Ethiopia has secured $13.1 billion in new investment commitments at the Fourth Invest in Ethiopia: High-Level Business Forum, marking one of the largest single-event mobilizations of capital in the country’s recent history. The two‑day forum, held on March 26–27 at the Ethiopian Skylight Hotel, brought together hundreds of international investors, policymakers, and development partners to engage with Ethiopia’s evolving economic landscape. This year’s outcome far surpassed the government’s initial target of $2.4 billion and builds on momentum from the 2025 forum, where $1.6 billion in deals now fully operational were signed.

Organized by the Ethiopian Investment Commission (EIC), the Ministry of Finance, and members of the Development Partners Group, the forum is a key component of Ethiopia’s broader strategy to expand foreign direct investment and transition toward a more open, private‑sector–driven economy. Officials emphasized that the platform has become central to showcasing Ethiopia’s reform progress, sector opportunities, and improved investment climate.

Deputy Prime Minister Temesgen Tiruneh opened the forum by underscoring Ethiopia’s rapid policy shifts and renewed commitment to private‑sector growth. He described the event as part of a “future of shared prosperity” in which Ethiopia is “advancing toward… sustained investment drive and far‑reaching economic reforms.” He emphasized that the country is “taking decisive steps to strengthen partnerships and create a conducive environment for investment,” reaffirming Ethiopia’s intention to build a “competitive, predictable, and welcoming investment climate” under the theme Ethiopia Ready for Business.

Temesgen highlighted the structural changes being implemented under the Home‑Grown Economic Reform Agenda (HGER), which include the opening of key sectors, expansion of private-sector participation, and removal of barriers previously restricting investment. He also pointed to Ethiopia’s large population, geographic advantage, and ongoing flagship projects, stating these reflect the country’s “capacity to deliver transformative initiatives.” He urged attendees to “engage with confidence,” signaling readiness for sustained collaboration.

Minister of Finance Ahmed Shide, delivering the keynote address, emphasized the government’s reform priorities, stating that Ethiopia is entering “a transformative era driven by bold and far-reaching reforms.” His remarks outlined the government’s agenda to modernize the economy through improved macroeconomic management and progressive sectoral opening.

Shide cited the introduction of a market‑based exchange rate system, modernization of tax administration, and digitization of government services, all aimed at reducing administrative obstacles and improving transparency. He affirmed that “the reform momentum is real, irreversible, and designed with the investor in mind,” stressing that Ethiopia is liberalizing critical sectors including telecom, banking, and wholesale and retail trade to attract global capital.

The minister also noted Ethiopia’s shift toward implementation: “Ethiopia is not only open for business but actively inviting investors to become part of a transformative growth journey built on trust and innovation.” His comments underscored the government’s intent to move from policy declarations to on‑the‑ground delivery, increasing confidence among private investors seeking predictability.

EIC Commissioner Zeleke Temesgen reinforced the forum’s objective as more than a promotional exercise. Addressing the gathering, he said investment agreements are “increasingly being translated into concrete results,” marking a shift “from promotion to delivery and from dialogue to implementation.” He emphasized that Ethiopia’s reforms are “creating a system where investors can enter, operate, and grow with confidence,” highlighting progress in improving foreign-exchange access, sector incentives, and the development of capital markets.

Zeleke noted that Ethiopia’s investment profile continues to rise due to reforms aimed at creating attractive, predictable conditions. He reaffirmed that the EIC will “provide necessary support and follow‑up throughout investors’ journeys,” as the government seeks to solidify Ethiopia’s place as one of Africa’s most appealing destinations for investment.

Representing European partners, Italy’s Vice Minister of Foreign Affairs Maria Tripodi highlighted Ethiopia’s advancement in regulatory modernization and progress toward WTO accession. She stated that these reforms are “creating a more stable and attractive climate for global partners,” underscoring the importance of Ethiopia’s legal reforms and structural transition in strengthening investor confidence.

Tripodi’s remarks reflected broader European engagement through the EU’s Global Gateway framework, which prioritizes digital transformation, clean energy, and sustainable value chains, areas aligned with Ethiopia’s reform agenda.mThe EIC confirmed that the $13.1 billion in new investment agreements spanned key sectors including manufacturing, agriculture and agro‑processing, energy, construction, and industrial infrastructure. Officials noted that these projects are expected to fuel job creation, improve foreign-exchange earnings, enhance technology transfer, and strengthen Ethiopia’s industrialization efforts.

The 2026 commitments represent a substantial increase over previous years, where the 2025 forum yielded $1.6 billion in deals that have since become fully operational. According to EIC reports, these earlier projects are already contributing to export growth, industrial expansion, and employment creation, demonstrating the country’s improving capacity to transform signed agreements into concrete outcomes.

Recent official data shows Ethiopia emerged as the second-largest destination for FDI in Africa, attracting $18.6 billion in foreign direct investment over the past five years. Chinese firms account for the largest share of this capital, reflecting long-standing involvement in manufacturing, industrial parks, energy, and logistics. In the 2024/2025 fiscal year alone, Ethiopia attracted $4 billion in FDI, an increase of 22.7% over the previous year. This surge is attributed to liberalization policies that opened previously restricted sectors such as retail, wholesale, and import-export trade. Officials also report that 1,477 new investment permits were issued to foreign investors over the past five years, signaling deepening global engagement in Ethiopia’s economy.

Industrial parks remain a cornerstone of Ethiopia’s industrialization strategy. In the first half of the 2025/26 fiscal year, industrial parks and special economic zones attracted $377 million in new investments from 64 investors across China, the United States, India, Djibouti, and the United Kingdom. These parks generated more than $112.6 million in export earnings and recorded occupancy rates of over 90%, underscoring their role as platforms for export‑oriented manufacturing and industrial development.

Development partners highlighted the forum’s importance in demonstrating progress made under Ethiopia’s reform agenda. The World Bank’s Division Director for Ethiopia, Maryam Salim, stated the forum comes at “a pivotal moment,” noting that “Ethiopia is at a turning point. The country has good momentum of reforms, macroeconomic stabilization, [and] opening up sectors that were previously off limits to private sector. This year’s forum is particularly timely.”

She emphasized the significance of reforms including a market‑determined exchange rate, customs reforms aligned with WTO standards, and measures to improve competitiveness. Her remarks reinforced the Bank’s continued support for Ethiopia’s transition toward a more market-oriented, private‑sector‑driven economy. Beyond forum participants, Ethiopia’s wider investment ecosystem is increasingly shaped by regional actors, particularly Gulf countries. The United Arab Emirates, one of Africa’s leading foreign investors, has articulated an investment approach that aligns with Ethiopia’s long‑term priorities in infrastructure, logistics, agriculture, and technology‑driven development.

In a recent separate interview with The Afro Times, His Excellency Sultan Mohammed Al Shamsi, UAE Assistant Minister of Foreign Affairs for Development and International Organizations, said:

“The UAE has established a large and expanding investment footprint across Africa, making it one of the continent’s leading foreign investors in recent years. Its presence spans North, East, West, and Southern Africa, driven by a mix of sovereign wealth funds, state-linked firms, and private investors. The UAE’s approach combines long-term capital, trade integration, and strategic partnerships rather than short-term portfolio investment.

Although unrelated to the Addis Ababa forum, these remarks offer important context for Ethiopia’s broader engagement with Gulf investors whose patient, infrastructure‑focused investment style aligns closely with sectors highlighted at the 2026 forum.

As the forum concluded, government officials emphasized that Ethiopia’s next step is ensuring the rapid and effective implementation of the $13.1 billion in commitments. Commissioner Zeleke Temesgen reiterated the government’s focus on translating agreements into operational projects, noting that the EIC will continue to support investors throughout all stages of project development.

The forum’s outcome underscores Ethiopia’s accelerating shift toward a more competitive, reform‑anchored investment environment. With growing interest from global partners, continued macroeconomic stabilization, and an expanding industrial base, Ethiopia is positioning itself as a leading investment destination in Africa, one shaped by both bold reforms and strengthening international partnerships.

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Ethiopia Mobilizes Record $13.1 Billion in Commitments, Marking a Turning Point for Private-Sector Growth

Ethiopia Mobilizes Record $13.1 Billion in Commitments, Marking a Turning Point for Private-Sector Growth