Ethiopia Showcases Investment Potential in High-level Meeting with Chinese Delegation

Addis Ababa, January 17, 2025 (ENA) —Ethiopia’s Minister of Planning and Development, Fitsum Assefa, welcomed a Chinese delegation led by Lu Hao, President of the Development Research Center of the State Council of the People’s Republic of China, to discuss deepening China-Africa collaboration and shaping the vision for the soon-to-be-launched Global South Research Center.

Fitsum emphasized China’s indispensable role as Ethiopia’s largest source of foreign direct investment (FDI) and a key trading partner, particularly in imports.

She expressed Ethiopia’s desire to expand its agricultural exports to China, pointing to untapped opportunities that could foster mutually beneficial trade ties.

Central to the discussions were Ethiopia’s sweeping macroeconomic reforms.  Fitsum detailed the government’s bold initiatives, including the floating of the birr, opening the financial sector to foreign players, and the establishment of Ethiopia’s first securities exchange.

“These reforms mark a transformative shift, unshackling Ethiopia from the chronic foreign exchange constraints that have long hindered its economic progress,” she said.

Responding to Lu’s inquiries about priority sectors for Chinese investment,  Fitsum highlighted Ethiopia’s remarkable achievements in agriculture, particularly its irrigated wheat initiative, which has positioned the country as self-sufficient in wheat production.

“Leadership commitment has been instrumental in driving this transformation,” she remarked, crediting the government’s strategic backing for the sector’s success.

The minister further outlined Ethiopia’s potential as a manufacturing hub for Africa, underscoring the nation’s competitive advantages, including a network of industrial parks, access to affordable and sustainable green energy, and a vast, trainable young workforce.

She also spotlighted Ethiopia’s mining sector, urging investment that goes beyond resource extraction to include value-added processing.

The digital economy featured prominently in the talks, with Fitsum describing it as a cornerstone of Ethiopia’s economic future. She emphasized its potential not only as a growth driver in its own right but also as a transformative force across other sectors of the economy.

On the proposed Global South Research Center, Fitsum underscored the need for evidence-based policymaking tailored to the unique challenges of countries in the Global South.

She emphasized the need for a decentralized approach, suggesting regional offices to enhance the center’s impact and proposing Ethiopia as the ideal host for an East African chapter.

Lu Hao expressed admiration for Ethiopia’s bold reforms and strategic vision, commending the comprehensive recommendations presented by Minister Fitsum.

 

He noted that China’s demand for agricultural commodities has surged, highlighting Ethiopia’s vast agricultural potential as an opportunity to tap into this growing market.

Lu also emphasized the importance of conducting high-quality geological surveys to attract mining investments and stressed the need for robust government oversight to establish clear rules for the sector. “In today’s global economy, having a comparative advantage is no longer sufficient; scale and strategic investments are critical,” he remarked.

The meeting reinforced Ethiopia’s strategic vision of leveraging partnerships and economic reforms to position itself as a key player in Africa’s development narrative, while underscoring the potential for deeper China-Africa collaboration to drive growth and innovation.