H.E. Mr. Fesseha Shawel Gebre, Ambassador of Ethiopia to India shares, an insight on the bilateral relationship between India and Ethiopia.
India and Ethiopia share a robust economic partnership supported by strong diplomatic ties and significant investments. India stands as Ethiopia’s second-largest foreign investor, with over 650 Indian companies operating in key sectors such as agriculture, agro-processing, textiles, leather, pharmaceuticals, and mining. These investments play a pivotal role in job creation, technology transfer, and sustainable development, while bilateral trade has flourished, surpassing USD 3 billion. Ethiopia itself has emerged as a growing economic powerhouse, currently ranking as Africa’s fifth-largest economy and projected to become one of the world’s largest by 2075, with an estimated GDP of $6.2 trillion. Sustained GDP growth, averaging 8-10% over two decades, has been fuelled by large-scale infrastructure projects, agricultural advancements, and trade expansion. Ethiopia has invested heavily in infrastructure, with landmark projects like the Grand Ethiopian Renaissance Dam (GERD) poised to become Africa’s largest hydropower producer. Investments in transportation, industrial parks, and Ethiopian Airlines have strengthened connectivity, trade, and tourism.
Agriculture remains the backbone of Ethiopia’s economy, employing over 70% of its population and benefiting from improved irrigation, advanced farming techniques, and an emphasis on high-value crops like coffee. Under Prime Minister Abiy Ahmed, economic liberalization has encouraged foreign investments by privatizing state-owned enterprises and opening sectors like telecommunications and banking. Ethiopia’s appeal as an investment destination is bolstered by its abundant natural resources, strategic location, and Africa’s second-largest consumer market. A youthful labour force, low production costs, and favourable policies further enhance its position as a global trade hub.
Ethiopian Airlines plays a vital role in facilitating exports, providing global connectivity to over 134 destinations. India’s expanding economic presence in Ethiopia reinforces bilateral trade and development, fostering opportunities in technology, education, and infrastructure. As both nations deepen their collaboration, the prospects for sustainable growth and mutual prosperity remain promising.