Ethiopia secured USD 4.32 billion in Foreign Direct Investment (FDI) during the 2025/26 Ethiopian fiscal year, marking an 8 percent increase from the previous year and reflecting growing investor confidence in the country's economic reform agenda.
The figures were announced during the annual performance review of the Ethiopian Investment Commission (EIC), where Commissioner Zeleke Temesgen outlined the Commission’s achievements and priorities for the coming fiscal year.
According to the Commissioner, the reported FDI inflow does not yet include investments pledged during the 4th Invest in Ethiopia 2026 Forum by companies that have subsequently obtained investment licenses. He noted that the Commission is working closely with investors to ensure that licensed projects move quickly into implementation.
During the fiscal year, the EIC issued 528 new investment licenses, exceeding its annual target and achieving more than 100 percent of its planned performance.
The review also highlighted strong growth in export-oriented industrial production. Products valued at USD 225 million were exported from Ethiopia’s Special Economic Zones (SEZs) during the fiscal year, representing an 80 percent increase compared to the previous year and meeting the Commission’s annual export target.
The Commissioner attributed much of the progress to ongoing macroeconomic reforms that have improved the investment climate and accelerated project implementation. He noted that several companies, including solar manufacturing firms that committed investments during the 3rd Invest in Ethiopia 2025 Forum, have already commenced operations and contributed to the year’s investment performance.
More than 260 investment projects entered the implementation stage during the fiscal year, surpassing planned targets and demonstrating improvements in investment facilitation and project execution.
In addition to attracting investment, the Commission reported progress in accelerating licensed projects into operation, creating employment opportunities, expanding digital investment services, strengthening monitoring and evaluation systems, improving investment incentives, increasing domestic revenue collection and enhancing investor grievance resolution mechanisms.
Looking ahead, the Commission identified key priorities for the new fiscal year, including improving the predictability of the investment environment, attracting higher quality strategic investments, accelerating project implementation and strengthening coordination among public institutions.
The latest figures underscore Ethiopia’s continued efforts to position itself as a leading investment destination in Africa, supported by ongoing reforms aimed at promoting productive, export-oriented and technology driven investments.
Source: Ethiopian News Agency
