Is Ethiopian Growth Benefiting the Citizens? | Access Africa

Is Ethiopian Growth Benefiting the Citizens?  | Access Africa


Welcome to Access Africa a brand new CNBC
show that takes a closer look at the true story of the continent This episode we’re in the capital of Ethiopia Addis Ababa It was the twelfth fastest growing economy
in the world in 2012 And for the past decade it has seen an average
annual growth rate of 10.9 percent Recently it was given it’s first ever soverign
debt credit rating by Moody’s, fitch and S&P Does this mean that Ethiopia is open for business? Questions have been raised about the countries
private sector Agricultural productivity Low savings rates And weak trade But analylists still expect growth to continue
for now So as the African lion powers ahead, construction
is booming in Addis Ababa but how much of the growth is actually trickling down to the
population? Oxford University ranks Ethiopia as the second
poorest country in the World Just ahead of Niger Something the Prime Minister, with his growth
and transformation plan, wants to change Prime Minister Hailemariam Desalegn thank
you very much for joining us on Access Africa It’s my pleasure and welcome to Ethiopia This is the second most populous country in
Africa but it’s also one of the World’s poorest You’ve already halved the number of people
living under the poverty line In just under twenty years But there’s still some work to do You have a target to reduce that to 22.2 percent
by 2015 Is that achievable and how do you plan to
do it? I think it’s achievable first of all our economy
is mainly based on agriculture and also 80 percent of our people reside in rural areas
where agriculture is their basic needs and basic economic outlay So in that sense if you increase productivity
and production in agriculture and modernize the rural and agricultural production then
I think it’s obviously possible to reach this stage I’ve had a bit of a chance to walk around
Addis Ababa and also speak to some of the people here Do you think that the newly generated wealth
has trickled down fast enough to the average citizen? I think if you want to see the inclusiveness
of the growth you have to see the figure The economists call it the Gini Coefficient Ethiopia Gini Coefficient is something below
0.3 Which is the most inclusive kind of growth So you’re happy with how fast the wealth has
trickled down? Of course At this economic stage it is absolutely we
can say that it is inclusive

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