Page 32 - NILE EXPLORER

been the case”. The famine as a whole took Democratic Front coalition after the Higher economic growth brought with
place a decade into the Ethiopian Civil unexpected resignation of Prime Minister it positive trends in poverty reduction in
War. Hailemariam Desalegn in 2018. both urban and rural areas. The share of
According to Oxfarm, UK, the famines The new leader pledged to try to end the population living below the national
that struck Ethiopia between 1961 and longstanding tensions with neighboring poverty line decreased from 30% in
2011 to 24% in 2016. The government
1985, and in particular the one of 1983–85, Eritrea, and within months the two is implementing the second phase of its
were in large part created by government countries declared that the state of war Growth and Transformation Plan (GTP
policies, specifically a set of so-called between them was over. II) which will run to 2019/20.
counter-insurgency strategies (against
Tigray People’s Liberation Front guerrilla- GTP II aims to continue expanding
soldiers), and for “social transformation” physical infrastructure through public
in non-insurgent areas (against people of investments and to transform the country
Tigray province. into a manufacturing hub. GTP II targets
an average of 11% GDP growth annually,
Since 2018, Prime Minister Abiy Ahmed and in line with the manufacturing
has launched a campaign of political strategy, the industrial sector is set to
liberalization at home and sought to end expand by 20% on average, creating more
disputes with Ethiopia’s neighbors, in jobs.
particular Eritrea.
Parliament elected Sahle-Work Zewde Development Challenges
as the Ethiopia’s first woman president
in October 2018. Ms Sahle-Work, an Ethiopia’s main challenges are sustaining
experienced diplomat, promised to work The Church of Saint George, a monolithic its positive economic growth and
to make gender equality a reality at her church in Lalibela accelerating poverty reduction, which
swearing-in to the largely ceremonial both require significant progress in job
post. Mr Abiy also pledged to bring more creation as well as improved governance.
The government is devoting a high share
She took office a week after Prime transparency to government and of its budget to pro-poor programs
Minister Abiy Ahmed appointed a cabinet reconciliation to a country that had and investments. Large scale donor
with half the posts taken by women. been torn by protests since 2015. He is support will continue to provide a vital
The World Economic Forum ranks Ethiopia’s first leader from the Oromo contribution in the near-term to finance
Ethiopia among the most improved ethnic group, which has been at the centre the cost of pro-poor programs.
globally in respect of gender equality, of anti-government protests since 2016. The Word Bank identifies a number of
at par with Albania, Mali, Mexico and The prime minister faced the first major challenges for the country, particularly
Spain.. challenge to his political course in a coup related to: Limited competitiveness,
In a cabinet reshuffle in 2018, Abiy cut attempt in Amhara State in June 2019. The which constrains the development of
manufacturing, the creation of jobs and the
the number of ministries from 28 to army chief and governor of Amhara State increase of exports; an underdeveloped
20 and named 10 women among the were killed in putting down the coup. private sector, which would limit the
new appointees. Women will now run country’s trade competitiveness and
key dockets including defense, trade, With about 109 million people (2018), resilience to shocks.
transport, and the newly-established Ethiopia is the second most populous
ministry of peace that will tackle the nation in Africa after Nigeria, and the
wave of ethnic violence that has swept fastest growing economy in the region.
the country. Abiy said the move “was However, it is also one of the poorest, with
meant to show respect” to the women’s a per capita income of $790. Ethiopia aims
participation in nation-building and to to reach lower-middle-income status by
“disprove the adage that women can’t 2025.
lead.” According to the World Bank, Ethiopia’s
The record 50% female representation economy experienced strong, broad-
is a win for the new premier who has based growth averaging 9.9% a year
undertaken strategic and radical reforms, from 2007/08 to 2017/18, compared to
both domestically and externally, since a regional average of 5.4%. Ethiopia’s Ethiopian Airlines is Africa’s largest
coming to power in April. The sweeping real gross domestic product (GDP) airline and strongest.
reshuffle is also a win for Ethiopia’s diverse growth decelerated to 7.7% in 2017/18.
federalism: with over 80 ethnicities, the Industry, mainly construction, and
Horn of Africa nation has long been services accounted for most of the The government aims to expand the role
dominated by a few groups. growth. Agriculture and manufacturing of the private sector through foreign
investment and industrial parks to make
Abiy himself was elected on the back of made lower contribution to growth Ethiopia’s growth momentum more
protesters who for three years demanded in 207/18 compared to the previous sustainable; and political disruption,
land reform, full political participation, year. Private consumption and public associated with social unrest, could
and an end to human rights abuses in investment explain demand-side growth, negatively impact growth through
the country. He was chosen to lead the the latter assuming an increasingly lower foreign direct investment,
ruling Ethiopian People Revolutionary important role. tourism and exports.

32 | The Nile Explorer 008