In 2023, it secured a staggering $3.3 billion in foreign direct investments (FDI), more than its neighbours Kenya and Uganda.
The Ethiopian Investment Commission (EIC), led by Chief Commissioner Hanna Arayasellasie, revealed that Ethiopia has already attracted $3 billion in the first ten months of the fiscal year 2023/24.
According to the EIC data, China has played a pivotal role, accounting for nearly half of all FDI projects in Ethiopia.
The EIC further disclosed that the nation’s strategic embrace of public-private partnerships (PPP) has been the cornerstone of this economic milestone, with notable ventures like the UAE’s AMEA Power investing $600 million in the Aysha wind power project.
Ethiopia has also opened its doors to foreign investment in digital payment systems.
Last year, Safaricom Ethiopia, a subsidiary of the renowned Safaricom, was granted the Payment Instrument Issuer License, propelling the number of M-Pesa users to a remarkable 3.1 million.
In January 2024, Safaricom Ethiopia announced that the number of M-Pesa users had nearly tripled in four months to 3.1 million, with transactions worth $115.3 million.
In comparison to last year’s figures, UNCTAD’s report reveals a 3% decrease in FDI inflows to Africa, totalling $53 billion.
Egypt and South Africa follow Ethiopia in the rankings, while developed countries still attract the lion’s share of greenfield projects.
