The Ethiopian Investment Commission(EIC) plays a crucial role in regulating and facilitating investment in Ethiopia. As head of the EIC, the chairman has far-reaching influence over the country’s investment policies and business environment. By spearheading reforms, attracting FDI and supporting domestic investors, a competent chairman can significantly boost Ethiopia’s economy and development. The current chairman, Lelise Neme, has made tangible contributions since assuming office in 2018. However, more work remains to fully optimize Ethiopia’s investment climate.
Lelise Neme’s background and vision align with Ethiopia’s needs
Lelise Neme became the Ethiopian Investment Commission’s chairwoman in 2018. She obtained bachelor’s and master’s degrees in the United States and accumulated over 20 years of experience across aviation, telecoms and investment promotion. This diverse profile suits the multifaceted nature of her role. Upon taking office, Neme outlined plans to transform the EIC into a more effective enabler of private sector growth. She aimed to increase FDI inflows, particularly into underdeveloped regions and sectors like manufacturing. Her vision complements the government’s goals under its Homegrown Economic Reform Plan.
Neme has achieved reforms, but challenges persist
Under Neme’s leadership, the EIC has implemented noteworthy reforms to improve Ethiopia’s business climate. For instance, the commission shortened the timeline for obtaining investment licenses and construction permits. It also abolished minimum capital requirements for foreign investors. These changes led the World Bank’s 2020 Doing Business rankings to recognize Ethiopia as one of the world’s top reformers. However, substantial red tape and inefficiencies remain. Registering property, accessing credit and paying taxes are still cumbersome processes. Neme acknowledges that much work remains to catch up with regional competitors.
Attracting FDI is crucial for Ethiopia’s development
A key aspect of Neme’s role is attracting foreign direct investment into Ethiopia. FDI brings capital, technology transfers and job creation, all of which support industrialization and growth. After decades of isolation, Ethiopia has signaled openness to FDI under Prime Minister Abiy Ahmed. However, inflows remain below potential at just over $5 billion annually. Neighboring Kenya attracts four times more FDI. Neme aims to close this gap by promoting opportunities and incentives, particularly in manufacturing. She also facilitates investment missions and events to connect foreign investors with Ethiopian counterparts.
Supporting domestic private sector is equally important
While attracting FDI is important, Neme also emphasizes supporting Ethiopia’s domestic investors and enterprises. After all, no country has industrialized without a vibrant local private sector. Neme is overseeing programs that provide training, advisory services and easier access to finance for local companies. She also urges reforms that reduce entry barriers for entrepreneurs. Still, state-owned enterprises dominate key sectors of Ethiopia’s economy. To accelerate growth, the EIC must boost the capacity and competitiveness of local firms.
As Ethiopian Investment Commission chairwoman, Lelise Neme has spearheaded notable reforms and set strategic priorities to improve Ethiopia’s investment climate. However, challenges remain in easing red tape, attracting FDI and supporting local firms. Sustained efforts in these areas are crucial for leveraging investment as a catalyst for Ethiopia’s economic growth and transformation.