Addis Ababa, March 13, 2025 (FMC) – Ethiopia and Israel have reached an agreement to strengthen economic ties by establishing mechanisms for deeper engagement, facilitating business linkages, and exploring new avenues for collaboration, paving the way for enhanced bilateral trade and investment opportunities.
Strengthening bilateral ties through multifaceted domains was the extensively discussed during a meeting between Ethiopian Foreign Minister, Mr. Gedion Timothewos, and Minister of Economy and Industry of the State of Israel, Nir Barkat.
The two ministers highlighted the significance of deepening economic cooperation, trade, and investment between the two countries.
The meeting underscored Ethiopia’s ongoing economic reforms and highlighted key investment opportunities, particularly in innovation-driven sectors such as technology, agriculture, water management, renewable energy, and manufacturing. Both ministers reaffirmed their commitment to strengthening economic ties and fostering mutually beneficial partnerships between Ethiopian and Israeli businesses.
The Ethiopian Foreign Minister briefed the Israeli side on Ethiopia’s efforts to improve the business climate and attract foreign participation. He highlighted the Homegrown Economic Reform Agenda, which sets multi-sectoral growth drivers, a significant shift from the previous single-sector-led development strategy. He also noted the establishment of Ethiopian Investment Holdings (EIH) as Ethiopia’s sovereign investment arm, playing a strategic role in advancing economic transformation.
Minister Barkat, in turn, introduced Israel’s successful model of competitive economic clusters, highlighting key sectors such as agri-food technology, high-tech industries, life sciences, healthcare, and advanced manufacturing. He expressed Israel’s readiness to engage with Ethiopia in areas of mutual interest and emphasized the potential for Israeli enterprises to contribute to Ethiopia’s economic development.
The discussions concluded with both sides agreeing to establish mechanisms for deeper economic engagement, facilitate business linkages, and explore new avenues for collaboration. Both ministers expressed optimism about forging impactful partnerships that drive sustainable growth, knowledge transfer, and shared prosperity, as reported by MFA Ethiopia.