Addis Ababa is the capital city of Ethiopia. Addis Ababa has the status of both a city and a state. It is where the African Union and its predecessor the OAU are based. The economic activities in Addis Ababa are diverse. Ethiopia is in Eastern Africa, west of Somalia. The climate is tropical monsoon with wide topographic-induced variation. The official language is Amharic. This is the most widely spoken language in the capital Addis Ababa. English is the second official language and is relatively widely understood in Addis Ababa, especially among the more educated population. Oromiffa and Tigrinya are other commonly used Ethiopian languages. An understanding of Arabic, French and Italian is also common in business circles. Few people outside the capital and other major towns speak or understand non-Ethiopian languages. The main religions are Christianity and Islam. The economy of Ethiopia is based on agriculture, which accounts for half of gross domestic product (GDP), 60% of exports, and 80% of total employment. Ethiopia has virtually no private sector business at all. Despite recent improvements, with an exploding population Ethiopia remains one of the poorest nations in the world. In Ethiopia, first names are followed by the first name of the individuals father. There are no "surnames" passed on to successive generations. Expatriates should take care during conversation to maintain a reasonable distance, not to make prolonged eye contact, and to keep hands out of pockets. Expatriate business dress is typical conservative, usually comprising a suit and tie for men, while women should wear long, dark, loose-fitting dresses and conservative shoes and use minimal perfume and makeup. As a significant proportion of the population is Muslim, the cultural sensitivity to the role of women in Islamic culture is advisable. Ethiopian women have not yet achieved equal status in the public and business sectors. Expatriate women may encounter conservative, negative attitudes in business meetings and may find themselves regarded as inferior or even ignored completely. The security risk for expatriates in Ethiopia is medium, but high for the majority of the border areas. Risks include terrorism and tensions mainly along the borders, as well as low levels of serious and violent crime throughout Ethiopia. The currency of Ethiopia is the Ethiopian Birr (ETB). Credit cards are only accepted at a limited number of places in Addis Ababa. The economy is largely cash based. Medical facilities in Addis Ababa are reasonable for basic care of minor health problems, elsewhere medical facilities are extremely poor. Dengue and Yellow fever have been reported. Malaria is common below an altitude of 2,000m (Addis Ababa is 2,400 metres above sea level). Bilharzia is present. Water-borne diseases are common. The population of Addis Ababa is 4.6 Million (Metro) (2018 est.), while the inflation rate (CPI) is 10.4% for Ethiopia as at December 2018. Xpatulator Hypothetical Tax for Ethiopia is based on the current personal income tax rates which are progressive up to 35%.
Cost Of Living
The cost of living for expatriates / professional migrants in In Addis Ababa, the cost of each basket, based on local prices, compared to the international average, is categorized follows (Exact cost of living percentages only available in personalised reports): Addis Ababa as at 1 January 2019 is high in comparison to other places in the world. 1) Alcohol (where available) & Tobacco: Very Low 2) Clothing: Low 3) Communication: Very High 4) Education: Average 5) Furniture & Appliances: Very High 6) Groceries: Average 7) Healthcare: Low 8) Household Accommodation: Very High 9) Miscellaneous: Very High 10) Personal Care: Average 11) Recreation & Culture: Low 12) Restaurants Meals Out and Hotels: Low 13) Transport: High Addis Ababa is for example 12.9% more expensive than Houston TX for groceries, 58.1% more expensive for household costs than Kuala Lumpur, and 56.4% more expensive for transport costs than Dubai. The hardship premium for Addis Ababa for an expat from Perth, is for example 30%, i.e. host location (Addis Ababa) premium of 40% minus home (Perth) location premium of 10%. Addis Ababa is ranked as a extreme hardship location. Want to know more about cost of living, hardship (quality of living) or expat salary in Addis Ababa? Register subscribe to your home location and Addis Ababa and run your personalised reports.