East Africa, the fastest-growing region in Africa, received $7.6 billion in FDI in

2017, a 3 per cent decline from 2016. Ethiopia absorbed nearly half of this amount, with

$3.6 billion (down 10 per cent), and is now the second largest recipient of FDI in Africa after

Egypt, despite its smaller economy (the eighth largest in Africa). Chinese and Turkish firms

announced investments in light manufacturing and automotive after Ethiopia lifted the state

of emergency in the second half of 2017. United States fashion supplier PVH (Calvin Klein

and Tommy Hilfiger); Dubai-based Velocity Apparelz Companies (Levi’s, Zara and Under

Armour); and China’s Jiangsu Sunshine Group (Giorgio Armani and Hugo Boss) all set

up their own factories in Ethiopia in 2017. Several of these firms are located in Ethiopia’s

flagship, Chinese-built, Hawassa Industrial Park.

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