Türkiye’s Trade and Foreign Direct Investment in Ethiopia: An Insight into Challenges from 2012-2023

This study delves into the examination of Türkiye's trade and foreign direct investment activities in Ethiopia spanning from 2012 to 2023, shedding light on the hurdles faced during this time frame. The economic ties between Türkiye and Ethiopia have expanded, with trade volumes and foreign direct investment (FDI) inflows increasing over time. Nevertheless, several obstacles have arisen that impact the course of their relationship. This study sought to accomplish its objectives by gathering data through key informant interviews, observations, and document reviews. The key findings of this research reveal that challenges such as exchange rate fluctuations, human capital shortages, corruption, bureaucratic inefficiencies, high tariffs, infrastructure deficiencies, political unrest, non-payment by companies of their debts, customs procedures, and Türkiye's internal conditions impede the smooth flow of trade and foreign direct investment between the two countries. The study emphasizes the importance of joint efforts between the Turkish and Ethiopian governments, as well as private sector entities and regional collaborators, to address these pressing issues.