info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Business Day
Ethiopia is the second most populous country in Africa and one of the fastest growing economy on the African continent.
For so long a closed shop, the Horn of Africa nation invited foreign investors to buy stakes in state-owned telecoms, shipping, power-generation and aviation companies, a rare opportunity to access such a large market. The bonanza will extend to railways, sugar mills and industrial parks, with the top brass of the ruling party embarking on long-awaited market reforms.
The move continues a breakneck push led by new Prime Minister Abiy Ahmed, who took office two months ago.
As well as green-lighting the liberalisation of state companies, he's taken steps to reduce the role of the military in the economy, agreed to the terms of a long-disputed peace deal with neighbouring Eritrea.
"Ethiopia's market size speaks for itself," Jacques Nel, an analyst at NKC Africa Economics, said by phone from SA. "And the sentiment surrounding the country’s political environment has improved considerably with the appointment of Abiy. They want to signal to the world that this is a new Ethiopia."
"Ethiopia is an attractive telecoms market and both MTN and Vodacom are likely to consider entering if a viable opportunity opens up," Peter Takaendesa, a money manager at Mergence Investment Managers in Cape Town, said by phone.
Ethiopian Airlines Enterprise is by far the most successful carrier on the continent, turning a profit and linking almost 70 global cities outside Africa with about 60 across the continent from its hub in Addis Ababa, Ethiopia's capital.
