ADDIS ABABA – Ethiopia is poised to enhance its status as a favored destination for foreign direct investment (FDI) following the full implementation of its macroeconomic reform policy, as stated by Ethiopian Investment Commissioner Hanna Arayaselassie.

According to the Ethiopian News Agency, the recently implemented macroeconomic reforms address key concerns that have historically hindered investment in the country, notably the shortages of foreign currency. The floating of the national currency, as part of these reforms, aims to streamline foreign exchange processes for investors, facilitating easier access to funds for inputs, profit repatriation, and debt servicing.

The Commissioner emphasized that this strategic policy shift is designed to attract more investment, particularly from those looking to engage in export trade. Over the past fiscal year, Ethiopia attracted $3.82 billion in FDI across various sectors, with the government actively working to enhance this influx in collaboration with other agencies.

The focus of FDI has traditionally been in the manufacturing sector, accounting for about 80 percent of all incoming projects in the last fiscal year. This aligns with the government’s industrialization policy, but there is now a growing emphasis on diversifying the sources and sectors of FDI. Priority areas identified for future growth include energy, agriculture, and tourism, which have seen limited investment to date but are now recognized as crucial for sustainable economic development.

Additionally, recent policy developments such as the opening of new sectors like trading and the introduction of the Special Economic Zone proclamation are seen as vital tools for promoting investment, especially in the manufacturing sector. These zones offer strategic advantages for investors, making Ethiopia increasingly attractive as an investment destination on the African continent.