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20 Best Small and Big Business Opportunities in Ethiopia for 2019

12. Garbage Collection Service

Taking Ethiopia’s capital Addis Ababa as an example for how profitable the Garbage Collection business can be, we see that more than 3 million cubic meters of garbage is created in the city every year.

Institutions account for 18 percent of this garbage, while private households account for 76 percent of this astronomical amount of garbage.

From the 3 million cubic meters of trash, only about 1 million is collected by Addis Ababa’s Cleaning Management Agency with their 169 trucks, leaving the business wide open for a public-private partnership to collect the remaining 2 million cubic meters of garbage.

Furthermore, studies show that garbage production per person is to increase to 2.1 cubic meters causing the total yearly amount to increase to 7 million cubic meters.

The government of Ethiopia has allowed the private sector, as well as, small and micro enterprises (SME) to collect the garbage in a partnership system with Cleaning Management Agency cannot.

In 2017, there were only 27 companies representing the private sector and 610 SME’s (each with 10 individual members).

For solid waste management and cleaning purposes, the Agency divided the city into 550 zones each containing a curving average of about 900 households.

These zones have been allocated to SME’s to serve the households, while private waste collection companies can only collect from public and private institutions.

The Agency now dispenses the 2 ETB or .08 USD it collects from each resident’s utility bills to pay 90 ETB or 3.34 USD per cubic meter trash delivered to the landfills. One cubic meter is defined as 330 kilograms.

All in all, the garbage collecting sector is ripe for an enterprising individual to take advantage of the many opportunities available.

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