Addis Ababa, Ethiopia — December 16, 2025 India’s Prime Minister Narendra Modi commenced a two-day visit to Ethiopia on Tuesday, a strategic stop aimed at strengthening economic and geostrategic ties between the two nations. Upon arrival, Modi was warmly welcomed by his Ethiopian counterpart, Abiy Ahmed, and members of the Indian community in Addis Ababa. Modi’s visit is seen as a significant move by India to expand its influence in Africa, where it competes with China for economic and political dominance.
Ethiopia, hosting the African Union headquarters and a member of the expanded BRICS group since 2024, is considered a pivotal partner for India.
The Indian Prime Minister was greeted with traditional Indian dance performances and lines of people waving Indian flags, showcasing the strong cultural and historical ties between the two countries. During his stay, he is expected to address a joint session of parliament and discuss various economic cooperation initiatives.
Economically, Ethiopia is a recovering market with a long — standing presence of Indian companies, predominantly in the textile industry.
However, recent shifts in Indian investments have focused on the strategic mining sector, given Ethiopia’s significant reserves of critical minerals and rare earths essential for renewable energy, batteries, and semiconductors. Despite challenges in regulation and infrastructure, New Delhi views these resources as a major opportunity.
A recent study by the Indian Embassy in Addis Ababa highlights the potential for deeper mining cooperation to secure key supplies for India.
As Ethiopia seeks to attract more Indian investment, particularly in pharmaceuticals, agro — processing, and light industry, and as India aims for broader access to African markets through the African Continental Free Trade Area (AfCFTA), Modi’s visit is anticipated to yield several new agreements.
The visit underscores the importance of Ethiopia as a strategic partner in Africa for India, as both nations look to enhance their political and economic ties in the region.
Further details regarding the agreements and outcomes of the visit are expected in the coming days.
