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Ethiopia and investment provisions in AfCFTA: issues and challenges

Research reports

Written by Yohannes Ayele, Alemayehu Geda, Guta Legesse, Martha Belete

Commitments to investment in the African Continental Free Trade Area (AfCFTA) can help to attract foreign direct investment (FDI), with various benefits for the Ethiopian economy. FDI can help catalyse domestic investment, lead to transfer of technology and managerial skills, and create jobs and reduce poverty. These benefits, however, come with challenges.

In this paper, we explore the opportunities and the challenges ahead for the Ethiopian economy under the African Continental Free Trade Area (AfCFTA) and its Protocol on Investment. We also advance possible actions for the Government of Ethiopia and others around AfCFTA and Investment Issues to overcome these challenges.

If you would like to find out more about how we support investment and trade in Africa, please visit our SITA programme page. You will find a wealth of research and resources on the negotiation and implementation of the African Continental Free Trade Area Agreement.