Addis Ababa, Ethiopia | May 12-13, 2025
Ethiopia recently concluded its third annual Invest in Ethiopia – High-Level Business Forum in Addis Ababa, where global investors, government officials, and development agencies convened to explore Ethiopia’s investment opportunities, focusing on the country’s evolving business environment and strategic growth sectors.
This year’s event showcased Ethiopia’s efforts to reposition itself as an investment leader in the region, highlighted by the $1.6 billion USD in deals signed during the forum. Key discussions centered on critical investment sectors such as renewable energy, ICT, and infrastructure development, with foreign investors eager to explore opportunities under the African Continental Free Trade Area (AfCFTA).
Key Investment Areas at the Forum:
1. Ethiopia’s Thriving Renewable Energy Sector:
• A significant portion of the discussions revolved around Ethiopia’s renewable energy potential, notably in solar energy and hydropower. The government emphasized the increasing demand for clean energy solutions and the abundant natural resources available for investment. This, combined with favorable tax incentives and long-term plans for energy infrastructure, positions Ethiopia as a critical hub for sustainable investments in East Africa.
2. ICT and Digital Transformation:
• With the liberalization of the telecom sector, Ethiopia is making strides to become a digital economy leader. This year’s forum attracted international telecom companies, including Safaricom, which has already invested heavily in Ethiopia. Mobile network expansion and broadband infrastructure are expected to be key drivers of future economic growth, opening opportunities for global players in the tech industry to expand.
3. Agro-Processing and Manufacturing:
• Ethiopia’s agriculture and manufacturing sectors continue to be attractive for investors. During the forum, business leaders discussed new opportunities in agro-processing and value-added manufacturing, crucial for Ethiopia’s goal of industrialization and creating a competitive economy. These sectors were spotlighted as central to Ethiopia’s economic growth and job creation.
$1.6 Billion in Deals:
A major achievement of this year’s forum was the $1.6 billion USD worth of signed investment deals. These agreements cover a variety of sectors and underscore Ethiopia’s commitment to attracting high-quality foreign investments. Companies from multiple regions, including Europe, Asia, and the Middle East, signed Memoranda of Understanding (MOUs) and investment contracts to further develop infrastructure projects, industrial parks, and agro-industries.
Government and Private Sector Collaboration:
Ethiopia’s government reaffirmed its commitment to public-private partnerships (PPP) as a primary strategy for sustainable economic development. Several ministers, including the Minister of Finance, Ahmed Shide, and the Minister of Foreign Affairs, Gedion Timothewos, emphasized the importance of fostering strong collaborations between the public and private sectors. This aligns with Ethiopia’s broader strategy to ensure the efficient use of resources and quick implementation of development projects.
Challenges and Opportunities:
While Ethiopia continues to progress economically, the forum also addressed ongoing infrastructure challenges, regulatory barriers, and the need for harmonized trade standards to facilitate smoother cross-border commerce. Experts suggested that these challenges could be addressed by negotiating agreements with neighboring countries, reinforcing the country’s infrastructure, and working with international bodies to streamline business operations
A Bright Future:
As Ethiopia pushes forward with its ambitious reforms, the forum concluded with a renewed sense of optimism about the country’s economic trajectory. The combination of abundant natural resources, a young and dynamic workforce, and improved business policies makes Ethiopia an attractive investment destination for the next decade.
With these successful deals and strategic initiatives, Ethiopia aims to position itself as a regional powerhouse, leveraging the benefits of the AfCFTA to create an integrated economy. Investors leaving the forum are optimistic about the future, seeing the country as a long-term partner for economic growth and innovation in East Africa.
Ermias Tilahun | Correspondent | Addis Ababa – Ethiopia
