Addis Ababa: July 14, 2014 (FBC) – Investments in Ethiopia from the United States and Europe have been increasing rapidly over the past few years with their proportion equivalent to the amount of Asian investment.
Of 40.61 billion Birr (about US$2.06 billion) of foreign direct investment (FDI) in Ethiopia between mid-2010 and mid-2014, the share of U.S. and European investment was more than 19.27 billion Birr or about 47 percent of the total, according to official data.
During the past 10 years, Chinese and Indian investments had formed the lion’s share of FDI in Ethiopia but the situation has changed today. “When we see the FDI flows over the past ten years, most of the investments had come from Asian countries especially China and India, but now investment flows are nearly at an equal rate from Europe, America and Asia,” said Ethiopian Investment Agency public relations director Getahun Negash.
The year 2011 was the start for the boost in U.S. and European investment to Ethiopia with the trend continuing in subsequent years.
During the just concluded fiscal year, the U.S. and Turkey were just behind China in the number of investment projects and aggregate capital invested.
U.S. investment reached a high in 2012 with 194 projects involving 1.4 billion Birr in capital approved.
European investment reached higher in 2011 when 29 projects with 4.6 billion Birr projects were licensed (US$1 = ETB19.72).