የአንድ ዶላር አንድ ዶላር(A Dollar for A Dollar): The Impact of Foreign Investment in Ethiopia

Ethiopia is known for being one of the poorest nations in the world, one where people often are found without access to clean water and 700,000 people starving(Solomon). With all of these shortcomings, Ethiopia is growing at an unprecedented level, in part, due to the significant amount of foreign investment in the Eastern African nation. Starting in 2004, many countries found Ethiopia to be a prime site to invest in due to the nations geography, untapped market, and size(Smith). As the years went on, countries such as China started investing more in Ethiopia, causing annual economic growth.  

During some years, such as 2017, new forms of investment, such as the creation of factories and occupations, arose(Covernews). These new foreign implementations have caused the economy to thrive, prompting the nation to grow to become the fastest growing African nation(Cowen). Since being backed by countries such as China and the US, Ethiopia has been able to sustain a surprising 8.2% growth rate, making it not only the fastest growing African nation but also the fastest growing economy in the world(Cowen).

With the immense amount of foreign investment in Ethiopia, the infrastructure of the nation has significantly improved, through the creation of new buildings, roads, and railways(Marsh). These modifications offer significant changes as since previously Ethiopia has had a numerous sum of rundown buildings, undrivable roads, and many more problematic issues. Investments have changed this and with over 5 billion dollars invested to address all of these flaws(Marsh). Hence, the hefty investment money was used in the creation of new structures and establishments.

Although these financings have boosted Ethiopia as a nation, many are skeptical of the true intentions of these foreign nations. These practices have been associated with neo-colonialism, stating that the Chinese and other countries are using their money and investing it in Ethiopia so that they are able to claim their land and essentially make it their own(Bräutigam). In the case of Ethiopia, colonialism is a topic that many people are strongly against since it is the only African nation to not be colonized. Former secretary of state, Rex Tillerson stated that he finds the investment to be a “predatory loan practice” which inevitably “deni[es] them their long term, self-sustaining growth”(Marsh).  Neither party has been accused of malpractice and seem to be in agreement with the means of their endeavors, and each respective government has set limitations on their investments(Bräutigam).

Though Ethiopia has been absent from the economic success found in other countries, they are on their rise to finally reaching the aforementioned success, in part thanks to the other countries willing to help the East African nation get there. Whether or not they are neo colonists has yet to be discovered, and until this question has been answered, the data shows that Ethiopia’s 3.4 billion dollars in annual revenue will continue to surge and grow to unprecedented levels(Smith).

Works Cited

Bräutigam, Deborah. “U.S. Politicians Get China in Africa All Wrong.” The Washington Post, WP Company, 12 Apr. 2018,
www.washingtonpost.com/news/theworldpost/wp/2018/04/12/china-africa/?utm_term=.55597a31b892.

Cowen, Tyler. “Ethiopia Already Is the ‘China of Africa.’” Bloomberg.com, Bloomberg, 28 Mar. 2018,

www.bloomberg.com/opinion/articles/2018-05-29/ethiopia-already-is-the-china-of-africa.

“Foreign Direct Investment into Ethiopia down 10%.” New Business Ethiopia, Covernews, June 2018,

newbusinessethiopia.com/foreign-direct-investment-into-ethiopia-down-10/.

Marsh, Jenni. “Addis Ababa: The City That China Built.” CNN, Cable News Network, 3 Sept. 2018,
www.cnn.com/style/article/addis-ababa-china-construction-style/index.html.

Smith, Dorothy V. "Abbink, Jon. 2017. A Decade of Ethiopia: Politics, Economy and Society, 2004-2016." Africa Today,
vol. 64, no. 1, 2017, p. 102+. Global Issues in Context,
http://link.galegroup.com/apps/doc/A515795780/GIC?u=los42754&sid=GIC&xid=287bd9ae.

Solomon, Salem. “Oxfam: 700,000 at Risk of Starvation in Ethiopia.” VOA, VOA, 15 Aug. 2017,
www.voanews.com/a/ethiopia-drought-worsens/3986495.html.