World Economy

Ethiopia FDI Increases

Ethiopia FDI IncreasesEthiopia FDI Increases

The use of tax incentives has massively increased foreign direct investment to Ethiopia, an official told Anadolu Agency on Monday. In an interview, Ethiopian Investment Commission spokesperson Getahun Negash said that  FDI into Ethiopia had doubled since 2013, reaching about $2 billion in 2014 from $953 million in the previous year. He said last year a total of 363 investment projects, representing 53 countries, had been licensed. Most of them are in manufacturing and agriculture, with a number of projects in the services sector. Out of 215 projects which have started operations, 24 projects have already begun exporting products overseas. The government’s long-term economic goal is to transform Ethiopia into a middle-income country by 2023. Ethiopia’s Addis Ababa Rail project opened last month to the delight of excited residents of the country’s capital. The $475m urban rail project–funded by China–is one of the most obvious examples of Beijing’s huge role in Ethiopia’s infrastructure development. The world’s most populous nation has also built dams, roads, and factories in Ethiopia.