PM Abiy Lauds Remarkable Achievements of Reform in Three Months

Addis Ababa October 31/2024( ENA) Prime Minister Abiy Ahmed has commended the achievements of the macroeconomic reform particularly, in Ethiopia’s export trade and foreign direct (FDI) inflow during the past three months. 

Addressing to members of the parliament today, Premier Abiy highlighted regarding achievement gained following the reform during the past three months.

According to him, Ethiopia’s foreign exchange reserve grows by 161 percent during the past three months. 

The reserve of the National Bank of Ethiopia registered 161 percent growth. The reserve of private banks also grows by 29 percent. 

Noting that remittance registers 24 percent growth, he noted the transaction which has been carried out in banks is so encouraging.  

Taking the export alone, the plan for the past three months was to secure 1.1 billion USD. However, he said the country achieved 1.5 billion USD during the stated period exceeding the target.  

Stating that the country’s highest export earning was 4 billion USD during the reform period, he said the country now can secure 5 billion USD from export within a year as the last three months’ achievement clearly showed the progress.   

Accordingly, coffee and gold have played crucial role for the increase in export revenue of the country during stated period.  

The country secured 1.4 billion USD from service export while1.5 billion USD gained from export of goods, he said, adding that it is the first time that the export of goods surpassed service export which is one of the targets of the reform. 

Import has been also reduced by 1.3 percent which should be further encouraged, he emphasized.  Regarding FDI inflow, Abiy said the FDI inflow registers 6.4 percent growth during the past three months. 

Ethiopia has received 3.4 billion USD in foreign investment, a substantial increase compared to the same period last year. 

This surge in investment can be attributed to the government's macroeconomic reforms, which have created a favorable environment for businesses, the Premier added.

According to Abiy , foreign direct investment has increased by 6.4  due to these reforms and  Ethiopia's abundant natural resources, including land and renewable energy, coupled with its skilled workforce, make it an attractive destination for investors,  focusing on economic liberalization has unlocked this potential.

In recent years, efforts have been made to revitalize Ethiopia’s industrial sector, with progress in addressing key challenges, particularly in energy supply. 

Currently, industrial production capacity reached 67 percent and the sector projected to grow by 12.8 percent in the current fiscal year.

Accordingly, the manufacturing and construction sector are expected to grow by 12 percent and by 12.3 percent respectively. 

‘Made In Ethiopia’ movement has been playing instrumental role in strengthening the manufacturing, Abiy said revealing that 72 big  industries will commence production during the current fiscal year. 

These industries are engaged in textile, food and beverage, construction and chemicals as well as technologies and military sectors. 

The premier said half of the manufacturing activities in the various industry parks in Ethiopia are occupied by domestic investors which has brought remarkable achievements in strengthening import substitution. 

Ethiopia is working to achieve 8.4 percent GDP growth in the coming year. In the agriculture sector alone, we anticipate growth of 6.1 percent.