Ethiopia Attracts $4 Billion FDI as Investors Target Manufacturing, ICT and Agriculture
BaseLine Team
20 Aug, 2025
Foreign direct investment into Ethiopia reached 4 billion dollars in the ended fiscal year, with the bulk of new permits flowing to priority sectors such as manufacturing, agriculture, ICT and export trade, according to the Ethiopian Investment Commission (EIC).
EIC officials attributed the 2.2 percent growth of FDI to its efforts in streamlining investment processes, modernizing services, and expanding access to key sectors, reporting that investor confidence rose by 20 percent as a result.
Under Zeleke Temesgen (PhD), EIC issued 544 permits and expansions, of which 308 were for foreign investors, 109 for joint ventures, and nearly 100 for domestic firms. Although more than 61 new licenses were granted in the import and export trade sector alone, the country lauds its moving to reduce dependence on imports, substituting over 1 billion dollar worth of imported goods with local products.
Industrial policy also advanced, with 14 industrial parks—10 state-owned and four private—upgraded to special economic zones (SEZs). The zones generated 123 million dollars in export earnings, while investments outside SEZs brought in more than 543 million dollars.
Officials say the shift toward priority industries is part of Ethiopia’s Homegrown Economic Reform Plan, aimed at strengthening competitiveness, creating jobs.
