The Ethiopian Investment Commission (EIC) has reported a remarkable 12% increase in Foreign Direct Investment (FDI) flows over the past three months, signaling a robust recovery in investment activities.
A key reform allowing foreign wholesalers and retailers to operate within the local market has proven particularly attractive to investors. EIC Deputy Commissioner Zeleke Temesgen (PhD) has noted, "About 72 investors have expressed interest in the newly opened sectors; 42 aim to engage in importing commodities, while 31 seek to invest in the export sector." So far, 22 proposals have been submitted, with 18 investors already licensed to commence operations.
It is to be recalled in a recent speech delivered to the combined assembly of the House of People’s Representatives and the House of Federation, President Taye Atseke-Selassie set forth an ambitious vision for the nation’s economy in the upcoming fiscal year. He forecasted a robust growth rate of 8.4%, with expectations that value-added exports will soar to five billion USD, while total export revenues are projected to reach an impressive ten billion USD.
Zeleke emphasized the surge of Chinese investment following recent reforms, which have played a pivotal role in enhancing Ethiopia’s economic landscape through increased capital influx, job opportunities, and technological progress.
Currently, Ethiopia hosts approximately 3,303 Chinese projects, collectively valued at 8.5 billion USD. EPA reported that since 2022, the licensing of 322 new Chinese investors has marked a notable uptick in their engagement, leading to the creation of 325,470 jobs and establishing China as the foremost source of foreign direct investment in the country. The Eastern Industrial Park in Dukem, which houses 153 manufacturing companies, is predominantly occupied by these Chinese enterprises.