GLOBAL
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Talking point
Ethiopia: The African tiger
October 14, 2013
The East African country has been experiencing impressive economic growth: double-digit between 2004 and 2010, it has averaged 8.7% annually over the past five years thanks to the expansion of agriculture and services. Ethiopia has thus been the fastest-growing economy in Sub-Saharan Africa (SSA). Projected at 6.5% annually over the next five years, it is set to remain on a robust growth path.
A fast-growing and sizeable market
At around USD 50 billion, Ethiopia’s GDP is one of the largest in SSA, similar to Kenya’s and Ghana’s. (Based on purchasing power parity, Ethiopia’s economy is the fourth largest in SSA, 25% to 35% larger than the economies of Ghana and Kenya.) Ethiopia is also Africa’s most populous country after Nigeria, with a population of 87 million which is additionally very young: the median age of 17.5 years is even less than the average for SSA (18.6). It is urbanising fast and a middle class is emerging, especially in the cities. There seems to be a considerable upper class in the making, too: Ethiopia is viewed as the African country where the number of US dollar millionaires will grow the fastest – from 2,700 in 2012 to 4,700 in 2020 according to New World Wealth.