Ethiopia is ranked the third most attractive investment destination in Africa for the 2023/24 fiscal year, according to the Ethiopian Investment Commission (EIC). This improvement in the investment climate is attributed to a series of reforms.

Hana Arayaselassie, the EIC Commissioner, stated that government efforts were paying off. The "Invest Ethiopia" conference held in the fiscal year attracted potential investors from across the globe, with over ten signing memorandums of understanding. Three of these investors have already begun operations in the country. A key policy change has been allowing duty-free imports of capital goods and raw materials for the manufacturing sector. This has increased foreign direct investment (FDI) inflows.

Saudi Arabia, in particular, has shown strong interest in Ethiopian agriculture, driven by its need for food imports. Ethiopia is responding by prioritizing this sector, aiming to increase both production and the value of exported agricultural products.

Ethiopia attracted USD 3 billion in Foreign Direct Investment (FDI) during the first 10 months of the current fiscal year. This figure is expected to put the Ethiopian Investment Commission on track to meet its annual target of USD 3.5 billion. Although contributions come from diverse sources, China remains the leading investor, responsible for nearly half of all incoming projects.

Source: Addis Zemen