Ethiopian Ministry of Finance disclosed Monday the country is making significant strides in positioning itself as a premier destination for foreign investment.
During the ongoing Invest in Ethiopia 2025 High-Level Business Forum, Ethiopia is deepening dialogue with investors, detailing reforms to unlock untapped potential.
Invest in Ethiopia 2025 High-Level Business Forum, which has attracted participation from 59 countries, has seen over 1,600 applicants—including 1,203 local and 422 international—of whom nearly 1,000 have been approved to participate. This diverse gathering underscores global confidence in Ethiopia’s reform agenda and growth prospects.
Throughout the forum, high-level officials and representatives from key institutions engaged in in-depth discussions about Ethiopia’s strategic reforms and future prospects. Among those participating in the first panel were Ethiopian senior government Officials, authorities from the World Bank and China Communications Construction Company (CCCC).
A central theme of today’s panels was the government’s broader strategy to diversify growth sources across sectors such as mining, tourism, ICT, and manufacturing. Ethiopian State Minister for Finance,. Eyob Tekalign, highlighted that about 80% of recent investments have come from domestic resources, with Ethiopia’s sovereign wealth fund now exceeding USD40 billion. The government’s thoughtful approach emphasizes private sector leadership and prudent public investments to ensure sustainable economic development.
Simultaneously, Ethiopia’s commitment to macroeconomic stability and comprehensive financial sector reforms. Ethiopian National Bank Governor, Mamo Mihretu, on his part, outlined Ethiopia’s bold reform agenda under Prime Minister Abiy Ahmed’s leadership, emphasizing efforts to stabilize currency, liberalize foreign exchange, and control inflation. Since July 2024, these reforms have yielded impressive results: exports have doubled, central bank reserves tripled, and remittances increased by 25%. Notably, Ethiopia will operate without central bank financing for the first time in over a decade, signaling strong fiscal discipline.
Legal and regulatory reforms also played a key role in today’s discussions. Minister of Justice, Hanna Arayaselassie, detailed the 2020 Investment Law, which opened nearly all sectors to foreign investors, reinforced protections against expropriation, and introduced mechanisms for dispute resolution.
The establishment of Special Economic Zones and an investor grievance system through the Ethiopian Investment Commission exemplify Ethiopia’s efforts to create a more investor-friendly environment. These reforms are complemented by ongoing legislative updates and reforms to streamline regulations and reduce operational complexities.
The high-level Business forum identified support from development partners as pivotal to Ethiopia’s reform journey. Sherin Varkey of the World Bank highlighted their role in providing policy advice, technical assistance, and risk mitigation tools—such as blended finance and public-private partnership frameworks—to help unlock private sector potential and build institutional capacity.
From the private sector, insights from Wen Yingzheng, CEO of CCCC and the China Chamber of Commerce reflected confidence in Ethiopia’s long-term prospects. While acknowledging challenges like regional security risks and foreign exchange shortages, he praised the government’s strategic efforts to address these issues through ongoing dialogues and reforms. For example, a recent high-level engagement in April 2025 led to tangible improvements in finance, taxation, customs, and labor-related processes within just 40 days, exemplifying Ethiopia’s commitment to creating a conducive investment climate.
Looking ahead, discussions also covered Ethiopia’s flagship initiatives such as the Ethiopia Investment Holdings, Africa’s largest sovereign wealth fund, and its active engagement in the African Continental Free Trade Area (AfCFTA). These efforts aim to expand market access, bolster competitiveness, and attract investment across the continent.
State Minister Eyob Tekalign reaffirmed Ethiopia’s unwavering dedication to transforming its economy over the coming decades. He emphasized that the country’s key strength lies in the collective commitment across all levels of society to realize a shared vision of prosperity. “We need partners for the long haul,” he said, inviting investors to join Ethiopia’s journey of development and reform.
As the forum continues, it remains a vital platform for fostering dialogue, addressing investor concerns, and reinforcing Ethiopia’s promising outlook as a country open for business and committed to shared growth.