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Ethiopia's debt: an economic and political liability


Ethiopia’s debt: an economic and political liability
May 16, 2021
But the economic headwinds are equally strong—and they have the potential to compound political dilemmas.
As part of the state-led developmental project pursued by the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF), most intensively after 2010, the government invested big, both directly and through state-owned enterprises (SOEs).
While the injected capital—mainly to finance infrastructure— produced impressive economic growth, the model was heavily reliant on debt. The sustainability of this formula depends both on realizing returns that are higher than the contracted interest rates and securing foreign exchange with which to repay interest and principal. ....

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New Commercial Code of Ethiopia's implications – New Business Ethiopia


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By Tsegamlak Solomon – When investors think about Ethiopia, they often see the country as a difficult one to do business in. According to the World Bank, Ethiopia ranks 159 out of 190 in their Ease of Doing Business ranking.
While several reasons contribute to this ranking and the challenging business environment, the country has been working to rectify this and has been progressing their laws and programs to entice more people to invest in the country. One of the major changes that happened in 2019 was the adoption of the Homegrown Economic Reform Program, which aimed to transition the country’s economy and improve the country’s ranking. ....

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