Investment Policy and Promotion

This chapter focuses on investment policy and promotion and specifically on potential contributions of foreign direct investment (FDI) to Ethiopia’s economic, social and regional development. The review of the current FDI policy framework and priorities is undertaken within the context of the major changes underway in international private capital flows and especially in the structure and strategic perspectives of the multinational corporations that decide the destination of direct investment. Understanding and positively responding to these global shifts and trends is an important policy priority for Ethiopia during the decade ahead. The following section reviews the flow of FDI into Ethiopia since the opening up of the country to international investment in early 1991. This relatively short period has met with a degree of success in attracting new direct investors and joint ventures. The effectiveness of the investment promotion activities undertaken by the Ethiopian Investment Authority (EIA) as well as the current and future challenges in investment promotion is then assessed. Finally, the priorities to be pursued by EIA and the Government over the next decade will be identified.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure