Ethiopia to hold investment forum aimed at promoting FDI
Today, Ethiopia will hold a consultative forum which promotes investment opportunities in the country.
The government hopes to facilitate a conducive environment for foreign direct investment, especially targeting the Ethiopian diaspora. Textile, agriculture, industrial parks, health and logistics have been prioritized for private investors. One of the fastest growing economies in 2018, when President Abiy Ahmed took office, a year of war has devastated economic growth and sent foreign investors scrambling.
Despite the IMF’s prediction of just a 2% economic growth rate in 2022, the central government insists that Ethiopia will see an 8.7% rate. The government is likely to maintain the image of an economy rich with opportunities despite 9.4 million people in famine. To remedy this, expect investment to be funneled heavily into the agribusiness sector to combat droughts and locust invasions. In the long term, Ethiopia has applied for the G20’s debt restructuring program. However, efforts to finalize the restructuring process have been slow-moving, with fewer investors willing to buy up Ethiopian debt estimated by the World Bank to be $28.4 billion. An inability to find sufficient investment could result in a heavier reliance on China, which already comprises over 30% of FDI in Ethiopia.
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