The right moment to boost India-Ethiopia ties, Pg6

Key Highlights:

• Ethiopia, with a population of approximately 109 million in 2024, is a strategically and economically important nation in the Horn of Africa for India.
• Indian investment in Ethiopia has surpassed $4 billion since 2006, with new opportunities emerging in mining, especially in gold and critical minerals.
• Defence cooperation between India and Ethiopia is expanding, with India providing training and potentially modern equipment to the Ethiopian military.
• Ethiopia is a member of BRICS, creating opportunities for enhanced cooperation with India through multilateral platforms.
• Prime Minister Narendra Modi and Ethiopian Prime Minister Abiy Ahmed Ali met at the G-20 summit in Johannesburg, boosting bilateral relations.

Detailed Insights:

• Ethiopia is viewed as a regional anchor of stability, hosting the African Union headquarters and possessing potential as a renewable energy exporter, particularly in hydropower.
• India's relationship with Ethiopia has historical roots, with Indian teachers playing a vital role in Ethiopia's education system for over a century, and Ethiopia being the pilot country for the Pan-African e-Network project in 2007.
• Ethiopia sends a significant number of students to India, including the largest number of PhD students from Africa, demonstrating a strong interest in educational collaboration.
• Indian investments in Ethiopia initially focused on agriculture but are now shifting towards mining, with opportunities in gold, critical minerals, and rare earth elements.
• A new MoU on defence cooperation and the first meeting of the Joint Defence Cooperation Committee provide a framework for expanding training, capacity building, and defence exports.
• Ethiopia's membership in BRICS and the African Continental Free Trade Area (AfCFTA) offers opportunities for Indian companies to access East African and continental markets.
• Updating bilateral agreements like the Double Taxation Avoidance Agreement (DTAA) and the Bilateral Investment Treaty can further support private-sector engagement.

Key Concepts Involved:

• BRICS: An intergovernmental organization comprising Brazil, Russia, India, China, and South Africa, aimed at promoting economic and political cooperation.
• African Continental Free Trade Area (AfCFTA): A free trade area encompassing most African countries, aimed at creating a single market for goods and services.
• Double Taxation Avoidance Agreement (DTAA): A treaty between two countries to avoid taxing the same income twice.