Ethiopian Investment Holdings (EIH), the strategic investment arm of the Ethiopian government, has achieved a significant milestone, securing its position as the largest sovereign wealth fund in Africa and ranking 34th globally, according to the latest data from the Sovereign Wealth Fund Institute (SWFI). With nearly $45 billion in assets, EIH surpasses the Libyan Investment Authority (LIA), which holds approximately $39.5 billion, marking a pivotal moment for Ethiopia’s economic landscape.
Established in 2021 under, EIH was created to revolutionize the management of state-owned enterprises (SOEs). The fund aims to foster active ownership, professionalize operations, and attract crucial investments to drive economic productivity and growth.
EIH’s portfolio, now encompassing 40 SOEs, has recently expanded with the addition of eight prominent entities, further diversifying its asset base. This expansion is seen as a strategic move to bolster key sectors of the Ethiopian economy.
Furthermore, there is growing anticipation that some of the companies under EIH’s management may soon be listed on the burgeoning Ethiopian Securities Exchange. This potential listing is expected to enhance transparency, attract further investment, and contribute to the development of Ethiopia’s capital markets.
The SWFI’s ranking, which places EIH above the long-established Libyan Investment Authority, highlights the rapid growth and strategic importance of EIH in the global financial arena. The LIA, founded in 2006, has a longer history and 72 periods of historical asset data tracked by SWFI. However, EIH’s rapid ascent demonstrates the effectiveness of Ethiopia’s investment strategy.
