FDI Flows Surging After Macroeconomic Reform: Ethiopia Commission

October 12, 2024

DUKEM – The flows of Foreign Direct Investment (FDI) have been on rise since the implementation of the macroeconomic reform, which adjusted the foreign exchange regime to market rates, according to the Ethiopian Investment Commission.

During a media trip to the Eastern Industry Park in Dukem, Deputy Investment Commissioner Zeleke Temesgen (PhD) briefed journalists that the number of incoming foreign investors has increased, motivated by the recently endorsed reforms.

“The Commission is receiving investment proposals from investors of various nationalities, and several investment licenses are expected to be issued soon,” Zeleke stated.

Companies that have already been operating for several years are also expanding their business, addressing past challenges through government initiatives and the benefits of the reform, he added.

Dagato Kunbie, another Deputy Commissioner at the Investment Commission, emphasized that legal reforms allowing foreign investors to engage in wholesale and retail trading have also been well-received.

“We have been receiving many requests from foreign investors following the announcement of this reform, and several companies will soon enter the local market,” he remarked.

He further noted that the government remains committed to supporting foreign investors who make significant contributions to the local market.

The Commission received 72 new investment proposals during the past three months, marking a 12 percent increase compared to the same period last year.

Chinese firms, predominantly engaged in industrial production and supplying goods to the local market, have also praised the reform.

De Yifan, General Director of Linda- Ethiopia Garment, stated that his company is overcoming the foreign exchange shortage following the reform.

“The macroeconomic reforms have created a better business environment, allowing us to produce more efficiently,” De Yifan said. Linda-Ethiopia Garment supplies its products to the local market, substituting imports, The Ethiopian Herald was learnt . BY YESUF ENDRIS

THE ETHIOPIAN HERALD SATURDAY 12 OCTOBER 2024