Ethiopia is currently experiencing a significant increase in foreign direct investment (FDI) in its Special Economic Zones (SEZs), as reported by the Industrial Parks Development Corporation (IPDC).
In an exclusive interview with The Ethiopian Herald, IPDC's Investment Promotion and Marketing Deputy CEO, Zemen Junedi, revealed that a wider range of international investors are now entering Ethiopia's SEZs, expanding beyond the previously dominant presence of investors from China and India.
Today, the country is attracting strong interest from countries such as Japan, Vietnam, various Southeast Asian nations, African countries, and others, according to Zemen. These investors are involved in sectors such as smart solar technology, agro- processing, automobile assembly, aerospace manufacturing, and other advanced industries.
Zemen attributed this growing investor interest to recent economic reforms that have made Ethiopia a more appealing destination for global capital. SEZs are increasingly seen as gateways for multinational companies seeking to establish a presence in Ethiopia's emerging market, especially those entering for the first time.
Zemen also emphasized the increasing role of local talent and businesses. Previously, Ethiopian employees held mostly lower-level roles, but now they are advancing into senior and managerial positions within SEZs, he noted.
The participation of local investors has also significantly increased, now accounting for nearly 60% of activity in these zones. This trend is described as a key driver of Ethiopia's industrial structural transformation.
The development of industrial corridors across the country has further boosted both domestic and foreign investment. For example, the Deputy CEO mentioned that companies operating in the Jimma SEZ have successfully exported avocado products to European and American markets. This SEZ has also created sustainable market linkages for around 10,000 local farmers. Additionally, new investments in the coffee and tea sectors are underway, with machinery currently being installed for production.
Zemen concluded that most companies that have signed agreements with IPDC are either in the process of installing machinery or have already commenced production.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD WEDNESDAY 25 JUNE 2025
