Ethiopia is Africa's oldest independent country, and one of the continents fastest-growing economies. It presents a unique potential with a population of over 120 million people, and an annual economic growth rate of 10% over the last 15 years. But even with this amazing fast-paced development rate, Ethiopia faces several obstacles which stand in its way from entering the global map of successful economies. Some of these are its low GDP per capita of about $1,000 per year, low internet and smartphone penetration, owing to the country's predominantly rural population, and a government monopoly on the telecom sector. However, Ethiopia is still considered a nation on the rise and is said to become a superpower in the coming decades. Ethiopia, which has a history of being one of the most autocratic and politically repressed countries in sub-Saharan Africa, has been gradually opening up and embracing democratic processes. Democritization has begun domestically, accompanied by a path toward international reconciliation, and peace on a border issue with Eritrea. The Eritrea and Ethiopian border conflict was a violent standoff between Eritrea and Ethiopia that served as a proxy war. The Eritrea and Ethiopian War of 1998 to 2000, and the subsequent second, a far rebellion were among the incidents that occurred along the then disputed boundary. The country began to mend fences, and it tried to normalize relations with Somalia and Djibouti. Ethiopia has gained additional political and financial backing from the European Union, the World Bank, and the International Monetary Fund. The Ethiopian diaspora, which contributes significantly to the economy through remittances, praised the new policies. Ethiopia's global diaspora is estimated to be 2 million strong with the highest numbers in the US, totaling about 1 million. International observers regard the efforts taken toward national security and political reconciliation, such as abolishing the state of emergency, frame political prisoners, and demanding draconian anti-terrorism, media, and civil society regulations to be constructive. More than 70% of Ethiopians are under the age of 30, and over half are under the age of 15. A World Bank report published in 2017 stated that higher education enrollment had increased fivefold since 2005, with the number of public institutions expanding from 8 to 36% during that time. The government has also instituted a 70 to 30 strategy in higher education. That is 70% of students receiving instruction in technology and science, and 30% receiving training in social science and humanities. These are the kind of education strategies that appear to be adapted to the current global setting in a world where service sectors account for 65% of global GDP because of Ethiopia's cost advantages and human capital availability, technology, and knowledge-based companies have the potential to develop. Ethiopia's government has spent a large percentage of its resources over the last decade to ensure that its citizens have access to essential amenities, such as education, health, and water. Ethiopia has one of the largest and most comprehensive human development portfolios in the region. It covers all sectors and accounts for nearly half of the country's program as one of the region's early adopters of the World Bank Group's Human Capital Project, a global effort to accelerate more and better investments in people for greater equity and economic growth. If the country's youth can be channeled through relevant skills training, this human capital will become a vital asset for the economy. Ethiopia is one of the world's greatest untapped markets, and there is growing confidence that privatizing state-owned firms is one method to attract potential investors and stimulate the economy. During the past two decades, 371 enterprises have been privatized and have generated a revenue of 24 billion Ethiopian Burr. Though the privatized enterprises are from different economic sectors, the majority are from agriculture, agro-processing, and manufacturing. According to figures from the International Telecommunications Union, it is also one of the least connected countries in the world, with an internet penetration rate of only 15% in 2016, up from 12% the previous year. The internet penetration rate is now at 29.8% in 2022. Mobile phone coverage increased to 51% in 2016, up from 46% in 2015. The Ethiopian government has resisted opening up major industries to global and domestic investors, but on June 2018, the ruling Ethiopian People's Revolutionary Democratic Front announced a plan to partially liberalize key economic sectors. Global investors will be offered minority ownership and aviation, power, and telecommunications. Furthermore, the prospect of railway projects, hotels, and vital manufacturing industries has already generated enough interest to improve investor confidence, and as a result, the likelihood of attracting investment. The government has also established five industrial parks, which have resulted in the creation of four to five thousand jobs, with the goal of establishing a total of 30 and increasing manufacturing from 5% to 20% of GDP. For a country the size of Ethiopia, local difficulties such as mobility, agriculture, infrastructure, and health care might be turned into a series of opportunities by the startup movement. The establishment of a local startup ecosystem will be required to sustain a successful Ethiopian economy. It will be critical to developing an ecosystem in which universities, large corporations, service providers, and research and funding organizations collaborate to help local entrepreneurs get started and scale up. Entrepreneurial role models like Bethlehem, Tilaan Alemu, founder and managing director of Soul Rebels are a crucial part of Ethiopia's startup puzzle. Bethlehem launched the groundbreaking footwear company in early 2005, just after graduating from college in Addis Avaaba, to generate solid community-based jobs. She is on course to become the first worldwide branded retail chain from a developing country to operate 100 locations and generate over $200 million. She is drawing on her country's strong craftsmanship tradition. Ethiopia and entrepreneurs, however, face systemic hurdles. Grab, lift, careem, and olacabs, among other ride-sharing startups throughout the world, have inspired three similar businesses in Ethiopia. However, Eda, say ride and ride-face challenges, such as low internet penetration, bad connectivity, and a lack of funding. They can, however, be a beat because the government intends to deregulate two of the most heavily regulated industries, banking and telecommunications. Ethiopia is increasingly becoming an important manufacturing destination, particularly in the RMG or Redemade Garment Industry, in addition to its strategic position as a long-haul transit center. The country provides a promising investment environment to the textile and garment manufacturing sector and is all set to become one of the preferred garment manufacturing hubs in the near future. RMG suppliers are under pressure to minimize the time between design and final delivery as a result of Zara's business model success. Even loyal to the brands is one of the simplest ways to accomplish this. However, most major companies now lack viable options closer to their home markets, relying primarily on low-cost countries such as Bangladesh and Vietnam. Bangladesh's RMG manufacturing sector is rapidly turning to Ethiopia in order to maintain its low-cost edge and to be closer to key European brands. Ethiopia is well positioned to excel in the clothing manufacturing industry thanks to its strategic location and low-cost labor, assuming it can train its young people to produce the requisite quality. Ethiopia's government has created comprehensive agricultural and economic development plans that have helped the country's agriculture, industrial and services sectors grow significantly. These efforts have been pushed in recent years by an unprecedented economic reform process aimed at building on Ethiopia's tremendous expansion in the quantity, diversity, and market share of private firms in the economy. However, issues such as unskilled labor, high transportation costs, inadequate financial and telecommunication services, and land tenure insecurity continue to exist. About two-fifths of Ethiopia's GDP comes from the services sector, particularly tourism. Although tourism was restricted under the Durg administration, Ethiopia is now promoting the tourist potential of historical treasures such as La La Belice Rocking churches, axoms and teaks and the Gondor castles. Ethiopia's various peoples, fascinating traditions, and natural beauty all appeal to the same audience. Ethiopia's air transport system has achieved unprecedented success in Africa. Throughout the country there are various airports. Ethiopia and Airlines, a state owned but independently run carrier, has a well-developed internal network that connects major cities and tourism destinations. Its global network offers outstanding service to destinations all over the world. Bowl International Airport near Anis Avaba is a hub for Ethiopian Airlines and other international airlines, as well as a recognized training and maintenance facility for pilots. That is becoming more and more a hub for African development and with growth numbers, like the ones coming out of Atis Avaba. It's only but certain that in the future we're going to be looking at a whole new and improved Ethiopia. What do you think of Ethiopia? Thanks for watching, and if you enjoyed this video, please do leave a like. Also, don't forget to subscribe to our channel so you don't miss out on any of our future content. See you in our next video.