Ethiopian Business ReviewThe 2018 political shift in Ethiopia initially sparked optimism for the advancement of women’s rights. Under Prime Minister Abiy Ahmed, the Ethiopian government implemented reforms that garnered global attention. Women’s representation in leadership saw a dramatic increase, with half of the ministerial positions being filled by women and women taking the helm of the presidency, the Supreme Court, and the national election board. These reforms extended to regional and local levels, fostering hope of a genuinely inclusive future for Ethiopian women.
Africa is home to a remarkable group of top female business leaders making significant contributions and breaking barriers in various industries. These women are reshaping the continent’s economic landscape and inspiring countless others to pursue their entrepreneurial dreams. From Kenya’s Njeri Rionge, a pioneer in the IT sector, to Angola’s Isabel do Santos, the wealthiest woman in Africa, and Nigeria’s Folorunsho Alakija, a successful businesswoman in the oil and fashion industries, and Ethiopia’s Bethlehem Tilahun Alemu, a prominent entrepreneur, has emerged as one of the top female business leaders in Africa.
Globally, women still earn an average of 23% less than men, according to the International Labour Organization. This translates to significant financial losses for women throughout their careers, impacting their ability to save for retirement, purchase homes, and support their families. In Ethiopia, the situation is even starker, with women earning only around 63 cents for every birr (37% less than) men earn for similar works in urban and worse in rural. This disparity not only limits the economic security of women but also represents a missed opportunity for the nation’s economic development. Women constitute a significant portion of the workforce and their full economic potential remains unrealized due to this imbalance. EBR delves into the reasons why closing the gender pay gap is an urgent necessity, exploring its economic and social impacts, and outlining potential solutions to achieve a more equitable future.
Arecent analysis of cost of living data by Numbeo, a renowned data and research platform, paints a concerning picture for major African cities. The report reveals the intense pressures countries across the continent face due to a surge in living expenses. Addis Ababa, Ethiopia’s central city, emerges as the most expensive city, followed by others like Harare, Johannesburg, and Cape Town.
The victory at Adwa is a significant achievement that represents Ethiopian unity. However, the virtues that historic battle — unity, freedom, equality and justice — seem to be eroding. Guzo Adwa, a movement that started in 2013, aims to bring a unique way to commemorate the sacrifice paid for freedom by our brave forefathers as they set out to defend their motherland from the yok of colonial aggression, is trying to reinvigorate the Ethiopian public through an annual journey to the battle site. EBR reprints an updated version of content published in edition 58 by an adjunct writer, Meseret Mamo, who explored how the annual service inspires Ethiopian youth to learn from the heroes of Adwa.
Ethiopia’s landlocked status has long constrained its economic growth and regional influence. While direct access to the sea offers undeniable benefits, achieving it remains a complex geopolitical puzzle. Direct access to the seaport brings enormous economic benefits for Ethiopia. It strengthens a nation’s regional and international standing, granting it a voice in maritime affairs and potentially boosting cooperation with other coastal countries and superpowers.
Africa, the world’s second-largest continent in terms of land area and population, holds a prominent position on the global stage, rivalling only Asia. With over 11,724,000 square miles (30,365,000 square km), Africa covers approximately one-fifth of the Earth’s land surface. Its geographical features are diverse and captivating, with the continent bisected by the Equator, positioning most of its territory within the tropical region.
A Glimpse from Goldman Sachs Report
Goldman Sachs, a leading global investment banking firm, has made intriguing predictions of Ethiopia’s economy in their “Global Economics Paper: The Path to 2050.” While the exact details remain hazy, the report paints an optimistic picture of significant economic growth and transformation for the nation. Accordingly, in 2050, Ethiopia will have a USD 1.6 trillion economy, ahead of the USD1.4 trillion GDP of South Africa and Argentina. While it’s important to acknowledge the inherent uncertainties and treat any projections cautiously, Ethiopia has immense potential for economic growth and transformation in the coming decades. EBR’s Economic Research & Business Intelligence closely examines the report.
According to the International Monetary Fund (IMF), several highly indebted emerging countries have obtained significant loans from China. These loans are part of China’s broader investments in global infrastructure through the Belt and Road Initiative (BRI), also known as the New Silk Road. Launched in 2013, the BRI is an ambitious project to create an extensive network of railways, energy pipelines, highways, and streamlined border crossings.
Will it Rain Relief or Ruin?
Ethiopia’s debt is undoubtedly mounting. Although the debt to GDP ratio has shown some signs of decline, the debt in actual figure is increasing.
The IMF and other economic institutions project that Ethiopia’s debt-to-GDP ratio will increase in the near term, potentially reaching 50Pct by 2024. Some analysts believe Ethiopia can manage its debt burden sustainably, while others express concerns about the potential debt crisis, which is already looming as the country missed a USD33 million Eurobond coupon payment on December 5. The default on the Eurobond coupon marks a challenging economic phase for Ethiopia. This development comes amidst internal conflicts, high public debt, and ongoing discussions with the IMF for a potential financial bailout and debt restructuring with G-20 countries.
