Best Cities and Towns in Ethiopia to start Business with little Capital and earn a huge Profits

Ethiopia has a population of over 100 million people and is located in the Horn of Africa. The country's economy is diverse and quickly rising, with a GDP growth rate of more over 10% each year. Ethiopia has a large agricultural sector and a wealth of natural resources.

Because of its strategic location, inexpensive labour, and business-friendly atmosphere, the country is also attracting a lot of foreign investment.

In this post, we will look at the best cities and towns in Ethiopia to start a business with little capital and earn huge profits.

Why Start a Business in Ethiopia?

Ethiopia is a country located in the Horn of Africa with a population of over 110 million people. It is the second most populous country in Africa and one of the fastest-growing economies in the world. Ethiopia is also a country of great diversity, with over 80 ethnic groups and many different languages spoken.

There are many reasons why entrepreneurs might consider starting a business in Ethiopia. For one, the government of Ethiopia has made significant efforts to create a more business-friendly environment, with reforms aimed at reducing bureaucracy, streamlining regulations, and attracting foreign investment. As a result, Ethiopia has become one of the top destinations for foreign investment in Africa, with many large companies and international organizations choosing to invest in the country.

In addition to the government's support for business, Ethiopia also has a large and growing consumer market. With a population of over 110 million people, Ethiopia has a large and diverse market for goods and services. The country is also home to a growing middle class, which is creating new opportunities for businesses that cater to their needs.

Another advantage of doing business in Ethiopia is the country's strategic location. Ethiopia is located in the center of the Horn of Africa, making it an important hub for regional trade and commerce. It also has access to major international markets, including Europe, Asia, and the Middle East.

Finally, Ethiopia has a diverse and skilled workforce. The country has a large and growing pool of young and educated workers, many of whom are eager to work in the private sector. This provides businesses with a large and diverse talent pool to draw from.

Best Cities and Towns in Ethiopia to start business with little capital and earn a huge Profits

Ethiopia is a country that has been experiencing strong economic growth in recent years, making it a desirable destination for investors and entrepreneurs looking to start a business. With a population of over 110 million people, Ethiopia has a large and growing consumer market, and its strategic location in the Horn of Africa makes it an ideal gateway to other markets in the region.

Here are the best cities and towns in Ethiopia to start a business with little capital and earn huge profits:

Addis Ababa

Addis Ababa is the capital and largest city in Ethiopia, with a population of over 5 million people. As the economic and cultural hub of Ethiopia, Addis Ababa offers many opportunities for entrepreneurs looking to start a business.

One of the advantages of starting a business in Addis Ababa is the city's location at the center of Ethiopia's transportation network. Addis Ababa is home to Ethiopia's main airport, Bole International Airport, and is also the hub of the country's road and rail network. This makes it easier to import and export goods, as well as to travel to other parts of the country.

In addition to its transportation network, Addis Ababa also has a thriving business community, with many local and international businesses based in the city. This creates a supportive environment for entrepreneurs, with opportunities for networking and collaboration.

Addis Ababa also has a large and growing consumer market, with a diverse range of industries and businesses. The city is home to many major companies, including Ethiopian Airlines, Dashen Bank, and Heineken Ethiopia. This creates opportunities for entrepreneurs in sectors such as manufacturing, service industries, and retail.

Dire Dawa

Dire Dawa is a city located in the eastern part of Ethiopia, near the border with Somalia. The city is an important transportation hub, with a large airport and a railway line that connects it to the port of Djibouti.

Dire Dawa is also home to many industries, including textiles, food processing, and construction materials. The city has a large and growing population, which means there is a lot of potential for businesses that cater to the needs of the people.

Hawassa

With a population of over 400,000 people, Hawassa is a fast rising town in southern Ethiopia. It is the capital of the Southern Nations, Nationalities, and Peoples' Region (SNNPR) and has developed into a key focus for regional business and investment.

The city's central location in the SNNPR is one of the benefits of establishing a business in Hawassa. As a result, it serves as a gateway to the remainder of the region, which has a population of more than 20 million people. In addition, the city is positioned along the main highway that connects Ethiopia to neighbouring Kenya.

Hawassa has grown rapidly in recent years, with new infrastructure and investment flooding the city. Hawassa has been recognised as a priority city for industrial development, with ambitions to construct industrial parks and attract investment in industries including as textiles, leather, and agro-processing.

Because of its location on the shores of Lake Hawassa, Hawassa has a booming tourism business in addition to its industrial potential. The lake is a famous tourist site, including chances for fishing, boating, and birdwatching.

Bahir Dar

Bahir Dar is a city in Ethiopia's Amhara region, located on the southern bank of Lake Tana. With a population of over 300,000 people, it is Ethiopia's third-largest city.

One of the benefits of establishing a business in Bahir Dar is its proximity to Lake Tana, Ethiopia's largest lake and a vital source of water for the region. This makes it a transportation and commercial hub, with prospects for fishing, transportation, and tourism industries.

Bahir Dar also has a booming tourism business, with many visitors coming to see the city's historic monuments, such as the Bahir Dar Market, the Blue Nile Falls, and the neighbouring Lake Tana monasteries. Bahir Dar University, which provides courses in business and technology, is also located in the city, providing opportunities for collaboration and innovation.

Aside from tourism, Bahir Dar has a thriving agricultural sector, with coffee, cotton, and teff among the crops grown in the surrounding area. This opens up opportunities for enterprises that process and export these crops.

Mekelle

Mekelle is the capital city of Ethiopia's Tigray region.

The city is strategically located on the Addis Ababa-Djibouti railway line and the motorway connecting Addis Ababa to the country's northern region.

Mekelle has a thriving business community, with several manufacturing and service companies.

The city is an excellent location for establishing a manufacturing or service-related firm.

Jimma

Jimma is a city in Ethiopia's southwestern region. The city is well-known for its coffee plantations and is a major producer of coffee in the country. Jimma also has a variety of industries, including textiles, food processing, and building materials.

With various options accessible, the city's population is rising, which means there is a lot of potential for entrepreneurs to start a business in the agriculture industry.

Gondar

Gondar is a city in Ethiopia's Amhara region, near the Simien Mountains' foothills. It is famous for its rich history and cultural assets, which include well-preserved medieval castles and churches.

One of the benefits of starting a business in Gondar is its proximity to the main highway connecting Ethiopia and neighboring Sudan. As a result, it serves as a transportation and commerce hub, providing opportunities for firms involved in logistics, transportation, and trade.

Many travellers come to Gondar to explore the city's historic buildings, including the Royal Enclosure, a network of castles and palaces built in the 17th and 18th centuries. There are various churches in the city, including the Debre Birhan Selassie Church, which is recognised for its stunning murals and artwork.

In addition to tourism, Gondar boasts a thriving agricultural sector, with coffee, sesame, and maize farmed in the surrounding area. This opens up opportunities for enterprises that process and export these crops.

Adama

Adama, also known as Nazret, is a city in Ethiopia's Oromia region. With a big airport and a railway line connecting it to other cities and villages in the region, the city is an important transportation center.

Many industries, including textiles, food processing, and construction materials, are also located in Adama. The city's population is rising, which means there is a lot of opportunity for businesses that cater to the demands of the people.

Harar

Harar is an Ethiopian city in the Harari region. The old walled city of the city is a renowned tourist site.

The city has a thriving hospitality business, with numerous hotels and resorts. Harar is an excellent location for establishing a hotel or tourism-related business.

Gambella

Gambella is a city located in the southwestern part of Ethiopia, near the border with South Sudan. The city is known for its natural resources, including oil and gas, and is attracting a lot of foreign investment. Gambella is also home to many industries, including textiles, food processing, and construction materials.

Top 10 best businesses in Ethiopia Cities and States to start with little capital and earn huge Profits

Here are the top 10 best businesses in Ethiopia cities and states to start with little capital earn profit:

●        Food processing and packaging

●        Transportation and logistics

●        Clothing and textile manufacturing

●        Agriculture and farming

●        Retail and wholesale trade

●        Renewable energy and green technology

●        Hospitality and tourism

●        Education and training

●        Health care and wellness

●        Real estate and property development

FAQs

What are the top industries in Ethiopia?

The top industries in Ethiopia include agriculture, manufacturing, construction, mining, and service industries like tourism and hospitality.

What are the main challenges of starting a business in Ethiopia?

Some of the main challenges of starting a business in Ethiopia include navigating bureaucracy, finding reliable partners and suppliers, and access to finance and capital.

Is it possible to start a business with little capital in Ethiopia?

Yes, it is possible to start a business with little capital in Ethiopia, especially if you choose the right city or town and target a niche market. 

What are some of the most profitable business opportunities in Ethiopia?

Some of the most profitable business opportunities in Ethiopia include agriculture, manufacturing, real estate, tourism and hospitality, and service industries like healthcare and education.

What is the most profitable small business in Ethiopia?

The most profitable small business in Ethiopia depends on various factors such as location, demand, and competition. However, some of the most profitable small businesses in Ethiopia include food processing and packaging, transportation and logistics, clothing and textile manufacturing, agriculture and farming, and retail and wholesale trade.

What kind of business is profitable in Ethiopia?

Ethiopia has enormous expanses of forest and booming fisheries, which provide even more prospects for profit. Commercial processing of both raw materials and agricultural produce increases the likelihood of success in Ethiopian agricultural ventures. 

How much money do you need to start business in Ethiopia?

The amount of money needed to start a business in Ethiopia varies depending on the type and scale of the business. The minimum capital necessary to establish a share company in Ethiopia is Br. 50,000.

How to start business with small capital in Ethiopia?

To start a business with small capital in Ethiopia, it is important to have a clear business plan, identify a profitable niche, and conduct thorough market research. It is also important to register the business, obtain the necessary licenses and permits, and secure funding through various sources such as microfinance institutions, government grants, or crowdfunding.

Which countries invest most in Ethiopia?

The top countries investing in Ethiopia include China, Turkey, the United Arab Emirates, the United States, and India. These countries have invested in various sectors such as manufacturing, infrastructure, and agriculture, among others.

Conclusion

Ethiopia is a country with a lot of potential for businesses that are looking to expand or start a new venture. The country has a growing economy, a large and growing population, and a government that is supportive of businesses.

There are many cities and towns in Ethiopia where you can start abusiness with little capital and still earn huge profits. Addis Ababa, Dire Dawa, Hawassa, Bahir Dar, Mekelle, Jimma, Gondar, etc.