Eastern Africa: A New Frontier for Italian Enterprises--Exclusive Interview with Claudio Pasqualucci, Director of the Italian Trade Agency – Addis Ababa, Ethiopia
This article was originally published in Italian in Panorama on 10th February 2026.
Please note that this is a courtesy translation of the Italian language article originally published in the Panorama Magazine Issue at: https://www.panorama.it/attualita/esteri/africa-orientale-la-nuova-frontiera-per-le-imprese-italiane
From Ethiopia to Rwanda, via Uganda and Djibouti, Eastern Africa is confirming itself as one of the most dynamic and strategically relevant regions on the continent, offering concrete opportunities in infrastructure, energy, agribusiness, and high value-added services.
Based in Addis Ababa, Claudio Pasqualucci leads the Italian Trade Agency (ITA), promoting bilateral trade, attracting foreign investment, and supporting Italian companies across the region. With over thirty years of international experience, including similar assignments in Lebanon, China, Mexico, and Australia, Pasqualucci represents a key reference point for businesses seeking to operate in Eastern Africa.
At ITA headquarters in Rome, he coordinated programs on innovation, start-ups, technology transfer, infrastructure, and real estate, contributing to Italy’s broader internationalization strategy.
In this interview, we explore opportunities, priority sectors, challenges for Italian companies, and the potential for industrial and institutional cooperation in a region destined to play an increasingly important role on the global stage.
Q: What are the general characteristics of the markets of Ethiopia, Uganda, Rwanda, and Djibouti, and what opportunities do they offer to Italian companies?
The economies of Ethiopia, Uganda, Rwanda, and Djibouti follow different but complementary development models. Understanding their specific features is essential to defining effective market entry strategies and priority areas for cooperation, both for Italian enterprises and human capital.
1) Ethiopia – Scale, Industrialization and Infrastructure
Ethiopia represents the largest economy and demographic market in the region. Opportunities for Italian companies are concentrated in infrastructure, energy, manufacturing, agribusiness, and urban development. Addis Ababa plays a key role as a political and institutional hub for Africa, creating a favorable environment for regional projects. For Italian companies, Ethiopia is particularly attractive for medium- to long-term industrial and infrastructure investments, participation in large projects financed by multilateral institutions, and technology transfer initiatives. For Italian students and young professionals, Ethiopia offers opportunities in engineering, architecture, agronomy, energy, and development cooperation, thanks to large construction projects, capacity-building programs, and the presence of international organizations.
2) Uganda – Agribusiness, Energy and Private Sector Growth
Uganda’s growth model is more private-sector-oriented, with a dynamic entrepreneurial environment and strong agricultural vocation. Key opportunities for Italian companies include agricultural mechanization, agro-processing, irrigation systems, renewable energy, construction, and local infrastructure. Uganda is particularly suitable for pilot projects, local joint ventures, and value-chain initiatives, especially in agribusiness. For Italian students and start-ups, it offers fertile ground for agritech, food processing, youth entrepreneurship, and technical training, supported by a relatively accessible entrepreneurial ecosystem.
3) Rwanda – Efficiency, Innovation and High Value-Added Services
Rwanda stands out for institutional stability, administrative efficiency, and regulatory clarity. Though smaller in size, it is highly structured and strongly oriented toward ICT, services, healthcare, education, sustainable construction, and smart cities. For Italian companies, Rwanda is ideal for high value-added investments in digital technologies, design, architecture, sustainable construction, medical devices, and vocational training. For Italian students and professionals, opportunities exist in technology, innovation, public management, healthcare, and international cooperation, often in partnership with local institutions and universities.
4) Djibouti – Logistics, Ports and Strategic Energy
Djibouti has a highly specialized economy based on its geostrategic position along one of the world’s main maritime routes. Opportunities for Italian companies lie in logistics, port infrastructure, transport infrastructure, energy, maritime services, and shipbuilding. Djibouti represents a niche yet highly strategic market, particularly suitable for specialized services, project management, port engineering, and advanced logistics. Italian students may find opportunities in international logistics, transport, energy, and international relations, given the presence of military bases, global logistics operators, and regional infrastructure projects.
Q: In which sectors can Italian companies find the greatest investment opportunities in Ethiopia, and why does Addis Ababa represent a strategic hub?
Ethiopia is undergoing a profound economic transformation, supported by structural reforms, public investment, and increasing openness to foreign capital. The most promising sectors include infrastructure and urban development, agribusiness and agricultural mechanization, energy—particularly renewables and waste-to-energy—light and advanced manufacturing, and digital technologies.
Addis Ababa is emerging as a regional political, logistical, and economic hub not only for Ethiopia but for the entire Horn of Africa. The concentration of continental institutions, international organizations, major urban projects, and a growing middle class creates a favorable ecosystem for high value-added investments, where Italian technological and design excellence is particularly competitive.
Q: With growing demand for infrastructure and urban development, what opportunities exist for Italian companies in construction, engineering, and transport?
Infrastructure demand in Ethiopia is structural and long-term. The country is investing heavily in civil works, transport, energy, and urban development to sustain economic growth and strengthen regional competitiveness. Italian companies benefit from recognized expertise in integrated engineering, complex construction, project management, and sustainable infrastructure solutions. A key reference project is the Grand Ethiopian Renaissance Dam (GERD), one of Africa’s most important hydroelectric projects, crucial for Ethiopia’s energy security and regional interconnection. Beyond the dam itself, significant opportunities exist in transmission infrastructure, hydraulic engineering services, quality control, and advanced maintenance. Another major project is the new Bishoftu International Airport, expected to become one of Africa’s main aviation hubs. This project creates opportunities not only in airport construction but also in terminal management systems, security, automation, cargo logistics, maintenance, engineering services, and intermodal connectivity.
More broadly, strong potential exists in urban transport systems, airports, roads, bridges, public buildings, housing, and urban regeneration, often financed by multilateral institutions or developed through public-private partnerships. In this context, Italy’s ability to combine construction quality, technological innovation, and sustainability represents a tangible competitive advantage.
Q: What reforms and simplification measures has the Ethiopian government introduced to make foreign investment more attractive, and how can Italian companies benefit from them?
Key reforms include progressive liberalization of sectors previously reserved for the state, updated foreign investment regulations, simplified licensing procedures, targeted fiscal incentives, and strengthened industrial parks. Structured dialogue with international investors has improved discussions on capital repatriation, investment protection, and regulatory stability.
Q: How is Addis Ababa positioning itself as a strategic hub for foreign investment, and what advantages does it offer to Italian companies seeking to operate in East Africa?
Addis Ababa is the heart of African diplomacy and one of the few cities on the continent with a true international vocation. It attracts capital, talent, and regional projects. Italian companies can use Addis Ababa as an operational base for Eastern Africa, develop high-level institutional relationships, and participate in cross-border initiatives beyond Ethiopia’s domestic market. The presence of embassies, African organizations, and multilateral institutions creates a unique environment for networking, economic advocacy, and the development of cross-border projects.
Q: How can Ethiopia’s economic diversification create opportunities for Italian companies and promote industrial collaboration?
Economic diversification opens space in agriculture, manufacturing, and technology. Italy can offer integrated solutions along the value chain—from agricultural mechanization to agro-processing, sustainable manufacturing, automation, and digital technologies for e-government, education, and Industry 4.0. The real added value lies in industrial collaboration, skills transfer, and training, ensuring long-term sustainability.
Q: What are the main risks and how can they be managed?
Alongside the opportunities, it is essential to maintain a realistic view of the challenges. Key risks include macroeconomic volatility, currency fluctuations, residual administrative complexities, decision-making timelines, and, at times, an unstable regional context. For this reason, a structured approach is critical: risk analysis, reliable local partners, financial mitigation tools, and strong coordination with Italian institutions operating on the ground.
Q: How does the Mattei Plan promote collaboration between Italian companies, Chinese enterprises, and African countries, and what practical advice can be given to Italian businesses to maximize the benefits of this cooperation?
Within the framework of the Mattei Plan, there is significant potential for triangular cooperation between Italian companies, Chinese enterprises, and African countries such as Ethiopia, Uganda, Rwanda, and Djibouti. Chinese companies bring strong financial capacity and large-scale execution capabilities, while Italian firms contribute technology, quality, design, and sustainability. Together, they can create synergies in infrastructure, energy, logistics, and technology, generating win-win models that address African development needs. For Italian companies, partnering with Chinese firms can provide access to large projects, risk-sharing opportunities, and deeper penetration into African markets, all while maintaining the distinctive value of Made in Italy.
In a rapidly transforming continent, opportunities for Italian businesses are abundant but require vision, strategy, and collaboration. It will be interesting to see how Italian know-how translates into concrete and sustainable projects, contributing to the development of East Africa and strengthening the global reputation of Made in Italy.
By: Avv. Carlo D’Andrea, National Vice President of the European Union Chamber of Commerce in China and Chairman of the Board of the Shanghai Chapter, Founder and Managing Partner of D’Andrea & Partners Legal Counsel
