BY STAFF REPORTER
India stands as one of the strong and long-standing partners of Ethiopia especially in the fields of trade and economy. Indian Ambassador to Ethiopia Robert Shetkintong told The Ethiopian Herald that the relations have passed the test time since the time of Axumite kingdom and steadily grown up till the present time. Excerpts:
How do you explain the bilateral relationship between Ethiopia and India, particularly since Prime Minister Dr. Abiy Ahmed came to power in 2018?
Ethiopia and India have historical and multifaceted ties. Business ties between the two countries have grown significantly, especially in the areas of trade, investment, agriculture and infrastructure projects. Recently, Prime Minister Mr. Narendra Modi had a telephonic conversation with the Ethiopian Prime Minister Dr. Abiy Ahmed and the two leaders reiterated the strong solidarity between our two friendly countries especially during this difficult COVID-19 pandemic.
An important aspect of our relations is the significant presence of Indian investments in Ethiopia. These companies have indeed participated in the economic development of this country. Ethiopia is a gateway to Africa. We have been closely following the economic reform process initiated in Ethiopia. Ethiopia has posted high economic growth rate which is entirely due to the sound economic policies and its strong and committed leadership. We are looking at the economic growth of this country and are closely following the developments including the privatization of Ethio Telecom and Sugar factories.
There is potential for increased trade and joint ventures in areas such as agriculture and agro-processing industries, floriculture, commercial farming of oilseeds, pulses and lentils, textile and garments, leather and leather products, IT sector, drugs and pharmaceuticals, packaging, iron and steel, engineering goods and machinery, yarns, plastic and paper products, mining, sugar production, etc. There are emerging opportunities in infrastructure projects in roads, power, telecommunications and water resources, gas exploration, wind-based energy, hydropower projects, etc.
How is the trade and investment flow between the two countries?
Bilateral trade between Ethiopia and India stood at USD 1.28 billion in 2018-19, out of which Indian exports to Ethiopia were USD 1.23 billion and imports were USD 55.01 million (Source: National Bank of Ethiopia). Exports from India mainly include primary and semi-finished iron and steel products, drugs and pharmaceuticals, machinery and instruments, manufactures of metal, etc. Major imports by India from Ethiopia were: pulses, precious and semi-precious stones, vegetables & seeds, leather and spices. India is the third most important source of imports for Ethiopia, contributing 10% of all of Ethiopian imports next to China, Kuwait and USA. India contributed 1.6% of Ethiopian exports to the world.
The difference in the trade balance will narrow as efforts to strengthen industrial sectors in Ethiopia take effect, the industrial and agro-processing sectors are expected to increase national exports with a particular emphasis on value added products.
Indian companies are in the top three foreign investors in Ethiopia with newer Indian multinationals marking their presence in Ethiopia. There are also many Indian investors in Ethiopia engaged in investment projects such as education, construction, etc. During the last one year, more than 35 Indian investors have shown interest or started their business in Ethiopia. I have visited Indian factories during the last two months, and I know that many of them are in the phase of expanding their ventures. A pharmaceutical company from India is about to start its productions in this country. This bodes well for two very friendly countries.
How many Indian companies are engaged in Ethiopian investment sector?
Areas with most promising potential for investments in the country are agriculture, food-processing, leather & leather products, textile & garments, horticulture, sugar & related industry, chemicals, pharmaceutical, cement, metal & engineering, construction, mining, etc.
India is one of the largest foreign investors in Ethiopia and Indian companies have been playing a prominent role in the area of investment. Currently, 607 Indian companies have investment licenses out of which 369 companies which account 61% of the total are under operation.
The licensed investment is estimated to be over USD 4 billion of which about USD 2 billion is estimated to be on the ground. Indian investors are the second-largest foreign employers in Ethiopia, providing employment to more than 70,000 persons. About 60% of Indian investments are in the manufacturing sector, followed by agriculture (16%). Indian companies have invested in various sectors like agriculture and floriculture, engineering, plastics, manufacturing, cotton and textiles, water management, consultancy and ICT, education, pharmaceuticals and healthcare.
Some of the major Indian companies include Asian Paints (Kadisko), Allana Group, Jay Jay Mills, Ashton Apparel Manufacturing, Arvind Mills, Ethio Cements, Raymonds, Kanoria, Hansa Flowers, Balaji Manufacturing, Samaka Stones, MSP Steel & Power Limited, Mahavir PLC, Farida Tannery, Cadilla Pharmaceuticals, Aarti Steel, GEC Steel, Abay Esdee Paints, Velocity Apparel, SCM Garments and KPR exports.
Which sectors are more attractive for Indian companies to invest in Ethiopia?
Indian companies have invested in various sectors like manufacturing, agriculture & floriculture, cotton & textiles, water management, ICT, education, pharmaceuticals and healthcare and hotels out of which majority of the investment are in Manufacturing and Agriculture.
Ethiopia and India have built strong socio-economic relations over the past many years. Can you more elaborate some of the cooperation in social, education, science and technology aspects?
India and Ethiopia have long-standing economic and commercial relations
which are centuries old and can be traced back over 2000 years of recorded history. During the Axumite Kingdom, Indian traders had links with the ancient port of Adulis in the eastern part of Ethiopia and traded silk and spices for gold and ivory. In recent years, with the opening up of the Ethiopian economy, business ties between the two countries have grown significantly, especially in the areas of trade, investment, agriculture and infrastructure projects.
India and Ethiopia have a strong development partnership based on mutual understanding and respect, and sense of genuine partnership drawing on the principle of South-South cooperation. This partnership comprises of capacity-building cooperation through technical training, grants towards support to people and concessional lines of credit of USD 1 billion for projects based on the priorities identified by Ethiopia. Out of the three Sugar Factory projects being undertaken through LoC funding of USD 640 million, Finchaa Sugar Factory has already been completed and handed over to the Ethiopian side. The other two, Wonji Shoa and Tendaho Phase-I have commenced production and would be handed over to the Ethiopian side after the completion of some balance works.
Ethiopian students can avail scholarships for undergraduate, postgraduate and doctoral degrees under schemes such as Indian Council of Cultural Relations (ICCR) scholarship, CV Raman fellowship, and research training fellowship of the NAM S&T Centre (New Delhi). Presently, Ethiopia is being offered 55 slots by ICCR for Undergraduate, Postgraduate and Ph.D courses. Ethiopia is also presently one of the largest beneficiaries of training slots allocated under Indian Technical and Economic Cooperation (ITEC) programmes. ITEC slots have increased over the years reaching 400 (2018-19) and 406 (2019-20). These courses pertain to areas such as management skills, human resources planning, IT, entrepreneurship development, managing water resources, fluid dynamics, energy, English language, etc.
With regard to partnership in the area of science & technology, India and Ethiopia have agreed to establish the “India-Ethiopia Centre for Innovation, Technology Transfer and Commercialization”. This announcement was made in February 2019. The India-Ethiopia Centre for Innovation, Technology Transfer and Commercialization would aim to deploy at least 50 demonstrated and validated technologies and innovations over a period of five years. The joint projects/ventures thus created with Ethiopian partners will deliver at least 50 sustainable small & medium enterprises to stimulate job creation and economic growth in Ethiopia. Technologies and innovations offered through this Centre would focus on sectors like agriculture, food processing, energy, waste management, education, information technology, healthcare, etc. The programme will be implemented by FICCI and Ethiopian Ministry of Innovation & Technology. The first India Innovation & Technology Expo and Conference under India-Ethiopia Innovation & Technology Commercialization Program was held in Addis Ababa (Dec 2019). 25 shortlisted applicants from India received a total of 54 interested and identified potential matches in Ethiopia, making it more than 1 is to 2 ratio which was a very good start for a unique first year of Programme.
How do you explain the cooperation in Health sector including in fighting against Coronavirus and other humanitarian efforts?
India can play a positive role in improving Ethiopian healthcare sector by offering support for training of doctors and healthcare personnel, including modern technology, the use of affordable generic medicines, promoting the use of traditional medicines, etc. India has actively worked with international partners in collectively addressing the challenges posed by the ongoing COVID-19 pandemic. The Government of India also offered medical equipment to Ethiopia.
Ethiopia depends largely on Indian drugs and medicines which has a major share in the Ethiopian pharmaceutical market. Indian medicines are commonly used by Ethiopians due to its high standards as also its low cost and affordability. Major drugs and pharmaceutical items exported by India to Ethiopia include vaccines, antibiotics, penicillin, vitamins, first-aid kits, etc.
There is increasing trend in Indian export of pharmaceutical products to Ethiopia. Indian company Cadilla Pharmaceuticals had set up a manufacturing unit in Ethiopia producing a number of generic medicines. Another Indian pharmaceutical company has reached critical stage and will start production soon. Some of the leading Indian companies like Cadilla, Cipla, Ranbaxy, Torrent, Tablet, Aurobindo, Neon Lab Ltd., Alembic, Flamingo, Kopran Ltd., Leben Laboratories, and Sterling Lab are popular Indian brands in Ethiopia.
Every year, about 3,000 Ethiopians travel to India for medical treatment. Indian hospitals charge affordable prices and our doctors and surgeons are well trained, have expertise and lots of experience. Separately, specialist doctors and surgeons from India have been conducting free medical camps, consultations and even surgeries in Ethiopia. Rotary/Lions Clubs in Ethiopia have also facilitated such camps for the less privileged sections of the Ethiopian society. Apollo Hospitals and Schroff Eye Care have offered training to doctors and other medical professionals from Africa at their hospitals in India.
The Ethiopian Herald 19 January 2021
