Ethiopia’s state-controlled economy is fast opening up in an
ambitious long-term strategy to boost manufacturing and spur exports in a
growth trajectory that will create jobs and position the nation as
Eastern Africa’s economic powerhouse.
Ethiopia, which is landlocked, has laid out elaborate plans that will
stand it in good stead to compete with Kenya—the region’s biggest
economy—after decades of tight government control that limited foreign
investments.
In a bid to open up its borders, Ethiopia is taking part in the construction of a road network into Kenya that has been touted as a game changer for its economic prospects.
A Sh13 billion project funded by ADB and the Kenyan government is strategically positioned along the ongoing Lamu Port Southern Sudan-Ethiopia Transport (Lapsset) development projects in Marsabit county where the road starts, and ends at Turbi village.
According to KeNHA, construction works of the Marsabit–Turbi road linking Kenya with Ethiopia is expected to be completed later this year.
Ethiopia’s economy, which has been stable over the past decade, averaging 10.8 per cent annual growth since 2012 compared with the regional average of 5.3 per cent—on the back of growth in the services and agricultural sectors—also boasts a modest performance in the manufacturing sector, making it sub-Saharan Africa’s fifth biggest.
Prime Minister Hailemariam Desalegn’s special advisers are also betting on a 10-year plan for a $1 billion (Sh100 billion) annual outlay in industrial parks which are set to boost exports and make the country Africa’s top manufacturer.
The country may invest half of the funds needed for zones across the country to host textile, leather, agro-processing and other labour-intensive industries. In its bigger plan to boast manufacturing, Ethiopia is eyeing investors who are able to penetrate the country’s expansive landscape and set up plants far from the capital, Addis Ababa.
Ethiopia, which is landlocked, has laid out elaborate plans that will
stand it in good stead to compete with Kenya—the region’s biggest
economy—after decades of tight government control that limited foreign
investments.In a bid to open up its borders, Ethiopia is taking part in the construction of a road network into Kenya that has been touted as a game changer for its economic prospects.
A Sh13 billion project funded by ADB and the Kenyan government is strategically positioned along the ongoing Lamu Port Southern Sudan-Ethiopia Transport (Lapsset) development projects in Marsabit county where the road starts, and ends at Turbi village.
According to KeNHA, construction works of the Marsabit–Turbi road linking Kenya with Ethiopia is expected to be completed later this year.
Ethiopia’s economy, which has been stable over the past decade, averaging 10.8 per cent annual growth since 2012 compared with the regional average of 5.3 per cent—on the back of growth in the services and agricultural sectors—also boasts a modest performance in the manufacturing sector, making it sub-Saharan Africa’s fifth biggest.
Prime Minister Hailemariam Desalegn’s special advisers are also betting on a 10-year plan for a $1 billion (Sh100 billion) annual outlay in industrial parks which are set to boost exports and make the country Africa’s top manufacturer.
The country may invest half of the funds needed for zones across the country to host textile, leather, agro-processing and other labour-intensive industries. In its bigger plan to boast manufacturing, Ethiopia is eyeing investors who are able to penetrate the country’s expansive landscape and set up plants far from the capital, Addis Ababa.
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