In spite of many challenges that are push factors for investment in the country and the region, Ethiopia has continued to attract foreign investment. This is a clear indication that the actions the government has been taking to incentivize foreign investors are out weighing the push factors and winning the heart of those who eye on Ethiopia’s rich investment potential.
Peace and stability is indeed mandatory for an investment to flourish. Especially it is one of the primary factors raised when talking about attracting foreign investment. The conflict that raged throughout Ethiopia in different times indeed had affected foreign investment flow. Yet the volume of investment flow to the country kept a good momentum. This shows that the country was able to build a resilient environment for investment.
Accordingly, Ethiopia’s investment flow during the 2022/23 period was around 3.4 billion USD which is a big volume compared with the long time trend of foreign investment to the country.
The flow of investment to the country is also showing positive gesture as people from various corners are showing interest to embark on investment in Ethiopia. For instance, Indian Ambassador to Ethiopia recently held talks with Minister of Agriculture to emphasize on areas of cooperation in investment and agriculture in Ethiopia.
The country is also making itself more suitable for foreign direct investment. If Ethiopia can attract this much investment with the already existing investment framework and overall national situation it is easy to imagine that potential to grow as the country is putting in place many new directives that can have positive effect on the benefit foreigners can obtain.
For instance, one of the biggest endeavors in boosting foreign investment in Ethiopia is the operationalization of the Dire Dawa free trade zone. The free trade zone is a pioneer sector where the country can exploit the untapped potential of those investors who are well experienced in working in free trade zones for decades in various countries.
In addition to the Diredawa Free Trade Zone, the country has also launched the Gadaa Special Economic Zone which avails special opportunities for investors who aspire to work and prosper in diverse sectors that the central part of the country can avail.
Alongside this the country is now well experienced in the development and management of industrial parks as it is reaping a lot of benefits from the operational industrial parks in various parts of the country.
In terms of infrastructure the government of Ethiopia always works with due commitment to launch more electric power sources to supply affordable power for investment projects. It is well known that the country is highly competitive in its power supply both at home and neighboring countries which is enabling itself as well as the neighboring countries to attract more investment.
Concerning the legal framework for foreign investment the government is continually revising and improving laws and policies to make the country more open and favorable destination where foreign investors achieve enormous success. For instance, the latest developments in the financial sectors of the country are the National Banks descion to issue directive that allows the first securities exchange in the country. This maiden sector in the country is believed to spiral the development of the country’s financial sector especially as there is a big possibility of allowing foreign companies experienced and interested in it. Furthermore the country is mulling over allowing foreign financial institutions or banks to invest in the country which would be a great stride towards opening up the sector for foreign actors.
In conclusion, Ethiopia’s ongoing efforts to facilitate investment process and create a conducive environment for foreign investors demonstrate its commitment to fostering economic growth and development. With abundant natural resources, a skilled workforce, and favorable weather conditions, the country presents a wealth of opportunities for investors looking to capitalize on its untapped potential. As Ethiopia continues to enhance its investment landscape through strategic initiatives and policy reforms, investors are encouraged to seize the opportunities available and contribute to the country’s sustainable growth trajectory.
THE ETHIOPIAN HERALD THURSDAY 18 JULY 2024
