As the world grapples with economic uncertainties, Sub-Saharan Africa is poised for a modest recovery in 2025, according to the latest World Economic Outlook Update from the International Monetary Fund (IMF). The report, released on Friday January 17, highlights a projected growth rate of 4.2% for the region, indicating a potential rebound from the challenges faced in recent years. However, this optimistic forecast is tempered by significant risks and underlying issues that could hinder sustainable development.

The IMF’s report indicates that while global growth is expected to stabilize at 3.3% in both 2025 and 2026, Sub-Saharan Africa’s growth is anticipated to outpace many other regions. This growth is attributed to various factors, including increased commodity prices and a gradual recovery in domestic demand. However, the region still faces numerous challenges, including political instability, inflationary pressures, and the lingering effects of the COVID-19 pandemic.

Despite the positive growth projections, Sub-Saharan Africa continues to grapple with high inflation rates that have been exacerbated by global supply chain disruptions and rising energy prices. Many countries in the region are experiencing elevated inflation levels that threaten to undermine economic stability and erode purchasing power for vulnerable populations.

Furthermore, the IMF warns of potential downside risks to the region’s economic outlook. These include heightened policy uncertainty, particularly related to trade and fiscal policies, which could dampen investor confidence and hinder economic activity. The ongoing geopolitical tensions and conflicts in various parts of Africa also pose significant threats to stability and growth.

Despite these challenges, there are opportunities for Sub-Saharan African countries to capitalize on their natural resources and enhance economic resilience. The report emphasizes the importance of structural reforms aimed at diversifying economies and reducing dependence on commodities. Investments in technology, infrastructure, and education are crucial for fostering innovation and driving sustainable growth.

Additionally, regional cooperation through initiatives such as the African Continental Free Trade Area (AfCFTA) can help boost intra-African trade and create a more integrated market. By enhancing trade relations within the continent, Sub-Saharan Africa can reduce its vulnerability to external shocks and strengthen its economic position on the global stage.

As Sub-Saharan Africa looks ahead to 2025, it stands at a crossroads between opportunity and challenge. While the projected growth rate offers hope for recovery, it is essential for policymakers to address underlying issues that could impede progress. By prioritizing structural reforms, enhancing regional cooperation, and investing in human capital, Sub-Saharan African nations can pave the way for a more resilient and prosperous future. The coming years will be critical in determining whether the region can harness its potential and navigate the complexities of an ever-changing global economy.

Under its five-year plan, the emerging corporate giant OVID Holding aims to engage in both continental building projects and the marine industry.

The conglomerate, which has received approval for its real estate and construction investments, has unveiled a five-year investment plan valued at USD 20 billion. This plan encompasses mining, housing, construction, industry, and agricultural developments, along with several joint ventures to strengthen its operations.

According to CEO Yonas Tadesse, the five pillars of the Vision 2030 strategy include social development, economics, technology and innovation, and strategic partnerships.

Yonas Woldeyes, the conglomerate’s legal advisor, asserts that the Holding is rapidly expanding with a unique business strategy.

He states that the Holding comprises several active businesses participating in various sectors to expedite the company’s initiatives.

The CEO has set a goal to increase the number of OVID Holding’s 47 supply chain subsidiaries during this strategic period. He indicated that the Holding plans to incorporate several new companies over the next five years.

At the Vision 2030 launch ceremony held at the Gelan Gura housing site on the southeastern edge of Addis Ababa, he stated, “Agriculture, mining, hotel and tourism, public transport, and logistics are among the new businesses the conglomerate will pursue.”

The legal advisor added that the forthcoming logistics and marine division of OVID Trade House aims to establish a logistics business, either independently or through collaboration.

“We intend to operate vessels under the maritime business,” Yonas Woldeyes told Capital.

The company relies heavily on imports for its operations, including significant amounts of construction materials, manufacturing inputs, and other items.

Yonas revealed that the logistics company has already been established and has recruited a qualified foreign leader to assist in developing the vessel operating firm.

If successful, it would become the second vessel operator in the nation, following the state-owned Ethiopian Shipping and Logistics.

According to Yonas Tadesse, one of the main objectives for the next five years is to expand into foreign markets. He stated, “We aim to grow our international business by 30 percent under the five-year strategy.”

The Legal Advisor elaborated on the CEO’s comments, saying, “We are working on a road project designed to connect the southern tip of Africa to the north.”

In addition to the road project, the conglomerate’s construction division plans to collaborate with others on housing projects across African nations.

Currently, OVID Real Estate is transitioning into a developer rather than a direct homebuilder.

The Legal Advisor explained, “As a housing developer, our role will be to supervise contractors building homes under OVID.”

He noted that OVID Construction has partnered with approximately 10 recently formed construction companies to execute housing projects in Gelan Gura and other locations under the OVID brand.

According to Yonas Woldeyes, these construction companies have been established with the goal of managing manageable projects, ensuring timely completion.

The real estate division has also received a plot from the Addis Ababa City Administration to build residential homes through a public-private partnership (PPP) scheme.

According to the CEO, the housing plan includes the construction of 120,000 homes over the next five years, with 90,000 of these located in Gelan Gura, which spans over 400,000 square meters.

The City Administration will own 30% of the homes in the Gelan housing project, which operates under a public-private partnership (PPP) strategy.

The CEO of OVID Holding stated that the company’s goal is to capture 40% of the real estate market by 2030.

In recent years, the conglomerate’s building division has achieved notable success in both speed and quality.

One of the main components developed in the housing program is the facilitation of a fund. To support this, a mortgage bank is being established. The CEO also mentioned that the company is in the process of setting up a microfinance institution to assist homebuyers in obtaining financing.

Over the next five years, the real estate portfolio is projected to spend USD 15 billion, according to Samson Merid, CEO of OVID Global Solution, a division of the holding company.

He informed the media that “five billion dollars will be needed for global, regional, and investment expansion and partnership” over the same period.

As part of the holding CEO’s five-year strategy, approximately 25 memorandums of understanding and partnerships will be established with potential collaborators. The 2030 plan aims to generate one million new jobs.

Despite concerns raised by some parliamentarians, the long-awaited property tax law has been ratified.

This proclamation, discussed for several years, aims to provide municipalities with a consistent revenue stream to support development projects within their communities.

Some Members of Parliament expressed that the proclamation would place additional strain on low-income individuals when it was presented for ratification on Tuesday, January 14.

They argued that the measure could disproportionately affect low-income earners and those on fixed incomes more than it would impact businesses.

Others, including systems experts, have weighed in on the timing of the proclamation. After nearly a decade of development, it has been formalized as a draft bill for the past two years.

The executive body has stated that the proclamation aims to enhance the quality and modern standards of government services, ensure equitable wealth distribution among urban populations, and help cover investment costs for ongoing urban infrastructure development through taxes linked to rising property values.

In addition to applying nationwide, the proclamation allows regional states to draft and implement their own property tax legislation in accordance with their specific circumstances.

Reports indicate that this measure, common in other countries, will enable towns to secure a steady revenue stream for infrastructure projects and other development activities.

The proclamation stipulates that 25% of the property value will be taxable, with levies ranging from 0.2% to 1% for land and from 0.5% to 1% for structures.

Despite having a narrow tax base, it has been noted that the government fails to adequately collect the revenue generated by the economy.

To enhance revenue collection and broaden the tax base for financing development projects, the government is implementing various programs in collaboration with international partners.

One of the new taxes introduced to promote resource mobilization is the property tax, which primarily affects urban areas.

Shaka Analytics is taking significant steps to bridge the gap between the perspectives of decision-makers and the actual needs of the Ethiopian population. Founded by Paulos Assefa, the data consulting firm is committed to promoting informed decision-making (DDDM) across various sectors in the country.

In a recent statement, Paulos highlighted the importance of using data to create equitable growth and sustainable development. “Our main goal is to help communities, governments, and organizations make informed decisions based on real data,” he said. “By understanding the real needs and priorities of the population, we can ensure that development initiatives are more effective, inclusive, and sustainable.”

Despite its ambitious objectives, implementing data-driven decision-making in Ethiopia presents several challenges. These include limited access to reliable information, civil disobedience regarding participation in data collection efforts, and the complexities associated with linguistic diversity across the country.

To address these obstacles, Shaka Analytics employs a multi-faceted methodology that prioritizes data security and confidentiality. The firm utilizes robust data collection methods such as online surveys and tablet-based approaches to gather insights effectively.

The potential benefits of better understanding public needs are significant. Improved data can enhance service delivery for governments, increase brand awareness for businesses, and stimulate overall economic growth. “Informed decision-making is critical for the development of Ethiopia,” Paulos emphasized, noting that overcoming challenges related to data quality and accessibility is essential for successful DDM implementation.

In collaboration with the US-based ETC Institute, Shaka Analytics has also released preliminary survey results from a user satisfaction study on the Addis Ababa Corridor Project. This study involved over 400 residents and assessed their perceptions of the transport and parking systems in the city.

Key findings from the survey revealed that 65% of respondents reported a decrease in traffic congestion levels, while 73% noted improvements in transit areas within a five-minute walk from their homes. Additionally, more than 80% expressed satisfaction with current road conditions in Addis Ababa.

However, challenges remain for vehicle owners; over 75% reported difficulties in finding parking spaces, and 74% indicated that parking costs were not aligned with their income levels.

Paulos stated, “Informed decision-making is demanding but crucial. Through our partnership with the ETC Institute, we are working on research that will transform transport and traffic systems.” He expressed a commitment to fostering research-backed connectivity in Ethiopian cities through innovation.