The sixth session of the India-Ethiopia Joint Trade Committee was held earlier this week in Addis Ababa, Ethiopia. During the summit, several decisions were taken. 

To solve all the problems hindering bilateral trade with Ethiopia and facilitate commercial exchanges with the country, India “invited” Ethiopia’s collaboration for the creation of a payment interface between the two countries. The request was made at the India-Ethiopia Joint Trade Committee (JTC) held on Monday, November 6, and Tuesday, November 7 in Addis Ababa, Ethiopia. 

"The Indian side invited the Ethiopian side to collaborate on the Unified Payment Interface (UPI) of India with Ethswitch– a share company owned by all banks in Ethiopia– of Ethiopia. Further, the Indian side also urged Ethiopia to explore the possibility of settlement of trade transactions in local currency which will help boost bilateral trade and conserve foreign exchange," reads a statement published by the Indian Ministry of Commerce. 

The two countries signed a trade agreement in 1997 to strengthen their economic and commercial cooperation. Trade between the two countries in  2022-2023 is estimated to be worth more than $642.5 million. Also, to date, Indian companies have invested more than $5 billion in Ethiopia.  

Last August, Addis Ababa was one of six countries to join the BRICS, a group of developing nations advocating a new economic world order. India is one of the founding members of this alliance, along with Brazil, Russia, China, and South Africa.

Let’s note that the new gateway is expected to boost Indian investment in Ethiopia.

Adoni Conrad Quenum