A report released by the United Nations Conference on Trade and Development (UNCTAD) shows that Foreign Direct Investment (or FDI) into Ethiopia has increased.

World Investment Reports (WIR) illustrate the latest trends in foreign direct investment and explore the internationalisation of research and development by transnational corporations, along with their development implications.

Speaking at the launch of the 2005 report on Monday 3rd October at the UN Conference Center in Addis Ababa, Director of the United Nations Economic Commission for Africa (UNECA) Augustin Fosu said Ethiopia was among the most promising African countries in terms of FDI, ranking in twelfth position out of all the African nations; first place was taken by South Africa.

The report shows that FDI inflows to Ethiopia increased from US $255 million in 2002, to $465 million in 2003, to $545 million in 2004. Furthermore, while the total FDI inflows around the world have actually decreased since 2002, and in particular flows into developed countries, the total FDI inflows into developing economies have increased, with Africa benefiting from a marked increase from $12,994 million in 2002 to $18,090 million in 2004.

This year’s report also discusses the recommendations of the Commission for Africa (CFA) which Ethiopian Prime Minister Meles Zenawi, as a Commissioner, helped draw up. According to the 2005 WIR, if new Official Development Assistance inflows were allocated according to the priorities outlined in the CFA report, the investment climate would be improved further still, by providing opportunities for foreign firms to invest productively.

The full World Investment Report is available on the www.unctad.org/ website.

ENDS