Canadian businesses are set to compete with their Indian and Chinese counterparts for contracts in Ethiopia after being impressed by the country's potential on a recent trade visit. Currently, trade between Ethiopia and Canada amounts to only about 35 million dollars, with Canada exporting 27 million dollars and Ethiopia exporting the remaining eight million. Though modest, in terms of Canadian merchandise, exports to Ethiopia ranked sixth in 2008 in sub-Saharan Africa. But compared to India and Chinese trade with Africa it is insignificant.
"After visiting this country, we have seen its true potential," said Nola Kianza, vice president of Canadian Council on Africa (CCAfrica), indicating the need to shake off the stigma attached to the continent among the Canadian business community. CCAfrica, the only pan-Canadian organization dedicated to the economic development of continent, was on a three day visit here for the first time, accompanied by partners from different sectors. The mission comprised Canadian education business, agri-food, engineering, infrastructure, natural resources, energy, finance and legal firms, as well as a business plan to increase bilateral trade.
After the visit, the leader of the mission, Mr Kianza, said the potential of the country "includes mining, agriculture, Agri-food, construction and others". Canadian companies are already participating in Ethiopia's hydropower and road projects. Also, in the mining sector there are currently five Canadian companies prospecting for minerals, oil and gas. Canadian registered investments in Ethiopia amount to more than 290 million dollars and are expected to grow with the mining exploration companies' activities.
Along with doing business with Ethiopian partners, Nola Kiaza said the mission is also focused on promoting the huge business opportunities that lie in the continent in general and Ethiopia in particular. Citing the recent agreements between the two governments, as well as companies, the Embassy of Canada in Ethiopia also indicated that there are encouraging signs that the volume of trade between the two countries will grow in the coming years. These include that in October 2003, Canada and Ethiopia signed a trade access memorandum of understanding which allows tariff-free access to Ethiopian exports of textile and apparel goods, and that in January 2010, Canada and Ethiopia signed an air service agreement that allows Ethiopian Airlines to fly to Canada.
The vice-president of CCAfrica said the case of Bombardier, a CCAfrica member, is also a sign that business between the two countries could see a surge in the near future. Eight Bombardier Q400 turbo-prop aircraft were sold in November 2008; the first aircraft will be delivered in March 2010. The embassy revealed the delivery of all eight aircraft will be completed this year.
"We hope that the arrival of these aircraft will make a significant contribution to the improvement of Ethiopia's domestic air transport services," said Ian Trites, Counsellor and Consul of the Canadian Embassy. Canada has, amongst others, the expertise in areas such as infrastructure and mining which could benefit Ethiopia.
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