The first and most significant example of European direct investment in Ethiopia was the construction of Ethiopia's first railway.
The agreement to create a company for the construction of the railroad was first signed in 1894 between Menilek and Alfred Ilg.
The primary European stakeholder was obviously France although British investors also owned shares and bonds at least until 1902 which is when the line reached Addis-Harar, later renamed Dire Dawa.

Mersha was a key figure in the negotiations, construction and security of the railway during the initial phases of the project (1897–1911).
When the Djibouti railroad reached the Ethiopian border town of Dewele (Dawale), in July 1900, he represented the emperor at the inaugural ceremony attended by a delegation of the French government led by Gabriel Louis Angoulvant, acting governor-general of the French Somaliland as well representatives of shareholders and other domestic and foreign diplomats, including Ato Yosef Zagalan, the Ethiopian consul in Djibouti and a dear friend of Mersha.
According to one source, emperor Menilek himself was to be present, but he changed his mind later in protest of the growing interference by the French government in the affairs of the Compagnie Imperiale d'Ethiopie to which he granted concession.
Things became worse and the construction was interrupted for several years following the completion of the Djibouti-Dire Dawa line.
When the work resumed in 1909, Mersha was once again called to serve.
The task given to him and other local officials was to oversee the extension of the meter-gauge line up to Awash.
The railway reached Addis Abeba only in 1917.
By then emperor Menilek had died and his daughter Zewditu was head of the empire.

English translation of Menilek's letter to Mersha: 
Dear Ato Mersha.
How have you been?
I, thank God, am well.
Since the French railway companies informed me that they would resume construction, I would like you to manage the work in consultation with Negadras Yigezu.
Written in the city of Debre Libanos on the 2nd day of Tahsas 1901.

(*The above letter has been included in the recent book titled 'Emperor Menilek's Domestic Letters' as letter #1898 (Paulos Gnogno collections); Aster Nega Publishers; 2010 p. 517).

The historian Richard Pankhurst called the first railway “the country’s greatest technological achievement of the period.”
It led to rapid expansion of domestic and foreign trade.
By cutting the amount of travel time to the coast in half, for example, the railroad increased the import and export of commodities drastically.
It accelerated the process of urbanization as it paved the way to the rise of new settlements and villages and transformation of towns such as Harar and Addis Abeba.
The movement of people from south to north and vice versa grew considerably.
In short, the railway made life better for hundreds of thousands, if not millions, of Ethiopians.
More importantly, it connected the country to the sea.
Robert P Skinner, the diplomat who led the first US mission, in 1903–04, noted the following about the importance of the railway to the economy
 
The custom-house figures show a movement of importations and exportations in 1902 amounting $1,659,800, but, having in mind the methods of appraisement and the possibility of entering goods in contraband, it may be conservatively stated that the total trade under present conditions amounts to $3,000,000 per annum.
Henceforth, this trade will grow rapidly, although the full power of the country will not be appreciated until the railroad is extended to the capital, 300 miles distant from its present terminus.

Spinner further observed: 
 
When the railroad connecting the Empire and the sea was projected, a route was naturally selected which should give the greatest advantages to commerce...A town was created at this point, to which was given the name Dire Douah, and it has already become an important business center....
The first and most significant example of European direct investment in Ethiopia was the construction of Ethiopia's first railway. The agreement to create a company for the construction of the railroad was first signed in 1894 between Menilek and Alfred Ilg. The primary European stakeholder was obviously France although British investors also owned shares and bonds at least until 1902 which is when the line reached Addis-Harar, later renamed Dire Dawa.
Mersha was a key figure in the negotiations, construction and security of the railway during the initial phases of the project (1897–1911). When the Djibouti railroad reached the Ethiopian border town of Dewele (Dawale), in July 1900, he represented the emperor at the inaugural ceremony attended by a delegation of the French government led by Gabriel Louis Angoulvant, acting governor-general of the French Somaliland as well representatives of shareholders and other domestic and foreign diplomats, including Ato Yosef Zagalan, the Ethiopian consul in Djibouti and a dear friend of Mersha. According to one source, emperor Menilek himself was to be present, but he changed his mind later in protest of the growing interference by the French government in the affairs of the Compagnie Imperiale d'Ethiopie to which he granted concession. Things became worse and the construction was interrupted for several years following the completion of the Djibouti-Dire Dawa line. When the work resumed in 1909, Mersha was once again called to serve. The task given to him and other local officials was to oversee the extension of the meter-gauge line up to Awash. The railway reached Addis Abeba only in 1917. By then emperor Menilek had died and his daughter Zewditu was head of the empire.
English translation of Menilek's letter to Mersha: 
Dear Ato Mersha. How have you been? I, thank God, am well. Since the French railway companies informed me that they would resume construction, I would like you to manage the work in consultation with Negadras Yigezu. Written in the city of Debre Libanos on the 2nd day of Tahsas 1901.
(*The above letter has been included in the recent book titled 'Emperor Menilek's Domestic Letters' as letter #1898 (Paulos Gnogno collections); Aster Nega Publishers; 2010 p. 517).
The historian Richard Pankhurst called the first railway “the country’s greatest technological achievement of the period.” It led to rapid expansion of domestic and foreign trade. By cutting the amount of travel time to the coast in half, for example, the railroad increased the import and export of commodities drastically. It accelerated the process of urbanization as it paved the way to the rise of new settlements and villages and transformation of towns such as Harar and Addis Abeba. The movement of people from south to north and vice versa grew considerably. In short, the railway made life better for hundreds of thousands, if not millions, of Ethiopians. More importantly, it connected the country to the sea. Robert P Skinner, the diplomat who led the first US mission, in 1903–04, noted the following about the importance of the railway to the economy
 
The custom-house figures show a movement of importations and exportations in 1902 amounting $1,659,800, but, having in mind the methods of appraisement and the possibility of entering goods in contraband, it may be conservatively stated that the total trade under present conditions amounts to $3,000,000 per annum. Henceforth, this trade will grow rapidly, although the full power of the country will not be appreciated until the railroad is extended to the capital, 300 miles distant from its present terminus.
Spinner further observed: 
 
When the railroad connecting the Empire and the sea was projected, a route was naturally selected which should give the greatest advantages to commerce...A town was created at this point, to which was given the name Dire Douah, and it has already become an important business center....
Mersha Nahusenay