Ethiopia's Economic Reform Encourages Indian Companies to Invest in Ethiopia, Says Ambassador Rai

Addis Ababa, July 11, 2025 (ENA)—Ethiopia's Homegrown Economic Reform Agenda has brought transformative changes that encourage Indian foreign direct investment (FDI) into the country, India's Ambassador Anil Kumar Rai told ENA.

The Indian Ambassador to Ethiopia hailed the economic reform agenda as a significant catalyst that encourages Indian companies to invest across various sectors in the country.

 The prospects for foreign investment, particularly from India, appear to be promising and pave the way for enhanced economic growth and collaboration between the two nations, he added.

 According to him, the floating of the Ethiopian currency and the relaxation of investment policies that allow foreign investors to repatriate dividends freely, and the recent legislative change which enables foreigners to purchase property in Ethiopia mark a pivotal shift in the investment landscape.

 “The Homegrown Economic Reform of Ethiopia has brought many changes from economic perspective,” the ambassador noted, adding that “the currency has been floated, foreign investors are given leverage to take back their repartition of dividends, the investment policy has been relaxed, the parliament passed bill which allows foreigners to come and hold a house in Ethiopia. These are some very positive changes which are taking place in the country.” 

Moreover, Ambassador Rai stated that the improvements in the money market and the opening of the retail sector are leading to increased interest from Indian businesses.

A number of Indian companies are looking very seriously towards Ethiopia, he revealed.

Furthermore, he pointed out that “sectors like mining, which has been underutilized, information technology, banking and finance, capital markets, among others, are some of the areas that Indian investors are keenly interested in.”

Noting that agriculture is a cornerstone of Ethiopia's economy, the ambassador said the sector remains a focal point for Indian investors.

 "Agriculture is an important sector where Ethiopia has large arable land, good water resources, and very hardworking population. So, Indian companies are looking to establish a base in Ethiopia for cash crops, horticultural products, floriculture as well as medicinal and aromatic plants.” 

 Finally, the ambassador expressed optimism about the future of Ethiopia, crediting the leadership of Prime Minister Abiy Ahmed for opening up the economy.

 "His energy, vision, and dynamism are sure to bring substantial benefits to the people of Ethiopia."