Foreign Direct Investment in Ethiopia: Challenges, Opportunities and Policy Options for Effective Use to Stimulate Industrialization

books by Mulu Gebreeyesus, Birhanu Beshah & Girum Abebe

Publisher: PSRC and EDRI, Addis Ababa, Ethiopia
ISBN: 978-99944-74-37-0

Ethiopia is embarking on a mission to join the middle income country group by 2025. Massive expansion of investment both from domestic and abroad is expected to achieve these targets. In recognition of this, the Ethiopian government has renewed its interest to attract FDI the country has started to become the preferred destination for FDI in the sub-Saharan Africa. Like many other developing countries, Ethiopia’s focus has, however, been on attracting FDI while little attention has been given to maximizing the benefits from FDI. This book identifies FDI related challenges and opportunities in Ethiopia and then proposes policy options to enhance the flow of quality FDI and maximize the benefits from their involvement. It specifically explores specific and strategic manufacturing sectors for FDI, investigating new investment options or opportunities for FDI, identifying mechanisms for Knowledge and technology diffusion from FDI to domestic enterprises, assessing the possible options to create product value chain linkage between FDI and domestic enterprises, understanding the behavior and characteristics of investors in the sector, and investigating major factors that affect the growth and development of FDI.