AU Commends Ethiopia's Economic Development Efforts as a Potential Model

Addis Ababa, February 19, 2025 (ENA) – The African Union (AU) Commission for Economic Development has commended Ethiopia’s economic development efforts as a potential model for other African nations to follow.

AU Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, Albert M. Muchanga announced the creation of a comprehensive continental document aimed at promoting sustainable development and economic prosperity across Africa.

The initiative, according to Commissioner Muchanga, is designed to foster a unified approach to shaping Africa’s economic future.

During the inauguration of the UN-SDSN Africa office at Addis Ababa University, the commissioner addressed Africa’s socioeconomic challenges and the opportunities available for growth.

Muchanga praised Ethiopia’s substantial macroeconomic reforms, noting that they reflect the ongoing collective efforts across the continent.

He also commended Ethiopia’s Green Legacy Initiative, recognizing its success and its potential to serve as a model for other African countries.

The Green Legacy Initiative focuses on sustainable practices and conservation, particularly reducing carbon emissions and promoting electric vehicles.

Muchanga also emphasized that these efforts present an effective approach for tackling climate change and fostering environmental stewardship in other African nations.

Looking ahead, the commissioner projected significant growth in GDP per capita 5, 8, and 6 percent between 2023-2033,  2034-2053, and 2054-2063, respectively, which could substantially reduce poverty across the continent.

In addition, Commissioner Muchanga stressed the critical importance of economic integration in driving development. He pointed to streamlined trade, the removal of cross-border barriers, and unified investment frameworks as essential components of this process.

While all 54 African nations, including Ethiopia, have embraced the African free trade zone, the commissioner acknowledged that inadequate transport infrastructure remains a major challenge in facilitating trade.

He further emphasized the need for regional economic communities to serve as the foundation for continental integration, gradually aligning policies, regulations, and infrastructure across the region.

The commissioner urged private sector operators to prepare for increased trade and called on academic and governmental institutions to support the integration process to fully capitalize on the opportunities it offers.