Ethiopia has been through a lot over the years but in the middle of all the challenges something big has been happening. It’s not just rebuilding itself internally it is starting to stand out as a growing force in the region. And honestly, it is time we talked about it. Whether it is energy, diplomacy, infrastructure, or technology, Ethiopia is slowly but surely turning into a key regional player in the Horn of Africa. It is not just talk there are real moves being made.
Furthermore, Ethiopia is increasingly gaining prominence on the global stage due to its economic transformation and regional integration efforts. These strides signal the country’s potential to ascend within the regional power hierarchy, despite the presence of competing power centers in the Horn of Africa. Understanding these trajectories is crucial.
While International Relations (IR) scholars debate the defining characteristics of a regional power, there is broad consensus that the emergence of regional powers and the creation of new regional orders are central to today’s geopolitical dynamics. Ethiopia has deliberately positioned itself as a regional shaper by prioritizing “a peaceful Horn” and “regional security” in its foreign policy, supporting regional institutions and integration (Nathan, 2005:362). Moreover, global power dynamics often overlook developments in the Global South, viewing them through a predominantly Western lens. However, Ethiopia’s growing capabilities support Martin Wight’s (1978) argument that regional powers can evolve into middle powers within the international system, aligning with A.F.K. Organski’s power transition theory (1989). There is another argument by Buzan and Wæver (2003) that regional powers, especially in the Global South, have significant capabilities in their own regions, yet are frequently neglected in global power calculations. However, Ethiopia’s recent admission to BRICS challenges this marginalization and indicating its growing influence in global political discourse.
Ethiopia has a longstanding history of engaging in multilateral diplomacy, from being a founding member of the UN and the African Union to participating in IGAD and BRICS. Its commitment to multilateralism reflects a strategic aim to shape global power dynamics and regional governance. Ethiopia has extensive experience in peacekeeping starting in 1951 and experience in regional coalitions starting from the Bandung Conference of 1955 that was for Asia-Africa common agenda. It has also played crucial mediation roles in regional conflicts, notably in South Sudan and Somalia. These efforts have earned Ethiopia international recognition and established its reputation as a stabilizing force.
Ethiopia’s strategic location and diplomatic engagement allow it to influence key regional challenges, such as migration, conflict resolution, and cross-border trade.
Making Moves in a Complicated Region
Regional power in Africa is complicated. There are so many players, and no clear playbook. But Ethiopia is carving its own path. It is promoting peace in the region, taking part in peacekeeping missions, mediating conflicts like in South Sudan and Somalia, and pushing for stronger regional integration.
That kind of leadership doesn’t come out of nowhere, it comes from years of positioning itself as a country that values cooperation and stability. And it is starting to pay off. Joining BRICS itself was a major step in this effort. It showed that Ethiopia is ready to join the conversation on a global scale, not just as an observer but as a participant.
Energy as a Bargaining Chip
One of Ethiopia’s most powerful tools right now is the Grand Ethiopian Renaissance Dam (GERD) and others. It is Africa’s biggest hydroelectric project with a capacity of 6,450 MW, and once fully online, it will supply massive amounts of power, enough for Ethiopia and its neighbors. This positions Ethiopia as an energy hub for the region, supplying electricity to neighboring countries and leveraging this capability for economic and diplomatic gains and influence. If your neighbors rely on you for energy, they are also more likely to cooperate with you on trade, security, and other key issues. GERD has had its controversies, but there’s no denying that it puts Ethiopia in a stronger position.
Young, Big, and Full of Potential
Ethiopia has estimated population of over 135, 472 million people of which 69% is youth population according to UNFPA report. That is a huge opportunity. A young, growing population means more workers, more innovation, and more momentum. Stefan Schirm (2005) notes that regional powers typically have large populations and robust GDPs, both of which apply to Ethiopia. These attributes solidify its role as a key actor in African regional affairs and frame its foreign policy around maintaining regional order and stability. The IMF expects Ethiopia to be one of Africa’s fastest-growing economies through 2025. And that growth is starting to shift the way Ethiopia fits into regional politics, which is more leverage, more bargaining power, and a louder voice at the table.
Investing in Roads, Rails, and Skies
The changes are not just theoretical; the infrastructure boom has implications far beyond its borders. You can actually see them on the ground. The Addis Ababa–Djibouti Railway connects Ethiopia to a key trade route. New highways are linking cities and neighboring countries. And Ethiopian Airlines is now the biggest and most successful airline in Africa not just carrying passengers but helping grow trade, tourism, and international connections. With its expanding international routes and cargo services, the International Air Transport Association (IATA) forecast indicate that a 200% growth in capacity over the next decade, quadrupling Bole International Airport’s size. Ethiopia’s aviation industry both civil and cargo has equally shown tremendous growth and expansion so far and the new project will make Ethiopia the leading global gateway for Africa in facilitating trade, mobility, and economic integration with neighbors.
It is one of the success stories that shows what long-term vision and investment can do.
From Monopoly to Momentum
For years, Ethiopia’s telecommunication sector was slow and stuck under monopoly. But since the government opened it up to competition, things have been moving fast as no modern economy can thrive without robust telecommunications. One of the progress made on the sectoral policy is the commitment to liberalize telecom by allowing the private domestic and foreign investment into the telecoms sector after decades of state control.
With companies like Safaricom entering the market, mobile access is growing quickly. 64% of the population has been already connected, and rising. The government’s ‘Digital Ethiopia 2025’ initiative is about more than faster internet, but it is about transforming how people work, learn, and do business. Furthermore, according to Ethio Telecom, it has divested a 10% stake to local investors through a listing on the newly launched Ethiopian Securities Exchange (ESX) that make 47,000 citizens to acquire an ownership stake in Ethio telecom.
The E-Commerce Boom
As more people get online, Ethiopia’s digital economy is picking up speed. Reports indicate that Ethiopian telecommunication service has undergone a large-scale transformation and modernization and policy changes. Accordingly, the launching of Digital Ethiopia 2025 is part of that initiative to help the country realise its digital potential and leverage technology to build a more prosperous society (State of digital Ethiopia in 2025). Subsequent to this, new local businesses have successfully adapted to the e-commerce models like Qefira, Sheger.net, Jumia Ethiopia, and Abyssinia Craft etc.. are making online shopping and promoting products using the e-commerce space more common even in places where it wasn’t an option just a few years ago.
And it is not just about convenience. What is exciting is how this digital shift is opening new doors especially for women. As digital access expands and platforms become more inclusive as it is articulated in the country’s growth initiatives such as the Digital Ethiopia 2025 a strategy that focus on improving infrastructure, promoting digital literacy and regulatory support for the transactions. This is creating real opportunities, especially for women and young entrepreneurs, to start businesses, create content, reach new markets, and earn income from home. Research by UNICEF suggests that even if women are online, they are less likely to have advanced digital skills. Deloitte report in 2023 also suggest the same, however, this can be improved through robust digital literacy programs and the digital poverty in female group can be reduced. That kind of change can ripple through communities and families in a big way.
A Greener, Cleaner Ethiopia
One thing I have personally found inspiring is the push for sustainability. The Green Legacy Initiative, which started in 2019, has already led to billions of trees planted across the country. Cities are getting greener with large public spaces, air is cleaner, and parks and riverside spaces are starting to transform the look and feel of urban areas.
It is not just good for the environment but it is also good for tourism, health, and national pride. It also shows that Ethiopia is serious about playing its part in tackling climate change and fulfilling international commitments like the Paris Agreement and the UN’s Sustainable Development Goals according to UN-DESA Report.
So What’s Next?
Of course, none of this is to say that Ethiopia doesn’t face serious challenges. There are political tensions, economic pressures, and tough regional relationships. But the direction is promising. Nonetheless, Ethiopia is no longer just responding to crises, it is shaping its own story through strategy, investment, and a clear sense of purpose.
We might be watching the start of something big, a new Ethiopia that is more confident, more connected, and more influential not just in the Horn of Africa, but across the continent and beyond.
By Seble Getachew
Seble Getachew G. Giorgis (Ms.) A dedicated advocate for women’s empowerment and continuous personal growth. Seble has over 18 years of experience working in the UN Offices, Field Services and similar International organizations in Africa, South-East Asia and the Gulf. With her experience working in a post-conflict environment, she has deep understanding of protection of civilians including policy research and administration. Seble has an abundance of multicultural expertise and a passion for diversity. She did her post graduate studies in Global Studies with a emphasis on Peace and Security in Africa from the Leipzig University and International Relations and Development from ISS, the Hague along with Bachelor’s degree in Political Science and International Relations from Addis Ababa University. Seble has been serving the IFA since August 2024 as volunteer in the capacity of Partnership Officer and Researcher in the Multilateral Affairs Research Directorate.
