Ethiopia Attracts Record 4.32 Billion USD in FDI in 2025/26 fiscal year

Addis Ababa, July 9, 2026 (ENA) —Ethiopia attracted 4.32 billion U.S. dollars in Foreign Direct Investment (FDI) during the 2025/26 Ethiopian Fiscal Year.

The achievement has marked an eight percent increase from the previous year and underscored growing international investor confidence in the country's sweeping economic reforms.

The figures were unveiled during the Ethiopian Investment Commission's (EIC) annual performance review, where Commissioner Zeleke Temesgen presented the institution's achievements and priorities for the coming fiscal year.

 

According to the Commissioner, the 4.32-billion-dollar inflow does not yet include investments pledged during the 4th Invest in Ethiopia 2026 Forum by companies that have since obtained investment licenses.

He noted that the Commission is working closely with investors to ensure that pledged projects move rapidly from licensing to implementation.

The performance review highlighted that the Commission issued 528 new investment licenses during the fiscal year, surpassing its annual target and achieving more than 100 percent of its planned performance.

Ethiopia also recorded strong gains in export-oriented industrial production.

 Products worth 225 million U.S. dollars were exported from the country's Special Economic Zones (SEZs) during the fiscal year, meeting the Commission's annual target and representing an 80 percent increase compared to the previous year.

Zeleke attributed much of the success to Ethiopia's ongoing macroeconomic reforms, which have improved the investment environment and accelerated project implementation.

 He noted that companies, including solar manufacturing firms that committed investments during the 3rd Invest in Ethiopia 2025 Forum—have moved swiftly into operation, contributing significantly to the country's investment performance.

 

The Commission also reported that more than 260 investment projects advanced into the implementation stage during the fiscal year, exceeding planned targets and reflecting improved investment facilitation.

Public-Private Dialogue (PPD) platforms held throughout the year also played a key role in strengthening investor confidence, improving policy predictability and enhancing coordination among government institutions, the Commissioner said. He called for expanding these consultative mechanisms to further improve Ethiopia's investment climate.

Beyond investment inflows, the Commission highlighted progress in accelerating licensed projects into operation, creating employment opportunities, expanding digital investment services, strengthening monitoring and evaluation systems, improving investment incentives, increasing domestic revenue collection and enhancing grievance-resolution mechanisms for investors.

Commending the Commission's staff for the year's achievements, Zeleke stressed that sustaining the momentum will require continued reforms and stronger institutional collaboration.

 

He said the Commission's priorities for the new fiscal year will include making Ethiopia's investment environment more predictable, attracting higher-quality strategic investments, expediting project implementation and deepening coordination among public institutions.

Observers say the latest investment figures reinforce Ethiopia's position as one of Africa's fastest-growing investment destinations, reflecting the positive impact of the country's ongoing economic reform agenda and its efforts to attract productive, export-oriented and technology-driven investments.