Addis Ababa, Ethiopia — Indian Prime Minister Narendra Modi arrived in Ethiopia on Tuesday for a two-day official visit aimed at deepening political, economic, and strategic ties between New Delhi and one of Africa’s most influential states.
Modi held talks with Ethiopian Prime Minister Abiy Ahmed before meeting members of the Indian diaspora in Addis Ababa. The Indian leader received a warm welcome, marked by traditional Indian dance performances, crowds waving Indian flags and chanting his name, and a Hindi-language musical performance by Ethiopian artists at his hotel.
In a statement, Modi said he would later address a joint session of the Ethiopian parliament, underscoring the importance New Delhi places on its relationship with Addis Ababa.
From India’s perspective, Ethiopia is a pivotal economic and geostrategic partner in Africa, particularly as competition for influence on the continent intensifies, notably with China. Ethiopia’s hosting of the African Union headquarters gives it outsized diplomatic significance, while its admission into the expanded BRICS bloc in 2024 has further elevated its global standing.
Economically, Ethiopia is viewed in New Delhi as a recovering and high-potential market where India already has a long-established presence. More than 175 Indian companies operate in the country, largely concentrated in the textile sector. While earlier Indian investments in agriculture slowed due to fiscal and operational challenges, India’s focus has increasingly shifted toward Ethiopia’s strategic mining sector.
Ethiopia possesses substantial, largely untapped reserves of critical minerals and rare earth elements essential for renewable energy technologies, batteries, and semiconductors. Despite regulatory and infrastructure hurdles, Indian policymakers see these resources as a significant opportunity. This interest has been reinforced by a recent study conducted by the Indian Embassy in Addis Ababa highlighting Ethiopia’s mineral potential. Expanded cooperation in mining could help India secure vital supply chains for its growing industrial and clean-energy ambitions.
As Ethiopia seeks to attract greater Indian investment in pharmaceuticals, agro-processing, mining, and light manufacturing, India is also looking to leverage Ethiopia as a gateway to broader African markets through the African Continental Free Trade Area (AfCFTA).
Officials on both sides expect Modi’s visit to yield several new bilateral agreements, reinforcing Ethiopia’s role as a strategic anchor for India’s Africa engagement and signaling a deepening partnership with implications extending well beyond the Horn of Africa.
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