Ethiopia’s Economic Liberalization Attracts FDI, Enhance Efficiency  

Addis Ababa, May 17, 2025 (ENA) -- Ethiopia's ongoing economic reform is an encouraging move as it enhances the broader economic situation of the country by fostering efficiency and attracting foreign direct investment, Lennox Yieke, a business and finance journalist at African Business Magazine based in Kenya, underlined.   

In an exclusive interview with the Ethiopian News Agency, Yieke expressed optimism regarding Ethiopia's ongoing economic reforms, emphasizing that it is encouraging to see the government prioritize economic transformation as a central agenda.

He noted several key initiatives have been taken that demonstrate the country's commitment to fostering a more open and competitive economic environment.

One of the most notable measures taken by the Ethiopian government is the decision to open the telecommunications sector to foreign competition.

According to him, this move is expected to enhance efficiency, improve service quality, and attract foreign investment, ultimately benefiting the broader economy.   

In a similar vein, the journalist added that the government's initiative to liberalize the banking sector by allowing foreign competition is seen as a decisive and strategic step.

This policy change will likely introduce advanced financial services, foster innovation, and enhance access to credit, which is crucial for economic growth.

Furthermore, Yieke commended Ethiopia's efforts to collaborate with international financial institutions such as the World Bank and the International Monetary Fund (IMF) to support its reform agenda.

Such partnerships can provide technical expertise, financial assistance, and policy guidance, helping Ethiopia navigate the complexities of economic transformation and ensuring sustainable progress, he pointed out.

The government's foreign exchange policy has also been instrumental in facilitating business operations, as it has enabled the business community to access a greater amount of foreign currency needed for international trade and investment.

This policy adjustment, he said, is expected to ease liquidity constraints and enhance the ease of doing business, contributing to overall economic development.

Another noteworthy initiative Yieke mentioned is Ethiopia's launch of a stock market, a development that signals the country's commitment to modernizing its financial sector.

Establishing a stock exchange will create opportunities for businesses to raise capital, improve transparency, and attract both local and international investors, Yieke stated.