ADDIS ABABA

Ethiopia attracted a record $4.32 billion in foreign direct investment (FDI), up 8% from the previous fiscal year, as sweeping economic reforms and renewable energy investments boosted investor confidence, according to the Ethiopian Investment Commission (EIC).

The Commission said Special Economic Zones exported $225 million worth of goods, an 80% increase from the previous fiscal year, while 528 new investment licenses were issued to domestic and foreign investors and more than 260 investment projects advanced from licensing into implementation and construction.

The figures, announced during the EIC’s annual performance review, cover Ethiopia’s 2018 fiscal year (2025/26). The review, led by Commissioner Dr. Zeleke Temesgen and the Commission’s senior leadership, assessed institutional performance, identified operational challenges and outlined priorities for the coming fiscal year.

Dr. Zeleke attributed the record investment inflows to nationwide macroeconomic reforms aimed at liberalizing key sectors, modernizing the financial system and reducing longstanding regulatory barriers.

The measures, he said, have strengthened Ethiopia’s investment climate and improved investor confidence.

The Commission also credited the rapid rollout of renewable energy projects with accelerating investment. Solar and other green energy companies that signed agreements during the 3rd Invest in Ethiopia Forum moved into active implementation over the past year, contributing to capital inflows while supporting infrastructure needed for industrial expansion.

The $4.32 billion total does not include investment commitments made during the recently concluded 4th Invest in Ethiopia Forum, the Commission said.

Those companies have since secured investment licenses, and the government is deploying dedicated support teams to accelerate project implementation.

The EIC also attributed its performance to the digitization of government services, which reduced administrative procedures for investors, and expanded Public-Private Dialogue platforms that helped resolve investor concerns, improve the delivery of investment incentives and strengthen coordination across government institutions.

Dr. Zeleke said Ethiopia will focus on improving policy predictability, strengthening regulatory frameworks and attracting high-quality investments that support sustainable economic growth and job creation.