The basic metal and engineering industry is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The Ethiopian basic metal and engineering industries lack the crucial component of producing basic metals from iron ore or other process route and are still in the infancy stage over the years. However, it’s essential for the sector to transfer technology from foreign firms which play a major role in the current endeavor in Ethiopia to bring rapid and sustainable development of the sector. The contribution of FDI to the economy of one country will be effective if and only if there is a local capability to absorb the technology owned by the foreign company to other similar industries which potentially dictates a large scale participation of local personnel’s in the FDI companies at a critical level. Though the number of foreign investors currently destined to our country might not be small, but there is less technological flow from foreign investors. This book concentrates on the role of FDI on technology transfer to basic metal and engineering industries to validate the methodology and to demonstrate the result of the study.