India facilitates $ 195 million loan for Ethiopia

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India is set to provide Ethiopia with a loan of USD 195 million for the expansion of electric power transmission lines. The pledge was made during the official visit of Indian President Ram Nath Kovind to Ethiopia this week. The president held discussions with Ethiopian government officials including President of Ethiopia Dr. Mulatu Teshome, to discuss the relationship between the two countries and how they can further work to boost trade and investment.
“In recent years, Ethiopia’s remarkable economic growth and progress has been an object of global admiration and I am happy to note that India has been a partner in this growth through trade and commerce, investment, sharing expertise, as well as large and vibrant Indian business community present in Ethiopia,” Ram Nath Kovind said addressing the Indian and Ethiopian business community, members of the diplomatic communities as well as ministers.
The Indian President also revealed that some of the discussions with President Mulatu focused on identifying actions the two governments should take to further facilitate investment and trade, be it on the realm of banking procedures and laws, customs regulation and so on.
“Both our governments want to create an enabling environment for investment and trade and we value the specific recommendations made by our business communities,” Ram Nath Kovind said.
It was stated that the trade volume between the two countries have been growing consistently for the past ten years. The total trade volume had reached about 1.37 billion USD in 2016.
“It is my firm belief that this political and business dialogue will further elevate the Ethio-India existing social, economic and political relations to the uppermost levels by fostering strategic economic alliances and will build a high level and influential platform in order to enhance the existing economic cooperation between the two countries,” said President Mulatu.
The president further underlined their collaboration because both governments’ understanding of the need for broad-based, pro-poor growth as well as far reaching structural transformation of the two economies has largely contributed to the mutually beneficial partnership that Ethiopia and India have managed to build over the years.
“It is my firm belief that this political and business dialogue will take us further elevating the Ethio-India existing social, economic and political relations to the uppermost levels through fostering strategic economic alliances and builds a platform with high level and great influence in order to enhance the existing economic cooperation between the two countries,” Mulatu said.
Indian investment is one of the largest in Ethiopia. Companies from this South Asian country have invested in different sectors with a total investment capital of more than 10 billion birr and have created employment opportunities for more than 50,000 Ethiopians.