British International Investment
17 December 2019

What does good practice in social risk management look like in Ethiopia?

Ethiopia is an increasingly attractive market for private sector investment and has witnessed some of the world’s fastest economic growth, with average GDP increasing approximately 10.3 per cent between 2007 and 2017. International businesses and private equity investors could play a pivotal role in supporting the country’s ambition to reduce widespread poverty and become a middle-income country by 2025. In doing so, there are specific social and contextual factors for sustainable business and investment practices in Ethiopia which must be considered.

Our new guidance note on good practice in social risk management in Ethiopia seeks to provide guidance for businesses and investors on addressing social and human rights risks within the country. Drawing on a series of interviews conducted with key private sector actors in Ethiopia including Diageo, H&M and PVH, this guidance also captures existing good practice of companies seeking to manage social risk. The Note is also intended to help catalyse further dialogue about how investors and businesses can more effectively manage social risks in Ethiopia.

The Country Profile explores the following themes:

  • The Business Case: why investors and businesses should focus on social risk management in Ethiopia.
  • Preparedness: how can investors and businesses better prepare themselves for engaging in contexts of heightened social and human rights risks in Ethiopia.
  • Managing Social Risks in Practice: how investors and Ethiopian and multinational businesses are navigating contextual challenges to manage social risks in practice.
  • Practical Tips and Advice: headline tips and advice for investors and businesses already operating in or considering operations in Ethiopia.

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