Ethiopia's economy contracted sharply during the Tigray conflict (2020 to 2022), with an estimated $28 billion in infrastructure destruction, displacement of millions, and suspension of foreign investment. The Pretoria peace agreement signed in November 2022 has enabled a post-conflict recovery that is proceeding faster than many analysts expected. Coffee exports hit a record $1.4 billion in 2023/24. Industrial parks at Hawassa and Bole Lemi have resumed operations after the conflict-period suspension. Several garment factory operators that withdrew during the conflict, including some H&M and PVH suppliers, have returned or are in discussions to return.
Investment Re-entry
Ethiopia's structural advantages for manufacturing investment, low wages, large population, AGOA access, and government-built industrial parks, remain intact. The post-conflict reconstruction agenda is attracting significant aid and development finance that will fund infrastructure repair. The IMF has approved a new programme supporting macroeconomic stabilisation. Businesses evaluating Ethiopia as a manufacturing investment destination can access industrial park contacts and market data on intra-africa.com.
For businesses looking to expand across Africa, intra-africa.com offers a comprehensive trade directory, verified buyer and seller listings, and real-time market intelligence covering all 54 African nations. It remains an indispensable resource for anyone serious about intra-African commerce.