Ethiopia is Africa’s oldest independent country and its fastest growing economy today. With a population of over 100 million and an annual economic growth rate of 10pc over the past 15 years, it presents a unique opportunity. Currently preventing it from joining the global map of successful economies are several challenges: a low per-capita GDP of under 800 dollars per year and poor internet and smartphone penetration, mainly due to the largely rural population and a government monopoly on the telecommunications market.

Here are five reasons global stakeholders should take a closer look at:

Greater social stability

Ethiopia – historically recognized as one of the most authoritarian and politically stifled countries in sub-Saharan Africa – has been increasingly turning toward openness and democratic processes. In domestic politics, democratization has been undertaken, accompanied by a path towards reconciliation and peace abroad. The country began a rapprochement with Eritrea on a border dispute and worked toward normalization of relations with Somalia and Djibouti. Ethiopia has received new political and financial support from a number of parties, including the European Union, the World Bank and the IMF. The new policies were also well received by the Ethiopian diaspora, a big contributor to the economy through remittances. The steps taken towards national security and political reconciliation – such as lifting of the state of emergency, releasing political prisoners, and reforming tough laws on anti-terrorism, media and civil society – are considered positive by international observers.

Youthful potential

More than 70pc of citizens in Ethiopia are under 30, and nearly 50pc are under 15. In 2017, a World Bank report found that enrolment in higher education had multiplied fivefold since 2005, with the number of public institutions increasing from eight to 36 over that period. The government has also implemented a 70:30 higher education policy – training 70% of students in technology and science, and 30pc in social science and humanities. In a world where service industries account for 65pc of global GDP, these are the type of education policies that seem adapted to the new global context. Technology and knowledge-based industries have the potential to thrive, thanks to the cost advantages and the availability of human capital in Ethiopia. If the country’s youth can be channeled through relevant skills training, then this human capital will become a key economy-boosting asset.

Possible privatization of state-owned enterprises

Ethiopia is one of the world’s largest untapped markets, and there is an increasing belief that privatization of state-owned enterprises could be one of the ways to attract potential investments and spur the economy. For example, it is also one of the least connected countries in the world, with an internet penetration rate of only 15pc in 2016, up from 12pc the previous year, according to data from the International Telecommunications Union (ITU). Mobile phone penetration was recorded at 51pc, up from 43pc in 2015. The Ethiopian government has resisted liberalizing key sectors to foreign and local investors, but the executive committee of the Ethiopian People's Revolutionary Democratic Front (EPRDF), the ruling party, disclosed a plan to partially liberalize key economic sectors in June 2018. There are plans to offer minority stakes in airlines, power and telecoms to global investors. In addition, the possibility of railway projects, hotels and key manufacturing industries, have already created enough buzz to boost investors’ confidence and in turn, the possibility of attracting investments. The government has also created five industrial parks that have spurred the creation of 45,000 jobs, with the aim to set up a total of 30 and increase their manufacturing from 5pc to 20pc of GDP.