PORTFOLIO

Overview of the sector

Ethiopia's robust trading sector serves as a cornerstone of the nation's economic growth. Facilitating the exchange of a diverse range of goods and services, both domestically and internationally, this sector generates significant employment opportunities and contributes meaningfully to GDP. Ethiopia's strategic geographic location, a gateway to the Horn of Africa and beyond, further enhances its attractiveness as a trade hub.

The Ethiopian trading sector fosters a dynamic environment for businesses to thrive. It connects producers with consumers efficiently, ensuring a smooth flow of goods and services within the country. Additionally, exports play a crucial role in generating foreign exchange, fostering economic stability.

The Ethiopian Investment Holdings facilitates investment opportunities within this flourishing trade sector. We work alongside esteemed subsidiaries like the Ethiopian Tourist Trading Enterprise (ETTE), Ethiopian Trading and Business Corporation (ETBC), and Ethiopian Agricultural Business Corporation (EABC) to create a seamless investment experience.

Company description 

The Ethiopian Tourist Trading Enterprise (ETTE) is dedicated to enhancing the country's image through three complementary missions: catering duty-free goods to government envoys and international institutions at its shops including the one located in Addis Ababa international airport, the busiest airport in Africa,; selling various goods subject to import duties, targeting both local and international customers; and showcasing Ethiopian handicrafts and art to foreign visitors. With a commitment to competitive and profitable operations, ETTE seeks to offer quality products and efficient services while becoming a leading tourist trading enterprise in Africa by 2025. In addition to cultural promotion, ETTE contributes to foreign currency generation and job creation. Ethiopia's growing diplomatic presence and capacity for hosting international events further drive the expansion of airport business travel services and downtown duty-free trade markets.

Overview of business units 

The Ethiopian Tourist and Trading Enterprise currently offers 3 types of trading services: 

• Trading of various duty-free products through its duty free merchandize trade to tourists and diplomatic community members 

• Duty paid merchandize trade 

• Production of handicraft and souvenir items that it sells across its outlets and shops 

ETTE Audit report available here
 

 Company description 

 The Ethiopian Agricultural Business Corporation (EABC) is a key player in Ethiopia's agricultural sector, driving innovation and sustainable growth. Established to enhance productivity and promote agribusiness, EABC contributes significantly to economic transformation, food security, and rural livelihoods. Leveraging its network and expertise, EABC fosters partnerships across the value chain for inclusive development. With a focus on modernization, increased yields, and value addition, EABC paves the way for a resilient agricultural sector. Additionally, EABC holds a comparative advantage in seed and natural gum production, with superior quality and profit margins. Open to investment and collaboration, EABC aims to expand its impact through joint ventures and partnership with the private sector, emphasizing innovation and job creation.

Overview of business units 

EABC has four business units:

· Agricultural input supply,

· Seed supply, Natural Gum and forest product,

· Agricultural Equipment’s, mechanization and Engineering, 

· Transport administration and maintenance 

 EABC 2022 Audit report available here.
 

Company description 

The Ethiopian Trading and Business Corporation (ETBC)formed through the merger of key entities, including the Ethiopian Grain Trade Enterprise, Ethiopian Fruits and Vegetable Marketing S.C., Ethiopian Trading Enterprise, and Procurement Services Enterprise, the Ethiopian Trading and Business Corporation (ETBC) became part of Ethiopian Investment Holdings (EIH) in December 2022.

With a vision to become a leading supplier of affordable consumer products by 2030, ETBC aims to stabilize local markets through the supply of selected agricultural and industrial consumer commodities from both local and overseas suppliers.

Overview of business units 

The Ethiopian Trading and Business Corporation has 4 business units: 

• Grain and Coffee Business Unit 

• Consumer Products Business Unit 

• Fruit and Vegetable Business Unit 

• Procurement and Consultancy Business Unit 

Overview of the sector

 
The Ethiopian Energy and Connectivity sector plays a pivotal role in driving the nation's economic development and social progress. With a focus on expanding access to electricity, improving connectivity, and fostering innovation, Ethiopia is making significant strides in these areas. The energy sector is undergoing rapid transformation, with investments in renewable energy sources such as hydroelectric, solar, and wind power. These initiatives aim to enhance energy security, promote sustainability, and meet the growing demand for electricity across the country. In parallel, the connectivity sector is witnessing advancements in telecommunications, internet infrastructure, and digital services, empowering individuals, businesses, and communities. Together, these efforts are laying the foundation for inclusive growth, technological innovation, and improved quality of life for all Ethiopians.

Company description 

Established in 1894, Ethio Telecom is Ethiopia's leading telecommunications provider with a rich history spanning over a century, instrumental in shaping the nation's communication landscape. Continuously expanding its infrastructure and service offerings, Ethio Telecom now provides a wide range of services, including voice, data, internet, and mobile banking, to both residential and business customers across urban and rural areas. Committed to reliability and affordability, Ethio Telecom drives connectivity and economic growth nationwide. 

Currently, Ethio telecom offers 5G, 4G and LTE services and is actively expanding its coverage. Ethio telecom has 71.7 million mobile voice subscribers and more than 36.4 million mobile broadband subscribers with a telecom coverage reaching 99.1% of the Ethiopian population. Moreover Ethio telecom is now a pioneer in digital finance in Ethiopia mobilizing 43 million subscribers within its two years of operation.

Ethio Telecom Audit Reports available here

 Company description 

Ethiopian Electric Utility (EEU) plays a crucial role in providing reliable and affordable electricity services. Managing Ethiopia's electricity generation, transmission, and distribution, EEU leverages modern technologies to power households, businesses, and industries, contributing to socio-economic development and energy sustainability efforts. 

Ethiopian Electric Utility (EEU) operates across 13 regions and 26 districts, providing electricity to over 8,000 towns and villages nationwide. With a robust infrastructure and efficient operations, EEU ensures reliable electricity supply to industrial, commercial, and residential customers throughout Ethiopia.

Overview of business units 

EEU is organized as 3 business units: 

• Distribution system 

• Automation, tech & energy management 

• Regional units (11 regions) 

EEU Audit Reports available here

Company description 

Established in 1970, the Ethiopian Petroleum Supply Enterprise (EPSE) oversees the import, storage, distribution, and wholesale of petroleum products, contributing to Ethiopia's energy security and economic development. Through strategic partnerships and infrastructure, EPSE ensures efficient distribution while maintaining quality and sustainability standards. 

Ethiopian Petroleum Supply Enterprise (EPSE) is the sole importer and holds strategic reserve of petroleum products for Ethiopia. EPSE has 104 storage tanks of various sizes in 13 strategic locations across the country with a total capacity of 400,600 liters[1]. 

Overview of business units 

EPSE is organized into a head office (focused on supply and sales, finance, petroleum storage operation, etc.) and a Djibouti branch office (to distribute the products to oil marketing companies). 

[1] Our Mandate Company Profile – EPSE – Ethiopian Petroleum Supply Enterprise

 Overview of the sector

The manufacturing sector in Ethiopia has been experiencing double-digit growth over the past decade, although it currently accounts for only up to 5% of GDP[1]. Leveraging Ethiopia's abundant natural resources, cost-effective utilities, and available labor force, this sector holds significant potential for continued or even accelerated growth. Moreover, with a young population experiencing rapid increases in literacy and broader schooling rates, there is a growing demand for reading and learning materials. Recognizing the strategic importance of this sector, the Government of Ethiopia aims to ensure universal access to high-quality and affordable printed materials while also capitalizing on the digitization of content.

Within the printing industry, which encompasses both securities printing and commercial printing, growth is anticipated to persist, especially as other consumer industries reliant on printed products, such as the packaging industry, continue to expand. However, the industry currently relies heavily on imported raw materials, presenting an opportunity for the growth of local raw materials production.

Simultaneously, there is a rising demand for a variety of healthy entertainment services, driven by economic growth and urbanization. This necessitates the presence of service providers, including gaming and lottery, as well as effective regulation. As the government clarifies the roles of businesses and regulators, the entertainment industry is poised to transition into a new era of growth.

Ethiopia's paper and pulp industry face a substantial unmet demand, with minimal domestic production of pulp despite significant market potential. Importing approximately 170 million USD worth of paper and paperboard in 2016 highlights the opportunity for growth in local production. With an estimated annual demand exceeding 1.5 million tons per year, there is immense potential for expansion in the production of paper and pulp domestically [2].

[1] Tekeba Eshetie, Ethiopia’s Manufacturing Industry Opportunities, Challenges and Way Forward: A Sectoral Overview, 2018 

[2] Diagnostic Trade Integration Study Update - Ethiopia (unctad.org)

 Company description 

Berhanena Selam Printing Enterprise (BSPE) has as a titan of the printing industry for nearly 100 years in Ethiopia. Established in 1914, their legacy is deeply intertwined with the nation's modernization. BSPE offers a comprehensive range of printing services, encompassing both commercial needs and crucial government security printing. Notably, they hold the unique distinction of being the sole provider of official security prints in Ethiopia. This ensures the authenticity and integrity of essential government documents. Beyond security features, BSPE caters to a wide range of clients, producing books, newspapers, and vital business forms. Throughout history, BSPE has played a pivotal role in democratizing knowledge and information across Ethiopia.

Overview of business units 

Berhanena Selam has three business units: 

· Security Printing: Includes printing of checks, lottery, and exams 

· Regular Printing: Includes printing of newsletters, books, and others 

· Training: Provides training in areas of printing technology and graphic arts at a diploma level and for short-term certificate programs [1]

BSPE Audit Reports available here

[1] Background – ብርሃንና ሰላም ማተሚያ ድርጅት (ethbspe.org)

 Company description 

The Ethiopian Lottery Service (ELS) is a powerful force in Ethiopia's lottery scene, acting as both the primary organizer of national lotteries and the regulatory body that oversees the entire industry. Ensuring fairness and transparency is paramount for the ELS. They establish and enforce regulations that all lottery operators, including themselves, must follow. These regulations guarantee compliance with national laws and uphold the highest ethical standards. 

Lotteries have a long and legal history in Ethiopia, dating back to the first national lottery proclamation in 1953. The ELS itself was established in 1961 as the first official state lottery organization. However, Ethiopia's economic policies shifted in 2007, opening the market to private participation. The ELS adapted, gaining the authority to license and regulate these private operators while continuing to run its national lotteries according to ELS Re-establishment Proclamation No.510/2007. Today, the ELS remains the dominant force, holding the dual role of national lottery operator and industry regulator.

Overview of business units 

ELS provides the following major activities:

 

i. Collect revenue by publishing, distributing, and selling local and foreign lotteries. 

ii. Give permit to undertake lottery activities, supervise same, and revoke by the provisions of this Proclamation.

iii. Determine the types and specifications of equipment required to perform lottery games; issue permits for and supervise the importation of same.

iv. Control illegal lottery activities.

 Company description 

Ethiopian Pulp & Paper SC (EPPSC) was established in 1995 (E.C). EPPSC is primarily engaged in the production of paper and carton boxes. The company currently holds a 6.9% and 4.1% market share of the paper and carton box industries. By producing quality pulp and paper locally, Ethiopian Pulp and Paper S.C. is expected to reduce reliance on imported materials, strengthening the country's self-sufficiency and supporting Ethiopian businesses and consumers.

Overview of business units 

Ethiopian Pulp & Paper SC has two business units producing paper and carton boxes: 

· Paper (includes production of writing and printing paper, wrapping paper, board paper, and carton box raw materials) 

· Carton Boxes 

· Supply packaging materials for manufacturing industries. 

Overview of the sector

The Ethiopian construction and real estate sector is a key driver of the country's economic growth, contributing to infrastructure development, urbanization, and job creation. With rapid urbanization and population growth, there is a high demand for residential, commercial, and industrial properties across Ethiopia. The construction industry encompasses a wide range of activities, including designing infrastructure projects, laboratory analysis, building construction, road and transportation infrastructure, and water and sanitation projects. Additionally, the real estate sector plays a vital role in providing affordable housing solutions and attracting investment in urban development projects. As Ethiopia continues to modernize and expand its infrastructure, the construction and real estate sector is poised for significant growth and opportunities for investors and developers alike.

EIH recognizes the potential for growth in the construction sector and acknowledges the challenges that accompany it. Considering this, EIH encourages its subsidiary companies in the Construction and Real Estate sector (Ethiopian Construction Works Corporation, Ethiopian Construction Design and Supervision Works, and Federal Housing Corporation to reassess their performance challenges and capitalize on missed opportunities. This strategic approach aims to optimize performance and enhance competitiveness within the construction industry, ultimately driving sustainable growth and success for all stakeholders involved. 

 Company description 

The Ethiopian Construction Works Corporation (ECWC) was established through the amalgamation of three enterprises: the Ethiopian Road Construction Corporation, the Ethiopian Water Works Construction Enterprise and Prefabricated Building Parts Production Enterprise. ECWC engages in both domestic and overseas construction works and has experience across a range of projects from gravel and asphalt roads to airstrips to dam and irrigation projects. 

The Corporation possesses several key comparative and competitive advantages, as identified through station analysis. These include strong organizational leadership, a skilled labor force, extensive industry experience, ownership of numerous plants, equipment, and machinery, as well as construction material production and equipment maintenance centers. Additionally, the Corporation boasts its own training institute, advanced ICT deployment (including ERP, BIM, GPS, and real-time project monitoring systems), a wide network of branches both locally and abroad, a competitive compensation and reward system, and the implementation of a robust risk management system. These advantages position the Corporation favorably within the industry, contributing to its overall success and competitiveness.

Overview of business units 

The Ethiopian Construction Works Corporation has 6 business units: 

• Construction Business Unit

• Manufacturing Business Unit 

• Real Estate Development Business Unit 

• Equipment and Machineries Unit

• Project Development & Management Business Unit

• Agricultural Development Business Unit

 Company description 

Ethiopian Construction Design and Supervision Works Corporation (ECDSWC) is a multi-disciplinary engineering firm founded by amalgamation of three companies: Water Works Design and Supervision Enterprise (WWDSE), Construction Design Share Company (CDSCo) and Transport Construction Design Share Company (TCDSCo). The combined organization provides services in areas including water, energy, building & urban, transport, geotechnics, and underground works. 

 The corporation boasts a competitive advantage with its experienced and skilled workforce across various disciplines, involvement in large-scale projects, and diverse business units offering related services. With international experience in road and irrigation projects, its state-owned status enhances its potential for securing government projects. Regarding investment opportunities, the corporation possesses ample resources for both brownfield and new investments, including land ownership for real estate development and utilization of existing facilities for rental purposes. Additionally, its experience in joint ventures and partnerships, such as with local and international consultants and universities, further positions it for strategic growth and development.

Overview of business units 

The Ethiopian Construction Design and Supervision Works Corporation has 7 business units: 

· Construction Unit

· Consultancy Unit such as:

• Water and Energy Design and Supervision works sector. 
• Building and Urban Design and Supervision Sector 
• Geotechnical Investigation, Geotechnical Engineering and Underground Works Design and Supervision Sector
• Surveying, Geospatial and Civil Informatics Center
• Research, Laboratory and Training Center

Company description 

With over four decades of experience, the Federal Housing Corporation (FHC) is deeply rooted in the sector, engaging in diverse activities such as construction, renovations, contracting, rental, sale, and acquisition of specialized decision houses for various purposes. Managing a vast portfolio of over 18,000 buildings of different types and structural designs, including multistory apartments, commercial stores, warehouses, and villas, the Corporation caters to a wide range of housing needs. From residential complexes to commercial centers, market stalls, and offices, FHC provides a comprehensive array of real estate solutions to meet diverse demands in the market.

 The Federal Housing Corporation (FHC) offers diverse investment opportunities, leveraging its extensive resources and readiness for joint ventures (JVs) and privatization. FHC possesses ample land resources, skilled labor, and financial mobilization capabilities, allowing for brownfield and new investments in rental housing development. Through JVs, FHC collaborates with contractors, consultants, and technology companies to enhance housing projects, introduce innovative solutions, and promote green construction practices. Major completed projects include high-rise apartment complexes and residential villages, with ongoing developments at multiple sites. FHC also provides housing construction materials, consultancy services, renovations and maintains strong partnerships with various industry stakeholders to ensure effective project delivery and continuous growth.

Overview of business units 

The Federal Housing Corporation has 3 business units: 

• Housing Administration Business Division

• Housing Development Business Division

• Construction Input Supply Business Division