Ethiopia Secures $3.52 Billion in FDI in Nine Months

Mintesinot Niggusie

The Ethiopian Investment Commission said it attracted 3.52 billion US dollars in foreign direct investment in the first nine months of the current fiscal year, signalling continued momentum in the government’s push to revive investor inflows.

The figure marks a 16 percent increase from a year earlier, according to officials, and comes as authorities intensify efforts to translate recent policy reforms into tangible capital commitments.

Deputy Commissioner Dagato Kumbe said the performance reflects a more targeted approach to investor outreach, with the Commission focusing on priority sectors and streamlined facilitation.

In parallel, the Commission issued 372 new investment licences during the period, marginally exceeding its plan and pointing to sustained pipeline activity despite broader macroeconomic pressures.

Officials said progress was also recorded in moving projects from licensing to operation, a long-standing bottleneck in Ethiopia’s investment landscape. Deputy Commissioner Zinabu Yirga said improvements in project execution, alongside export-oriented investments and import substitution, contributed to foreign exchange generation during the period.

The nine-month performance follows a renewed push to court international investors through platforms such as the Invest in Ethiopia 2026 Forum, where agreements worth 13.1 billion US dollars were signed across sectors including manufacturing, agriculture, energy and construction.

The forum, held in Addis Ababa, has become a central instrument in Ethiopia’s investment strategy, combining deal-making with policy signalling as the government seeks to reposition the country as a competitive destination for capital.

Beyond inflows, the Commission said it has strengthened aftercare services and taken action against non-compliant investors, reflecting a shift toward improving project delivery and accountability rather than focusing solely on approvals.

Ethiopia has in recent years sought to widen access to foreign capital as part of broader economic reforms, including opening selected sectors and easing investment procedures. However, translating commitments into operational projects remains a key test.

Officials said the focus for the remainder of the fiscal year will be on sustaining inflows while accelerating implementation, as the government leans on investment to support growth, job creation and foreign exchange earnings.