A US government report says the corridor development project, in which "tens of thousands" of residents and businesses were evicted "with little or no warning," has "limited investor interest" in the project.

The report, which cited conflicts and a "re-widening" exchange rate differential, assessed Ethiopia's investment climate as "challenging for U.S. and other foreign businesses."

The report, prepared by the State Department to help American companies "make informed decisions," assesses the investment climate of more than 170 countries.

One of the issues raised as a concern in the office's report on Ethiopia is the corridor development project, which began in Addis Ababa and is ongoing in at least 40 cities across the country.

The government describes the corridor development as a project that “aims to establish Ethiopia as a key trade and logistics hub in East Africa.”

It says the project will “improve infrastructure” and “facilitate cross-border trade.”

The U.S. State Department report, meanwhile, criticized the project for protecting the property rights of residents and businesses.

The report said that the successive corridor development projects "have displaced tens of thousands of residents and businesses, including those owned by foreigners, and demolished their properties with little or no warning or compensation."

The report also notes that “some of the evictions that have occurred due to the corridor development have been carried out without warning and at gunpoint,” and that “foreign-owned businesses” have been affected.

This approach to the project has also “restricted investor interest,” it said.