Africa's Economic Growth Remains Weak, Ethiopia Bucks the Trend with 5.9pc Forecast


Africa's Economic Growth Remains Weak, Ethiopia Bucks the Trend with 5.9pc Forecast

Africa's economic growth is anticipated to remain sluggish, experiencing only a marginal increase to 3.5pc in 2024, according to the latest World Economic Situation & Prospects report released by the UN. In a positive contrast, Ethiopia stands out with a forecasted growth of 5.9pc. The report underscores the necessity for increased efforts in revenue collection to ensure sustainable economic growth. At the launch of the report hosted at the United Nations Economic Commission for Africa, Adam Elhiraika, the director of the Macroeconomic Policy Division, emphasised the importance of seizing opportunities presented by the fourth industrial revolution, particularly with the rise of artificial intelligence. He highlighted the significance of establishing clear goals for borrowed funds allocation before African countries undertake substantial loans. It raises concerns over central banks navigating between inflation, growth, and financial stability. The uncertain monetary tightening orientation of the United States Federal Reserve and the European Central Bank adds to the issue. Global factors such as slower economic growth, tightening monetary conditions, and elevated inflation further complicate the growth outlook for developing countries. The rising borrowing costs and debt burdens faced by these nations underscore the need for prudent financial management. Ethiopia's debt burden, estimated at just below 40pc of GDP, is notably lower compared to other African countries such as Egypt (above 80pc), Kenya (a little over 60pc) and Zambia (undergoing debt restructuring negotiations with a 99pc debt-to-GDP ratio).


Radar

E-Consultation Portal Launched to Boost Stakeholder Engagement

An e-consultation manual and portal designed to enhance stakeholder engagement in the drafting of laws before their final ratification stage was launched last week. Developed by the Business Environment & Investment Climate (BEIC) project team, the platform operates under the oversight of the Justice and Technology ministries. It aims to improve transparency, efficiency, awareness, and effectiveness throughout the law formulation and enactment process. According to Belayhun Yirga, stat...


Radar

Trade Ministry Changes Guard

Prime Minister Abiy Ahmed (PhD) made a series of appointments last week, assigning Kassahun Goffe (PhD) as the new Minister of Trade & Regional Integration. Kassahun, who previously served as the State Minister, succeeds Gebremeskel Chala, who navigated the country through various trade reforms. The appointment comes amidst an export slump, as Ethiopia has faced major economic and political headwinds over the past few years. The Ministry reported a shortfall of 863 million dollars from it...


Radar

Ahadu Bank Savours First Taste of Profits

Ahadu Bank registered a 175 million Br gross profits in the ended year, turning around its financial performance. The two-year-old Bank established with 503 million Br in paid-up capital mobilised from 9,600 shareholders has also managed to double the figure to 1.03 billion Br. Ahadu's total assets have also nearly doubled to 6.3 billion Br, while its operating income soared to 1.15 billion Br from financial services for nearly 700,000 customers. It also expanded its branch reach across the c...


Back
WhatsApp
Telegram
Email