Malaysia ready to expand trade with Ethiopia, says PM

Prime Minister Anwar Ibrahim attended the Ethiopia-Malaysia High Level Business Forum at the Addis International Convention Centre. (Bernama pic)

ADDIS ABABA: Prime Minister Anwar Ibrahim has once again expressed Malaysia’s readiness to expand trade with Ethiopia, saying the African nation’s reforms, logistic aspirations and its young, dynamic workforce serve as a strong foundation for deeper cooperation.

Anwar highlighted Ethiopia’s enormous potential with its reform agenda and infrastructural and economic growth in the last five to six years.

He stressed the need for the two governments to engage more closely for shared economic vibrancy and democratic resilience.

“We have wasted time, years, and I think it’s for you (Malaysians) now to initiate a better understanding with one another.

“We cannot just wait for negotiations with the US (on tariffs) or our dependence on traditional (trade) routes between the nations to open up.

“One of the reasons we are here is for the future. We are for multilateralism and we have to penetrate new markets,” he said at the Ethiopia-Malaysia High Level Business Forum at the Addis International Convention Centre here.

Ethiopian president Taye Atske-Selassie Amde said his country and Malaysia were at a pivotal juncture in charting a new cooperation defined by action, not just aspiration.

He highlighted Ethiopia’s reform programmes that set the foundation for business, trade, and investments, including an enabling investment ecosystem with a progressive regulatory framework, and positioning the country at the forefront of connectivity.

“This is massively supported by our strides in digitalisation, which is fast driving financial inclusion and modernisation of our economy,” he said.

He stressed the importance of the two nations achieving a more balanced trade, saying that between 2019 and 2023, imports from Malaysia, including palm oil, totalled around US$1.8 billion, while Ethiopia’s exports to Malaysia totalled about US$53 million.

“We do not see this imbalance as a problem. We see it as a great opportunity and of course as an invitation for you to come and prosper with us,” he said.

Also in attendance at the forum were investment, trade, and industry minister Tengku Zafrul Aziz, federal territories minister Dr Zaliha Mustafa, Ethiopian Investment Commission commissioner Zeleke Temesgen, and Kassahun Gofe, the African nation’s trade and regional integration minister.

Kassahun pointed out that Ethiopia was home to a large consumer market of 130 million people fuelled by an expanding middle class and growing cities such as Addis Ababa.

The country, he said, was a ready market for Malaysian consumer goods and its expertise in areas such as retail and logistics.

Ethiopia was Malaysia’s 26th largest trading partner in Africa in 2023, with bilateral trade amounting to RM446.8 million.

Malaysia’s exports to Ethiopia totalled RM358.6 million, an increase of 24.6% from the previous year, and mainly comprised electrical and electronic goods, palm oil-based products, chemicals, textiles, apparel and footwear.

The trade balance for 2023 was in Malaysia’s favour.

While bilateral trade between the two nations grew strongly by 40.1% in 2024 to reach RM626 million, it remains relatively modest, and Anwar’s official visit to Addis Ababa from Nov 18-20 is aimed at exploring untapped potential.