Ethiopia Records $4.32 Billion in FDI as Investment Licenses Reach Annual Targets
TL;DR
Ethiopia attracted $4.32 billion in foreign direct investment during the 2025/26 fiscal year, an 8% increase supported by new investment licenses and improved export performance in Special Economic Zones.
Ethiopia secured $4.32 billion in foreign direct investment (FDI) during the 2025/26 fiscal year, representing an 8% increase compared to the previous year. The Ethiopian Investment Commission (EIC) announced the figures during its annual performance evaluation, noting that the total does not yet account for commitments made during the 4th Invest in Ethiopia Forum 2026.
Commissioner Zeleke Temesgen stated that the commission issued 528 new investment licenses throughout the fiscal year, meeting its annual target. Beyond license issuance, more than 260 projects transitioned into the implementation phase, exceeding the commission's goals.
Export performance within Ethiopia's Special Economic Zones (SEZs) also saw growth. These zones generated $225 million in exports, marking an 80% increase from the prior year. The commission attributed this gain to the operational start of several strategic projects, including those in the solar energy sector that were initiated following the 2025 investment forum.
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The EIC credited these results to ongoing macroeconomic reforms and improved service facilitation. Key operational improvements cited include the digitization of investor services, the establishment of grievance resolution mechanisms, and increased coordination between government institutions.
Looking ahead, the commission plans to focus on enhancing the predictability of the national investment climate and attracting higher-quality capital. Efforts remain underway to provide follow-up support to projects currently in the pipeline to ensure they reach full operational capacity.
Source: Ethiopian Business Review
