Appearing at the 42nd regular meeting of the House of People’s Representatives held yesterday, on July 3, 2025, Prime Minister Abiy Ahmed (PhD) presented his government’s performance report for the concluding Ethiopian fiscal year and outlined key directions and priorities for the upcoming budget year.
In addition, the Prime Minister responded to questions from members of parliament on a range of national issues.
Among the many questions raised from parliamentarians to which the Premier gave responses were issues related to agriculture, micro economic reform, peace and security, tourism, corruption, job creation, health and education, corridor development, housing challenges, the Abbay Hydroelectric Dam, road construction, the cost of living and inflation, and the performance of the service sector.
While addressing the issue of housing challenges, Prime Minister Abiy emphasized his government’s unwavering dedication to enhancing education, addressing housing shortages, and promoting tourism. He stated that solving the problem requires substantial effort. In response, the government is giving the matter due attention and undertaking various initiatives in an unprecedented manner through government efforts, private sector involvement, and public-private partnerships.
Mentioning that currently just about 265,000 housing units are under construction, the Premier emphasized that the government is working closely with private investors to meet the housing needs of the population. This initiative forms part of a broader strategy to address the housing shortage prevalent in Ethiopia.
The Prime Minister also highlighted the pivotal role of public-private partnerships in housing development. He noted that the government is not solely focused on constructing homes but is also collaborating with private investors to meet the burgeoning demand for housing. Over the past five years, nearly one million houses have been completed, demonstrating a robust commitment to enhancing living conditions.
In addition to constructing new houses, the government also plans to renovate at least 100,000 homes during this rainy season as part of the summer voluntary program. Housing projects are designed to meet rigorous standards, ensuring comfort and quality for residents, Abiy reaffirmed.
With regard to school enrollment, Prime Minister Abiy stated the enrollment of 4.2 million children in pre-primary education for the current academic year. This impressive figure includes 29,000 children with special needs, he added, underscoring the government’s commitment to inclusive education.
To ensure the delivery of quality education, the Prime Minister emphasized the critical importance of teachers’ training. He revealed that 68,000 teachers underwent training in the previous fiscal year, with plans for an additional 80,000 teachers to receive training in the current year. This initiative aims to refine teaching methodologies and deepen subject knowledge, thereby enhancing educational outcomes.
In parallel to training, the Ministry of Education is undertaking significant steps to strengthen educational infrastructure. The construction of 30 model secondary schools and specialized boarding facilities is currently underway. Furthermore, the distribution of 46 million textbooks to secondary school students guaranteed that all learners have access to essential educational resources, he added.
Another crucial area addressed by Prime Minister Abiy was tourism. He reported that nearly 1.3 million foreign tourists visited Ethiopia this year, a clear testament to the country’s burgeoning appeal as a travel destination.
The Prime Minister also noted that the successful hosting of over 150 international conferences this year has significantly bolstered Ethiopia’s economic capacity. Key factors contributing to this growth include immigration reform, improved airline operations, and the expansion of hotels and tourist destinations.
Notably, around 1.5 million visitors explored key sites such as Unity Park, Friendship Square, the Science Museum, and the National Palace, generating over half a billion birr in revenue. In recent years, 13.5 million people have visited these attractions, reflecting the increasing interest in Ethiopia’s rich cultural and historical heritage.
Peace and security issue was the other matter that Prime Minister Abiy clarified for PMS.
The Premier said that the root of Ethiopia’s peace and security challenges lies in misguided political thinking, particularly the spread of ignorance-driven politics. According to Prime Minister Abiy, such misguided political thinking fuels division, incites conflict, and promotes a culture of entitlement detached from genuine effort or contribution.
True wisdom and national progress must be pursued through hard work, education, and productivity. Power struggles driven by violence, force, and rumors threaten peace and democracy. Thus, he warned to work for peace; stating that violence cannot bring lasting victory; but only leads to destruction.
He further explained that poverty, unemployment, and extreme ethnic nationalism continue to fuel unrest. When this extremism and backwardness are left unaddressed, they pose serious threats to national unity.
In a landmark announcement, Prime Minister Abiy revealed that Ethiopia will soon commence marketing its own gas products, marking a historic milestone in the country’s economic transformation. This significant development signifies Ethiopia’s evolution from merely possessing resources to actively participating in the global energy market.
Prime Minister Abiy also recounted to MPS how gas production efforts had languished for years due to a lack of leadership and regulatory clarity. “Until recently, companies involved in the gas sector sought only to obtain licenses and profit without actual production,” he remarked. “We have now eliminated such practices and are poised to launch our first gas production this September, with marketing to commence shortly thereafter.”
This breakthrough is part of a comprehensive national economic reform strategy aimed at diversifying Ethiopia’s economy, enhancing industrial capacity, and fostering energy independence.
In discussing the mineral sector, the Prime Minister highlighted Ethiopia’s vast potential and recent successes. Last fiscal year, the country exported 37 tons of gold, a dramatic increase from just four tons the previous year, generating 3.5 USD billion in revenue. “After years of neglect, we are now unlocking the full potential of our mineral resources, contributing substantially to national development,” Abiy stated.
Furthermore, the government is advancing its fertilizer industry through a strategic partnership with Nigeria’s Dangote Group to construct a major fertilizer factory. Expected to be commissioned within 40 months, this factory will enhance agricultural productivity and reduce reliance on imports, he said.
Prime Minister Abiy also presented performance reports for the agriculture, industry, mining, and service sectors. According to the report, Ethiopia is making notable progress through ambitious reforms in housing, tourism and key economic sectors, reflecting strong leadership, resilience, and a clear vision for sustainable national development. If the country maintains its current momentum and successfully implements its development plans in the coming year, Ethiopia will be well-positioned for transformative growth and long-term prosperity.
BY MENGISTEAB TESHOME
THE ETHIOPIAN HERALD FRIDAY 4 JULY 2025
