Real Estate Developers in Ethiopia: What Makes the Country Attractive?
Multinational companies looking to expand their reach in Africa, benefit from the expertise offered by GREA as experienced real estate developers in Ethiopia and other countries on the continent.
Only Nigeria is more populous than Ethiopia among African countries. With a population of more than 110 million people, Ethiopia also offers a large consumer base. In addition, it ranks amongst the countries with a high growth rate, which is in excess of 9,3%. The country also has a young population of which the majority are under the age of 30.
Suitable business climate
Although the country has faced economic challenges in the past, the real GDP of the country, which slowed down due to the worldwide epidemic, is once again expected to remain above 6,3% according to the World Bank.
Introduction of a new economic policy in the spring of 2019
The government has initiated ambitious economic policy reforms that include the large-scale privatisation of state-owned enterprises. With such, investors can look forward to a more flexible and open economy.
The announced economic policy change is aimed at creating a foundation for more inclusive economic policies, growth and sustainable practices.
With this reform focus, the government aims to change the current mostly public sector-run economic model to a private sector-led economy.
The reform has the support of the International Monetary Fund (IMF), as evident in the approved close to $3 billion financial support for the government’s policy, which is named Home Grown Reform. In total, it’s expected that the programme will need in the vicinity of $10 billion to achieve the set goals.
There’s also a rising middle-class in the country. This means more buying power, tax income, and increased availability of human resources, especially at junior and mid-level management.
Countries actively involved in developments
Many companies from China are actively involved in the development of Ethiopia. Projects with which they’re involved range from infrastructure development to the textile industry. Companies from the Middle East and India invest in and participate in the agricultural industries along with the development of industrial textile hubs.
Turkish firms invest in construction and manufacturing, while Dutch investors are involved in the horticultural sector. US companies are also set to become more involved in the country’s development as the economy now opens for more international participation. With more buying power available to support the retail sector, real estate developers can also benefit from considering shopping centre development in the country.
Relative low cost
Also attractive to real estate developers is the relatively low cost of labour in addition to low energy costs, as well as affordable land as compared to the cost of these globally.
GREA is one of the real estate developers actively involved in construction projects ranging from industrial and data centres to commercial, healthcare and retail projects on the African continent, also in Ethiopia.
Investors and multinational firms wanting to expand their reach to Ethiopia can get in touch with GREA, as well-established real estate developers for turnkey design, project management, investment and construction services.