PM Abiy Says Nation Saves One Billion USD by Import Substitution

Addis Ababa, February 22/2022 /ENA/  Prime Minister Abiy Ahmed said the country has been able to save 1 billion USD by substituting import goods during the first six months of the budget year.

Prime Minister Abiy Ahmed appeared  at the 3^rd Extraordinary Session of the House of People’s Representatives  today  to present  his government performance over the  last six month and  answer questions  raised to him by Members  of the parliament (MPs) regarding the current situations in the country.  

During the session members of the House have asked explanations on several issues including the current situation of the country, the existing economic challenges, ongoing drought in some parts of the country among other things.

In his briefing about the economic performance of his government, Prime Minister Abiy Ahmed said the economic progress in the last six months should be weighed in light of the war in the North, droughts and floods, as well as the impacts of COVID.

The nation has collected 171.3 billion Birr tax  revenue during the first six months of the budget year, which is 92 percent of the target.

He said the country has been able to save 1 billion USD by substituting import goods during the first six months of Ethiopian budget year.

According to him, significant macroeconomic measures are required to close the budget imbalance.

“When our exports exceed our imports, our country benefits. The assets of banks which stood at 1.8 trillion Birr same period last year has increased close to  2 trillion Birr, wealth has increased as well,” the Premier said.

He further stated that there is still a lot of work to be done in terms of developing a saving culture. Over the last six months, loans to private investors have improved have accounted 61 per cent.

Though the nation’s economic activities have been facing several man made and natural challenges over the past six months,  the amount of revenues obtained from export during the stated period has increase by 15 percent compared to the previous year same period, he added.

Abiy stated that the nation has secured 1.9 billion USD from export trade during the stated period which is 25 percent higher than the previous period pointing out that the government is working to get 4 billion USD in the current fiscal year.