Ethiopia holds strategic importance for Korea’s broader African vision, particularly in trade and investment, said Ethiopian Ambassador to Korea Dessie Dalkie Dukamo in a written interview with The Korea Herald.

Citing Ethiopia's geopolitical location, infrastructure, population, economic potential and stability as major factors, Dukamo positioned his country as a key economic and diplomatic partner for Korea’s engagement with Africa.

"Ethiopia is situated in the Horn of Africa, serving as a gateway between Africa and the Middle East," he said, underlining the country's proximity to shipping routes such as the Red Sea and the Suez Canal.

The Horn of Africa refers to the easternmost region of Africa, encompassing Djibouti, Eritrea, Ethiopia and Somalia -- countries whose cultures share deep links.

Ethiopia's proximity to shipping routes such as the Red Sea and the Suez Canal makes the African country a key commercial and logistical hub, according to Dukamo.

"South Korean companies see Ethiopia’s potential in textiles, manufacturing and construction, but investment remains below expectations," Dukamo noted, citing a lack of awareness and certain perceived risks. He suggested that "enhancing information transmission through trade shows and investment guides" could bridge this gap.

South Korea actively supports Ethiopia’s development in education, health, energy and technology transfers. "Korea’s expertise in ICT, agriculture and renewable energy presents great collaboration opportunities," he added. To attract investors, Ethiopia is offering "duty-free imports, tax rebates and investment guarantees."

Highlighting Ethiopia’s nearly 10 percent annual GDP growth, Dukamo stressed its "strategic location as Africa’s gateway and access to a 1.3 billion-person market through AfCFTA."

AfCFTA is the largest free trade area globally, encompassing 54 of the 55 African Union members and a combined GDP of $3.4 trillion.

He also pointed to green energy initiatives like the Grand Ethiopian Renaissance Dam, Africa’s largest hydroelectric project.

"Investing in Ethiopia means contributing to sustainable development in one of Africa’s most promising economies," Dukamo said. "Together, we can build a future that benefits us all.”

Asked why Ethiopia holds strategic importance for Korea's broader Africa vision in trade and investment, the ambassador underscored that Ethiopia has 126 million people as of 2023, making it Africa’s second most populous country.

Reports suggest that demographic changes in Africa will have a significant impact on the global order.

United Nations projections estimate that Africa's population will reach nearly 2.5 billion by 2050, meaning that over 25 percent of the world's population will be African.

"This vast and growing consumer base presents significant opportunities for Korean companies looking to enter the African market,” he said, citing Ethiopia as one of Africa’s fastest-growing economies due to homegrown economic reforms.

According to Dukamo, Ethiopia's potential and its establishment of industrial parks and special economic zones to attract foreign investment align with Korea’s strengths in construction, technology and manufacturing.

"Korean companies, particularly in textiles and manufacturing, have already invested in these zones, benefiting from tax reductions and access to a young, low-cost labor pool,” he said.

The Ethiopian government has made significant investments in infrastructure, including roads, railways and energy projects.

“Korean enterprises, known for their infrastructure development capabilities, are well-positioned to participate in these projects directly or through public-private partnerships,” said Dukamo.

As for how Korean businesses can expand in Ethiopia, Dalkie suggested promoting Korean business associations, investment incentives, encouraging public-private partnerships, and activating bilateral agreements.

Diplomatic stability

Dukamo also underlined that due to global supply chain disruptions, Korea is seeking to diversify its raw material and manufacturing bases, and that Ethiopia's stability and strong diplomatic ties with Korea could support trade and investment.

The two countries' historical bond dates back to the support of over 6,000 Ethiopian troops who defended South Korea in the Korean War.

“Ethiopia’s substantial natural resources and developing industrial base make it an appealing option for Korean enterprises looking to reduce dependency on traditional markets,” Dukamo said, noting South Korea’s collaboration with Ethiopia through aid and technical assistance.

“This engagement strengthens bilateral relations and creates opportunities for Korean businesses to enter the Ethiopian market,” he added.

A key ally since the Korean War, Ethiopia is Korea’s top development partner in Africa.

Direct flights between Incheon and Addis Ababa have boosted connectivity as Korea seeks to expand ties beyond development cooperation in areas such as trade, investment and culture.

“When we evaluate economic cooperation and potential follow-up actions, South Korea and Ethiopia's trade has been growing but remains relatively modest,” he said when asked about his assessment of Korea-Africa ties since a summit held last year.

South Korea primarily exports machinery, electronics and vehicles to Ethiopia, while it imports agricultural products such as coffee, cut flowers and sesame seeds, he said, adding that there is significant potential to expand and diversify trade between the two nations.