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20 Best Small and Big Business Opportunities in Ethiopia for 2019

10. Real Estate

No list of business opportunities in Ethiopia would be complete without the juggernaut: Real Estate. The real estate market in Ethiopia has been incrementally heating up and not only in the capital city Addis Ababa, but throughout the country.

It has been attracting capital from domestic and foreign investors due to the rapid urbanization and severe housing problems facing the citizens.

The real estate sector has contributed over 12.5 percent to the domestic growth of Ethiopia in the past ten years.

Foreign investors are leading the market, as consumers are seeking more stability and transparency, due to local developers being bogged down by accusations of overpricing and delays.

Being a property developer is not the only way to amass a small fortune from the Ethiopian real estate. Simply buying property, renting it out for about 6 months to a year then selling it is a great way to optimize the use of your savings in the bank.

Home and land prices have been going up by more than 50% in one year and it is now cheaper to buy property in the developed world than it is in some cities of Ethiopia.

For example a 500 square meter plot in Addis Ababa’s Bole area with a demolishable home is selling from 13,500,000 ETB or 500,000 USD to 27,000,000 ETB or 1,000,000 USD. In the Merkato area of Addis Ababa, a 500 square meter plot is selling for 189,000,000 ETB or 7,000,000 USD.

Buying condominiums for cheap, simply but beautifully designing the finishing work, furnishing it and renting it out weekly or monthly to foreigners is also another great way to make use of money sitting in the bank.

Some examples: a standard 300 square meter G+1 villa house in Addis Ababa’s Ayat bought for 460,000 ETB or 17,037 USD in 1996 is now selling for 9,000,000 ETB or 333,334 USD to 13,000,000 ETB or 481,482 USD, that’s an average of over 2000% increase of value.

As an investor with disposable cash, ones first job is to protect its value, and if the money is sitting in a bank then it is losing value plain and simple.

An example of this is a deposit of 100,000 ETB or 4,486 USD on January 1, 2017 would leave you with about 110,000 ETB or 4,044 on January 1, 2018…a loss of about 10 percent in “real” value.

This makes investing in real estate a wise option to consider when planning on protecting your hard earned cash.

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