Ethiopia’s Economic Reforms Unlock Investment Potential, Attracting Foreign Interest
Addis Ababa: Speaking to ENA, Ethiopian Investment Commission Commissioner Zeleke Temesgen highlighted that Ethiopia has been undergoing a substantial reform process over the past seven years, achieving commendable results. The Commissioner stated that during these reform years, sectors previously closed to foreign investors have been opened.
According to Ethiopian News Agency, the economic reform has brought about improvements capable of bolstering investment. Commissioner Zeleke pointed to the measures taken in revising the investment law, emphasizing that these steps have unlocked sectors that were previously off-limits to foreign investors. He mentioned that the Ethiopian Investment Board has permitted foreign companies to engage in wholesale, retail, import, and export trade activities.
The government’s decision to open investment sectors that had been closed to foreign companies for extended periods, such as Ethio Telecom and the Special Economic Zone Proclamation, is supporting investment and attracting a large number of foreign investors, he elaborated. The Commissioner indicated that the Investment Commission has demonstrated strong performance over the past nine months, citing the attraction of foreign direct investment (FDI) which has shown a 2.4 percent growth compared to the previous year.
In light of the ongoing reforms and considering Ethiopia’s inherent potential, Commissioner Zeleke emphasized the need for further progress. He noted that following the opening of wholesale, retail, import, and export trade, investment licenses have been granted to 40 foreign investors, with applications from an additional 36 investors currently under process. He also stated that the Ethiopian Investment Board holds the authority to transition all industrial parks in Ethiopia into special economic zones.
Furthermore, the Commissioner mentioned that since the Dire Dawa Free Trade Zone was inaugurated by Prime Minister Abiy Ahmed and commenced operations, the Investment Commission has been actively facilitating the entry of investors into the zone. He added that 11 investors have already entered the free trade zone, with some already importing goods.
Ethiopia has become a leading hub for foreign direct investment (FDI) following the establishment of Industrial Parks in 2008 and the implementation of Special Economic Zones. Commissioner Zeleke concluded by stating that the government’s reform carried out on previously closed financial, telecommunications, and trade sectors is enabling significant progress to be registered.