Ethiopia’s Reforms Playing Decisive Role in Creating Conducive Investment Climate: UNIDO Investment, Responsible Business Head

Addis Ababa, April 23, 2026 (ENA) —Ethiopia’s ongoing economic reforms are playing a decisive role in creating a conducive and predictable investment climate, according to Stefan Kratzsch, United Nations Industrial Development Organization's Sustainable Investment and Responsible Business Unit Head.

In an exclusive interview with ENA, the Head said the reforms are critical to attracting both foreign direct investment and domestic capital, while ensuring that investments contribute to national development priorities such as job creation, value chain development, and export growth.

Kratzsch added that Ethiopia’s large population provides a significant market opportunity, allowing investors to scale operations domestically and expand into regional and continental markets through frameworks like the African Continental Free Trade Area.

The Head emphasized the importance of balancing foreign direct investment with domestic industrial development, underscoring that partnerships such as joint ventures and public-private partnerships are essential to ensure mutual benefits.

Kratzsch also highlighted the need to prioritize investments that uphold strong governance standards and promote inclusivity, particularly by enhancing the participation of youth and women in both employment and decision-making roles.

Commending the Ethiopian government’s transparency and active engagement with investors, the Head stressed that continued public-private dialogue will be vital to sustain investor confidence and further improve the business environment.

Ethiopia is well-positioned to play a pivotal role in Africa’s industrialization and could serve as a model for other countries pursuing sustainable and inclusive economic growth, he elaborated.

UNIDO has been supporting Ethiopia’s industrialization agenda through technical assistance, capacity building, and policy advisory services.