A Brief Overview of the Bilateral Trade Relationship
between Ethiopia & Italy Republic

Full name: Italian Republic

Population: 60.8 million (UN, 2011)

Capital: Rome

Area: 301,338 sq km (116,346 sq miles)

Major language: Italian

Major religion: Christianity

Life expectancy: 79 years (men), 85 years (women) (UN)

Monetary unit: 1 euro = 100 cents

Main exports: Machinery and transport equipment, chemicals, clothes, wine

GNI per capita: US $35,330 (World Bank, 2011)
 The following table indicates the Export, Import, Trade balance, Total
Trade turn over and annual growth rate between Ethiopia & Italy
republic from 2004 up to 2011GC.
 The table shows that the trade relationship between the two countries is
significant but with fluctuating rate of growth.
Year
Export (USD)
Growth
Rate
(%)
Import (USD)
Growth
Rate
(%)
Trade
(USD)
Balance
2004
2005
2006
2007
2008
2009
2010
2011
38,692,829.16
51,261,072.32
62,442,215.89
80,695,549.18
81,779,466.07
47,251,276.36
52,310,406.83
109,207,221.96
32
22
29
1.3
-42
11
108
133,298,910.50
172,126,378.69
304,542,016.42
356,434,384.27
417,030,468.64
281,706,801.71
277,698,127.16
282,462,588.22
29
77
17
17
-32
-1.4
2
-94,606,081.34
-120,865,306.37
-242,099,800.53
-275,738,835.09
-335,251,002.57
-234,455,525.35
-225,387,720.33
-173,255,366.26
Total Trade
Turn Over
(USD)
Growth rate
of Total
Trade Turn
Over (%)
171,991,739.66
223,387,451.01
366,984,232.31
437,129,933.45
498,809,934.71
328,958,078.07
330,008,533.99
391,669,810.18
30
64
19
14
-34
0.3
19
The total trade turnover has increased from about 172 million dollars in 2004
to about 392 million dollars in 2011 showing a rate of growth of 128%.
According to the above trade data Ethiopia’s export to Italy has been
increasing from around 39 million dollars in 2004 to 109.2 million dollars in
2011 showing a rate of growth of 180%.
The following graph shows Ethiopia’s export to Italy from 2004 to 2011. The
highest export was in 2011 amounting to 109.2 million dollars.
Export (USD)
$120,000,000
$100,000,000
$80,000,000
$60,000,000
Export (USD)
$40,000,000
$20,000,000
$0
Since the Ethiopian Economy is an agrarian economy most of the exportable
commodities are agricultural & semi processed commodities. Some of the
major goods exported to Italy republic includes:

Coffee ------ (USD 229,320,315)

Hides and Skins ------- (USD 190,727,536)

Footwear -------- (USD 18,073,660)

Cotton Products ------- (USD 15,194,140)

Kidney beans ------- (USD 13,626,464)
The major imported commodities from Italy to Ethiopia include the following:

Goods vehicles, with diesel or semi-diesel engines , gvw 5-20 tonnes

Durum wheat

Dumpers for off – high way use

Spelt common wheat and meslin
 Machinery for various purposes
Ethiopia’s import from Italy has been increasing from around 133.3 million
dollars in 2004 to 282.5 million dollars in 2011 showing a rate of growth of
112%. The highest import was in 2008 amounting to 417 million dollars.
Ethiopia’s Import from Italy Republic from 2004 up to 2011
Import (USD)
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Import (USD)
 It is also clear from the table that the balance of trade is remained to be
in favor of Italy republic due to heavy imports of intermediate &
manufactured goods by Ethiopia.
RECCOMMENDATION

Since our exports to Italy are agricultural commodities, we have to keep
their quality at higher level.

Encourage the Italy business community to work in partnership with
Ethiopian counter parts for mutual benefits in terms of cheap labor,
technology transfer, and new market access.

Create sustainable relationship with the two countries’ business people
through active affiliation of the Chambers of Commerce of the two
countries through effective implementation of MoU and formulation of
JBC.