Ethiopia has emerged as Africa’s second-largest destination for FDI (Foreign direct investment), trailing only Egypt, according to remarks made on March 16 in Addis Ababa by Zeleke Temesgen, Commissioner of the Ethiopian Investment Commission (EIC).
Speaking at a panel discussion titled “Ethiopia: The New Investment Destination,” Temesgen revealed that the country attracted a cumulative 18.6 billion US dollars in FDI over the past five years, with China standing out as the leading investment partner.
He noted that Ethiopia secured 4 billion US dollars in FDI during the 2024/2025 Ethiopian fiscal year, which ended on July 7, 2025—representing a 22.7 per cent increase compared to the previous year. The country also recorded the highest FDI inflows in East Africa during the period.
Temesgen attributed the growth to Ethiopia’s policy shift towards a more liberalised investment regime, allowing foreign participation in previously restricted sectors such as export, import, retail, and wholesale trade.
Over the five-year period, the EIC issued 1,477 new investment permits to foreign nationals, signalling sustained investor confidence in the country’s evolving economic landscape.