South Africa remains the continent’s largest economy at nearly $444 billion, followed by Egypt and Nigeria. At 7.1 percent annually, Ethiopia’s economy is expanding faster than any of Africa’s top seven economies. At the heart of Ethiopia’s economic strategy is the GERD, the largest hydroelectric dam in Africa and one of the biggest in the world. “It is about industrialisation, jobs and long-term economic independence.”But the project has also triggered diplomatic tensions, particularly with Egypt and Sudan, over water security along the Nile underscoring the geopolitical stakes tied to Ethiopia’s economic ambitions. The African Development Bank says Ethiopia’s economy remains anchored in services and agriculture sectors now benefiting from improved infrastructure.

Source: Daily Nation February 27, 2026 20:36 UTC