Fastest growing Economy leaves Competitors in Sub-Saharan Africa behind
Ghana has lost its mantle as the African economy likely to grow the quickest this year to Ethiopia, which has held the position for most of the past decade, International Monetary Fund (IMF) data showed.
West Africa’s second-biggest economy should expand 6.3% this year, the IMF said in its World Economic Outlook released Tuesday. That’s lower than the 8.9% forecast in October, and is also less than the raised 7.4% estimate for Ivory Coast and the prediction for Ethiopia, which was held at 8.5%.
Commodities including oil, gold and cocoa are the mainstay of Ghana’s US$ 43bn economy, which surged 8.5% last year as the Sankofa crude field started up in May.
Its growth booms and busts have been closely linked to oil since it became a…
Leading as African Example how to integrate neighbouring countries in Renewable Energy Infrastructure
Who would have thought that news about a leading role in Africa will come from Ethiopia with regard to renewable Energy? But it is a fact: Ethiopia is promoting the aspired economic integration in the continent by harmonising its renewable energy potential and create regional integration with neighboring countries by developing its resources and supplying it to neighboring countries.
Speaking for the African Union: “As AU we are promoting integration and again Ethiopia is one of the countries that shows good example of integration by providing electricity to Sudan, Djibouti, and the various agreement supply energy for other countries.” By harmonising its renewable energy sources, Ethiopia not only will be enable to boost its economy b…
Although wanting SA investments, the country does not seem ready for FDIs
Ethiopia’s drive to attract more South African investment is being hampered by a government that still distrusts business and a population wary of foreign domination. Africa’s second most populous country wants more foreign direct investment in agriculture, energy, transport and manufacturing, among other sectors, as it seeks to sustain an average economic growth rate of 11% over the past decade, according to Wegayehu Berga, the minister counsellor of business promotion at the Ethiopian embassy in Pretoria.
However, at an investment briefing organised by the Gordon Institute of Business Science this week, PPC and Group Five, which are establishing themselves in the country, detailed tales of a slow-to-reform bureaucracy still married …
Emigrants still strong en route to South Africa via Kenya
While the West is fixated with migration to Europe from the developing world, it’s just as common for people looking for fresh opportunities and a better life to journey South-South. The distances may be shorter – most travel is between regional neighbours – but navigating official restrictions can be just as hard.
This week, more than 40 Ethiopians, believed to be on their way to find work in South Africa, were picked up from two houses in the Kenyan capital, Nairobi, and charged with being in the country illegally. Last month, the police had to rescue another 23 Ethiopians from a house in the Kahawa West suburb of the city as angry residents, in a bizarre case of a murdered motorbike taxi driver, surrounded the property.
One of t…
Metro Rail System only weeks away from Completion
Ethiopia expected to complete the Chinese-backed construction of a US$ 475m metro rail system in Addis Ababa next month, the head of the project said. The rail system, built by China Railway Engineering Corporation and mostly financed through a loan from China’s Exim Bank, is a rarity on a continent plagued by poor transport links.
Beijing is a major partner in Ethiopia’s bid to expand its infrastructure, with cumulative investments by Chinese firms reaching well over $1bn, official figures show. The Horn of Africa country is building a new rail link to neighbouring Djibouti and wants to complete 5 000 km of railway lines by 2020. It also aims to almost triple the size of the road network by next year, from less than 50 000 km in 201…
Stellenbosch partners with Ethiopian University
South African expertise in executive education has found its way to the Horn of Africa with USB Executive Development (USB-ED), the public executive development and training company of the University of Stellenbosch Business School (USB), partnering with Ethiopia’s University of Addis Ababa. The new partnership paves the way for executive education to be presented for the first time in Ethiopia.
This follows a formal partnership agreement earlier this month with the University of Addis Ababa’s School of Commerce to jointly provide executive education to the country. Academic vice president of Addis Ababa University Dr Jeilu Oumer, said at the signing that there are vast executive education opportunities in Ethiopia. USB-ED CEO Frik La…
Building Boom in full Swing
Above Addis Ababa’s concrete skyline, cranes tower high amid blasts from nearby drills and diggers. At the feet of buildings shrouded in bamboo scaffolding, excavators dig up dirt tracks, to be replaced by paved roads and a modern railway. It is a scene common to most neighbourhoods in the Ethiopian capital, which has turned into a giant building zone and a city in transformation. “It looks like a construction site when we compare from the previous time,” said Berhanu Kassa, manager of B.B. Construction in the Ethiopian capital. “Especially in the past five years, it’s a really big change,” he added, speaking at the site of his latest project, a mixed-use commercial building on one of the city’s main thoroughfares where workers offload c…
Three 100MW Solar Plants for East Ethiopia awarded to US Firms
Two American companies, Global Trade Development Consulting and its project development partner, Energy Ventures, have announced that they have been awarded the contract by the Ethiopian ministry of water, irrigation and energy to build, operate, and transfer three 100-MW solar farms in eastern Ethiopia. Solar PV electricity generating systems are emerging renewable energy technologies and can be developed as a viable option for electricity generation in future. This project also aims to improve the provision of power supply by enhancing the capacity mix of the Ethiopian national grid system and reducing system losses and providing alternative electricity green energy solutions.
The energy policy of Ethiopia envisages electricity gene…
Eurobond issue soon to boost local Investments?
In the wake of the announcements of successful predecessors Nigera and Kenya, now Ethiopia also plans to issue bonds, among them a debut Eurobond. This will have to happen only once Ethiopia has secured a credit rating but will not open its telecoms or banking sectors to foreigners as their revenues help fund infrastructure, the prime minister said today. The comments by Hailemariam Desalegn in an interview with Reuters will disappoint international investors hoping for a shift away from the state-led policies of former prime minister Meles Zenawi, who died last August. Ethiopia is now sub-Saharan Africa’s fifth biggest economy and one of the continent’s fastest growing. Foreign appetite for African bonds has been strong as investors scr…
Deal with China to introduce 4G
Ethiopia on Thursday signed a $700m agreement with China’s Huawei Technologies to expand mobile phone infrastructure and introduce high-speed 4G broadband network in the capital Addis Ababa and 3G service throughout the country. Huawei, the world’s second largest telecom equipment maker, has been involved in developing phone and internet services in the Horn of Africa country for several years. Africa’s rapidly expanding telecoms industry has come to symbolise its economic growth, with subscribers across the continent totalling almost 650 million last year, up from just 25 million in 2001, according to the World Bank. Andualem Admassie, acting chief executive officer of state-run Ethio Telecom, and Jony Duon, his counterpart at the Chine…