June 24, 2024
10:21 am
Ethiopia emerges as leading destination for foreign direct investment in East Africa
Source: Business Insider
By Victor Oluwole
According to the latest World Investment Report published by the United Nations Conference on Trade and Development (UNCTAD) last week, Ethipia has emerged as the leading destination for foreign direct investment (FDI) in East Africa.
- Ethiopia emerged as the leading destination for foreign direct investment in East Africa in 2023
- Ethiopia attracted $3.3 billion in foreign direct investments, surpassing Kenya and Uganda
- China accounted for nearly half of all FDI projects in Ethiopia
In the vibrant landscape of East Africa, Ethiopia stands tall as a beacon of economic progress.
In 2023, it secured a staggering $3.3 billion in foreign direct investments (FDI), more than its neighbours Kenya and Uganda.
The Ethiopian Investment Commission (EIC), led by Chief Commissioner Hanna Arayasellasie, revealed that Ethiopia has already attracted $3 billion in the first ten months of the fiscal year 2023/24.
The EIC further disclosed that the nation’s strategic embrace of public-private partnerships (PPP) has been the cornerstone of this economic milestone, with notable ventures like the UAE’s AMEA Power investing $600 million in the Aysha wind power project. Ethiopia has also opened its doors to foreign investment in digital payment systems.
Last year, Safaricom Ethiopia, a subsidiary of the renowned Safaricom, was granted the Payment Instrument Issuer License, propelling the number of M-Pesa users to a remarkable 3.1 million.
In January 2024, Safaricom Ethiopia announced that the number of M-Pesa users had nearly tripled in four months to 3.1 million, with transactions worth $115.3 million.
Egypt and South Africa follow Ethiopia in the rankings, while developed countries still attract the lion’s share of greenfield projects.