ADDIS ABABA– Ethiopia and Russia are set to harness cooperation across various sectors, aiming to unlock untapped business potential and foster mutually beneficial outcomes.
In his opening remarks at the “Russia- Ethiopia: No Time to Wait” business forum, Ethiopia’s Foreign Affairs State Minister, Ambassador Mesganu Arga, emphasized the longstanding relationship between the two nations, which dates back to the 17th century. He highlighted the strong spiritual and cultural ties that have formed the foundation of their enduring friendship. The forum, he noted, presents a key opportunity to enhance trade and investment, unlocking significant economic potential.
While the relationship has evolved into one of mutual trust, trade and investment have not yet reached their full potential, with current volumes remaining low. Ambassador Mesganu stressed that now is the time for both nations to collaborate more closely and elevate their trade relations.
Recently, Ethiopia exported around 14 million USD worth of products, including coffee, vegetables, pulses, and oilseeds, to Russia. In return, Russia exported 40 million USD worth of agricultural machinery, semi-finished iron, wheat, and edible oil to Ethiopia.
Ambassador Mesganu highlighted Ethiopia’s potential to become a top investment destination for Russian companies in Africa. As one of the world’s largest economies, Russia is well-positioned to serve as a primary market for Ethiopian exports. The Ethiopian government’s recent macroeconomic reforms have made the country more attractive to investors, offering a broad range of incentives.
He added, “With the adoption of the Home-grown Economic Reforms, we are on track to achieve our goal of rapid, green, and sustainable economic growth, positioning Ethiopia as one of the fastest-growing economies in the world.”
Russian investors are showing increasing interest in sectors such as energy, mining, agriculture, and manufacturing. In line with this, Russia’s nuclear corporation, Rosatom, has signed an agreement with the Ethiopian government to establish a nuclear energy facility and research center. Similarly, Russian oil giant Gazprom has partnered with Ethiopia’s Nile Petroleum to explore oil and gas reserves, while Russian Railways has signed a cooperation framework with the Ethiopian Railway Corporation to modernize and expand railway infrastructure.
Furthermore, Russia’s state-owned Rostec plans to invest in creating an industrial zone in Ethiopia to attract Russian manufacturers and boost bilateral trade. Other state-owned companies, including Rusagro in agriculture, Rostec in textiles, and several car manufacturers, are also exploring investment opportunities.
Russian Ambassador to Ethiopia, Evgeny Terekhin, echoed these sentiments, highlighting Ethiopia’s vast investment potential with its population of over 120 million. He praised the country’s rapid development and favorable investment climate, bolstered by Free Trade Zones and Industrial Parks across various regions.
Ethiopia’s recent entry into BRICS further strengthens its diplomatic ties with Russia, elevating their cooperation to new levels. The forum marks a significant moment in the growing economic and trade partnership between the two nations.
BY HAILE DEMEKE
THE ETHIOPIAN HERALD THURSDAY 14 NOVEMBER 2024
