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A F R I C A

Q U A R T E R L Y

decentralised market-oriented econment liberalisation measures initiatomy, by adopting a new economic ed in Ethiopia, the latter now propolicy both at the macro and the secvides many opportunities for toral levels. Ethiopia has been receivincreased Indian exports. It should ing considerable financial and techbe stressed that Indian products in nical assistance from multilateral and Ethiopia do not suffer from any disbilateral donors. criminatory barriers –– whether tarIndo-Ethiopian economic cooperiff or non-tariff. There has also not ation has also intensified. A new trade been any case of countervailing agreement between India and duties imposed on Indian goods as Ethiopia was signed on March 6, anti-dumping measures. 1997, in New Delhi during the visit There is vast scope for enhanced of Zenawi to India. It imparted a deftrade and bilateral cooperation inite content and dynamism to the between India and Ethiopia in such bilateral cooperation agenda, espeareas as agro-based industries, leather cially in the areas of human resource and leather-products, knowledgedevelopment and the sharing of based industries including pharmaappropriate technologies and experceuticals and drugs, information tise. Among others, a Joint Trade technology, etc. Other areas that Committee (JTC) was constituted have potential are iron and steel, In 2005, India set up an which held a number of fruitful engineering goods and machinery, meetings subsequently. The volume textiles and yarns, plastic and paper e-learning project for Africa of trade, though small, has grown products, etc. Potential areas of whose centre is in Ethiopia. gradually and in 2001-2002 crossed India-Ethiopia joint ventures are the This is the Pan-African the $100 million mark with exports garment industry, minerals and minfrom India valued at $90.4 million ing, tourism, machinery for light e-Network project, which is and imports from Ethiopia at $18.4 industry, foundry shops, processing the brain-child of Indian million. Bilateral trade stood at mere of oil seeds, commercial farming, President A.P.J. Abdul Kalam. $12.9 million a decade earlier, in processing and packaging of coffee, 1992-93. India is Ethiopia’s sixthassembly of tractors, among others. He presented it to the largest trading partner for merchanThere is also ample scope for coopPan-African Parliament in dise exports. The main items of eration in the production of solar 2004. India is in the process exports from India are iron and steel energy and supply of solar equip(about 50 percent), manufactures of ment. It is, however, important to of implementing it in metals, drugs and pharmaceuticals, point out here that the quantum of collaboration with the machinery and instruments, trade between the two countries still African Union (AU). paper/wood products, yarn and texleaves much to be desired. India’s tile fabrics, auto parts, plastic and share in Ethiopia’s global imports, linoleum products and food items. The main items of export except in iron and steel, remains largely insignificant. A glance from Ethiopia to India are pulses (41 percent), raw hides and at figures relating to India’s imports from Ethiopia and her skins, raw cotton and leather. Raw cotton and pulses are the exports to Ethiopia provide a dismal picture. This situation new items of exports to India. We notice that India’s trade with needs to be reversed. Ethiopia has virtually been a one-sided affair with the balance However, it is encouraging to note that India-Ethiopia of trade heavily in India’s favour. This situation could improve. cooperation, specially in the field of education, is making rapid The prospects of expansion of bilateral trade are huge. There strides. In 2005, India set up an e-learning project for Africa are very many areas in which new and mutually beneficial ini- whose centre is in Ethiopia. This is the Pan-African etiatives could be taken. The development of small-scale indus- Network project, which is the brain-child of Indian President tries is one of Ethiopia’s thrust areas and a major part of the A.P.J. Abdul Kalam. He presented it to the Pan-African purchase is left to private entrepreneurs. Ethiopia has also Parliament in 2004. India is in the process of implementing it introduced a New Investment Code in July 2003. The private in collaboration with the African Union (AU). The idea is that sector is encouraged to invest in most areas of the economy. India will help create in every African country an e-learning Even those economic areas reserved for the government –– centre and a tele-medicine centre which will be linked to enamely defence industries, hydropower generation, telecom- learning centres and medical institutions in India and provide munications –– are now open to private domestic and foreign services. The satellite hub for that is to be located in Senegal. investors. A foreign investor may team up with a domestic Most importantly, the pilot project is taking place in Ethiopia. investor for a joint investment. This offers India new oppor- There will be five or six post-graduate courses in Ethiopia by tunities. On account of a number of recent trade and invest- Indian universities.

February-April 2007

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AQ-Feb-2007-Apr-2007  

February 2007-April 2007

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