Ethiopia, Canada Strengthen Relations with Push for Direct Trade and Investment

Addis Ababa, July 31, 2026 (ENA) — Ethiopia and Canada are stepping up efforts to strengthen bilateral relations by expanding direct trade and investment, with both countries seeking to establish commercial links that will enable Ethiopian exports to reach the Canadian market without intermediaries.

In an exclusive interview with ENA, Ethiopia's Ambassador Extraordinary and Plenipotentiary to Canada, Tewodros Girma, said the renewed focus on direct trade reflects the two countries' commitment to advancing economic cooperation beyond their longstanding political and people-to-people partnership. 
As Ethiopia and Canada mark six decades of diplomatic relations, the ambassador noted that both governments are working to elevate economic ties by creating new opportunities for trade, investment, and business collaboration. 

The two countries established formal diplomatic relations in 1965, following Ethiopia's opening of diplomatic representation in Canada in 1962.  

Since then, the partnership has grown steadily, with recent efforts placing greater emphasis on strengthening commercial engagement and expanding direct market access for Ethiopian exports.

"This year we are celebrating 60 years of anniversary of our bilateral relationship, which has endured through several progresses that we can tell, be it in economic, diplomatic, and people-to-people ties," the ambassador said. 

He noted that both countries are now prioritizing expanded trade and investment as Ethiopia advances broad economic reforms designed to create a more competitive and business-friendly investment environment. 

According to him, the first phase of Ethiopia's macroeconomic reform program successfully opened previously restricted sectors to foreign investors, including telecommunications, while the second phase is focused on improving the overall business climate and strengthening macroeconomic stability. 

"The first phase has been implemented fully, which mainly focused on opening up our economy for international competition, opening the door for foreign companies to come and compete with our local companies, mainly in those areas which were exclusively closed for foreign investors like telecom sectors," he said. 

The second phase of our reform is focusing on improving our macroeconomic posture, mainly in creating a more conducive environment for ease of doing business in Ethiopia, he added.  

Ambassador Tewodros said the reforms have created favorable conditions for Canadian companies seeking opportunities in Ethiopia, particularly in mining, manufacturing and agriculture. 

While bilateral commercial relations have traditionally been anchored in aviation, with Ethiopian Airlines operating more than 36 Canadian-manufactured Bombardier Q400 aircraft, he said both countries are now seeking to diversify cooperation into broader areas of trade and investment. 

A key priority, he explained, is creating direct commercial connections between Ethiopian exporters and Canadian importers to increase the presence of Ethiopian products in the Canadian market. 

Although Ethiopia exports coffee, textiles, sesame and cut flowers to Canada, most of these products currently reach Canadian consumers through intermediaries based in countries such as the United States and the Netherlands. 

"Now we are mainly focusing on creating a direct link between Ethiopian exporters and Canadian importers in terms of our exportable items, focusing on the coffee sector," Ambassador Tewodros said. 

He stressed that the main obstacle is not market access. 

"Frankly speaking, there is no legal barriers, no tariff barriers that are hindering our imports here. But the very fact that our exporters and Canadian importers didn't have that strong relationship is causing this problem. So, we are trying to target in solving this problem from the root," he stated. 

The ambassador expressed confidence that stronger business-to-business engagement will expand Ethiopia's exports, enable producers to retain greater value and further strengthen the economic partnership between Ethiopia and Canada as the two countries commemorate six decades of diplomatic relations.