Asian Countries

Ethiopia and China enjoy longstanding and historic relations. The two countries established diplomatic ties in 1970. Ethiopia is represented in China by an Embassy in Beijing and three Consulate General offices in Guangzhou, Chongqing and Shanghai; whereas the People’s Republic of China is represented by an Embassy, a Permanent Mission to the AU in Addis Ababa.

The diplomatic relations between the two countries has significantly strengthened during the past 27 years.  Since May 2017 the relations has elevated to a higher level of Comprehensive Strategic Cooperative Partnership (CSCP) reflecting the strong the bond that has been established between the two countries in political, diplomatic, business, party-to-party, people-to-people dimensions.

 Moreover, 2020 is the year that the two countries are marking the 50^th Anniversary of the establishment of the diplomatic relations which are commemorating by highlighting the remarkable achievements made so far in terms of bilateral cooperation across a wide range of sectors and fields gave Comprehensive nature of the strategic partnership between the two countries. The Anniversary is also hoped to open the new chapter in the relations between the two countries.

The deep-rooted nature of  Ethiopia and China relations is characterized by frequent high-level visits to both sides. Emperor Haileselassie (1971), the Late Prime Minister H.E. Mr. MeleseZenawi (1995,2004,2011), H.E. President Dr. MulatuTeshome (2004,2014,2017), Former Prime Minister H.E. Mr. Hailemariam Dessalegn (2011,2014,2015,2017), Deputy Prime Minister H.E. Mr. DemekeMekonnen (2014,2017), Prime Minister H.E Dr. ABiy Ahmed (2018,2019) and by many other Ethiopian Ministers visited the People’s Republic of China at various times on different occasions. On the Chinese side: Deputy Premier and Foreign Minister H.E. Mr. Chen Qichen (1994), President H.E. Mr. Jiang Zemin (1996), Premier of the State Council H.E. Mr. WenJiabao (2003), Vice Premier H.E. Mrs. Liu Yandong (2013), Premier H.E. Mr. Li Keqiang (2014), vice President H.E Mr. Li Yuan–Chao (2016), State Councilor H.E Mr. Yang Jiechi (2017), Chairman of the Standing Committee of the National People’s Congress (NPC), H.E. Mr. Li Zhanshu (2018), State Councilor and Foreign Minister H.E Wang Yi (2019) and many other Ministers visited Ethiopia at various occasions.

Close to 60 bilateral agreements and MOU’s have been signed between the two countries including Agreement for Economic and Technological Cooperation (1971, 1988 and 2002), Trade Agreement (1971,1976), Trade Protocol (1984, 1986, and 1988); Agreement for Trade, Economic and Technological Cooperation (1996), agreement for Mutual Promotion and Protection of Investment (1988), Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (2009), MOU on Air service (2013), Agreement on Mutual Visa Exemption for the Holders of Diplomatic and Service Passports (2014), MOU between the Ministry of Defense of the FDRE and the Ministry of Defense of  China (2016), MOU on Cooperation within The framework of the Silk Road Economic Belt and the 21^st Century Maritime Silk Road Initiative (2018).

The Ethiopian Airlines were the only and first airline that connected Africa with China as early as 1973. The Airline flies to five cities of China such as Beijing, Guangzhou, Shanghai, Chengdu, Hongkong, and Shenzhen are also expected to be added to the destination list soon.

1. Ethio-China Cooperation

Ethiopia and  China cooperation have made major strides in the past decades. Ethiopia and China are reliable partners and China has played an important role in helping to boost Ethiopia’s economic development.

1. Forum on China-Africa Cooperation (FOCAC) and One Belt One Road Initiative (OBOR)

This is the Development Cooperation between China and Africa and contributing a lot in industrialization, infrastructure development, boosting of investments, etc in Africa. Ethiopia is an active participant and a prime beneficiary of FOCAC, which has enabled it to boosting industrialization, infrastructural and agricultural development and poverty alleviation among other things. Moreover, Ethiopia is considered by China as a pilot country for cooperation in Production Capacity, whose three policy pillars include poverty eradication, industrialization and regional connectivity.

OBOR (BRI) is a massive strategic infrastructure project proposed to be financed mainly by the government of China. The initiative mainly focuses on connectivity and cooperation between the Eurasian countries and the People’s Republic of China through the land-based Silk Road Economic Belt and the ocean-going Maritime Silk Road. The cooperation includes Policy Coordination, Infrastructure connectivity, unimpeded trade, financial integration, support in investments, cooperation in People-to-People bond like culture and developing tourism facilities etc.

China is the main and reliable source of finance (capital/loan/grant) for Ethiopia’s multifaceted developmental activities mainly in infrastructural developments, industrialization, agriculture, poverty alleviation, capacity building and so forth. Ethiopia, is, therefore, very grateful for China’s continued support and solidarity as a dependable partner.

Chinese companies are major contractors for many development projects in Ethiopia, including industrial parks, wind powers, expressways, urban light rails, and cross-border electric rail links. The Ethiopia-Djibouti standard gauge and electrified railway, the 12Km Sheger-Beautify project, the Addis Ababa light railway, the Addis-Adama toll gate express highway, the Addis Ababa ring road, and the industrial Park constructions symbolize the Comprehensive Strategic Cooperative Partnership between Ethiopia and China. Such mega projects have been implemented under the framework of BRI and FOCAC platforms.

1. Investment

China is Ethiopia’s largest source of Foreign Direct Investment, FDI. The investment flow has increased by leaps and bounds over the past two decades or so. According to the information obtained from the Ethiopian Investment Commission as of May 2020, out of more than 1500 Chinese investment registered in Ethiopia, about 1000 are at the operational level with registered capital of 43.1 billion Ethiopian Birr (approximately 1.3 billion USD). It implies that Chines FDI has played a great role in accelerating the country’s developmental activities.

1. Trade

China is Ethiopia’s leading trade partner. The trade volume of trade between the two countries has increased over the past two decades or so. In 2018, Ethiopia exports value of 324,783,258.42 USD various export products to China and imports value of 4,267,700,820.74 USD from China.

China, as a country of the huge population with a big market, Ethiopia should focus on a maximum utilization of the Chinese market by acquiring special preference access for its industrial and agricultural products. Particularly, since the Chinese People are developing coffee consumption habits, Ethiopia should make the necessary research and come up with special branded Ethiopian coffee that may suit the flavor of the Chinese new generation. The smooth economic and political cooperation that exists between the two governments is an opportunity to achieve these.

Historical Background

The historical linkages between Ethiopia and India go back to about 2,000 years. That is when Indian traders brought silk and spices to Ethiopia in return for gold and ivory. In the latter part of the 19th century, a large number of Indian communities comprising of merchants and artisans settled in Ethiopia, some of whose descendants are still present to this day in Ethiopia. The movement has not been one-sided. It is also known that thousands of people of Ethiopian origin had settled in Gujarat and some other parts of India and became an integral part of that society.

Diplomatic relations were formally established in the middle of the last century in 1948. Ethiopia became one of the first countries in Africa to open its Embassy in India immediately after India’s independence in 1947. Ever since the establishment of these relations, the two countries have exerted efforts to strengthen their longstanding bilateral ties. Accordingly, exchanges of visits were made by the leaders and higher officials of the two countries. High-level visits from Ethiopia include Emperor H/Selassie’s visits to India in 1956 and 1968, the Dergue President Mengistu H/Mariam’s visits in 1983 and 1985, the Late Prime Minister H.E. Meles Zenawi’s visits in 2007, 2008 and 2009, and the former Prime Minister H.E. Hailemariam Desalegn’s visit in 2015. On the other hand, high-level visits from India include Dr. Radhakrishnon, President of India’s visit in 1957, Shri.V.K. Groven, special envoy of Indian Government’s visit in 2005, Dr.Manmohan Singh, Prime Minister of India’s visit in 2011 and H.E. Mr. Ram NathKovind, President of India’s visit to Ethiopia in October 2017.

1. Current Relations

1.1.    Political Relations

As noted above, the two countries have long-standing diplomatic relations.  Frequent exchange of high-level visits between the two countries laid the foundation for the current excellent relations. Recently, H.E. Mr. Ram NathKovind, President of India visited Ethiopia from October 4-6/2017 and held meetings with H. E. Dr. Mulatu Teshome, the former President of FDRE and H.E. Mr. Hailemariam Desalegn, the former Prime Minister of FDRE. On the other hand, H.E. Dr. Workneh Gebeyehu, the former Minister of foreign affairs of FDRE, visited India on May 9/2018 to attend the second Joint Ministerial Commission Meeting of the two countries. During those visits, consultations on multifaceted bilateral and regional issues have been made and the two countries showed their commitment to deepen the existing friendly relationship.

1.2.   Economic Relations

Ethiopia and India have long-standing economic and commercial relations and bilateral relations have grown into an all-round development partnership covering trade, investment, development assistance, in the form of soft loans and technical assistance.

1.2.1.  Investment

According to data from the Ethiopian Investment Commission in 2018, there are about 487 Indian companies in Ethiopia with licensed investment capital of over Eth. Birr 8.36 billion which have created employment opportunities for more than 35,000 Ethiopian citizens. The main investment areas are real estate, manufacturing, construction, health, agriculture, and agro-processing industry and manufacturing.

1.2.2. Trade

The trade between the two countries has been growing steadily. In 2017, India imported Ethiopian products worth USD 44.69 million. On the other hand, Ethiopia imported Indian products worth USD 1.09 Billion in the same year. The main trading items of Ethiopia exported to India are semi-precious stones, unfinished leather, leather products, cotton, oilseeds, spices. The main export items of India to Ethiopia include sugar, rice, drugs, and pharmaceuticals, steel product, primary, and semi-finished iron, machinery, and instrument, paper products, etc

The trade balance remains in favor of India. For instance, the bilateral trade in 2017-18 stood at US$1.271 billion, of which India’s exports to Ethiopia were US$1.224 billion and imports were US$47.45 million.

1.2.3. Financial and Technical Cooperation  

Ethiopia has benefited from the line of credit (LOC) from India. So far, India has granted more than USD 1.1 billion LOC to Ethiopia mainly to sugar projects such as Fincha, Wonji Shoa and Tendaho, and to rural electrification.

India is also an important source of suitable technologies and skills for the development of value-added agricultural products, light manufacturing, and infrastructure. India also offers technical assistance to Ethiopia in the form of training, capacity building, and technology transfer.

1.3.   Capacity Building

Ethiopia is benefiting from scholarships and short-term training programs offered by India. Ethiopia also benefits from India’s Technical and Economic Cooperation (ITEC), Indian Council for Cultural Relations (ICCR) and CV Raman Fellow Scholarship, all fully funded programs by the Indian government. During the second Ethio- India Joint Commission Meeting (JCM) held on May 9/2018, India promised to raise the training slot to 350 in the year 2017/18. In addition to this India raise the training slot to 450 in the year 2019/20. Those programs which are offered to different government institutions are contributing to human capital development.

2. Future Prospects

The relationship between Ethiopia and India is multifaceted which covers a wide range of political, economic, financial and technical cooperation.

Historical Background

Ethiopia and Japan, nations with ancient history and civilization, have long relations dating back to 1930 where the two countries signed a Treaty of Amity and Commerce. This was followed by a visit of Ethiopian Foreign Minister Heruy WeldeSellase in 1931 to Japan to create economic cooperation. The establishment of an honorary consulate-general in Osaka in 1933 and the establishment of legation in Ethiopia in 1936 were milestones of the earlier years. Emperor Haile Selassie was strongly attracted to the harmony that Japan achieved in conjoining modernity and traditional culture, even including in the Ethiopian School curriculum a book in Amharic entitled “How Japan was Civilized.”  Later, both countries established Embassies in each capital in 1958. Another milestone was the 1964 Tokyo Olympic Games was Africa’s first Olympic Gold Medalist, Abebe Bikila of Ethiopia, won the marathon for the second time. 

Then, relations between the two countries have been regularly strengthened by various visits made by high government officials. These have included the visit of the Prime Minister of Japan, H.E. Mr. Junichiro Koizumi, to Ethiopia in 2006, and of late Prime Minister H.E. Mr. Meles Zenwi to Japan on several occasions. Japan Parliamentary League, as well as the Japan-Ethiopia association, serves as a bridge to enhance people-to-people relations. Ethiopian MPs have also created an Ethiopian-Japanese association of members of parliament.  

Such good relations are strengthened by VIP visits: in 2013 by Prime Minister H.E.  Mr. Hailemariam Dessalegn to Japan; and in 2014 by Prime Minister H.E. Mr. Shinzo Abe to Ethiopia; in 2017 by Deputy Prime Minister H.E. Mr. Demeke Mekonen to Japan; and in 2017 by Minister of Foreign Affairs of Japan Mr. Taro Kono. The current Prime Minister of Ethiopia, H.E. Dr. Abiy Ahmed, also visited Japan in August 2019  to participate on the TICAD7 forum held in Japan Yokahama City. During this visit H.E, Dr. Abiy met with the Japanese Prime Minister and both leaders discussed their desire to further strengthen the existing relations and further, enhance the bilateral relations to the next mutually beneficial and heightened level.

The recently started direct flight by Ethiopian Airlines to Japan, as the only African Flag Carrier that is flying to Japan, is a result of the agreements made by the Governments of the two countries. The flight is believed to widen opportunities for people to people relations and become a catalyst for the increased number of visitors from Japan to Ethiopia.

1. Democracy and Human Rights

Japan is recognized as the most successful case of democratic state-building that the world has ever seen. From the rubble of World War II, the Japanese built a constitutional system that is stable, guarantees a wide spectrum of human rights, and is seen as legitimate by virtually all members of society. Thus,  Japan is an important partner for Ethiopia in democratic system building.

1. Technological innovations

The fact that key elements underlying Japan’s industrial and the technological rise have remained remarkably consistent over time prompts us to learn its technological innovations. Some of the milestones including; (1) central government policies that encourage the adoption and diffusion of foreign technologies through lowering private-sector risks, stimulating demand, and providing educational and other infrastructure; (2) a diffuse base of entrepreneurial vitality and a strong competitive private-sector that is receptive to new technologies and capable of improving them; and (3) a political and ideological climate that generally allows for consensus on national imperatives and flexibility in policy approaches to meeting them. These points are of immense interest to Ethiopia as the country is seeking to build industrial and technological strength by utilizing the successful approaches to Japan.

1. Development cooperation

Japan has been providing development assistance as well as humanitarian aids to Ethiopia to support our nation-building efforts. Japan’s development support in the form of grants and technical cooperation has been demonstrated in agriculture, water resources, health, education and infrastructure. Through  the Japanese government aid implementing body (JICA), different kinds of capacity building and technical cooperation activities aimed at transferring technology and knowledge, in accordance with Ethiopia’s Growth and Transformation Plan, have been undertaken in Ethiopia. Japanese support has been invaluable in the construction of primary schools, the development of water facilities and the road network, in increasing agricultural productivity, much involving the active participation of local communities. These are bringing significant changes at the grass root levels and shall further be beeped up.

The concessional loan of 50 million USD offered by Government of Japan to Ethiopia in 2017, after 43 years, for women entrepreneurship projects; the ODA support of 50 million USD for construction of secondary schools, water and sanitation, and small geothermal project in Ethiopia; and the recent move to consider Jimma-Chida trunk road project with AfDB and related projects are development assistances worth mentioning. In addition, Ethiopia is beneficiary of the African Business Education Initiative For Youth (commonly referred to as ABE-Initiative) which was launched in 2014 by the Government of Japan with the aim to educate African Youth in business programs in Japan. Since the start of the program, 69 Ethiopian students have participated and many more are expected to be trained in the future. These opportunities coupled with the unique Kaizen principles will bring the opportunity to apply quality, productivity and competitive techniques to our businesses and industry, which will, in turn, contribute to the rapidly growing economy. 

1. Trade and Investment

Ethiopia and Japan have long years of trade and investment cooperation. Ethiopia exports agricultural products, the major share of which is coffee, while importing technological products mainly cars, machinery and electronic goods from Japan. Apart from coffee, Rose flowers and Leather are newcomer products from Ethiopia to Japan market with high demands. However, trade volumes with Japan have not been persistent and fluctuated from year to year.  According to the 2017 trade data from Ethiopia Revenue and Customs Authority, export from Ethiopia to Japan is about 70,200,748.78 USD and import from Japan to Ethiopia is 442,859,539.54 million USD, showing trade deficit of about 372,658,790.76 million USD against Ethiopia. The trade balance is in favor of the Japanese side.  The opening of the Japan External Trade Organization (JETRO) overseas office in Addis Ababa in 2016, with a mission to invite Japanese investors to Ethiopia, is believed to herald a new chapter in the economic relations between the two countries and will bolster bilateral trade relations. 

1. Background

Ethiopia’s diplomatic relations with South Korea dates back to the 1950s during which a number of Ethiopian soldiers sacrificed their lives in the Korean War (1950-53). In the Korean War led by the US under the auspices of the UN peace keeping mission, Ethiopia has sent 6037 troops (the Kagnew Battalion) who fought alongside the Republic of Korea.

As a result, The Republic of Korea has maintained a special friendship with Ethiopia and bilateral cooperation has been further strengthened since the establishment of diplomatic relations between the two countries in 1963.

The relationship between Ethiopia and the Republic of Korea is cemented by blood. Koreans know quite well about what the valiant sons of Ethiopia have contributed to the liberation of the Republic of Korea.

2. Bilateral Relations

The relationship between Ethiopia and the Republic of Korea has been enhanced by the exchange of visits of higher officials of the two countries. The visits made by the late Prime Minister Ato Meles Zenawi in 1998, 2010 and 2011 to the Republic of Korea and the visit made by former President of the Republic of Korea, Mr. Lee Myung-bak, to Ethiopia in 2011 has enhanced the historic relationship between the two countries. During these official visits, the two leaders discussed ways to further expand the scope of bilateral cooperation in various fields, including infrastructure development, investment, trade and other issues of mutual interest in the international arena. Leaders of the two countries had also agreed to share Seoul’s “green growth” vision for environment-friendly growth. Both leaders reiterated their desire to further strengthen the existing cooperation in the economic, science and technology sectors.

In this view, the Government of the Republic of Korea has identified Ethiopia as one of its principal partners for Official Development Assistance (ODA) and has conducted development assistance tailored to the country’s situation, while extending support for its efforts to build an industrial complex. 

The high-level visit led by H.E President PARK Geun-Hye on May 26, 2016, has further strengthened the existing bilateral relations between the two countries.

Prime Minister H.E. Dr. Abiy Ahmed visits the Republic of Korea in August 2019 and during his visit, the two leaders agreed to expand their traditional friendly relations to practical cooperation in various sectors such as trade and investment, development cooperation, science and technology, forestry and the environment. To this end, the two sides signed five memorandums of understanding on agenda such as the joint ministerial committee formation, visa exemption agreement for diplomatic and official passport holders, and cooperation in education and the environment, that would help to elevate this traditional partnership to strategic levels in the years to come.

3. Ethio – Korea Economic and Business Cooperation

1. Development Cooperation

The Gore-Teppi Road Project, which has already got approval for $127m Korea loan from the House of Peoples Representative of the F.D.R.E is a slice of a 500-million-dollar loan of the framework agreement made in May 2016, when South Korean President, Park Geun Hye, visited Ethiopia. In this regard, since the Framework Agreement was signed for the year 2016-2018, it should be renewed for the implementation of other projects.

The government of the Republic of Korea has been providing financial grants and technical cooperation for projects in the areas of health, agriculture, water supply, education and governance through Korea International Cooperation Agency (KOICA), which opened its branch office in Ethiopia in 1995.  Within the last two decades, the agency has provided support for the aforementioned sectors worth $96 million.

With regard to the technical cooperation, KOICA is responsible for coordinating the dispatch of World Friend Korea (WFK) volunteers, vocational training programs, NGOs support and private-public partnership (PPP). KOICA’s volunteers have been rendering their services in the fields of IT, health, education, technology, etc. in different parts of Ethiopia.

With its 5 years plan starting from 2012,SaemaulUndong Movement has been performing installations of electricity and water tanks, construction and maintenance of a bridge which connects to access road, reinforcement of a water reservoir, kindergarten and library operation, manufacture and sales of improved fire pots, livestock bank, chicken farm, sewing machine business, supply of solar power panels, operation of a pilot farm, Saemaul organization and training, education of agricultural technology in the Pilot Villages mentioned above. Ethiopia is one of the four African countries benefiting from SaemaulUndong A movement that projects are being piloted at a cost of 3.1 billion South Korean Won (about 2.7 million USD).

1. Investment

FDI from Korea to Ethiopia is small. As of September 2015, the registered total number of Korean investment projects is 72, with a total capital of Birr 1.2 billion. Out of these, 53 projects are at operation level with a total capital of Birr 689.2 million, mostly in manufacturing sectors (leather, textile, garment…) and also in the provision of construction equipment.

A successful Korean company called Shints ETP Garment Plc. has invested at Bole Lemi Industry Park and has earned 3 million USD within 10 months of its establishment and this can be mentioned as a good example. Shints ETP has created job opportunities for 1,500 people. The company has been exporting its product to Europe and Asia (Germany, Italy, Spain, Vietnam and South Korea). 

Ethiopia’s investment potential to Korean investors remains untapped, especially in the areas of manufacturing such as textile, leather and leather products, agro-processing and the likes. Ethiopia’s vast raw material for industrial production, diverse mineral resources and oil and gas potential have started to attract foreign direct investments in recent years.

As President Lee Myung-bak of Korea said in the 2010 World Economic Forum in Davos, Korea now looks “well placed to share its development experiences and expertise with emerging and developing countries on strategies for development and on policies for a successful recovery from financial crises,” Korea has been shifting its focus on Africa to meet its increasing demands for energy and market for its products. Ethiopia, therefore, should create a good investment environment and promote its investment opportunities for Korean investors to make use of this advantage and attract FDI from the Republic of Korea.

1. Trade

Ethiopia and The Republic of Korea have historic relations not only government to government but also, people to people that have been cemented by blood and they’re diplomatic relation dates back to more than half a century. Nevertheless, the volume of trade between the two countries and Korea’s FDI to Ethiopia is very low. Ethiopia imports from Korea heavy construction equipment, medicine, etc. and exports coffee, vegetables, leather, etc. The balance of trade is in favor of Korea.

However, there is A good opportunity to increase the trade volume between the two countries. Korean trading companies have shown interest to buy Ethiopia’s high value agricultural products, such as coffee, sesame, flowers, textiles, leather, and leather products destined for the Korean market.

Taking this historic relationship into account, the economic cooperation, i.e. finance & technical cooperation, trade, investment and tourism that exist between the two countries needs to be taken into a high level. Korea has huge investment potential that we should be able to vigorously promote Ethiopia’s untapped investment and business opportunities to Korean investors.

1. Historical background

The Diplomatic relation between Ethiopia and Malaysia was established in 1965, Malaysia established its Embassy in Ethiopia in the same year. It was the second mission that Malaysia had established in Africa next to Egypt.

The Diplomatic relations between the two countries became delicate during the Derg Regime and as a result of which Malaysia has closed its Embassy in 1982.

Since the establishment of the FDRE government, both countries have been keen to reinforce the overall relations. In this connection, higher officials and delegations have started making various visits starting from the 1990s. Malaysian delegation led by the special envoy of the Malaysian Prime Minister, Dr.Mahattir Mohammed, has visited Ethiopia in November 1997. The late Prime Minister of Ethiopian H.E Meles Zenawi and his delegation visited Malaysia in October 1998. During this visit, the two countries have signed treaties on Economic, Scientific, Technical Cultural, Investment and Trade. The delegation has also included a business team aimed at strengthening relations between the private sectors of the two countries.

The commencement of direct flight by Ethiopian Airlines to Kuala Lumpur, capital of Malaysia is expected to play a major role in the promotion of trade and investment. It is also anticipated that it will create a good opportunity to strengthen the people to people relation between to the countries.

A delegation led by Malaysian Primary Industry Minister H.E. Mrs. Tersa Kok visited Ethiopia from October 1-4/2019 and met with H.E. Misganu Arega (ambassador), State Minister for the Ministry of Trade and Industry and other officials, and discussed how to strengthen the trade and investment between the two countries. The delegation has also commenced a seminar on palm oil with stockholders.

2. Ethio-Malaysian Economic Cooperation

2.1 Trade

Trade between the two countries is showing a progressive trend in recent years. In 2017 Ethiopia has imported products worth 340,705,770.51 USD and exported items worth 723,616.49 USD. Ethiopia exports leather and leather products, raw meat and vegetable products to Malaysia and imports sugar, cotton, fatty acid, vegetable oil, paper, and paper products, Medical equipment, soap, and Detergent.

2.2 Investment

Currently, there are six investors from Malaysia registered by the Ethiopian Investment Commission.

3. Lessons for Ethiopia from Malaysia’s strength

Import and Export licensing

Not all goods, whether imported or exported, require a license. However, having a robust understanding of Malaysia’s license schemes for imported and exported goods will save traders from being rejected by custom officials.

Malaysia uses privatized single digital window for all import and export regulations called DAGANG NET.

Since Ethiopia is on the way to privatize some State Owned Enterprises, modernizing the  Ethiopian Revenue and Customs Authority should be taken into consideration in order to provide quality service and investment attraction. Digital and one window service is also Malaysia’s best experience that Ethiopia could share.

4. Summary

Ethiopia is strengthening its diplomatic and economic relations with most of the Asian countries, but the overall relationship of Ethiopia and Malaysia are not at the desired level. The enhancement of the economic relationship between the two countries can play their own role in achieving Ethiopia’s Growth and Transformation Plan. Promoting Ethiopian export products to Malaysia, organizing the Business to Business (B2B) forum and sharing experiences, helps to strengthen the economic relations with Malaysia. 

Historical Background

The diplomatic relations between the two countries was established in 1966, during which Indonesia opened its Embassy in Addis Ababa, Ethiopia. The late Emperor Haile Selassie visited Indonesia again in 1974 and more recently our relationship has been flourishing.

The former Foreign Minister, Ato Seyoum Mesfin, visited Indonesia during the Asia-Africa Summit held in April 2005.

Agreement on Economic and Technical Cooperation between the two countries was signed in 2011 in New York by H.E. Hailemariam Desalegn, the then Deputy Prime Minister and Foreign Minister of FDRE and H.E. Dr. R. M Marty M. Natalegawa, Foreign Minister of the Republic of Indonesia.

Indonesian Foreign Minister H.E. Mrs. Retno L.P. Marsudi visited Ethiopia in January 2015 and signed a Memorandum of Understanding on the Establishment of a Bilateral Consultative Forum with her Ethiopian Counterpart the then Foreign Minister H.E. Dr. Tedros Adhanom.

Ethiopia established its mission in Jakarta in 2016 in order to strengthen its relations with Indonesia and ASEAN as well. Following the opening of the Embassy, the bilateral relations between the two countries have been further strengthened.

An Ethiopian delegation led by Director General of Asia and Oceania of the Ministry of Foreign Affairs has visited Indonesia to attend the Indonesia-Africa Forum held in Bali in April 2018. During this visit, based on the Bilateral Consultative Forum Agreement, Foreign Ministries of the two countries carried out their first political consultation meeting at the Director-General level.

At the bilateral consultative forum the two countries discussed ways and means to further promote bilateral ties, explored opportunities to enhance mutually beneficial cooperation and exchanged views on regional and international issues of common interest. On the sideline of the Forum, EAL signed operational agreements with Garuda, its Indonesian counterpart, based on the Air Service Agreement which was signed on 21 December 2017 between the two counties.

Ethiopia participated in the first Indonesia- Africa Forum which was held in April 2018 during which time it was announced that Ethiopian Airlines would commence flights to Indonesia in 2018. Eventually, EAL launched its inaugural flight to Jakarta on 21 July 2018.  Currently, EAL  is flying to Jakarta three times a week and it is working to further strengthen the relationship in tourism, investment, trade and people to people ties between the two countries.

H.E. Mr. Gedu Andargachew and H.E. Mrs. Retno L.P. Marsudi have signed  Letter of Intent on Cooperation in Peace Keeping Operations  between the two countries on 27 September 2019, on the sidelines of the 74 UN General Assembly in New York, United States of America

Lessons for Ethiopia from Indonesia’s Strengths

1. Democracy

Indonesia has experienced a remarkable transformation to a more participatory and more open government over the past two decades. It continues to make progress, state institutions still struggle to control endemic corruption, improve management of public services and protect citizen’s rights. Ethiopia and Indonesia have young democracies and, despite the differences in the government system in both countries, they can share experiences in building institutional democracy and human rights.

1. Industrial Sector

The industrial sector is the sector that currently contributes most to Indonesia’s annual GDP growth. The two most important sub-sectors of the industry are mining and manufacturing, both being major pillars of the nation’s economy since The 1970s, thus being engines of economic change and development. Infrastructure, transportation, and tourism have also a very important role in the country’s economy. There has to be more effort to attract Indonesian investors to invest in Ethiopia in the manufacturing sectors (especially, the pharmaceutical, agro-processing, and textile areas), infrastructure development such as railway and industrial, and tourism sectors. Ethiopia can also benefit from Indonesia’s experience in the industrial sector through technical assistance.

1. Trade and Investment

Trade and Investments in Indonesia is being expanded, driven by economic and social developments and population growth. Indonesia is working to become an attractive place for investment. It also set a strategy to boost its exports and reduce the import dependence through improving local manufacturing. In this respect, Ethiopia can draw significant experiences on how to boost export and substitute imports with domestic production.

Trade and Investment between the two Countries

Despite the growing relationship and political goodwill that exists between the two countries, the result achieved so far, both in trade and investment, has not corresponded with the potential that both countries have. Indonesia imports Ethiopia’s oil seeds, Soya bean and leather, among others, while Ethiopia imports automotive and edible oil, among other products. The trade volume of the two countries in 2017 was $293.3 million and the trade balance is in favor of Indonesia.

The number of Indonesian investors in Ethiopia is not also significant. There are six Indonesian investments in Ethiopia including a key Indonesian company, Tal Apparel, which has established a garment manufacturing in Hawassa Industrial Park. Other three Indonesian companies of instant noodles and soap are operating in Ethiopia. More has to be done to attract more Indonesian companies to invest in Ethiopia.

1. Historical Background

Ethiopia has longstanding relations with Thailand that dates back to the 1960s. Thailand opened an embassy in Addis Ababa in 1964. However, the embassy was closed due to the deterioration of the then political situation that prevailed in Ethiopia at that time. Since then, there was not organized follow up and employed effort to enable Thailand to open its embassy in Addis Ababa. Relations between Ethiopia and Thailand are now improving with the on-going efforts of the Ethiopian Embassy in New Delhi and the Thai Embassy in Nairobi which is accredited to Thailand and Ethiopia respectively.

A delegation led by the then State Minister for Foreign Affairs, Mr. Dewano Kedir paid a visit, from September 14 – 20, 2014, to The Kingdom of Thailand upon the invitation of the Thai Government. The two countries celebrated 50 years anniversary of the establishment of diplomatic ties in 2015. For this purpose, a Thai delegation led by Deputy Foreign Minister, Don Pramudiwinai visited Ethiopia in July 14, 2015.

A delegation led by Mrs. Suphatra Srimaitreephithak, Director-General of Thailand International Cooperation Agency (TICA) visited Ethiopia in May 2017. The DG met with officials of the Ministry of Foreign Affairs and Ministry of Agriculture and Natural Resources of Ethiopia and discussed the enhancement of bilateral relations.

In the past two years successive Director Generals of the Department of South East Asian, Middle East, and African Affairs, have visited Ethiopia and held discussions with the DG for Asia and Oceania of the MFA of Ethiopia. Mr. Krerkpan Roekchamnong has visited Ethiopia in June 2017. Mr. Jesda  Katavetin, Director General of the same Department visited in 2018. In both visits, the DGs were accompanied by TICA and business people wishing to see investment potentials in Ethiopia.

1.  Lessons to be taken from Thailand
2. Service  Sector

The service sector in Thailand accounts for 17 million jobs in Thailand or approximately 40 percent of the country’s labor force. It encompasses diverse industries such as tourism, retail, health, communications, transportation and many sought-after professions such as architects, engineers, lawyers, and doctors. Many people around the world especially from developing countries choose Thailand for medication and vacation. So, Ethiopia with its fast-growing economy, huge tourism attractions and growing demand for services could take considerable lessons from Thailand.

1. Industry and Manufacturing

Thailand is a newly industrialized country that is among those countries that are traditionally known as ‘Asian Tigers”. Its economy is heavily export-dependent, with exports accounting for more than two-thirds of its gross domestic product (GDP). In 2017, according to the IMF, Thailand had a GDP of amounted to the US $455 billion, which makes it the 8th largest economy of Asia and the second largest in South East Asia next to Indonesia. The country has huge experience in manufacturing in the areas of textile and agro-processing. Ethiopia is building Industry Parks which are currently attracting international investors. In this regard, approaching Thailand for experience in Industry Park Development and bring investors should be given due attention. 

2. Business and Economic Cooperation between Ethiopia and Thailand
3. Development Cooperation

Thailand provides scholarships and training opportunities up to 50 Ethiopians annually, through the International Cooperation Agency of Thailand (TICA). Based on needs and requests, Thailand could provide more training and educational programs for Ethiopia. Areas such as textile, leather, sugar production, electronics, and the tourism sector are among those where Ethiopia can learn a lot from Thailand. If continued and coordinated efforts are made the country also could be a source of finance in the form of loan and credit (Laos and Haiti are among the beneficiaries). According to Thailand’s Foreign Affairs Ministry, the country is highly committed to enhancing its ties with African countries, so as the seat of AU; Ethiopia could be an important bridge for this effort.

1. Investment

Thai investors who are working in Ethiopia are very few.  Some companies are in the process of investing in the hospitality and health sectors. Among these, a company called Dusit Thani is working with a local real estate developer to build Ethiopia’s biggest resort located in Legadadi, Oromia region with USD 150 million. Charoen Pokphand seed works in the areas of Agriculture, and forestry and Phantagid Specialized Restaurant PLC engaged in hotels and hospitality.

1.  Trade

In 2017 Ethiopia has exported products worth USD 4.2 million and imported items amounted to about USD190 million. This implies there is a huge trade imbalance between the countries where Ethiopia has big homework to balance this negative trade balance. Ethiopia’s exports to Thailand are primary agricultural goods while importing pharmaceuticals and electronics. Thailand has a potential market destination for Ethiopian products with its 68 million populations.

3. Summary

With no doubt, there are huge potentials that the two countries can cooperate for the benefit of their people. Investment, trade, and tourism are the prime areas for strengthening the relationship. Thailand with an economy amounted GDP of US $455 billion, can be an ideal source of investment. Visits by higher officials and opening embassies in each other’s capital would be the best way forward so as to boost the existing relationship.  

1. Historical Background

Ethiopia and Singapore have had contacts that date back to the 1930s. This was when Ethiopian trade ships were traveling to the South East Asian Countries. The diplomatic relations between Ethiopia and Singapore began in the 1960s through an exchange of visits between the former Ethiopian Emperor Hailesellasie and the former Prime Minister of Singapore, H.E. Mr. Lee Kuan Yew. Since then there have been several exchanges of visits by officials at different levels. Ethiopia covers Singapore from Ethiopia’s Embassy in Jakarta-Indonesia while Singapore is represented by an Ambassador that resides in Singapore. Ethiopia also has an honorary consul in Singapore. Singapore is an active member of ASEAN (Association of Southeast Asian Countries).

Senior State Minister for Trade and Industry and National Development of Singapore, H.E. Mr. Lee Yi Shan also visited Ethiopia and met with senior officials, in December 2013.

A high level a delegation from Ministry of Industry paid a working visit to Singapore in January 2013 and inaugurated a direct Ethiopian Airlines flight to Singapore.

The International Enterprise Singapore (IE Singapore) in collaboration with Singapore Business Federation visited Ethiopia in 2014.

The relations of the two countries have shown relative developments in recent years which has been cemented by visits of officials from the two countries. H.E. Dr. Tedros Adhanom, former Minister of Foreign Affairs of the FDRE, visited Singapore in August 2016 to attend the Singapore–Sub-Saharan Africa Ministerial Exchange Visit Program and Africa-Singapore Business Forum. Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income The agreement is signed between the two countries during the visit.

Singapore Deputy Prime Minister H.E Teo Chee Hean visited Ethiopia in May 2017. On the other hand, H.E Demeke Mokonen, Deputy Prime Minister of the Federal Democratic Republic of Ethiopia, visited Singapore from June 1-8/2017 and met with various government authorities and leaders of companies and institutions.

 Ethio-Singapore Business Forum also held on June 2/2017, where about 80 companies and 146 participants attended the forum. Memorandum of Understanding has been signed to work in cooperation in the areas of Industrial Park Development and Cultural exchange.

The country is one of the newly industrialized economies and part of the “Asian Tigers” which includes South Korea, Taiwan, and Hong Kong. Establishing a very strong tie with Singapore would bring tremendous lessons of development. Ethiopian Airline’s flight to Singapore could be one of the catalysts to boost relations. Exchanging high-level visits by each side should be the top priority so as to exploit the huge trade and investment interactions of the two countries.

2. Economic and Business Cooperation Between the two countries
3. Economic and Trade Ties

Trade cooperation between the two countries is showing a positive trend. In recent years, there is an increased demand in Singapore the market for Ethiopia’s high value agricultural products such as oilseeds, oleaginous fruits, sesame seeds, coffee, white pea beans, dried lentils, etc.

Despite the excellent relationship and political goodwill prevailing between the two countries, the result achieved so far, both in trade and investment, has not corresponded with the potential. The bilateral exchanges between Ethiopia and Singapore have increased in the last years, with visits on both sides to explore potential areas for cooperation. The trade volume of the two countries in 2014 was $8.8 million. In 2017 Ethiopia has exported products worth of USD 12 million and imported items amounted about USD 20 million.

1. Investment

Singapore could be an important source of investors to Ethiopia. In this connection, organized investment promotion should be employed so as to attract potential investors from the country. Some key Singapore Companies already in Ethiopia are Food Empire Holding, Comcraft and Olam International.

1. Tourism

Singapore has a population of 5.6 million. With this small population, the country is one of the most visited countries in the world with about 13 to 14 million tourists annually. The Travel and Tourism Competitiveness Report

3. Lessons to be taken from Singapore
4. Financial Hub and Effective Commerce Management

A vibrant city-state located in the heart of Asia, Singapore offers global investors unparalleled access to global markets. Strategically located to serve Asia Pacific, one of the world’s fastest-growing regions, Singapore’s well-established business infrastructure, global connectivity, and trade linkages enable investors to access the approximately 4 billion strong Asian markets. State-led and development-driven approach to financial sector development has helped Singapore to be a regional and global financial hub.

Strong Industry and Private Sector

Singapore is among the successful countries in attracting global investors and industries. Since the country’s independence in 1965, manufacturing continues to be a key industry for Singapore. Electronics manufacturing, in particular, has been the cornerstone of the economy for more than forty years. In the past decade, digital technologies manufacturing has been the thriving industry for Singapore.

2017 ranks Singapore 13th out of 136 countries overall, which was the third-best in Asia only behind Japan. Ethiopia with its natural and historical tourist destinations, the experience from Singapore in the sector is very crucial. The country’s medical tourism and culinary tourism industries have also become quite marketable.

1. Technical Cooperation

The government of Singapore provides experiences of its rapid and successful economic development journey by the way of benchmarking and visits through the umbrella of the Singapore Cooperation Programme (SCP). Many Ethiopian civil servants obtained technical assistance and training through Singapore Cooperation Program Training Award. The main fields of training includes communication and transport, economic development and trade promotion, environment, healthcare, and humanitarian assistance, information technology, library management, management, and productivity, public administration and law, public utilities, tourism, and urban development. Ethiopia has benefited from these short term training programs.

Historical Background

Ethiopia and Bangladesh established diplomatic relations in 1975. Since then, the relationship between the two countries has been growing.  Bangladesh opened its Embassy in Addis Ababa in March 2016. , Ethiopian Embassy in New Delhi is the one accredited to Bangladesh. To further strengthen the bilateral relations between the two countries, Ethiopia has appointed an honorary consulate in Bangladesh.

A Bangladeshi delegation led by a Parliament member honorable Mr. Al-Haji Emdaul Haque Bhuina visited Ethiopia from December 14-16/1999 and met with the then Speaker of the House of Peoples Representative, State Minister of Agriculture, Ethiopian Coffee and Tea Development Authority, Ethiopian Coffee Exporters Association chairperson and Ethiopian Chamber of Commerce and Sectoral Association, discussed how to strengthen the trade relationship between the two countries.

In addition, a Bangladeshi delegation led by H.E. Mr.A.S.M Abdur. Rob, Minister for Bangladesh Livestock and Fishery visited Ethiopia from March 7-12/2001 and met with officials of International Livestock Research Institute, Ethiopian Institute of Agricultural Research and Ethiopian Institute of Agricultural Research and dairy development enterprises, discussed on how to further, cooperate in the aforementioned sectors.

Current Relations

Political

Recently Ethiopian delegation led by H E Ambassador  Mahlet -Hailu Permanent Secretary of Europe, America, Asia, and Multilateral Affairs  visited Bangladesh from  November 25-28 /2019 and signed  an  ‘MoU on Political Consultations between Bangladesh & Ethiopia’

Trade

 Export (by Bangladesh) Volume– approx. USD 750,000 for2017-18;

 Import (by Bangladesh) Volume – approx. USD 150,000 for 2017-18

The main export items of Bangladeshi to Ethiopia; include Pharmaceutical products – Plastic Products – Plastic goods’; Raw Jute & Jute products-;  Fashion clothing etc  

Investment

Investment is one of the areas where the two countries are working together with a few Bangladeshi companies already invested in Ethiopia, the biggest of which is the DBL group (in Mekele); nearly 18 companies have lined up to invest or started operating in the Industrial Parks located at different areas of the country. However, there are opportunities to invest more, particularly, in the backward linkage industries of RMG sector;  Leather Processing & Leather Products;  Dairy ;  Poultry;  Fishing;  Packaging;  Hotel & Resort; Restaurant;

Lessons for Ethiopia  from the Economic and Social Development of Bangladesh

• Technology and innovation:  Bangladesh and Ethiopia may cooperate in the Technical and IT sector for mutual benefits; Bangladesh may share its innovations and creative solutions to Ethiopia; Like other African countries, Bangladeshi experts may come to develop the IT sector and IT-based services in different sectors in Ethiopia;
• Garment Industry: Bangladesh is known for its Readymade Garment (RMG) industry. For instance, in 2015, the country exports RMG worth USD 26 billion. The sector covers 14% of the country’s GDP and 80% of its export value.
• Pharmaceuticals: Bangladesh has developed advanced experience in the pharmaceutical sector. The country earned close to USD 2 billion from exporting pharmaceutical products in 2016. The country also covers 97% of its demand for pharmaceuticals from local production and saves large amount of foreign currency. The sector showed a 25.5% growth for the last 7 years.
• Fishery and fish production: Bangladesh has better experience in fishery production. The country ranked third in the world on fishery production, next to China and India. The sector covers 23% of the GDP of its agricultural production.
• Social and Human Development:  Bangladesh achieved significant progress in human development through universal free education, rural health program, and poverty alleviation.  Three of the world’s biggest NGOs are of Bangladeshi origin. World’s Number-1 NGO, BRAC has 110-million clients. They are operating not only in Bangladesh but also globally including many countries in Africa.  

Historical Background

The relationship between Ethiopia and Kazakhstan was established in September 2011. The two countries have maintained friendly and cordial relations. 

Kazakhstan opened its Embassy in Addis Ababa in March 2011 and Ethiopia’s official diplomatic relations with Kazakhstan started with the appointment of a non- resident Ambassador in Ankara, Turkey in June 2012. 

The new Ambassador of Kazakhstan was the Deputy Permanent Representative in New York and he was appointed as Ambassador to Pakistan after his diplomatic service in New York. The Ambassador had visited Ethiopia in September 2013 as the Special Envoy of his country in relation to Kazakhstan’s bid for membership of the United Nations Security Council. He met with the then Foreign Minister Dr. Tedros Adhanom Gebreyesus and exchanged views on strengthening bilateral relations. 

This was followed by the visit of the then Foreign Minister of Kazakhstan Irlan Idrissov to Ethiopia in December 2013. The Minister met and held discussions with High-level officials of our government and addressed the Permanent Representatives Committee of the African Union on Kazakhstan’s Africa policy.

 We have an MoU on Bilateral Political Consultation that was signed in September 2016 at the sidelines of the 71^st UNGA Summit.  We are also working on draft agreements to cooperate with Kazakhstan in the fields of trade, culture and tourism and education where Kazakh showed interest to cooperate as well.

During the 70th session of the UN General Assembly, UNDP and the government of Kazakhstan launched a new program known as the Africa–Kazakhstan Partnership for the SDGs to help 45 African countries implement the newly-inaugurated Sustainable Development Goals (SDGs). $2 million is allocated to the program for technical support to ministries of foreign affairs and other relevant institutions in these countries.

There are good opportunities for further strengthening and enhancing relations between the two countries in the political field, as well as in cultural and economic spheres. Kazakhstan and Ethiopia has good potential for expanding bilateral cooperation in mining, agriculture, infrastructure, trade, and education. Encourage the Kazakhstan side to enhance the economic relations between the two countries especially in trade, investment, and also to cooperate on education and tourism.

Bilaterally we can cooperate in the fields of Education (scholarship), Agriculture (textile and cotton), mining, food, and agro-processing, Infrastructure and construction sector, trade and tourism.

Historical Background

Ethiopia’s bilateral relations with Pakistan dates back to 1958. Pakistan opened its Embassy in Addis Ababa in 1973. The relationship between the two countries slowed down during the Derg regime because Pakistan supported Eritrea’s independence. Ethiopian Embassy in Jakarta is the one accredited to Pakistan. To further strengthen the bilateral relations between the two countries, Ethiopia has appointed an honorary consulate in Karachi. Pakistan has supported Ethiopia during its candidacy for the non-permanent seat at the UNSC.

In 1973 former Pakistan’s President H.E. Mr. Zulfiqar Ali Bhutto had visited Ethiopia. In addition, in 2017 Pakistan’s President had a sideline meeting with former Prime Minister of Ethiopia, H.E. Mr. Hailemariam Dessalegn during the Belt and Road Initiative Forum held in Beijing. Holding bilateral consultations and establishment of a Joint Ministerial Commission, and easing the visa processes were the major topics of discussion during the meeting. The Pakistani President has requested the opening of the Ethiopian mission in Islamabad as well.

Economic Relations

1. Trade

Trade between the two countries favors Pakistan. In 2017 Ethiopia has imported a value of 34,802,459.41 USD products from Pakistan while exporting a value of 27,468,099.57 USD products to Pakistan (Ethiopian Revenues and Customs Authority). Coffee, tea, dried vegetables, cotton, and grains are the major export items while sugar products, rice, and packaging sacks are the major import items.

In January 2017, the Pakistan government banned the import of red kidney beans from Ethiopia due to lower quality standards, which significantly impacted Ethiopia’s export revenue from Pakistan. Currently, both governments are working to bring the trade relation of the two countries to where it was.

1. Investment

Between the years 1992-2018, a total of 69 projects have been registered, out of which 34 of them have started operation with 565.16 million birr investment and 2491 permanent and 1256 temporary job creation. The investment projects are in real estate, manufacturing, construction (level one), consultancy, health and mining sectors.

1. Tourism

In relation to tourism, in 2017 Ethiopia has hosted 2,320 tourists from Pakistan (Ministry of Culture and Tourism).

Technical cooperation

Pakistan is also known for its technical cooperation and capacity-building support to Ethiopia. It provides short term training scholarships in different fields. The diplomatic training that is provided by Pakistan’s Foreign Relations Academy every year can be a case in point. Moreover, Pakistan has proposed to provide training in banking, railway and postal sectors to Ethiopian professionals in the field (May 2017 meeting between the Prime Ministers of the two countries).

Agreements in progress between Pakistan and Ethiopia

Not a single agreement was signed between Pakistan and Ethiopia, though there have been a number of agreements in progress. These are:-

• Avoidance of Double Taxation
• Visa Waiver for Diplomatic and Official Passport Holders
• Cooperation on Science and Technology
• MOUon Bilateral Consultation
• Joint Ministerial Commission (JMC)

Historical Background

Ethiopia’s friendship with Australia dates back to 1965. At the beginning of the relationship Australian Embassy in Nairobi was accredited to Ethiopia and the Ethiopian Embassy in Tokyo was accredited to Australia. Then Australia opened its Embassy in Addis Ababa in 1984 which was later closed after three years.

In 2011, Australia re-opened its embassy in Addis Ababa and Ethiopia had honorary consulate in Melbourne until the Ethiopian Embassy in Canberra was opened in 2013, which became an important gateway to the significant number of Ethiopian Diaspora in Australia.

Higher official visits have been dominated by the Australian side. Australian Foreign Ministers have paid a visit to Ethiopia in different occasions: in 1993 (H.E. Gareth Evans), 2009 (H.E. Stephen Smith), 2012 (Hon. Bob Carr) and in 2013 (Kevin Rudd). Moreover, the Australian Governor-General Hon. Ms. Quentine Bryce, Ac paid a visit to Ethiopia country during March 26-28/ 2009 and the visit made by Mr. Andrew Collins, assistant secretary of the African Branch at the Department of Foreign Affairs and Trade in November 2019 is the most recent one.  From Ethiopian side in 1999 delegation from House of people’s representative and the house of Federation, in 2013 officials from Ministry of education and Ministry of Mines. Besides, Parliamentary delegation exchanges have taken place in 1996 by the Australian side and in 2016 by the Ethiopian side. 

Bilateral Relations

The two countries have similar stances on several multilateral issues such as international security and climate change. Moreover, Australia has supported Ethiopia’s candidacy for the non-permanent seat at the United Nations Security Council.

Economic relations between Ethiopia and Australia

1. Trade

In 2017 Ethiopia has imported value of 19,365,821.53 USD products from Australia while exporting a value of 22,637,827.69 USD products to Australia. Coffee, flowers, textiles, fruits, beer, grains, and bags are the major export items while different kinds of tubes, wood, electric machinery, and spare parts, food processing machinery and telecommunication equipment are the major import items. All in all, the trade relationship between the two countries is increasing from time to time and the trade balance favors Ethiopia.

1. Investment

Between the years 1992-2017 about 35 Australian projects have been registered, whereby 10 of them started operation, invested 123.3 million birrs and created permanent job opportunities for 76 people and temporary job opportunities for 431 people. The investment projects are on real estate, agriculture, consultancy, health, and mining.

A mining company called Kefi Minerals which is a joint venture among UK and Australian investors with the government of Ethiopia is the largest Australian investment in our country; and is expected to start operation soon. The company is expected to create employment opportunities for 1000 people and be an exemplary mining project for investors in the sector, particularly from Australia. 

On 27 November 2017 Ethio- Australia/New Zealand Business Forum was held in Addis Ababa where 27 Australia/New Zealand companies working on different sectors such as manufacturing, agriculture and tourism were a part of. The business the delegation met with Ethiopian private sectors and discussed potential partnership areas.

1. Tourism

Despite the fact that Australia is a country that has a significant potential for tourist outflow, the number of tourists from Australia to Ethiopia is not that significant. Making the situation worse, the travel advisory the Australian government has been publishing on Ethiopia particularly after the declaration of the state of emergency has hurt the tourist flow from Australia to Ethiopia.  In 2017, Ethiopia has hosted 8,353 Australian tourists (Ministry of Culture and Tourism).

Social and Cultural Relations

1. Education and Training

Australian universities are known for their quality education. Our embassy in Canberra has been working on twining Australian and Ethiopian universities.  Also, Addis Ababa University is a member of the Australia-Africa Universities Network. Therefore, education is an area by which it has not been fully utilized between the bilateral cooperation between the two countries. Moreover, Australia provided scholarships and training for Ethiopian students and professionals. According to the Embassy in Addis Ababa, since 2011, 171 Ethiopians have been supported through the Australia Awards program. Key sectors include agriculture, education, environment, governance, health, mining, water, and sanitation. In 2015-17, twelve short-term awards were offered to Ethiopians.

1. Humanitarian Support

 Australia supports humanitarian operations globally through agencies including the World Food Program, International Committee of the Red Cross, the UNHCR, and UNOCHA.

Additionally, through the Australia NGO Cooperation Program (ANCP), Australia contributed a total of $2.46m in 2016-17. Australian NGOs are currently implementing 15 community projects focused on food security, disability, child protection, education, health, WASH, and early childhood development.

Addis Ababa Fistula Hospital, which was founded by an Australian obstetrician and gynecologist called Elinor Catherine Hamlin and her husband, Dr. Reginald Hamlin who is a New Zealander is one of the organizations with Australian descent working in our country. It is the world’s only medical Center dedicated exclusively to providing free obstetric fistula repair surgery to poor women suffering from childbirth injuries. The couple has also co-founded an associated non-profit organization, Hamlin Fistula Ethiopia.  

In addition, in 2017-18, twelve small scale projects totaling AUD 502,000 were supported under the Direct Aid Program (DAP) in Ethiopia.

  Agreements Signed between Ethiopia and Australia

MOU on Air service has been signed in December 2013.  To this, the Australian Government has been repeatedly requesting for Ethiopian Airlines to have a direct flight to Australia. Taking into consideration the number of Ethiopian Diaspora in the country, the tourist and investment flow we are aiming to increase and strengthening of the trade relationship between the two countries, having a direct flight will have significant returns.

Additionally, MOU on Development Cooperation and Bilateral Cooperation Agreement has been signed in May 2012 and January 2013, respectively. 

Historical Background

Ethiopia’s friendship with New Zealand dates back to the year 1937. As a member of the League of Nations, New Zealand expressed its support to Ethiopia against the invasion of Fascist Italy.

New Zealand opened its Embassy in Addis Ababa in June 2013, and the official inauguration of the new Embassy was attended by H.E. Sir Jeremiah Mateparae, Governor-General of New Zealand, who was on an official visit to Ethiopia on May 21/2014. It is the third diplomatic mission in the African continent besides Cairo and Pretoria. The Ethiopian Embassy in Canberra is also accredited to New Zealand.

A number of high-level official visits have been made to Ethiopia by the New Zealand side. The Special Envoy of the Prime Minister of New Zealand, Sir Jim McLay (November 8/2013), The Governor-General of New Zealand, H.E. Sir Jeremiah Mateparae (May 21/2014), Foreign Minister of New Zealand (July 23/2013 and on January 28/2014), the parliamentary under-secretary for foreign affairs H.E Mr. Fletcher Tabuteau (September 9, 2019) were among the New Zealand high officials who visited Ethiopia. There is a scheduled visit by the delegation from Ethiopian House of People’s Representatives to New Zealand in 2019. On the other hand, there are few official visits by the Ethiopian side which in recent times included a team of technical experts comprised from Ministry of Livestock and Fishery of the FDRE, who had paid a visit to New Zealand in June 2017.  

Bilateral Relations

Economic relations between Ethiopia and New Zealand

1. Trade

In 2017 Ethiopia imported value of 4,883,150.53 USD products from New Zealand while exported a value of 4,099,839.13 USD products to New Zealand (Ethiopian Revenues and Customs Authority). Coffee was the major export item while dairy products, metal products, and apple were the major import items. 

1. Investment

In relation to investment, there are only two registered New Zealand investment projects in Ethiopia (1 joint-venture). The company that is engaged in vegetable farming has invested 1.5 million birrs and created job opportunities for 75 people. The other company is called Fonterra, which works on agro-processing.

 Ethio-New Zealand/Australia Business forum was held in Addis Ababa on 27 November 2017 in which more than 27 companies of New Zealand and Australia had taken part. The companies work in different sectors including manufacturing, agriculture, tourism, and infrastructure. The Business delegation had discussions with members of the Ethiopian private sector during the forum.

1. Tourism

With respect to tourism in 2017, Ethiopia has hosted 1267 tourists from New Zealand (Ministry of Culture and Tourism).In terms of bilateral relations between Ethiopia and New Zealand, New Zealand has always been keen to deliver humanitarian and development assistance to Ethiopia, mainly in the area of food security.

 Agreements Signed between Ethiopia and New Zealand

Ethiopia and New Zealand have signed a bilateral agreement on Agriculture and Food Security on 27^th January 2014. Accordingly, a food security payment was conducted in collaboration with Clinton Health Access Initiative, 10 million US dollar was allocated to reduce malnutrition (children and mothers), help farmers to improve production methods and post-harvest systems, as well as increase their incomes.

The two countries have initialed an Air Service agreement that has not yet become operational. The New Zealand Government, on the occasion of the 70th UNGA (September 2015) joined the Bill and Melinda Gates Foundation and the Global Good Fund and signed Memorandum of Understanding to support dairy development in Ethiopia. Through the smallholder dairy development program, it has planned to support dairy farmers in production and marketing. This project has not been made operational as the Bill and Melinda Gates Foundation could not conduct the need assessment study due to last year’s The State of Emergency in our country.

The New Zealand Government has partnered with the African Union Commission (AUC) on 28 June 2017 to design and establish the New Zealand-Africa Geothermal Facility (NZ-AGF) to provide geothermal technical assistance and capacity building training for geothermal energy developments in Eastern and Southern Africa. It includes eligible countries of the Geothermal Risk Mitigation Facility (GRMF) funding, namely Ethiopia, Kenya, Rwanda, Tanzania, Zambia, Uganda, Eritrea, Djibouti, Comoros, Burundi, and DRC with the possibility to expand it to all members of the African Union in the future.

With New Zealand’s geothermal industry known internationally for providing high quality geothermal technical expertise for over 60 years, the overall goal of the NZ-AGF is to expand access to affordable, reliable and clean energy in East African nations from geothermal energy resources. The New Zealand Ministry of Foreign Affairs and Trade will provide up to NZD 10.2 million ($7.5m) under the New Zealand Development Program  for the Facility that will mobilize and make available to African countries the breadth of New Zealand geothermal expertise relevant to country priority needs.

Potential areas of cooperation with New Zealand

New Zealand is known for its development in the dairy industry and has a similar stance with Ethiopia with respect to Climate Change and Peace and Security. Therefore, these can be common cooperation areas between the two countries. In addition, New Zealand, having modern agriculture, Meat and Dairy product industries, working for the investment flow from New Zealand through our mission in Canberra in these sectors will be gainful to Ethiopia.

1.  Background

Ethiopia and the Philippines established diplomatic relations in 1977. However, diplomatic relations were not strong during the military regime due to ideological differences. It is estimated that there are approximately 850 Filipinos working and living in Ethiopia, mostly professionals in the fields of education, industry, and services. Currently, Ethiopia covers the Philippines from Seoul while the Philippines is accredited to Ethiopia from Cairo. Ethiopia has also opened its honorary consulate in the Philippines in June 2015. On the other hand, the Philippines is currently in the process of establishing an honorary consulate in Addis Ababa to service the needs of the Filipinos here.

2. Bilateral Relations

The two countries have signed three agreements namely an Air Services Agreement signed in October 2014 which paved the way for Ethiopian Airlines to fly to Manila. In October 2016, a Memorandum of Understanding on Bilateral Consultation Mechanism between the Ministries of Foreign Affairs of the two countries was signed during the visit of Dr. Tedros Adhanom, former Minister of Foreign Affairs of Ethiopia, to the Philippines. Memorandum of Understanding between the Philippine Chamber of Commerce and Industry (PCCI) and the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) have also signed in May 2018.

Ethiopia and the Philippines held their first political consultative meeting on 22 November 2019 in Addis Ababa. It hoped that the political consultative meeting would enhance bilateral relations and step the political, economic and diplomatic relations between the two countries. The discussion on the ways to continue to strengthen the relations between the two countries in the areas of education, culture, and tourism, as well as capacity building and technology transfer, were also some of the focus points of the consultative meeting.

3. Trade and Investment between the two Countries

The trade and investment between the two countries is not significant. Ethiopia imports machinery, electronic products, steel, metal, garments, and medicaments from the Philippines, while it exports leather and leather products, and kidney beans. The trade volume of the two countries in 2017 was $9.2 and the trade balance is in favor of the Philippines with a value of    $8.6 million.

There are also no Philippine investment in Ethiopia except for an Assembling & Body manufacturing of three-wheel motorcycle and Vehicle Company jointly owned by Ethiopia, India and the Philippines at the operational level. More has to be done to attract more Philippine companies to invest in Ethiopia.

Though the two countries have a long history of diplomatic relations, their economic ties in trade, investment, and tourism is very low. Companies in the Philippines should be encouraged to invest in Ethiopia. The Philippines’ experiences in manufacturing, information technology, trade, tourism, education and health as well as support for migrant workers could be taken as a sphere of cooperation from which significant lesson can be drawn. In relation to this, based on the Memorandum of Understanding (MoU) on Bilateral Consultation Mechanism signed between the Ministries of Foreign Affairs of the two countries, it is important to begin the political consultation to exchange views on bilateral and international affairs of mutual interest and advance common agendas between them.

Historical Background

In the 15th century, many soldiers from the northern part of Ethiopia traveled to Sri Lanka as part of the Portuguese military force. In relation to this movement, it is believed that there are people in the western part of Sri Lanka in a place called Puttalam, whose origin is from Ethiopia.

In recent times, Emperor Haile Selassie brought many teachers from Sri Lanka in the 1960s, however, many returned back to Sri Lanka after the Derge regime came to power in Ethiopia.

Following the establishment of the Non-Aligned Movement (NAM) in 1960, Ethiopia and Sri Lanka support each other in certain international issues of common interest. Consequently,  Ethiopia and Sri-Lanka established diplomatic relations in 1972.

Sri Lanka was one of the countries which immediately recognize the EPRDF government when it came to power in 1991.

Current Bilateral Relations between Ethiopia and Sri Lanka

A Special Envoy of the President of Sri Lanka visited Ethiopia in 2013 and held discussions with Ethiopian officials, on ways to boost the political and economic relationship between the two countries. The government of Sri Lanka opened its Embassy in Addis Ababa in October 2016. The former Foreign Minister of Sri Lanka, H.E. Mr. Mangala Samaraweera, made official visit to Ethiopia in February 2017 and held bilateral discussions with former Foreign Minister H.E. Dr. Workneh Gebeyehu, and, the former Speaker of the House of People’s Representatives, H.E. Mr. Abadula Gemeda. The Minister also inaugurated the official opening of the Embassy of Sri Lanka in Addis Ababa. At this time, two agreements, namely Establishment of Joint Commission and Memorandum of Understanding on Diplomatic Consultations was signed between the two countries.

The trade between the two countries is very low, but the volume shows improvement over time. The volume increased from USD 2.2 million in 2015 to USD 8.06 million in 2017.  The trade balance is in favor of Sri Lanka.

 Regarding FDI from Sri Lanka, there are a total of 5 Sri Lankan Companies operating in Ethiopia, both in a joint venture and fully operated by Sri Lankan citizens. The major investment area is apparel manufacturing.

Lessons for Ethiopia from the Strength of Sri Lanka

• Developed Agro-Industry: Sri Lanka highly benefits from the exports of the products of agro-industries. The tea industry is highly developed in Sri Lanka. In 2014 Sri Lanka exported a value of 1.63 billion USD tea across different countries.
• Export Processing Zones/EPZ (Industrial Parks): Sri Lanka build EPZ with the aim to attract foreign investment. There are about 12 EPZ in Sri Lanka with a one-stop service.
• Textile and Garment: Sri Lanka has a developed textile and garment industry. The sector covers 45% of the share of export. In 2016, the country earned USD 4.8 billion from the sector.