- Economy grows by 8% in each of past two years, FDI surges as barriers liftedADDIS ABABA – Ethiopia’s bold economic reform agenda is paying off, delivering robust growth and paving the way for greater foreign investment, Finance Minister Ahmed Shide said yesterday at the Invest in Ethiopia 2025 Business Forum.
The minister highlighted that since its launch in 2019, the Homegrown Economic Reform (HGER) Agenda has transformed Ethiopia’s economic landscape—enhancing business conditions, reforming state-owned enterprises, and mobilizing domestic resources. He also emphasized the growing role of the private sector and diversification of the country’s economic base.
“Ethiopia is now implementing the second phase of the HGER with decisive measures to address persistent macroeconomic challenges,” Ahmed said. “These include transitioning to a market-based foreign exchange regime, eliminating outdated regulations, easing account restrictions, and lifting mandatory foreign exchange retention rules.”
The minister underlined that these structural adjustments are essential for fostering a more open, competitive, and innovation-driven economy. He also noted that government revenues are on the rise, exports have doubled, investment is increasing across key sectors, and inflation has shown a downward trend.
Over the past two fiscal years, the Ethiopian economy has consistently grown by more than 8% annually, reflecting the impact of ongoing reforms and resilience in key industries.
Foreign Affairs Minister Gedion Timothiwos (PhD) echoed these remarks, noting that the removal of restrictive laws and policies has positioned Foreign Direct Investment (FDI) as a cornerstone of the country’s growth strategy. “Ethiopia is now a more attractive destination for investment in technology, knowledge-based ventures, and capital-intensive industries,” he said.
The government is actively promoting FDI in renewable energy, agribusiness, manufacturing, ICT, and infrastructure, offering new openings for global investors.
The two-day Invest in Ethiopia 2025 Business Forum aims to highlight these opportunities through strategic discussions with stakeholders, officials, and international partners.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD TUESDAY 13 MAY 2025
