Ethiopia attracts $3bn worth of FDI in 10 months

Addis Ababa, May 28, 2024 (FBC) – Ethiopia received 3 billion USD in Foreign Direct Investment (FDI) in the first 10 months of the current fiscal year, Ethiopian Investment Commission remarked.

Chief Commissioner of the Ethiopian Investment Commission (EIC) Ms. Hanna Arayasellasie said the commission has planned to attract 3.5 USD in foreign direct investment during this Ethiopian fiscal year.

“Over the last 10 months, the total FDI inflow into the country is about 3 billion USD. We are working towards meeting the annual goal. We expect this number to grow in the coming years.”

Noting we are a bit behind our annual target, but it has increased and showed improvement compared to last year, she said, adding “we are working hard to make sure that we meet our goal, but also to increase it for the coming year.”

Although there are sizable contributions from other parts of the world, China is the top source of foreign direct investment into the nation, accounting for almost 50 percent of all projects that come in, she indicated.

Moreover, the commissioner elaborated that the government has made significant investments in infrastructure, including roads construction, industrial parks development, among other efforts to attract more investments in to Ethiopia.

“The industry parks constitute a very important infrastructure that has been built for investors both foreign and domestic. We are providing ready-made facilities in terms of infrastructure services, so visitors can quickly come in and become operational.”

The commission is working closely with the private and government industrial park developers, she added.

“We have about five operational ones, including the government owned Industrial Parks Development Corporation. There are also private operators so we work with them in aligning our investment promotion efforts.”

The commission has been working to establish a one stop service where investors can get all licenses and permits that they need to operate in the country.

“We play that bridging role between investors and different government institutions. They are able to operate very quickly and then come into the country.”

The commission has been intensifying efforts to attract more investment as there is high interest from investors looking at various opportunities in Ethiopia, ENA reported.

“We have made a lot of strides over the last year; particularly there have been many changes in the policy environment to make Ethiopia a favorable destination for investment.”

Noting the trading sector which has been closed for foreign investors for a long time has just been opened, she said, adding “we are also looking at opening other sectors. But in addition to that, changes in the special economic zone that was just made also create a more conducive environment for investments.”

But it is not just the investment climate; we need to promote the investment opportunities within the country, by organizing various events in collaboration with pertinent stakeholders, Hanna underscored.