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Private investment from China in 2017 outpaces 2016 figures

Xinhua | Updated: 2017-09-21 17:30
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ADDIS ABABA - Private investment from China to Ethiopia in 2017, up to September 5, has reached more than $680 million, outpacing full 2016 figures.

Speaking to Xinhua on Tuesday, Mekonen Hailu, Ethiopia Investment Communications (EIC) Director said Ethiopia attracted close to $560 million in registered investment capital from private Chinese firms in 2016.

He further said private Chinese firms' investment is the single largest foreign direct investment (FDI) source to Ethiopia in 2017 with investment from Indian and Dutch firms following in second and third positions.

Private Investment from China also was the single largest FDI source for Ethiopia in 2016, topping private investment from the likes of Turkey and India.

The majority of the investment from Chinese firms is in the manufacturing sector, taking 67.1 percent of registered capital, with the rest being from various sectors including real estate, construction, mining and health.

"Ethiopian government is providing tremendous incentive to private investors including availability of cheap electricity and water utilities and affordable, abundant, trainable, young labor force," said Hailu.

China is already Ethiopia's largest trading partner, with trade volume between the two nations reaching $6.15 billion in 2015, while exhibiting an average growth of 22.2 percent in the last several years.

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