More than 14 foreign chambers of commerce, representing European, American, Chinese, and Indian interests, are uniting to tackle persistent business obstacles in Ethiopia. EuroCham has opened a new headquarters offering free workspaces to help new investors navigate local rules. Foreign direct investment rebounded to $4 billion in 2024/25, though bureaucratic issues continue to plague many investors.
A new initiative in business diplomacy is emerging quietly in Ethiopia, blending frustration with hope among international players. Over 14 foreign chambers of commerce, encompassing European, American, Chinese, and Indian groups, are banding together to confront longstanding business challenges in the country.
EuroCham's recently established headquarters provides complimentary workspaces for arriving investors, aiding their adjustment to Ethiopia's regulatory landscape. Foreign direct investment flows have surged back to $4 billion in the 2024/25 fiscal year, but bureaucratic hurdles remain a significant barrier for numerous investors.
The Federal Investment Commission has committed to introducing fresh competency standards and compiling a “Deal Book” to facilitate support for global investors. Notably, out of 55 projects applying for expansion, only eight have become operational in the past six years, underscoring persistent problems in supervision and incentive mechanisms. This collaboration highlights a pivotal moment for testing Ethiopia's reform commitments amid ongoing economic pressures.