Ethiopia’s Path to Prosperity: Rising through Resilience

By Seleshi Bekele*

Ethiopia's path toward prosperity is a reflection of the country’s resilience and determination, underpinned by significant governmental reforms aimed at unleashing our economic potential and attracting foreign investment. Our recent engagements in Washington DC, particularly during the 2024 World Bank and IMF Spring Meetings, highlight this trajectory. The Ethiopia-US Business and Investment Forum, which attracted over 150 participants from both countries, showcased Ethiopia's conducive business environment and investment potential.

Ethiopia is emerging as a premier destination for foreign direct investment (FDI) in Africa, with aviation, ICT, AI, manufacturing, mining, and renewable energy as key sectors. Recent partnerships with global tech giants like Google and Meta reinforce Ethiopia’s status as a burgeoning hub for innovation. These developments are in line with the liberalization measures introduced under Prime Minister Abiy Ahmed's leadership which have opened previously restricted sectors to foreign capital.

Ethiopia actively promotes regional economic integration to foster sustainable and shared prosperity. It is a signatory to the African Continental Free Trade Area (AfCFTA), which unlocks market access potential of 1.3 billion people across the continent, tapping into a combined GDP of US$3.4 trillion. Moreover, our aim to secure World Trade Organization (WTO) membership by 2026 underscores Ethiopia’s commitment to global economic integration.

Ethiopia’s close collaboration with the World Bank underscores our commitment to sustainable development, facilitating recent financing agreements worth over $1.7 billion. These investments aim to enhance rural connectivity, food security, sanitation, and power sector reform, ensuring long-term growth and inclusive prosperity.

Despite these advancements, Ethiopia also faces significant challenges. The COVID-19 pandemic, recurrent droughts, and global crises like the Russian-Ukraine conflict have exacerbated vulnerabilities, leading to job losses, food insecurity, and disrupted supply chains. The severe drought from late 2020 to 2023, the most intense in four decades, along with significant flooding in 2023, has further strained the country’s resources and infrastructure.

Amid these challenges, the solidarity from our global allies, including the United States, has been invaluable. For example, USAID's Bureau for Humanitarian Assistance provided nearly $2 billion in support over 2022 and 2023. However, overcoming poverty and achieving sustained economic growth requires more than humanitarian aid; it demands long-term investment and collaboration from the private sector, particularly from American investors.

Ethiopia is open for business, and it is committed to eradicating poverty through innovative solutions, fostering global partnerships, and implementing economic reforms to attract foreign investments. We invite investors to seize the opportunities within our diverse sectors such as telecommunications, health, tourism, and mining, playing a pivotal role in our nation’s economic narrative.

As we navigate these challenging times, we urge all stakeholders to have a united stand with Ethiopia. Together, let us transform the challenges into a springboard for prosperity and dignity, not just for Ethiopia but for the world. The time for action is now; let us join hands and turn the tide against poverty, building a future of hope and opportunity for all.

*Ambassador Extraordinary & Plenipotentiary of The Federal Democratic Republic of Ethiopia to the United States of America