ASSESSMENTS

Why France Is Bullish on Business in Ethiopia

Dec 4, 2019 | 10:00 GMT

Ethiopian Prime Minister Abiy Ahmed (R) speaks with French President Emmanuel Macron after signing agreements during a meeting on March 12, 2019, in Addis Ababa. As Ethiopia opens up its economy, French companies stand to make big gains.

(LUDOVIC MARIN/AFP via Getty Images)

Highlights

Given Ethiopia's longtime aversion to overreliance on outside powers, France's economic prowess and advanced arms industry put it in prime position to offer Addis Ababa another partner to diversify its relationships.
French companies all stand to benefit from Ethiopia's liberalization in the telecommunications, automobile and other sectors.
Regardless of who wins Ethiopia's May 2020 elections, the country's future leader will be compelled to pursue economic liberalization and reforms to strengthen the private sector as the new engine of the economy.

The Horn of Africa, with its booming economies and critical location that abuts key international shipping lanes, has long attracted outside interest -- as well as interminable conflicts. Yet as regional heavyweight Ethiopia opens its economy after decades of closed, state-centric development, new outside players are even more eager to do business there. Among that group is France, which is actively positioning its flagship companies to win big in the country in the years ahead. And luckily for Paris, Addis Ababa's long aversion to overdependence on any single outside power will boost French businesses as they seek to make inroads in a massive market of 110 million people....

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