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

Foreign Direct Investment in Ethiopia: Challenges, Opportunities and Policy Options for Effective Use to Stimulate Industrialization
File Size:
2.06 MB
Author:
Mulu G/eyesus (PhD), Birhanu Beshah (PhD), Girum Abebe (PhD)
Date:
10 October 2019
Downloads:
1099 x

Preface

Ethiopia is embarking on a mission to join the middle income country group by 2025. As specified in the Second Growth and Transformation Plan (GTP II), Ethiopia is committed to tuning its growth direction from agriculture-led to industry-led economy. It has set a target for 2025 to increase the share of the industry sector to GDP from the current 13% to 27% and the manufacturing sector from current 4% to 17%. Massive expansion of investment in manufacturing both from domestic and abroad is expected to achieve these targets. Hence, huge investment should be mobilized not only from the domestic investment but also from foreign investment. Similar to many developing countries, Ethiopia faces capital shortages, deficiency of knowledge/technology, industry management skill, market access and others which are needed to transform and make the industry competitive.  Oreign Direct Investment (FDI) can help to bridge these gaps and generate multiple benefits.

 

 
 
 
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