MUSCAT: Ithraa chairman, Dr Salem ben Nasser Al Ismaily, led Oman’s trade delegation and visited Ethiopia to explore new business and investment opportunities between two countries.
The fast growing Ethiopian economy is generating a lot of interest among Omani firms looking to do more business in sub-Saharan Africa.
Ethiopia is the second-most populous country in Sub-Saharan Africa with a population of 90 million and its gross domestic product has grown at an average of 9.1 per cent over the last 10 years, making it Africa’s second fastest-growing economy and the sixth fastest-growing economy in the world.
“One of the ways Ithraa helps Omani businesses take advantage of mutually-beneficial commercial opportunities in Africa, and around the world, is through trade missions, exhibitions and business-to-business meetings. The objective in Addis Ababa is to help Omani companies find new opportunities, partners and customers,” said Nasima Al Balushi, Ithraa’s director general for export development.
Dr Al Ismaily will lead the delegation of 20 companies in different sectors like plastics, food and beverage, furniture, marble, chemicals and others.
The powerful rise in household income in many of Africa’s key frontier economies has created a boom in consumer spending, which according to the McKinsey Global Institute is set to increase from $60 billion in 2008 to $1.4 trillion in 2020.
“If you combine this consumer spending growth with Ethiopia’s access to 23 African countries through the Common Market for Eastern and Southern Africa you begin to see the significant opportunities on offer to Omani companies. Indeed, as Ethiopia’s economy grows so too do middle class consumers, investment and business,” said the Ithraa director general for Export Development.
Beyond commodity-driven economic growth, reduction in income inequality, increasing job stability, and increasing education levels have also fueled the expansion of Ethiopia’s middle class. The growth of this segment means that many Ethiopian households have gained the ability to buy cars, mobile phones, computers through to refrigerators. Families are also sending more children on to higher education.
