Foreign direct investment in the agricultural sector in Ethiopia

Oct 2009

This paper will first give an overview on the development of FDI inflows into Africa in the recent years. The overview will show that FDI inflows have increased differently in the various parts of Africa (section 2). Ethiopia is thereby one country that has not received high amounts of FDI inflows over time but where the interest of foreign countries has increased in recent years when regarding the national investment database as well as the latest newspaper articles. To interpret the development of the FDI inflows and hence resultant impacts on the Ethiopian economy, a short overview of the current economic situation of Ethiopia is given in section 3. Against this background information the database generated by the Ethiopian Investment Agency is analysed to draw a picture of the development of FDI inflows over the past years. As the political framework can have a significant influence on how attractive a country can be for foreign investors, the main trade and investment agreements of the main investor countries are summarised in section 5. Section 6 presents the results compiled by the Ethiopian counterpart Dr. Getnet. Conclusions are drawn in section 7 containing a short summary of the main results.

By: L. Weissleder (University of Bonn)

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