Ethiopia’s FDI Rises 49% to $1.43bn in First Quarter

Ethiopia attracted 1.432 billion US dollars in foreign direct investment (FDI) during the first quarter of the fiscal year, a 49 percent increase from the same period a year earlier, according to the Ethiopian Investment Commission (EIC).

The inflow exceeded the commission’s quarterly target of 900 million US dollars, as new investment licences, project implementation and export earnings also surpassed planned levels.

The commission issued 179 new investment licences during the quarter, against a target of 123. Of these, 122 were for projects outside special economic zones (SEZs), while 57 were within the zones.

Investment agreements signed in special economic and free trade zones reached 110, more than double the target of 50, according to the commission’s quarterly performance review.

A total of 81 projects moved into the implementation phase, while 66 entered production. Both figures exceeded their respective targets, although the commission did not disclose the planned numbers for the two indicators.

Investment projects generated 238 million US dollars in export earnings during the quarter, surpassing the commission’s target. The projects also created more than 22,000 jobs, the commission said.

Speaking at the review meeting, Meleket Sahlu, deputy commissioner of the EIC, said the results reflected operational measures undertaken by the commission during the period.

The commission attributed its performance to efforts to resolve operational bottlenecks, strengthen investment monitoring and support, promote business expansion and encourage the reinvestment of retained earnings. Coordination with institutions involved in investment facilitation and the use of investment incentives were also cited.

Source: FSX Business News