ADDIS ABABA – Ethiopia is rapidly positioning itself as an emerging economic and geopolitical force in Africa, according to a communiqué issued by the ruling Prosperity Party following its Executive Committee meeting held April 24–25.
The party announced significant strides in securing access to a sea outlet, a move it describes as pivotal for expanding Ethiopia’s regional trade influence and bolstering its long-term development goals.
It highlighted the country’s growing diplomatic success, noting that Ethiopia’s stance on port access is gaining wider global understanding and support, following the peaceful resolution of disputes through diplomacy — including recent negotiations with Somalia.
Linking its port ambition with economic momentum, the Prosperity Party revealed robust macroeconomic data that signal Ethiopia’s strengthening trajectory. Real GDP growth is projected at 8.4 percent for the current fiscal year, driven by notable expansions in industry (12.8 percent), construction (12.3 percent), agriculture (6.1 percent), and services (7.1 percent).
Government revenue over the past nine months surged by 134 percent compared to the previous year, while the external debt-to-GDP ratio declined to 13.7 percent — a sign of improving fiscal health. Ethiopia’s foreign exchange reserves have also soared by 204 percent year-on-year, now covering more than three months of imports.
On the trade front, merchandise exports hit 5 billion USD in just nine months, a 150 percent increase, with strong performances across six key commodities — including wheat, rice, coffee, tea leaves, and fruits — cementing Ethiopia’s leadership in African agricultural exports.
The domestic financial sector also showed impressive growth. Bank deposits surpassed 3 trillion Birr, and commercial bank lending raised by 61.9 percent, with 76.6 percent of loans following to the private sector — a boost to entrepreneurship and industrial expansion.
Digital transformation efforts under the Digital Ethiopia 2030 strategy are advancing steadily, with 50.2 million internet users, 86.6 million mobile phone users, and 12.51 trillion Birr worth of digital transactions recorded over the last nine months.
The government is also emphasizing inclusive growth, with over 163 billion Birr allocated to support citizens through fertilizer subsidies, safety nets, and fuel assistance.
The Prosperity Party underscored that these achievements mark critical steps toward realizing Ethiopia’s broader vision: becoming Africa’s model for prosperity by 2031 and a global exemplar of sustainable development by 2040 — with maritime access and ongoing economic reforms at the heart of this ambition.
BY MESERET BEHAILU
THE ETHIOPIAN HERALD SUNDAY EDITION 27 APRIL 2025
