Russian firms set to begin production in Ethiopia, enhancing bilateral trade and employment opportunities
-"Russian businesses are keen to explore the possibilities of establishing manufacturing lines, including automobile production in Ethiopia," Evgeny Teriokhin, the Russian ambassador in Addis Ababa, told the TASS agency.
18 February 2024 20:16
"Russian businesses are willing to explore the potentiality of partially localising their production in Ethiopia, notably in the auto sector," he stated.
Currently, the two countries are engaged in mutual trade.
Russia supplies Ethiopia with petroleum goods, machines, car components, rolled metal materials, wooden products, among other items. In return, Ethiopia exports coffee, ready-to-wear apparel, leather goods, flowers, and beans to Russia.
"I want to point out the substantial potential for elevating bilateral trade, including via the provision of Russian mineral fertilisers, farm machinery, energy appliances, electrical and mining equipment, as well as hardware for the chemical and agricultural product processing industries," Declared Teriokhin.
He also pointed out that the restarting of Russia's trade mission in Addis Ababa was due to the goal of supporting common projects between Russian and Ethiopian firms.
What are the benefits for Russia and Ethiopia?
The Russian ambassador notably left out another factor that could favour Russia. If collaboration is enhanced in the near future, Russians could also increase their recruitment for their military amidst conflicts with Ukraine. As previously noted, African warriors are increasingly visible in the Russian military, attracted by the prospect of citizenship and employment in Russian firms.
On the other hand, Ethiopia could be enticed by the promise of new employment opportunities. According to Trading Economics, the nation's unemployment rate is projected to be just shy of 23%.
