Ethiopia, with a population of approximately 85 million, is the second-most populous country in sub-Saharan Africa (SSA). While it is one of the world’s oldest civilizations, it is also one of the world’s poorest countries. Ethiopia’s 2011 GDP per capita is US$354,which is lower than the average of sub-Saharan Africa.
In recent years, Ethiopia has been one of the fastest growing economies in Africa. The Ethiopian economy has navigated the global economic crisis better than most developing countries. The current account deficit was 8.7% of GDP in 2011 and GDP growth was 8.8% in 2011. Inflation was recorded as 25% in 2011.
The current democratically elected ruling party, the Ethiopian People’s Revolutionary Democratic Front (EPRDF) has governed Ethiopia since 1991.
Over the past two decades, there has been significant progress in key human development indicators:
In 2010, the Government launched a five-year Growth and Transformation Plan (GTP), which is geared towards fostering broad-based development in a sustainable manner. The plan seeks to double the GDP and agricultural production, and to increase electricity coverage from 41% to 100% and access to safe water from 68.5% to 98.5%.
Since 2003, the government has embarked on a housing reform programme. Some 11 000 apartments have been completed, providing individual ownership of affordable quality housing.
Investment in Ethiopia (SENS)
In July 2012, PPC and South Africa’s Industrial Development Corporation (IDC) jointly acquired a 47% equity stake in Ethiopia’s Habesha Cement Share Company (HCSCo).
HCSCo is the first cement share company of its kind in Ethiopia, with more than 16 000 local shareholders. The company is planning to build a state-of-the-art cement plant with an annual capacity of 1.4 million cement tons at a cost of US $130 million to supply the fast-growing Ethiopian cement market.
The HCSCo plant, which is currently in the early stages of construction, is located 35km north west of Addis Ababa close to Holeta town in Oromia Regional State. Cement production is planned to commence early in 2014. The plant’s immediate future development plan includes an option to double the capacity to 2.8 million ton per annum.
During the initial construction phases PPC will assist HCSCo by providing operational and technical expertise and with the training of plant personnel at the PPC Academy in South Africa.
BY theHaesha, CEO Mr Mesfin Abi