NEWS & INSIGHTS

RISK-REWARD PROFILE

In the Africa Risk-Reward Index, published jointly by Oxford Economics and Control Risks in September 2019, Ethiopia outperforms every African peer with its high reward score of 8.09 out of 10. Its risk score declined from 6.18 to 5.99 out of 10 from prior year. The risk score remains stubbornly high mainly due to uncertainty concerning whether the reform agenda to open up the economy can progress smoothly.

GROWTH HIGHLIGHTS

The Ethiopian economy expanded at a 9.2% clip in the 2018/2019 fiscal year, up from 7.7% from the previous year. Foreign direct investment (FDI), loans and remittances also grew by 20% compared to the same period last fiscal year. Source : Prime Minister Abiy Ahmed’s briefing to Ethiopian Parliament.

ON THE RIGHT TRAJECTORY

At the “Ethiopia Partnership Forum” hosted by the U.S. Department of State last year, U.S. Ambassador to Ethiopia Michael Raynor gave a nod to the ongoing economic and political reforms and encouraged U.S. companies to “expand and evolve the way our businesses and investors view Ethiopia, so that they can be a part of what is shaping up to be one of the world’s great stories of economic success.” Source: U.S. Embassy Ethiopia at et.usembassy.gov, May 17, 2019.

FRONTIER MARKETS: WHAT ARE THEY?

Frontier markets are economies that are at early stages of development. They often present attractive rates of return and early entrant advantages. However, they could pose challenges if their institutional capabilities and regulatory landscape do not effectively cater to the needs of investors.

Entrepreneurship entails a certain degree of risk-taking. Managing risk is a key factor for any investment to succeed. That is where an adviser with the right capabilities can make all the difference. A professional team with knowledge and experience in business, finance and law in local markets can help guide investors toward a successful venture.

Yared Legesse & Associates law office is ready to serve you. Through all the various stages of investment evaluation, planning, execution and management, Yared Legesse & Associates law office will be your reliable partner supporting your initiatives as part of your team. Let us be your resource in all the places where you can’t be.