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“Time for Deals, Not Declarations” as Europe Eyes Deeper Investment in Ethiopia

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As Ethiopia accelerates economic reforms and positions itself as a key investment destination in Africa, the European Union is signaling a shift from dialogue to delivery. In this exclusive interview ahead of his visit to Addis Ababa, European Commissioner for International Partnerships Jozef Síkela outlines how the EU’s Global Gateway strategy aims to unlock large-scale investment in sectors ranging from energy and digital infrastructure to agriculture and health. With over €3.5 billion already invested and more than 300 European companies operating in the country, Síkela emphasizes that the next phase of EU–Ethiopia relations will be defined by bankable projects, reduced risk for investors, and long-term economic transformation driven by concrete partnerships. Excerpts;

Capital: What makes Ethiopia stand out right now as a destination for European investment?

Jozef Síkela: Scale, ambition, and reform momentum. Ethiopia has around 135 million people, two thirds of them under 30, and it is growing above 7% a year. That combination of a young population and a government that is pursuing economic reform, in foreign exchange, in financial services, in market opening, creates real opportunities.

European companies have recognised this. There are already around 300 of them active in Ethiopia, from energy to agribusiness to telecoms. The EU is Ethiopia’s second largest investor, with over €3.5 billion in investment stock. So this is not about convincing people to take a first look. It is about going further.

Capital: Which sectors offer the strongest potential for European investors today, and why?

Jozef Síkela: Digital infrastructure, clean energy, health, and sustainable agri-food value chains. These are the areas where European companies have genuine competitive advantage in technology, standards, and long term financing. These are also the sectors that Ethiopia needs most urgently for its own development agenda.

Take coffee. Fifteen million Ethiopians depend on the sector. Europe is the largest buyer. There is a direct interest on both sides in making that value chain stronger, more sustainable, and more profitable for Ethiopian farmers.

The same logic applies to energy. Ethiopia has enormous clean energy potential in hydropower, wind, and geothermal. Reliable electricity is the precondition for almost everything else: running a clinic, connecting a school, manufacturing goods for export. European companies have the technology and experience to help build that system. That is an opportunity, not just a priority.

Capital: What concrete outcome do you most want this forum to deliver?

Jozef Síkela: I am a former banker. What I want from this forum is deals. Not just political declarations, but real business-to-business and business-to-government connections that lead to bankable projects with transformative impact.

The Business Forum is the right space for that. We have over 500 participants: Ethiopian and European companies, development banks, government officials. The ingredients are there. My job is to help create the conditions where matches are made and commitments follow. I will be coming with good news in several areas that will allow us to invest significantly more together, and I look forward to sharing those during the visit.

Capital: How can EU development finance help unlock more private investment in Ethiopia?

Jozef Síkela: By reducing risk and improving project preparation. This way we can bring to life projects that would not happen otherwise and mobilise private investors for whom such initiatives would otherwise be too risky.

Through Global Gateway, we can offer grants for studies and project preparation, loans, guarantees, political risk cover, local currency solutions, and technical assistance.

Capital: What is still the biggest obstacle holding European investors back, and what needs to change?

Jozef Síkela: Predictability. European companies can manage risk. What they struggle with is unpredictability in areas like tax and customs, legal frameworks, and security in certain regions.

But the good news prevails. The Ethiopian government understands this and is actively working on it. The macroeconomic reforms of recent years have already improved the picture significantly. Exports are up. The investment climate is moving in the right direction. The next step is making that consistent across institutions and regions. We are supporting that directly through investments in governance, tax administration reform, and business environment support. These are not abstract commitments. They are funded programmes already running.

Capital: How do you see EU-Ethiopia economic relations evolving in the coming years?

Jozef Síkela: More strategic, more investment-driven, and with concrete benefits for both sides. Ethiopia is looking for fair, reliable partners who invest, who bring technology and standards, who commit for the long term. That is exactly what Europe offers.

The EU is already Ethiopia’s largest export destination and a key long term investor. The next phase for our cooperation will be about building resilient value chains, advancing the clean and digital transitions, and positioning Ethiopia more strongly in regional and global markets. That is what I am going to Addis Ababa to advance.

17th UN Chinese language day marks 2026 as China-Africa People-to-People exchanges year

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The 17th United Nations (UN) Chinese Language Day held in Addis Ababa on Thursday carried added significance as 2026 is designated the year of China-Africa people-to-people exchanges, according to the Head of Mission of China to the African Union (AU) and Economic Commission for Africa (ECA), Jiang Feng.

Speaking at the UN Economic Commission for Africa (UNECA)-hosted event, Jiang said language is far more than a means of communication. It also serves as a vehicle for cultural heritage and a bridge that connects hearts.

“Language is not only a tool for changing ideas, but also a carrier of cultural heritage and a bridge connecting hearts,” Jiang said, adding that China’s language education efforts across Africa have become a “hallmark” of China-Africa cultural exchange.

He highlighted the role of Confucius Institutes, noting that their programmes are tailored to local needs through blended language-and-skills training. Among the examples he cited were “China-for-agriculture technology” and “China-for-medical training,” reflecting a broader approach that links language learning with practical capacity-building.

Jiang also linked the enduring global appeal of the Chinese language to the worldview of Chinese civilization. He described it as carrying values of brotherhood, the symbiotic coexistence between humanity and nature, and aspirations for universal harmony.

In his remarks, UNECA Office Executive Secretary Chief of Staff, Aboubakri Diaw, described Chinese as remarkable for its integrity and continuity, as well as its precision and depth.

Diaw said Chinese embodies a major intellectual tradition in which writing is both a practical instrument and an art form—sometimes also functioning as a discipline and even a philosophy.

He further emphasized that the celebration reflects the importance of multilingualism beyond translation and document work, describing it as a matter of dignity. Diaw said multilingualism ensures that international systems do not privilege a single voice, tradition, or way of framing reality.

“The celebration today reflects that multilingualism is fundamental to dignity and ensuring fairness in international dialogue,” Diaw said.

Hosted at UNECA under the theme “Chinese: lighting up your colorful dreams,” the event brought together diplomatic representatives, UN staff, students, and members of the Chinese community.

Addressing participants, Jiang Feng said the establishment of the UN Chinese Language Day not only highlights the importance of the Chinese language, but also reflects the United Nations’ commitment to promoting language equality and cultural diversity.

He described the Chinese writing system as a living cultural inheritance—passed down and used for thousands of years—capturing the beauty of sound, form and meaning.

Diaw framed language as a gateway to understanding, describing it as a way of thinking and a means of interpreting the world. He said multilingualism at the United Nations is not symbolic, but fundamental to fairness and dignity—ensuring that all traditions and voices are respected in international discussions.

“Multilingualism is fundamental to dignity and equality,” Diaw said, linking cultural diversity directly to the UN’s mission and to development work across Africa.

Green Motion, Ethiopian Airlines launch ShebaMiles link for ground travel

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Green Motion Ethiopia and Ethiopian Airlines have signed a strategic partnership that will allow travelers to earn ShebaMiles points through car rental services, in a move that links air travel with ground transportation and reflects Ethiopia’s shift toward greener mobility.

The agreement, announced on April 14, 2026, comes as Ethiopia’s transport sector undergoes rapid change following the government’s ban on importing internal combustion engine vehicles in 2024. The policy has accelerated demand for electric vehicles and pushed rental companies to modernize their fleets and services.

Green Motion Ethiopia said 70% to 80% of its current fleet is fully electric, positioning the company among the private-sector players adapting quickly to the country’s EV transition. Company officials said the move supports Ethiopia’s climate commitments and broader efforts to reduce transport emissions.

Richard Lowden, founder of Green Motion, said the company supports Ethiopia’s electric vehicle policy and aims to minimize the environmental impact of its services. He said the gradual expansion of renewable energy infrastructure would further reduce emissions from the sector.

Under the new partnership, Ethiopian Airlines’ ShebaMiles members will earn one mile for every dollar spent at Green Motion branches in Ethiopia and at the company’s locations abroad. Green Motion Ethiopia General Manager Bizuayehu Tadesse said the arrangement is designed to reward loyal customers while making travel more seamless for both business and leisure passengers.

He said the deal creates a direct link between aviation and sustainable ground mobility, adding that travelers can now accumulate miles even when they are not flying.

The partnership also reflects growing private-sector interest in Ethiopia’s electric vehicle market. Banks including Zemen Bank and Dashen Bank are increasingly offering financing for EV purchases, making it easier for rental operators and consumers to manage the high upfront cost of electric mobility.

Global food shock is hitting rural livelihoods, with Ethiopia and other African countries under strain

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A new IFAD report warns that disruptions in global fertilizer and fuel supplies are already reverberating through rural economies, exposing how quickly international crises can turn into local food and livelihood emergencies. The report says countries across Africa, including Ethiopia, are facing rising input costs, supply bottlenecks and growing pressure on small-scale producers as the conflict in the Middle East upends key trade routes.

The report, Global shock, local crisis: Sustaining rural livelihoods through adaptive practices, says the abrupt interruption of fertilizer and fuel shipments through the Strait of Hormuz and the Bab el-Mandeb has already pushed up prices and threatened planting seasons across Africa, Asia and parts of Latin America. It warns that the shock is being absorbed most heavily at the farm gate, where small-scale producers have the least capacity to cope.

For Ethiopia, the report places the country among those most exposed to the wider regional fallout, citing fuel supply tightness, higher import costs and pressure on agricultural production. Across sub-Saharan Africa, it says food insecurity risks are deepening as higher energy and fertilizer prices feed into transport costs, food inflation and lower farm productivity.

The IFAD analysis says that in many African countries, imported fertilizer and fuel remain essential to agriculture, leaving rural livelihoods vulnerable to external shocks. It notes that some countries import more than half of their fertilizer from Gulf sources, making them highly dependent on unstable supply corridors.

The report also points to practical examples of how countries and projects are responding. It cites locally adapted fertilizer solutions, digital soil and input advisory platforms, and flexible crisis-response mechanisms as tools that can help farmers maintain production during periods of disruption. In Ethiopia and other affected countries, such approaches could help reduce dependence on imported inputs while strengthening resilience at the community level.

IFAD argues that the crisis reinforces the need to invest in what it calls resilience at the “first mile” of food systems — the point where shocks first hit farmers, producers and rural traders. The report says that without stronger storage, local production systems and adaptive support, external shocks will continue to pass quickly into domestic markets and household food insecurity.

The agency says governments and development partners should prioritize rural resilience before the next crisis intensifies. That means supporting small-scale producers, improving access to affordable inputs, strengthening local production systems and building emergency response tools that can be activated quickly when markets are disrupted.