Addis Ababa — Since Prime Minister Hailemariam Desalegn became head of Ethiopia's government upon the death of Meles Zenawi in 2012, the economy has been one of the fastest growing in Africa, with rates exceeding 10 percent. In September, the fifty-year-old Hailemariam was elected unanimously to another term by the lower house of Parliament, in which the ruling Ethiopian People's Revolutionary Democratic Front (EPRDF) won all seats in last May's elections.
In an exclusive interview with AllAfrica's Reed Kramer, after the Corporate Council on Africa's U.S.-Africa Business Summit in Ethiopia last month, the prime minister outlined why his government is seeking private investment to boost job creation and generate foreign exchange. He also addressed local and international criticism of the government's forcible handling of recent protests, its record on human rights and press freedom and the issue of security in a troubled region.Addressing the severe famine facing Ethiopia due to the worst drought in 50 years - which experts say is attributable to the El Niño effect exacerbating climate change - the prime minister points to a 'lackluster' international response. Distinct from the famous famine of the 1980s, which prompted performances by musicians worldwide to promote aid amid hundreds of thousands of deaths, Ethiopia is spending its own resources to avert the worst effects. But less than half the international aid needed to avert severe malnutrition and widespread starvation has been pledged.AllAfrica interviews are edited for brevity and clarity.
There were more than 1400 attendees at the U.S.-Africa Business Summit here in the capital. Is trade and investment with the United States a priority for your government?
We feel it is time to strengthen this relationship. Ethiopia wants to diversify trade and investment with our traditional partners including the United States of America. The United States is a major market for light manufacturing, floriculture [flower farming], coffee and [other] high-value crops that Ethiopia is producing. The advantages are mutual.
Ethiopia is a fast-growing economy because we are investing heavily in infrastructure. If we want to harvest the infrastructure dividend, we need to attract more investment. Otherwise, the infrastructure investment has no return. U.S. investors with their high-quality production can support us by building local capacity, including transferring technology know-how. We have a vibrant, young, dynamic population that needs more skill, know-how, and technology transfer into the country.
We have been trying for years [to attract U.S. investors], but now we are seeing a growing number coming to Ethiopia – especially in the floriculture sector, like KKR. In light manufacturing, companies like PVH and Vanity Fair are coming into Ethiopia. Companies like GE and Boeing are very active. In addition, there are equity investors that have already started engagement with us - Black Rhino and others. We want to make Ethiopia a hub for this kind of manufacturing and maintenance services. [links]
This is a good time for us to push forward and get more investors. and this is a good time for more companies to come into our country.
U.S.-Ethiopia relations have been good for a long time. Why do you think the investment has been slow to come?
I feel it's the perception U.S. investors have about Africa in general. I think that's now changing. When big companies like those I mentioned invest, then others get confidence. We want to make those pioneers to be successful; then others can be attracted more.
Your government has made major strides in meeting the Millennium Development Goals agreed among countries worldwide at the United Nations. Now there are Sustainable Development Goals. How is Ethiopia doing?
For the Millennium Development Goals, we successfully achieved all except one. And we'll continue to do this in the coming 15 years with the Sustainable Development Goals as well. We have made this progress because we engage our people fully into the system. In health, for example, our women are very active in the process. In the poverty goals, our farmers are very active – 70 per cent of our people are residing in rural areas and depend on farming for their livelihood. If our young people are engaged, then we can achieve. If we put people at the center, we can achieve those goals.
What role do women have in your government's policies and plans?
Women are very active [through] their own organizations - at the grassroots up to the federal level, and they strongly fight for their rights. They have [political] clout.
What part does agriculture play in your economic priorities?
Agriculture is the backbone of this economy. It's going to continue as a backbone for the economy. Small-holder farming which is integrated [with] private-sector contract farming, is one of the areas we're focusing. The second one is big companies investing in large-scale farming and intensive agriculture like floriculture, where some of the U.S. companies have already started.
The combination of small-holder farming and big companies involved with livestock development processing and also in large-scale farming in soybean and other crops that are very high value – this combination helps us to further our agriculture modernization program. Vertical integration is very important, and manufacturing comes as one of the pillars.
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