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.
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.
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.
Ethio Telecom, the leading telecommunications company in Ethiopia, has released its half-year report, showcasing notable growth and success in the first six months of the fiscal year 2023/24. The report, covering the period from July to December 2023, highlights the company’s efforts to expand telecom infrastructure, improve service quality, and meet the growing demand for telecommunications services in the country.
Ethio Telecom’s subscriber base reached 74.6 million, representing a 6.7 Pct increase from the previous year. Mobile voice subscribers accounted for 71.7 million, while fixed broadband subscribers reached 688.3 thousand. The company has been working on enhancing network capacity and coverage, resulting in the commercialization of 5G services in Addis Ababa and certain regional cities.
Prime Minister Abiy Ahmed has announced the appointment of Hanna Arayaselassie as the new head of the Ethiopian Investment Commission (EIC). This move comes as part of the government’s efforts to bolster foreign investment and improve the functioning of the EIC.
Prior to her appointment, she served as the CEO of Ethiopost, where she spearheaded transformative reforms that resulted in a remarkable improvement in service quality. Under her leadership, Ethiopost tripled its revenues and was honored with the prestigious Postal Excellence Award for the Africa Region in 2023 by the Universal Postal Union.
Itel Mobile, a well-established mobile phone manufacturer, has recently introduced its latest product, the Itel A70 model. With a decade of industry experience, Itel Mobile has been consistently delivering technological advancements to meet consumers’ needs.
The Itel A70 model is said that it focuses on enhancing camera capabilities. It features an 8-megapixel front camera and a 13-megapixel rear camera, designed to capture high-quality images. It is reported that, the camera performs well in low-light conditions and from a distance, enabling users to capture clear and colorful photographs in various settings.
Arifpay Financial Technologies S.C, one of the players in Ethiopia’s financial revolution, has announced the highly anticipated launch of its upgraded payment system, Arifpay 2.0. This milestone is said to mark a significant step forward in shaping the future of financial technology and digital payments within the country.
Arifpay 1.0, launched in December 2022, has already made waves within the industry, enabling merchants across various sectors such as healthcare, hospitality, and retail to embrace digital payments through the ArifPOS system. Notably, several banks have outsourced their point-of-sale (POS) operations to Arifpay, benefiting from streamlined merchant recruitment, customer service and support, as well as POS monitoring and management. This collaboration has not only improved operational efficiency but also facilitated deposit mobilization for the partnering banks.
Ethiopia’s landlockedness has hindered its trade due to high transport costs. Reliance on Djibouti for port access has made Ethiopia vulnerable to port fee fluctuations and trade route disruptions. Ethiopia has actively pursued port diversification strategies, signing agreements with Kenya and Somalia to develop new ports, to reduce reliance on Djibouti and lower transportation costs.
Degol Gossaye has been appointed as the General Manager of Raxio Ethiopia, a prominent provider of carrier-neutral data centers across Africa. This announcement comes at a pivotal time for Raxio Ethiopia, following the recent launch of its flagship facility in Addis Ababa in November 2023. Degol will take over from Bewket Taffere, the outgoing GM who played a crucial role in establishing the Raxio Ethiopia brand and overseeing the construction of its Data Centre.
Ethiopian Business Review