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The Invest in Ethiopia 2025 High-Level Business Forum, which concluded today in Addis Ababa, has secured USD 1.6 billion in foreign investment, marking a significant milestone in the country’s efforts to foster private sector growth and attract international capital. The two-day event gathered global investors, policymakers, and key stakeholders, highlighting Ethiopia’s ongoing economic reforms and its growing appeal as an investment destination.

A key moment of the forum was the signing of five major investment agreements, which span diverse sectors with high growth potential. These deals are set to play a pivotal role in driving Ethiopia’s economic transformation and contribute to the creation of jobs and sustainable development.

The forum also hosted a series of productive panel discussions, addressing key issues impacting Ethiopia’s investment landscape. Among the featured discussions were: “A Conducive Environment for Investment in Ethiopia’s Service Sector,” which explored opportunities and challenges in service industries; “Public-Private Partnerships and Joint Investments with Governments,” emphasizing collaboration between the public and private sectors for sustainable development; and “ICT and Other Emerging Sectors – Powering the Digital Frontier,” which delved into Ethiopia’s digital transformation and the growing potential of technology-driven industries.

Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia, reaffirmed the government’s commitment to maintaining a stable, investor-friendly environment. He emphasized the critical role of private sector growth in achieving macroeconomic stability and advancing Ethiopia’s ambitious reform agenda, including the newly launched Macro Reform Program.

“There has never been a more opportune moment to invest in our nation,” Minister Shide stated, extending an open invitation to global investors to join Ethiopia on its transformative journey. He stressed that investment is key to advancing shared goals of resilience, inclusive prosperity, and sustainable growth, and encouraged investors to explore the high-potential sectors outlined in the country’s investment “deal book.”

 



 

The Ethiopian Birr has shown signs of strengthening against the US Dollar as the National Bank of Ethiopia (NBE) continues its scheduled foreign exchange auctions. The latest auction, held on April 1, 2025, saw the weighted average exchange rate settle at Birr 131.71 per USD, reflecting a 2.88% appreciation from the Birr 135.62 per USD recorded in the previous auction in February 2025.

The strengthening of the Birr reflects Ethiopia’s improving foreign exchange position, supported by a series of macroeconomic reforms introduced in July 2024. The country has experienced increased foreign currency inflows from exports, remittances, and capital investments. “NBE’s foreign exchange reserves have surged by more than 200% following the transition to a market-driven forex system,” said Governor Mamo Mihretu in his recent statement.

Further supporting the country’s financial outlook, Ethiopia has reached an agreement in principle with its official creditors to restructure USD 8.4 billion in external debt. This restructuring move is expected to ease financial pressures and strengthen Ethiopia’s position in ongoing negotiations with private creditors, including bondholders. The anticipated reduction in debt servicing obligations could create additional fiscal space, further stabilizing the country’s economic environment.

NBE’s shift to bi-weekly foreign exchange auctions is playing a crucial role in stabilizing the market by ensuring a steady supply of forex to the private sector. The reduction in the exchange rate indicates a potential easing of forex pressures, a positive sign for businesses reliant on imports and foreign transactions.

The next auction is scheduled to take place in two weeks, with details to be announced one day prior.

 




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