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Ethiopian Economic Development from Deficient to Prosperity

Having decades of the fastest economic growth under its belt with an average double digit economic growth at 10.9%, Ethiopia has been making promising economic development news around the world. According to economic research reports a strong economy is expected to continue in the current 2017 fiscal year with more public sector led investments.

In the beginning of the 2017 fiscal year Ethiopia was named one of the top performers by the UN economic report. The infrastructural development and expansion of the industrial sector, construction of hotels and growth of the service sector is massively supporting the growth narrowing the gap of economic deficit. The country is also in a move to shift the former agriculture dominated economy to industrial economy. Ethiopia has also started an active move incorporating tourism in the economy. The country understood that the untapped tourism sector can support economic development because tourism plays a massive role for Ethiopia the second most populated nation as its one of the biggest sectors to create job for literate and illiterate.

Ethiopia is moving towards export oriented economy shifting from the import dominant market. This is expected to take the country out of poverty lifting the country into middle income status in the coming five years. Mobilizing the country resources, investing in education, infrastructure development took the upper most focus of the country to finally achieve long awaited development. Connecting local business to the global market chain and foreign buyers will create massive market especially to small business enabling them to grow quickly. Such international trade is not only expected to promote economic development but also to finance the high demand for foreign currency to fund the country bulk of imports from developed countries.  

Although the country strives to achieve economic development crafting policies that encourage free trade it has a long way to go overcoming challenges. Unpredictable weather conditions, coupled with fastest population growth increased the vulnerability of the country getting in between of the country initiative to reap economic development at full scale. Growing investment and progressive economic development of the country could not meet the rapid population growth demand due to unbalanced population growth that is not going at the pace of the economic development.

To fill up this strong economic deficit Ethiopia heavily relied in attracting more international investment to increase state revenue. Following the economic development initiatives from Asian countries which has managed to register a strong economic growth is anticipated to take Ethiopia from a developing country status to developed status. Identification of priority economic and business areas that can offer the best competitive advantage for Ethiopia are mapped to craft policies considering the development potentials and demands of market. The need to tackle development problems has been given ample priority incorporating the public to strive for economic development to finally get rid of the poverty that linger in the country. Having the support from the public which is willing to stay in the country and struggle for development, goes a long way as the public is a huge asset to shift poverty into development as witnessed in South Korea which prospered in few decades.

Just like many countries in Africa, Ethiopia is working on the way up in the ladder of economic growth to create better living standards and maintainable development to the country; however a strong challenge remains Jumia Travel experts point out. To date, most African countries as  more than 2.47 billion people covering 43% of the total population in the developing world make a life out of less than 2$ daily income. Of those, nearly a third struggle to have their daily meal out of less than a dollar income. The lack of sustainability even to collect this income escalates the gravity of the problem says a World Bank Report.
By Eden Sahle. She can be reached at eden.sahle@jumia.com
Ethiopian Economic Development from Deficient to Prosperity Ethiopian Economic Development from Deficient to Prosperity Reviewed by IFEDAYO AKINWALERE on 3:03:00 am Rating: 5