The Ethiopian government is determined to achieve a remarkable 7.9% economic growth in the current fiscal year. The government has been diligently implementing its plans as scheduled, ensuring progress towards the target of 7.9% economic growth, so said President Sahlework Zewde.
The President made the above remark when addressing the opening ceremony of the 6th year, third tenure of the Joint Session of House of Peoples Representatives (HPR) and House of Federation (HoF) this Monday.
The President further emphasized that the nation’s economy is undergoing a historic transformation as part of a ten-year prospective plan. Fruitful outcomes have already been observed, particularly in the agricultural and industrial sectors, with surplus agricultural and industrial products resulting from programs such as “Let Ethiopia Produce” and Yelemat Tirufat development initiatives.
To sustain this growth momentum, the agriculture, service, manufacturing, and tourism sectors are projected to experience significant expansion. With plans to cultivate 2.1 million hectares of land, yielding 810 million quintals of crops, the government aims to create 3.05 million new jobs, including 500,000 opportunities for overseas job seekers this year. In the next three years, an additional 9.15 million jobs are expected to be created.
Addressing the issue of inflation, the government will reinforce fiscal policies aimed at curbing its rise. Furthermore, efforts to enhance the manufacturing sector and reduce dependency on imports will be prioritized. Poverty reduction measures, such as the school feeding and Sunday market projects, will also be sustained to address socio-economic disparities.
President Sahlework further highlighted the government’s commitment to resolve internal issues through dialogue and emphasized the initiation of nationwide negotiations as part of the National Dialogue. The government is dedicated to building democratic institutions and encourages all parties, including armed factions, to engage in peaceful talks.
In terms of international relations, the government remains committed to peaceful mechanisms in addressing border issues. Additionally, it seeks to transform its political diplomacy into economic integration with neighboring countries, fostering regional cooperation and mutual prosperity.
During the joint session, President Sahlework also presented key directions and plans for the new fiscal year. Notably, she emphasized the remarkable achievements of the previous fiscal year, highlighting the creation of over 3.5 million jobs and the overall positive economic growth of 7.5%, despite facing various challenges.
To further propel the economy, the government introduced the “Let Ethiopia Produce” initiative, resulting in the opening of 160 factories across the nation. The service sector witnessed a growth rate of 7.8%, while the tourism sector showed promising gains despite obstacles. She said this achievement is a sign of transformation in the sector.
President Sahlework stressed the government’s determination to achieve the projected 7.9% economic growth in the current fiscal year. Key areas of focus include reducing inflation, enhancing agricultural performance, and attracting increased tax revenue and foreign direct investment.
The government aims to cultivate over 22 million hectares of land, yielding 810 million quintals of crops. It will implement strict fiscal and monetary policies to address inflationary pressures and reduce risks associated with import reliance. Efforts to strengthen the domestic business system and ensure quality standards will be prioritized.
To bolster government revenue, the goal is to collect 441 billion Birr from tax revenue, along with 4.3 billion Birr from foreign resources. Job creation remains a central focus, with plans to generate 3.5 million new jobs during the current fiscal year and facilitate overseas employment opportunities for 500,000 trained citizens.
President Sahlework also expressed confidence in Ethiopia’s economic trajectory, stating that the nation is transitioning from single-sector development to multi-sector expansion. As the government strives to achieve its 10-year development goals on schedule, it aims to overcome challenges and enter a new era of sustained expansion.
A strict fiscal and monetary policy will be implemented to reduce the inflation that is challenging the sections of society with low income. She also accentuated that due emphasis will also be placed upon ensuring the domestic business system and quality.
All in all, Ethiopia’s government is committed to achieving significant economic growth and exploring avenues for regional economic integration. With comprehensive plans in place and a focus on key sectors, the nation is poised for continued progress and prosperity.
Meanwhile, The Ethiopian Herald approached Hailemeskel Taye, an Economist, in order to grasp his view regarding this issue. As to him, the President’s announcement of the government’s determination to achieve a remarkable 7.9% economic growth in the current fiscal year is a crucial aspect. Setting a specific growth target demonstrates the government’s commitment to driving the economy forward and provides a clear direction for policies and strategies.
The emphasis on expanding sectors such as agriculture, service, manufacturing, and tourism indicates the government’s recognition of their potential for driving economic growth. These sectors have the capacity to generate employment, increase production, and contribute to overall economic development.
The focus on job creation is significant as it addresses one of the key challenges faced by Ethiopia. The government’s plan to create new jobs, both domestically and through overseas employment opportunities, will not only reduce unemployment but also improve livelihoods and contribute to poverty reduction, he noted.
Mentioning that, controlling inflation is crucial for maintaining price stability and ensuring a conducive business environment, he acknowledged the significance of government’s commitment to reinforcing fiscal policies to curb inflation and reducing dependency on imports through industrial development. Meanwhile, industrial development helps build a robust domestic manufacturing sector and reduces reliance on imported goods.
According to him, the President’s speech regarding transforming political diplomacy into economic integration with neighboring countries highlights the significance of regional cooperation for Ethiopia’s economic growth. Integrating economies and fostering trade and investment partnerships with neighboring nations opens up new markets, enhances cross-border infrastructure, and facilitates economic development.
Moreover, he explained that the President’s overview of the achievements in the previous fiscal year such as the creation of jobs and positive economic growth, underscores the progress made and the potential for further advancement. Additionally, presenting key directions and plans for the new fiscal year provides a roadmap for sustained growth and development.
Hailemeskel further extended his suggestion for the government regarding the successful implementation of the plan of 7.9% economic growth and ensure sustained development. First the government should continuously improve the investment climate through reducing bureaucratic hurdles, simplifying administrative processes, and enhancing transparency. This can attract more foreign direct investment (FDI) and domestic investment in key sectors.
Infrastructure development is the second solution mentioned by the economist. As to him, it is important to prioritize infrastructure development to improve connectivity within the country and enhance logistics for businesses. It is also essential to focus on building and upgrading roads, railways, ports, and airports to facilitate the movement of goods and services.
“Thirdly,” Hailemeskel said; “The government should work extensively in export promotion, owing to the fact; it is of paramount importance to develop strategies to boost exports through diversifying export products and markets. It is also important to support local businesses in accessing international markets, providing export incentives, and facilitating trade agreements with other countries to expand export opportunities.
Active participation in regional economic integration initiatives, such as the African Continental Free Trade Area (AfCFTA) should also be the government’s commitment to expand market access and promote trade and investment flows among African countries. This will strengthen regional partnerships and cooperation for mutual economic benefits, he stated.
As to him, the government should also work extensively in promoting Public-Private Partnerships (PPPs), sustainable development, ensuring good governance and transparency and accountability along with encouraging innovation and technology. As to him, this will help the government to achieve the aforementioned plan during the current fiscal year.
Implementing these measures requires close coordination among government agencies, private sector stakeholders, and other relevant institutions. It is also essential to monitor the progress, evaluate the effectiveness of policies, and make necessary adjustments to ensure the plan’s successful implementation and achievement of the desired economic growth, he suggested.
BY HIZKEL HAILU
THE ETHIOPIAN HERALD WEDNESDAY 11 OCTOBER 2023
