http://www.skyscrapercit...forumdisplay.php?f=2335
Peruse through the discussions on the mega projects in the various EA countries and tell us which EA country you think will be more developed 10-20 years down the line? To me it seems Ethiopia is leading the pack, Kenya a distant second

They are building their electric line, at some point in the future, we might as well. The US doesn't have extensive eletric rail network, but they remain efficient.

With coal, we can also generate cheap power.

Thing is, it's too early to throw in the towel. Ethiopia has some political upheavals to surmount. At the moment, things are looking up for them.

Kenya will be unbwogable in East Africa both in real Gdp and per capita income...

The Ethiopians will be somewhere in 2nd place!

GDP is a measure of value of goods exported from a country in a given year, not a measure of wealth. So it is possible for a seemingly ‘’poorer’’ country like Sudan and Ethiopia to have higher GDP than Kenya. Apparently this is actually the case! And GDP is the internationally accepted standard of measuring and comparing wealth creation.
Kenya of today and yesteryears may be having better developed cities and infrastructure than Ethiopia but am looking at the future 10-20 years. Ethiopia is coming up with policies that make its economy more competitive than Kenya i.e.
• Their electricity is subsidised by government so rates are among the cheapest anywhere in the world
• All land in Ethiopia is owned by the state. They are able to lease land to investors at minimal cost
• Their population is twice that of Kenya so the market is larger than Kenya.
On the other hand, cost of electricity and land in Kenya is among the highest anywhere in the world.
Why is it so difficult to see that Ethiopia is doing something right? Kenya may be a better democracy than Ethiopia, but again, Kenya is also better democracy than China. Irrespective of this, US manufacturing companies have opened satellite plants in China not Kenya. Investors think in terms of profits and not sentimental reasons, that’s why someone will only invest where they can reap maximum profits.
I am actually happy for Ethiopian people that they are able to come up with policies that will assure the development of their people. If they continue with these policies, 20 years down the line we will be comparing Kenya and Ethiopia of then and yesteryears and wondering where the rain started beating us.

Which problems do subsidies mask? The Ethiopian government foots most of the cost for power production and distribution so the end – user pays almost nothing. This leads to low cost of production and manufacturers are able to produce more goods, sell more goods, earn the country more in tax and this mitigates the cost of having paid for the subsidy in the first place. It is a case of playing mind games, and investor is only looking at the profit.
Please give better reason for your claim.