About the Federal Democratic Republic of Ethiopia
Ethiopia, with a population of about 75 million, is the second most populous country in Sub-Saharan Africa, one of the world’s oldest continuous civilizations. Since 1991, there has been significant progress in key development indicators: Primary school enrollments have tripled, child mortality has almost been cut in half, and the number of people with access to clean water has more than doubled. More recently, poverty reduction has accelerated. These gains paint a picture of improved well-being in Ethiopia.
On the economic aspects, since the early 1990's, Ethiopia has pursued a development strategy based on a mixed economy of both state and private enterprises. It has eliminated discriminatory tax, credit, and foreign trade treatment of the private sector and tried, with limited success, to simplify bureaucratic regulations and procedures, an ambitious reform effort to initiate a transition to a more democratic system of governance and decentralize authority was led by the Government. This has involved devolving powers and mandates first to Regional states, and then to woredas or district authorities. In addition Ethiopia has been one of the fastest growing non-oil economies in Africa with double digit growth and continued improvement in households' access to basic services.
In recent months the Government of Ethiopia has undertaken a number of actions (e.g., tightening fiscal policy and reducing government's domestic borrowing, mitigating the impact of high food prices on the poor, reducing the domestic borrowing of public enterprises, tightening money supply, and gradually depreciating the local currency) to address global economic crisis impacts.
Ethiopia top income tax rate is 35 percent, and the top corporate tax rate is 30 percent. Other taxes include a value-added tax (VAT) and a capital gains tax. In the most recent year, overall tax revenue as a percentage of GDP was 11.6 percent.
Hon Minister Ministry of Economic Development and Co-operation
P. O. Box 2428
Ethiopian Chamber of Commerce & Industry
P.O. Box 517
(Tlx 21213 CHAMBERCOM ADDIS0);
Export Promotion Board
Ethiopian Investment Authority
Tel: (251-1) 510033
Fax: (251-1) 514396
P.O.Box: 2313 Addis Ababa, Ethiopia