ERITREA is aiming at creating a modern, private sector-led economy (Macro Policy 1994; National Indicative Development Plan 2014-2018). Attaining this objective is, however, compromised by an inadequately enabling investment and business environment, United Nations sanctions, and overall weak macroeconomic conditions.
Real GDP growth is projected to increase from 2.0% in 2014 to 2.1% in 2015, double the rate recorded in 2013, because of increasing investments in the mining sector. Over the medium term, the government sees further prospects in improved trade with Middle-Eastern and Asian countries, additional mining activities, the growth of the food sector and the development of the tourist industry. Continue reading Eritrea’s 2015 Economic Outlook→
Nestled in the turbulent Horn of Africa (HOA) region, Ethiopia is Africa’s oldest independent modern nation-state and second most populous.[i] The second poorest country in the world according to the United Nations Development Programme (UNDP) Multidimensional Poverty Index, [ii] Ethiopia consistently ranks extremely low upon a variety of socioeconomic, development, and human rights indicators. [iii]
Recently however, Ethiopia has experienced economic growth – making it amongst “Africa’s best performing economies.” [iv] This development reiterates the Ethiopian government’s lofty ambitions to attain “middle-income status by 2020.” [v] The validity, sustainability, and possible ramifications of Ethiopia’s purported and ambitious economic transformation in the near future – which could prove beneficial domestically and regionally – merits closer analysis. Continue reading Ethiopia: An Analysis of Recent Economic Growth and Potential Challenges→