East Africa: Ethiopia, China Deepen Strategic Economic Ties

– Officials and business leaders from Ethiopia and China reaffirmed their strong commitment to strengthening bilateral ties. This came during the Ethiopia-China (Xinjiang) Business Cooperation and Exchange Conference held here yesterday.

The event marked a new chapter in the economic engagement between the two nations, particularly with the involvement of China’s Xinjiang province, a region increasingly seen as a vital player in advancing bilateral trade and investment.

Ethiopia’s Foreign Affairs State Minister Hadera Abera said the country’s sweeping economic reforms–ranging from exchange rate liberalization to enhanced market openness–are creating favorable conditions for foreign direct investment. He underscored that China, already the leading source of foreign investment in Ethiopia, is expected to expand its footprint across new and emerging sectors.

“The reform-driven momentum of our economy, including improved macroeconomic stability and declining inflation, has drawn increasing interest from global investors,” Hadera noted. “We warmly welcome new investments from China and express our full support, especially for those from Xinjiang province.”

A Memorandum of Understanding (MoU) was signed during the forum, reflecting a mutual commitment to strengthen investment cooperation between the two countries. The agreement paves the way for enhanced collaboration in key areas such as manufacturing, agro-processing, and infrastructure.

Chinese Ambassador to Ethiopia, Chen Hai, also addressed the gathering, highlighting the historic depth and future promise of Ethiopia-China relations, which this year marks 55 years of diplomatic ties. He described the Xinjiang region as a strategic economic bridge for advancing Sino-African trade and emphasized China’s continued role as Ethiopia’s top foreign investor.

“China remains committed to supporting Ethiopia’s development ambitions,” said Ambassador Chen. “We believe Ethiopia, as a vital partner in China-Africa cooperation, will continue to play a constructive role in strengthening our shared industrialization and investment goals.”

On his part, Ethiopian Industry State Minister Tarekegn Bululta, encouraged Chinese investors to channel capital into priority sectors such as manufacturing and agro-processing–industries central to Ethiopia’s goal of building a sustainable and competitive industrial economy. He noted that the government is actively facilitating investment through policy reforms, infrastructure development, and public-private engagement.