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Ethiopia to overtake Kenya as Eastern Africa ’ s top economy
Ethiopia ’ s economy is expected to overtake Kenya ’ s this year , buoyed by massive government spending on infrastructure that has kept the Horn of Africa nation in the list of the world ’ s fastest economies in the past 10 years .
The International Monetary Fund ’ s ( IMF ) latest statistical estimates indicate that Ethiopia ’ s gross domestic product ( GDP ) is forecast to grow from $ 61.62 billion in 2015 to $ 69.21 billion this year , narrowly beating Kenya ’ s output which is expected to rise from $ 63.39 billion to $ 69.17 billion over the same period .
“ Ethiopia has experienced double-digit economic growth , averaging 10.8 per cent since 2005 , which has mainly been underpinned by public-sector-led development ,” the African Development Bank , the OECD Development Centre and the United Nations Development Programme say in the latest African Economic Outlook report .
Kenya ’ s GDP of $ 14.1 billion in 2000 was 71.6 per cent larger than Ethiopia ’ s $ 8.23 billion in the same year but the Horn of Africa nation has closed the economic gap in the last five years of robust growth .
The IMF ’ s GDP estimates are based on current market prices using exchange rates prevailing between July 22 and August 19 .
Climate change to cost Africa over $ 3 trillion
Someone once said that deforestation in the tropics was one of the worst crises since we came out of our caves 10,000 years ago .
Even though forests have a vital role to play in the fight against global warming as they absorb and store carbon in their trees and soil , felling trees has for long remained man ’ s favourite activity .
Over the years , forests have been converted to non-forest land for use such as arable land , pasture , urban use , logged area , wasteland , etc , which leads to the release of carbon dioxide and other greenhouse gases , subsequently causing global warming .
The United Nations Food and
Agriculture Organisation ( FAO ) estimates that the world loses 18 million acres of forest each year .
Now it ’ s time for us to pay the price -- and it ’ s pretty high ! In Africa alone , countries will have to fork out at least $ 2.7 trillion for mitigation measures and another $ 488 billion for adaptation to climatic change by 2030 , experts say .
World Bank estimates indicate that Africa needs between $ 5 to $ 10 billion per year to adapt to global warming , but these numbers will continue to increase as the years go by . The Bank has committed to mobilise about $ 90 billion for adaptation programmes to global warming by 2020 , according to media reports .
06 - CHIEF EXECUTIVE