The economy of Ethiopia is based on agriculture, which accounts for halfrnof gross domestic product (GOP), 60% of exports, and 80% of totalrnemployment. Dependent on a few varieties of crops like coffee and oilrnseeds for its foreign exchange earnings and reliant on imported oil,rnEthiopia lacks sufficient foreign exchange. Now days, business isrnchanging fast in Ethiopia. About 10 years ago, there were virtually nornforeign private companies in the country. Today, foreign investors arernembraced, a gesture of the goodwill and openness of the current profusenessrnregime. Attracting foreign direct investment (FDI) is a majorrnpriority of the government. Ethiopia's comparative advantage liesrnprimarily in its abundant, low-cost, disciplined and trainable labor force,rnthe size of its domestic market, and the numerous river basins affordingrngreat potential for irrigation and hydropower generation. Ethiopia'srnclimate and proximity to the Middle East, Europe and other marketsrnprovide opportunities for investment in cut flowers and high-value fruitrnand vegetable production. A number of cut flower and horticulturalrnenterprises have started exporting successfully over the past few years.rnThis study will see the prospects Ethiopia has to offer foreign investorsrnon the floriculture field but will mainly focus on the problems, such asrnthe quality of the infrastructure, especially means of transportation,rnelectricity and telephone services as well as cumbersome administrativernprocedures. More emphasis is given on the assessment of thernproblems, which if not timely solved might hinder the country fromrnbeing competitive on the global market of the sector which is dominatedrnby Netherlands, Colombia and Ecuador as well as Kenya Zimbabwe andrnZambia the African forerunners, which have realized tremendousrnachievements in the sector lately.