Ethiopian PM welcomes India's Modi in Addis Ababa at start of two day visit

India's Prime Minister Narendra Modi arrived in Ethiopia on Tuesday for a two-day tour of the east-African country.

After meeting his Ethiopian counterpart Abiy Ahmed the pair met with members of the Indian community in Addis Ababa.

Modi was greeted with a traditional Indian dance performance and lines of people waving Indian flags and chanting his name.

There was also a singing performance in Hindi sung by local Ethiopian artists at his hotel.

In a statement, the Indian Prime Minister said he would later address a joint session of parliament.

From New Delhi’s perspective, Ethiopia is a key economic and geostrategic partner in Africa, where India seeks to expand its influence amid competition with China.

For Indian policymakers, Ethiopia offers a valuable foothold, it hosts the African Union headquarters and has gained political and economic weight through its 2024 entry into the expanded BRICS group.

Economically, Ethiopia is seen as a recovering market where India has a long-standing presence. Over 175 Indian companies operate there, mainly in textiles. After fiscal and operational constraints slowed early investments in agriculture, Indian ambitions have shifted toward the strategic mining sector.

Ethiopia holds significant, largely untapped reserves of critical minerals and rare earths vital for renewable energy, batteries, and semiconductors. Despite regulatory and infrastructural challenges, New Delhi views these resources as a major opportunity, reflected in a recent study by the Indian Embassy in Addis Ababa. Deeper mining cooperation could help India secure key supplies.

As Ethiopia works to attract more Indian investment, especially in pharmaceuticals, agro-processing, and light industry, and as India seeks broader access to African markets through the African Continental Free Trade Area (AfCFTA), Narendra Modi’s visit is expected to produce several new agreements.