Ethiopia Attracting Increasing Attention from Japanese Companies, Says Japan's State Minister

Addis Ababa, January 13, 2026 (ENA)— Ethiopia’s growing role as a regional logistics hub and industrial base is attracting increasing attention from Japanese companies seeking opportunities in Africa, according to Japan’s Foreign Affairs State Minister Kunimitsu Ayano.

Speaking at the Ethio-Japan Business Forum held today in Addis Ababa, the State Minister said Ethiopia’s strategic position, expanding aviation network, and integration into the African Continental Free Trade Area (AfCFTA) are enhancing its appeal as a gateway to regional markets.

 

 

The second-most populous African nation is emerging as a major future market for Japanese firms, she stated, adding that the country’s air connectivity, anchored by Ethiopian Airlines’ extensive continental routes, further strengthens its competitiveness as a logistics center.

Ayano said that Japan supports Ethiopia’s ongoing macroeconomic reforms aimed at transitioning toward a private-sector-led economy.

She cited the progresses in foreign exchange liberalization, opening sectors to foreign investment, and improving the business environment.

According to her, Japan is providing bilateral assistance to enhance Ethiopia’s manufacturing and agricultural productivity, while encouraging continued reform to improve administrative efficiency and contract enforcement, among others, to attract more foreign investors.

At the forum held today, 35 Japanese companies have participated, reflecting growing business interest between the two countries.

Speaking at the event, Trade and Regional Integration Minister, Kassahun Gofe, said Ethiopia and Japan share a long-standing partnership that is now poised for deeper trade and investment cooperation driven by Ethiopia’s ongoing reforms.

The Minister stated that bilateral trade continues on a positive trajectory, with Japan showing rising demand for Ethiopian agricultural exports such as coffee, sesame, and cut flowers, alongside growing interest in value-added products, including textiles.

 

 

Kassahun further emphasized Ethiopia’s commitment to regional and continental integration through AfCFTA, which offers access to a unified market of more than 1.4 billion people, and called on Japanese investors to leverage Ethiopia as a production and export base for Africa.

Praising Japan’s global leadership in advanced manufacturing, automotive and electronics, green technology, agro-processing, and human resource development, he noted that deeper cooperation in these areas would support Ethiopia’s modernization through technology transfer and integration into global value chains.

 

 

Ethiopian Investment Commissioner Zeleke Temesgen said Ethiopia’s fast-growing economy and favorable demographic profile position the country as a strategic base for investment in Africa.

He highlighted Ethiopia’s connectivity, logistics infrastructure, and proximity to major markets in the Middle East and Europe as key advantages for Japanese firms seeking regional access.

 

 

Ethiopia is strengthening its investor-friendly ecosystem by enhancing transparency, predictability, and regulatory reforms while offering competitive incentives such as tax exemptions and logistical support, the Commissioner added.

He invited Japanese investors to engage in the priority sectors, including manufacturing, agriculture, ICT, renewable energy, electric mobility, tourism, mining, and other emerging industries.

Zeleke also stressed the government’s commitment to creating a stable and supportive environment for long-term investment.

The Ethio-Japan Business Forum brought together government officials, business leaders, and representatives of more than 30 Japanese companies to explore trade, investment, and industrial cooperation opportunities.

The participants discussed Ethiopia’s reform agenda, logistics potential, manufacturing development, and access to regional markets, with the forum serving as a platform to strengthen bilateral economic ties and encouraging concrete partnerships, joint ventures, and future investments between Ethiopia and Japan.