East Africa: Ethiopia Takes Bold Steps to Attract Foreign Investment

– GAC launches electric vehicle brand in Ethiopia

– Ethiopia is intensifying efforts to attract Foreign Direct Investment (FDI) through major policy reforms, including the amendment of investment laws and the liberalization of key sectors such as banking and trade, the Ethiopian Investment Commission (EIC) announced.

The announcement came yesterday during the official launch of GAC Group’s electric vehicle (EV) brand in Ethiopia–a landmark initiative carried out in partnership with the Huajian Group, a leading Chinese investor operating in the country.

Speaking at the launch event, EIC Commissioner Zeleke Temesgen (PhD) noted that the government has taken bold and deliberate steps over the past six years to enhance Ethiopia’s investment climate. These include opening previously restricted sectors to foreign investors and offering incentives such as tax exemptions.

“These reforms are a clear signal of Ethiopia’s commitment to creating an enabling environment for international investors,” Commissioner Zeleke said.

The Huajian Group Chairperson Zhang Huarong said that introducing GAC’s electric vehicles into the Ethiopian market aligns with the country’s green development goals and offers a gateway to the broader East African and African markets.

“The Ethiopian market holds great strategic value,” he said. “This launch not only supports Ethiopia’s green ambitions but also contributes to job creation, technology transfer, and enhanced China-Africa industrial cooperation.”

In 2024, Guangzhou Automobile Corporation (GAC)–one of China’s largest EV manufacturers–signed a Memorandum of Understanding (MoU) with the Huajian Group to facilitate their market entry into Ethiopia. The launch marks the first tangible outcome of that agreement.

The collaboration is expected to generate substantial employment opportunities, promote industrial growth, and deepen economic ties between Ethiopia and China.

As the country pursues its investment-led development strategy, initiatives like the GAC-Huajian partnership demonstrate the growing appeal of Ethiopia as a manufacturing and innovation hub on the continent.