Remarks
By
H.E. Taye Atske- Selassie,
President of the Federal Democratic Republic of Ethiopia
At
The Eighth Africa Business Forum (ABF 2025)
February 17, 2025
Addis Ababa
Your Excellency President Duma Gideon Boko, President of the Republic of Botswana,
Your Excellency President John Dramani Mahama, President of the Republic of Ghana,
Your Excellency Alexandre Barro Chambrier, Deputy Prime Minister of Gabon,
Your Excellency Ambassador Salma Malika Hadidi, Deputy Chairperson of the African Union Commission,
Your Excellency Mr. Claver Gatete, Executive Secretary of the Economic Commission for Africa and UN Under-Secretary General,
Excellencies Minsters,
Excellencies, Representatives of Regional and International Organizations,
Distinguished guests, friends of Africa,
It is my distinct pleasure to address you today on a subject that resonates deeply with the aspirations of our continent.
The competition for control and influence within global value chains has indeed become a significant aspect of strategic interests in recent years; leveraging on national security as well as geopolitical influence. Consequently, an enhanced regional value chain will be a critical pathway that will empower Africa not only to participate meaningfully in the global economy but also to actively shape its future.
Allow me to seize this opportunity to extend my sincere appreciation to the Economic Commission for Africa for convening and promoting this timely and crucial agenda.
Excellencies,
The cornerstone of a successful value chain is manufacturing. However, manufacturing requires a well-nourished population. That is precisely why food sovereignty should be primarily placed as a foundation of regional value chain for Africa. Africa’s potential is immense. Let me illustrate with two key resources: meat and wheat. Ethiopia, with the largest livestock resources, alongside countries like Botswana, enjoys a significant comparative advantage, positioning us to best address beef market demands in Africa and also in global markets. Hence, we are drawing valuable lessons from Botswana's successful beef export model through expert consultations driving improvements in the field.
In the wheat sector, as part of fulfilling our commitment to enhance resilience on climate variability, we partnered with the African Development Bank to produce an improved climate resilient wheat variety seed. In a very short period, we have transitioned from a wheat importer to a self-sufficient producer.
Secondly, expanding Africa's manufacturing capacity and fostering an attractive environment for Foreign Direct Investment are imperative. Ethiopia's experience in the textile industry offers a compelling illustration. Over the past two decades, we have established two dozen industrial parks, implemented attractive investment schemes, and through our economic reforms, introduced enabling regulatory frameworks. These efforts have yielded significant value addition and backward participation. Furthermore, we are now scaling up through our ongoing transition to advanced Special Economic Zones.
However, a crucial lesson has emerged: over-reliance on external incentives has hampered our textile sector. Africa must exercise caution in its dependence on incentives often linked to others’ strategic interests. To ensure a sustainable industrialization, we must prioritize self-incentivization and cultivate robust intra-African collaboration.
These, Your Excellencies, demands a couple of key enablers. The first enabler is energy – Reliable and affordable energy is the lifeblood of thriving regional value chains, powering industries, facilitating trade, and driving economic growth. Ethiopia is strategically harnessing its energy resources not only to power our industries but also to contribute to regional energy security by facilitating the supply of electricity through East African Power Pool. The Grand Ethiopian Renaissance Dam (GERD) and the Koisha Hydro power Dam stand as symbols of our commitment to harnessing Africa's resources for sustainable energy. The other key enabler is infrastructural connectivity. Projects such as the LAPSSET and the recently inked agreement to connect Ethiopia and South Sudan demonstrates our dedication to regional connectivity. Consider the example of Ethiopian farmers producing vast quantities of high-quality avocados. To capitalize on this, we are not only utilizing Addis-Djibouti cross-border electrified railway, but also building top-tier facilities of refer-containers and cold storage facilities. These are significant investments, which demand a mobilization of huge finance. Another important enabler is, Free Trade, we are fortunate to have powerful tools at our disposal, the African Continental Free Trade Area. I firmly believe that the true promise of the AfCFTA will be realized when it actively fosters the development of regional value chains specializing in the production of higher value-added goods and services.
Excellencies,
To fully realize these milestones and address gaps, I wish to emphasize the following four immediate priorities:
First, while infrastructure is undeniably essential, in the face of increasing climate vulnerability, resilient infrastructure is imperative. We must build infrastructure capable of withstanding the impacts of climate change – and meanwhile mitigate the climate change to save hard won gains in the infrastructure sector.
Second, investing in our human capital is paramount. Education, skills development, and fostering a culture of innovation are essential for empowering our people to drive the manufacturing sector and expand regional value chains.
Third, we must fully embrace the digital revolution. Technology offers transformative opportunities for enhancing regional value chains. For instance, Blockchain has the potential to create a sustainable supply chain system; the tracking of goods such as agricultural produce or pharmaceuticals and vaccines helps to prove the origin, authenticity and quality of these perishable goods, thus reassuring buyers and helping to make the value chains more sustainable. But we must determine the right digital transformation framework and strategy best tailored to our realities.
Fourth, to fill these critical gaps, Fourth, addressing the resource mobilization and financing gap is critical. We must confront the significant resource mobilization and financing gap. I call upon multilateral development banks, investors, and venture capitalists to partner with us in supporting initiatives that unlock the potential of regional value chains in Africa.
Finally, I conclude with the insightful words of the late Professor and Executive Director of UNECA, Adebayo Adedeji, who so eloquently stated “"Africa must stop being a museum of poverty and underdevelopment. We must take our destiny into our own hands and forge a new path of self-reliance and sustainable development."
Wish you a successful deliberation
and
I thank you!