Council Approves Medium-Term Macroeconomic and Fiscal Framework, Passes Decisions on Financial Agreements, Proclamations

Addis Ababa, May 29, 2025 (ENA)— The Council of Ministers has passed decisions on various issues, including the 2026-2030 Medium-Term Macroeconomic and Fiscal Framework, financial agreements and proclamations concerning overseas employment and plant protection.

The council, in its 46th regular session, has unanimously approved the 2026-2030 Medium-Term Macroeconomic and Fiscal Framework.

This vital framework is strategically designed to broaden the government's revenue base to effectively cover expenditures and ensure sustained macroeconomic stability.

It also provides critical policy directions for revenue mobilization and prudent resource allocation, serving as a foundational document for the upcoming budget year's preparations.

According to the statement of the council, this endorsement highlights the government's commitment to sound financial management and sustainable economic growth.

Secondly, the council has endorsed two financial support agreements.

 

The 49.55-million USD loan from the Arab Bank for Economic Development in Africa (BADEA) will be channeled towards a youth employment creation project, specifically linking them with agro-industrial parks.

The loan carries a low-interest rate and a 20-year repayment period, including a five-year grace period.

Additionally, a 45.10-million SDR (approximately USD60 million USD) credit from the International Development Association (IDA) is allocated to improve healthcare services for women and girls.

This interest-free credit, with a 0.75 percent service charge, has a 38-year repayment period, including a six-year grace period.

 

Both loan agreements were unanimously approved, confirming their alignment with Ethiopia's national debt strategy, and referred to the House of People's Representatives.

Thirdly, the council discussed the regulation to determine service fees for overseas employment provided by the Ministry of Labor and Skills.

This regulation is set to enable the ministry to cover its operational costs and boost internal revenue, while carefully considering the affordability for service users.

The new fee structure will be implemented upon its official publication in the Federal Negarit Gazeta.

Fourthly, the council extensively discussed and unanimously approved a draft proclamation on Ethiopian overseas employment. The draft legislation is prepared to safeguard the rights, safety, and dignity of Ethiopian citizens working abroad on a long-term basis.

Concurrently, it aims to ensure that the country appropriately benefits from this sector. The approved draft was referred to the House of People's Representatives for further deliberation.

 

 Finally, the council deliberated on and unanimously approved a draft proclamation on plant protection and quarantine. The proclamation aims to establish a modern, technology-backed pest surveillance and early warning system in Ethiopia.

It will also regulate the import and export of plants, plant products, and other controlled items in accordance with international plant protection agreements.

Furthermore, the proclamation seeks to prevent the spread of controlled pests if they enter the country, thereby providing robust protection to Ethiopia's vital agricultural sector. The draft was referred to the House of People's Representatives.