The Ethiopia-Sweden Business Forum 2025, held recently in Addis Ababa, showcased strong enthusiasm to deepen a historic economic relationship nearing a century. Yet, amid celebrations of shared growth potential and future innovation, participants underscored the critical need to tackle longstanding structural hurdles to unlock full bilateral trade and investment benefits.
The forum brought together prominent business leaders, policymakers and stakeholders from both countries and highlighted the “Sustainable Struggle for a Favorable Business Environment” as a key ongoing challenge. Strengthening the conditions necessary for business growth and investment was identified as essential to transitioning from historical ties to broader, modern economic partnerships.
Dag Hartelius, Sweden’s State Secretary for Foreign Affairs, emphasized that peace, stability, and respect for the rule of law remain foundational prerequisites for thriving businesses in Ethiopia and the wider region. He pointed out that a predictable, transparent legal and regulatory framework is vital for attracting significant foreign capital.
Although Ethiopia is actively implementing economic reforms to bolster investor confidence, challenges remain—most notably a severe foreign exchange (Forex) shortage hampering importation of raw materials, repatriation of profits, and loan repayments. Ericsson’s Abiye Yeshitila noted that opening up the financial sector more broadly could help mitigate this issue.
Ethiopia’s State Minister for Industry, Hassan Mohamed, highlighted national ambitions to create over five million new jobs by 2030 and increase exports to nine billion U.S. dollars—targets critical for resolving Ethiopia’s Forex constraints.
Both Ethiopian and Swedish representatives praised Ethiopia’s young, talented workforce and Sweden’s global innovation leadership. However, Ethiopian entrepreneur Samiya Abdulkadir stressed the urgent need to build strong support ecosystems—including startup hubs, venture capital access, and research infrastructure—to transform Ethiopia’s innovation potential into world-class enterprises.
While the challenges ahead are significant—from enhancing stability and legal frameworks to financial reforms and cultural bridging—the forum provided a vital platform marking the start of a promising new chapter in Ethiopia-Sweden economic partnership.
