Ethiopia, China to establish joint business council

Addis Ababa, August 8 (WIC) –Ethiopia and China signed a Memorandum of Understanding (MoU) to establish a joint business council.

Business and investment discussion was also held between members of the Ethiopian Chamber of Commerce and Sectorial Associations (ECCSA) and China Council for the Promotion of International Trade (CCPIT) here yesterday.

ECCSA Vice President Junyedi Basha said the MoU signed with Peoples Government of Inner Mongolia Autonomous Region in particular is aimed at strengthening the all-round trade and investment ties between the two countries.

According to Junyedi, Ethio-China relations date back to time immemorial while the two nations were at the forefront of world civilization. “Since then, these two sisterly countries have been enjoying one of the most cordial and close relationships of our world.

Nowadays, the relationship has been coupled with diplomatic, political and economic ties. China has proven itself to be a real and dependable friend in many ways to Ethiopia. The economic relations between the two countries bear a remarkable witness.”   

According to ECCSA data, the total trade turnover between the two countries has reached nearly 1.7 billion USD in 2011 from nearly 353 million USD in 2004.

Ethiopia's exports to China has also reached over 280 million USD in 2011 from nearly 15 million USD in 2004 and imports well over 1.4 billion USD in 2011 from 338 million in 2004, the balance of trade remains highly in favour of China.   

Over the years between 1998 and 2012, Chinese investors have received license to undertake 938 projects with a registered capital of over 2.4 billion USD.

Some 57 per cent of the investment projects are in the manufacturing sector followed by real estate, machinery and equipment rental and consultancy service. These projects have created over 67,000 and 79,000 permanent and temporary jobs for Ethiopians respectively.