1   Ethiopian Economy Profile
                                                2   Strategic Investment Areas
                                         3  Enabling Environments
                     Ethiopia has a clear vision for industrialization, which builds off of its rapid 
                      Ethiopia has a clear vision for industrialization, which builds off of its rapid 
                     growth in recent years and its strong track record in attracting FDI
                      growth in recent years and its strong track record in attracting FDI
                                                                      Rapid economic           • One of the fastest growing economies in the world
                                                                       Rapid economic          • One of the fastest growing economies in the world
                                                                      growth                     • 11% average growth over the past 13 years
                                                                       growth                     • 11% average growth over the past 13 years
                                                                                               • One of the top destinations for foreign direct investment 
                                                                      Favourable               • One of the top destinations for foreign direct investment 
                                                                       Favourable                (FDI)
                                                                      destination for             (FDI)
                                                                       destination for           –Ethiopia accounts for 18.5% of all jobs created through 
                                                                      FDI                         –Ethiopia accounts for 18.5% of all jobs created through 
                                                                       FDI                          FDI in Africa
                                                                                                    FDI in Africa
                Population        Total: 100m (est. 2017)
                 Population       Total: 100m (est. 2017)                                      • Second most populous country in Africa
                                                                      Young and                • Second most populous country in Africa
                                  GDP/capita: $739 (2015/16)           Young and                 –>100 million people, growing at 2.3 million annually
                                  GDP/capita: $739 (2015/16)          productive                  –>100 million people, growing at 2.3 million annually
                Economics         FDI inflow: $3.2bn (2016)            productive 
                 Economics        FDI inflow: $3.2bn (2016)                                    • Young and productive age group accounts for 60% of the 
                                                                      population               • Young and productive age group accounts for 60% of the 
                                  FDI growth: 46% (2016)               population
                                  FDI growth: 46% (2016)                                         population
                                                                                                  population
                                  Health spend: $2.7bn
                                  Health spend: $2.7bn
                                  Health spend/capita: $27
                Health            Health spend/capita: $27
                 Health           Health spend/GDP: 5%                                         • Vision 2025: become leading manufacturing hub in Africa
                                  Health spend/GDP: 5%                Clear vision for         • Vision 2025: become leading manufacturing hub in Africa
                                  Availability of EDMs*: ~70%          Clear vision for 
                                  Availability of EDMs*: ~70%                                  • Foreign investment is key focus of Prime Minister
                                                                      development              • Foreign investment is key focus of Prime Minister
                                                                       development             • Wide-ranging incentives in priority sectors    
                Literacy          49% of total population                                      • Wide-ranging incentives in priority sectors    
                 Literacy         49% of total population
            Source: World Bank, IMF, WHO                                                                                                                         3
                    1 Ethiopian Economy Profile
                       2 Pharmaceutical Manufacturing 
                    3 Enabling Environments
            Ethiopia has identified strategic sectors for investment with a strong focus on 
            Ethiopia has identified strategic sectors for investment with a strong focus on 
            Pharmaceutical manufacturing with a national strategy to develop the sector
            Pharmaceutical manufacturing with a national strategy to develop the sector
                                                                                      Todays focus area
    Strategic Sectors                          National Strategy for the Pharmaceutical Manufacturing Sector
                                                                       • Ethiopia is one of the first 
                                                                       • Ethiopia is one of the first 
                                                                        African countries to develop 
                                                                         African countries to develop 
                                                                        national strategy for 
                                                                         national strategy for 
                                                                        pharmaceutical 
                                                                         pharmaceutical 
                   Pharmaceutical                                       manufacturing with a 
                                                                         manufacturing with a 
                                                                        strategy to grow exports in 
                                                                         strategy to grow exports in 
         Energy                Agro-processing                          addition to substituting 
                                                                         addition to substituting 
                                                                        imports and improving access 
                                                                         imports and improving access 
                                                                        to medicines
                                                                         to medicines
                                                                       • Dual benefit of increasing 
                                                                       • Dual benefit of increasing 
                                                                        access to medicines and 
    Tourism                          Textile                             access to medicines and 
                                                                        promoting rapid 
                                                                         promoting rapid 
                                                                        industrialization of the 
                                                                         industrialization of the 
                                                                        country
                                                                         country
                                                    Goal: To become a pharmaceutical manufacturing hub in 
            Horticulture    Leather                 Goal: To become a pharmaceutical manufacturing hub in 
                                                                     Africa
                                                                      Africa
                                                                                        5
              Access to huge market and Industrial Park (IP) designated for pharmaceutical sector making 
              Access to huge market and Industrial Park (IP) designated for pharmaceutical sector making 
              Ethiopia attractive for investment 
              Ethiopia attractive for investment 
      Strategic advantages to manufacture pharmaceuticals in Ethiopia
                          • Strong investment policy focused on pharmaceuticals which is led by Prime Minister Office
                          • Strong investment policy focused on pharmaceuticals which is led by Prime Minister Office
                            – Tax exemptions: corporate income tax, personal income tax, duties, export taxes
                            – Tax exemptions: corporate income tax, personal income tax, duties, export taxes
      Focused Policies
      Focused Policies      – One-stop shop for government services
                            – One-stop shop for government services
                            – Price preference in public procurement which accounts for a huge market
                            – Price preference in public procurement which accounts for a huge market
                          • Kilinto Industrial Park (KIP) will be state-of-the-art and will specialize in pharmaceutical manufacturing
      Specialized         • Kilinto Industrial Park (KIP) will be state-of-the-art and will specialize in pharmaceutical manufacturing
      Specialized 
      Industrial Parks    • Land lease rate for KIP is 3.59 USD/m2 p.a. for 40 years.
      Industrial Parks    • Land lease rate for KIP is 3.59 USD/m2 p.a. for 40 years.
                          • Potential to serve as export hub for the >$20 billion pharmaceutical market in Africa
                          • Potential to serve as export hub for the >$20 billion pharmaceutical market in Africa
      Access to market
      Access to market    • More regional markets through economic communities including COMESA and IGAD progressing towards regulatory 
                          • More regional markets through economic communities including COMESA and IGAD progressing towards regulatory 
                            harmonization.
                            harmonization.
                          • More than 10 schools of pharmacy in Ethiopia
      Abundant            • More than 10 schools of pharmacy in Ethiopia
      Abundant            • Expanding programs to new areas of specialization (e.g. industrial pharmacy, pharmaceutical analysis, etc.)
                          • Expanding programs to new areas of specialization (e.g. industrial pharmacy, pharmaceutical analysis, etc.)
      workforce
      workforce             – Centres of Excellence are being established to offer these specializations
                            – Centres of Excellence are being established to offer these specializations
        Source: Interviews, market research reports                                                      6