India plans to increase its investment in Ethiopia through sectors including power generation, rail construction and IT, an Indian government official said on Wednesday.Junior Trade Minister Jairam Ramesh said there was enthusiasm among Indian businesses towards the vast Horn of Africa nation, in which India has already invested close to $4 billion.
“India is hoping to invest in power generation, railway line construction, IT development and tea plantations, leather goods and textile production,” Ramesh said during talks with Ethiopian trade officials during a visit to the country.
He did not give specific details of projects.
Banking on its relative proximity to Africa, close historical ties and large diaspora community, India is increasingly looking at Africa as an investment destination and source of resources for its booming economy.
Ramesh said the nearly $4 billion Indian investment in Ethiopia so far included in the flower industry, agriculture, mining and sugar estates. This has boosted Ethiopia’s economic growth and provided employment for thousands, he said.
Scores of Indians are engaged in flower production, which has now become a new source of hard currency for Ethiopia.
India is also a major investor in the Tendaho Sugar Enterprise, being built using a $640 million loan provided by an Indian state-owned bank.