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Ethiopia Targets Economic Expansion Through Industry & Service Sector



From a population perspective, Ethiopia is Africa’s second largest country and is home to just over 110 million inhabitants, The nation has come out of a period marked with political and social instability which stifled the nation’s growth potential.

Protests for social and political reforms in 2016 resulted in the government declaring a state of emergency. the protests continued until the resignation of the prime minister in 2018 and election of prime minister abiy ahmed ali.

The new Prime Minister has been at the forefront of instituting c1 raft of changes in the Ethiopian economy such OS infrastructure development and C1 drive to modernise the economy. These reforms have resulted in Ethiopia recording high growth rates, including on expansion of 9.2% in 2018.

Historically, agriculture has been the mainstay of the Ethiopian economy, but the state has started to witness diversification evidenced by the services sector accounting for 36.5% of the country’s 2018 GDP. Agriculture ranked second with 31.2% and industry, third with 27.3%. Going forward, Ethiopia’s government is prioritising industry sector expansion and has invested in expanding the manufacturing base through the development of industrial parks which are aimed at attracting foreign investment. Funding for the establishment of the industrial parks has been through concessional funding from the World Bank and loans from Saudi Arabia, Chino, the United States, India and Turkey.

Infrastructure development by the Ethiopian government to cover backlogs have provided impetus for growth of the construction sector and offer sizeable opportunities for raw material and construction material suppliers. Chino (government and corporates) are currently key partners for the financing and roll out of infrastructure projects within Ethiopia.

Our report provides an overview of Ethiopia’s economy and a summary of political risks to be navigated between 2019 01nd 2024. It also highlights the most viable opportunities in the country with the aim of enabling investors to identify and understand competitive threats and make informed, feasible investment decisions.

The Ethiopia Macroeconomic Review Report covers:

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