Mintesinot NigussieThe Ethiopian Investment Commission (EIC), in collaboration with the Ministry of Finance (MoF) and the Development Partners Group, is gearing up to host the 3rd edition of the Invest Ethiopia 2025: High-Level Business Forum, slated for May 12-13, 2025, at the Skylight Hotel in Addis Ababa. This prestigious event will bring together an impressive mix of 700 global investors, business leaders, policymakers, and entrepreneurs, offering a dynamic platform to explore Ethiopia’s untapped investment opportunities.
During a press conference unveiling the event, Dr. Zeleke Temesgen Boru, Commissioner of the EIC, alongside Semereta Sewasew, State Minister of Finance, Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, and Ashley Mulroney, the Canadian Embassy’s Representative, reinforced the forum’s significance in setting the stage for future investment flows into Ethiopia. Aimed at catalyzing the country’s economic growth, the forum is expected to attract USD 3 billion in investment over the next few years.
The forum is not just a platform for dialogue but a robust opportunity for business leaders to dive deep into Ethiopia’s evolving investment climate. As Dr. Zeleke emphasized, Ethiopia’s strategic geographic location, coupled with its affordable and reliable electricity, positions the country as an attractive destination for foreign direct investment (FDI). “Ethiopia offers investors unparalleled access to regional and global markets, with proximity to the Middle East and other key trade hubs,” he remarked. “Furthermore, the government’s commitment to providing tax incentives and fostering a business-friendly environment makes it an ideal location for long-term investments.”
The forum also seeks to showcase the government’s commitment to fostering a private-sector-driven economy. Over the past few years, Ethiopia has actively worked to create an environment that is both conducive to investment and supportive of entrepreneurship. The strategic reforms implemented to date are now set to serve as the backbone for attracting further capital.
The previous Invest in Ethiopia Forum in April 2023 saw an impressive turnout of 750 foreign investors, with an estimated USD 1.6 billion in investment commitments. These engagements helped Ethiopia secure a USD 3.9 billion FDI influx in the 2023-2024 fiscal year.
Ashley Mulroney, representing the Development Partners Group, highlighted the importance of collaboration between the government, private sector, and development partners in Ethiopia’s investment ecosystem. She noted that while global economic challenges like inflation and trade disruptions continue to affect emerging markets, Ethiopia’s macroeconomic stabilization efforts and structural reforms are proving resilient.
She emphasized the need for investment to focus on inclusive growth, with particular attention to youth, women, and underserved communities. This commitment to fostering inclusive development is crucial as Ethiopia looks to tap into its demographic dividend and address the needs of its rapidly growing population.
The expansion into sectors like telecom, banking, and logistics is another critical focus of the forum. Ethiopia’s recent shift to a market-based exchange rate system has been instrumental in creating a more competitive environment for international investors. Dr. Léandre Bassolé, Deputy Director General for the East African Region at AfDB, stressed that Ethiopia’s opening up of key sectors signals a serious commitment to market liberalization and private-sector involvement. “The government’s macroeconomic reforms and efforts to liberalize essential sectors such as telecom and banking show Ethiopia’s dedication to building a modern, open economy,” Dr. Bassolé remarked.
Ethiopia’s investment journey has been significantly shaped by China’s increasing role in its development, with over 4,500 Chinese-led projects currently operating in the country. However, despite the significant strides made in promoting investment, security challenges continue to pose risks to Ethiopia’s business environment. The ongoing instability in certain regions, coupled with disruptions in supply chains, is affecting investor confidence and escalating operational costs. Dr. Zeleke acknowledged these challenges, urging a balanced perspective on the situation. “While peace is crucial for investment, the perception of instability often outweighs the reality. We must work together to ensure stability, both on the ground and in the global perception,” he said.
