- Ethiopia is taking bold steps toward economic self-reliance as two mega projects, the Abbay Dam and a domestic fuel production plant, near completion, the Ministry of Planning and Development (MoPD) announced.
At a national economic outlook briefing to affiliated institutions, MoPD State Minister Trumar Abate emphasized that these transformative projects will significantly reduce the country's dependency on energy imports while propelling overall economic growth. The government remains confident in achieving its ambitious target of nine percent national economic growth in the current 2025/26 fiscal year.
"These two projects, both set to be inaugurated within months, are not just infrastructure milestones, but foundational to long-term economic resilience," Trumar stated. She also noted that Ethiopia's key sectors like agriculture, tourism, mining, manufacturing, and services are projected to register higher growth rates than in the previous year.
Presenting the national outlook, MoPD Advisor Tsadkan Alemayehu pointed out that Ethiopia has long been burdened by fuel import costs, paying 10-15 USD more per barrel than the global average. The launch of domestic fuel production is expected to ease this economic strain and enhance fiscal stability.
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Despite a sluggish global economy projected to grow by 2.8%, Ethiopia aims to exceed expectations. Tsadkan acknowledged external risks such as declining foreign direct investment (FDI) flows, geopolitical tensions, fertilizer price surges, and trade barriers but highlighted the government's ongoing structural reforms as key buffers.
He noted that last fiscal year, Ethiopia attracted the second-highest FDI inflow in Africa after Egypt. With several long-delayed mega projects nearing operation, the government expects investment inflows to rise further.
Additional growth drivers cited include reforms in the logistics and mining sectors, the commissioning of 162 new manufacturing facilities, a 20% boost in coffee production, expanding electricity exports, and high international prices for coffee and gold.
"Just from gold and coffee, we expect combined revenues of nearly 6.6 billion USD, 3 billion and 3.58 billion USD respectively," Tsadkan said.
He also pointed to declining contraband activity, improving trade ties with neighboring countries, a relatively stabilized forex market, and rising confidence among international partners as further signs of Ethiopia's gradual economic recovery.
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