Except for the two years of conflict with Eritrea, investment has been rising since the fall of the military government and the introduction of a free-market economy.
Except for the two years of conflict with Eritrea, investment has been rising since the fall of the military government and the introduction of a free-market economy. However, the progress is slow. In 2000/01, investment accounted for 16% of the GDP. Foreign Direct Investment (FDI) has been increasing from 2% in 1995/96 to 59% in 1997/98. Mining, hydrocarbons, agro industry, and tourism are the most promising areas for foreign investment. Saudi Arabia has been the source of 60% of the FDI approved so far, with MIDROC Ethiopia, a private limited company, accounting for much of that. The European Union has been the second largest source of FDI, providing about 30%. The Ethiopian Diaspora have also provided substantial FDI.
