Ethiopia Attracts $3.8b Foreign Investment Despite Export Setbacks

Jul 21 , 2024

Ethiopian Investment Commission (EIC) secured a substantial increase in foreign direct investment (FDI) during the ended fiscal year, amidst declining export earnings from industrial parks. Commissioner Hanna Arayaselassie announced over 3.8 billion dollars in FDI, reflecting an 11.5pc growth compared to the previous year. Though falling short of the annual target by 20pc, Hanna expressed optimism about the upward trend, solidifying Ethiopia's position as a leading FDI destination in Africa. However, challenges persist. The Commissioner acknowledged that export revenues from industrial parks fell below expectations due to Ethiopia's exclusion from the African Growth & Opportunity Act (AGOA). The Commission actively participated in international investment events and targeted investors from diverse countries. The Ethiopian Investment Board opened new sectors for foreign investment and implemented policy changes to make Special Economic Zones (SEZs) more attractive to foreign investors. About two-thirds of the licenses given out in the ended year were in the manufacturing sector. Hanna plans to diversify the sector in the coming fiscal year. She is determined to further enhance investment promotion and raise FDI to 4.5 billion dollars in the fiscal year, by implementing new regulations, streamlining logistics and incentives, and developing a digitisation plan.