Ethiopia’s Elevation In Diplomacy Opening Investment Flow 

Ethiopia’s Elevation In Diplomacy Opening Investment Flow


It is noted that the Agreement on the Permanent Cession of Hostilities signed between the Federal Government of Ethiopia and TPLF in Pretoria, South Africa on 2 November, 2022,  has won Ethiopia not only a wider international acclamation but also elevated its stature in diplomacy. Following the bold decision of the government to sign the peace accord to resolve the conflict in the northern part of the country and its effective implementation afterwards, Ethiopia has evolved from strained diplomacy to new diplomatic heights.

Moreover, the signing of the peace agreement has vividly demonstrated Ethiopia’s irreversible stand for peace in the country and the Horn of Africa, where some influential political figures in Africa have started urging Ethiopia to step up its usual positive role for the cause of Africa both in the sub-region and in the entire continent. 

Over the last couple of months, different high ranking executives  of foreign countries, mostly from Europe, the USA, including the Hungarian Minister of Foreign Affairs and Trade, Peter Szijjarto, the Prime Minister of Italy, Georgia Meloni, Foreign Ministers of  France and Germany, Catherine Colonna and Annalena Baerblock respectively, British Foreign Secretary James Cleverly, EU Special Representative for Human Rights, Eamon Gilmore, Deputy Prime Minister of Slovenia, Tanja Fajon, Vice President of the Republic of Colombia, Francia Elena Márquez Mina and a number of other officials across the world have visited Ethiopia and exchanged views on national and regional issues of common interest.

During their discussions with both Prime Minister Abiy Ahmed and  Deputy Prime Minister and Foreign Affairs Minister, Demeke Mekonen, the officials expressed the appreciation of their respective governments on the successes achieved in bringing peace to the northern part of the country and on their strong desire to foster the existing bilateral relations and cooperation with Ethiopia. They also discussed with other government officials on how to boost bilateral relations, economic cooperation and the ongoing relief and rehabilitation programs in the northern part of the country.

Although relative peace and stability is already ensured in the country, there is huge resource mobilization needs not only for relief and rehabilitation assistance in the war ravaged areas of the country but also to reinvigorate the reconstruction of destroyed infrastructure facilities and embark on investment opportunities based on the trust and mutual understanding between Ethiopia and its partners to revamp the socio-economic development endeavors.

The imperatives of buttressing the dividends of peace with socio-economic development will help to ensure sustainable peace and development in the country in line with the Ten Years Perspective Plan which is now under implementation. FDI in the areas of the commanding heights of the economy including agriculture, mining, tourism development, manufacturing industries, energy and infrastructure development are of critical importance for peaceful and uninterrupted economic development for the country.

Invest Ethiopia 2023 International Investment Forum held from April 26 to 28 here in Addis Ababa was also a big achievement. The forum aimed to obtain 3 billion USD in FDI for 2023 including 500 million USD soft commitments in the short run. Ethiopia has now become a major investment destination in Africa primarily because of the comparative advantage the country is providing. This includes, among other things, lucrative investment climate, growing economy, excellent climate and fertile soil, young and trainable labor force, access to global markets, improved economic infrastructure, competitive incentive package and government commitment. A number of foreign visitors who attended the forum told ENA that senior government officials had provided them with clear presentations about the investment potentials, impressing them about the potentials of country. 

In view of the diplomatic stature and its attendant results witnessed over the last couple of weeks, such trends can be multiplied by leaps and bounds in the future, calling for multifaceted preparations from public offices and service providing institutions.

 So, efforts must be intensified to sustain the results which country has registered following the peace agreement and its implementation.   

In the first place, Ethiopia’s foreign diplomatic missions abroad should conduct various forums for foreign investors, tourists and others to raise their awareness on the country’s investment potentials and the incentives offered by the Ethiopian Investment Commission (EIC).  This could be done through online conferences in which potential investors can be invited to take part. Or, as Ethiopia is participating in international trade fairs, such occasions should be properly utilized to lure more FDI into the country.

The initiatives started by EIC in providing one stop services for incoming investors should be promoted. Eco-tourism development projects are intensified with public resources, and many more projects are waiting for investors. Attracting FDI into the country needs swift provision of services for potential investors.

By all standards, Ethiopia’s diplomacy is elevating with the resultant effect of investment flows. For many foreign investors, Ethiopia has become their choice from Africa. Of course, compared to other African countries, Ethiopia has a far better investment policy with attractive incentives. Potential investors, service delivery institutions and relevant actors need to exploit the comparative advantage at their disposal. 


Ethiopian News Agency