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Foreign Direct Investment To Ethiopia Grew By 79% To $4.3 Billion In 2021.

Updated: Feb 8, 2023

Foreign direct investment (FDI) flows to Ethiopia grew by 79% to $4.3 billion in 2021, making it one of the top FDI country destinations in Africa.

The growth was mainly attributed to the tripling of Chinese investments in 2021, as Ethiopia is a central hub for China’s Belt and Road Initiative. Also, four (out of five) international project finance announcements in Ethiopia were in renewables. For example, the Masdar solar project involves construction of a 500 MW solar power plant for $135 million, with Abu Dhabi Future Energy as a sponsor.

Flows to East Africa reached $8.2 billion (+35%) in 2021. Across Africa, FDI reached $83 billion – a record level – from $39 billion in 2020. The total for the continent was inflated by a single intrafirm financial transaction in South Africa in the second half of 2021.

Infographic: UNCTAD's World Investment Report 2022

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