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Ethiopia and Japan Strengthen Strategic Economic Partnership to Boost Investment and Trade

Jan 12, 2026

Ethiopia and Japan Strengthen Strategic Economic Partnership to Boost Investment and Trade

Ethiopia’s Minister of Finance, Ahmed Shide, held a high-level business meeting with a joint public-private mission from Japan, led by Kunimitsu Ayano, State Minister for Foreign Affairs of Japan.

The delegation—the third of its kind since 2008—brought together representatives from about 40 Japanese companies and 48 participants from both public and private sectors, reflecting growing Japanese interest in investment and trade with Ethiopia.

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During the meeting, Minister Shide highlighted Ethiopia’s ongoing reforms under the Homegrown Economic Reform Agenda (HGER), aimed at supporting private-sector-led growth and economic diversification.

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Key reforms target manufacturing and industrialization, energy, agro-processing, logistics, and the digital sector, alongside liberalization in telecommunications, technology, agriculture, and pharmaceuticals.

To attract and facilitate investment, the Ministry of Finance is working closely with relevant government bodies on incentives, improved tax administration, capital repatriation, access to public-private partnerships (PPPs) in industrial parks, and robust PPP frameworks.

These initiatives are designed to create a transparent and investor-friendly environment for companies entering Ethiopia.

The Japanese delegation raised operational challenges, including customs clearance delays, tax clarity, and access to foreign currency.

Minister Shide pledged to address these issues and announced the creation of a dedicated “Japan Desk” within the Ethiopian Investment Commission to support smoother entry and operations for Japanese firms.

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Ethiopia invited Japanese companies to explore opportunities in emerging sectors such as venture capital for mobility startups, space technology, digital innovation, industrial development, energy, agro-processing, and logistics.

The delegation also showed strong interest in infrastructure and transport projects, including investments for Bishoftu International Airport, as part of broader collaboration to modernize Ethiopia’s strategic infrastructure.

The mission concluded with bilateral discussions to deepen economic cooperation, trade relations, and sector-specific collaboration, in the presence of State Minister Semereta Sewasew, Japan’s Ambassador to Ethiopia Shibata Hironori, Ethiopia’s Ambassador to Japan Daba Debele, and senior officials from the Ministries of Finance and Foreign Affairs.


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