Addis Ababa: Prime Minister Abiy Ahmed, during a televised interview, emphasized that Ethiopia is experiencing a highly visible and tangible transformation across multiple sectors. The Prime Minister detailed ongoing bold measures by his government to stabilize the cost of living and stimulate the country’s economic growth. Highlighting extensive reforms, he noted significant advancements in various sectors alongside some persistent challenges over the past six years.
According to Ethiopian News Agency, the reforms under his leadership are driven by a shift towards more democratic governance, economic liberalization, social change, and modernization, resulting in unprecedented success stories. Prime Minister Abiy stated that the government has implemented comprehensive economic reforms aimed at addressing structural imbalances, and these reforms are yielding positive outcomes. A key achievement mentioned is the increase in export income, with projections exceeding 8 billion US Dollars by the end of the budge
t year.
Prime Minister Abiy acknowledged the country’s inflationary pressures, attributing them to long-standing structural issues, natural and man-made challenges, and global disruptions. However, he highlighted a decline in inflation from 34 percent to 13.5 percent due to persistent reforms, including macroeconomic endeavors. This, he believes, indicates economic recovery in Ethiopia. Improvements in income levels, poverty reduction, and reductions in GDP arrears further signal economic stabilization.
In addition to economic progress, Prime Minister Abiy stressed that reforms in various sectors are laying the foundation for a prosperous future. He emphasized efforts aimed at reducing debt burdens and creating a sustainable economic environment for future generations. He urged all stakeholders to remain committed and work collectively to sustain and build upon the progress achieved, calling it a shared responsibility of all citizens and institutions.
Prime Minister Abiy highlighted Ethiopia’s multi-sector
al development approach, which is delivering measurable results across the nation’s economy and broader development agenda. He elaborated that lasting prosperity requires a diversified, multi-sectoral strategy. Agriculture, industry, mining, tourism, and Information and Communications Technology (ICT) are prioritized as key pillars underpinning this strategy. He cited improvements in agricultural productivity, industrial expansion, increased mining exports, tourism growth, and enhanced utilization of digital technologies.
Focusing on the industrial sector, the Prime Minister expressed significant gains. Industrial production capacity increased from 48 percent to 65 percent, and the number of operational industrial parks grew from three to thirteen. These efforts have produced remarkable outcomes, with the industrial sector projected to grow by 13 percent in 2024/2025. He also underscored the critical importance of the service sector, calling it ‘the backbone and delivery mechanism’ of economic progress.
Pri
me Minister Abiy discussed Ethiopia’s macroeconomic reform, describing it as rooted in its unique context while leveraging global lessons. The reform was founded on self-reflection and critical assessment, with consultations involving domestic and international stakeholders. Ethiopia has drawn insights from countries that successfully navigated economic crises, adapting them to its reform journey. Ongoing negotiations with the International Monetary Fund (IMF), the World Bank, and other creditors focus on Ethiopia’s interests.
Prime Minister Abiy reiterated that Ethiopia’s macroeconomic reform is a product of its national circumstances, enhanced by international best practices, and aligned with its developmental vision.