Regional integration will be central to Ethiopia’s next phase of economic expansion, according to American economist Jeffrey Sachs, who said coordinated infrastructure and energy development across Africa will determine the pace of sustained growth.

Speaking to Ethiopian News Agency on the sidelines of the African Union Summit, Sachs said Ethiopia’s development strategy increasingly aligns with continental efforts to deepen economic cooperation under the African Union framework.

“Big hydro projects like GERD are part of a broader regional electrification effort,” he said, referring to the Grand Ethiopian Renaissance Dam. He added that cross-border power connectivity and integrated infrastructure systems would strengthen value chains and improve productivity across the region.

Sachs said Ethiopia’s investments in transport corridors, energy generation, digital networks and agriculture are positioning the country to benefit from expanded regional markets. He noted that long-term planning, spanning 10 to 20 years, has guided much of the country’s reform agenda.

He said that Ethiopia is operating with a long-term vision, arguing that structural transformation and coordinated policy reform are necessary to secure durable economic gains.

The Columbia University professor said the alignment between infrastructure expansion and macroeconomic reforms is creating more favourable conditions for private-sector activity and investment inflows. Improved electrification, digital access and transport links in Addis Ababa and regional states are beginning to reshape commercial activity, he added.

“Ethiopia’s renewable energy resources, including hydro, solar, wind and geothermal, are a strategic asset for both national development and regional supply,” Sachs said. “Expanded power generation capacity will support rural electrification and agricultural productivity.”

He said that access to electricity enables farmers to enhance crop production, improve transport and ultimately increase profitability, adding that electrification is contributing to income gains in farming communities.

While pointing to Ethiopia’s agricultural potential, Sachs said productivity growth would also depend on education and skills development for farmers.