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date: 30 November 2021

Abstract and Keywords

Although many African countries have shown steady economic gains in the new millennium, most are not positioned to sustain their progress. Instead, they continue to rely on traditional, low value-added commodity export markets that are unpredictable and not linked to the broader national economy. Or they rely on low-productivity, and in turn low-wage, traditional agriculture to drive employment. Any economic gains will be wiped out without a commitment to an economic transformation strategy; growth alone will not sustain development. Transformation is necessary and this means growth based on attributes that underpin an economy’s transformational change: diversified production, export competitiveness, productivity increases, technology upgrades, and human well-being. The African Center for Economic Transformation (ACET) defines transformation based on these attributes and Ethiopia has demonstrated a promising track record. How has Ethiopia put itself in a strong position for sustainable growth through transformation and what can other African countries learn from this?

Keywords: economic transformation, diversification, export competitiveness, productivity, technology, political leadership, national planning, institutional capacity, intragovernmental coordination, public–private collaboration

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