Page 24 - Nexia SAB&T Africa Overview 2025

Ethiopia (GMT +3)

General:
▪ Capital City: Addis Ababa
▪ Official Language: Amharic
▪ Currency: Ethiopia Birr (ETB)
▪ Main Exports: Gold, coffee, leather, livestock, qat
▪ Surface Area: 1 104.3 sq. km (thousands)
▪ Population: 135,4 million (2025,est)

Key Economic Indicators:
▪ GDP: $117,46 billion (2025) / GDP Growth Rate: 6.2% (2024)
▪ CPI Inflation Rate (annual): 21.5% (2025)
▪ Sovereign Credit Ratings: Moody’s: Caa3, S&P: Selective Default, Fitch: Restricted
Default (in default with little prospect of recovery)
▪ Indicator of Economic Freedom Score: 48.1/100 (2025): Repressed
Exchange Controls:
▪ Exist, regulated by The National Bank of Ethiopia (NBE)

Basis of Taxation: (Tax Year End: 7 July)
▪ Residents: Worldwide income
▪ Non-residents: Ethiopian-source income
Tax Rates:
▪ Individuals: Progressive rates to 35%
▪ Companies: 30%
▪ Inheritance and Donations Taxes: N/A
▪ VAT: 15%
▪ Withholding Tax: Varying rates apply to residents and non-residents
▪ Capital Gains Tax (CGT): Sale of immovable property at 15%, and transfer of
shares or bonds at 30%
▪ Double Taxation Agreements: In place with several countries
Useful links:
▪ National Bank of Ethiopia http://www.nbe.gov.et
▪ Ethiopian Revenue and Customs Authority https://customs.erca.gov.et
▪ Ethiopian Investment Centre https://gipc.gov.gh
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