Ethiopian Business Review

Top 10 FDI Source Countries, from July 9, 2012- July 5, 2013

Foreign Direct Investment (FDI) into Ethiopia has started to grow since the liberalization of the Ethiopian economy. Investors from abroad invested 894 billion Birr in Ethiopia since 1992. Turkey played a dominant role by investing 29.5 billion Birr in 2012/13 fiscal year, which was 42.6Pct of the total capital register last year.

Turkish investors have been engaged mostly in the manufacturing activates such as textile in recent years. Two years ago, AYKA Textile Industry and Trade, one of Turkish textile giant,

moved its garment production units to Ethiopia creating 1,500 employment opportunities. The 34 investment projects implemented by Turkish investors last year also helped the country to create 11,926 permanent and 3,924 temporary job opportunities. The FDI from Turkey showed an 8Pct increment when compared with 2011/12 fiscal year. In 2011/12 fiscal year, Turkey also holds the first spot by investing on 22 projects

worth of 27.3 billion Birr.

China, whose economic cooperation with Ethiopia is now expanding, follows Turkey by investing on 155 projects worth of 6.9 billion Birr in 2012/13. China is still both the largest

import and largest export trading partner of Ethiopia. Similarly, in 2012/13 China’s investment to Ethiopia has created 11,794 permanent and 8,287 temporary jobs. FDI from Chinese investors also showed a 349.5Pct increment

when compared with 2011/12 figure. 

Investors from Saudi Arabia by creating a joint venture with Ethiopian investors managed to invest on 11 projects with investment capital of 6.2 billion Birr. These projects created

6,206 and 65,482 permanent and temporary job opportunities, respectively. The FDI from the top three sources accounts 61.5Pct of the total FDI capital inflow into Ethiopia last

 

year. In total, 134 countries invested 69.2 billion Birr on 721 projects last year, which showed a 17.4Pct decline compared with 2011/12. These projects created permanent and temporary job opportunities for 66,794 and 130,190 peoples, respectively.

No

Country of Origin

Capital in

'000' birr

Permanent

Employment

Temporary

Employment

No of

Projects

1 Turkey 29,498,169 11,926 3,921 35
2 China 6,989,942 11,794 8,287 155
3 Saudi Arabia/Ethiopia 6,201,499 6,206 65,482 11
4 India 5,905,325 4,999 3,723 47
5 Sudan 2,436,405 7,288 9,392 97
6 Britain/British Virgin Islands/ South Africa/Ethiopia 2,228,223 255 90 2
7 South Africa/Ethiopia 2,192,507 459 100 2
8 Saudi Arabia 2,098,470 1,358 6,833 19
9 Germany/Ethiopia 1,962,504 1,570 3,025 5
10 Netherlands/Ethiopia 798,006 542 350 4
Total 60,311,049 46,397 101,203 376
Others 8,931,007 20,397 28,987 345
Grand Total 69,242,056 66,794 130,190 712
More in this category: « 1,089 60,000 »

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