Ethiopia has been strengthening its diplomatic and economic relations with the so-called “Asian Tiger” economies, especially Malaysia, Singapore, South Korea, and Taiwan. These relationships are strategically important as Ethiopia seeks to accelerate its industrialization, diversify its economy, and expand its infrastructure base. Prime Minister Abiy Ahmed’s visits to these countries are crucial milestones in Ethiopia’s journey toward leveraging the experiences of these high-growth economies.
The term “Asian Tigers” refers to the four high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan. During the latter half of the 20th century, these countries achieved remarkable economic transformations, moving from low-income to high-income status through industrialization, export-led growth, investment in human capital, and a focus on high-tech industries.
Malaysia, often considered an emerging economy similar to the Tigers, has also achieved rapid development by focusing on sectors such as manufacturing, technology, and services. By building strong state and private partnerships, Malaysia, like the Tigers, has transformed into a diversified and middle-income economy. Each of these countries has important lessons for Ethiopia as it works to achieve similar developmental milestones.
Ethiopia has embarked on Homegrown Economic Reform Agenda. The goals include moving the economy away from its dependence on agriculture, fostering industrialization, and attracting foreign investment. Asian Tigers have already trodden this path and are valuable partners for Ethiopia in this regard.
Ethiopia is looking to learn from countries like Malaysia and Singapore, which have made significant investments in technology and infrastructure. Partnerships with companies from these countries bring opportunities for technology transfer, expertise, and efficient processes.
Malaysia, Singapore, and South Korea are all sources of FDI, which Ethiopia seeks to tap into. Singapore’s expertise in urban planning and infrastructure is particularly attractive to Ethiopia, given its ongoing projects to modernize Addis Ababa and other cities. Singapore’s smart city initiatives and integrated urban systems can help Ethiopia design cities that are not only modern but also sustainable.
The Asian Tigers have been models of investment in education and workforce development, which Ethiopia is keen to emulate. South Korea and Malaysia’s focus on skills training, vocational education, and workforce adaptability are areas of potential collaboration, which can enhance Ethiopia’s labor market.
Prime Minister Abiy Ahmed has been paying high-profile visits to these Southeast Asia to strengthen Ethiopia’s ties with these economies. These visits have led to discussions on enhancing trade, attracting investment, and fostering partnerships across various sectors.
During his previous visit to Singapore, Prime Minister Abiy engaged with business leaders, government officials, and investors to discuss Ethiopia’s economic reforms and potential as an investment destination. Singapore’s interest in Africa has been growing, and the meeting led to several memorandums of understanding (MoUs) in fields such as finance, ICT, and urban development. Ethiopia’s aim to attract Singaporean expertise for its industrial parks, particularly in areas like logistics and warehousing, was a key discussion point.
As one of the original Asian Tigers, South Korea holds valuable insights for Ethiopia. Prime Minister Abiy’s diplomatic engagements have strengthened Ethiopia-South Korea ties, particularly in the areas of education, technology, and infrastructure. South Korea’s government-backed programs for SMEs are of particular interest to Ethiopia, which seeks to build its local business base.
The diplomatic engagements with Asian Tigers have already started showing positive outcomes, as evident by growing interest from Asian investors in Ethiopia. Agreements and MoUs in areas like ICT, finance, and urban planning signal promising future collaborations.
Ethiopia has seen a rising inflow of investments from Asian companies, particularly in industrial parks, manufacturing, and energy. Malaysia and Singapore, known for their high-quality standards, are particularly interested in joint ventures that can serve as a base for African exports.
Through collaborations with educational institutions and technology firms from these countries, Ethiopia has enhanced its capacity in fields like ICT, fintech, and renewable energy. Singapore’s expertise in sustainable urban development and South Korea’s experience in digital transformation are expected to play key roles in Ethiopia’s plans.
Ethiopia’s exports, mainly agricultural goods, are finding newer markets in Asia. In turn, Ethiopia is importing technology and machinery essential for its industrialization efforts. The launch of direct flights by Ethiopian Airlines has further facilitated trade between Ethiopia and Asian countries.
Ethiopia’s deepening ties with the Asian Tigers underscore a strategic push toward an economic model that emphasizes industrialization, technological adoption, and sustainable urbanization. As Ethiopia continues to reform its economy, these partnerships can provide critical support, knowledge, and investment to help the country achieve its development aspirations. The ties with Malaysia, Singapore, and South Korea mark an important step in Ethiopia’s bid to become an African powerhouse, capable of driving growth across the continent.
Ethiopia and Malaysia are also working on strengthening trade, investment, and cooperation in sectors like education, healthcare, and manufacturing. The Prime Minister’s visit to Malaysia focused on creating mutually beneficial investment opportunities, exploring Malaysian companies’ interest in Ethiopia, and establishing direct flights to improve connectivity. Ethiopia Airlines has also considered routes that enhance business travel between these regions.
Last week, PM Abiy and his delegation visited Malaysia’s integrated economic and environmental protection activities that can also be taken as an experience for the wide-ranging environmental protection work Ethiopia is undertaking, Legese pointed out.
Malaysia carried out successful corridor development integrated with trade and tourism areas in its capital Kuala Lumpur, Legese noted, adding this will also provide lesson for the corridor development works in Ethiopian cities, reported local media.
In this regard, Abiy Ahmed and his delegation visited the corridor development activities in the Malaysian capital city allocating sufficient time, he stated.
The Premier also met with Malaysian Prime Minister Anwar Ibrahim on ways of strengthening bilateral ties between the two countries in multiple sectors.
The two leaders have agreed to deepen collaboration between Ethiopia and Malaysia across several key areas, including in trade and investment, with particular focus on agriculture, mining, manufacturing, and renewable energy. The Premier encouraged Malaysian businesses to seize vast investments opportunities in Ethiopia’s rapidly expanding economy. Malaysia appreciates Ethiopia’s full and unequivocal support in its journey towards becoming a BRICS partner country, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said that Ethiopia, as a member of BRICS, has been an important pillar for Malaysia’s application to join the bloc, which collectively accounts for one-fifth of global trade.
Anwar noted that Ethiopia has achieved phenomenal growth over the years and has become an important partner for Malaysia on the African continent.
He highlighted some of the commendable advancements of the landlocked state, including its economy, governance, anti-corruption initiatives, quality of education and airlines.
“I believe that, in all humility, Malaysia should emulate your success, learn from your experiences, and strive to ensure that Malaysia remains a stable and peaceful country while preparing its economy,’ Anwar said as quoted by Bernama.
Meanwhile, Prime Minister Abiy said both countries agreed to deepen collaboration across several key areas, including agriculture, industry, mining, trade and investment.
“There are plenty of opportunities on both sides. The discussions were very fruitful in enhancing our cooperation across all sectors”
“I encourage Malaysian businesses to seize the opportunities in Ethiopia, which is a rapidly growing economy. There are many prospects available,” he said, adding that his government is committed to supporting the private sector from Malaysia. Abiy emphasized that the longstanding diplomatic ties between Ethiopia and Malaysia, which span more than half a century, need to be strengthened through visits of this kind.
He noted that the private sector, tourism and government-to-government relationships will bolster bilateral ties.
BY STAFF REPORTER
THE ETHIOPIAN HERALD TUESDAY 29 OCTOBER 2024
