Ethiopia is bursting with a feeling of unprecedented economic optimism owing to its high economic growth in the last twenty years and the Ethiopian people wherever they are in the world are upbeat about their country’s future. Africa’s second most populous country, with nearly some 100 million people, has achieved spectacular economic growth over the past two decades and is emerging as the new powerhouse of Africa.
The Ethiopian economy is currently the fastest growing economy in Africa and the third fastest growing economy in the world. It grew from roughly three percent in early 1990s to an average of ten percent in the last ten years – an economy that is growing at ten per cent a year doubles every seven years. At this rate, by 2030, the gross domestic product (GDP) of Ethiopia, which is now estimated at $51 billion, will grow to $213 billion. And at that level of GDP, Ethiopia will then become a middle-income nation, which is exactly what the Ethiopian government is aiming to achieve in the year 2025.
But without being spurred by oil and gas exploration or the discovery of large scale mineral deposits, how could Ethiopia move its economy in such a short time? I asked that question to Ali Abdi Ise, a former mayor of Jigjiga who is also a former vice-president of Somali State and a former member of the Ethiopian Federal Parliament. Ali is considered by many to be an expert on Ethiopia and Somalia.
According to Ali, “Non-corrupt and able leadership with zero tolerance for corruption; stable government policies; sound economic plans based on successful economic growth models; and millions of hard-working and law-abiding workforce with favourable work ethics and can-do attitude inherited from Ethiopia’s past greatness have enabled Ethiopia to grow its economy at a much faster pace than other African countries.”
Ali continued, “Even the Somali State, which was lagging behind the rest of the country not only in security wise but also in economic growth has seen robust economic growth and improved security since the state’s current administration took office.”
The long-term economic outlook is even much brighter. Many factors that are conducive to economic growth such as experience gained through the years of high economic growth, increasing government budget due to booming economy and enhanced revenue collection system, expanded network of roads and upgraded railroads, and availability of affordable electricity are expected to keep the Ethiopian economy on a path of continuous growth over many years.
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