Ethiopia Named Top Destination for Foreign Direct Investment in East Africa

Ethiopia has emerged as the leading destination for foreign direct investment (FDI) in East Africa, according to the latest World Investment Report by the United Nations Conference on Trade and Development (UNCTAD).

The country secured $3.3 billion in FDI in 2023, surpassing its neighbors Kenya and Uganda, with the Chief Commissioner Hanna Arayaselassie of the Ethiopian Investment Commission (EIC) revealing it attracted $3 billion in the first ten months of the 2023/24 fiscal year.

China was a major contributor, accounting for nearly half of all FDI projects, with public-private partnerships (PPP) also playing a crucial part. According to the EIC’s data, PPPs led to numerous investments in the country’s economy, including the UAE’s AMEA Power’s $600 million investment in the Aysha wind power project. Additionally, Ethiopia’s decision to welcome foreign investment in digital payment systems also contributed to its FDI in the year under review.

Source: Africa.com