Ethiopia attracts FDI amounting to 953 million USD in 2013
Addis Ababa, 24 June 2014 (WIC) – Ethiopia has attracted an unprecedented sum of Foreign Direct Investment (FDI) amounting to 953 million USD in 2013, a United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2014 indicated.
According to the report launched globally today under the title ‘Investing in the Sustainable Development Goals’, Ethiopia’s industrial strategy is attracting Asian capital to develop its manufacturing base.
In 2013, the Chinese Huajian Group opened its first factory for shoe production and announced plans to establish a two billion USD hub for light manufacturing.
Earlier the year, a joint venture between UAE’s Julphar and a local company, Medtech, inaugurated its first pharmaceutical manufacturing facility in Africa in Addis Ababa.
The report indicated that Julphar’s investment in the construction of the plant is estimated at around 8.5 million USD.
It also cited the 4 billion USD geothermal project signed between Ethiopia and Reykjavik Geothermal, an Icelandic company in late 2013.
The deal contributed to a 10-year high record of announced green-field FDI from developed countries in 2013.
FDI flow to Africa continued rising to reach 57 billion USD in 2013 registering a 4% growth compared to the previous year driven by international and regional market-seeking and infrastructure investment, the report said.
Ethiopia’s strong performance aided the Eastern Africa region to record a 15% increase in FDI flow amounting to 6.2 billion USD.
However, the trends in FDI flows vary by sub-regions with flows to North, West and Central Africa showing a decline of 15.5%, 14% and 18% respectively. FDI flow to Southern Africa almost doubled in 2013 jumping to 13.2 billion USD from 6.7 billion USD in 2012, according to the report.
The report also identified that developing economies are becoming less dependent on natural resources with a drop in the share of extractive industries. Consumer-oriented sectors such as services and infrastructure developments are beginning to drive FDI growth in Africa, the report noted.
|< Prev||Next >|