With an ongoing and sweeping economic reform and extensive efforts to improve public services, Ethiopia has positioned itself as the best investment destination for local and foreign investors.
In fact, since the onset of the reform, the government has fully been committed to pursuing a more open and competitive market. The increased liberalization and growing opening up will expand business opportunities for both domestic and international businesses. The macroeconomic reforms target structural bottlenecks, modernize the financial and telecommunications sectors, and encourage private sector participation.
Also, the improving situation and the growing government appetite to ensure lasting peace will make the country a reliable and preferable investment for doing business. These are gigantic boons to the country’s existing potential for investment. The abundant natural resources, productive manpower, and growing consumer population will surely entice more foreign direct investment and encourage local investors.
The country’s membership of new alliances like the BRICS and growing and expanding diplomacy with nations of all hemispheres and more ambitions to join the World Trade Organization and other associations will make the investment climate more conducive.
Every little thing happening in all frontiers will also ease doing business in the country. It is also imperative to mention that the nation’s digitalization work, tech-enthusiast government, oils the wheels for doing business.
The various initiatives introduced in the country also play a significant role in allure sizeable FDI into the country. The increasing traction to unlock national potential through Let Ethiopia Produce, ‘Bounty of the Basket’ (Yelemat Tirufat), Invests in Ethiopia, and other similar programs will help businesses to flourish.
One of the most encouraging developments in recent years has been the series of “Invest in Ethiopia” forums hosted both domestically and internationally. These platforms serve as a bridge between the Ethiopian government and global investors, offering insights, fostering dialogue, and highlighting tangible opportunities. These forums also provide transparency and a platform for reform-related updates, which are crucial in building investor confidence.
‘Invest in Ethiopia’, a High-Level Business Forum 2025, will be held next week. This forum is organized by the Ethiopian Investment Commission, and other development partners will be playing a key role in promoting and unlocking the great investment potential of the nation, as it draws over 700 local and foreign investors. These kinds of forums will also help collect policy recommendations, showcase lucrative business sectors, besides help forge strong business-to-business relations.
“Let Ethiopia Produce,” launched by Prime Minister Abiy Ahmed, aims to scale up the performance of the industry sector and productivity and competitiveness through curtailing bottlenecks, strengthening innovation, import substitution, and enabling the sector to play a role in the national economic development efforts. Launched in 2022, ‘Bounty of the Basket’ also aims to bring bold and transformative change in terms of agricultural production and productivity.
Ethiopia’s agricultural potential, powered by vast arable land and a youthful workforce, is immense, yet underutilized. Continued support and expansion of these forums will be vital in sustaining momentum and drawing in high-impact, long-term investments. The government ought to continue its resolve to reform and step up efforts to sustain the improving national security, which are the must have prerequisite for investment.
Having so much to offer to investors, Ethiopia will continue to be a leading investment hub in Africa. And investors should also seize the opportunity to have a slice of the expanding opportunity and growing economy.
THE ETHIOPIAN HERALD FRIDAY 9 MAY 2025
