One of Africa's largest economies attracted $4.3 billion from foreign investors

The East African country of Ethiopia garnered $4.32 billion in foreign direct investment (FDI) for the fiscal year 2025/26, indicating that increased investor confidence continues to execute broad economic reforms.

• Ethiopia attracted $4.32 billion in foreign direct investment (FDI) for the fiscal year 2025/26, an 8% increase over the previous year.
• The investment figure may rise further, as it does not include recent pledges made during the Invest in Ethiopia 2026 Forum.
• The country exceeded its annual target by issuing 528 new investment permits, and over 260 projects moved into active development.
• Exports from Special Economic Zones reached $225 million, an 80% increase from last year and meeting the agency's export goal.

The results were disclosed by the Ethiopian Investment Commission (EIC) during its annual performance review, in which Commissioner Zeleke Temesgen reviewed the agency's accomplishments over the previous year and goals for the next fiscal year.

According to the Commission, the entire investment amount marks an 8% increase over the previous fiscal year.

The amount also excludes further pledges made during the 4th Invest in Ethiopia 2026 Forum by firms who have subsequently obtained investment permits, implying that total inflows might increase further if those projects are completed.

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Temesgen stated that the Commission is working with investors to hasten the process from licensing to project implementation, ensuring that committed investments become operational enterprises.

The assessment also indicated that Ethiopia issued 528 new investment permits during the year, exceeding its annual target and expectations.

In addition to attracting foreign finance, Ethiopia's export economy has been enhanced by its Special Economic Zones (SEZs), as reported by the Ethiopian News Agency.

Goods worth $225 million were exported from the zones throughout the fiscal year, meeting the Commission's export objective and representing an 80% increase over the previous year.

The Commissioner attributed the outstanding performance to the government's macroeconomic reform strategy, which has improved the business environment and prompted investors to take projects from planning to production more rapidly.

He stated that various enterprises, including solar manufacturing firms that declared investments at the 3rd Invest in Ethiopia 2025 Forum, have already begun operations, adding to the country's increasing industrial production.

Implementation also increased over the year, with more than 260 investment projects moving into active development, exceeding the Commission's initial aim.

The Ethiopian commissioner emphasized the importance of frequent Public-Private Dialogue (PPD) venues, claiming that they have enhanced communication between the government and investors, policy openness, and cooperation among public institutions.

He noted that broadening these interactions will assist to maintain investor trust and strengthen Ethiopia's position as one of Africa's rising investment destinations.