Ethiopia's strong, decade-long economic growth made it possible for the country to be on track to achieve the Millennium Development Goals says the African Development Bank (AfDB).
In its latest publication "AfDB and Ethiopia - Partnering for Inclusive Growth" the Bank point to huge investment in infrastructure and commercialization of agriculture as major causes for the average 11% annual growth over the past nine years, making Ethiopia the biggest economy in East Africa.
The Bank lauded the government's development policy that lead to broad based growth and a considerable reduction in poverty, noting pro-poor policies accounted for 69% of expenditure in the 2011-12 budget year alone.
Prudent monetary policies brought inflation down to 7.7% in 2013 from a high of 40% in mid-2011. The Bank underlines its commitment to continue partnership with Ethiopia, aligning its country strategy with the Growth and Transformation Plan.
It notes "the government of Ethiopia's key development objective is to achieve inclusive, accelerated and sustained economic growth and to eradicate poverty" and expresses the Bank's strong conviction of the prospects of Ethiopia's development.
The Bank's country strategy principles included alignment with the Growth and transformation Plan, prioritizing infrastructure, regional integration, governance and private sector development and supporting the East African Integration strategy. The Bank has therefore supported the Ethio-Djibouti Electric Power Interconnection Project, the Ethio-Kenya Electric Highway project, the Mombasa-Nairobi-Addis Ababa Road Corridor and the Rural Water Supply and Sanitation Program.
Since it joined the African Development Bank Group in 1964, Ethiopia has benefitted from loans and grants to the tune of US$3.75 billion, making it the sixth largest beneficiary in the continent.(MFA)