Ethiopia is rapidly positioning itself as an emerging economic and geopolitical power in Africa- a transformation that is garnering growing global recognition. In its latest communiqué, the Executive Committee of the ruling Prosperity Party (PP) declared a range of significant success stories, presenting a compelling narrative of national progress that portrait Ethiopia’s ascent on economic, diplomatic, and strategic fronts.
The Executive Committee meeting of the PP held on April, highlighted Ethiopia’s economic progress in the last nine months and Ethiopia’s renewed economic vigor under the leadership of Prime Minister Abiy Ahmed. The report portrayed a picture of a national economic renaissance across key sectors.
Central to this optimism lays Ethiopia’s bold pursuit of maritime access. In a region long marred by tension and territorial stalemate, Ethiopia’s diplomatic approach has turned the tide. Recent negotiations with Somalia and other coastal neighbors signal Ethiopia’s strategic shift from confrontation to cooperation — a move that has captured global attention. The growing international support for Ethiopia’s right to secure port access reflects both the maturity and clarity of its foreign policy, which is firmly anchored in peaceful engagement and a long-term vision for regional integration.
Linking this diplomatic breakthrough with tangible economic gains, the Party’s report presented a striking set of figures. Real GDP growth is projected at 8.4 percent this fiscal year, fueled by remarkable expansions in critical sectors: industry at 12.8 percent, construction at 12.3 percent, agriculture at 6.1 percent and services at 7.1 percent. These figures are more than mere statistics — they signal a broader trend of economic diversification, modernization and growing stability within Ethiopia.
Government revenue, compared to the previous year, surged by an impressive 134 percent over the last nine months, while the external debt-to-GDP ratio declined to a manageable 13.7 percent — clear indicators of improving fiscal discipline and economic sustainability. Perhaps most impressive is the 204 percent increase in foreign exchange reserves, now sufficient to cover more than three months of imports. This financial buffer provides Ethiopia with strategic breathing room in an unpredictable global economic environment.
In terms of trade, Ethiopia is increasingly becoming a powerhouse. With merchandise exports reaching 5 billion USD in just nine months — a 150 percent jump — Ethiopia’s agricultural sector is emerging as a continental leader. Commodities like wheat, rice, coffee, tea leaves, and fruits are fueling this growth, placing Ethiopia at the forefront of Africa’s food security agenda.
The domestic financial system, too, is experiencing a healthy transformation. Bank deposits have exceeded 3 trillion Birr, while commercial bank lending is up 61.9 percent, with the majority channeled to the private sector. This credit boom supports entrepreneurial growth, job creation, and the development of a resilient middle class.
Importantly, these gains are not being celebrated in isolation from the public’s needs. Over 163 billion Birr has been allocated to support citizens through fertilizer subsidies, safety net programs, and fuel assistance — a move that balances economic growth with social equity.
The PP’s bold vision — for Ethiopia to become Africa’s model for prosperity by 2031 and a global beacon of sustainable development by 2040 — is no longer a distant dream. With port access, sound economic management, and continued reform, Ethiopia is not only charting a path for its own future but also setting a precedent for transformative development across the continent.
As global leaders begin to take notice, it is time for the world to recognize Ethiopia not only as a historical cradle of civilization but as a modern engine driving Africa’s resurgence.
THE ETHIOPIAN HERALD WEDNESDAY 30 APRIL 2025
