ETHIOPIA: AFRICA’S WUNDERKIND
although many African nations are still struggling to cope with weak domestic currencies and declining revenue from commodities, the steady growth of Ethiopia’s 8 percent plus growth rate has been maintained and is set to remain stable in the near future.
With state-owned enterprises such as the commercial Bank of Ethiopia, Ethiopia Electric Power and various other state mechanisms that have played a significant role as stakeholders in local industries, the Ethiopian currency, coupled with capital controls, retained its value along with a 68% injection of capital investment from 2012 onwards.
The direct involvement of the state in its own country’s industries has proved to be a winner in terms of a steadfast economic growth rate that has caught international attention.
Ethiopia has not been overlooked by the Chinese who have a keen interest in the country. Key factors such as cheap labour, a stable government both locally and regionally, and low-tariff access to markets in nearby rich countries has resulted in Chinese companies opening textile and leather factories and numerous massive infrastructure projects such as the completion and building of an electrified railway to Djibouti, the main port of Ethiopia.
65-70% of the
