Ethiopia and Algeria Agree to Enhance Economic Cooperation

A high-level delegation from Algeria led by Mohamed Arkab, Minister of State, Minister of Energy, Mines, and Renewable Energies, visited Ethiopia from March 24-25, 2025. The delegation included CEOs from SONATRACH, Algeria’s largest state-owned oil and gas company, and SONELGAZ, the national utility responsible for electricity and natural gas. The visit was organized following discussions between Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, and Abdelmadjid Tebboune, President of the People’s Democratic Republic of Algeria, during the 38th African Union Summit in Addis Ababa in February 2025.

Ethiopia and Algeria have enjoyed diplomatic relations since the 1960s and established a strategic partnership in 2013, making Algeria the only North African nation to hold such a partnership with Ethiopia.

On the first day of the visit, Arkab held bilateral talks with senior Ethiopian officials, including Kassahun Gofe, Minister of Trade and Regional Integration; Engineer Habtamu Itefa, Minister of Water and Energy; and Engineer Habtamu Tegegn, Minister of Mines. The discussions centered on enhancing economic cooperation across various sectors, with a commitment to translating discussions into actionable agreements.

Arkab and Kassahun emphasized the longstanding ties between their nations, emphasizing the importance of enhancing trade relations. They agreed to initiate beneficial technical and training exchanges and discussed ongoing reforms in both countries, committing to collaborate on their implementation.

In meetings with Habtamu Itefa, both ministers acknowledged their cooperation on regional, continental, and international issues of mutual interest. They recognized Ethiopia’s pivotal role in developing energy infrastructure in East Africa and Algeria’s significant contributions in North Africa. The ministers identified investment opportunities for Algerian firms in Ethiopia’s energy sector and vice versa, with Habtamu encouraging Algerian companies to engage in international tenders within Ethiopia’s energy landscape. Arkab expressed the interest of Algerian firms specializing in energy production and distribution to invest in Ethiopia, and they agreed to collaborate on capacity building in the energy sector, allowing for experience sharing and professional training.

Arkab also met with Engineer Habtamu Tegegn, who highlighted Ethiopia’s vast potential in the mining sector, particularly regarding mineral, geothermal, and petroleum resources. He elaborated on the significant deposits of rare earth metals such as Lithium, Tantalum, Cobalt, and Nickel, as well as established opportunities in gold mining, gemstones, potash, base metals, and iron ore. The minister invited Algerian investors to explore opportunities in this sector, and Arkab and his delegation expressed their interest to invest in Ethiopia in the mining sector.

The delegation toured the National Load Dispatch Center of Ethiopian Electric Power, where they commended Ethiopia’s power generation capabilities and agreed to collaborate on power transmission and distribution through shared experiences and professional training.

On the second day, Brook Taye, CEO of Ethiopian Investment Holdings (EIH), met with Rachid Hachichi, CEO of SONATRACH, and Mourad Adjal, CEO of SONELGAZ, along with their teams. Brook outlined the ongoing economic reforms in Ethiopia aimed at creating a more investor-friendly environment and invited Algerian companies to partner with EIH, particularly in fertilizer production and electricity distribution and transmission. The CEOs agreed to establish a joint technical committee soon to explore collaborative opportunities and implement their discussions into actionable projects.