An investment magazine has put Ethiopia first among African countries in cost effectiveness for foreign direct investment, the Ethiopian Investment Commission said on Monday.

The magazine, "Foreign Direct Investment," published by the British-based Financial Times Business Ltd, said the impoverished country ranks second for its favorability for foreign direct investment among East and Central African countries, according to a press release from the commission, the country's watchdog for foreign investment.

In its 2005-2006 evaluation, the magazine said Ethiopia is favorable for foreign direct investment with its "cheaper labor" and "suitable infrastructural development," among others.

Meanwhile, the commission said Ethiopia has licensed foreign investment projects with an aggregate capital of 1.1 billion US dollars since last year. The liberalizing direction taken by the Ethiopia government over the past 12 years, beginning with the economic reform program launched in 1992, has resulted in improvements in the areas of trade policy, foreign investment and government intervention, it said.

Ethiopia is among the poorest countries in the world, and suffers from chronic hunger. Although it has poor infrastructure, the government has been making efforts to improve roads and airports.

Source: Xinhua