AddisZefen - Ethiopian Video

Business & Money

  • These are the '10 emerging markets of the future'

    A new report from BMI Research has identified the "10 emerging markets of the future" — the countries that are set to become new drivers of economic growth over the next 10 years.

    BMI estimates that these countries will cumulatively add $4.3 trillion to global GDP by 2025 — roughly the equivalent of Japan's current economy.

    In general, manufacturing and construction are the sectors that will drive the economies. BMI reports that new manufacturing hubs are set to emerge in Bangladesh, Myanmar, and Pakistan, and that these countries will see particularly strong growth in exporting manufacturing industries. And construction growth is going to be widespread throughout all the countries — partly to facilitate increases in urban populations and partly to help develop the manufacturing sector.

    On the other hand, extractive industries — like mining, oil, and gas — are going to play a far smaller role in driving growth than they have the past 15 years.

    While it might provide bright spots for some countries, the report states, "the ubiquitous commodity-driven growth model that was derailed by the 2012-2015 collapse in commodity prices is not coming back."

    Here are the 10 new emerging markets and the sectors that drive their growth:

    1. Bangladesh

    Primary sector: Agribusiness
    Key exports: Garments, agricultural products
    2015 GDP growth: 6.4%
    Unemployment rate: 4.9%
    Exchange rate: 77.42 Bangladeshi taka per US dollar

    "Bangladesh's export-oriented industrial sector already accounts for more than a quarter of GDP and will continue to develop as a global manufacturing hub in the coming years."

    2. Egypt

    Primary sector: Natural gas
    Key exports: Oil, fruits and vegetables, cotton
    2015 GDP growth: 4.2%
    Unemployment rate: 12.8%
    Exchange rate: 7.72 Egyptian pounds per dollar

    "We expect continued investment across the housing sector in Egypt, given the almost 1 million additional urban residents per year that we forecast over the next 10 years. There will be some investment in Egypt's large manufacturing export base in a continuation of recent investment in the autos and food sectors."

    3. Ethiopia

    Primary sector: Agribusiness
    Key exports: Coffee, oilseeds, vegetables, gold
    2015 GDP growth: 10.2%
    Unemployment rate: 16.8%
    Exchange rate: 21.55 Ethiopian birr per dollar

    "Construction to meet rapid urbanisation and ambitious state infrastructure targets will be the main driver of economic growth in Ethiopia ... Ethiopia's construction industry will record the highest growth in Sub-Saharan Africa, averaging real annual growth of 10.7% between 2016 and 2025."

    4. Indonesia

    Primary sector: Agribusiness
    Key exports: Mineral fuels, machinery parts
    2015 GDP growth: 4.8%
    Unemployment rate: 5.5%
    Exchange rate: 13,577.6 Indonesian rupiah per dollar

    "Growth in Indonesia will be far less commodities-centric than over the past decade, as the mining and oil and gas sectors will stagnate ... The government remains committed to developing a manufacturing-based export economy by boosting infrastructure spending and streamlining bureaucracy."

    5. Kenya

    Primary sector: N/A
    Key exports: Tea, horticultural products, coffee
    2015 GDP growth: 5.6%
    Unemployment rate: 40%
    Exchange rate: 99.73 Kenyan shillings per dollar

    "As Kenya imports almost all of its energy needs, lower average oil prices over the next decade compared to the previous decade will boost both Kenyan consumption and non-energy investment. Growth will be centered in ... infrastructure (including renewable energy), financial services and retail trade."

    6. Myanmar

    Primary sector: Mining
    Key exports: Natural gas, wood products
    2015 GDP growth: 7%
    Unemployment rate: 5%
    Exchange rate: 1,171.8 Burmese kyat per dollar

    "Investment will continue to pour into a range of industries as Myanmar reaps the benefits of substantial political reform enacted since 2010. We believe that the trends of economic liberalisation and political democratisation will remain in place and keep the economy on track for strong growth over the coming years."

    7. Nigeria

    Primary sector: N/A
    Key exports: Oil, cocoa
    2015 GDP growth: 2.7%
    Unemployment rate: 23.9%
    Exchange rate: 196.9 Nigerian naira per dollar

    "The significant growth that we forecast for Nigeria's economy will be principally driven by the secondary and tertiary sectors of the economy. Financial services are a bright spot due to the relatively low penetration of financial services in the country. Retail sales will grow strongly, though mostly in the low value goods segment due to the fact that essentials spending remaining at around three quarters of total household income."

    8. Pakistan

    Primary sector: Agribusiness, oil
    Key exports: Textiles, rice
    2015 GDP growth: 4.2%
    Unemployment rate: 6.5%
    Exchange rate: 101.45 Pakistani rupees per dollar

    "Pakistan will develop as a manufacturing hub over the coming years, with the textile and automotive sectors posting the fastest growth at the beginning of our forecast period. Domestic manufacturing investment will be boosted by the windfall from lower energy prices compared to the last decade, and improved domestic energy supply."

    9. Philippines

    Primary sector: N/A
    Key exports: Semiconductors and electronic products, transport equipment
    2015 GDP growth: 5.8%
    Unemployment rate: 6.3%
    Exchange rate: 45.503 Philippine pesos per dollar

    "Key sectors will include autos and construction. Robust private consumption and a booming construction sector will translate into growing demand for both passenger vehicles and commercial vehicles ... Ongoing economic and business environment reforms, such as an anti-corruption drive, have made the Philippines more conducive for investment."

    10. Vietnam

    Primary sector: Agribusiness, oil refining
    Key exports: Clothes, shoes, electronics
    2015 GDP growth: 6.7%
    Unemployment rate: 3%
    Exchange rate: 21,928 Vietnamese dong per dollar

    "We expect the manufacturing and construction sectors to outperform... thus helping to underpin growth in the broader industrial sector. These sectors will remain attractive to foreign investors, owing to relatively low labour costs [and] the government's gradual relaxation of foreign ownership restrictions rules."

    Data from the CIA World Factbook


    Read more »
  • Ethiopia's Skyline

    The real estate sector is a major employer in Ethiopia, with numerous high-rise building and apartments coming up across Addis Ababa. Some projects are government-funded, while others are owned by private developers. And some of these are spectacular, such as the 6-hundred-apartment complex built by Chinese investors. CCTV's Girum Chala has this story.

    Read more »
  • Ethiopia opens new industrial park

    Ethiopia has unveiled Africa’s largest industrial park in the city of Hawassa 275km southeast of the capital Addis Ababa – one of several it is building or planning to build all over the country.

    The project is inspired by China and the Hawassa Industrial Park (HIP) – like many equivalents in China – will be dedicated solely to just one sector, textile and apparel.

    At 1.3 million square meters it is the biggest in Africa and also the largest dedicated solely to export, said Zemdeneh Negatu, managing partner at Ernst and Young international consultancy firm.

    Speaking at the inaugural ceremony last week, Ethiopian Prime Minister Hailemariam Desalegn said the manufacturing sector’s share in Ethiopia’s gross domestic product (GDP) for many years stood at only 0.5 percent, showing the need for economic re-structuring if the country was to fulfil its economic promise.

    Ethiopia’s economy, despite a period of rapid economic growth, still largely depends on agriculture. Volatile commodity prices, a severe drought, and political unrest have all curbed expansion.

    The HIP has attracted 15 major manufacturing firms from China, Indonesia, the US, and Ethiopia itself. But Yuan Li, chairman of the China Civil Engineering Construction Corporation (CCECC) which designed and built the industrial park, says it has even wider significance.


    Read more »
  • Ethiopia approves over $ 12 billion annual budget

    The Ethiopian parliament on Monday approved a total budget 274.3 Billion Birr ($ 12.57 billion) for the 2016/2017 fiscal year.

    The budget which was unanimously endorsed by lawmakers today has saw a 13.7 % rise compared to the previous year budget.

    Sudan Tribunehas learnt that of the total budget $ 4.8 billion is allocated for capital expenses and $ 3.1 billion for regular expenditures.

    Around $ 4 billion is allocated for subsidy to regional states, and $ 550 million for expenses of sustainable development.

    During today’s session, Ethiopian Prime Minister Hailemariam Desalegn said Ethiopian industry and service sector have shown growth of 7%.

    The premier said the country was subjected to slow economic growth later this year due to impacts of El Nino which has significantly affected the agricultural sector.

    Ethiopia is among some African countries which were severely hit by food insecurity which was caused by El Nino induced drought.

    The drought which is worst in decades led to sharp deterioration in food security and massive drop in agricultural and pastoral production forcing over 10 million Ethiopians to depend on food Aid.

    “The Ethiopian government has expended 800 million dollar to control the impacts of drought,” Hailemariam said.

    The Premier said the country has performed good in growing its economy during this fiscal year (2015/216) and it was substantiated by the International Monetary Fund (IMF).

    The Premier said the country’s economic growth for this year is expected to be 8.5%, lower than previous years when the country had been registering double digit economic growth.

    According to Hailemariam, the government has worked aggressively to curb hitches of good governance.

    Read more at Sudan Tibune

    Read more »
  • Ethiopian Brings Airbus A350 to Lagos, Nigeria

    Ethiopian Airlines has disclosed the arrival of Airbus A350 for the first time in Nigeria, the newest aircraft in the world. Lagos and Dubai are the first stations to receive the Ethiopian Airlines' brand new aircraft, the airline stated.

    It would be recalled that the airline was the first to bring Boeing B787 Dreamliner to Africa and to Lagos, and also the first airline in Africa to take delivery of Airbus A350XWB on June 28, 2016 in Toulouse, France.

    The airline, in a statement, said: "Ethiopian is pleased to make all Africans proud by being the first airline in the world to fly the ultra-modern airplane in African skies. Ethiopian A350 XWB was built for passengers comfort and well-being. Wider seats in both Business and Economy classes, the lowest twin engine noise level, advanced air conditioning technology and full LED mood lighting enhance passenger comfort while reducing fatigue after a long flight."

    The Group Chief Executive Officer of Ethiopian Airlines, Ato Tewolde Gebremariam said: "The fact that we are ushering in another first to Africa in a span of four years is an affirmation of our continuing pioneering role in African aviation.

    "It is also a testimony of our commitment to give our passengers the very best travel experience, with the latest industry products and services. On behalf of all my colleagues at the Ethiopian family, I am delighted to see Ethiopian to continue making Africa First in Aviation Technology."

    According to the airline, all seats of the A350 XWB are fitted with the latest high-definition touchscreen personal monitors and a higher selection of movies, television series and audio channels. Inflight Wi-Fi connection will be made available on this aircraft in the future. Passengers with smart devices can connect to the world while others can use the smart individual touch screens on their seats when the internet service goes operational, it noted.

    It said that the A350 XWB's innovative technology also improves performance in operation, stating that its revolutionary airframe and simplified systems have optimized fuel burn, maintenance costs and reliability, and its engines have the lowest carbon dioxide CO2 emissions of any in the wide body category.

    Ethiopian has ordered 14 Airbus A350 XWB aircraft and will continue receiving the remaining 13 soon, constantly raising the number of Airbus aircraft in the fleet ensuring the extra comfort.

    Source: The Gradian Nigeria

    Read more »
Like our AddisZefen facebook page for more latest Ethiopian news!