Ethiopia Offers Numerous Opportunities for FDI: Finnish Diplomat

Addis Ababa November 1/2024 (ENA) With a young and entrepreneurial population, coupled with a growing economy, Ethiopia offers numerous opportunities for foreign direct investment (FDI), Head of Cooperation at the Finnish Embassy in Addis Ababa, Tomi Sarkioja underscored. 

Prime Minister Abiy Ahmed has commended the achievements of the macroeconomic reform particularly, in export trade and foreign direct investment (FDI) inflow during the past three months during is address to the house of peoples Representatives on Thursday.   

He said the country has received 3.4 billion USD in foreign investment during the past three months alone which is a substantial increase compared to the same period last year. This surge in investment can be attributed to the government's macroeconomic reforms, which have created a favorable environment for businesses. .

Tomi Sarkioja told the Ethiopian News Agency that Ethiopia's vast potential has been attracting investors, especially in the digital sector where Finland excels.

According to Sarkioja,  with a young and entrepreneurial population, coupled with a growing economy, Ethiopia offers numerous opportunities for foreign direct investment.

“Ethiopia is a large country that has vast opportunities, young population with entrepreneurial spirit and so ample opportunities."

The diplomat stated that Finland wants to explore, connect people and bring investors here in Ethiopia to see the opportunities. 

"One of our main sectors is the digital sector. Finland is one of the most advanced digital economies in Europe. So for the FDI and private sector cooperation, we can really see future investment and business collaboration as there are opportunities and interest from Ethiopia’s side.” 

The partnership between Finland and Ethiopia has flourished over the years, resulting in significant advancements across various sectors, including financial and technical cooperation aimed at improving rural water, sanitation, and land management.

One of the most notable achievements is the Responsible and Innovative Land Administration (REILA) project, which has revolutionized land administration system in Ethiopia.

According to him, the project has enabled the nation to register over 30 million land parcels; which in turn, has provided critical land use certificates that empower farmers to invest confidently in their futures, ultimately strengthening Ethiopia's agricultural sector. 

As the two countries look ahead, bilateral discussions are ongoing to explore new avenues for collaboration, particularly in the digital registration of communal lands and forests which are crucial for livelihoods and climate resilience, he emphasized.

Moreover, he highlighted that the upcoming RILA III project is set to serve as an innovation platform, facilitating the exploration of new technologies and models to further benefit Ethiopian communities.

“For Finland, it has over 200 years of experience in developing a modern land administration system. In Ethiopia, we have been working for 13 years. So, there are plenty of rooms that we can collaborate and look for innovative solutions… We will look at emerging new opportunities that can really make a difference for Ethiopia’s future.”

Sarkioja stressed that the ongoing cooperation between Finland and Ethiopia reflects a shared commitment to mutual growth and development that both countries are well-positioned to tackle challenges and seize opportunities that will shape a prosperous future.

Together, the collaborative efforts of Ethiopia and Finland would further drive sustainable development, enhance livelihoods, foster innovation and pave the way for a brighter future for both nations, he underscored.