Ethiopia has emerged as the fastest-growing economy in Africa, driven by strong government measures and strategic reforms, scholars said.
Speaking to Channel Africa, Fairfax Africa Global Chairman and economist Zemedeneh Negatu stated that Ethiopia’s economy is gaining momentum as a result of the government’s ten-year strategic plan, which highlights the country’s comparative and competitive advantages.
“The government has identified agriculture, manufacturing, mining, tourism, and ICT as pillars of economic growth. Above all, Ethiopia’s young labor force, with most citizens under 20, is its greatest asset,” he said.
He noted that private sector participation now accounts for about 80 percent of national economic activity, a sharp reversal from four years ago. This shift, coupled with measures to expand manufacturing and improve quality standards, has boosted production and productivity.
Zemedeneh recalled that Ethiopia’s GDP stood at less than 10 billion USD a century ago, but today the country ranks among Africa’s fastest-growing economies. He added that ongoing macroeconomic reform programs are crucial to steering Ethiopia toward its goal of becoming a sustainable middle-income country.
Prof. Peter Karungu of South Africa’s Durban University of Technology also remarked that Ethiopia is recording strong economic growth. However, he cautioned that tackling inflation and managing macroeconomic stability remain keys to sustaining progress.
He advised that broadening the manufacturing sector, encouraging value-added production, and diversifying the economy would play a pivotal role in deepening development. “The more you diversify the economy, the stronger the market and the better the livelihoods,” he said.
