Ethiopia-Brazil Cooperation: A way forward for bolstering trade, investment

Ethiopia and Brazil are countries located on different continents and in different hemispheres where Ethiopia is in Africa in the northern tropical region and Brazil in Latin America in the southern hemisphere. But the two countries have many things in common such as both are the countries of black people; both are developing nations aspiring prosperity via materializing their cooperation that includes various sectors.

The two countries have strengthened their relations more recently since the Ethiopian embassy opened in Brazil. Last June, the Brazilian Minister of Foreign Affairs, Mauro Vieira, made an official visit to Ethiopia where he met with top leaders of the country. He said that the governments of Ethiopia and Brazil have reaffirmed their commitments to further enhance the longstanding bilateral and diplomatic relations.

Up on receiving the Brazilian tip diplomat at his office, Prime Minister Abiy Ahmed (PhD) said that his discussion with Vieira was focused on ways “to strengthen ties between Ethiopia and brazil as well as cooperation on multilateral issues.”

A similar discussion was held between FM Vieira and Deputy Prime Minister and Foreign Minister Demeke Mekonnen. Demeke stressed that it is high time to elevate Ethio-Brazil relations as the opening of the Ethiopian Embassy in Brasilia is aimed at bolstering relations between the two countries. The Deputy Prime Minister also thanked the government of Brazil for supporting sustainable forest management, cotton productivity, and soil protection projects in Ethiopia.

Ethiopia and Brazil could further cooperate in the areas of investment, aviation, tourism, agriculture, manufacturing, environmental protection, mining, and renewable energy, Demeke noted. The Brazilian Foreign Minister, for his part, expressed his government’s readiness to support sports and other sectors parallel to advanced mutual interests in bilateral and multilateral venues.

Accordingly, the dignitaries have also agreed to conduct political consultations subsequently, the foreign minister said.

The two countries have taken more steps to strengthen their bilateral relations. To this end, they have conducted a seminar last Thursday on 13 December, 2023 here in Addis at Hilton hotel that focused on trade and investment activities between them. The occasion was attended by officials of various institutions from both sides and expressed the readiness of their respective countries in bolstering the bilateral relations in different economic sectors.

While attending the seminar, Ambassador of Brazil to Ethiopia, Jandyr Ferreira Dos Santos said that though the two countries are located in different continents, the distance could not prohibit them from making relations. The opening of Ethiopian embassy in Sao Paulo, Brazil, in particular, enabled to facilitate business relations between the two countries.

The two countries are committed to further strengthen their relations especially in the areas of economic development. The first Brazil – Ethiopia trade and investment seminar showcases the desire the two countries have to grow together and the seminar can serve as the milestone for the cooperation between the public and private businesses of the two countries.

Director of the Department of Trade, Investment and Agriculture (Minister of Foreign Affairs of Brazil)-Ambassador Alex Giacomelli da Silva, for his part, said that the seminar held here in Addis Ababa is the first in Africa. As to him, they have been here to identify trade and investment areas that his country and the private sector can engage in. the seminar also helps facilitate bilateral relations between the Ethiopian and Brazilian private business sectors.

On the seminar, promoting bilateral trade and interchange in agriculture was given emphasis. To this end, Alemayehu Mekonnen (PhD), Senior Advisor to the State Minister of Agriculture of Ethiopia attended the forum being one of the keynote speakers.

Recalling the beginning of diplomatic relations of the two countries, he said that in 1951, the two countries established the first diplomatic relations and in 1960, Brazil opened residential embassy for the first time in Addis Ababa. In the same year, Emperor Hailesilassie paid the first visit to Brazil. The two countries started cooperation in the forest protection and soil acid management. Following that their cooperation progressed in the areas of basic sanitation and population census.

According to the senior advisor, the bilateral relations between the two countries has grown up to making signatory on various sectors of which memorandum of understanding on agriculture cooperation signed in 2013 is one of them. Following that, in 2016, another memorandum of understanding was signed on trade and investment cooperation. These and other cooperations reached on indicate the willingness of the two countries to facilitate business activities.

As the population of Ethiopia is growing rapidly, it is essential to create job for the rural and urban dwellers so that expanding investment should meet the demand. Modernizing farming and applying innovative animals’ production and productivity aided by technologies must be given special consideration to meet the need of ever increasing urbanization for qualified production of animals and to ensure food self sufficiency.

To this end, the government of Ethiopia officially endorsed the ten years strategic development plan to enhance production and productivity. Meanwhile, as to Dr. Alemayehu, the Ministry of Agriculture, alongside the ten years development plan, gave special emphasis for the production of ten commodities known as ten in ten, which means ten specific commodities for the coming ten years. The recently launched “Yelemat Tirufat” locally implies surplus production in specific commodities is one of the efforts the government is undertaking to hit the target of being food self sufficient and become exporter.

Representing the Ministry of Trade and Regional Integration of Ethiopia, Tages Mulugeta said that the continuous economic growth of Ethiopia reached 6.4% of the GDP growth. The economy could resist the Covid-19 pandemic and registered growth. While coffee and flowers are the major export products, spices, oil seeds and other agricultural products are among the main ones. Besides, leather and leather products are also the commodities Ethiopia is exporting.

As to Tages, Ethiopia needs to diversify its export items to make balance in the world trade and the business it is conducting with Brazil. The major import products from Brazil include machineries and sugar. Regarding opportunities and challenges, Metages mentioned high population of Ethiopia for labor needs, convenient ecology, organic products, infrastructure development and other facilities as good opportunities to doing ease business in Ethiopia. He assured that his ministry is committed to work with Brazilian counterparts.

As part of the seminar, there were also keynotes on opportunities for expanding bilateral investment flows. Regarding this sector, Lelise Neme, Commissioner of the Ethiopian Investment Commission said that the occasion signified a remarkable juncture to fortify economic collaboration between the two nations, Ethiopia and Brazil. Ethiopia has high potential for foreign direct investment.

Initiated by the visionary Prime Minister Abiy Ahmed (phd), Ethiopia is undergone a transformative journey by sustential reforms and to enhance the ease of doing business. This commitment is manifested into the revision and enhancement of investment rules and relation creating an even more favorable environment for the foreign direct investment, she said.

She mentioned some sectors including telecommunication, financial and logistics which were previously restricted but now opened for collaboration. Though transportation infrastructure needs more advancement, the Ethiopian airlines is one of the largest means of transportation along with its well connected radio system for streamlining investment process.

Membership in BRICS which signals Ethiopia’s commitment to deepen economic integration with Brazil and other member countries that will increase the trade between Brazil and Ethiopia could create a new business opportunity and attract more foreign investment. She underlined that Ethiopia’s membership in the bloc will facilitate business relations.

BY BACHA ZEWDIE

THE ETHIOPIAN HERALD 19 DECEMBER 2023

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