June 19 2018

UAE gives Ethiopia much needed forex

Source: Asoko Insight

The Crown Prince of the United Arab Emirates (UAE) marked his visit to Ethiopia by agreeing to inject more foreign currency into the country, providing a boost to Ethiopia’s manufacturing sector.

On day one of his two day official visit to Addis Ababa Sheikh Mohammed bin Zayed bin Sultan Al-Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE’s Armed Forces, met with PM Abiy Ahmed (PhD) and President Mulatu Teshome (PhD). PM Abiy surprised many by driving the Prince himself on the way from Bole International Airport to Bole Lemi Industry Park.

According to the information disclosed on Friday, the UAE agreed to shoot USD one billion into the national coffer within few days. According to reports when PM Abiy visited the Gulf States recently, he convinced leaders to allocate Ethiopia much needed cash.

In March the government reported there was less hard currency than expected and representatives from the manufacturing industry have reported on the dire effect lack of hard currency has on their ability to produce.

Industries have suspended or reduced production or reportedly only have enough cash to operate for a few weeks.

Now that help is on the way from the UAE, industry representatives are asking the government to give them priority over public projects.

In the agreement the UAE also promised to invest an additional USD 2 billion in different sectors.

The two countries have also agreed to waive visa conditions for diplomats of the two countries.