Prime Minister Narendra Modi met Prime Minister Abiy Ahmed Ali on the sidelines of the 18th BRICS Summit in New Delhi from 12-13 September, 2026, advancing a relationship that's becoming central to Africa's push for greater influence in global markets and institutions. The meeting came nine months after Modi's visit to Addis Abeba in December 2025, when the relationship was elevated to a Strategic Partnership.
Discussions ranged from defence and investment to healthcare, critical minerals, clean energy and capacity building. Indian companies are among the top three foreign investors in Ethiopia, with more than 675 Indian companies registered with the Ethiopian Investment Commission and investments exceeding $6.5 billion. India is also Ethiopia's second-largest trading partner, though bilateral trade stood at just $550.19 million in 2024/25.
Ethiopia's Strategic Position
Addis Abeba isn't merely Ethiopia's capital but, as the headquarters of the African Union, one of the principal meeting points of African diplomacy. Ethiopia therefore matters to India as a country situated at the intersection of African politics, the Horn of Africa and the wider Global South. India has consistently argued that Africa should not merely be discussed in institutions of global governance but should help shape them.
That principle was visible when India championed permanent membership for the African Union during its G20 presidency. Ethiopia's presence as a full member of BRICS creates another avenue for African participation, while the New Delhi Declaration's support for Ethiopia's accession to the World Trade Organization adds an important institutional dimension. Commercial connections between India and Ethiopia stretch back roughly two millennia, when the Aksumite world traded through the Red Sea port of Adulis with merchants from India. Formal diplomatic relations were established in 1950, with Ethiopia becoming the first African country to open an embassy in New Delhi.
Investment Over Aid
The economic foundations already exist, but trade remains modest relative to the size and potential of two countries whose combined population exceeds 1.5 billion. That requires moving beyond the conventional structure of commerce between developing economies. Pharmaceuticals can become healthcare partnerships, agricultural trade can lead to food processing and farm technology collaboration, mineral cooperation can incorporate local value addition, and digital engagement can strengthen domestic capabilities rather than simply create another market for technology.
India's relevance lies not in presenting a finished development model. Its experience is valuable because it has attempted to deliver digital infrastructure, affordable medicines, financial inclusion, skills and public services at an enormous scale under constraints familiar to many developing societies. Ethiopia, equally, should not be viewed simply as a destination for Indian capital. Its demographic scale, manufacturing ambitions, agricultural potential and diplomatic position make it a partner with capabilities and opportunities of its own.
Africa's Economic Push
Africa is also pushing for a bigger role in shaping the global economy, as business leaders, heads of state, investors, policymakers and global partners converged in New York for Unstoppable Africa 2026 alongside the 81st session of the United Nations General Assembly. The fifth edition of the Global Africa Business Initiative's flagship convening drew senior leaders to the Marriott Marquis in Times Square, including UN Secretary-General António Guterres, African Union Commission Chairperson Mahmoud Ali Youssouf and Massad Boulos, Senior Advisor to the President of the United States on Arab and African Affairs.
Guterres called for Africa to have a greater role on the global stage, including a permanent presence on the United Nations Security Council. He said Africa's growing influence in global markets must translate into a stronger voice in international affairs and urged reforms to better reflect the needs of developing countries, particularly in Africa. He also said the continent's natural resources, including critical minerals, should generate more local value and decent jobs rather than simply being exported.
Mahmoud Ali Youssouf said Africa's 1.5 billion people and growing market create a significant opportunity, but the continent must accelerate the development of African value chains and remove barriers to trade to drive industrial transformation. He identified affordable energy, better infrastructure, access to finance, skills, technology and clear standards as critical requirements for Africa to turn its market potential into faster economic growth.
Private Sector Leadership
The private sector took center stage, with the Leaders Panel bringing together Samaila Zubairu, President and CEO of the Africa Finance Corporation; Aliko Dangote, Founder and Chairman of the Dangote Group; Mandy DeFilippo, CEO of Americas, Europe, Middle East and Africa at Standard Chartered; Nonkululeko Nyembezi, Chairperson of Standard Bank Group; Nolitha Fakude, Chairperson of Anglo American South Africa; and Tidjane Thiam, General Partner at Allied Critical Minerals Fund.
Leaders stressed the need to move beyond exporting raw materials, including critical minerals and crude oil, by developing local processing, manufacturing and value chains that create jobs and retain more economic value on the continent. One of the highlights announced was that the US$300 million Nigeria Distributed Renewable Energy Fund had reached its first close, securing its initial capital commitments and moving into operation. Co-managed by the Nigeria Sovereign Investment Authority and Africa50, the fund will provide equity financing to local clean-energy developers, supporting decentralized solutions including solar mini-grids, solar home systems, commercial and industrial power solutions and energy storage.
Aligned with Mission 300, which aims to connect 300 million Africans to electricity four years from now, the fund is designed to mobilize private investment and expand reliable energy access for Nigerian homes and businesses. Anna Bjerde, Managing Director of Operations at the World Bank Group, and Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, joined discussions on how innovative finance could unlock investment in Africa's power infrastructure and accelerate access to reliable energy.
Healthcare also featured within the wider economic conversation. Roche reaffirmed its commitment to advancing breast cancer care through its Africa Breast Cancer Ambition, which aims to help 80% of women diagnosed with breast cancer in Africa survive for at least five years by 2030. Unstoppable Africa 2026 continued 2 days ago with further sessions focused on digital transformation, investment, creative industries, sport and Africa's role in the global economy.
Why This Matters:
Africa's push for greater economic influence represents a fundamental shift from aid dependency to market-driven development, with private capital and bilateral partnerships replacing traditional donor relationships. The India-Ethiopia relationship demonstrates how emerging economies can build mutually beneficial ties based on investment, technology transfer and institutional cooperation rather than extractive trade patterns. For global markets, Africa's 1.5 billion people and untapped resources create significant opportunities, but only if the continent can develop local value chains, reliable energy infrastructure and market-friendly policies that attract sustained private investment. The emphasis on removing trade barriers, developing African value chains and creating clear standards reflects recognition that economic transformation requires institutional reform and market mechanisms, not just capital flows. Whether BRICS and other emerging partnerships can deliver tangible investment and development outcomes will determine if the Global South's expanded representation translates into real economic influence or remains symbolic.