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Chinese firms committed to long term investments in Ethiopia: official

Xinhua | Updated: 2019-11-27 16:34
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ADDIS ABABA - Chinese firms invest in various economic sectors in Ethiopia and are committed to long term investments, an official said on Tuesday.

Speaking exclusively to Xinhua, Mekonen Hailu, Public Relations Director at Ethiopia Investment Commission (EIC), said Ethiopia has attracted $700 million in Foreign Direct Investment (FDI) in the first three months of the Ethiopian Fiscal Year 2019/2020, which started on July 8, with most of the FDI inflow to the east African country coming from Chinese firms.

"Chinese firms in Ethiopia are predominantly investing in the manufacturing sector followed by the service sector and the agricultural sector."

"We've noticed Chinese firms are committed to long term investments in Ethiopia, unaffected by occasional instability in the east African country. They also invest in sectors being keenly promoted by the Ethiopian government," Hailu told Xinhua.

Hailu said the large number of Chinese investments in Ethiopia's manufacturing sector has helped boost the Ethiopia's export performance and narrowing the east African country's external trade deficit.

He further said Chinese investments in Ethiopia's manufacturing sector has also helped the east African country make progress in its import substitution scheme, thereby saving much needed foreign currency that would have otherwise been spent on import items.

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