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.

Agro-chemicals

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.

Tax incentives

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)