Political Instability Costs Ethiopia $300m

Nov 16 , 2019

The security situation in the country has caused the loss of 300 million dollars in foreign direct investment (FDI), according to the Ethiopian Investment Commission. Out of the one billion dollars the commission had targeted for the first quarter of this fiscal year, it only achieved 70pc. “Some investors who have already completed the preparatory procedures to implement the planned investment projects refrained from taking the next steps due to the worsening security situation in different parts of the country,” said Hanna Araya-Selassie, the vice commissioner. Despite this, it was possible to create 25,000 new employment opportunities in the first quarter alone. The expansion of industrial parks, the development of appropriate policy frameworks and their effective implementation are crucial factors to attract foreign investment into the country, said Hanna. The Commission plans to bring 4.1 billion dollars in FDI into the economy in the current fiscal year.