Ethiopia attracted $4 billion in foreign direct investment in the fiscal year ending July 2025, marking a 2.2% rise compared to the previous year, according to the Ethiopia Investment Commission.
The figure is drawing close attention as the nation moves forward with plans to restructure its only $1 billion Eurobond (XS1151974877).
The Commission highlighted that IMF supported reforms, such as steps toward a floating level, have improved investor confidence. Over the period, authorities allowed 525 new investment licenses and approved 19 expansion projects from existing foreign investors, with a sole aim on manufacturing, agriculture, and ICT.
In debt talks, Addis Ababa has proposed an 18% cut to the bond’s principal, citing insolvency pressures. However, a group of bondholders disagree with this, insisting Ethiopia’s challenge is liquidity based and pointing to steady export revenues as evidence to this point.
