Amhara’s Investment Holding Approves New Capital Spending Programme

Abay Investment Holding, the investment arm of Ethiopia’s Amhara regional government, has approved a new capital spending programme for the 2026/27 fiscal year. The board of directors authorised funding to complete two near-finished projects, expand five existing businesses and explore new opportunities in logistics and manufacturing.

The decisions set the group’s investment direction for the coming year. Capital expenditure will support the installation and commissioning of two agro-processing and manufacturing projects that are close to completion, while also covering their working capital needs.

Funding was also approved for the expansion and upgrading of five existing investments in floriculture, manufacturing, agro-industry and metal engineering. The holding company did not disclose the specific names of the projects or the total value of the approved expenditure.

In addition, Abay Investment Holding will finance full feasibility studies for the establishment of an Industrial Logistics Company and a Label Manufacturing Company. These studies could extend the group’s portfolio into new business areas beyond its current operations.

The board further approved funds for the construction of the holding’s headquarters in Bahir Dar and an investment promotion and boardroom office in Addis Ababa. These facilities are expected to improve operational coordination and support future investment activities.

Abay Investment Holding continues to consolidate and restructure a portfolio of public investments under the Amhara regional administration. By the end of the 2018 Ethiopian fiscal year, the group managed 46 subsidiaries, companies and projects across multiple sectors.

Its portfolio spans agriculture, agro-processing, manufacturing, floriculture, tourism and financial services. The holding has recently conducted performance and diagnostic reviews of its subsidiaries as part of efforts to improve operational efficiency and asset utilisation.

The latest approvals mark a shift from portfolio assessment toward new capital deployment. The focus is now on completing existing projects, expanding selected businesses and assessing potential new ventures.

The company has not disclosed the overall size of the capital spending programme, expected completion dates or projected financial returns. Officials say the investments are intended to strengthen the region’s industrial and agro-processing capacity.

The move reflects broader efforts by the Amhara regional government to mobilise public investment resources and support long-term economic development through its investment holding structure.

Source: FSX Business News