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Country Commercial Guides for FY 2000: Ethiopia Report prepared by U.S. Embassy Addis Ababa, released July, 1999 Note*

CHAPTER V. LEADING TRADE PROSPECTS FOR U.S. BUSINESS

The following products, listed as essential items on the FDRE's priority list, represent the best prospects for products and services for U.S. exporters:

A. BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES:

Sector Rank: 1
Sector Name: Aviation
Industry Code: AIR
Ethiopian Airlines (EAL) continues to expand its routes throughout Africa, Europe, Asia, and the United States.  It has expressed a desire to expand its fleet within the next several years.  EAL has been an important regional client for U.S. aviation companies with an all-Boeing international fleet with primarily Pratt and Whitney engines.  The company will continue to need aviation spare parts and ancillary equipment (loaders, forklifts, airport vehicles).  In addition, several new charter airlines are showing some progress and may purchase additional small passenger and cargo planes. 

Sector Rank: 2
Sector Name: Road Construction
Industry Code: CON
The World Bank and donor agencies are participating heavily in Ethiopia's Road Sector Development Plan (RSDP).  Although U.S. firms are bidding and winning tenders to conduct road design and supervise construction, the country will also need vehicles (bulldozers, cranes, trucks, forklifts), vehicle attachments, both mechanized and non-mechanized equipment to level and pour the materials, and construction materials.  Most projects open for international competitive bidding are funded by either the Ethiopian government or major international financial institutions in which the United States participates, such as the International Development Association (IDA) of the World Bank and the African Development Fund (AFDF) of the African Development Bank (AFDB).

Sector Rank: 3
Sector Name: Telecommunications
Industry Code: TEL
Ethiopia continues to invest and seek donor assistance in expanding and upgrading its telecommunications network.  With the lowest telephone line density in Africa, the Telecommunications Corporation has advertised the need for 760,000 new telephone lines over the next ten years.  In addition, it plans to award a series of contracts for the provision of wireless local loops.  Other projects contained within the ETC's development program for the next three years includes DRMAS stations, VSAT stations, coin-operated telephones, expanded internet, mobile telephones, and voice mail.  All of these projects will require the necessary installation machinery, switches and equipment.    

Sector Rank: 4
Sector Name: Hydro-Electric 
Industry Code: ELP
Over the next several years, Ethiopia plans to triple its capacity to generate hydroelectric power, from 400 to 1200 megawatts.  Although this will meet the current need, Ethiopia has an untapped natural potential to generate over 30,000 megawatts of hydroelectric power.  The Ethiopian Electric Power Corporation (EEPCo) is interested in U.S. technology in this field and is regularly publishing tenders for expanding and renovating the civil and hydromechanic works for current generating stations and for the planning, design and construction of additional works.    

Sector Rank: 5
Sector Name: Tourism
Industry Code: TRM 
Ethiopia's tourism potential is largely untapped and should be of enormous interest to foreign and local visitors on historic, cultural, or eco-tourism expeditions.  Ethiopia has an enormous diversity of wildlife (with many unique indigenous plant, bird, and mammal species), exotic landscapes, and architectural ruins of prehistoric, historical, and religious significance.  Many tourist sites are completely undeveloped and the infrastructure (hotels, restaurants, tour facilities) are underdeveloped.     

Sector Rank: 6
Sector Name: Airport Equipment
Industry Code:  APG
The construction of Bole International Airport in Addis Ababa will be completed in mid-2000.  The new terminal will need equipment, machinery, and structures related to indoor and outdoor facilities including baggage handling, shopping, dining, cargo storage, transfers, food preparation, and parking.  Renovation and construction of several domestic terminals proceeds apace.  The country will need navigation and communication devices, fire-fighting and safety equipment, and security equipment are needed for all of these new airports.

Other leading sectors for trade and investment include trucks, vehicles and spare parts (TRK) and medical equipment and pharmaceuticals (MED/DRG).

B. BEST PROSPECTS FOR AGRICULTURAL GOODS AND SERVICES:

Ethiopia is endowed with abundant agricultural resources and has a vast diversity in ecological zones. Because Ethiopia must import all of its urea-based fertilizer, the best prospect in this sector is for the manufacture or provision of agricultural chemicals. Given the primary focus of the economy on agriculture and the diversity of crops and products, large-scale agro-processing offers numerous opportunities. With the increased commercialization of this sector, there are growing demands for inputs of agricultural products by manufacturing industries and the provision of all-around support services such as the maintenance of tractors, harvesters, and other equipment such as grain silos, cold storage and transport. Ethiopia's cash crop production has enormous potential for growth, especially in coffee, tea, sugar, spices, and tobacco. Cotton is well integrated in the economy with a large number of textile and garment factories relying on domestic production. Ethiopia already produces beeswax, oilseeds, fruits and vegetables for exports but there is plenty of room for growth. A keen demand is anticipated for technical services in several areas, including hand farming implements and hand-powered tools and farming equipment, small-scale rural infrastructure equipment, water supply and sewage system machinery, such as irrigation pumps and well or bore-hole digging equipment.