Ethiopia’s FDI inflows rose from $10M in the 1990s to $3.98B in 2024, with its sharpest growth phase recorded from 2014–2016

Key Takeaways

  • Ethiopia recorded a total of $46.43 billion in foreign direct investment between 1990 and 2024.
  • Its annual FDI inflows surged from just $10 million in 1990 to $3.98 billion in 2024, reflecting massive investor interest over time.
  • The country experienced three major FDI booms in 1997–2004, 2011–2014, and 2015–2016, driven by policy reforms and industrial expansion.
  • After a pandemic-era dip in 2020, Ethiopia rebounded strongly in 2021 with $4.26 billion in inflows, maintaining high investment momentum through 2024

Ethiopia’s FDI inflows were minimal in the early 1990s, staying at or below $0.02 billion annually until 1996. A notable increase occurred in 1997, when inflows jumped to $0.29 billion, followed by $0.26 billion in 1998. After a brief decline in 1999 and 2000, inflows rose again, reaching $0.47 billion by 2003 and $0.55 billion in 2004.

There was a dip in 2005 to $0.27 billion, but flows picked up from 2006 onwards, crossing the $1 billion mark for the first time in 2010. From there, FDI inflows continued to grow steadily: $1.13 billion in 2011, $1.86 billion by 2014, and a sharp rise to $2.63 billion in 2015 and $4.14 billion in 2016.

After peaking in 2016, inflows declined slightly to $4.02 billion in 2017, then fell to $2.38 billion by 2020. A strong rebound followed in 2021, reaching $4.26 billion, before easing down to $3.67 billion in 2022, $3.27 billion in 2023, and then climbing back up to $3.98 billion in 2024.

Source:

UNCTAD

Period:

1990 - 2024
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Morocco hit its $3.5B FDI peak twice, in 2014 and 2018
  • Morocco recorded a total of $54.58 billion in FDI over the past 34 years.
  • Morocco's FDI inflows peaked twice, in 2014 and 2018, both $3.5 billion.
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  • From 2006 onward, Morocco's FDI inflows remained mostly above $1 billion, with fluctuations.
  • The most recent year, 2024, showed a modest recovery after a significant dip in 2023.
South Africa witnessed a record FDI inflow spike in 2021 with $40.22b, followed by a sharp decline in 2022
  • In 2021, there was a record-breaking spike to $40.22 billion, far exceeding all previous years.
  • This surge was temporary, as FDI dropped to $9.28B in 2022 and fell further to $2.47B in 2024.
  • Other notable peaks occurred in 2008 ($9.21B) and 2013 ($8.30B).
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  • South Africa’s 2021 FDI spike came from a share swap between Naspers and its Dutch unit, Prosus.
DR Congo’s FDI inflows rose from near-zero in the 1990s to $3.11B in 2024, with its highest growth phase occurring between 2007 and 2012
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Algeria’s FDI peaked at $2.75B in 2009, plunged to a -$580M outflow in 2015, then jumped 476% from $250M in 2022 to $1.44B in 2024.
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  • The year 2015 saw a rare negative inflow of -$580 million, marking Algeria’s only net FDI loss in the last three decades.
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Egypt rebounded from a $480 million FDI loss in 2011 to $46.6 billion in 2024, an over 9,000% surge, marking its highest inflow in 30+ years
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95% of Kenya’s $27.5 billion in FDI came after 2007, with inflows peaking at $2.23 billion in 2011
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  • Between 2007 and 2024, Kenya received over 92% of its total FDI, a sharp shift in its investment profile.
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