Trees, Forests and Profits in Ethiopia: An Assessment of Tree-Based Landscape Restoration Investment Opportunities in Ethiopia


By Tsega Mengesha (EFCCC), Meseret Edosa (EFCCC), Gebre Firdu (EFCCC), and Meseret Shiferaw (WRI)


August 21, 2020

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This report aims to support decision makers at the Federal and Regional levels of the Ethiopian government to use tree-based businesses to create employment opportunities and contribute to sustainable forest management. Tree-based businesses have enormous potential to create jobs and boost household income in rural and urban communities, including for women and youth. However, systemic bottlenecks to attract private investment must first be addressed before tree-based businesses can deliver any of benefits mentioned-above. Enabling conditions for land availability and financing must be strengthened. The government has an active role to play role in promoting partnerships with national and international investors and in creating an environment, which improves ease of doing business. Implementing the Forest Proclamation, no 1065/2018 could facilitate investment in the forestry sector.

Several actions can be taken to increase national and international investment in the forest sector, which is currently very low. Investment opportunities in tree-based businesses can be promoted and successful companies can be showcased. Awareness can be raised about supportive policies and incentives for investment. And data on available land for investment can be synthesized, packaged, and shared with investors. This report is a contribution to these efforts; it presents the existing potential and offers in the forest sector, profiles successful companies, and highlights key success factors to learn from and scale up.

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