Ethiopia attracted USD 3 billion in Foreign Direct Investment (FDI) during the first 10 months of the current fiscal year. This figure is expected to put the Ethiopian Investment Commission on track to meet its annual target of USD 3.5 billion. Although contributions come from diverse sources, China remains the leading investor, responsible for nearly half of all incoming projects.
The EIC credits frequent business forums and diplomatic outreach for a surge in FDI this year. Commissioner Hanna Arayaselassie highlighted the creation of 75,000 jobs in industrial parks fueled by foreign investment. The EIC is actively negotiating with companies like those in a recent Pakistani delegation to further capitalize on this trend.
Ethiopia currently leads Eastern Africa in FDI inflow, but the EIC sees even greater potential. The government claims it supports foreign firms with incentives, infrastructure upgrades, and a reliable energy supply. Hanna emphasized the importance of infrastructure development to help businesses given Ethiopia’s abundant resources and workforce. Ongoing policy reforms are expected to streamline investment processes further.
Source: The Ethiopian Herald and Fana BC
