Crown Prince in co-operation talks during Ethiopia visit
The Abu Dhabi Fund for Development has pledged Dh11 billion in assistance to Ethiopia during a visit by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.
It is a strong display of support for the new Ethiopian Prime Minister, Abiy Ahmed Ali, who welcomed Sheikh Mohammed and a large delegation of UAE ministers to the capital Addis Ababa on Friday.
Mr Ali assumed office in April. The fund will deposit US$1bn in the National Bank of Ethiopia to ease foreign currency shortages in the Horn of Africa nation, the state news agency Wam reported.
Large spending on infrastructure projects has contributed to a shortage of Ethiopia’s foreign currency reserves, which had reached less than one month’s worth of imports, analysts told Reuters.
The remaining Dh7.3bn is intended to stimulate the Ethiopian economy and encourage joint investments.
“I was pleased today to arrive in Addis Ababa, a city of history, civilisation and cultural diversity,” tweeted Sheikh Mohammed.
“I am even more delighted to enhance ties of friendship and co-operation between our countries.”
Mr Ali drove the Crown Prince around Addis Ababa on Friday afternoon for a personal tour.
Tourism, renewable energy and agriculture will benefit from agreements signed in the presence of Sheikh Mohammed and Mr Ali at the Jubilee Palace in Addis Ababa.
“In addition to helping Ethiopia overcome the challenges it faces, the funding will encourage the UAE private sector to enter the Ethiopian market and benefit from the investment opportunities it offers,” said Mohammed Al Suwaidi, directed general of the Abu Dhabi Fund for Development.
Mr Al Suwaidi signed an agreement outlining the terms of the funding in Addis Ababa with Teklewold Atnafu, the governor of the National Bank of Ethiopia.
One agreement allows visa-free travel between the two countries by holders of diplomatic passports. Another established the formation of a
joint consular committee that will improve the exchange of information and co-ordination on consular affairs, and address concerns of citizens between the two countries.
This was signed by Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, and his Ethiopian equivalent, Workneh Gebeyehu.
The UAE delegation included investors interested in property and hospitals, Ethiopian government spokesman Ahmed Shide told Reuters.
Agreements on trade, economic and technical co-operation were signed by Sultan Al Mansouri, the Minister of Economy.
A strong foundation for cultural exchange, particularly in antiquities, arts and libraries, will be developed based on an agreement signed by Noura Al Kaabi, Minister of Culture and Knowledge Development, and Fozia Amin, Ethiopia’s Minister of Culture and Tourism.
Ethiopia has the second largest population in Africa, with about 102 million citizens in 2016. There are 140,000 Ethiopians living in the UAE.
It is the fastest growing economy in the region, with a growth rate that averaged more than 10 per cent between 2005 and 2015, and one of the poorest, with a per capita income of Dh2,976.
Extreme poverty has declined from 33.5 per cent in 2011 to about 8 per cent, the World Bank says.
Gulf states have invested heavily in the Horn of Africa and the Red Sea. Large quantities of crude oil travel through the Suez Canal.
The UAE has invested in Djibouti, Somaliland and Puntland, and has a growing presence on the Yemeni archipelago of Socotra, off the coast of Somalia.
Since 2012, the Abu Dhabi fund has given Dh36.7 million to help finance an 80-kilometre road that serves the Oromia Region in the west of the Ethiopian Highlands.
In 2013, the UAE was one of three Gulf states to pledge Dh44bn to a government that ousted a president from the Muslim Brotherhood.
Last weekend, Mr Ali visited Egypt, an ally of the UAE that has been at odds with Ethiopia over construction of a dam on the Nile.
Sheikh Mohammed led a UAE delegation to Addis Ababa, which signed deals on trade and economic co-operation and laid the ground for development of greater cultural ties with Ethiopia