Ethiopia garnered six foreign investment initiatives in 2022, with Safaricom Ethiopia being a notable contributor Photo: Reuters)Addis Abeba – Amid global economic shifts and domestic instability, Ethiopia is contending with a marked decrease in foreign direct investment (FDI), as detailed in a new report by Ernst & Young. Tanzania saw significant growth in foreign investment, reaching pre-pandemic levels with 21 projects worth $1.3 billion, creating 4,566 jobs. The report from Ernst & Young points to balance of payments issues and the risk of sovereign default amid rising inflation as challenges for Ethiopia. However, the report underscores that such economic challenges could overshadow the investment climate, deterring foreign investment and complicating economic management. In addition to inflation, Ethiopia faces pressures due to currency depreciation.

Source: Ethiopian News December 26, 2023 11:15 UTC