The Private Sector in Ethiopia’s Transformation

Abstract

This chapter examines private-sector development in Ethiopia, focusing on the situation since the incumbent government took power in 1991 and private-sector development became an integral part of Ethiopia’s economic development strategy. Several private entrepreneurs and enterprises have emerged since the reform and are now playing a critical role in the economic development of the country. However, the private sector has not yet made strong inroads into the manufacturing sector and the export market, which are perceived as crucial for industrialization and structural transformation. This chapter thus also seeks to highlight the key constraints impeding private-sector participation in these sectors and to suggest pathways to resolve these challenges.