Addis Ababa: In an address to the 36th regular session of the House of People’s Representatives today, Prime Minister Abiy Ahmed unveiled Ethiopia’s extraordinary economic achievements, painting a picture of resilience and strategic growth amidst a turbulent global landscape.
“Our world has been mired in a series of man-made and natural disasters,” the Prime Minister began, acknowledging the challenges faced not only by Ethiopia but by the global community.
Despite these obstacles, including pandemics, conflicts, and regional instabilities, Ethiopia has managed to chart a course of impressive economic progress, he said.
In terms of debt reduction, one of the most striking achievements highlighted by Prime Minister Abiy is the significant reduction in Ethiopia’s external debt.
“Today, we have managed to reduce our country’s external debt to 17 percent of GDP,” he announced. This figure is particularly impressive when compared to the Sub-Saharan African average of 60 percent, he said.
The Prime Minister al
so emphasized the government’s commitment to further reducing this debt, stating, “In the coming years, through continued efforts, we must bring this below 10 percent.”
This debt reduction strategy has been coupled with a strict no-commercial-loan policy. “For the past six years, we have not borrowed a single cent in commercial loans,” Prime Minister Abiy declared, underscoring the government’s commitment to fiscal discipline.
Regarding revenue collection and budget management, he elaborated that the government’s financial management has shown remarkable improvement. Prime Minister Abiy reported that out of a targeted 529 billion Birr in revenue for the year, 466 billion Birr has been collected in just 11 months, representing a 96 percent achievement rate. This success is particularly noteworthy given the ambitious nature of the target.
Furthermore, the budget deficit has been significantly reduced from 4 percent to 2.5 percent, a testament to improved fiscal management. “This is a major achievement,” the
Prime Minister noted, “but we must consider how to address even this 2.5 percent deficit.”
In terms of export growth and import substitution, he said that despite regional challenges, particularly in the Red Sea area, Ethiopia’s exports have shown impressive growth.
“This year, we have managed to earn over 10 billion USD from exports of goods and services,” Prime Minister Abiy reported. He highlighted significant improvements in oilseeds, pulses, gold, coffee, and flower exports.
The Prime Minister also emphasized the country’s successful import substitution efforts. “We have substituted over USD 2 billion USD worth of imports with domestic production,” he stated, wheat is one of the substitute commodity.
Regarding Foreign Direct Investment and Remittances, PM Abiy said that Ethiopia continues to be a top destination for Foreign Direct Investment (FDI) in East Africa, attracting over three billion USD.
Additionally, remittances have exceeded 6.5 billion USD, showing improvement from the previous year, al
though the Prime Minister acknowledged that this figure is still low compared to other African countries.
“Considering the conflicts, reduced aid, lack of loans, and challenges in the Red Sea, we believe we have achieved successful results this year.” Prime Minister Abiy said. These achievements, he emphasized, provide a strong foundation for future economic growth and development across all sectors of the Ethiopian economy.
As Ethiopia continues to navigate global uncertainties, its economic resilience and strategic approach to growth stand as a testament to effective policy implementation and visionary leadership, he elaborated.
Source: Ethiopian News Agency