Business & Technology

Ethiopia’s foreign direct investment increases ahead of bond restructuring

Ethiopia received $4 billion in foreign direct investment during its fiscal year to July 2025, marking a 2.2% increase from the previous year, its Investment Commission said on Tuesday.

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Newstimehub

20 Aug, 2025

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Ethiopia received $4 billion in foreign direct investment during its fiscal year to July 2025, its Investment Commission said on Tuesday, marking a 2.2% increase from the previous year.

The data is being closely watched by markets since it has a bearing on the way Ethiopia’s sole $1 billion international bond will be restructured after a default.

Far-reaching economic reforms, including the floatation of the birr currency, have boosted foreign investor confidence, the Ethiopia Investment Commission said in a statement.

The Commission issued 525 new investment permits during the period under review, it said, and 19 for expansion of existing projects by overseas investors.

Investors target key sectors

The investments target key sectors like manufacturing, agriculture and information and communication technology, the Commission said.