612 investors commit $53.5M in Addis Ababa in Q1 2023/24, driven by policy reforms, digital tools, and improved investor facilitation.
Addis Ababa Attracts $53.5 Million in New Investments in Q1
By Charles Wachira
The Addis Ababa Investment Commission (AAIC) has announced a strong start to the 2023/24 fiscal year, with 612 investors committing a combined capital of Birr 2.93 billion ($53.5 million) in the first quarter — marking a 13% increase compared to the same period last year.
This rise signals sustained investor confidence, despite ongoing economic challenges across Ethiopia.
“Our efforts to streamline investment processes and resolve bottlenecks are yielding results,” said Meseret Woldemariam, AAIC’s Director of Communication. “We remain committed to ensuring investors thrive in Addis Ababa.”
Leading Sectors: Services and Manufacturing
Most new investment licenses went to the service and manufacturing sectors:
- Service sector: includes hotels, tourism, and IT enterprises.
- Manufacturing: spans electrical products, steel, wood, and textiles.
These projects have already created 8,707 jobs, including 770 permanent and 490 temporary roles. AAIC is conducting on-site field visits to support quick investor rollouts.
“Our team works closely with new investors to address challenges promptly,” Meseret added.
Tackling Challenges Through Reforms
Key obstacles remain, including:
- Foreign currency shortages
- Limited workspace access
However, recent reforms are easing pressures. The National Bank of Ethiopia announced a 30% increase in forex allocation to priority sectors in October 2024, welcomed widely by investors.
“We are working closely with the Mayor’s Office of Addis Ababa to offer support with rental spaces and operational guidance,” said Meseret.
Digital Drive and Investment Targets
AAIC has set a year-end target of Birr 15 billion ($274 million) in total investments.
A newly launched digital investment portal (November 2024) is expected to:
- Cut investor registration time by 40%
- Improve process transparency and feedback tracking
“We’re confident that these tools will attract more investors and strengthen trust among existing ones,” Meseret said.
Investor Voices: A Vote of Confidence
Ethiopian business leader Ahmed Yusuf, who launched a $3 million IT hub in Addis, praised the ongoing reforms.
“The improvements in investor services and forex allocation are encouraging,” he noted. “We now need faster licensing and fewer operational delays.”
Looking Ahead
As Ethiopia seeks to position Addis Ababa as an investment gateway to East Africa, sustained infrastructure development, digital tools, and investor-centric policies will be key.
With continued support and reform, AAIC aims to ensure that Ethiopia remains a top destination for both local and foreign investors.
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