Ethiopia's FDI Falls by $700m

Aug 8 , 2020

Ethiopia attracted 2.5 billion dollars in foreign direct investment (FDI) in the just ended fiscal year, a steep decline from the 4.4 billion dollars registered three years ago. Last year's FDI flow was also 1.6 billion dollars short in absolute figures from the target set by the Ethiopian Investment Commission. In the past few years, Industrial Parks have attracted huge investments, but it has been difficult for these enterprises to stay fully operational due to the pandemic, according to Anteneh Alemu, deputy commissioner at the Commission. "This was especially true for the fourth quarter of the year," he said. Political instability in the country and the foreign exchange crunch were also cited as contributing factors by the Commission along with the anticipated elections. At the end of last year, the Commission had reported that the political instability had cost 300 million dollars from the one-billion-dollar target in the first quarter of the year. The Commission plans to focus on the pharmaceuticals industry and fast-moving consumer goods to spark investment in the country this year.


Geda Special Economic Zone Receives Prospective Tenants

East African Holding and Ethio-Chicken have been shortlisted to invest in the Geda Special Economic Zone(GSEZ), located in the tri-state area shared by Mojo, Adama, and Shashemene cities within the Oromia Regional State. The two companies were selected from 120 investors who showed interest in acquiring space in one of the largest SEZs in Africa. Close to 404hct of land has already been developed in the expansive economic zone, out of a potential 24,000 hectares, with lease prices set between...


Standard Institute Revamps Fees, Board Restructuring

The Ethiopian Standards Institute (ESI) is set to introduce fees for standards sticker, establish a new governing board, and address collaboration with other regulatory bodies. The Institute plans to strengthen its financial standing by charging fees for standards and product certification services to support its operations and annual budget. A key change involves replacing the current Council of Standards with an 11-member Board of Directors. The Minister of Trade & Regional Integration...


Safaricom Ethiopia Rolls Out its Network to Tigray

With 125 self-built towers, Safaricom Ethiopia has launched its operations in the Tigray Regional State. Executives disclosed plans to invest in an additional 166 towers and expand their reach to the remaining towns. "This is the most exciting milestone in Tigray since the return of social services," said Getachew Reda, president of the Interim Regional State Administration. In July 2021, the consortium-backed telecom giant entered Ethiopia's market, historically dominated by state-owned E...