Abstract

This study examines the contribution of private investment to Ethiopia’s economic growth since 2018. Data from 2018-2024 show that the manufacturing sector dominates private investment, accounting for over 70% of projects and 74% of capital, while agriculture, though contributing less capital, remains vital in employment creation. The analysis also highlights sectoral contributions, policy reforms, and challenges faced by investors, such as regulatory hurdles, economic instability, and limited access to finance. Despite fluctuations caused by political instability and macroeconomic shocks, private investment has played a significant role in GDP growth, employment generation, and export performance. The study emphasizes the importance of ongoing policy reforms and targeted interventions to strengthen private sector participation in sustainable development.

Keywords: Private investment, Ethiopia, Economic growth, Sectoral contributions