Publication: Creating Markets in Ethiopia: Sustaining Progress Towards Industrialization
Date
2019-03-20
ISSN
Published
2019-03-20
Author(s)
World Bank
International Finance Corporation
Abstract
Ethiopia has made impressive strides
along its developmental path. Job creation is now the
critical development challenge, raising the importance of
the private sector agenda. After more than a decade of
sustained public sector-led growth, the government is
revising its growth strategy to allow for a much greater
role for the private sector in driving growth and job
creation. Broadening the base for job creation beyond light
manufacturing toward a wider range of high productivity
agricultural and services activities will help to overcome
the uneven spatial distribution of manufacturing jobs across
the country. Ethiopia has a number of advantages that it can
leverage to attract the investment needed for job creation.
These include rapidly improving transport and energy
infrastructure, low labor costs, a large and growing
domestic market, cheap power, an ideal climate, and
preferential market access to the European Union, the United
States, and other major markets. The purpose of the Ethiopia
country private sector diagnostic (CPSD) is to support the
transition to a private sector- driven growth model that
advances the country’s development objectives and, in
particular, delivers the necessary jobs. It identifies
investment opportunities that can materialize in the short
term, and the reforms that are needed to enable these
opportunities to emerge. It also discusses how specific
actions by the public sector, in collaboration with the
private sector, in filling gaps in public investment,
reforming business regulations and trade policy, addressing
market failures, and enhancing the efficiency of key
backbone services and sectors, while tackling gender
inequalities, can fully unleash the potential of private
sector investment.
Citation
“World Bank; International Finance Corporation. 2019. Creating Markets in Ethiopia; Creating Markets in Ethiopia : Sustaining Progress Towards Industrialization. Country Private Sector Diagnostic;. © International Finance Corporation, Washington, DC. http://openknowledge.worldbank.org/handle/10986/32403 License: CC BY-NC-ND 3.0 IGO.”