PM Implicates Embassies In Illicit Financial Activity, Accuses Businesses Of Smuggling

“We’ll take serious measures.”

During an address to Parliament this week, Prime Minister Abiy Ahmed (PhD) accused foreign diplomatic missions in Addis Ababa of involvement in illicit financial activity. The accusation was among several he made during the speech, with others aimed at the financial sector, exporters, foreign governments, and rebel groups engaged in armed conflict against government forces.

“Some embassies are involved in illegal forex trade,” said the PM. “They are exploiting Ethiopia’s resources. Illicit business transactions have become the primary work for some of these embassies.”

He warned that his administration would take measures against diplomatic missions allegedly partaking in these activities unless they refrain from doing so.

“We do not want [to host] any embassies that do not maintain healthy activity,” said the PM.

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He stated the government is “tolerating” the alleged illegal activities in the interest of healthy diplomatic relationships.

The Premier also accused commercial banks of being complicit in illicit forex transactions.

“We’ll take serious measures against these banks,” said Abiy.

The PM told lawmakers that businesses are involved in smuggling gold and other commodities under the guise of franco valuta transactions.

“They are distorting the market. Forex money, gold and other commodities are being smuggled out of Ethiopia including through railways, buses, and other means. This includes officials in the government, individuals and companies. We must fight this,” he said.

He accused unspecified foreign entities of exploiting Ethiopia’s resources through illicit trade.

“[They are] both robbing Ethiopia and disregarding its national interests. Both are unnecessary. Just as they are taking from us, they must be ready to give,” said the PM.

He reiterated that Ethiopia’s diplomatic policy remains to cooperate, and called for foreign governments to reciprocate.

“We have defined our national interest. So we cooperate based on the national interests of other countries. Those countries who have been saying Ethiopia is poor and busy with internal issues must amend their views. Ethiopia is the powerhouse of Africa. There is no question about this. Ethiopia will not only prosper, but also resolve the problems of this continent. Trying to sideline Ethiopia like in the old days will not work,” he said.

Although the PM did not specify whom he was referring to, the comments come as relations with Somalia continue to worsen. Earlier this week, Mogadishu expelled an Ethiopian diplomat on accusations of meddling in its internal affairs.

Abiy told Parliament that Ethiopia remains committed to its own interests, and has no intention of picking sides in regional or global power struggles.

“Our policy with both the eastern and western camps  is based on peaceful cooperation, respect for national interests, and the principle of give-and-take,” he said.

The PM indicated the governments of the US, UK, France, and Italy have been supportive in Ethiopia’s drive to secure a debt restructuring process. He also highlighted good relations with China.

“We work with China in very peaceful cooperation,” he said. “We have equally friendly, peaceful cooperation with the US.”

The PM called on legislators to recognize the need for better ties with the countries of the Middle East.

“Ethiopia’s previous foreign policy towards the Middle East was very mistaken. The Middle East is close to Ethiopia, economically rich, culturally similar, and a big market for our labor and products. We cannot grow by ignoring the Middle East. Ethiopia is related to the Middle East in many ways. There is no region that is contributing to Ethiopia’s development as the Middle East,” he said.

Abiy said his administration is open to the possibility of joining the Arab League.

“Although they do not want us [to join]we will if we can,” he said. “We will join any platform to voice our interests. We know what happens in our absence.”

He could have been referring to rising tensions with Egypt and Somalia, which are both members of the Arab League.

The PM addressed the deteriorating relations with Somalia and the MoU with breakaway Somaliland later in his address. He accused the Somali government of pushing a false narrative that Ethiopia was “snatching away” Somali territory.

“This is false. When we signed the MoU, Somaliland officials asked us to sign a 99-year lease. But we refused and signed it for 50 years. How come a 50-year lease translates to snatching away a country’s territory?” asked the PM.

He reiterated that the deal was only made in the interest of economic development.

“We must access the sea to develop. This is our quest. Some have understood it, others have not but we are explaining it to them. Whether it is with Eritrea, Kenya, Somalia, Djibouti or others, we want only a peaceful region,” said the PM.

He also accused internal actors of working for foreign interests.

“Opposing political forces who claim to be struggling for the country are working with Ethiopia’s enemies in a shameful way. They provide intelligence to Ethiopia’s enemies. They receive objectives from Ethiopia’s enemies and implement them,” said Abiy.