Top profitable business ideas in Ethiopia


Here is a compilation of business ideas that are high in demand, competitive and profitable in Ethiopia from small to big businesses.

10.  Bakery

Here are a few examples of businesses in bakery that have become profitable in bakery.  Enrico pastry was founded in 1954. It is estimated that this pastry bakes 4000-9000 cakes per day. Another example is the newly founded Mulmul Bakery. During its establishment, it only used one quintal of flour daily but now it has six branches throughout the city and 320 employees. It provides 104 types of products. Others brands such as Caravan cake and the well known Shoa bakery, prove that the bakery and pastry business is easily profitable and expandable.

9. Daycare and Nursery

The work of daycare is a job that requires caution. It assembles professionals and teachers to receive and care for children of 6 months- 13 years of age. This business is highly in demand in the city and due to scarcity, it could be highly competitive. The daycare business should be established after intense and thorough talks with child experts and professionals. For example, a daycare that goes by the name of A and E was founded by Diasporas who have spent most their lives in the US. The daycare has a good playground and many caretakers and teachers. Its working hours are from 7 a.m. to 5 p.m. and the price for one child is 3000 Birr per month and 32,000 Birr per year.

8. Recreational centers

Many business professionals recommend recreational centers as a profitable. Since Addis Ababa is the diplomatic city of Africa, there could never be too many recreational centers like cinemas, bars, nightclubs, hotels and restaurants that could satisfy the needs of diplomats and tourists.

7. HCB factory

Due to the recent construction boom in the city, HCB or Hollow Concrete Bricks are high in demand. To start such a business, only 29,180 Birr or about 1080 USD is required. What could hinder this business is the availability of water and a working area.

6. Production of Salt and Soap

Nowadays, people are producing and selling homemade soaps and salt which are in demand in the market. Salt can be brought from the Afar region, prepared and packaged at home. It is more preferable if the packaging is attractive and there is a delivery system for it. A good marketing and business plan is required in order to sell the products. 


5. Computer maintenance

Computer maintenance is one of the best businesses out there. Since there is a dramatic increase in the number of personal computer owners and users fixing a hardware or malware one would earn at least 100- 800 Birr. This business is continuous and enables working with big companies. It is also more profitable to import spare parts and hardware.

4. Music industry

There are many ways to be involved in the music industry. The first is to Organize and Promote events. For example, a certain promoter had made a deal with a beverage company for 3.4 million Birr recently. They paid the performing artists 20,000 to 500,000 according to their popularity and their net profit from the event would be around 2-5 times greater that the initial expense.

Music video making is also a great way to involve in the music industry. One can use platforms like YouTube and other websites to promote and earn money from their music videos. The price to make a single music video has grown from 60,000 Birr to 150,000 Birr.

3. Driving Schools

Each year, more and more people are getting their licenses. Since the government has shut down many such schools for their lack of qualifications, one could easily find market in this environment.

2. Building management

Building management is taking the responsibility of the tiring task of Managing elevators, fire extinguishers, parking space, sanitation, security and maintenance. For example the management team for Tsehay real estate earns 646,000 birr per month from the 646 households of 13 buildings.

1. Real Estate

This has to be one of the most profitable businesses. Housing is very high in demand and it is the real estate’s responsibility to provide reasonable and fair priced houses for customers.


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