Individual foreign investors looking to fund infrastructure and business projects in Ethiopia will have to cough at least $200,000 according to a draft bill. On the other hand, the bill requires a minimum investment of $150,000 for those looking to form joint investments with domestic operators. The requirements are part of the country’s privatization effort.
Earlier, Ethiopia decided to open up its telco sector for foreign investors. Abiy’s government will sell a minority stake in Ethio Telecom and issue two new licenses to boost competition. The country is also planning to decentralize mobile money, allowing private players like insurance companies and financial institutions to offer credit and saving products. All this is in effort to transform the country into a middle income economy.
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Additionally, Bloomberg states that the country will sell 6 sugar plants at the end of March 2020. However, the country chose to keep its banking sector for local investors alone.
in 2019, the country received significant funding from foreign bodies to fund its economic reforms. At the beginning of December, Ethiopia received $388 million in grants from Germany for reforms. Moreover, the IMF approved a $3 billion loan for the said reforms.
SEE: IMF Approves $3 Billion Loan for Ethiopia
