Addis Ababa, September 16, 2026 (FMC) — Ethiopia has the potential to sustain annual economic growth of between 9 and 11 percent for decades, supported by expanding agriculture and manufacturing, natural resource development, tourism and its large youthful population, Capital Investment Bank CEO Zemedeneh Negatu said.
Zemedeneh said Ethiopia’s prospects should be considered against the backdrop of its ongoing economic transformation and the significant resources that remain available for development.
He identified several potential drivers of sustained growth, including the transformation of agriculture from subsistence farming toward mechanized and commercial production.
Agriculture continues to make a major contribution to the Ethiopian economy, while recent gains in wheat production have demonstrated the country’s capacity to raise productivity and reduce dependence on imports.
Continued modernization of the sector could position Ethiopia among Africa’s major food producers and exporters, he said.
Manufacturing is another area with substantial potential, particularly labor-intensive industries such as textiles, clothing, footwear and electronics.
Ethiopia’s large and trainable workforce offers an important advantage in developing these industries, Zemedeneh said, emphasizing the need to progressively move toward higher-value manufacturing and technology-based production.
He pointed to the development experiences of China, South Korea, Japan, Singapore and Vietnam as potentially relevant to Ethiopia.
China’s decades of sustained economic expansion, in particular, demonstrate that countries starting from relatively low economic bases can undergo rapid transformation through consistent investment and a sustained policy focus, he observed.
Zemedeneh also identified natural resources as a significant potential source of future growth, noting that Ethiopia’s mineral and energy resources remain relatively underexplored.
He said the country’s potential in gold, lithium, tantalum and natural gas could open additional economic opportunities as exploration and development expand, particularly amid growing global demand for minerals used in modern technologies and electric vehicles.
Tourism, he added, could also make a significant contribution to economic growth.
Ethiopian Airlines’ extensive international network and large volume of transit passengers provide an opportunity to attract more visitors to stay longer and explore the country’s tourism destinations, according to Zemedeneh.
Beyond natural resources and productive sectors, he emphasized that Ethiopia’s greatest long-term asset is its people.
Sustained investment in education, skills development and innovation will be essential to preparing the country’s youthful workforce for an increasingly technology- and artificial intelligence-driven global economy, he said.
Zemedeneh further underscored the importance of foreign direct investment, saying Ethiopia needs to continue strengthening its competitiveness as countries around the world compete for capital, expertise and technology.
Maintaining high economic growth, he said, will require continued reforms, focused implementation and effective efforts to address existing challenges.
“All data points indicate that coming together, we can sustain double digits for 10, 15, 20, 30 years—or like China, 40 years. I think it’s doable; but it needs a lot of work,” he said.
The CEO nevertheless expressed confidence that Ethiopia’s challenges can be managed and that the country’s economic potential provides a strong basis for optimism.
He cited the completion of the Grand Ethiopian Renaissance Dam and the ongoing Bishoftu International Airport project as examples of Ethiopia’s growing capacity to undertake large-scale and transformative infrastructure projects.
Developments in the capital city, he added, also demonstrate the country’s broader capacity to implement ambitious development projects, ENA reported.
Overall, Zemedeneh stressed that Ethiopia has a significant opportunity to sustain high economic growth by continuing to develop its productive sectors, invest in human capital, attract investment and make effective use of its natural resources.