Ethiopia will be Africa’s 3rd largest economy by 2017


Ethiopia is expected to be the third largest economy in Sub-Saharan Africa by 2017, overtaking Angola’s stagnant economy according to a study by Ernst and Young titled “Investing in Emerging Ethiopia”.
The study that outlines the top ten reasons for investing in Ethiopia was presented by EY Ethiopia Managing Partner Zemedeneh Negatu.
“In 2014, the star performer in Africa in terms of FDI was Ethiopia … Ethiopia accounted for one in five FDI jobs in Africa – this is the kind of FDI we need in Africa,” Zemedeneh explained.
The top reasons to invest in Ethiopia according to the study included the growing economy, demographic and geographical advantages, rapid urbanization, and opportunities in the manufacturing, infrastructure, extraction, agriculture and tourism sectors.
The EY report also states, “Ethiopia will very likely achieve its Middle Income target by the year 2025 (if not sooner) and become one of the more significant and consequential economies in Africa and a new investment destination for global investors.”
The study was presented during a gathering of High-level government officials and business executives at the Sheraton Addis Hotel to discuss Ethiopia’s economic climate and reasons to invest in the rapidly growing nation. A panel of guests consisting of Prime Minister Hailemariam Desalegn, Special Advisor to the Prime Minister Dr. Arkebe Qukubay, World Bank President Dr. Jim Yong Kim, and soleRebels Founder Bethlehem Tilahun urged the international business community to invest in Ethiopia.
“We have crafted a long-term vision to ensure Ethiopia’s renaissance,” PM Hailemariam noted in his opening speech. “Close to 70 percent of our budget is spent on growth-enhancing sectors,” he added.
With Foreign Direct Investment (FDI) to Ethiopia expected at over USD two billion in 2015, the Prime Minister said that Ethiopia has the capacity to attract much more of FDI. He also encouraged business executives to learn more about Ethiopia and foster partnerships with local officials and private sector actors.
On behalf of the World Bank, Dr. Jim Yong Kim remarked that Ethiopia has been “a remarkable leader in climate change”, applauding Ethiopia’s rise as a “climate resilient green economy.” He told the international community that Ethiopia’s industrialization, climate change mitigation efforts and demonstrated leadership on the international scene are indicators of fertile investment opportunities.
“I don’t think anyone of us would have predicted that Ethiopia would have met all eight MDGs by 2015” Dr. Kim noted.
The World Bank President warned that Ethiopia risks growing by merely half of its growth potential by 2025 unless the government continues to combat climate change.
soleRebels Executive Director Bethlehem also shared her entrepreneurial and business experiences in Ethiopia and shared her optimistic vision for the Ethiopian economy.