Ethiopia has posted a record of $4.32 billion in foreign direct investment for the 2025/26 fiscal year, marking an 8 percent year-on-year increase and underscoring the country’s growing appeal to international investors.
The figures, released by the Ethiopian Investment Commission during its annual performance review, show that the country’s economic reform drive is beginning to translate into measurable gains. In the same period, the commission issued 528 new investment licenses and pushed more than 260 projects into active development and construction.
A major driver of the strong performance was the rapid expansion of Ethiopia’s special economic zones. Export revenue from the zones climbed to $225 million, up 80 percent from the previous fiscal year, helped in part by green technology manufacturers that moved from commitment to commercial production.
That momentum reflects a broader shift in the country’s investment landscape. Solar energy firms and other industrial players that signed on during the 3rd Invest in Ethiopia 2025 Forum have now completed construction and begun operations, adding depth to the country’s export base.
The commission said the $4.32 billion figure does not yet include capital pledges secured at the 4th Invest in Ethiopia 2026 Forum, meaning actual inflows could rise further as those projects begin work.
EIC Commissioner Dr. Zeleke Temesgen attributed the results to Ethiopia’s macroeconomic reform agenda, which has streamlined local operating rules and replaced broad tax holidays with performance-based incentives under Regulation No. 586/2026.
For the next fiscal year, the commission says its focus will shift from simply tracking investment volume to strengthening institutional coordination, deepening public-private dialogue and improving policy predictability to attract more strategic industrial capital.
If sustained, the trend suggests Ethiopia is not just opening its economy. It is trying to make itself harder to ignore. Source Business Insider Africa
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