Promising Ethiopian Markets for Yemeni Exportation [Archives:2001/16/Business & Economy]
Yemen and Ethiopia are working to enhance their mutual economic and trade ties, and promote investment partnerships between business-men of both countries. A Yemeni delegation is expected to pay a visit ,mid April 2001, aiming at the expansion of trade and a progression in bilateral relations.
The visit is a result of positive steps by the Joint Yemeni-Ethiopian Ministerial Committee during two meetings. The second of which an agreement to widen joint business works, and the signing various mutual agreements took place.
Previously, in April 1999, Sana’a had observed the first meeting held by this joint committee. Here seven agreements and protocols were signed which included developing relationships in the fields of economics, agriculture, investment, finance, tourism, industry and the promotion of exports.
Reflecting this cooperation, both countries agreed to arrange trade exhibitions in Yemen and Ethiopia. This comes in accordance to the agreement which was signed in Sana’a during 1992, where implementation of this agreement had been agreed upon to continue until the year 2002.
Relationships between both countries are based on promoting exports through encouraging private-sector businessmen to workout trade data exchange in order to serve economic investment and trade activities.
For Yemen, Ethiopia is a promising market for agricultural products, oil, liquefied-gas and other industrial products. In return, Ethiopia would obtain good Yemeni markets for its livestock, honey, tea, paper, saffron and other Ethiopian spices.
During 1999, the two countries, signed a special agreement dealing with investment encouragement which is expected to functionalize the promotion for the joint investment projects. The agreement also stated the importance of increasing cooperation in exchanging agriculture, data and experiences . It emphasized, vegetarian production data-exchange, nurseries production, research, analyzes, and agriculture protection. According to the agreement, Yemeni experiences in fruits and mango production, in addition to the exchange of experience in the field of production and protection of animal wealth will be beneficial.
Yemeni businessmen hope that facilities in both countries will be present to assist in finding direct contacts with their Ethiopian counterparts. This will facilitate partnerships contracts related to opportunities available for the Ethiopians in the Aden Free Zone.
According to statistics issued by the Central Statistics Board of Yemen, Yemeni exports which arrived in Ethiopian markets during 1998 had a value of about YR392 million, which is a decrease of YR171 million from 1997. This was due to the Yemeni oil exported to Ethiopia in addition to a similar international decrease.
Moreover, the statistics showed the Yemeni importations from Ethiopia to be estimated at about YR216 million. The source also mentions Ethiopia ranking number 25 among major countries importing from Yemen during 1997. Ethiopian importation for Yemen at that time was estimated to be YR572 million.
In addition to oil-extracts, Yemen presently exports to Ethiopia, mainly macaroni, biscuits, cigarettes, soap, plastic and manufactured aluminum goods. In return, Yemen imports coffee, peanuts, sesame seeds, leather and spices.