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Breaking barriers: Ethiopia and Angola open up their economies
For decades, Ethiopia and Angola operated as relatively closed economies, with strict government control over key industries and limited foreign investment. Ethiopian Airlines was one of the very few globally competitive and open sectors in Ethiopia. However, both nations have embraced economic liberalisation and reforms in recent years. Ethiopia has begun privatising state assets, including opening the telecom sector, which led to the entry of Safaricom. Also, foreign banks are now being allowed to enter the Ethiopian market. A move that could enhance financial inclusion, improve access to credit, and modernise the banking system.
Angola’s privatization push
Angola, one of Africa’s leading oil producers, has historically depended on petroleum exports, leaving its economy exposed to global oil price volatility. To mitigate this reliance, the government has implemented major economic reforms. It has been privatizing stakes in key sectors such as energy, banking, and telecommunications to improve efficiency and attract foreign investment. As this country open up its economy, it would bolster intra-African trade, particularly through the African Continental Free Trade Area (AfCFTA), fostering deeper economic integration across the continent.
After the conflict, what next? Growth or more crisis
The Democratic Republic of Congo (DRC) and Rwanda are in military conflict. So far about 3,000 people have been killed and approximately 63,000 displaced. This could reshape regional stability, public health, and international relations in Africa. Since economies often experience rapid growth post-conflict, the question remains: will the aftermath bring prosperity or further turmoil? The DRC is facing a severe health crisis with the emergence of a highly contagious mutant strain of mpox (Clade 1a). Efforts to contain the outbreak have been hindered by funding cuts from the U.S. Agency for International Development (USAID). Inadequate containment in the DRC threatens cross-border health security, risking wider outbreaks across Africa.
Geopolitical rift sparks diplomatic fallout
On the diplomatic front, Germany has halted new development aid to Rwanda on allegations of its support for the M23 rebels in eastern Congo. The aid suspension signals a broader geopolitical shift, as foreign governments reconsider their engagement with Central Africa’s conflicts. The tensions between Rwanda and the DRC risk destabilising the Great Lakes region, threatening trade, security, and regional integration efforts.
In this edition of the FDC Afriscope, we analyze burning macroeconomic and political issues in Africa, offering insights and strategies for policymakers.
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