During the House of People’s Representatives (HPR) sixth round, 4th year 42nd regular session of the house, Prime Minister Abiy Ahmed (PhD) responds to the questions of the members of the HPR. During the session PM Abiy touched the landmark achievements that Ethiopia has secured in political, social, economy, diplomacy and other fields during the 2024/25 budget year. Here are among the major points he touched during his brief.
– Inviting downstream countries to attend GERD inauguration
The Grand Ethiopian Renaissance Dam (GERD), the largest hydroelectric power plant in Africa, is now completed. Ethiopia is undertaking preparations to officially inaugurate GERD at the end of the rainy season, in September.
In front of the Ethiopian parliament, I officially invite to the governments and peoples of Egypt, Sudan, and all Nile Basin nations to attend the inauguration of GERD. GERD is not a threat for the downstream countries, but a shared opportunity, a symbol of regional cooperation and mutual development.
Ethiopia remains committed to pursuing its development in a manner that does not harm the interests of its Egyptian and Sudanese brothers and sisters.
-23 million Ethiopians lifted-out of Safety Net Program
Thanks to the agricultural developments following the measures taken to improve the sector’s productivity to ensure food security, Ethiopia has lifted over 23 million people out of Productive Safety Net Program (PSNP).
Currently around four million people are still under the Safety Net program and Ethiopia’s effort is to fully lift these beneficiaries from the program by ensuring food security. With the current momentum, the government’s commitment and the available arable land, this national goal will be achieved.
-Producing 1.5 billion quintals of agricultural products
For the first time in history, Ethiopia has produced 1.5 billion quintals of agricultural products in this fiscal year. This year’s agricultural productivity shows a 24.5 percent increase compared from the previous year. Agriculture is the backbone of Ethiopian economy, major source of foreign currency earning and the major source of employment.
Ethiopia has cultivated 31.8 million hectares of land this year and unlike the previous years, irrigation is playing a pivotal role in expanding the cultivation. Six new irrigation dams, expected to cultivate 84,000 hectares, will be commissioned in the next two months, alongside over 100 planned irrigation projects nationwide.
– On foreign revenue
During this budget year, Ethiopia has secured a record 32 billion USD from foreign revenue sources. This shows an eight billion USD increase compared to the previous year’s 24 billion USD.
This year’s export earnings surpassed from a projected 5.1 billion USD to 8.2 billion USD. Remittance inflows exceeded 7 billion USD, while Foreign Direct Investment reached 4 billion USD. Ethiopia has earned over three billion USD earnings from exporting gold, which shows a surprising increase. The service sector also generated 8.3 billion USD during this fiscal year.
– On Ethiopia’s maritime aspirations
To ensure Ethiopia’s sovereignty, it is crucial to secure sea access. Ethiopia’s sovereignty requires sea access and Ethiopia’s interest is to own access to sea through dialogue and diplomatic way with its neighbors.
Dialogue is the cornerstone of regional stability and Ethiopia’s national viability. Ethiopia’s stability directly affects neighboring countries, and any harm to Ethiopia would have regional consequences. Ethiopia is a great nation, not landlocked by nature but one with the potential to access the sea.
– On relations with Eritrea
Ethiopia’s interest is strengthening peaceful relations and focus on mutual development with all its neighbors. Ethiopia has never experience any antagonism or conflict with either of its neighbors during the past seven years. Ethiopia is committed to keeping this peaceful relation.
Eritrea is a sovereign country. Ethiopia does not seek to annex it, nor does it wish for Eritrea to become part of Ethiopia by force. We respect Eritrea’s independence.
Ethiopia to begin gas production for market
Ethiopia will begin marketing its gas production for the first time in the upcoming September.
Agreements have been signed to establish gas production plants under the current administration.
He said earlier challenges, such as costly permit requirements, has now been addressed to encourage private sector participation.
Before the Parliament reconvenes from recess, the government expects Ethiopia’s first commercial gas output to reach the market by the coming September.
On launching local fertilizer factory
Fertilizer is a key driver of agricultural productivity and to succeed Ethiopia’s current agricultural development, it needs fertilizer. So far, Ethiopia’s fertilizer demand depends on importing spending billions of dollars.
Without using fertilizer, our agricultural output will decline and the price of fertilizer is mounting from year to year. Considering the sector’s development, Ethiopia will begin the construction of a major fertilizer factory soon.
Nigerian businessman Aliko Dangote will establish the fertilizer factory in Ethiopia and the factory is expected to complete within 40 months.
BY DARGIE KAHSAY
THE ETHIOPIAN HERALD SATURDAY 5 JULY 2025
