June 20, 2024

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Chinese investment in Ethiopia

Chinese Investment in Ethiopia Surpasses $5 Billion

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Chinese investment in Ethiopia surpassed five billion USD mark during last year, a senior diplomat said today.

A Chinese diplomat in Addis Ababa Yang Yihang (PhD) stated toady that Chinese government and private businesses are operating almost 2,000 projects in Ethiopia and creating 65,000 jobs. The amount of the investment has surpassed five billion USD in 2023. Also, the total number of Chinese enterprises operating in Ethiopia reached over 500 . Renewable energy, agriculture and the manufacturing industry are major sectors that the two countries are working together.

The business portfolio is expected to be higher as the FDI inflow from China to Ethiopia is increasing. In 2023, Chinese enterprises produced 223 new products in Ethiopia. The number of Ethiopian products entering into the Chinese market is growing at a rate of 46 percent annually.

Ethiopia is an important player in the China-Africa cooperation and the second China Africa forum was held in Addis Ababa showcasing its role in bridging China with the rest of the continent. China-Africa cooperation projects are also being supported by Ethiopia.

However Ethiopia is importing much more than exporting to China. Between March 2023 and March 2024 the exports of China to Ethiopia were $235M, while imports from Ethiopia were $68.7M. The statistics show that Ethiopia is importing four time more than exporting to China.

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