ADDIS ABABA — Ethiopia and China are experiencing significant growth in their trade and investment relations, as announced by Investment Commission Commissioner Hanna Arayaselassie during the 2nd Ethio-China Friendship Cooperation Forum in Addis Ababa. The forum also saw the signing of a Memorandum of Understanding (MoU) to support Ethiopia’s industrialization through the ‘Light Up Villages Program.’

According to Ethiopian News Agency, over the past five years, Ethiopia has emerged as a favored destination for foreign investors, particularly from China. The nation’s achievements in attracting foreign direct investment (FDI) are a testament to its robust economic policies and ongoing efforts to build a resilient economy. The Ethio-China Friendship Cooperation Forum has played a pivotal role in this area, enhancing bilateral trade and investment.

The collaboration has led to an increase in Chinese investments across various sectors of Ethiopia’s economy, including ICT, agro-processing, and manufacturing. State Minister of Water and Energy, Sultan Woli, highlighted the country’s abundant natural resources and the government’s focus on expanding investment infrastructure, such as industrial parks that are attracting more foreign investors.

Mekbib Mengesha, a representative of the Foreign Affairs Ministry, noted Ethiopia’s active participation in the Belt and Road Initiative, which has further aligned it with China’s global investment strategies. Additionally, Betty Xu, Chairperson of the Ethio-China Friendship Cooperation Committee, underscored the importance of the ‘Light Up Villages Program’ in aiding Ethiopia’s industrialization and improving electricity access in rural areas, thus addressing foreign currency shortages.