Chinese are the lead investors in Ethiopia

(Eastern Africa) (Global ties: Asia) (3minutes read)

Chinese companies have positioned well in Ethiopia to emerge as the highest investing nation in the East African country.

There are 1,564 projects, which have been completed or under implementation in Ethiopia operated by the Chinese companies.

Chinese companies have positioned well in Ethiopia to emerge as the highest investing nation in the East African country. There are 1,564 projects, which have been completed or under implementation in Ethiopia operated by the Chinese companies.  Ethiopian Investment Commission (EIC) officials pointed out Chinese companies have higher investments in Ethiopia both in terms of number of projects and capital than any other country, which have invested in the East African country.

Chinese investments in Ethiopia are in various segments including manufacturing, construction, infrastructure, real estate development, agriculture, tourism and hospitality and telecommunications. Of the 1564 Chinese projects in the country, 987 projects are under operational phase during the last two decades (during 1998 to 2020). The remaining projects are under pre-implementation stage. According to the statistics put in the public domain by EIC, 1133 projects are in the manufacturing sector.

Investments are also coming from countries in North America, Australia and Europe. Of late, Ethiopia has made drastic policy changes to attract foreign investments and to create a strong band of domestic entrepreneurs. Ethiopia is one of the fastest growing countries in the world. However, the country has  faced some strong internal dissensions, which it is tackling very strategically without an authoritarian approach unlike in some of the countries in the continent. It is significant to note Ethiopia’s Prime Minister Abiy Ahmed was the recipient of last year’s Nobel Prize for Peace.