Ethiopia’s Economic Reforms Boost Investment Climate, Says UNIDO Official

Addis ababa: Ethiopia's ongoing economic reforms are playing a decisive role in creating a conducive and predictable investment climate, according to Stefan Kratzsch, United Nations Industrial Development Organization's Sustainable Investment and Responsible Business Unit Head.According to Ethiopian News Agency, Kratzsch stated in an exclusive interview that the reforms are critical to attracting both foreign direct investment and domestic capital, ensuring that these investments contribute to national development priorities such as job creation, value chain development, and export growth.Kratzsch noted that Ethiopia's large population offers a significant market opportunity, enabling investors to scale operations domestically and expand into regional and continental markets through frameworks like the African Continental Free Trade Area.He emphasized the necessity of balancing foreign direct investment with domestic industrial development, highlighting that partnerships such as joint ventures and publi c-private partnerships are essential to ensure mutual benefits.Kratzsch also stressed the importance of prioritizing investments that uphold strong governance standards and promote inclusivity, particularly by enhancing the participation of youth and women in both employment and decision-making roles.Commending the Ethiopian government's transparency and active engagement with investors, Kratzsch highlighted that continued public-private dialogue will be vital to sustaining investor confidence and further improving the business environment.He elaborated that Ethiopia is well-positioned to play a pivotal role in Africa's industrialization and could serve as a model for other countries pursuing sustainable and inclusive economic growth.UNIDO has been supporting Ethiopia's industrialization agenda through technical assistance, capacity building, and policy advisory services.