Ethiopia’s ambassador to Tanzania, Shibru Mamo Kedida, has said that the country’s membership in Brics will likely result in stronger business ties with the East African Community (EAC) region.
In sub-Saharan Africa, the country in the Horn of Africa has the second-highest population, and its economy is currently one of the continent’s fastest-growing.
According to Mr. Shibru East Africa’s and the Horn of Africa’s economies would benefit from Ethiopia’s membership in Brics.
“It would serve as a catalyst for increased business relations. Ours is the continent’s fastest growing economy which can have a trickle effect on the neighbours,” he told The Citizen in an interview.
Mr. Shibru emphasized that Ethiopia retains its significance as a crucial market for the EAC bloc, boasting a population of 120 million, with 70 percent being youth.
During a recent summit held in South Africa, Ethiopia, Egypt, Saudi Arabia, Iran, United Arab Emirates, and Argentina were introduced as new members of Brics.
These six nations joined the five original Brics members – Brazil, Russia, India, China, and South Africa – who founded the group in 2001 to counterbalance the dominance of western economies in the global economic landscape.
Brics nations also emerge as geopolitical competitors to the G7 of advanced economies, including the US, UK, Japan, Germany, France, Canada, and Italy.
Prior to these new additions, Brics encompassed 27 percent of the world’s land area and population.
The initial five founding members of the bloc also constituted members of the wealthy G20, which boasts a combined nominal GDP of $28 trillion or 27 percent of the world’s gross product.
These founding members had a combined GDP (PPP) of around $56.6 trillion (32.5 percent) of global GDP (PPP), along with an estimated $4.46 trillion in collective foreign reserves.
Full membership for Ethiopia and the other five new entrants into the bloc is set to commence on January 1st of the coming year.
With three African countries onboard – South Africa as a founding member, Ethiopia, and Egypt as the second-strongest economy on the continent – the African continent’s representation is solidified.
Mr. Shibru expressed his country’s pride in joining Brics, as it enhances Ethiopia’s role in Africa’s economic progress and geopolitical landscape.
He highlighted Ethiopia’s status as an uncolonized nation, the origin of humanity, the birthplace of coffee, and the headquarters of the African Union.
In light of the recent inauguration of the Grand Hydropower Dam on Ethiopia’s Blue Nile, he noted that the country would export power to other nations within the EAC and the Horn of Africa.
Mr. Shibru acknowledged that trade and investment ties between his country and Tanzania were currently limited, but he expressed optimism for their future enhancement.
He mentioned that the joint ministerial commissions on various sectors would be revitalized soon to bolster their partnership.
Mr. Shibru also shared that the Ethiopian Chamber of Commerce and Industry would be initiating communication with its Tanzanian counterparts to explore strategies for promoting bilateral trade and investments.