Addis Ababa, May 12, 2025 (FMC) — Ethiopia is accelerating its efforts in opening up its business environment to attract more foreign direct investment (FDI), senior government officials announced.
Speaking at the opening of the Invest Ethiopia 2025 high-level business forum in Addis Ababa, Finance Minister Mr. Ahmed Shide emphasized the country’s favorable investment climate, highlighting key advantages such as vast arable land, abundant water resources, a young and educated labor force, and emerging infrastructure.
He also noted that Ethiopia remains one of Africa’s top investment destinations, driven by the government’s homegrown economic reform agenda, which focuses on macroeconomic stability and sustainable development.
The liberalization of sectors such as telecommunications, logistics, energy, and more recently banking, retail, and wholesale, has strengthened investor confidence and reinforced the country’s commitment to an open and dynamic economy, Ahmed explained.
He pointed to the launch of the Ethiopian Capital Market as a significant milestone that enhances the country’s competitiveness and supports a private-sector-led economy. He further emphasized that ongoing legal, policy, and structural reforms are yielding tangible results, including stronger economic growth and a more stable financial system.
The Minister also stressed that prioritizing private-sector participation has been a key element of Ethiopia’s reform strategy.
“Investment, both foreign and domestic, is increasing across critical sectors. Our liberalization of key industries such as telecommunications, logistics, energy, and, more recently, banking, retail, and wholesale, has deepened investor confidence and reaffirmed our commitment to an open and dynamic economy,” he elaborated.
Foreign Affairs Minister Gedion Timothewos echoed these sentiments, stating that Ethiopia is now regarded as a major investment destination.
He pointed to robust infrastructure development, expanding industrial parks, improved logistics, investor-friendly policies, and a highly productive workforce as major attractions for foreign investors. He also highlighted Ethiopia’s provision of affordable, renewable energy and acknowledged past challenges in supporting private enterprise.
The Minister called on international investors to seize opportunities in agriculture, manufacturing, energy, mining, tourism, and other key sectors.
“Restrictions on foreign direct investment in many sectors, along with the overall regulatory and policy framework, previously made FDI a difficult undertaking. Today, however, Ethiopia has undergone a paradigm shift, welcoming and encouraging FDI as a critical pillar necessary to realize our aspiration for shared prosperity for all Ethiopians,” he stated.
Planning and Development Minister Fitsum Assefa highlighted Ethiopia’s vast investment potential, emphasizing its strategic geographic position, growing domestic market, and access to both regional and global markets.
“Ethiopia occupies a strategic location in the region, with access to regional and global markets. The country boasts a large and growing domestic market, a youthful population, increasing income levels, and a logistics sector poised to create an enabling environment for investors,” she explained.
As a founding member of COMESA, Ethiopia has access to a market of around 560 million people. Through the African Continental Free Trade Area (AfCFTA), it can tap into a population of 1.4 billion, Fitsum noted.
Ethiopian Investment Commission Commissioner Zeleke Temesgen, in turn, reinforced the government’s commitment to supporting foreign investors, noting that reforms introduced during the liberalization period have significantly enhanced Ethiopia’s openness to FDI.