Ethiopia emerges as Africa's 2nd largest FDI destination with China taking the lead


ADDIS ABABA, March 16 (Xinhua) -- Ethiopia has become the second most attractive foreign direct investment (FDI) destination in Africa, with China being a leading investment partner to the East African country, a senior Ethiopian official said on Monday.

Zeleke Temesgen, commissioner of the Ethiopian Investment Commission (EIC), remarked at a panel discussion entitled "Ethiopia: The New Investment Destination."

Temesgen said the country has attracted a total of 18.6 billion U.S. dollars in FDI over the past five years, ranking second on the continent after Egypt.

"Ethiopia attracted the highest in East Africa and the second highest FDI in Africa, bringing 4 billion dollars in the 2024/2025 Ethiopian fiscal year ending on July 7, 2025. This showed a 22.7 percent increase compared to the previous year, with Chinese companies investing the highest in the country," he said.

The commissioner attributed the increased FDI to the government's shift towards an open-door investment policy, which allowed foreign investors to participate in key sectors, including export, import, retail and wholesale businesses that were previously restricted for foreign investors.

He added that the EIC issued 1,477 new investment permits to foreign nationals during the previous five years.

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