Among the three sub-Saharan countries, I think Ethiopia will have the healthiest, most diversified, and more sustainable growth. For a long time, the nation has experienced a conjured image of famine and conflict. Recently, the new Ethiopia is rising from struggle, and according to the latest forecast by the international monetary fund (IMF), the country will be the fastest growing economy in sub-Saharan Africa. The predicted growth was projected at 8.5%, and this far outstrips that of advanced economies. For example, in most developing states like the US, economic growth in the year 2018 was anticipated to be 2.9% while in Japan was expected 1.2%. Comparing these projections with that of Ethiopia, what the growth aim is high.
The positive change of the Ethiopian economy will be steered by an increase in industrial operations, including significant investment in infrastructure and manufacturing processes. One major economic project is the Grand Renaissance Dam, the largest water reservoir in the entire African continent. When in full operation, the Dam has a power potential of about 15,000 GWh per year. Also, the country has invested well in transport networks like the rail system, which is the first of its kind in the state. Most investments in Ethiopia have come from overseas. According to IMF, the country’s foreign direct investment growth rate was 27% in 2017, and these resources were allocated to industrial parks and privatization inflows. The country has been selling state-owned businesses to outside investors such a China. The latter has become not only Ethiopia’s foreign investor but also a great trading partner. In the hope of competing with countries like India on the cost of cheap labor, Ethiopia has intensively encouraged foreign investment in the manufacturing industry. Such progress will enable the country’s economy to thrive.