UN: Ethiopia's Economy Booming After Market Reforms

Ethiopia is experiencing an economic surge that's catching international attention, with the United Nations Global Compact celebrating the country's transformation into a business-friendly powerhouse.

Sando Ojambo, CEO and Executive Director of the UN Global Compact, praised Ethiopia's recent market reforms during a February 2026 visit to Addis Ababa. She pointed to the liberalization of banking and telecommunications as game-changing moves that unleashed private sector energy across the country.

"The economy seems to be booming," Ojambo said after observing the capital's visible growth. From new real estate developments to thriving restaurants and expanding businesses, Addis Ababa is transforming before visitors' eyes.

The economic acceleration isn't just happening in boardrooms. Small and medium enterprises led by young entrepreneurs and women are driving much of the growth, creating a foundation for sustainable development that reaches ordinary Ethiopians.

Ojambo emphasized how creating the right conditions matters more than massive government intervention. By removing barriers and opening sectors previously closed to competition, Ethiopia allowed its private sector to flourish naturally.

The CEO noted that Ethiopia isn't alone in this African success story. Many of the world's fastest-growing economies are now on the continent, powered by vibrant private sectors that are finally getting room to operate.

The Ripple Effect

Ethiopia's transformation challenges outdated narratives about African economies. For too long, the continent has been viewed through a lens of risk and dependency, scaring away potential investors and limiting growth.

Ojambo called out this "risk perception" as outdated, noting that actual statistics tell a completely different story. The key is mobilizing domestic capital and encouraging Africans to invest in their own continent's future.

She highlighted major opportunities in energy, infrastructure, and digital jobs, sectors where Africa's young population becomes a tremendous advantage rather than a challenge. Patient capital and local investment can de-risk these opportunities and spark sustainable growth.

The transformation happening in Ethiopia demonstrates what becomes possible when countries move away from dependency models and create environments where their own citizens can build businesses, create jobs, and drive prosperity from within.

Africa's political and business leaders are increasingly embracing this self-investment approach, signaling a shift toward homegrown economic power that could reshape the continent's future for generations to come.