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MARKET UPDATE – AFRICA | <strong>February</strong> <strong>2015</strong><br />
Between<br />
January 12th<br />
and 17th, <strong>2015</strong>,<br />
the Ethiopian<br />
government<br />
engaged its<br />
Japanese<br />
counterpart<br />
in Industrial<br />
Development<br />
Policy dialogue<br />
aimed at<br />
improving<br />
Ethiopia’s<br />
competitiveness.<br />
Regionally,<br />
Ethiopia enjoys<br />
favourable cost<br />
of energy and<br />
labour costs that<br />
are attractive to<br />
manufacturers.<br />
Fiscal Deficit as % of GDP Estimates<br />
Source: IMF 2014 Data, StratLink <strong>Africa</strong><br />
Strengthening the Birr<br />
Deteriorated balance of payments kept the<br />
Birr on a depreciation path through 2014.<br />
The Birr took a beating from a downtrend<br />
in global coffee prices in the latter half of<br />
2014. Strong performance by the Eurobond<br />
could inject strength into the local unit in<br />
the near term driven by increased supply of<br />
the greenback domestically.<br />
Birr vs USD Exchange<br />
Source: Bloomberg, StratLink <strong>Africa</strong><br />
24 | StratLink <strong>Africa</strong> Ltd.<br />
www.stratlinkglobal.com
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