Addis Ababa — : Prime Minister Abiy Ahmed said that the second phase of the Homegrown Economic Reform Plan, which would be implemented effective from the next EFY for three years, has been prepared to repair economic fractures in the country.
During the 28th regular session of the House of People's Representative, Prime Minister Abiy responded to many questions related to economic issues. He noted despite many man-made and natural disasters, Ethiopia has witnessed many successes as a result of the implementation of the first phase Homegrown Economic Reform plan.
Noting that one of the goals of the first Homegrown Economic reforms was to stimulate the private sector, the prime minister indicated the government exerted maximum efforts to improve the private sector landscape.
The government is of the view that: "A non vibrant private sector has always limited opportunities for innovation, employment and sustainable development," Abiy underlined.
He also mentioned that his government had received backlogs of microeconomic fractures, which necessitated reforms and attempts have been made to improve the fractures through the Homegrown Economic Plan.
Those economic fractures which we have inherited are, among others, inflation, debt burden, budget deficit and political problems, noting for instance, the government's debt reached 59 percent of GDP), he recalled.
The first phase of the Homegrown Economic plan has faced many challenges due to many man-made and natural disasters we have inherited from the past, but "we have seen significant progress and change," Abiy noted.
Therefore, in order to fully achieve the development aspiration of the country, the prime minister indicated that the second phase of the Homegrown Economic Reform plan has been prepared.
This plan is vital to help the country repair its economic breakdowns, he indicated.
The Second phase of Homegrown Economic Reform plan, which has been prepared based additional economic development needs for building a resilient economy, would be implemented from 2024 to 2026.
