In a bid to enhance bilateral trade and strengthen economic ties, India is urging Ethiopia to consider settling trade transactions in local currency. The call came during the successful conclusion of the 6th Session of the India-Ethiopia Joint Trade Committee (JTC), held in Addis Ababa from November 6-7, 2023.
Co-chaired by Priya P. Nair, the Economic Advisor of the Department of Commerce, Ministry of Commerce and Industry, India, and Tages Mulugeta, the Lead Executive of the International and Regional Trade Integration at the Ministry of Trade & Regional Integration, Ethiopia, the JTC meeting aimed to address barriers to trade and promote collaboration between the two nations.
During the discussions, India extended an invitation to Ethiopia to collaborate on its Unified Payment Interface (UPI) with Ethswitch, Ethiopia's payment platform. This collaboration could pave the way for seamless and secure transactions between the two countries, facilitating trade and boosting economic cooperation.
Furthermore, India emphasized the potential benefits of settling trade transactions in local currency. This move would not only enhance bilateral trade but also conserve foreign exchange reserves, providing greater flexibility and convenience for businesses involved in trade between India and Ethiopia.
The Joint Trade Committee also reviewed recent developments in bilateral trade and investment ties, identifying key sectors for collaboration. These sectors include health and pharmaceuticals, automobiles, textiles, infrastructure projects, and food and agro-processing. Both sides expressed their commitment to expedite discussions on Memoranda of Understanding (MoUs) related to standardization and quality assurance, customs procedures, and the Bilateral Investment Treaty.
Ethiopia, known for its robust economic growth, recorded an impressive growth rate of 6.4% in the year 2021-22. Bilateral trade between India and Ethiopia reached USD 642.59 million in 2022-23, making India the second-largest exporter to Ethiopia. Indian companies have made substantial investments in Ethiopia, particularly in sectors such as agriculture, engineering, manufacturing, textiles, and healthcare.
