Ethiopia’s economic reforms make it attractive investment destination: Indian envoy on PM Modi's visit

Addis Ababa, Dec 16 India's Ambassador to Ethiopia, Anil Kumar Rai, highlighted the significance of Prime Minister Narendra Modi's visit, stating that it comes at a time when the African nation is witnessing an economic transformation, making it an attractive investment destination.

Speaking to IANS on Tuesday, Rai said, "This visit is taking place at a time when Ethiopia has overcome many economic challenges and implemented very liberalised policies."

"All this has been possible because of the rigorous homegrown economic reforms implemented under the able guidance of Abiy Ahmed, the Prime Minister of Ethiopia. These things have made Ethiopia an attractive place for investment," he added.

Rai also highlighted the multiple sectors that have opened up for collaboration: "Many other avenues also have opened up, particularly in the basic structure of the economy, mining sector, agriculture, manufacturing, export-oriented units, banking and finance, and knowledge systems. So we see this visit will discuss the entire relationship and cooperation and take it forward."

On India's relations with Ethiopia, Anil Kumar Rai said, "India's relationship with all countries, including Ethiopia, lies on its own merits. So with this, what we see is that every country is free to have its own diplomatic relations with other countries, and generally those alignments are based on the strength and compatibility. If you see India's relationship with Ethiopia, it is more than 2,000 years old. Indian teachers have trained the old generation of Ethiopians."

On the upcoming BRICS summit in 2026, the ambassador emphasised Ethiopia's strategic role, stating, "The 2026 BRICS summit is going to take place at a time when the global system is relatively broken and trust between nations is not at its best. BRICS, which today commands roughly more than 50 per cent of the world's population and more than 50 per cent of its GDP, is an important forum that will deliberate on political, economic, and international issues."

He further noted: "Countries like Ethiopia, newly entering BRICS, will bring their knowledge, and it will help BRICS to grow. It will also help India to strengthen its perspective of cooperation with the developing countries in Africa."

PM Modi's current visit to Ethiopia, the second leg of his ongoing three-nation tour, marks his first-ever visit to the country and comes at a strategic time for India-Africa relations.

During the two-day visit, scheduled for December 16–17, 2025, PM Modi is expected to hold comprehensive discussions with PM Abiy Ahmed on bilateral cooperation, trade, investment, and development partnerships.

The visit underscores India's commitment to deepening South-South cooperation, strengthening ties with African nations, and promoting knowledge and technology exchanges across key sectors. Ambassador Rai stressed that the discussions during this visit are expected to chart a forward-looking roadmap for India-Ethiopia relations and enhance collaboration on multilateral platforms such as BRICS.

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