Kenya mustn’t treat Ethiopia
The latest statistical estimates of the International Monetary Fund (IMF) has indicated that Ethiopia’s economy is set to overtake Kenya’s this year for certain reasons.
First, Ethiopia’s government’s huge spending on infrastructure anchored the structures of the nation’s economy in such manner that has kept the country in the list of the world’s fastest economies for about a decade.
For instance, Ethiopia is currently constructing a $5 billion Grand Renaissance Dam. When it’s done, it’s expected to generate 6,000 megawatts which will, in turn, generate a $1 billion annual income for the country.
Ethiopia wouldn’t just have enough power to sustain its development. It will export electricity to other nations.
Sadly we can’t say that about Kenya where monkeys are blamed for nationwide blackout. It’s fair to say the electric power supply of the country is clouded with uncertainties. Every now and then, Kenyans anticipate another monkey to fall on a transformer at the Kenyan hydroelectric dam.
IMF stats also predicted that Ethiopia’s gross domestic product (GDP) will grow from a previous $61.62 billion in 2015 to $69.21 billion this year. As such, outclassing Kenya’s which is expected to rise from $63.39 billion to $69.17 billion over the same period.
The Organisation for Economic Co-operation and Development (OECD), African Development Bank and the United Nations Development Programme supported IMF’s prediction in its ‘African Economic Outlook’ report.
According to the report, “Ethiopia has experienced double-digit economic growth averaging 10.8 per cent since 2005.” That, the report specified, “has mainly been underpinned by public-sector-led development.”
Also, Ethiopia’s speedy economic growth was attributed to its massive investment in the public sector akin to the Chinese development strategy.
Again, the African Economic Outlook report buttressed on this saying public investments are expected to expand growth.
“Public investments are expected to continue driving growth in the short and medium term with huge investments in infrastructure and the development of industrial parks, prioritized to ease bottlenecks to structural transformation, which will still have to take shape with industry playing a significant role in the economy,” highlighted the report.