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.



Women around the Koshe area hunt through piles of trash to find scraps of metal to sell. With close to three million people unemployed in the country and a headline inflation of 33pc, unskilled labour is in little demand. Ethiopia has an adult literacy rate of 51pc, with fewer numbers going past high school. Less than three percent of 12th-grade students made it to universities this year while the rest were at the mercy of remedial exams...



An old wooden car that was part of a commercial campaign by a furniture company around the Beherawi Theatre area. Ethiopia's forest coverage to national land size has been registered at 15pc to the latest data by the World Bank. The current Prime Minister Abiy Ahmed launched an initiative labelled 'Green Legacy' to plant five billion trees in 2020 claiming an 83pc success...



A young boy attempts to pull a piece of cloth from an overloaded pickup truck around the Ayer Tena area. Observing an unsupervised child on the streets of the capital has become a common sight, with sporadic conflict across the country creating nearly four million internally displaced people. Despite the last census having been conducted 16 years ago, the population of the country is estimated at 120 million...