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The Economy

Ethiopia is an East African country that shares the African continent's horn with Somalia, Eritrea, Kenya, and others.

Ethiopia's economy is a mixed and transition economy with a large public sector primarily based on agriculture, which accounts for approximately 42% of the country's GDP and 85% of total employment. The country is a major producer of coffee, which is its main export, as well as cereals, oilseeds, and pulses. It also has a relatively small manufacturing sector, which accounts for about 10% of GDP, and a service sector, which accounts for about 48% of GDP.


The Legal Business Structure

Ethiopia has a variety of legal business structures to choose from, and all of these are available to foreign investors. It is important to note, however, that some business structures may be more suitable for foreign investors depending on their investment objectives and the nature of their business. A foreign company seeking to establish a long-term presence in Ethiopia and engage in commercial activities, for example, may prefer to establish a private limited company or a foreign branch office, whereas a company seeking to conduct market research or establish a short-term presence may prefer to establish a foreign representative office.

Other forms of business structures that exist in Ethiopia include: Sole proprietorship, Partnership, and Public Limited Company.

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