The East African nation exceeded its annual investment targets, issuing hundreds of new business permits and recording strong export growth from its Special Economic Zones.
ADDIS ABABA, Ethiopia attracted $4.32 billion in foreign direct investment (FDI) during the 2025/26 fiscal year, marking an 8 percent increase compared to the previous year and reinforcing the country’s position as one of Africa’s fastest-growing investment destinations.
The latest figures highlight continued investor confidence in Ethiopia’s economic reforms and industrial expansion, with officials indicating that the total investment could rise further as it does not yet include commitments announced during the Invest in Ethiopia 2026 Forum, where international investors pledged additional capital across key sectors.
According to investment authorities, Ethiopia surpassed its annual investment target after issuing 528 new investment permits to both local and foreign investors. The approvals cover projects across manufacturing, agriculture, renewable energy, mining, logistics and technology, reflecting the country’s drive to diversify its economy and attract long-term investment.
The report also shows that more than 260 approved projects have moved into active implementation, signalling steady progress from investment commitments to on-the-ground development. Officials say the projects are expected to create thousands of jobs while supporting industrial growth and expanding the country’s production capacity.
Ethiopia also recorded strong performance in its Special Economic Zones (SEZs), where exports reached $225 million during the fiscal year. The figure represents an 80 percent increase compared to the previous year and enabled the country to achieve its export target for the period.
Government officials attributed the growth to ongoing reforms aimed at improving the investment climate, expanding industrial parks, modernising infrastructure and creating a more competitive environment for businesses.
Analysts say the rise in foreign investment reflects increasing confidence in Ethiopia’s long-term economic potential, despite global economic uncertainties. The country’s large domestic market, strategic location and continued infrastructure development have made it an attractive destination for investors seeking opportunities in Africa.
The investment performance is expected to support Ethiopia’s broader economic agenda by stimulating industrial production, increasing export earnings and creating employment opportunities, particularly for young people.
Officials say the government remains committed to implementing policies that encourage private sector participation while strengthening Ethiopia’s role as a regional manufacturing and investment hub.
With additional investment announcements expected to be confirmed following the Invest in Ethiopia 2026 Forum, authorities believe the country’s final FDI figures for the fiscal year could exceed the current $4.32 billion, further strengthening Ethiopia’s economic outlook.
TNAM
By Egwu Patience Nnennaya
Monday July 13, 2026.
