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Hire In Ethiopia

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: 112 million (as of 2019)

Gross Domestic Product (GDP): In 2019, the GDP (per capita) was 857.5 USD (2019)

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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