Foreign Direct Investment (“FDI”) in Ethiopian agriculture has increased significantly in the last few years. This is attributable to the increasing interest of transnational companies in land investments, as well as the investor-friendly environment developed by the Ethiopian government through multiple reviews of national policy and legal frameworks. The flow of investment and the acquisition of land by foreign investors pose both opportunities and threats for the country; hence, it is important for the Ethiopian government to devise and implement policy frameworks that maximize the opportunities and minimize the risks.