The government of United Arab Emirates (UAE) pledged to $3 billion investment to support Ethiopian government after the two countries signed a joint investment deal on Friday.
The amount is expected to ease Ethiopia’s ongoing foreign currency shortage.
The Arabian Peninsula nation deposited $1 billion in Ethiopia’s foreign currency strapped National Bank and $2 billion more into various investments.
Sheikh Mohammed bin Zayed bin Sultan Al-Nahyan, the crown prince of Abu Dhabi who is currently in the Ethiopian capital Addis Ababa for a two-day official visit. He has signed the agreement with the Ethiopian government.
“UAE’s financing will significantly help boost investment activities in Ethiopia,” Ahmed Shide, Ethiopian minister in charge of Government Communication Affairs Office told reporters.
Investments in industrial park development, Ethiopia’s manufacturing sector, healthcare as well as hospitality sector are said to be UAE ‘s major areas of interest through the remaining two billion USD.
The cooperation agreements provide for UAE investors to engage in the construction of large-scale real estate development, Shide said, adding they would also be involved in the hospitality sector in Ethiopia
After Ethiopia recently announced that it would partially privatize its major state-owned enterprises as a solution to the serious shortage of foreign currency, many UAE investors have shown interest in the country.
The two countries also on Friday inked a treaty to waive visa requirement for diplomats from both counties.
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