Ethiopia attracted USD 1.432 billion in foreign direct investment (FDI) during the first quarter of the 2026/27 fiscal year, representing a 49 percent increase compared to the same period last year, according to the Ethiopian Investment Commission (EIC).
The investment inflow exceeded the quarterly target of USD 900 million, highlighting strong performance in the country’s efforts to attract foreign investment.
The figures were disclosed during the commission’s first-quarter performance review, attended by its leadership and senior officials.
EIC Deputy Commissioner Meleket Sahlu attributed the performance to strengthened operational measures, improved investment facilitation and coordinated efforts to address challenges facing investors.
According to the commission, Ethiopia issued 179 new investment licenses during the quarter, exceeding its target of 123. Of these, 122 were issued to projects outside Special Economic Zones (SEZs), while the remaining 57 were registered within the zones.
The number of licenses issued represented a 45.5 percent increase compared to the corresponding period of the previous fiscal year.
The commission also reported the signing of 110 investment agreements within Special Economic Zones and Free Trade Zones, more than doubling its quarterly target of 50 agreements.
In terms of project implementation, 81 investment projects advanced to the implementation stage, while 66 projects entered production. Both indicators exceeded their respective quarterly targets.
Export performance also registered strong results, with the commission reporting USD 238 million in export revenue during the first quarter, surpassing the planned target.
The investment activities contributed to the creation of more than 22,000 new employment opportunities during the reporting period.
The commission attributed the achievements to efforts aimed at removing operational bottlenecks, strengthening investment monitoring and investor support services, and improving the utilization of investment incentives.
Other contributing factors included facilitating business expansion, encouraging the reinvestment of retained earnings and enhancing coordination with institutions involved in investment promotion and facilitation.
Source: Ethiopian Investment Commission
