20 August 2018

Africa: The China of Africa Seeks to Settle $26 Billion Debt

Africa's fastest growing economy is seeking to solve the trade deficit that could slow down its economic prowess. Ethiopia touted as the 'China of Africa' due to its similarities with the East Asian country has a $26 billion debt. The amount needs to be dealt with should the country push its efforts to be a middle-income status by the year 2025. Federal debt is a worry to any Government and a threat to the development of an economy. A number of sectors are affected financially especially when they depend on the Parliament for funds for normal operations.

The country seeks to improve its trade volume by increasing its production to have enough for exports. The nation can count on Foreign Direct Investments, with the promising market to steer its performance. Having opened its boundaries for business, the new East Africa's investment hub can hope for better quality and quantity. Among its major exports include coffee, fruits and vegetables, textiles and mineral products. The nation has a number of business opportunities which could be tapped into and aid in the development of the major sectors.

Ethiopia's GDP is expected to rise by 8.5% this year which could help balance the trade deficit experienced. In 2016, its GDP was $72.37 billion, according to reports by World Bank. Trade accounts for 36% of the country's GDP with was estimated to have rebounded in FY2017 to 10.9%.

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