Ethiopian Chamber of Commerce and Sectorial Associations



TRADE AND INVESTMENT RELATION BETWEEN ETHIOPIA AND RUSSIAN FEDERATION RUSSIAN FEDERATIONFull NameRussian FederationPopulation 142.4 Million (UN 2012)CapitalMoscoMost Populated CityMoscoArea17,098,242 Sq Km Major LanguageRussianMajor ReligionRussian Orthodox ChristianityLife Expectancy64 for Men and 76 for Women(UN)Monetary UnitRussian RubleInflation6.8 %GDP2.553 TrillionGDP Growth1.3 %GDP by SectorAgriculture 4.2%, Industry 37.5%, Service 58.3%GNI Per CapitaUS Dollar 18,100Export515 BillionMain ExportPetroleum and petroleum products, natural gas, metals, wood and wood products, chemicals, wide variety of civilian and military manufacturesMain Export PartnersNetherlands 14.6%, China 6.8%, Germany 6.8%, Italy 6.2%, Turkey 5.2%, Ukraine5.2%, Belaruse4.7%Import341 BillionMain ImportMachinery, Vehicles, Pharmaceutical products, Plastics, semi finished metal products, meat, Fruit and nuts, optical and medical instrumentsMain Import PartnersChina 16.6%, Germany 12.2%, Ukraine 5.7%, Japan 5%, United states 4.9%, France 4.4%, Italy 4.3%Foreign Reserve515.6 BillionLabour Force75.29 MillionLabour Force by occupationAgriculture 9.7%, Industry 27.8%, Service 62.5%Unemployment5.8%Public Debt7.9% of GDPEthio Russia TradeDue to Ethiopia’s fast economic growth, Russia’s trade and investment are growing rapidly in Ethiopia. If we see the trade statistics we can see that Russian export to Ethiopia is growing.The following table indicates the Export, Import, Trade balance, Total Trade turn over and annual growth rate between Ethiopia & Russia from 2007 up to 2016 GC. The Table shows that the trade between Ethiopia and Russian Federation is significant and increasing in the periods under consideration.Year ExportExportImport ImportTradeTotal TradeGrowth Rate (USD)Growth Rate(USD)GrowthBalance Turn Over of Total Trade Turn Over (%)???????20073,798,4206135,060,524-51-31,262,10438,858,944-4720085,212,50137101,719,185190-96,506,684106,931,68617520095,952,13414164,067,12461-158,114,990170,019,2585920106,406,456889,752,896-45-83,346,44096,159,352-43201110,090,04157268,038,946199-257,948,905278,128,987189201214,433,72043130,838,645-51-116,404,925145,272,365-48201315,655,317811,512,050-914,143,26727,167,367-81201421,376,74537126,720,8621001-105,344,117148,097,607445201513,845,560-3583,833,645-34-69,988,08597,679,205-34201613,324,692-4163,375,91995-150,051,227176,700,61181TOTAL110,095,586?1,174,919,796?-1,064,824,2101,285,015,382?Total trade turn over between Ethiopia and the Russian federation was close to 38.8 million in 2007 and reached to 176.7 Million US dollars in 2016. This shows increasing rate of growth of 355%. The total trade turnover reached 1.28 Billion US Dollars in the period under consideration.The trade balance between Ethiopia and the Russian Federation shows that Ethiopia imported 1.17 billion US dollars worth of goods from Russia and exported 110 Million US dollars of goods over the past ten years. The trade balance shows that the trade relation between Ethiopia and Russia is in favor of Russia.ExportEthiopia’s economy is in the early stages of economic development and most of its export to Russia is agricultural commodities. For instance coffee contributed 55.4% of export in the last ten years.The following graph shows Ethiopia’s export to Russia from 2007 to 2016. The highest export was in 2014 and it reached to 21.3 Million US Dollars. Ethiopia’s Export to Russia From 2007-2016Major Export Items From Ethiopia to RussiaS.NOItem DescriptionAmount in USD1.Coffee61,026,8212.Beans38,392,0423.Roses1,897,4984.Fruit and Vegetables2,593,8275.others6,185,398IMPORTFrom the trade data we can see that Ethiopia’s import from Russia increased from 35 million US Dollars in 2007 to 163.3 Million US Dollars in 2016. It increased by 366%. The largest amount of import occurred in 2011. It was 268 million US Dollars. Ethiopia’s import from Russia is mainly industrial products.Major imported commodities from Russia are the followings Iron and SteelVehicle spare parts Alcoholic BeveragesFertilizerTyresWheatWood pulpChemicalsEthiopia’s Import from Russia from 2007 to 2016Trade balanceThe trade balance shows that Ethiopia imports more from Russia than its export. The trade relationship is in favor of Russia.INVESTMENTIn terms of employment opportunity these companies have absorbed nearly 1,022 workforces in a permanent base and 1,225 workforces in a temporary base.S.NoInvestment StatusNumber of InvestmentCapital in Permanent EmploymentTemporary EmploymentBirr USD ??1Pre Implementation7129,500,000 6,475,000 362 855 2Implementation3750,200,000 37,510,000 660 370 Total10879,700,000 43,985,000 1,022 1,225 Among 10 projects, investment in Hotel and restaurants takes the highest amount of investment of 3 projects with a capital of 96,500,000 birr. Investment in manufacturing and agriculture are in second place with 2 investments each with a capital of 745,200,000 and 23,000,000 birr respectively.s.noSectorTotalNumber of ProjectsCapital in Birr Per. EmplTemp. Empl1Agriculture223,000,0001406002Construction210,000,0001553653Hotel and Restaurants396,500,0001921904Manufacturing2745,200,000510205Real State15,000,0002550Total10879,700,0001,0221,225Projects owned in partnership with Russian Investors In addition to the above investments, the Russians also invest in Ethiopia in partnership with Ethiopians, Ukrainians, Yemenis and other citizen Investors. In general, the Russians have invested in 14 projects in partnership with capital of 198,325,000 birr and have created 417 permanent employments and 1,663 temporary employments. SECTORS OF RUSSIANS INVESTMENTRussian citizens have invested in the following major sectors:-AgricultureConstructionHotel and RestaurantManufacturingReal Estate ................
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