Although much attention is focussed on Chinese investment in Ethiopia, the Ethiopian Investment Authority (EIA) has placed China number three in terms of foreign investment coming into the country, behind both Saudi Arabia and India. Saudi investors have been pouring large amounts of money into Africa, securing vast tracts of land for the production of food products to be brought back to their home country. The bulk of India's investment are in agribusiness (sugar), but a US$640m credit line to Ethiopia by India's EXIM Bank (November 2008, Economic performance) has encouraged Indian investors to enter projects in power, electricity, water and railways.

Although China comes third in terms of value of investment, it has a total of 1,065 projects in Ethiopia, placing it well ahead of fourth-placed Sudan in terms of volume, with 701 projects. Chinese investment has been across a wide range of sectors including manufacturing, infrastructure, power, roads, textiles, construction and automotive. Turkish investment is estimated to have risen over fourfold in the last four years, mainly in the textiles sector. The EIA estimates that 1.73m jobs have been created by foreign investors in the past five years, while foreign direct investment (FDI) has been growing at around 25% per year. Ethiopia's growing attractiveness owes much to generous tax breaks and land lease agreements. The country's large population and low labour costs are also a major draw for labour-intensive industries and it offers sub Saharan Africa's second-largest domestic consumer market after Nigeria. However, its landlocked nature and poor infrastructure continue to be a drag on investment.