Addis Ababa, January 12, 2026 (ENA)—Ethiopia and Japan have agreed to strengthen their strategic economic partnership with the aim of expanding investment flows and enhancing bilateral trade relations, following high level discussions held in Addis Ababa.
The understanding was reached during a business meeting between Ethiopia’s Minister of Finance Ahmed Shide, and a joint public private mission from Japan led by State Minister for Foreign Affairs, Kunimitsu Ayano.
The engagement brought together senior government officials and private sector leaders from both countries.
The Japanese mission, the third of its kind since 2008, included representatives from around 40 Japanese companies and a total of 48 participants from public and private institutions.
Officials said the size and composition of the delegation reflected growing Japanese interest in Ethiopia’s investment and trade potential.
During the meeting, Minister Ahmed Shide outlined Ethiopia’s ongoing reforms under the “Homegrown Economic Reform Agenda,” noting that the program is designed to promote private sector led growth and economic diversification.
He said current reform priorities focus on manufacturing and industrialization, energy development, agro processing, logistics, and the digital economy, alongside sector liberalization in telecommunications, technology, agriculture, and pharmaceuticals.
The minister stated that the government is working closely with relevant institutions to improve investment incentives, strengthen tax administration, ensure capital repatriation, expand public private partnership access to industrial parks, and implement robust PPP frameworks.
According to the ministry, these measures are intended to build a transparent and investor friendly environment for foreign companies operating in Ethiopia.
Members of the Japanese delegation raised operational concerns related to customs clearance delays, taxation clarity, and access to foreign currency.
In response, Minister Ahmed Shide pledged to address the challenges and announced the establishment of a dedicated “Japan Desk” within the Ethiopian Investment Commission to support smoother market entry and business operations for Japanese firms.
Ethiopia also invited Japanese companies to explore opportunities in emerging and strategic sectors, including venture capital for mobility startups, space technology, digital innovation, industrial development, energy, agro processing, and logistics.
Japanese participants expressed particular interest in infrastructure and transport projects, including potential investment linked to the Bishoftu International Airport.
The mission concluded with bilateral discussions aimed at deepening economic cooperation and sector specific collaboration, held in the presence of State Minister Semereta Sewasew, Japan’s Ambassador to Ethiopia Shibata Hironori, Ethiopia’s Ambassador to Japan Daba Debele, and senior officials from the Ministries of Finance and Foreign Affairs.