Recently, Ethiopia debuted a Eurobond that raised $1 billion to expand power production and increase sugar refinement, among other industries. Several African states have achieved strong boosts by entering the international debt market, and Ethiopia’s success highlights its high growth rate, which has settled at around 9 percent annually.
The money generated by the Eurobond will allow Ethiopia to construct new centers for industry, which will serve to attract even more foreign investors. Ethiopia has set a goal of becoming a major hub for textiles and other industries as more companies move their manufacturing plants from China and other Asian markets experiencing rising production costs. With cheap labor and reliable power, Ethiopia has become a leading option for these investors, especially as the nation seeks to improve transport and other infrastructure.
To shift the country’s focus away from farming, the Ethiopian government has invested in the construction of a new industrial park and the expansion of an existing one. With the new Eurobond money, the country hopes to create three more manufacturing hubs in the coming decade.