Corporate Finance - Ethiopia

Ethiopia

The revenue in the Corporate Finance market is projected to reach US$0.53bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.51% resulting in a projected total amount of US$0.60bn by 2029.
The average transaction value in the Corporate Finance market amounts to US$164.20m in 2024.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (US$130.10bn in 2024).

Market

Region

Region comparison

Currency

Analyst Opinion

The Corporate Finance market in Ethiopia is experiencing significant growth and development.

Customer preferences: Ethiopian customers in the corporate finance market are increasingly seeking more diverse and sophisticated financial products and services. They are showing a growing interest in investment opportunities, risk management solutions, and access to international financial markets.

Trends in the market: One notable trend in the Ethiopian corporate finance market is the increasing presence of foreign financial institutions and investors. This trend is driven by the government's efforts to liberalize the financial sector and attract foreign investment. As a result, there is a growing competition among local and international players, leading to innovation in financial products and services.

Local special circumstances: Ethiopia's unique economic landscape, characterized by a growing middle class and increasing urbanization, is shaping the corporate finance market in the country. The government's focus on infrastructure development and industrialization is creating new opportunities for financing projects and investments. Additionally, the country's strategic location in the East African region positions it as a hub for regional trade and investment, further fueling the growth of the corporate finance sector.

Underlying macroeconomic factors: The stable economic growth, government reforms to improve the business environment, and the increasing access to financial services are key macroeconomic factors driving the development of the corporate finance market in Ethiopia. The country's efforts to diversify its economy and reduce dependency on agriculture are attracting both domestic and foreign investors, leading to a more dynamic and competitive corporate finance landscape.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.