DAR ES SALAAM, Aug 31 (NNN-GNA) — The entry of Ethiopia into Brics is likely to spur increased trade and investment relations with the East African Community (EAC) bloc, according to Ethiopia’s ambassador to Tanzania.
The Horn of Africa country, the second most populous in sub Saharan Africa, is currently one of the fastest growing economies in the continent.
Shibru Mamo Kedida said Ethiopia’s entry into Brics would have a positive impact on the Horn of Africa and East Africa.
“It would serve as a catalyst for increased business relations. Ours is the continent’s fastest growing economy which can have a trickle effect on the neighbours,” he said in an interview.
Shibru said Ethiopia remains an important market for the EAC bloc with its 120 million population, 70 per cent of whom are youth.
Ethiopia, Egypt, Saudi Arabia, Iran, United Arab Emirates and Argentina were announced new members of Brics during a summit held in South Africa last week.
The six states joined five Brics members – Brazil, Russia, India, China and South Africa – which founded the group in 2001 to counter dominance of western countries in the world economy.
The Brics nations are also considered a geopolitical rival to the G7 of leading advanced economies in the world which have the likes of the US, UK, Japan, Germany, France, Canada, and Italy.
Prior to the entry of the new members, Brics encompassed 27 percent of the world’s land surface and population.
Five founder members of the bloc, doubled as members of the superrich G20, which has a combined nominal GDP of $28 trillion or 27 percent of the gross world product.
The five – Brazil, Russia, India, China and South also had a total GDP (PPP) of around $ 56.6 trillion (32.5 percent) of global GDP (PPP and an estimated $4.46 trillion in combined foreign reserves.
Full membership of Ethiopia and five other new members of the bloc will take effect on January 1st, next year.
The African continent will now have three countries on board; South Africa which is a founding member, Ethiopia and Egypt, the second strongest economy in Africa.
Shibru said his country was proud to join Brics in that it has raised the country’s stake in the continent’s economic growth and geopolitical dynamics.
“Ethiopia is a non-colonised country, the cradle of mankind, the original home of coffee and the African Union seat.”
The ambassador said with the recent opening of the Grand Hydropower Dam on Ethiopia’s Blue Nile, his country would export power to other states within the EAC and Horn of Africa.
Shibru acknowledged that trade and investment relations between his country and Tanzania were “minimal to say the least,” but hinted he was seeing light at the end of the tunnel.
“We have strong relations with Tanzania. We will soon revive our joint ministerial commissions on different sectors to roll out our partnership.”
Mr. Shibru added that the Ethiopian Chamber of Commerce and Industry would soon reach out to its counterparts in Tanzania to seek ways to promote bilateral trade and investments.
