
Ethiopia, one of the fastest-growing economies in Africa, is rapidly emerging as a leading destination for international investors, both newcomers who seek to commence business or expand their operations.
Propelled by comprehensive policy reforms, strong industrial strategies, the adoption of market-oriented approaches and the creation of a more business-friendly environment, the country is working actively to attract Foreign Direct Investment (FDI).
These efforts aim to enhance competitiveness, boost productivity across key sectors, and foster a stable, predictable, business environment.
As a result, following a series of strategic initiatives, Ethiopia’s efforts to attract global investors are yielding remarkable progress. For instance, according to the Ethiopian Investment Commission, the number of investors has seen increment and the country secured close to 1.2 billion USD in foreign direct investment (FDI) during the first four months of the current fiscal year. This investment surge comes on the heels of more than 80 reforms implemented over the past six years, designed to simplify business procedures.
In line with its broader economic liberalization agenda, the government continues to take decisive steps to promote foreign participation across key industries. As part of these efforts, the Ethiopian Investment Commission has issued 40 investment permits to foreign companies engaged in export, import, retail, and wholesale trade. These measures underscore Ethiopia’s commitment to fostering a more open, competitive, and investor-friendly business environment.
Accordingly, the Commission has demonstrated robust performance over the past nine months, registering a 2.4 percent increase in foreign direct investment compared to the same period last year.
Speaking at a press conference where he announced that the Invest in Ethiopia High-Level Business Forum is scheduled to take place on May 12–13, Ethiopian Investment Commissioner (EIC), Zeleke Temesgen said that Ethiopia is working to convert its vast potential into tangible outcomes by improving logistics, encouraging public-private partnerships, and connecting international buyers with local producers.
The Commissioner stated that, as part of this strategy, the Ethiopian Investment Commission has launched a campaign targeting over 3,000 internationally recognized companies to invest in Ethiopia, aiming to boost both foreign direct investment and local participation in manufacturing.
It is clear that Ethiopia’s strategic geographic location, combined with its affordable and reliable electricity supply, positions the country as a highly attractive destination for Foreign Direct Investment (FDI). What is more, its proximity to key regional and global markets—including the Middle East and other vital trade corridors—further enhances its competitive advantage. Equally important, the Ethiopian government’s commitment to offering tax incentives and fostering a business-friendly environment create an ideal foundation for sustainable, long-term investments.
In this regard, the Invest in Ethiopia 2025 forum, that is anticipated to attract a number of participants from across the globe, serves not only as a platform for dialogue, but also as a dynamic opportunity for business leaders to engage deeply in Ethiopia’s evolving investment landscape, offering insights, fostering strategic partnerships, and unlocking potential in one of Africa’s most promising emerging markets.
In this context, seizing investment opportunities in Ethiopia yields substantial mutual benefits—fueling economic growth, job creation, and infrastructure development for the country, while providing attractive returns, access to untapped markets, and enduring value for foreign investors.
With its strategic location and reform-driven development agenda, Ethiopia continues to stand out as a compelling destination for forward-thinking investors.
THE ETHIOPIAN HERALD WEDNESDAY 7 MAY 2025