The government of Ethiopia is actively seeking to attract trading partners so as to boost development in the East African country, and has launched a campaign to dispel the many negative stereotypes of the country.

A conference held last week to examine business opportunities in the country explained that Ethiopia is not filled with starving people and little infrastructure, but in fact has a thriving commercial centre in Addis Ababa, often termed the capital of Africa.

The government is eager to help investors in the country and, since 2001, has worked hard at encouraging foreign direct investment (FDI).

There are numerous tax incentives being offered to foreign investors, such as a zero tax rate on exports, and companies are being encouraged to invest in the sectors of mining; oil and gas; hospitality and tourism; infrastructure development; agriculture and import/export opportunities.

The country has reportedly eliminated much of the bureaucratic red tape that dogged its investors in the last and also boasts a corruption-free environment. The government has come down particularly hard on those charged with corruption in the past few years, even jailing a number of high-powered officials in this regard.

South Africa and Ethiopia currently have excellent political relations and trade between the two countries is increasing, albeit slowly.

Currently, the trade balance is greatly in South Africa's favour, but the Ethiopian government is working on making that gap smaller.

Last year, the Ethiopian economy, which is 85% reliant on agricultural products, grew at 11,6% and inflation was less than 3%.

In the last few years, FDI has started to increase substantially.