A national priority
Chemicals (fertilizers, soap and detergent, etc.) have been prioritized under the second development plan (GTPII).
Although the sector has received FDIs from different countries (China, India and Europe), a large fraction of chemical inputs/products are still imported.
Investment opportunities in the agro-chemical sector are considerable, especially for fertilizers. As local producers are unable to meet the nation’s demand for fertilizers, imports have increased by more than 50% over the last 10 years. Moreover, as the Ethiopian soil is known to be rich in raw materials, there is a significant opportunity in contributing to the growth of fertilizers’ local productions.
Firms investing in the following activities are eligible to attractive tax incentives
|Manufacture of basic chemicals (including ethanol)||Manufacture of fertilizers and/or nitrogen compounds||Manufacture of plastics and/or synthetic rubber in primary forms||Manufacture of pesticides, herbicides or fungicides|
|Manufacture of paints, varnishes or similar coatings; printing, writing and painting inks and mastics||Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations||Manufacture of man-made fibers||Manufacture of other chemical products (propellant powders, explosives, photographic films and similar products)|