Ethiopia plans to attract 5.1 bln USD in Foreign Direct Investment in 2018/19

Source: Xinhua| 2018-09-05 22:15:09|Editor: Yurou
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ADDIS ABABA, Sept. 5 (Xinhua) -- Ethiopia plans to attract 5.1 billion U.S. dollars in Foreign Direct Investment (FDI) during the current Ethiopian Fiscal Year 2018/19, which started on July 8, an Ethiopian official said on Wednesday.

Speaking to Xinhua, Mekonen Hailu, Communications Director, Ethiopia Investment Commission (EIC), said the government decision to open the logistics sector to foreign investors and the expected commissioning of four Chinese built industrial parks during the fiscal year is expected to help achieve the 2018/19 FDI revenue goal.

Jimma Industrial Park, Adama industrial Park, Dire Dawa Industrial Park and Arerti Industrial Park are expected to be commissioned before the end of 2018.

Jimma and Arerti industrial parks are being constructed by China Communications Construction Company (CCCC) while Dire Dawa and Adama industrial parks are being constructed by China Civil Engineering Construction Corporation (CCECC).

Hailu further said with the easing of political unrest in Ethiopia which had affected the East African country for almost three years starting in 2015, and measures being taken to solve the country's foreign currency shortage, EIC is hopeful the 5.1 billion U.S. dollars FDI target for 2018/19, will be achieved.

"Ethiopia was only able to attract 3.75 billion U.S. dollars during the previous fiscal year 2017/18, but we expect a reinforced FDI inflow from Chinese and other Asian companies in the current fiscal year 2018/19, will help Ethiopia achieve its 5.1 billion U.S. dollars target." said Hailu.

Ethiopia plans to utilize FDI as a catalyst to increase the manufacturing share of the country's GDP from the current 5 percent to 20 percent by 2025, as part of plans to become an industrialized middle income economy by 2025.