Ethiopia will pay an average of 50 billion dollars per year if it fails to resolve its debt in the next 10 years, according to economic projections. This warning comes from Ato Dereje Degene, coordinator of economic growth and investment, in an interview on Fana Podcast. He highlighted that Ethiopia's economy is experiencing high growth.
Addis Ababa, Hidar 3, 2018 (EFM C) – Ato Dereje Degene, coordinator of economic growth and investment, stated in an interview on Fana Podcast that Ethiopia will pay an average of 50 billion dollars per year if it fails to resolve its debt in the next 10 years.
He noted that Ethiopia's economy is showing high growth. Projections indicate that the country's annual gross domestic product (GDP) will reach 1 trillion dollars in the next 10 years. The trade balance is expected to cover 50% of this amount.
Currently, expenses related to debt issues account for 10% of the foreign trade balance. Even if debt payments do not increase over the next 10 years, Ethiopia will still pay 50 billion dollars annually, he emphasized.
This amount represents wealth sufficient to finance 10 major projects like the Grand Ethiopian Renaissance Dam each year. He suggested that becoming a sea power in the coming years could prevent national wealth from flowing to the sea, thereby providing significant benefits in gaining sea access.