The Hindu : Business : Indian companies have big plans in Ethiopia

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Tuesday, Oct 07, 2008
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Indian companies have big plans in Ethiopia

Atul Aneja

Jairam Ramesh holds talks with his counterpart Ahmed Tusa

Jairam Ramesh

DUBAI: India’s efforts to deepen ties with resource-rich Africa have taken a step forward with the visit to Ethiopia by the Minister of State for Commerce and Power Jairam Ramesh.

During the visit, Mr. Ramesh hopes to impart fresh momentum to economic ties between the two countries. On Monday, he held talks with his Ethiopian counterpart, Ahmed Tusa, as part of the two-day meeting of the India-Ethiopia Joint Trade Committee (JTC).

India’s fresh interest in Ethiopia — a major African country straddling the Indian Ocean — has followed a summit in April of the India-Africa Forum. Fourteen African leaders, including Thabo Mbeki of South Africa, Yoweri Museveni of Uganda and Meles Zenawi of Ethiopia attended this meeting, where India flagged its long-term interest in the continent.

During Mr. Ramesh’s talks, both sides noted that partnership in the field of agriculture has begun to show results. Around 75 Indian companies have received investment licenses worth $2 billion for investment in the agriculture and floriculture sector.

With investments in the tea industry also holding promise, India’s Kanan Devan Hills Plantations is looking at investing $9 million in developing 10,000 hectares of tea plantation in Ethiopia.

Besides, Indian private companies have identified Ethiopia’s leather industry as a promising area for investments. Mr. Ramesh’s arrival was preceded by a visit to Ethiopia by a 17-member delegation from the leather industry, which included representatives of the Confederation of Indian Industry. Indian companies are now studying the prospects of sourcing semi-processed leather and establishing joint ventures with their Ethiopian counterparts. Tata International had already opened an office in Ethiopia to explore fresh opportunities in this area.

During discussions, both sides looked at the possibility of signing an agreement which would allow India to impart knowhow on footwear designing to Leather and Leather Products Technology Institute of Ethiopia.

In the field of information technology (IT), an area of considerable interest to Addis Ababa, India’s IT heavyweight Wipro has completed a detailed feasibility study on establishing an IT park in Ethiopia.

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