-Reforms attracting more FDI
ADDIS ABABA – Foreign and domestic investors highlighted the benefits of economic reform measures in reconsidering investment in Ethiopia.
Foreign and domestic investors held a panel discussion yesterday to share their experiences on the second day of the Invest in Ethiopia 2025 High-Level Forum.
East African Trading Holding PLC CEO Eliab Getachew said that the recent macroeconomic reforms in Ethiopia are encouraging particularly in areas being liberalized such as telecom, banking, the capital market, and others, which are all positive signs for advancing a private sector-led economy.“We witnessed the changes, we are really happy to be part of the reform,” he said.
According to him, there is much to be done to attract more investments to the country, such as streamlining regulations, and strengthening the collaborative spirit, trust, and partnerships among companies, which are critical to closing gaps and easing the process of doing business.
One of the panelists, Huajian Group CEO Zhang Huarong, said that Ethiopia’s comprehensive economic reform measures and the current global economic climate have led some foreign investors to reconsider investment in the country. Service-providing institutions have modernized their operations through the use of technology.
For his part, Raval Steel Managing Director ShyamRaval stated that there are many investment opportunities in Ethiopia. “Over the past five to ten years, we investors saw a lot of changes filling infrastructural gaps. One of the biggest opportunities coming into Ethiopia is a growing demand base.”
The country has undertaken many reforms over the past few years. In particular, the allowance of land leases to foreign investors has contributed to the influx of FDI, he added.
Over the past few years, there has been consistent GDP growth of 7 to 8%. If the trend continues, the next ten years seem likely to follow the same trajectory. Ethiopia is one of the few African countries registering such a high growth rate.
There are many investment opportunities, including a strengthened public-private partnership (PPP) framework, large infrastructure projects, a strategic location, implemented reforms, and more. These developments are expected to lead to economic growth, he indicated.
Eng. Muluken Mitiku from OVID Real Estate also underscored that the homegrown economic reform agenda, macroeconomic reforms, PPP modalities, and other initiatives are shaping the country’s economy and boosting private sector growth.
His company introduced a special aluminum formwork technology that enables the construction of buildings within ten and a half months. It offers advantages in reducing construction costs and delivering houses at affordable prices.
The government has helped investors access various financial support mechanisms from multiple sources, enabling access to international finance as well. Through this, construction can be managed efficiently, and houses can be produced and delivered, he noted.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD WEDNESDAY 14 MAY 2025
