Ethiopia's decision to open investment sectors previously restricted to foreign capital has successfully attracted a significant number of international investors, according to the Ethiopian Investment Commission (EIC).
EIC Commissioner Dr. Zeleke Temesgen highlighted this achievement, noting that Ethiopia has registered commendable results over the past seven years of reform initiatives.
Commissioner Dr. Zeleke explained that the reform period saw the liberalization of sectors previously off-limits to foreign investors. This was facilitated by amendments to the investment law, which lifted restrictions on foreign participation in key areas.
He specifically mentioned that the Ethiopian Investment Board has now permitted foreign companies to engage in wholesale and retail trade, as well as import and export businesses. The government's broader strategy to open investment sectors that had been closed for many years, including notable steps in areas such as telecommunications and the introduction of the Special Economic Zone (SEZ) proclamation, has significantly boosted investment and encouraged large-scale foreign participation.
The EIC itself has demonstrated strong performance over the past nine months, the Commissioner reported. He cited a 2.4 percent growth in attracted Foreign Direct Investment (FDI) compared to the same period last year.
Quantifying the impact of the sector openings, Dr. Zeleke stated that following the liberalization of wholesale, retail, and trade sectors, the commission has already granted investment permits to 40 foreign investors, with another 36 applications currently in process.
Further facilitating investment, the Ethiopian Investment Board holds the authority to transform existing industrial parks across the country into Special Economic Zones, creating more favorable environments for foreign capital.
Additionally, since the Dire Dawa Free Trade Zone was inaugurated and began operations by Prime Minister Dr. Abiy Ahmed, the Investment Commission has actively worked to bring investors into the zone. To date, 11 investors have entered the Dire Dawa FTZ, and some are already importing goods.
According to ENA, the commissioner concluded by stating that the government's ongoing reforms in previously restricted sectors such as finance, telecom, and trade are enabling significant positive change and progress to be registered in the country's investment landscape.