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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), which has 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.

However, there are challenges. One, synchronising national investment laws. Two, the proper implementation of laws. Three, the lack of a stable political and macroeconomic environment. Four, the costs of doing business in Ethiopia. As such, this report suggests possible actions for the Government of Ethiopia and others around AfCFTA and Investment Issues to overcome these challenges.