Ethiopia: Country to Increase Trade Up to 5 Billion Dollars with Nigeria

Ethiopia: Country to Increase Trade Up to 5 Billion Dollars with Nigeria

Kaleyesus Bekele


Ethiopia and Nigeria are planning to increase the bilateral trade and investment portfolio between the two countries up to five billion dollars in the next five year in the wake of the three-day visit paid recently to Ethiopia by President Olusegun Obasanjo of Nigeria.

To realize the ambitious plan, Nigeria-Ethiopia Business Association (NEBA) has proposed the accelerated Trade and Investment Bilateral Agreement (ATIBA) initiative. NEBA, which was established ten years ago, has been undertaking a study on the common trade and investment interests between the two countries. Based on the review, NEBA identified aviation, oil and gas, mineral exploration, telecom, meat products, leather, coffee, tourism, capital market development and financial services as the common bilateral trade and investment interests.

In the second Nigeria-Ethiopia business conference held last Monday at the Sheraton Addis, Mr. Emmanuel Okereke, deputy president of NEBA, said that the association will identify impediments, resources talents, stakeholders and will develop a creative framework for implementing ATIBA Mr. Okereke proposed that Ethiopian and Nigerian governments must sign ten protocol agreements which would enable them to implement ATIBA. Financial protocol and trade payments initiative, balanced reciprocal visa regime, aviation development and liberalized tariff are some of the agreements that should be signed. "Our leaders must work on creating a favorable environment for trade and investment. Ethiopia is the political capital of Africa, and Nigeria is the major driving force for African continental development. With a combined population of over 200 million the two nations will create geopolitical balances on the east-west axis of Africa," Okereke said.

According to NEBA, the Central Banks of Ethiopia and Nigeria should implement a financial protocol that would simplify the payment system between the two countries. NEBA believes that the signing of financial and trade payments protocol would enable the countries to start corresponding banking service. "The protocol could trigger the creation of an African trading currency (ATC), in the form of payment. This could serve as a learning threshold for the ultimate creation of a single African currency," Okereke said.

NEBA also believes that the two nations must implement a balanced reciprocal visa regime, which simplifies the visa processing system. It was noted that long-term multiple visas will be imperative. Concerning the aviation industry, NEBA said that Ethiopian and Virgin Nigeria could acquire the existing local Nigerian airlines and could create a special purpose company. According to NEBA the proposed company could establish a maintenance facility in Nigeria that serves western and central Africa. NEBA has proposed the establishment of an aeronautical university in Ethiopia.

Ethiopian has daily flight to Lagos. President Olisegun Obasanjo who attended the conference has advised Ethiopian to start a regular cargo transport service between the two nations. "Ethiopian has a good reputation. The private airlines in Nigeria have continued to take advantage of Ethiopian's excellent maintenance facility," president Obasanjo said.

In a joint ministerial meeting held last April the two governments agreed to cooperate in establishing stock exchange in Ethiopia. The Nigerian stock exchange will train Ethiopian capital market operators, regulators and stockbrokers for the proposed Ethiopian stock exchange.

Among many other sectors, telecommunication would be one area of cooperation. NEBA disclosed that the Nigerian Communications Commission and the Ethiopian Telecommunications Agency could cooperate in developing and expanding the GSM market in Ethiopia.

The two nations also plan to work in the oil and gas sector. Mr. Okereke said that the Nigerian National Petroleum Corporation, in collaboration with National Oil Company of Ethiopia, could establish a petroleum training institute in Ethiopia. "They could explore the possibility of building a refinery in the fringes of Ethiopia or Djibouti," he added.

President Olusegun, who paid a three-day official visit to Ethiopia, said that the two parties will negotiate on how to avoid double taxation and to start corresponding banking service. Olusegun urged the Nigerian and Ethiopian businesspeople to strengthen their business ties. "I have a cordial relationship with Prime Minister Meles. Whatever I tell him to do he will do. And whatever he tells me to do I will do. Why can't you do the same?" he asked.

Eyessus W. Zafu, president of the Addis Ababa Chamber of Commerce and sectoral associations, on his part, said that he lived in Nigeria for 16 years, adding that he was familiar with the Nigerian people. "I lived with them and I worked with them. They are simple, generous and forgiving people. They have different skills and experiences. I believe they are nice people to work with," Eyessus said.

At the end of the three-day visit Ethiopia and Nigeria last Tuesday signed trade culture and tourism cooperation agreements and a mutual recognition agreement on standardization to further strengthen their cooperation in those fields.