The boost its hard currency earnings and reduce unemployment, the government of Ethiopia is set to provide an additional tax incentive to investors engaged in exporting products and services. Those who generate more foreign currency from export and create more jobs will get more tax incentives, according to the draft investment law of the country. While the import bill of Ethiopia surpasses over $17 billion, the export earning of the country has been declining below $2.8 billion widening the trade deficit. The tax to GDP ratio of Ethiopia’s tax to GDP ratio, which is around 10% at the moment, is also below the 15% sub Saharan Africa average. This has led to huge budget deficit making the country dependent on external loan, which surpasses $26 billion.

Source: News Business Ethiopia February 26, 2019 21:00 UTC