ONGOING economic reforms that are also seeing Ethiopia opening up its traditionally closed sectors to private investment are helping to lift the country’s image, globally, according to a new report.
UK-based Consultancy, Brand Finance in its Global Soft Power Index 2024 ranked Ethiopia the third fastest-growing nation brand in the world.
In the ranking of the most valuable nations, Ethiopia’s brand value grew 23% – the highest growth in Africa – and the Brand Finance report said positive economic prospects had significantly contributed to the improvement.
“Ethiopia is the fastest-growing African Nation Brand this year. It was one of the fastest-growing economies in the world last year, recording a 6.1% GDP growth in 2023,” it said.
The index highlighted that investment in infrastructure and ‘value add’ sectors, including manufacturing and processing of textiles and agricultural products, have been key drivers behind the nation’s growth.
As the large landlocked East African country continues to liberalise its economy, its growth trajectory is expected to remain above continental and global rates.
“The nation is forecast to grow at a rate of 6.2% in 2024, which surpasses not only the anticipated global growth rate of 2.9% but also outpaces the expected growth rate for the African continent at 4%,” according to the index.
A breakdown of the index shows that Ethiopia’s highest strength was in its reputation, with a score of 5.1 points, followed by familiarity (4.6). Influence, people and values tied, with scores of 3.3 each.
Over the past two years, the country’s telecommunications, banking, and aviation industries have witnessed reforms, allowing foreign investor participation.
Key developments in the telecommunications industry include the entry of Kenya’s telco giant, Safaricom, through its mobile money service M-Pesa.
In February, Ethiopia’s Capital Market Authority announced it had begun licensing foreign investment banks.
Globally, Ethiopia is only behind Mexico – whose brand value grew the fastest globally – and the Western Balkans country, of Albania, which grew its value by 28%.
Another African country, Cote d’Ivoire, was fourth in the list of the five fastest-growing economies, tied with Ukraine at 20% growth rate.
Cote d’Ivoire’s brand value was driven by higher scores in its reputation (5.2) familiarity and influence (both 3.4 points).
Other African nation brands that recorded significant growth in their values were Mauritius (15%), Mozambique (10.2%), Uganda (9.7%), Senegal (7.7%), Angola (7.7%), Zambia (7.1%), and Tanzania(6.2%).
All these countries have higher scores in metrics such as reputation (perception of business and trade, international relations, education), familiarity (nation brands which people know) and influence (the degree to which a nation is seen to have influence in the respondent’s country as well as on the world stage).
Egypt, with the largest brand value on the continent, also saw its share grow by 12.1% while South Africa, with the second most valuable nation brand in Africa, saw its brand value drop by 7.7%.
Globally, Canada, Switzerland and Denmark are the top three strongest nation brands, with Canada perceived internationally as a ‘strong and stable economy’ highly rated for its living standards, Switzerland as the least corrupt country in the world and Denmark a frontrunner in sustainable development with universal health care and a strong educational system.
