Ethiopia: the Continent’s Star Performer

Ethiopia: the Continent’s Star Performer

Amen Teferi

Ethiopia’s portrait up until two decades ago had been extreme poverty, civil war and political instability – among others. This was the picture of Ethiopia epitomized in the mind of the world community. The new political force that had come to power with the closure of the protracted civil war has done many remarkable jobs that have helped the country to get rid of this appalling image that had been associated with it for so long.

Ethiopia has charted the new path of development with the remarkable and fundamental task of the adoption of the Federal Constitution. The constitution of the Federal Democratic Republic of Ethiopia (FDRE) has come to life with the consent and active deliberation of the public.

The constitution has brought a long awaited chance to resolve longstanding problems of our nation. Of course, the making of the constitution was a deliberative process where all sections of the people, various political parties and civic associations were represented. Our constitution has guaranteed universal civil rights inasmuch it has ensured justness of economic and social development of the people. It has also categorically ensured the right of the citizens to develop themselves and create their own wealth.

Based on the principles enshrined in the constitution, Ethiopia has been undertaking various economic development programs in the last 26 years. By implementing the long-term plans that mainly focus on alleviating poverty, it has registered tangible results. From among the long-term plans it had implemented in the past, we can mention the plans like the “Sustainable Development and Poverty Reduction” and the “Poverty Reduction and Fast Economic Development.” These were followed by GTP-I that was implemented over the fiscal years spanning from 2010-2015 and that was taken up again by the second GTP that has been underway for almost two years now.   

Contrary to the common experiences of many developing countries, Ethiopia has registered fast economic growth over the last thirteen consecutive years without being dependant on the exploitation of natural resources like the oil.  

In the beginning, some political groups and members of the global communities had been skeptical of our economic growth. They had been stubbornly unwilling to accept Ethiopia’s economic success, but to their dismay, these achievements were concrete and left no room for denial. Thus, they have no other alternative but acknowledge it.

Hence, media establishments from around the world have begun to give wider coverage to the concrete and dynamic transformation that is undertaking in Ethiopia. These media have produced reportages depicting the present day Ethiopia as a land of peace, bright future and precursor of a development model vis-ἁ-vis yesterday’s poor, famished and war ravished Ethiopia.

They have given such a glare of publicity to Ethiopia that echoes its change and transformation. The precursor this transformation is, in my view, the measure taken to overhaul and refurbish the political system that had been in place for centuries.

For centuries, up until 1974, Ethiopia had been ruled by successive imperial regimes. Finally the military junta took power. These oppressive regimes have forced Ethiopia to toil under a protracted situation of civil war and famine. Thus Ethiopia had never ever seen a kind of growth that it is experiencing now.

Without a flicker of hope seen in the horizon, the country was languishing under the plight of severe draught. Particularly, when the Derge was in power, calamitous draught and hunger had occurred leaving a persistent image that represents Ethiopia as a foster child of Africa. Moreover, in the northern part of the country, there were forces of liberation who were engaged in armed struggle.

These armed forces had finally toppled down the Derge in 1991. The new political forces had taken daring political decision. They have well understood the fact that tyrannical system is not a viable option for a country like Ethiopia that destined to be a home for many nations and nationalities. Thus, EPRDF has completely changed the statuesque and create a political arrangement that allow freedom to every nations, nationalities and peoples to enjoy the right to self-government, self-determination, and even the right to secede and establish an independent state.

Now Ethiopia is a peaceful country that has the fastest growing economy in the world. Ethiopia’s effort in the fight against poverty and the various measures it has taken to promote trade and investment as well as the unswerving dedication it has shown for regional peace and stability and its unwavering position for environmental protection that is evidenced by the commitment it has shown in greening its economy have drawn the attention of the international media and other institutions.

Various foreign media had taken time to highlight and editorialize to report on its notable political, economic and social achievements that symbolizes the “Rising Africa.” This progress continues to attract attention in the just concluded Ethiopian budget years. Many international organizations and mainstream Medias have been issuing reports that transpire the robust economic growth of the country.

Therefore, the reason why our country managed to win the limelight of the world is the vivacious steps it has taken along the path of its renaissance. From among the many reports published by international and institutions over the just concluded Ethiopian budget year, we have the economic reports issued by the IMF and WB. According to IMF, in 2017, several sub-Saharan African economies will grow at more than 6 per cent, but the rest of the continent will drag growth back to 2.5 per cent. IMF has highlighted the emergence of a “two-speed Africa.”

In its annual economic outlook for the continent, the International Monetary Fund projects that six economies — Burkina Faso, Ivory Coast, Senegal, Tanzania, Rwanda and Ethiopia — will grow at above 6 per cent. Several others should grow at above 5 per cent. And Ethiopia, which is recovering from last year’s drought and is a potentially large market with 100m people, is expected to be the continent’s star performer in 2017, growing at 7.5 per cent.

On the other hand, the World Bank forecasted that Ethiopia’s economy will expand by 8.3 percent in 2017, Tanzania by 7.2 percent, Ivory Coast by 6.8 percent, and Senegal by 6.7 percent, all helped by public investment. The World Bank further noted that growth in non-resource intensive countries was anticipated to remain solid, supported by infrastructure investment, resilient services sectors, and the recovery of agricultural production.

WB has also noted that the East Africa region is susceptible to weather-related risks and the worsening drought conditions will severely affect agricultural production, push food prices higher, and increase food insecurity in the sub-region.” But it has all the same noted Ethiopia overtakes Kenya as economic giant of East Africa

This forecast becomes the second stamp of approval on the Ethiopia economy as the International Monetary Fund (IMF) figures released in April this year ‘crowned’ the country as the new economic giant of the East Africa region dethroning neighboring Kenya.

Their annual economic output for 2017 was expected to hit $78 billion from $72 billion recorded last year. Ethiopia’s economic growth since 2015 has been pegged at 10.8% putting a significant gap between them and Kenya. In monetary terms, Ethiopia has opened a gap of over $29 million over Kenya. Ethiopia’s economic growth is hinged on public-led spending on infrastructure and a strong demand by locals. It has also recently become an investor destination of choice for particularly Chinese investors. Another factor believed to be driving the economy is the country’s large population – which is almost double that of Kenya.