Renowned American economist forecasts very fast growth for decades in Ethiopia

Addis Ababa, February 22, 2024 (FBC) – The renowned American economist, Professor Jeffrey Sachs, said that Ethiopia will be a very fast growing economy for decades to come.

Speaking to ENA, the economist also hailed Ethiopia for its ambition to have a regional integration in trade and commerce as well as infrastructure across the Horn of Africa and beyond.

According to him, big development changes are taking place in Ethiopia in various spheres.

“I’m a big believer that Ethiopia will be a very fast growing economy for decades to come. And already I can see with my own eyes, the big changes that are taking place in this country. When you move around Addis Ababa, you see a city that’s being modernized.”

Professor Sachs elaborated that he has witnessed new industrial parks, railway, and other infrastructure development in many places of Ethiopia.

In particular, he praised the country’s big boosts of agricultural productivity in the Oromia region and other parts of Ethiopia.

Ethiopia, with a very bold investment strategy and now membership in the BRICS, will also have great leverage to lure investment and finance, particularly from the Gulf countries, the economist stated.

“I want closer connections of the Gulf countries with Ethiopia. There is a lot of finance potential in Saudi Arabia, in the Emirates and so forth. They can help to invest a lot in the infrastructure in this country. So I think that the prospects are good.”

Moreover, the economist noted that the BRICS is a very important grouping, which has got almost 40 percent of the world output when you combine China, India, Russia, Brazil, and South Africa, Ethiopia and Egypt as well as the Kingdom of Saudi Arabia, Emirates and Iran.

The BRICS are making plans for better finance, for a better payment system for using non-dollar settlements. And there’s the bank of the BRICS, the New Development Bank in Shanghai, China.

“Now that Ethiopia is a member of the BRICS, it should tap into financing from that bank. And this will be more projects, more investment, and more opportunities for growth. So I’m a big supporter of the BRICS process.”

Asked about Ethiopia’s ambition for regional integration, Professor Sachs said the Horn of Africa really needs peace, economic cooperation, and investment.

“Regional integration is basically crucial. This is a basic lesson of economics. Neighbors should cooperate with each other. Unfortunately, sometimes neighbors don’t cooperate with each other.”

Ethiopia is a big country in this region, but it wants good cooperation with all of the neighbors. And I would say to the neighbors, go for it, build ports, build connectivity, build railway lines, build power lines and fiber lines. This would benefit everybody, the celebrated American economist elaborated.