Ethiopia and China signed a memorandum of understanding to promote the development of trade between the two countries.
The agreement stipulated that the nations exchange information on trade policies, investment opportunities, taxation, legislative changes and general national economic status.
China is a proven ally of Ethiopia as witness by the ever growing economic relations between the two countries said Mulu Solomon, President of the Ethiopian Chamber of Commerce and Sectoral Associations.
The agreement also included cooperation between the relevant organizations in each country to organize trade delegations and missions and visits by business people of both countries for trade exhibitions and promotional purposes.Trade relations between the two countries have reached an estimated 1.7 billion US dollars as of 2011 from just 353 million US dollars in 2004 noted Mulu. Ethiopian exports to China were more than 280 million US dollars in 2011 from only 15 million birr in 2004 and imports reached more than 1.4 billion US dollars in 2011 from 338 million in 2004 she explained.
The trade balance is still in favor of China but Chinese investment in Ethiopia has shown significant growth in quantity and quality over the last fourteen years added Mulu.
938 Chinese projects in the manufacturing, agriculture, and cement sectors have been licensed in the country so far with a total registered capital of 2.4 billion US dollars.
These projects have created employment opportunities for 146,000 permanent and temporary staff as well as allowing for knowledge sharing and technology transfer she noted.
Source: Capital
