Ethio-Malaysia Relations
1. Historical
background
The Diplomatic relation between Ethiopia and Malaysia was
established in 1965, Malaysia established its Embassy in Ethiopia in the same
year. It was the second mission that Malaysia had established in Africa next to
Egypt.
The Diplomatic relations between the two countries became
delicate during the Derg Regime and as a result of which Malaysia has closed
its Embassy in 1982.
Since the establishment of the FDRE government, both
countries have been keen to reinforce the overall relations. In this
connection, higher officials and delegations have started making various visits
starting from the 1990s. Malaysian delegation led by the special envoy of the
Malaysian Prime Minister, Dr.Mahattir Mohammed, has visited Ethiopia in
November 1997. The late Prime Minister of Ethiopian H.E Meles Zenawi and his
delegation visited Malaysia in October 1998. During this visit, the two
countries have signed treaties on Economic, Scientific, Technical Cultural, Investment
and Trade. The delegation has also included a business team aimed at strengthening relations between the private
sectors of the two countries.
The commencement of direct flight by Ethiopian Airlines to
Kuala Lumpur, capital of Malaysia is expected to play a major role in the
promotion of trade and investment. It is also anticipated that it will create a
good opportunity to strengthen the people to people relation between to the
countries.
A delegation led by Malaysian Primary Industry Minister H.E.
Mrs. Tersa Kok visited Ethiopia from October 1-4/2019 and met with H.E. Misganu
Arega (ambassador), State Minister for the Ministry of Trade and Industry and
other officials, and discussed how to strengthen the trade and investment
between the two countries. The delegation has also commenced a seminar on palm
oil with stockholders.
2.1 Trade
Trade between the two countries is showing a progressive trend in recent years. In 2017 Ethiopia has imported products worth
340,705,770.51 USD and exported items worth 723,616.49 USD. Ethiopia exports
leather and leather products, raw meat and vegetable products to Malaysia and
imports sugar, cotton, fatty acid, vegetable oil, paper, and paper products,
Medical equipment, soap, and Detergent.
2.2 Investment
Currently, there are six investors from Malaysia registered
by the Ethiopian Investment Commission.
3. Lessons for
Ethiopia from Malaysia’s strength
Import and
Export licensing
Not all goods, whether imported or exported, require a
license. However, having a robust understanding of Malaysia’s license schemes
for imported and exported goods will save traders from being rejected by custom
officials.
Malaysia uses privatized single digital window for all
import and export regulations called DAGANG NET.
Since Ethiopia is on the way to privatize some State Owned
Enterprises, modernizing the Ethiopian Revenue and Customs Authority
should be taken into consideration in order to provide quality service and
investment attraction. Digital and one window service is also Malaysia’s best
experience that Ethiopia could share.
Ethiopia is strengthening its diplomatic and economic
relations with most of the Asian countries, but the overall relationship of
Ethiopia and Malaysia are not at the desired level. The enhancement of the
economic relationship between the two countries can play their own role in achieving
Ethiopia’s Growth and Transformation Plan. Promoting Ethiopian export products
to Malaysia, organizing the Business to Business (B2B) forum and sharing
experiences, helps to strengthen the economic relations with Malaysia.
