 - NOVEMBER 3, 1995 
(A PLANNED EXHIBITION OF AMERICAN GOODS AND SERVICES) 
 
ADDIS CHAMBER OF COMMERCE TRADE FAIR '96 
ADDIS ABABA, ETHIOPIA 
APRIL 1996 
(THE SECOND INTERNATIONAL TRADE FAIR) 
 
XI.  THIS FULFILLS A REQUIREMENT IN THE POST REPORTING PLAN.   
 
XII.  ASMARA MINIMIZE CONSIDERED.
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