Addis ababa: Ethiopia’s fully liberalised financial industry presents a promising opening for Malaysian banks, particularly in Islamic finance, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He noted that a Malaysian delegation, including major players such as Maybank and CIMB, engaged with their Ethiopian counterparts at the Ethiopia-Malaysia High-Level Business Forum.
According to BERNAMA News Agency, Tengku Zafrul had discussions with Finance Minister Ahmed Shide, who expressed openness to Malaysian financial institutions, especially in Islamic banking. He highlighted Ethiopia’s liberalised financial industry as a key factor in these discussions, following Prime Minister Datuk Seri Anwar Ibrahim’s official visit.
Tengku Zafrul pointed out the immense potential for Malaysian investments in Ethiopia, a country with a young population of about 130 million. He acknowledged that while Ethiopia’s GDP per capita is not as advanced as Malaysia’s, the country’s GDP growth was 9 percent last year. He identified other quick win sectors such as manufacturing, property development, logistics, automotive parts, the halal industry, and pharmaceuticals.
The minister emphasized the potential for deeper cooperation in high-potential sectors such as digital technology, renewable energy, and Islamic finance. This collaboration aims to position Ethiopia as a strategic gateway for Malaysian products entering the continent. Additionally, he encouraged Ethiopian companies and investors to explore opportunities in Malaysia, ASEAN, and the Asia-Pacific region.
Tengku Zafrul also discussed the support from Anwar and Ethiopian President Taye Atske-Selassie Amde for establishing a Malaysia-Ethiopia Business Chamber. He mentioned plans to work through the National Chamber of Commerce and Industry to facilitate the formation of this business chamber upon returning to Malaysia. Furthermore, he highlighted the need for a joint commission or trade committee to support bilateral business initiatives.
In 2024, Ethiopia was ranked as Malaysia’s 26th largest trading partner in Africa, with bilateral trade valued at RM625.6 million. Malaysian exports to Ethiopia, which include electrical and electronic products, palm oil, chemical products, and textiles, grew by 50 percent from the previous year to RM579.9 million. Imports from Ethiopia mainly consist of agricultural products, transport equipment, and metalliferous ores and metal scrap, with the trade balance favoring Malaysia.