Ethiopia in 2009 – The Economist Intelligence Unit
According to The World in 2009 report, published by The Economist Intelligence Unit, in 2009, Ethiopia’s economy is expected to grow at 7% and its GDP is predicted to reach $31 Billion. Inflation is predicted to be 15% and the GDP per head for Ethiopia is predicted at $350.
The Ethiopian People’s Revolutionary Democratic Front is firmly in power, but political tensions will rise as all parties plan for the next general election, due in 2010. Events in the Horn of Africa will dominate foreign policy. A border dispute with Eritrea will stay hot, and their proxy war in Somalia shows little sign of subsiding. Strong growth in services and agriculture will yield a healthy economic expansion of 7%. Donor financing is likely to be scaled up after post-election violence in 2005 led to a temporary downturn in flows.
Ethiopia in 2009
GDP growth: 7.0%
GDP: $31bn (PPP: $71bn)
GDP per head: $350 (PPP: $810)
Kenya in 2009
GDP growth: 3.5%
GDP: $35bn (PPP: $67bn)
GDP per head: $880 (PPP: $1,700)
Ethiopia ranks 31st in latest Ibrahim Index of African Governance
Ethiopia has slipped one place from last year to rank 31st in the latest Ibrahim Index of African Governance released in Addis Ababa, Ethiopia.
The 2008 Ibrahim Index of African Governance published today by the Mo Ibrahim Foundation shows that between 2005 and 2006 Ethiopia’s overall score declined to 50.9 out of 100, as the country fell one place to rank 31st out of sub-Saharan Africa’s 48 countries. Ethiopia's score have fallen in three out of the five categories; Safety and Security; Rule of Law, Transparency and Corruption; and Participation and Human Rights. Ethiopia’s scores in the other two categories - Sustainable Economic Opportunity and Human Development – have improved.
The most notable decline was in Participation and Human Rights, in which Ethiopia’s score fell by 3.9 points. Another notable movement was in Human Development in which Ethiopia’s score rose by 1.7 points.
Within the Horn of Africa, Djibouti was the only country to improve its score with respect to last year. Somalia again occupies bottom place in the Ibrahim Index. No country from the Horn of Africa featured in the top half of the Ibrahim Index. Ethiopia ranks second out of the four countries in the region but is top of the region for Sustainable Economic Opportunity. Ethiopia outperforms neighbouring Eritrea overall and in the Human Development; Sustainable Economic Opportunity; and Participation and Human Rights categories.
The Ibrahim Index indicates that two thirds of sub-Saharan African countries have improved their governance performance during the last year. Liberia, the fastest riser, ranks 38th with a change in score of 10.4 points to give a score this year of 48.7.
Participation and Human Rights is the category with the largest improvements, with 29 countries demonstrating progress. Many of these have demonstrated improved participation in elections generally deemed free and fair by international observers. However many issues remain across the continent in this area particularly with regard to women’s rights. A majority of countries also recorded improvements in the categories of Rule of Law, Transparency and Corruption; Human Development; and Sustainable Economic Opportunity between 2005 and 2006.
For the second year running, Mauritius tops the Ibrahim Index, scoring 85.1 this year. Membership of the top five remains unchanged and is comprised of Seychelles, Cape Verde, Botswana and South Africa all of which score over 71.0.
The Ibrahim Index of African Governance is a comprehensive ranking of sub-Saharan African nations according to governance quality. The Ibrahim Index assesses national governance against 57 criteria that capture the quality of services provided to citizens by governments. The focus is on the results that the people of a country experience. These criteria are divided into five overarching categories which together make up the core obligations which governments have to their citizens.
The full Board of the Mo Ibrahim Foundation convened in Addis Ababa, the home of the African Union, to make the announcement this morning. Mo Ibrahim, the founder and Chairman of the Foundation, says
“Obscured by many of the headlines of the past few months, the real story coming out of Africa is that governance performance across a large majority of African countries is improving. According to this comprehensive analysis, progress is being made across the continent against a range of key governance indicators. I hope that these results will be used as a tool by Africa’s citizens to hold their governments to account, and stimulate debate about the performance of those who govern in their name”.
Mary Robinson, a member of the Mo Ibrahim Foundation Board who has previously served as the UN High Commissioner for Human Rights and President of Ireland, says:
“It is particularly fitting that during the sixtieth anniversary of the Universal Declaration of Human Rights we are seeing the most notable improvement in governance take place within the category of participation and human rights. More sub-Saharan African countries than ever are holding democratic elections, and I am hopeful that this will help form the platform for continued progress across the continent”.
Ethiopia - Two Ethiopian Banks among Africa's Top 100 Banks
(nazret.com) - Two Ethiopian banks made it to Africa's Top 100 Banks list according to African Business magazine's annual rankings of the biggest banks in Africa in terms of capital. Commercial Bank of Ethiopia (CBE) ranks 57th and Dashen Bank is 88th largest bank in Africa. According to the magazine, Ethiopia's state owned Commercial Bank has a capital of $173 million USD as of June 2006 and an asset of $4.1 Billion. It is one of the most profitable banks in Africa with $90 million in profit. The private Dashen Bank ranks 88th in Africa with a capital $60 million as of June 2007, its asset is $665 million and annual profit of $21 million.
CBE has 205 branches across Ethiopia and has broken through the 2 million customer barrier for the first time, giving it a 63.5% share of the Ethiopian market in terms of deposits. Dashen Bank has moved up from 23rd to 10th in East African region as a result of an increase in capital from $28 million to $60 million, the magazine writes.
In regional ranking, Commercial Bank of Ethiopia ranks 4th in East Africa after Mauritius Commercial Bank, Barclays Bank of Kenya and State Bank of Mauritius. Kenya Commercial Bank is 5th in East Africa region and Dashen Bank ranks 10th in East African region.
Nigeria and South Africa are Africa's banking giants where 19 of the Top 100 banks are based in Nigeria and South Africa has 11 banks in the top 100 banks. South African banks dominate the top 5 listings with Standard Bank Group of South Africa being the largest bank in Africa with a capital of $8 Billion.
Kenya and Egypt each has 8 banks in Africa's top 100 banks list.
Top 10 Banks in Africa measured by capital
1. Standard Bank Group (South Africa)
2. FirstRand Banking Group (South Africa)
3. ABSA Group (South Africa)
4. Nedbank Group (South Africa)
5. Investec Bank Ltd (South Africa)
6. Zenith International Bank (Nigeria)
7. AAttijariwafa Bank (Morocco)
8. Oceanic Bank (Nigeria)
9. Intercontinental Bank (Nigeria)
10. Groupe Banques Populare (Morocco)
57. Commercial Bank of Ethiopia
88. Dashen Bank (Ethiopia)
For complete list and article, check out October 2008 issue of African Business magazine on sale at bookstores near you.
Ed's Note: Ethiopia has a long way to catch up with financial centers like Nigeria, South Africa, Egypt, Morocco and Kenya.
FDI to Ethiopia down by 53% from 2006 level - UNCTAD
(Nazret.com) - Foreign Direct Investment (FDI) to Ethiopia is down by 53% in 2007 compared to the previous year, according to a report released by United Nations Conference on Trade and Development (UNCTAD).
The report says, "Inflows to Ethiopia declined because of oil exploration projects that failed to yield sufficient reserves to warrant more investments". Ethiopia attracted $254 million in foreign direct investment in 2007 compared to $545 million in 2006. The report ranks Ethiopia 92nd among 141 economies, in inward FDI Performance Index for 2007.
Africa received record foreign direct investment (FDI) inflows of US$ 53 billion in 2007. According to the report, subtitled "Transnational Corporations and the Infrastructure Challenge", the surge in FDI to the region and its profitability, were driven by the boom in global commodity prices and by Africa's changing policy environment.
Africa top 10 recipients of FDI inflows, a 2006-2007
3. South Africa
7. Equatorial Guinea
Africa´s FDI inflows in 2007 continued to be geographically concentrated: the top 10 host countries accounted for over 82% of total inflows
Ethiopia improves in TI Corruption Index to 126th
(nazret.com)-Ethiopia has improved its ranking in the annual corruption index report by Berlin based Transparency International (TI). According to the 2008 TI Corruption Index, Ethiopia has improved from 138th place last year to 126th. Ethiopia is ranked in the same league as Indonesia, Uganda, Guyana, Libya, Eritrea and Mozambique all ranking 126th. Ethiopia ranks 25th in Sub-Saharan Africa. Botswana is perceived to be the least corrupt country in Sub-Saharan Africa followed by Mauritius, Cape Verde, South Africa, Seychelles, Namibia, Ghana, Swaziland and Burkina Faso. The most corrupt countries are Chad, Sudan, Guinea and Somalia. Somalia being the most corrupt country in the world.
The Transparency International CPI measures the perceived levels of public-sector corruption in a given country and is a composite index, drawing on different expert and business surveys. The 2008 CPI scores 180 countries (the same number as the 2007 CPI) on a scale from zero (highly corrupt) to ten (highly clean).
Denmark, New Zealand and Sweden share the highest score at 9.3, followed immediately by Singapore at 9.2. Bringing up the rear is Somalia at 1.0, slightly trailing Iraq and Myanmar at 1.3 and Haiti at 1.4.
Least Corrupt Countries
1 New Zealand
Most Corrupt Countries
171 Congo,Democratic Republic
171 Equatorial Guinea
Selected Countries and Ranking
16 United Kingdom
Ethiopia ranks 138 in Corruption Index - TI 2007