April 04, 2025
Ethiopia and the United Kingdom held their first political dialogue on March 26, 2025, at Lancaster House in London. The dialogue was conducted at the level of state ministers, with representatives from Ethiopia’s Ministry of Foreign Affairs and the UK’s Minister for African Affairs at the Foreign, Commonwealth, and Development Office. The dialogue centered on key issues such as promoting mutual economic growth, regional security, and migration, among others.
The UK government commended the implementation of comprehensive macroeconomic reforms in Ethiopia. The two sides underscored the importance of establishing broader investment, trade, and commercial partnerships, tapping into available lucrative opportunities in Ethiopia. They recognized the potential for UK firms to enhance their involvement in infrastructure developments, telecommunications, airport development, capital markets, tourism, and the agribusiness sector. Agreement is also reached to make joint efforts to further improve ease of doing business and ensure predictable sustainability and transparency regarding tax and tariff regulations.
The two sides also discussed Ethiopia’s drive to join the World Trade Organization and the UK’s support. The UK also pledged to continue supporting Ethiopia at international financial institutions in order to further deepen the ongoing implementation of macroeconomic reforms. The two countries agreed to make investment and trade the center of their relations in the years to come. The recent agreement reached between Asset Green and Ethiopian Investment Holding to establish an integrated agro-processing initiative was cited as a prime example of this collaboration.
The second topic addressed during the dialogue was regional security. Comprehensive updates on the overall conditions in the Horn of Africa were discussed extensively, and a potential collective approach was explored. The UK also emphasized the necessity for IGAD and the African Union to take the lead in the peacemaking efforts and to coordinate actions aimed at establishing a sustainable peace in the Horn of Africa. Given the complex security challenges, both parties agreed to coordinate the resources and opportunities emanating from Ethiopia’s membership to the AUPSC and UK’s membership to the UNPSC.
The two countries have also agreed to address issues of migration in the spirit of collaboration and addressing the root causes of illegal migration. The UK delegation expressed appreciation for the prompt actions taken by the Ethiopian government in response to requests from the UK Home Office.
In addition to political consultations, the Ethiopian delegation engaged in discussions with various researchers, ambassadors, and diplomats based in London at Chatham House. A separate business forum was also organized, which brought together private firms from the UK. The event saw the participation of more than 100 representatives from various companies who engaged in discussions regarding the current business environment in Ethiopia. The Commissioner of the Ethiopian Investment Commission, along with the Deputy Director of Ethiopian Investment Holdings, delivered a presentation outlining the prevailing business conditions in the country. Attendees were introduced to the Home-Grown Economic Reforms, the liberalization of critical public sectors, priority investment sectors, and incentives available for foreign investors.
The UK government is developing a new foreign policy strategy concerning Africa. With this framework as a guiding principle, it is intended to enhance the UK’s collaborative economic development with Ethiopia.