Ethiopian Ambassador Dessie Dalkie Dukamo highlights Ethiopia's strategic importance for South Korea's African investment strategy, emphasizing its significant potential in trade and investment. In an interview with The Korea Herald, the ambassador cited Ethiopia's prime location, substantial population, burgeoning economy, and growing stability as key factors.
Ethiopia's position in the Horn of Africa, near vital shipping routes like the Red Sea and Suez Canal, makes it a crucial logistical and commercial hub. While South Korean companies recognize Ethiopia's potential in textiles, manufacturing, and construction, investment lags due to perceived risks and a lack of awareness. Ambassador Dessie Dalkie suggests addressing this through increased information dissemination, including trade shows and investment guides.
South Korea already supports Ethiopia's development in various sectors, including education, health, energy, and technology transfer. Ethiopia offers attractive incentives to investors, such as duty-free imports, tax rebates, and investment guarantees. The ambassador highlighted Ethiopia's nearly 10% annual GDP growth and its access to the vast African market via the African Continental Free Trade Area (AfCFTA).
With a population exceeding 126 million (Africa's second largest), and projected African population growth to nearly 2.5 billion by 2050, Ethiopia presents a substantial consumer market. Its rapid economic growth, driven by homegrown reforms, and the development of industrial parks and special economic zones further enhance its attractiveness to foreign investors, particularly those in construction, technology, and manufacturing. Existing Korean investments in these zones benefit from tax incentives and access to a young workforce. Ethiopia's infrastructure development, including roads, railways, and energy projects, also presents opportunities for Korean companies, particularly through public-private partnerships.
To further encourage Korean investment, Ambassador Dessie Dalkie suggests promoting Korean business associations, strengthening investment incentives, fostering public-private partnerships, and actively utilizing bilateral agreements. He concludes that investing in Ethiopia contributes to sustainable development in one of Africa's most promising economies, creating mutual benefits for both nations.