(3 minutes read)
· Indo – Ethiopian Chamber Of Commerce and Industry has been launched in the commercial capital of India- Mumbai – to promote bilateral exports and investments
· Africa4U and www.trendsnafrica.com welcome the move since it can open up business hand holdings
· Africa is a major recipient of India’s Line of Credit: of the total US$ 20 billion line of credit given by India to various countries through India’s EXIM bank, 48 African countries including Ethiopia account for US$6 billion, close to 30%.
Indo – Ethiopian Chamber Of Commerce and Industry has been launched in the commercial capital of India- Mumbai – to promote bilateral exports and investments. India ranks third in the pecking order of Ethiopia’s imports. India’s investments in that country are limited though Indian textile, pharmaceuticals and ICT sectors consider Ethiopia as an ideal place to invest to cater to the local and expanding African market.
The Chamber will act as a facilitator for increasing the bilateral trade and investment by disseminating business information and holding interactions among the businesses of both the two countries. “ This is a positive development that can have many spinoffs in facilitating hand holdings between Indian and African businesses;” says Sheila Sudhakaran, Editor, www.trtendsnafrica.com and Africa4U, two digital platforms that promote Africa Inc across geographies. She added that such institutional arrangements can go a long way in cementing India –Africa ties since Ethiopia is widely perceived as a gateway to Horn of Africa because of its geographical positioning and the current tempo of reform process.
Importantly, Africa is a major recipient of India’s Line of Credit. Of the total US$ 20 billion line of credit given by India to various countries through India’s EXIM bank, 48 African countries including Ethiopia account for US$6 billion, close to 30%. The formation of African Continental Free Trade Area (AfCFTA) from 1st January this year also can be leveraged by the Indian businesses to tap the African market by establishing the manufacturing units because of the front loaded reduction of tariff to the extent of 90% in the first year itself.
Tizita Mulugeta, Ambassador of the Federal Democratic Republic of Ethiopia in India, while launching the Chamber said that Ethiopia being the fastest growing economy in Africa, the Indian cooperation could go a long way in benefiting both the countries. Importantly, an Indian pharmaceutical company Killitch Drugs India one of the leading drug manufacturers and exporters to African countries, will launch a manufacturing unit in Ethiopia. The East African country has a huge market for pharmaceutical products and India can be a supplier of medicines and healthcare products in the post Covid -19 era.
