The Ethiopian Investment Commission (EIC) announced that Ethiopia has attracted foreign direct investment (FDI) amounting to $3.9 billion during the fiscal year that ended on July 7, 2021. Compared to the previous year, the figure has shown an increase of almost a billion dollars, by over 34 percent.
EIC noted the achievement has been made despite challenges posed due to the ongoing security issue and the coronavirus pandemic.
Henok Solomon, Communications Director at EIC, credited the sale of the private telecom license as the major factor to the significant increase in FDI this year. The Global Partnership for Ethiopia, a consortium of several telecom companies, had won the bid to provide telecom services in Ethiopia for $850 million.
Besides that, an "intensive campaign to promote investment prospects of Ethiopia" has also played a key role in improving FDI performance, Mr. Henok added. Specifically, he said, this has made a significant improvement in the agro-processing sector.
In the newly opened Yirgalem Yirgalem Integrated Agro-Industrial Park alone, some 19 companies from abroad have made investments during the year. Their investments, the communications director highlighted, "will not only boost the export volume, but also the import substitute push of the country."
Ethiopia plans to attract $5 billion FDI in the current fiscal year, an over 28% increase compared to the previous year. The sale of a second telecom license, as well as a forty percent stake in so far fully state-owned Ethio Telecom, are expected to help reach the goal.
Source: Ethiopian Monitor
