In line with the market-oriented economic policy of 1992, the investment regime has also liberalized since then. The Ethiopian Investment Agency (EIA), which is an autonomous government body, serves as a one-stop-shop for issuing investment licenses and investment facilitations. The New Market Oriented Economic Policy embraces wide reforms which include foreign private investments. Consequently, the private sector is encouraged to invest in most areas of the economy. Areas that were exclusively restricted to the government such as defense, industries, hydropower generation, telecommunications services are now open for private as well as foreign investors.
With an improved investment climate, Ethiopia has steadily continued to attract and expand domestic and foreign investment. In all, a total of 25,835 investment projects were licensed during the 1992/93-2006/07 period. Several factors work in Ethiopia's favor as an emerging destination for investment. These include the existence of a one-stop service for new investment approvals, a large domestic market of over 84 million people, a liberalized economy, a strong growth record in recent years, fiscal stability, democratic government, high employer satisfaction with labor and the prevalence of peace and stability. A very low crime rate and one of the least corrupt bureaucracies are also investor friendly attributes. On-going civil service, private and public sector reforms, complemented by infrastructure upgrades have created one of the world's most progressive business environments. Furthermore, the government has developed a range of incentives for investors engaged in new enterprises and expansion across range of sectors. For further information, visit:www.investethiopia.gov.et