CHINA continues to dominate foreign direct investment (FDI) in Ethiopia, with more than 4,500 Chinese-led projects currently active across various sectors, according to a senior Ethiopian government official.
Speaking at a press briefing ahead of the Invest In Ethiopia 2025 forum, Ethiopian Investment Commission (EIC) Commissioner Zeleke Temesgen said Chinese firms represent the largest share of foreign investment in Ethiopia both in terms of capital and number of projects.
‘There are 4,510 active Chinese-run projects in Ethiopia, making China the leading source of FDI in our economy,’ Temesgen noted. The forum, scheduled for May 12–13 in Addis Ababa, aims to showcase Ethiopia’s evolving investment landscape to global stakeholders.
China drives nearly half of total FDI
In the Ethiopian fiscal year ending 7 July 2024, the country attracted $3.92bn in FDI—nearly 50 percent of which came from Chinese investors, Temesgen revealed. This substantial contribution underscores Beijing’s long-standing role in Ethiopia’s industrialisation and infrastructure development.
Chinese investment has particularly flourished in sectors such as textiles, information and communication technology (ICT), manufacturing, and logistics.
‘These investments have created thousands of employment opportunities, especially for young people,’ Temesgen said, highlighting the socio-economic impact of the partnership.
Emerging sectors draw new Chinese interest
New policy reforms have opened Ethiopia’s import, export, wholesale, and retail sectors to foreign investors. Over the past five months, 40 international firms—including several Chinese companies—have secured investment permits from the EIC to enter strategic areas like electric vehicle (EV) manufacturing and agricultural exports.
Chinese businesses are also stepping into the export of pulses, oilseeds, livestock, and other commodities, in line with Ethiopia’s push to diversify its economy and boost foreign exchange earnings.
According to EIC data, over $8.5bn has been invested by Chinese companies in Ethiopia to date, spanning more than 3,300 projects. These ventures have created more than 325,000 permanent and temporary jobs for Ethiopian citizens.
Ethiopia looks to deepen international ties
The upcoming Invest In Ethiopia 2025 business forum in Addis Ababa is expected to attract hundreds of investors from Asia, the Middle East, Europe, and North America. Government officials hope to leverage China’s successful track record to entice further global interest.
EIC officials believe sustained FDI is critical to Ethiopia’s long-term growth and stability, especially amid efforts to modernise infrastructure, stimulate innovation, and reduce youth unemployment.
‘China’s investment story in Ethiopia sets a valuable example of long-term strategic partnership,’ Temesgen concluded, pointing to continued government support for investment-friendly policies and public-private collaboration.
