As part of its massive investment reforms, Ethiopia has opened certain segments of the economy to foreign investors in efforts to boost economic development and sustainability.
Ethiopia adopted a new investment proclamation and regulation in 2020 to increase inward investment and address some of the administrative challenges facing investors on the ground.
All sectors are open for foreign investment except for: 32 sectors exclusively reserved for domestic investors, 5 sectors reserved for joint investment with the government and 7 sectors for a joint venture with domestic investors (subject to a 49% cap on the share of foreign ownership).
Also, the Investment Proclamation made a dynamic shift in the term "domestic investor" by abolishing the distinction between Ethiopian nationals and foreign nationals of Ethiopian origin.
Source: Investment Proclamation & Regulation