Ethiopia emerges as the largest recipient of Foreign Direct Investment (FDI) in East Africa, said a new report from the global financial consulting firm EY.
In its Attractiveness Survey 2019, EY indicated Ethiopia attracted a foreign direct investment of over $258 billion during the year. Kenya and Tanzania came second and third for the region, garnering close to $74 billion, and $36.6 billion in FDI, respectively.
According to the report, Ethiopia translated the FDI it obtained into creating 16,000 jobs from 29 projects, while Kenya moved to create 6,000 jobs from 64 projects, and Tanzania created 3,000 jobs from 19 projects.
Ethiopia’s “efficient” business environment is to thank for its much higher FDI flow compared to the rest of the region, experts comment. The lure of a huge, yet untapped, domestic market is also a factor.
"Ethiopia has affordable electricity supply and is served by an efficient airline," Mr. Francis Kamau, a tax partner at audit and consultancy EY East Africa, points out.
KCB Group and Safaricom, two of Kenya's largest blue chip companies, continue to pursue establishment of operations in Ethiopia as the latter undergoes economic reforms opening up the economy and creating conducive environment for foreign investors.
Source: Daily Monitor