Russian investments vital to underpin Ethiopia’s dev’t with knowledge, technology transfer – ECCSA

Addis Ababa, July 18, 2023 (FBC) – President of Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA), Melaku Ezezew stressed the need to attract more Russian businesses to Ethiopia, citing the burgeoning investment opportunities in the country as a favorable condition to boost trade and economic ties between the two countries.

In an exclusive interview with Fana Broadcasting Corporate (FBC), Melaku stated “Russia is advancing in science and technology and employing these cutting-edge inputs in its economic activities. On the other side, Ethiopia, as a country with affordable and productive workforce and immense natural resources is becoming a chosen investment destination following the ongoing economic reforms and incentives put in place by the government to attract FDI,” Melaku said.

“Inflow of Russian businesses to Ethiopia would help underpin nation’s socio-economic development and turbocharge economic growth through knowledge and technology transfer thereby accelerating its journey towards prosperity,” he said.

He also called on the Russian government and business communities side to add impetus to their ongoing efforts to explore the growing investment opportunities in Ethiopia and take further steps to tap the potentials particularly in the agriculture, mining, energy sectors.

Melaku stressed the need to organize constant consultations between Russian and Ethiopia business communities and enhance people to people and cultural ties between the two countries in order to consolidate efforts towards a better trade and economic relationship, pledging Chamber’s commitment to play a constructive role to this end.

Melaku highlighted the significance of the upcoming Russia-Africa Economic and Humanitarian Forum in strengthening economic, cultural and humanitarian cooperation between Russia and Ethiopia and Russia and Africa at large.

The government of Ethiopia has revised legal documents, offered tax incentives, built several industrial parks, established free trade zones, and increased capacity in the power sector to attract Foreign Direct Investment.

These measures have created a favorable investment climate and encouraged foreign investors, including those from Russia, to explore opportunities in the country.

Meanwhile, Russian investors have shown a growing interest in investing in Ethiopia across various sectors such as energy, agriculture, manufacturing, and infrastructure development.

This interest can be attributed to factors such as Ethiopia’s strategic location, ample natural resources in the country as well as economic reforms carried out by the government to attract foreign investments.

Growing Russia’s engagement in Ethiopia’s economy reflects the growing economic ties between the two countries and their mutual interest in fostering bilateral cooperation, Melaku underscored.

Among others, in 2018, Russia’s state-owned company Rusagro announced plans to invest in the construction of an agricultural industrial park in Ethiopia, and in 2019, Russia’s state-owned company Rostec announced plans to invest in expansion of industrial zones in Ethiopia.

In June of last year, Coordinating Committee for Economic Cooperation with Africa (AFROCOM), in collaboration with the Russian Chamber of Commerce and Industry held a business discussion with Chambers of Commerce of Ethiopia and Djibouti in Moscow

Chairman of AFROCOM recently announced that Russia has finalized preparations to open a Trade Mission in Addis Ababa as part of its move to cement economic cooperation with Ethiopia. AFROCOM opened its fourth African office in Addis Ababa last year.

Ethiopian Chamber of Commerce and Sectoral Associations is working to enhance and create enabling trade and investment climate in Ethiopia.

By Wondesen Aregahegn