Introduction
Ethiopia is one of the oldest countries in the world. Although it is among the poorest nations, it is also one of the fastest-growing economies in Africa. Ethiopia is close to the Middle East and its markets; hence, the location provides it a strategic dominance over its neighboring countries.
During the last decade, Ethiopia’s economy has witnessed remarkable growth averaging 9.4%. It aims to move out of the poor category and reach lower-middle-income status by 2025. The government is working hard to sustain economic growth as well as poverty reduction simultaneously. Employment creation is the primary goal.
The construction and services industry accounts for most of the growth. Like most countries, Ethiopia was also impacted by the Covid-19 pandemic, and its GDP was down to 6.1% in 2020. However, the Agriculture industry was not affected, and it has helped the country’s economy in difficult times. Companies that want workers at lower costs are also expanding into the Ethiopian market.
Overview of Ethiopia
Population: 128,246,175 people (2024)
Gross Domestic Product (GDP): $511.37 billion (2024 estimate)
There are approximately 80 regional languages spoken in the country. Amharic is the official language of Ethiopia. However, English is the most widely spoken foreign language and is the medium of instruction in secondary schools and universities; hence, the urban population is proficient in English.
Economic Overview
Ethiopia’s currency Ethiopian Birr (ETB), is a non-convertible currency, and the National Bank of Ethiopia defines its allocation to foreign exchange. As per the current rate, 1,000 ETB is equivalent to 23 USD. The cost of living for one person is approximately 669 USD/29,000 ETB, while the average monthly salary is about 205 USD/8,900 ETB. The current unemployment rate is 19.10%.
Industries
The major industries in Ethiopia include agriculture, construction, manufacturing, services, tourism, and food processing. Most of the population relies on self-employment. Typically people employed in the public sector earn 14% more than private-sector employees.
Internet Speeds
Ethiopia ranks 102nd globally for mobile speeds (average 23 Mbps) and 163rd for fixed broadband speed (average 13 Mbps). However, digital penetration is relatively higher in major cities compared to rural areas. Improved digital infrastructure is helping the growth of remote knowledge resources in the country.
To know more about hiring a remote employee in Ethiopia, book a demo with Skuad now.
Talent In Ethiopia
Ethiopia is considered a talent hub for companies that want to hire remote knowledge workers at lower rates. It offers a pool of well-educated professional experts in the latest technologies and skills such as web design, mobile development, customer service, data management, transcription, digital marketing, and accounting.
Addis Ababa, Gonder, Mekele, and Dire Dawa are the most populated cities, providing the best remote resources. There’s a great talent pool available in various segments. The top skills in Ethiopia include:
- Information Technology
- Accounting and Sales
- Admin Support and Customer Service
- Data Science and Analytics
- Advertising and Creative media
- Human Resources
- Software and Mobile development
- Marketing
Top Skills by City In Ethiopia
Addis Ababa
| Profiles
|
Top Skills
|
| Web and Mobile Development
|
User Experience Designing, User Interface Designing, Full Stack Development, Android Development. Web Editing, Web Designing,
|
| IT Services
|
Technical Analysis, Technical Management, UNIX Administration, Web Security, IT Project management. Tech Support.
|
| Data Science and Analytics
|
Data Analysis, Python Machine Learning, Data Extraction, Data Mining
|
| Customer Service and Admin Support
|
Project Management, Consulting, Chat Support, Virtual Assistance, Virtual Physicians.
|
Gonder
| Profiles
|
Top Skills
|
| Design and Creatives
|
Graphic Design, Logo Design, Web Asset Designer, Photography, Video Editing
|
| IT Services
|
UNIX Administration, Web Security, IT Project management. Tech Support, Technical Analysis, Technical Management
|
| Data Science and Analytics
|
Data Analysis, Python Machine Learning, Data Extraction, Data Mining
|
| Translation
|
Translation Services, Transcription, Teaching, Coaching, Voice-over.
|
Top Remote Job Profiles in Ethiopia
The average hourly wage in Ethiopia is 1.5 USD/51 ETB. Below are a few top remote profiles, along with starting hourly rates.
| Remote Profiles
|
Jobs Available
|
Hourly Wage in USD
|
Hourly Wage in ETB
|
| IT Service and Software Development
|
Bot Developer
|
15
|
650
|
| Network Engineer
|
20
|
867
|
| Technical Engineer
|
10
|
435
|
| Web and Mobile Developer
|
20
|
867
|
| React and Angular Development
|
15
|
650
|
| Accounting and Consulting
|
Finance Manager
|
10
|
435
|
| Accounts Management and Advisory
|
50
|
2,170
|
| Account Reconciliations
|
40
|
1,735
|
| Design and Creatives
|
Graphic Designer
|
20
|
867
|
|
|
Web Asset Designer
|
50
|
2,170
|
|
|
Video Editor
|
25
|
1,085
|
| Digital Marketing and Bilingual
|
Digital Marketing Specialist
|
30
|
1,300
|
|
|
Social Media Marketer/Lead Generation
|
5
|
217
|
|
|
Translator(Amharic/Tigrigna/English)
|
15
|
650
|
|
|
Copywriter
|
10
|
435
|
|
|
Proofreader
|
20
|
867
|
| Customer Service/ Admin Support
|
Customer service specialist
|
15
|
650
|
|
|
Customer Support Team Lead
|
30
|
1,300
|
|
|
Virtual Assistant
|
10
|
435
|
|
|
Data Entry Specialist
|
30
|
1,300
|
|
|
Web Researcher
|
20
|
867
|
| Data Science and Analytics
|
Machine Learning Expert
|
15
|
650
|
|
|
Data Analyst
|
20
|
867
|
|
|
Data Entry Specialist
|
10
|
434
|
Hiring Cost in Ethiopia
The cost of hiring is the most crucial factor while employing people. The hiring process involves many steps, including screening, interviews, onboarding, and training, which require time, expertise, and money. The hiring process in a foreign country can be difficult. Hence, most organizations prefer taking the help of EOR services such as Skuad. Let us take a look at current trends that may impact the hiring cost in Ethiopia.
Cost of Living in Ethiopia
While the average cost of living in Ethiopia is 669 USD/29,000 ETB, it is much higher in the capital city of Addis Ababa, which is the hub of remote knowledge workers.
| Particulars
|
Monthly Cost in USD
|
Monthly Cost in ETB
|
| Cost of living per person (with rent)
|
669
|
29,000
|
| Rent and Utilities
|
328
|
14,300
|
| Food Expenses
|
232
|
1,065
|
| Transport Cost
|
55
|
2,386
|
While the average cost of living in Ethiopia is 669 USD/29,000 ETB, it is much higher in the capital city of Addis Ababa, which is the hub of remote knowledge workers.
Cost Of Living By City In Ethiopia
| City
|
Cost of Living in USD
|
Cost of Living in ETB
|
Average Rent in USD
|
Average Rent in ETB
|
| Addis Ababa
|
803
|
34,835
|
430
|
18,600
|
| Gondar
|
484
|
21,000
|
150
|
6,500
|
| Mekelle
|
512
|
22,000
|
212
|
9,200
|
| Awasa
|
390
|
17,000
|
132
|
5,700
|
Salary Structure for Various Roles in Ethiopia
The highest average monthly salary may go up to 39,700 ETB/915 USD. The average annual increment across industries is in the range of 3% to 9%. For example, professionals in the IT industry usually get a 9% yearly increment in Ethiopia.
Average Annual Salary Comparison By Industry
The data below provides the average annual salary in various sectors.
| Industries
|
Annual Salary in USD
|
Average Salary in ETB
|
| Finance & Banking
|
41,464
|
1,798,737
|
| Marketing and Sales
|
28,407
|
1,232,322
|
| IT and Programming
|
12,386
|
537,325
|
| Human Resources
|
9,739
|
422,487
|
| Agriculture and Fishing
|
5,106
|
221,541
|
| Health Care and Medical
|
4,938
|
214,249
|
| Public Sector
|
9,392
|
407,461
|
| Hotels and Tourism
|
13,693
|
594,023
|
| Management and Business
|
26,914
|
1,167,570
|
| Accounting and Administration
|
9,258
|
401,651
|
| Education
|
14,739
|
639,421
|
| Engineers & Technicians
|
29,926
|
1,298,195
|
| Legal Services
|
9,500
|
412,149
|
| Arts, Culture and Performance
|
37,128
|
1,610,613
|
| Manufacturing
|
11,759
|
510,118
|
Average Annual Salary Comparison By City
| City
|
Average Yearly Salary in USD
|
Average Yearly in ETB
|
| Addis Ababa
|
2,604
|
113,000
|
| Gonder
|
2,397
|
104,000
|
| Mekele
|
2,130
|
92,400
|
| Awasa
|
2,028
|
88,000
|
Employment Laws In Ethiopia
Ethiopian labor law protects both employer’s and worker’s rights equally. The factors that affect the labor laws are property rights, judiciary, taxation, and ease of doing business. Below are a few key points of Ethiopian Labor Law.
- Minimum Wage - There is no national minimum wage for the private sector; it entirely depends upon the employer and employees’ agreement.
- Working Hours - The maximum duration of working hours per week is 48 hours. Employers can decide to have shorter or longer work hours. However, the working time should not exceed 10 hours in a day.
- Overtime- Working overtime is permitted, provided the employer pays the worker more than their regular salary. The labor law clearly defines the percentage of overtime wages in different situations like working overtime during a rest day, overtime during night hours, or working on a public holiday.
- Holidays and Leaves - Employees in Ethiopia are entitled to take 16 paid leaves; employees who have more than five years of service are entitled to 18 days of paid leaves. In addition, there are 13 public and religious holidays.
Hiring in Ethiopia is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad experts to know more.
How Can Skuad Help You in Hiring in Ethiopia?
Skuad provides a global employment platform for employers looking to hire the best remote talent and expand their businesses across the globe. The digital EOR platform takes care of all critical aspects such as hiring talent, onboarding, global digital contracts, managing payroll, compliance, tax filing, and much more. Isn’t it great to have experts working for you across time zones and delivering excellent results without you worrying about the detailed and complex hiring process? For more details, Connect with Skuad Experts for more information.
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