While no one was looking, the African nation of Ethiopia was quietly becoming an industrial powerhouse. Some are calling it the future “Wakanda,” as in the Hollywood blockbuster movie “Black Panther” where Wakanda was ruler in technological advancement and full of ancient and rich culture.
“Ethiopia seems to be attracting the attention of economists interested in Africa, and for good reason. Except for Rwanda, Ethiopia is the only African country whose economic growth has been consistently high for more than a decade without relying on a natural resource boom,” Quartz reported.
The proof is in the numbers. “Between 2004 and 2014, per capita growth in Ethiopia was 8% per year. This was the highest on the continent during this period, and is impressive by any standard,” Quartz reported.
A construction boom as well as increased agricultural productivity has been fueling the growth. In fact, Ethiopia is currently the third largest cement producer in Africa. Manufacturing is playing a part as well. The sector has seen a growth It has grown 11% per year and manufacturing exports increased “more than elevenfold.” Some experts predict Ethiopia will catch up with China and Vietnam in low-tech manufacturing soon.
“Nevertheless, manufacturing as a share of gross domestic product in Ethiopia remains 5%, well below the African average of 10%. The country also scores below the African average on diversification, export competitiveness, productivity and technological upgrading,” Quartz reported. “Despite this, it’s not a long-shot to predict that Ethiopia will catch up with countries like China and Vietnam in some low-tech manufacturing industries in the near future. These are industries for which labor costs are The Ethiopian government’s focus on education and infrastructure has paid off. “Enrollment in primary schools has increased from below 20% in the early 1990s to about 94% in 2012. The number of universities has increased from one in 1990 to more than 30,” Quartz reported.
The government also allotted heavy investment in infrastructure development, especially transport and power generation. “The country is set to quadruple its power generation capacity when the Grand Ethiopian Renaissance Dam on the Nile is finished in 2017/18. One of the largest hydroelectric power stations in the world, the dam will generate 6,000MW,” Quartz reported.
On the tech side, foreign investment has helped. “Foreign investors say Ethiopia has become an attractive investment location because of natural endowments such as land and altitude, cheap labor and government incentives. These incentives include tax holidays on profits for up to five years, duty free privileges on all capital goods and the provision of construction material,” Quartz reported.
Business is booming all over Ethiopia. “The Metals and Engineering Corporation (METEC), a large state-owned conglomerate, has already established factories producing automobile engines and light vehicles to serve the growing demands of a modernizing country. In the country’s Vision 2025, Ethiopia has expressed ambitions of becoming a player in the aerospace industries. Already, Ethiopian airlines have formed a joint-venture aerospace company with South Africa’s Aerosud that will manufacture and supply aircraft parts to Boeing, Airbus and other aerospace players,” Asia Times reported.
Add to the business boom Ethiopia’s ancient history and a deep cultural identity and some people say you get the real Wakanda.
“If Ethiopia continues in its program of large-scale urbanization and the expansion of its manufacturing capabilities into fields of high technology and innovation, it could become a genuine embodiment of Black Panther’s Wakanda and serve as a shining beacon for the rest of the African continent,” Asia Times reported.
