Ethiopian PM welcomes India's Modi in Addis Ababa at start of two day visit

India's Prime Minister Narendra Modi arrived in Ethiopia on Tue, Oct 24, 2023, for a two-day visit to the East African country. During his visit, he met with Ethiopian Prime Minister Abiy Ahmed and engaged with the Indian community in Addis Ababa.

From New Delhi's perspective, Ethiopia serves as a key economic and strategic partner in Africa. The nation hosts the headquarters of the African Union and has gained significance through its 2024 entry into the expanded BRICS group. India aims to strengthen its influence in Africa amid competition with other global powers.

Economically, Ethiopia is considered a recovering market where India has established a long-standing presence. Currently, over 175 Indian companies operate in the country, primarily within the textile sector. Although initial investments in agriculture faced constraints, India's focus has shifted toward the mining sector.

Ethiopia possesses significant reserves of critical minerals and rare earths that are essential for renewable energy, batteries, and semiconductors. Despite facing regulatory and infrastructural challenges, these resources present substantial opportunities for India. A study conducted by the Indian Embassy in Addis Ababa highlights the potential for deeper mining cooperation to secure essential supplies.

Ethiopia is actively seeking to attract more Indian investment, particularly in pharmaceuticals, agro-processing, and light industry. Concurrently, India aims to expand its access to African markets through the African Continental Free Trade Area (AfCFTA). During Prime Minister Modi's visit, several new agreements are anticipated to be finalized, further strengthening bilateral relations.

Based on reporting by Africanews.