The Ethiopian Investment Commission (EIC) Chief Commissioner Mr. Zeleke Temesgen disclosed that the Commission has identified 2,507 major international companies as key targets for investment in Ethiopia, marking a strategic shift in the country’s approach to attracting foreign direct investment (FDI). This move is part of Ethiopia’s broader economic reforms aimed at unlocking opportunities in key sectors and strengthening its position as an investment hub in Africa.
Zeleke Temesgen (PhD) sat down with the Prime Minister Office Press Secretary Ms. Billene Seyoum for the latest episode of “Ethiopia In Focus”, an official conversation series hosted by the PM Office Press Secretary.
The EIC Chief Commissioner emphasized the importance of targeted investment promotion over general outreach. Unlike previous strategies that focused on broad investment promotion, Ethiopia is now pursuing a more deliberate approach, identifying specific global firms that align with its economic priorities. These companies, spanning five key sectors—manufacturing, agriculture, ICT, tourism, and energy—have been selected based on their potential to add value to Ethiopia’s economy through job creation, skill and knowledge transfer, and export expansion.
Zeleke highlighted that Ethiopia’s investment climate remains a “virgin market,” meaning the country has not reached saturation in key industries, offering premium returns for investors. The government’s renewed commitment to economic reform has further bolstered investor confidence, addressing longstanding concerns such as foreign exchange shortages and ease of doing business.
One of the most significant policy shifts has been the liberalization of the foreign exchange regime. In the past, foreign investors faced challenges in accessing forex, repatriating profits, and reinvesting earnings due to strict financial regulations and shortages, he said.
However, the latest macroeconomic reforms have narrowed the gap between the official exchange rate and the parallel market, making forex more accessible to investors. Foreign firms operating in Ethiopia’s industrial parks and special economic zones can now retain up to 100% of their foreign currency earnings, a major departure from previous policies. Additionally, the waiting period for dividend repatriation has been eliminated, removing a major bottleneck that previously discouraged investment.
“The rigorous reforms in the sphere of Ethiopia’s investment have been tremendous, bringing about achievements in terms of Foreign Direct Investment (FDI) and confidence building mechanism for investors. If you compare the first quarter of this fiscal year with the same previous period, we have witnessed around 6.4% FDI increment in Ethiopia. This is a positive spillover effect of the reform,” Zeleke noted.
He asserted that Ethiopia’s attractiveness as an investment destination is further enhanced by its membership in regional trade agreements. As a signatory to the African Continental Free Trade Area (AfCFTA) and a member of the Common Market for Eastern and Southern Africa (COMESA), Ethiopia offers investors access to a broader African market beyond its borders.
The EIC chief pointed out that setting up operations in Ethiopia allows businesses to tap into preferential trade benefits and export to other African nations with reduced tariffs. The country is also in negotiations to join the World Trade Organization (WTO), a move that could further integrate it into the global economy.
In addition to improving its legal and economic frameworks, Ethiopia is actively working to create a stable and predictable business environment. The introduction of the Special Economic Zones Proclamation, which allows industrial parks to operate as multi-purpose economic hubs, has been a game-changer. The newly designated Dire Dawa Special Economic Zone, for instance, facilitates various commercial activities, including manufacturing, logistics, and trade, offering investors greater flexibility in their operations, he mentioned.
Mr. Zeleke reiterated that Ethiopia is looking for responsible investors who will contribute to the country’s sustainable growth rather than exploit its resources.
According to him, his government’s goal is to establish long-term partnerships with firms that align with its national priorities, including employment generation, export diversification, and fostering linkages between local and foreign businesses.
As Ethiopia continues its economic transformation, the government remains committed to enhancing the ease of doing business, streamlining bureaucratic procedures, and ensuring legal and policy predictability for investors. With a renewed focus on targeted investment attraction, improved forex policies, and integration into regional and global trade networks, Ethiopia is positioning itself as a premier investment destination in Africa, the EIC Chief Commissioner added.
Source: FMC
