Addis Ababa( Ethiopia Today) May 31, 2023: Russian automakers are eyeing Ethiopia as a potential destination for establishing an assembly plant, seeking price competitiveness and diversification away from Western influence, Russia Briefing reports.
Discussions on economic cooperation between Russian and Ethiopian officials have taken place, highlighting Ethiopia’s importance as a long-standing Russian partner in Africa. In addition to the automotive sector, Russia is also interested in securing port access in the region, potentially opening up new trade routes and opportunities.
The potential move to Ethiopia would offer Russian manufacturers access to markets beyond Russia and the Eurasian Economic Union (EAEU), including the Middle East, East Africa, and South Asia. With the projected economic growth in these regions, the demand for vehicles is expected to rise, presenting an opportunity for Russian automakers to tap into new markets.
In related news, Kenya is set to sign a trade pact with Russia to enhance cooperation between businesses. The agreement comes as Russia intensifies its efforts to strengthen economic ties with Africa, seeking to counterbalance strained relations with the West following its deployment of forces in Ukraine.
Additionally, Russia is preparing to host an Africa-Russia summit in St. Petersburg in July, further underscoring its commitment to deepening engagement with the African continent.