Ethiopia is emerging as a key indicator of future investment trends across Sub-Saharan Africa, with analysts saying its economic trajectory is shaping wider investor confidence.
Home to more than 135 million people, Ethiopia has long attracted the attention of major powers, including the United States, the former Soviet Union and China.
China backed Ethiopia’s former ruling coalition as its most ambitious political and economic experiment outside Asia, promoting a state-led development model.
That model unravelled after political divisions, the rise of Prime Minister Abiy Ahmed and the Tigray war ended the coalition’s rule.
Analysts say the collapse dented confidence in China’s development model, while Afrobarometer surveys show African public support for Beijing has declined since 2016.
They say Ethiopia is again signalling a broader shift, with investors increasingly reassessing opportunities across Africa despite past political instability.