Africa-Press – Ethiopia. Ethiopia’s Deputy Commissioner of the Investment Commission, Dagato Kumbe, announced that the country granted investment licenses to 525 foreign investors in the 2017 Ethiopian fiscal year alone, representing a total capital of 4 billion USD.
The Deputy Commissioner highlighted the clear surge in interest, stating, “The interest of foreign investors to make direct foreign investment in Ethiopia has been increasing recently.”
Dagato pointed to the year-over-year growth to underscore this trend.
“In the 2016 Ethiopian fiscal year, 326 investors came to Ethiopia. However, in 2017 (Ethiopian fiscal year), some 525 investors took licenses to invest in Ethiopia, marking a significant increase.”
The rise in FDI flow is attributed primarily to the country’s Homegrown Economic Reform agenda.
Dagato explained that the reform is designed to boost FDI and sustain economic growth, driven by a two-pronged approach.
First, he noted the commission’s efforts to proactively market the country.
“Promotional work is being done to ensure that investment options in Ethiopia are properly identified and known. Targeted promotion is being carried out.”
Second, he detailed the comprehensive nature of the reform.
“Various macroeconomic reforms have been undertaken. For instance, various sectors have been liberalized. New sectors, including financial institutions, have been opened for foreign investors to enter and participate.”
Dagato also affirmed that procedural and legal gaps that were not conducive to investment have been identified through studies and subsequently revised.
These steps, coupled with shifting the foreign exchange management system toward a more market-oriented structure, have created a favorable environment for investment and trade, stimulating private sector participation.
The positive outcome of the reform echoes a recent statement by Fitsum Assefa, the Minister of Planning and Development, who noted that, despite challenges, the Ethiopian economy has managed to achieve significant growth under the implemented Homegrown Economic Reform.
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