Fairfax Africa Fund Chair, Negatu sees Ethiopian economy regaining momentum in 2021

Ethiopia, a country known for its lax COVID-19 measures, faced economic challenges in the fourth quarter of 2020. However, Zemedeneh Negatu, the Global Chairman of Fairfax Africa Fund, remains optimistic about the country's economic outlook for 2021. In a recent interview with CNBC Africa, Negatu highlighted the potential for Ethiopia to regain momentum and achieve significant growth in the coming year. The African Development Bank's Africa Outlook report for 2021 forecasts Ethiopia's economy to grow at 4.1%, outperforming the continent's overall growth rate of 3.4%. Additionally, the IMF's projection for 2021-2022 indicates a remarkable 9% GDP growth for Ethiopia. This optimistic forecast demonstrates Ethiopia's resilience and potential to bounce back from the economic impacts of COVID-19. Negatu emphasized the importance of maintaining vigilance to prevent a resurgence of the virus and ensuring a successful rollout of vaccines to support global economic recovery. Despite challenges such as inflation and structural issues, Negatu suggested strategies like allowing foreign retail companies to engage in joint ventures within Ethiopia to enhance efficiency and address economic concerns. The country's focus on infrastructure development and the gradual transition to a private sector-led growth model are key factors driving Ethiopia's economic resurgence. With significant investments in infrastructure and industrial parks, Ethiopia is poised to leverage these assets for sustainable economic growth.