The World Economy Forum in Davos opened on Tuesday (January 22), and this year’s theme was “Globalization 4.0: Shaping a New Architecture in the Age of the Fourth Industrial Revolution.” The Forum comes at a time when the IMF believes the “cyclical forces that propelled growth may be weakening faster than we thought.” The IMF has cut its forecasts for global growth. The world economy is now expected to grow 3.5% in 2019 and 3.6% in 2020. In other words, it is expecting rising risks and slowing growth, and calls on policy-makers to resolve trade disagreements cooperatively and quickly. Founder and Executive Chairman of the World Economic Forum, Professor Schwab said: “The combination of climate change, income inequality, technology and geopolitics pose an existential threat to humanity.” He added, “while the international community’s capacity for concerted action appears constrained, the overwhelming desire of the global public is for leaders to find new ways to work together that will allow them to cooperate on these critical shared challenges we all face.”
In his address to the Forum on Wednesday, Prime Minister Dr Abiy told participants about the nationwide reforms undertaken during the past nine months and the economic growth registered in the country. He underlined the practical outcomes and the progress of the sweeping reforms Ethiopia is undertaking in good governance, democratization, opening up political space and most importantly, efforts to ensure regional peace, stability and integration in the Horn. “Ethiopia today is among the fastest growing economies in the world, consistently averaging growth of over 9%. Poverty has been halved and education enrolment has markedly increased,” he said. The gross domestic product had multiplied 10-fold in 25 years. The Prime Minister said investment in infrastructure had contributed a lot to the growth and attracted Foreign Direct Investment, making Ethiopia one of the leading FDI destinations in Africa.
At the same time, “Our challenges however, remain formidable,” and they included the need to sustain the level of growth, and especially to find jobs for a rapidly expanding young population. In order to ensure the continued upward trajectory and achieve even more rapid and sustainable growth, Ethiopia had embarked on a comprehensive reform process since April, he said. And this was deeply rooted in in the philosophy of “medemer”, an Amharic word for coming together. “Medemer” is people-centered and has three interdependent pillars, vibrant democracy, economic vitality and regional integration and openness to the world. The Prime Minister pledged to make it easier to do business for everyone who wished to invest in Ethiopia, and he called on investors from across the world to take advantage of the huge investment and business potentials available in the country. He emphasized that his government was committed to opening up the economy to international investors in telecommunications, logistics, energy, aviation, railways, and industrial parks. It would also continue to foster public private partnerships.
On the side-lines of the Forum, the Prime Minister convened an Investment Strategy Dialogue with selected CEOs of multinational corporations to highlight the progress that is becoming evident in Ethiopia and the improvements that are tangible despite challenges and setbacks. A robust discussion showcased untapped investment opportunities and policy priorities in Ethiopia. The Prime Minister stressed Ethiopia, one of the fastest-growing economies in the world, was located in the crossroads between Africa, the Middle East and Asia with enormous untapped investment opportunities in agriculture, textile, agro-processing, infrastructure and various segments. He briefed the CEOs on the great strides Ethiopia is taking with its Growth and Transformation Plan, becoming the embodiment of the ‘Africa rising narrative’. This was principally attributable to the Government actively promoting private sector investment with attractive incentive packages, coupled with major government projects aimed at achieving the Sustainable Development Goals as Ethiopia aims to become a middle-income status by 2025.
Prime Minister Dr. Abiy met various international development partners on the margins of the Forum as well as holding numerous bilateral meetings. He held talks on bilateral issues with Charles Michel, Prime Minister of Belgium, and discussions with the Interim President of the World Bank Group, Kristalina Georgieva. Dr. Abiy commended the Group’s robust and strong technical and financial support to Ethiopia and asked for this support to be sustained. They shared views on new pipeline projects that have both regional and national dimensions. The Prime Minister met with Bill Gates, co-Chairman of Bill and Melinda Gates Foundation and thanked him for the work of the Foundation in health, agriculture and state capacity building. They agreed to enhance cooperation in agriculture, irrigation and technology.
The Prime Minister discussed the importance of “a collaborative approach among governments, the private sector and civil society in in addressing key global challenges” with Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. They agreed that Ethiopia should host the African meeting of the World Economic Forum in Addis Ababa in 2020. He also had a meeting with George Soros, Head of the Open Society Foundation, who praised the progressive measures taken in Ethiopia and the speed with which they are being delivered, mentioning particularly reforms in enabling civil societies and the progressive refugee law. They shared views on electoral integrity, challenges of democratization, access to justice and economic inclusion, institutional and regulatory reforms. The Prime Minister expressed his desire to work for the exchange of ideas and experiences with the Open Society Foundation to enhance Ethiopia’s electoral integrity, and address major challenges of democratization, institutional and regulatory reforms for economic inclusion and holistic country growth.
The Prime Minister also met and held discussions with Mohammed Al Shaibani, CEO of Investment Corporation of Dubai, a US$200 Billion Sovereign Fund. The ICD has said it is keen to invest in the hospitality and agro-business industries in Ethiopia. He had what was described as a ‘very productive discussion’ with Jack Ma, Chairman of the Alibaba Group on the future of disruptive technologies on markets and society. Mr. Ma agreed to consider potential investment in a technology city in Ethiopia that will impact the daily lives of the people in the region.
