Ethiopia’s economic reform agenda spurring promising domestic investment

Addis Ababa, June 11, 2025 (FMC) – Ethiopia’s investment landscape continues to show promising growth, supported by government reforms and a strengthening private sector that is gradually transforming the country’s economic outlook.

Local investors are increasingly playing a vital role alongside foreign direct investors in driving industrial development and job creation, it has been learned.

One inspiring example is Mr. Tofiq Kedir, CEO and Chairman of TK INVESTMENT GROUP, who has grown from humble beginnings to become a leading figure in Ethiopia’s industrial sector.

Reflecting on his journey, Mr. Tofiq highlighted the critical role that Ethiopia’s Home Grown Economic Reform, macroeconomic reforms, and relevant government policies have played in supporting his business expansion.

He specifically noted that the efforts of government entities, including the Ministry of Industry, have helped create a more enabling environment for local entrepreneurs like himself. “These reforms have helped me a lot all the way in flourishing my business,” he told Fana Media Corporation in a recent interview.

These reforms and policies, aimed at improving the investment climate and promoting industrialization, have been pivotal not only in attracting foreign direct investment but also in empowering domestic investors to expand operations and create employment. Mr. Tofiq’s experience underscores the growing importance of the private sector in Ethiopia’s economic transformation.

Born in Qellem Wolega’s Mugi city, Mr. Tofiq’s early life was marked by hardship. From working as a shoe shiner and vegetable seller, he cultivated an entrepreneurial spirit that later guided him through various endeavors.

After serving seven years in the national defense forces, he returned to his home region to start coffee cultivation and related businesses.

He later moved to the capital city of Benishangul Gumuz region, Asosa city, situated near the Grand Ethiopian Renaissance Dam, where he expanded into edible oil and grain trading and established a mill and commercial building.

According to him, his international work experience further broadened his business perspective.

Today, Mr. Tofiq’s TK INVESTMENT GROUP operates seven factories within Bulbula Agro Industrial Park, with an investment exceeding 4.9 billion Birr, fully self-funded without external loans.

The factories focus on processing soybeans into value-added products such as edible oil, cake, soya meat, medicine, and animal fodder, thereby enhancing Ethiopia’s agricultural output and reducing dependency on imports.

Currently employing around 400 young workers, Mr. Tofiq emphasized that his industrial investments aim to contribute to Ethiopia’s development by creating job opportunities and fostering economic growth.

He also praised the support from both federal and regional governments in completing infrastructure and facilitating the park’s operations.

Looking ahead, Mr. Tofiq plans to expand the Bulbula Agro Industrial Park significantly, aiming to generate thousands of new jobs and further strengthen Ethiopia’s industrial base.

His story serves as an example of how local entrepreneurship, supported by government reforms and policies, is playing a crucial role in the country’s economic transformation.

By Meraol Kedir