EIA says FDI flow to Ethiopia increasing

Addis Ababa, May 5 (WIC) – The Ethiopian Investment Agency (EIA) said Foreign Direct Investment (FDI) flow to Ethiopia has shown a remarkable increase in the last nine months.

Agency Corporate Communications Director, Getahun Negash, attributed the increase to the improvement in the financial sector, promotional works and smooth licensing process.

Getahun told WIC that some 95 per cent of the country’s capital budget, about 61 billion birr, is covered from the FDI.

Chinese and Indian companies take the lead in the FDI activities of Ethiopia, he said, adding companies from Saudi Arabia, Yemen, Israel, UAE, Europe and the USA are also investing in the country.

A number of investors are also coming from African countries such as Sudan, South Africa, Nigeria, Egypt and Kenya. The African investors, as Getahun stated, are engaged in agro processing and manufacturing sectors.

More significantly, the returnee Ethiopian Diaspora from Europe and America are engaging in various investment sectors, he further indicated.

He said the agency issues licenses for foreign investment projects based on the feasibility of the projects and the priorities of the Growth and Transformation Plan (GTP).

Manufacturing, agriculture and service are among the sectors that the GTP gives priority, he said, adding selection of foreign investors will also be done on the basis of the job opportunities they will create, their export potential and their engagement in an import substitution.

According to Getahun, since September 2011, 123 companies with over 11 billion birr combined capital have started operation, thus creating job opportunities for over 31, 000 employees.