Assessment of foreign direct investment inflows into Ethiopia in light of peace and security challenges from 2018 to 2022

Figures & data

Table 1. FDI trend from 2010 to 2020.

Ethiopia Foreign Direct Investment – 2010–2020
Year	Inflows, US $	% of GDP
2021	$4.26B	3.83%
2020	$2.40B	2.23%
2019	$2.55B	2.66%
2018	$3.36B	3.99%
2017	$4.02B	4.91%
2016	$4.14B	5.58%
2015	$2.63B	4.07%
2014	$1.86B	3.34%
2013	$1.34B	2.82%
2012	$0.28B	0.64%
2011	$0.63B	1.97%
2010	$0.29B	0.96%

Data Source: World Bank.

Figure 1. FDI stock and percentage of gross fixed capital formation.

Source: UNCTAD cited JICA (2022).

Figure 2. Projects created by operational projects, broken down by status and employment.

Source: Ethiopian Investment Commission (1992–2020).

Table 2. FDI projects by sector and status (1992–2021).

Sector	Total number of licensed	Operational projects
		projects		capital		Permanent Employment
		number	Share%	Million Birr	Share%	number	Share%
Agriculture	636	333	12.0	12,752.2	8.9	53,819	33.0
Manufacturing	2,932	1,676	51.5	105.219.2	73.3	190.448	37.0
Mining	22	14	0.2	451.4	0.3	591	0.1
Electricity	22	1	0.1	1.0	0.0	10	0.0
Education	113	63	1.4	393.1	0.3	2.121	0.6
Health	111	60	1.1	795.0	0.6	2.046	0.1
Hotel and restaurants	241	149	3.9	1,966.3	1.4	5,475	0.8
Tour operation, transport, and communication	130	76	2.0	288.0	0.2	1,005	0.2
Real estate, machinery &equipment rental construction	1480	881	26.0	19,153.0	13.0	117,105	26.0
Others	116	70	1.8	2597.9	1.8	1.755	1.8
Grand Total	5,783	3,323	100.0	143617.5	100.0	374,375	100.0

Table 3. FDI flow in Ethiopia during the onset of conflict.

Foreign Direct Investment	2019	2020	2021
FDI Flow (million USD)	2,549	2,381	4,259
FDI Stock (million USD)	24,549	27,337	31,596
Number of Greenfield Investment	32	11	7
Value of Greenfield Investment (million USD)	1,908	503	132

Source: UNCTAD, Latest available data.

Table 4. World Bank doing business 2021.

Indicator set	Ethiopia out of 190	Impact on PPP promotion due to low ratings
Starting Business	168	negative	Time and cost may be required to establish SPC for PPP projects
Dealing with permits	142	Negative	It could cause delays in project implementation and an increase of costs
Getting electricity	137	Positive	The rowing need for PPP projects in the electricity sector can be expected
Registering property	142	Negative	It could cause adverse effects in the case of projects requiring property registration
Getting credit	176	Negative	There is a risk of making it difficult to get funding
Protecting minority investors	189	Negative	In particular, foreign investors often become minority shareholders, which increase risks
Paying taxes	132	Negative	It could cause an increase costs
Trading across borders	156	Negative	Time and cost may be required to procure equipment from outside of the country
Enforcing contract for	67	negative	Business risks will increase if the certainty of contract is not executed
Resolving insolvency	149	Negative	There is a potential trouble in the event of a project failure

JICA. (2022). Data collection survey on infrastructure sector public-private partnership in Ethiopia final report.

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Availability of data and materials

Data and material would be made available upon request.