Ethiopia Unveils 25-Year Economic Transformation Framework

20 November 2024
The Ethiopian Herald (Addis Ababa)

ADDIS ABABA - Government has made public a long-term economic transformation plan that could span 25 years.

During the Financial and Private Sector Dialogue on the State and Outlook of the Ethiopian Economy held yesterday, Plan and Development Minister Fitsum Assefa (PhD) emphasized the urgency of transforming Ethiopia's economy, which has experienced growth but lacks structural change over the past decades.

The minister, therefore, called on the private sector to engage more in secondary and tertiary sectors in a bid to ensure the economic transformation.

According to Fitsum, Agriculture continues to dominating the export, GDP, and employment. Countries including Ethiopia are heavily reliant on primary sectors and struggle to achieve transformation.

She underlined the need for significant growth in the manufacturing sector as it is expected take a larger share of the GDP in the future.

While Ethiopia has maintained a 7.2% average growth over the past six years of reform, structural transformation remains intangible. "Approximately 70% of the employment force is still dependent on agriculture. This highlights the critical need for economic transformation alongside growth," she added.

Fitsum also highlighted Ethiopia's favourable demographics, strategic geographical location, and cultural ties with neighbouring countries as key opportunities to drive the transformation initiative.

National Bank of Ethiopia Governor Mamo Mihiretu also added that recent reforms have encouraged private sector engagement, particularly in the financial sector, which supports manufacturing and other secondary economic activities.

"The government has launched and enhanced initiatives in manufacturing and industrial sectors with targeted credits and supportive legal frameworks," Mamo said.

The government's long-term plan (a 25-year framework) designed to achieve sustained economic transformation, is anticipated to align the country with global standards for structural development.

BY YESUF ENDRIS

THE ETHIOPIAN HERALD WEDNESDAY 20 NOVEMBER 2024

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