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Reflections of Devaluation

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By Kebour Ghenna

This new year, Ethiopia seems to ready itself to devalue its exchange rate to unlock IMF’s and World Bank’s assistance. Here are 12 points about ‘devaluation’ for people to keep in mind. 

Underlying Factors

  1. Devaluation swiftly diminishes the wealth of an entire nation. While history might showcase instances of devaluation favoring a small group, there are no instances where devaluation benefited most of the population.
  1. There is a class dynamic to this process: the rich can transfer their wealth to other currencies or assets that maintain their purchasing power, while the commoners have limited means to do the same. In fact, as discussions on currency crisis continues, I’ll be amazed if the wealthy have not yet transferred their assets overseas to escape the looming devaluation. After the Birr is devalued and assets have crashed in value, they (the rich) will return to the domestic economy and scoop up assets at fire-sale prices.
  1. Ethiopia’s devaluation trouble stems from its huge deficit: it earns fewer hard currencies through exports than it spends on flashy imports, leading to a trade deficit that’s ballooning like crazy. By the way, it’s often argued that the exchange rate doesn’t significantly impact exports and imports in the Ethiopian economy. This is because the nation heavily relies on imported goods and vital inputs for agricultural production. If and when the policy of devaluation is implemented, production costs increase, potentially stunting domestic production growth.
  1. In Ethiopia the basic needs of the poor are partly met by budgetary expenditures. There is a common argument that devaluation taxes the poor in three ways: by reducing the real wage, increasing unemployment, and reducing government services and entitlements. A reduction in the real incomes of the poor may not be tolerable and government expenditures on health, education, and food subsidies may have to be maintained in real terms.
  1. Devaluation will also lead to an increase in other government spending, as the expenses related to imports and debt payments rise. This will demand greater revenue increases to cut down the budget deficit. Although devaluation will also boost government income – via higher tax earnings from trade and incomes, as well as increased profits from state-owned businesses – the effect on expenses is more immediate and typically tends to be greater.

How Devaluation Works

  1. Many countries lacking foreign currency seek outside help and debt relief to adjust their financial situation. Depreciating the exchange rate (devaluation) is often a part of this plan. However, this move continues to spark debate, especially in programs supported by institutions like the IMF and the World Bank. The effectiveness of devaluation in Ethiopia hinges on its ability to boost export growth. If imports were already limited, devaluation might not lead to the anticipated decrease in imports when prices rise, especially if there are few options for local replacements. Furthermore, increasing exports may also rely on higher imports of raw materials, machinery, and spare parts to revamp neglected machinery and facilities. Therefore, in the short term, a devaluation could worsen the current account balance because import volumes will surge right away, whereas export growth will take a significant amount of time to materialize. Besides, the money advanced by the IMF is not a grant but a loan. Expanding debt is not cost-free; not only does it require paying interest, but as interest payments rise there is less money for consumption and investment. Now, if debt expands while the income that is leveraging the debt stays slow or flat, eventually most of the income will be diverted to servicing this debt. That leaves little to no income for capital investment, and the economy starves itself to death. Only those collecting the interest, i.e. the IMF and its partners profit from this death spiral. Indeed, it’s much easier to create credit than it is to actually increase the production of goods and services in the real world.
  1. Ethiopia’s past performances with devaluation unveiled a spicy twist – high inflation whirling into both local and global markets. It even cranked up the rate of growth of import while slamming the brakes on export growth. Seems like the last devaluation dance didn’t quite hit the economic groove!
  1. The main perk of devaluation is that it’s quicker (done just in one stroke) and easier than just controlling how much people spend. When a country’s money is devalued, the costs of things bought and sold internationally go up. Indeed, devaluing the Birr has all sorts of other pernicious side effects, too. What happens to the price of imported oil or fertilizers, for example? They double! The costs of local stuff will also increase, at least in the short run. This can probably mean more profits for businesses already selling things abroad. However, nurturing the development of new exporting companies isn’t a simple feat. Establishing the necessary supply chain for basic manufacturing will have a long gestation period, and producers may need time to regain confidence after the policy changes. Considering the array of challenges the country is facing – hot wars, high inflation, soaring unemployment, reduced investments, contraction in world trade, protectionism and more – revving up the export engine will indeed be a daunting undertaking.
  1. For devaluation to work well and shift resources from local to international sales, the price changes should stick around for a while so, for example, exporters look for cheaper local stuff instead of buying expensive imports, which cuts down on costs of import and boosts local business. If local costs go up too much, it could spoil the good profits made from export.
  1. When people spend less, the demand for all goods drops. If the country keeps a handle on how much people spend, prices shouldn’t rise much after the initial increase from selling more things abroad. But all these changes take time and might further increase unemployment, inflation, and augment demand for hard currency from those wealthy operators as a way to protect against higher prices, or if more devaluation happens.

The Difficult Choices – What to do?

  1. Steer clear of devaluation. This government primary focus should be on strengthening the unity of the nation and quickly resolve the conflict in the North through negotiations. Prioritizing ‘prosperity’ becomes impractical when a substantial portion of the country’s revenue is funneled into military spending and warfare. Second, it should redirect the war funds to enhance the production of tradable goods for international trade, while also controlling and managing the costs of local inputs and production factors. Third, the government should consider separate exchange rates for expatriate remittances, tourism, and nontraditional exports. This indicates an acknowledgment that price incentives are necessary to encourage earning more foreign exchange. Fourth, the focus should be on using financial policies to decrease the demand for goods and services to align with the country’s income, while promoting a shift in domestic demand for tradable goods and providing producers with incentives for expansion. Fifth, (and I will stop here) stop investment in projects that do not yield an actual increase in goods or services. Building a luxury apartment, or a park in the middle of a field may add to the nation’s gross domestic product, but it doesn’t create any new goods or services; it’s simply another form of consumption. Given all the mentioned interventions and potential additional strategies at our disposal, we should be wary of claims that Ethiopia can resolve its foreign currency shortage on the back of a devaluation…. It isn’t that easy!
  1. It isn’t that easy… due to the demanding nature of the sacrifices needed from the population and the scarcity of exceptional leadership available to navigate through such challenges.

Good Luck to us!!

Nineteen Eighty-Four

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When George Orwell (pen name of Eric Arthur Blair) wrote ‘1984’ in 1949, technical gizmos were quite rudimentary. Except for the radio and the movie screens, there were no commercially available television sets, no Internet, no mobile phones, no jet travel, no satellites, etc., etc. Nevertheless, Orwell envisioned technical tools (not developed at the time) and employed them in his dystopian novel to help convey institutionalized evil that were becoming common features of all modern states, capitalist or otherwise. At the time of writing the industrially advanced countries of the West were leveraging their knowhow to usher the arrival of totalitarianism a la ‘the technics’, while the political East was implementing totalitarianism via terror! To Orwell, the most important material to work with were not the gadgets as such, (actual or envisioned) but the general human condition, specifically the evil side of the dominant species, highly amplified by modernity’s narcissism and its loyal foot soldiers, the born psychopaths/sociopaths. This is what ‘1984’ is all about!

Institutionalized evil is one of the anchoring structures of the prevailing modern world system. Professions in this ever-widening sector are now ‘respected’ and even glamorized, compliment of the deep state and its affiliated entertainment media. Here again is our definition of the deep state. Deep state = military-intelligence-industrial-banking-media-complex. Moviemakers, like Hollywood, (at the service of entrenched interests) thrive on the dark theme of espionage, blackmail, murder, etc. Modernity has managed to convince the gullible global sheeple that these activities of the intelligence community are necessary and good, to all and sundry. Remember movies like, ‘James Bond’, etc.? If truth be told, espionage is a vocation that spreads suspicion amongst global humanity, and tends to attract weak souls who prefer dark operations always away from enlightening sunshine! It is hoped the revelations of the CIA’s structure and day-to-day operations, by Wikileaks, will go a long way in informing the global sheeple as to the evil and vileness of these modern institutions.

As the secret protectors of the increasingly polarizing global order, ‘intelligence’ institutions of the industrially advanced societies, operate with impunity! These extensive outfits (Snowden’s revelations) leverage the sweat and blood of the sheeple, (taxation) for the purposes of outright evil deeds, supposedly employed to protect and benefit the masses. The operations and budgets of the intelligence community are not controlled even seriously monitored by elected officials, lest such enthusiasm encounter ‘intended accidents’ from the clandestinely operating outfits! Unfortunately, this is the modus operandi of the ‘intelligence community’ all over the so-called modern nation states! The real strength of the ‘intelligence community’ is during times of relative peace. Once the sheeple refuses to adhere to the logic of the reigning order, i.e., launch a revolution of its own; the first institutions to go are those belonging to ‘intelligence’. If and when broad based internal insurrection usurps power, it is not the secret institutions of the old order that will prevail, but rather the will of the people. The military intelligence, which, for all practical purposes, is just another wing of the military, can slumber along with the new ministry of war, euphemistically called the ‘ministry of defense’!

It has become very clear that bringing these institutions under democratic control will not be easy during times of relative peace. A full scale uprising of the sheeple (revolution) might be needed to dismantle the currently operating evil institutions! These institutions operate like the ‘Mafia’ and share some common principles with it, which includes, amongst other things, secretly eliminating those who stand for meaningful justice, transparency and democracy! In the current scenario operators in these organizations don’t seem to stand for the Republics (be it the US Republic, the Ethiopian Republic, etc.) their allegiance is, first and foremost, to themselves, to the preservation/perpetuation of the various clandestine organizations. To be fair, there are always brave souls like Snowden, Manning, Assange and many others that, from time to time, come out in the open (from time to time, to expose the gross abuse of power that continuously take place in these publicly funded entities.)

This is the same phrase John F. Kennedy used in regards to the then quite small CIA. Unfortunately, it was his brain that ended up ‘scattered into the winds…’ and not the CIA!

Africa against neocolonialism: Why does the continent’s struggle for self-sufficiency remain so difficult?

By Denis Degterev

Over the past three years, the political events in Mali, Guinea, Burkina Faso, and Niger have attracted international attention and raised the issue of external influence in the Economic Community of West African States (ECOWAS). Africa seems to stand on the brink of historical changes as its countries –  both on their own and together– attempt to gain real, not formal, independence and take control over the continent into their own hands. Books published in 2022 and 2023 show that Western scholars have been watching this situation closely, since the West is in no way ready to lose its influence over Africa.

“African agency” is one of the most popular modern concepts. It is regularly discussed at conferences related to Africa, as well as in papers and books. Agency is an intangible and multifaceted concept, but one that is crucial for Africa. Moreover, its importance will only increase over the coming years with the expansion of Africa’s role in world politics. But what does this mean?

Essentially, we’re talking about the sovereignty of African nations and regional organizations, one that would allow African governments to make sovereign decisions independently from non-regional players and to successfully implement them. Theoretical, “superficial” sovereignty no longer deceives anyone, and there is increased social demand in Africa for empirical – in other words, real – sovereignty. 

Agency needs self-sufficiency

ECOWAS, which was established in 1975, bears many of the ‘birth pangs’ characteristic of other regional groupings of the Global South and the non-Western world. Take, for example, the issue of extremely low share of intraregional trade: ECOWAS member states account for less than 10% of each other’s trade, and less than 5% of the international trade of the group’s leading economy, Nigeria. Does this mean that a single regional market is being formed merely for the convenience of external actors?

Most ECOWAS member-countries supply commodities to foreign markets and import finished goods in large quantities because of the poorly-developed local processing industry. Even Nigeria, which is one of the world’s largest oil producers, does not have sufficient refinery capacity in order to process its own oil and is forced to import gasoline. This is despite the fact that Nigeria is one of the African countries where the issues of import substitution and industrial development have moved far beyond “good intentions” – many practical steps have been taken to achieve this end. 

To be fair, low indicators of internal trade are typical for most non-Western regional groupings. Internal trade in such organizations rarely exceeds 20%, and tops 50% only within the framework of ASEAN +5 (Association of Southeast Asian Nations) as a result of China’s participation. Of course, a large share of domestic trade passes through informal trade channels, but these can hardly ensure the functioning of high-tech industries or modern technological clusters. 

In order to form self-sufficient entities in the world economy (the “critical mass” of a nation is not sufficient in this regard) and to effectively develop industrial cooperation, it is necessary to surpass narrow national interests. Currently, only the demographics of Nigeria (with its population of 217 million as of 2022), and perhaps Ghana (with 32.5 million) and Côte d’Ivoire (27.8 million) allow us to discuss a potential domestic market. 

Kwame Nkrumah, the first president of independent Ghana (in 1960-1966) and a brilliant visionary, understood this quite well. In the early 1960s, as part of the Casablanca Group and alongside the leaders of Algeria, Guinea, Egypt, Mali, and Morocco he urged to immediately create the Union of African States. However, the President of Tanzania (in 1964-1985) Julius Nyerere, who represented the more moderate Monrovia Group, campaigned for gradual integration that would start at the level of regional associations. 

As a result, by the time Africa gained formal independence  – or “flag independence” as Nkrumah called it – the continent was caught up in a powerful disintegration process. 

Nyerere eventually admitted that Nkrumah was right. In 1997, he said, “Once you multiply national anthems, national flags and national passports, seats of the United Nations, and individuals entitled to a 21-gun salute, not to speak of a host of ministers, prime ministers and envoys, you would have a whole army of powerful people with vested interests in keeping Africa balkanized.”

An old song, sung in a new way

The interaction between the divided African countries and the world’s largest consolidated geopolitical actor – the European Union, which had absorbed the historical colonial experience of its member-countries –  is clearly asymmetric. Africa’s relations with the EU have moved from the “preferential” format of the Lomé Convention and the Cotonou Agreement to the “equitable” Economic Partnership Agreements (EPAs) of the post-Cotonou era.

Under the Lomé Conventions, African countries were primarily guaranteed that their mineral and agricultural raw materials would be sold on the European market. The transition to EPA tied the national economies to the EU economy in an even closer way, and encouraged the transition to “European standards” not only in the field of economics, but also in socio-political development. In recent years, the trade turnover between ECOWAS and the EU has continued to grow, and surged from 48 billion to 80 billion euros between 2020 and 2022.

At this point, the “African agency” issue comes up once again. Formally, since 2017 (the Fifth EU-Africa Summit), political dialogue has been conducted in an European Union-African Union format. However, the real interaction takes place mostly at the regional level, and sometimes even at the country level (which is obviously asymmetrical).

Initially, the European Union started EPA negotiations with regional groupings in Africa (including ECOWAS), treating them as single entities. However, it soon became clear that the regional powers which were traditionally set on sovereign development (Nigeria in West Africa, and Tanzania in East Africa), did not want to sign agreements on an unequal footing. Then, utilizing a so-called twin-track approach, the EU proceeded to hold individual negotiations (“divide et impera”) with the countries that favored the agreements. Now, could anyone imagine holding separate trade negotiations with individual EU countries?! That’s it.

Within ECOWAS, the Trojan horses of the collective West are the “showcases of peripheral capitalism”: Ghana and the Côte d’Ivoire (stepping stone provisional EPAs came into force in 2016), and Kenya in the East African Community (EAC). Although the agreements with West Africa and the EAC are still being finalized and ratified, Africa’s three most conventional countries have long been “enjoying the benefits of civilization.” 

This is reminiscent of the capture of Africa by Europeans at the end of the 19th century, when some African nations were still trying to fight the colonizers while others had already integrated into the system. Now, however, we are talking about the collective trade neocolonialism of the 21st century.

Another side of history

More and more countries are building cooperation with non-Western partners. China is already the largest trading partner for over 130 states. The nations of the Global South welcome so-called “non-Western regionalism.” This implies rejecting a one-sided focus on the EU while strengthening their partnership with non-Western regional organizations and increasing the independence of these organizations, including ECOWAS.

The Covid-19 pandemic, the Ukrainian conflict, and the growing global competition between the United States and China have all led to so-called “decoupling” – or the formation of closed techno-economic blocs. In Western countries, it is mostly tied to the technology sector, although the concept is gaining momentum among international organizations and in the field of values. The new Cold War is gradually coming into its own.

In Africa, the first step is security decoupling, which prompts the countries to choose their priority security partners. Mali, Burkina Faso, and Niger have already made their choice, preferring strategic alternatives to France.

ECOWAS is currently going through interesting times. It has imposed sanctions on four countries (Burkina Faso, Guinea, Mali, and Niger) that broke away from French neocolonialism and chose to rely on non-Western partners. Russian international lawyers Yao Nikez Adu and Alexander Mezyaev demonstrate how, under the influence of France, ECOWAS leadership sometimes acts in a way that exceeds its authority. Incidentally, Alexander Mezyaev defended Slobodan Milosevic, Ratko Mladic, and Radovan Karadzic in the International Criminal Court (ICC), and is quite familiar with the specifics of the collective West’s “justice” system. 

So far, only four out of the 15 ECOWAS member-countries have joined the “wrong side.” The turning point is still far away, but perhaps ECOWAS may be the first regional grouping of the Global South to regain control over its organization. Increasing the agency of Nigerian diplomacy will play a key role on this way. An important sign of such changes is the Nigerian Senate’s refusal of a military intervention in Niger in August 2023. After all, resilient, self-sufficient regional integration groupings in Africa are key to the formation of a multipolar world.

Minds in Motion

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 “Education is the most powerful weapon which you can use to change the world,” once stated Nelson Mandela in Johannesburg, July 16, 2003. True to the quote, Mandela’s weapon is currently being wielded in Ethiopia in attempts to improve the lives of autistic children and, thereby, those of their families.

Autism which is described as a neuro-developmental disorder is characterized by permanent mental retardation that affects many areas of development, including social interaction, communication, and behavior in children. According to a study conducted in Ethiopia in 2022, about 600,000 individuals are said to be living with autism.

For this condition, it’s been drawn that there is a huge lack of awareness in the country regarding this neuro-developmental condition, unfortunately even among health professionals. The stigma surrounding it, the enormous rate of under-diagnosis, the lack of specialists who can recommend appropriate treatment, support, and care (e.g. , speech therapy, support with social interactions and communication, support with behaviour and learning, and care to promote physical and mental health), and the frighteningly small number of schools that can teach these children with special needs, have been a burden that patients with this condition have been facing. It’s a battle against tough odds, but there are some very determined warriors on the front line.

One of the young warriors in the front line is Liya Ayalew, a 12th grade student and the Founder and CEO of a youth-led initiative called “Minds In Motion”. Her Youth-led initiative has recently been aiding in transforming the lives of children with learning disabilities through tech.

Liya Ayalew and her team (Bethelehem Ayalew and Ihsan Shafi) won the ACC 2022 competition, representing the Addis Global Academy in Addis Ababa, Ethiopia for their velar works in this initiative. The ACC which stands for the African Code Challenge is a coding contest that spans across Africa, inviting all-young individuals from different walks of life from 8 – 16 year to develop a game using the Scratch programming language. In addition to scooping this award, Liya Ayalew and the team’s work was submitted to a global competition and managed to come in 6th place.

Cognizant of the remarkable strides made by Liya and Co, Capital reached out to the charismatic and innovative founder on her initiative and her use of technology on spearheading awareness when it comes to autism. Excerpts;

Capital: What led you to start this project? How did you come up with the idea?

Liya Ayalew: I used to participate in a charity at the autism center called Nehemiah Autism Center. However, the majority of the community’s participation in helping the children in this institution was low. To help with the lack of awareness of the disparity in education and health care for children with learning disabilities is a crisis that cannot be ignored; I decided to take matters into my own hands by leveraging technology to combat the issue.

In order to respond to this pressing issue, we founded a youth organization called “Minds in Motion” together with other friends of mine. In order to make the initiative come to life, we coordinated with the students of Addis Global Academy School and collected more than 20,000 ETB, which helped us in kick starting our project.

Capital: What is the purpose of your youth led organization, Minds In Motion?

Liya Ayalew : Minds in Motion aims to address the challenges faced by children with learning disabilities. In addition, we are actively involved in raising awareness about autism and other learning disabilities through social media campaigns. We used the proceeds from a fundraising event at my school to purchase necessary educational materials for the Nehemiah Autism Center.

Capital: When did you get involved in this activity?

Liya Ayalew: In the past, we have provided various support to children with intellectual disabilities at school, but officially, the Youth-led initiative called Minds in Motion was founded in 2023 and has 40 members so far. Some families think that when their children face something like this, it is a curse or that God is angry, and that should not be the case. We are working aggressively in the awareness raising program so that this type of misinformation comes to an end.

Capital: What has been the rewarding bit of using this type of technology which is geared towards a good purpose?

Liya Ayalew: I had the honor of representing my country in the African Code Challenge, where I emerged as the national champion and ranked 6th internationally. These experiences fueled my desire to use technology as a force to bring about positive change in the field of education. 

Capital: What were the challenges you encountered when you entered this task?

Liya Ayalew : In terms of financial aid, the school and institutions were not willing to help, which had a great impact on us. So finances were a chunk of our hurdles, I would say.

Capital: What are your future goals?

Liya Ayalew: Our vision extends beyond our immediate efforts. We aspire to create a more inclusive and understanding society in Ethiopia, where neurodiversity is celebrated and supported. Through our educational initiatives and fundraising activities, we are sowing the seeds of positive change and hope for a more inclusive future.

By sharing our experiences and successes, we hope to inspire and empower more young individuals to take up the cause of neurodiversity awareness, fostering a ripple effect of positive change and inclusivity throughout Ethiopia and beyond.

New report shows how Ethiopia’s manufacturing sector can swing to benefit the economy

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By Eyasu Zekarias

Despite Ethiopia’s current low manufacturing state, a new report reveals that the country has considerable potential to become a manufacturing power, with export of up to USD 10 billion by 2030 while creating thousands of jobs in the process.

Ethiopia’s manufacturing sector which still remains nascent currently meets only 38 percent of domestic demand while the remainder is attributed to imports. Moreover, manufacturing firms are less involved in exports.

According to the United Nation Development Program (UNDP), there are 18 industrial parks in Ethiopia, 5 privately built and 13 public parks. These industrial parks have attracted more than 60 foreign investors with 740 million dollars of foreign direct investment and have created employment opportunities for 150,000 people.

On December 8, 2023, to give an overview of its report, the UNDP conducted a discussion on the results of the study conducted on the manufacturing sector in Ethiopia with pertinent stakeholders in attendance.

As UNDP revealed in the second annual development conference, “The exports remain anchored on coffee, horticulture, and oilseeds. The introduction of industrial parks in 2015 has been promising but adversely impacted by shocks.”

“The share of manufacturing as a percent of GDP has declined from 5.9 percent in 2019 to 4.4 percent in 2022, in part due to the combined domestic and exogenous shocks, and, according to the Ministry of Industry 446 firms have been closed in 2022. Moreover, investors have been leaving the industrial parks,” alarmed UNDP.

“The UNDP analysis acknowledges the progress Ethiopia has made over the past two decades. However, our working paper argues that this progress has not yet translated into a meaningful structural transformation in the economy. UNDP also proposes policy options for Ethiopian policymakers to consider,” underscored Charu Bist, UNDP Resident Representative at the conference.

As depicted, despite policy interventions, there has been limited product diversification and a lack of export complexity, with 50 percent of the total production focused on food products, beverages, non-metallic minerals, and textile or apparel.

The study found that there are more than 20 conglomerates that are family-run sit at the apex of the industrial system and span multiple sectors, with most of them private. The large and medium firms are 75 percent value-added but have not had sufficient employment creation in recent years, and there has been limited graduation of small and medium firms to the larger size.

The study reflected that Ethiopia’s economic policy framework still favoured importers and traders, with the gap between imports and exports reaching USD 14 billion in 2022 and USD 13.5 billion in 2023. Those engaged in light manufacturing were also noted to serve domestic markets, with little traction made in the creation of exports and quality jobs.

“The government had a tight fiscal position, and defense and debt servicing precluded social spending in the budget. The debt-to-GDP ratio has risen to 52 percent, and bank credit is expanding to support the challenge,” explained State Minister, Tarekegn Bululta, Ministry of Industry, at the forum where he discussed and debated manufacturing opportunities and challenges in Ethiopia.

“Security problems in parts of the country affect the macroeconomic balance. The challenge Ethiopia will face in the coming years is to fundamentally change the quality and impact of its development path,” he elaborated.

“While the country’s growth record has been impressive at both the continental and global levels, it has not brought about change – that is, structural change in productivity, output, exports and employment – and has not created enough good jobs to meet demand,” he added.

According to the State Minister, the focus on macro-growth rates obscures significant microeconomic issues that indicate deficiencies in important markets for goods and services, such as agriculture.

“In 2022, the national savings and investment rates were as low as 15 and 25.3 percent of GDP respectively. The SSA average for 2017-22 was 22 percent. Both are well below the levels of around 30 percent of GDP in dynamic Asian economies,” Tarekegn contrasted.

“Industrial development is the center of Ethiopia’s development policy. Both the ten-year development plan and the domestic economic reform agenda have identified the manufacturing sector as one of the main sectors that have been given special attention,” he signified new hope showing government’s shift and priority focus.

As Tarekegn cited, huge investments are being made in industrial parks, integrated industrial clusters, and infrastructure developments in roads, railways and logistics.

According to the study, Ethiopia’s economic policy framework still supports importers and traders, and the difference between income and expenditure products was highlighted at 14 billion dollars in 2022 and 13.5 billion dollars in 2023.