By: Kassahun Chanie
The Ethiopia-Japan Investment Forum held this morning in Addis Ababa showcased the robust partnership between the two nations, with a focus on economic collaboration that has flourished since 1930.
In his opening remarks, Zeleke Temesgen (PhD), Commissioner of the Ethiopian Investment Commission, emphasised the strategic advantages Ethiopia offers to Japanese investors, stating, “With a population exceeding 130 million and a prime location, Ethiopia serves as a gateway to a market of 1.4 billion people.”
“This partnership is a win-win collaboration,” Dr Zeleke remarked, highlighting opportunities for Japanese companies to leverage Ethiopia’s logistics capabilities, such as Ethiopian Airlines, to access broader African markets.
Ethiopia is actively opening key sectors—banking, telecommunications, and trading to foreign investment. “Our government is committed to creating an investor-friendly environment,” Dr Temesgen noted, detailing ongoing reforms to enhance transparency and predictability. Competitive fiscal incentives, including income tax exemptions, aim to attract investments in manufacturing, agriculture, information technology, and renewable energy.
As part of the forum's action items, Dr Temesgen outlined key recommendations: strengthening the investment framework to ensure success for foreign investors, providing competitive incentives for both foreign and domestic entities, and showcasing Ethiopia’s success stories in strategic sectors like mining and electric mobility. He concluded with a vision for sustainable growth: “Together, we can foster long-term prosperity for both nations.”
The Japan-Ethiopia Economic Forum which is underway, marked a pivotal moment in strengthening ties between the two nations, as Dr Kunimitsu Ayano, Japan's State Minister for Foreign Affairs, expressed gratitude for the opportunity to address a gathering of over 50 participants from both public and private sectors. “This forum is not just a meeting; it’s a testament to our commitment to deepen economic relations,” Dr Ayano stated, highlighting Japan's support for Ethiopia's macroeconomic reforms.
This mission, Japan's first to Ethiopia in nearly a decade, has seen a remarkable increase in Japanese corporate interest, with 35 companies participating—up from just 15 in the last mission. Dr Ayano noted that Ethiopia's strategic location and burgeoning population make it an attractive destination for investment. “By 2050, Ethiopia is expected to be home to a significant portion of the world’s population,” she remarked, underscoring the country’s potential as Africa’s logistics hub.
The State Minister emphasised that continued reforms are essential for fostering a conducive investment environment. “Japan stands ready to assist Ethiopia in enhancing its manufacturing sector and boosting agricultural production,” Dr Ayano declared, outlining key action items for bilateral cooperation. She called on the Ethiopian government to ensure steady implementation of macroeconomic reforms, including improving transparency and expediting administrative procedures.
Dr Ayano concluded with a strong message: “Together, we can unlock the full potential of our partnership.” As discussions continue, both nations are poised to embark on a collaborative journey aimed at sustainable economic growth, reinforcing their longstanding relationship in the face of evolving global challenges.
In a similar development, the Ethiopia-Japan Economic Forum, marked a significant step toward enhancing bilateral economic relations, as Ambassador Dawano Kedir, the Director General for Middle East, Asia, and Pacific Affairs at Ethiopia's Ministry of Foreign Affairs, emphasised the importance of trade and investment ties between the two nations. "This forum is a crucial platform to deepen our economic partnership beyond political connections," Ambassador Dawano stated, welcoming a delegation of Japanese officials and business leaders.
The meeting highlighted Ethiopia's strategic location, youthful workforce, and rapidly growing economy as prime opportunities for Japanese investors. "We are grateful for Japan's ongoing support in our development and digital sectors," he added, noting historical ties dating back to Ethiopia's first diplomatic mission in Japan in 1933. The ambassador also referenced the Japanese garden in Addis Ababa, symbolising the enduring friendship between the two countries.
Among the key action items discussed were plans to facilitate business-to-business networking during the forum and provide comprehensive support for Japanese investors exploring opportunities in Ethiopia. "We aim to attract more Japanese companies and technologies to boost our exports to Japan and other markets," Ambassador Dawano urged.
The forum concluded with a call for collaboration in the agriculture and technology sectors, where Ethiopian products could thrive in Japanese markets. "We encourage our Japanese counterparts to consider Ethiopia as a viable investment destination," he remarked, closing the event on an optimistic note about the future of Ethiopia-Japan economic cooperation.
