Ethiopia Draws 1.3 Trillion Birr in Private Investment Through Reform Agenda, Says PM Abiy

Addis Ababa, January 17, 2026 (ENA)—Prime Minister Abiy Ahmed announced that Ethiopia has attracted approximately 1.3 trillion Birr in private investment as a result of ongoing economic reforms aimed at creating a more enabling environment for private-sector growth.

Speaking at the Finance Forward Ethiopia Conference, the Prime Minister said the government has laid the groundwork for private investment to play a central role in advancing national prosperity.

PM Abiy emphasized that sustainable development requires clearly defined and mutually respected roles between the government and the private sector, in line with Ethiopia’s Medemer philosophy.

“Restricting the private sector stifles innovation,” Abiy warned, noting that reduced innovation directly weakens job creation and economic growth.

He stressed that the government’s primary responsibility is to create the right conditions for businesses to thrive, adding that long-term economic progress depends on empowering private actors to innovate and expand.

The Prime Minister said the government is taking decisive steps to strengthen the private sector, with particular attention to supporting emerging entrepreneurs and startups.

He noted that large-scale public investments—such as initiatives in soil fertility improvement and energy development—are being implemented in the national interest while creating space for meaningful private-sector participation.

Highlighting the Addis Ababa riverside corridor development as a practical example, the Premier said the project has unlocked significant investment opportunities.

 According to him, the initiative has attracted around 1.3 trillion Birr in private investment through the establishment of malls, restaurants, and other businesses along both sides of the corridor.

He further stated that efforts are underway to elevate public–private cooperation to a higher level, alongside reforms of public development institutions to improve efficiency and performance.

 As evidence of successful reform, he cited Ethio Telecom and Ethiopian Airlines, describing them as clear examples of the positive outcomes of effective institutional transformation.

The Prime Minister also reaffirmed the government’s commitment to engaging the Ethiopian diaspora as a strategic partner in national development.

“We will continue strengthening our efforts to ensure the diaspora becomes a leading participant in the country’s development,” he said.