Service Launches First National Business Census While Private Sector Remains Concerned

Service Launches First National Business Census While Private Sector Remains Concerned

Oct 18 , 2025. By NAHOM AYELE ( FORTUNE STAFF WRITER )

A federal agency is embarking on its first comprehensive business census, a digital sweep to count every economic establishment in the country. Backed by over two billion Birr allocation and a 40,000-strong army of university graduate enumerators, the initiative intends to map businesses large and small, licensed or informal, across all sectors and regions.

A federal statistics service has kicked off a sweeping census to count every business in the country, the first attempt by authorities to document the full range of economic establishments.

Led by Beker Shale (PhD), director general of the Ethiopian Statistical Services (ESS), the project was launched earlier this month and is expected to run until mid-April. It plans to capture a comprehensive picture of economic actors, from large manufacturers to informal traders, regardless of their size or licensing status. The Agency intends to register every supplier, retailer, wholesaler, importer, exporter, and manufacturer.

Beker hopes to shed light on the number, size, location, and sectoral breakdown of businesses, as well as their employment levels and capital structure. Officials believe the data will help address long-standing gaps in national statistics and provide a clearer view of the economy’s composition.

“This census is meant to determine the exact number of businesses operating in the country and quantify their contribution to the economy,” said Safi Gemedi, head of public relations and communication at ESS.

The scale of the project is unprecedented. While ESS has routinely conducted surveys and compiled administrative records, this marks the most extensive effort to capture the full scope of the national business landscape. The federal government has allocated over two billion Birr for the work. The Agency recruited 40,000 university graduates to serve as enumerators, trained them over a month, and equipped them with tablets, making the operation fully digital and paperless. According to ESS, close to 10,000 enumerators have been deployed in Addis Abeba where around 60pc of the country’s businesses are located.

Once collected and verified, the data is expected to be made available to public officials and the general public.

Despite the scale and ambition, the project has faced a rocky rollout. Business owners and trade groups say they were not sufficiently informed or consulted before the launch, leading to confusion and suspicion across the private sector.

“Businesses are already sceptical about many issues and will not easily share private details with people they don’t know,” said Zahara Mohammed, president of the Addis Abeba Chamber of Commerce & Sectoral Association.

She criticised the Agency for failing to engage the business community in advance and warned that this could undermine the accuracy of the data. According to Zahara, many business owners are hesitant to cooperate, partly due to broader frustrations with tax authorities.

“Understanding the purpose and potential benefits would encourage cooperation,” she said.

She urged the Agency's officials to partner with business associations and media platforms to raise awareness before the enumeration process began. Her scepticism is shared by others in the business community. Leaders of the Ethiopian Chamber of Commerce & Sectoral Association also reported receiving little information about the census.

For small business owners like Selam Yasin, who runs a clothing shop in the Mercato, the census has been a mystery.

“I'm curious but also a little worried about what it means,” she said.

According to Selam, collecting data on small traders could be useful if it leads to recognition or support, but she remains uncertain about the motive.

“If they ask many questions like the tax people, I hope it won’t lead to more expenses,” she said.

ESS officials have defended the rollout and pushed back against the criticisms. Safi disclosed that his Agency had used 13 media platforms in six languages to promote awareness of the census. He argued, stating ESS's legal mandate to collect economic data, that participation is a civic duty.

“The information will remain strictly confidential,” he said. "The objective is solely statistical, to inform economic policy, planning, and research. It'll not be used for tax enforcement or regulatory purposes.”

Ethiopia’s economy remains undocumented mainly outside the formal sector. Much business is conducted in informal and semi-formal environments, with limited data available to guide decision-making. Experts say if successful, the census could mark a turning point for national planning and private investment. A comprehensive, reliable database of businesses could inform industrial policy, financial inclusion strategies, and sector-specific development programs. Experts, such as Samuel Hailu, a former ESS staff member and now the secretariat of the Ethiopian Statistical Association, support the initiative despite its communication shortcomings.

According to him, the census is long overdue. Samuel noted that while ministries have records of licensed businesses, data on informal and unregistered firms has been patchy at best.

“This census will allow the country to know the total number of establishments and the sectors they operate in,” he said. “It'll support the government in designing effective policies and conducting research.”

Samuel acknowledged that the census had been delayed for several years and urged that transparency would be key to its success.

“Public trust is essential,” he said. “The Service should work to build confidence and close the information gap through effective communication.”

PUBLISHED ON Oct 18,2025 [ VOL 26 , NO 1329]