Capital Under Fire: How conflict, corrosive capital are reshaping Ethiopia’s foreign investment landscape

Ethiopia, which saw one of the fastest growth rates in foreign direct investment (FDI) in Sub-Saharan Africa from 2010 to 2019, is now facing a shift in its investment landscape due to ongoing conflicts and what's termed as "corrosive capital." This term refers to the negative impact of unstable political conditions on foreign investors' confidence. As a result, companies are re-evaluating their commitment to the country, which could slow down much-needed economic growth and development projects. The implications are significant, potentially hindering Ethiopia's progress in becoming a regional industrial powerhouse.