Ethiopia to Be Sub-Saharan Africa’s Fastest Growing Economy

According to the International Monetary Fund (IMF), Ethiopia has experienced fast economic growth in the last decade, with an average around 10 percent annually. The manufacturing industry of the country contributed a lot to its growth and success, economists say.

Forecasts predicted that Ethiopia’s economy will rise 8.5 percent this year. According to the figures, Ethiopia, the second most populated country in entire Africa, continued economic expansion over a long period of impressive growth.

The country will further bolster its economy with the help of proposed large-scale infrastructure projects, including the Grand Renaissance Dam and a railway system funded by China.

Vijaya Ramachandran, an economist at the American think tank Center for Global Development (CGD), said, “Ethiopia has had a very high growth rate and I think that's a result in large part of a very concentrated effort by the government to boost industrial production and manufacturing.”

Along with his other proponents, Ramachandran released a report suggesting Ethiopia can follow China’s footsteps, and become a low-wage labor manufacturing destination.

On the other hand, increasing unrest from Oromo groups in the Oromiya region is still the main concern of the Ethiopian government. According to human rights groups, the government has suppressed basic rights and freedoms.

Rising Sub-Saharan Africa Economy

The economic growth of Côte d'Ivoire or the Ivory Coast is expected to rise at 7.4 percent, making it the second fastest-growing economy in the region. This is followed by Rwanda and Senegal, with a growth of 7.2 and 7 percent respectively.

Nigeria, the largest economy in the entire Africa, is predicted to grow 0.2 percent to 2.1 percent, from 1.9 percent forecast in October 2017.

Meanwhile, the data reveals that Ghana, previously forecasted as the fastest growing economy in Sub-Saharan Africa in October 2017, slipped its growth to 6.4 percent compared to its 8.9 percent forecast.

South Africa’s economic forecast stands at 1.5 percent. Growth across the whole region is estimated to an average of 3.4 percent, below the total world growth figure of 3.9 percent.

Mr. Albert Zeufack, Chief Economist for the African Region, said that the growth projection signals a rebound in Sub-Saharan Africa, but advices that it’s too early for celebration.

“We are still far from pre-crisis growth levels. African Governments must speed up and deepen macroeconomic and structural reforms to achieve high and sustained levels of growth,” he added.

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