Prime Minister Abiy Details Ethiopia’s Tangible and Visible Transformation

Addis Ababa, June 06, 2025 (ENA)—Prime Minister Abiy Ahmed, appeared in a televised interview, emphasized that Ethiopia is experiencing a highly visible and tangible transformation across multiple sectors.

In that interview, the Prime Minister gave a brief explanation on the ongoing bold measures of his government to stabilize the cost of living and stimulate the country's economic growth. Explaining the undergoing extensive reforms, the Prime Minister highlighted a mix of significant advancements in multiple sectors and some persistent challenges over the past six years.

According to him, the reforms under his leadership have been driven by a shift towards more democratic governance, economic liberalization, social change, and modernization have resulted in unprecedented success stories.

 PM Abiy also stated that the government has implemented comprehensive economic reforms aimed at addressing these structural imbalances, and that these reforms are already yielding positive outcomes.

 One of the key achievements, the Premier said, is in the area of exports.

While Ethiopia earned only 7.5 billion US Dollars in total export revenues between 1992 and 2006 Ethiopian budget years, the country is now projected to generate over 8 billion US Dollars in export income at the end of the budget year alone.

Government’s Ongoing Measures to Stabilize the Cost of Living

 

  Prime Minister Abiy also acknowledged that the inflationary pressures currently facing the country stem from a complex mix of long-standing structural issues, natural and man-made challenges, as well as global economic disruptions.

However, he pointed to a significant decline in inflation, from 34 percent to 13.5 percent as a result of persistent reforms that have been carried out including the macroeconomic reform endeavors.

For the Premier, this would be a sign of economic recovery in the East African nation

 The Prime Minister further emphasized that improvements in income levels, poverty reduction, and reductions in GDP arrears are further indications of Ethiopia’s economic stabilization.

In addition to economic progress, Prime Minister Abiy stressed that reforms in various sectors are helping to lay the foundation for a more prosperous future.  He said these efforts are aimed at reducing the burden of debt and creating a more sustainable economic environment for the next generation.

 “Ethiopia is recovering from its past ailments and is now on a path to renewal,” the Prime Minister remarked.

 He urged all stakeholders to remain committed and work collectively to sustain and build upon the progress achieved. “It is the shared responsibility of all citizens and institutions to safeguard and advance the change we have brought about,” he concluded.

 PM Abiy on Multi-Sectoral Initiatives that Are Fueling Economic & Dev’t Gains

In this wide-ranging and long interview, Prime Minister Abiy Ahmed underscored that Ethiopia’s multi-sectoral development approach is delivering measurable results across the nation’s economy and broader development agenda.

Abiy elaborated that achieving lasting prosperity is not possible by relying on a single economic sector. Accordingly, the government has adopted a diversified, multi-sectoral strategy to drive sustainable growth and transformation.

To this effect, agriculture, industry, mining, tourism, and Information and Communications Technology (ICT) have been prioritized by the government   as the key pillars underpinning this strategy, he pointed out.

Acknowledging Ethiopia’s substantial potential in each of these areas, the Prime Minister stressed the need for further employing sound policy, adding that the nature of these sectors are extremely imperative in driving integrated development.

“This approach is already bearing fruit,” he noted, citing improvements in agricultural productivity, industrial expansion, increased mining exports, growth in the tourism sector, and enhanced utilization of digital technologies.

Focusing on the industrial sector as a clear example of progress, the Prime Minister expressed that significant gains have achieved from the sector. He also recalled that industrial production capacity has increased from 48 percent prior to the reforms to 65 percent currently.

Moreover, the number of operational industrial parks has grown from three to thirteen, with the majority of facilities now active. “We have revitalized the industrial sector by constructing industrial parks, enabling investor ownership, and establishing free trade zones,” PM Abiy explained.

He emphasized that these efforts have produced remarkable outcomes, and projected that the industrial sector will grow by 13 percent in 2024/2025, reinforcing its central role in driving national economic growth. The Prime Minister also underscored the critical importance of the service sector, calling it “the backbone and delivery mechanism” of economic progress.

Prime Minister Abiy pointed to ongoing reforms, particularly in the financial sector, aimed at modernizing and streamlining service delivery. By integrating major sectors with supportive fields, we are achieving multiple, interconnected results, the Premier stated, adding, “This holistic approach is accelerating our national development and shaping a prosperous future for Ethiopia.”

Ethiopia’s Context-Driven Macroeconomic Reform: Blending Local Realities with Global Lessons

 Prime Minister Abiy Ahmed spoke about Ethiopia's ongoing macroeconomic reform, describing it is deeply rooted in its unique context, leveraging global lessons and tailored to its specific needs.

Abiy explained that Ethiopia's economic reform was founded on self-reflection and a critical assessment of the national economic landscape. He further recalled the government's extensive consultations with both domestic and international stakeholders to identify and address the economy's structural challenges.

Elaborating on the importance of global experiences, Prime Minister Abiy stated that Ethiopia has drawn valuable insights from countries that successfully navigated economic crises and reforms. He emphasized that these insights have been adapted to Ethiopia's unique reform journey, underscoring that the reform, while indigenous in design, does not reject external knowledge.

Ethiopia's homegrown economic reform doesn't mean we're closed off from learning from others," the Prime Minister emphasized, rejecting claims that the reform was simply copied from other countries as "inappropriate."

He also pointed to ongoing negotiations with the International Monetary Fund (IMF), the World Bank, and other creditors regarding Ethiopia’s external debt, noting these discussions prioritize the nation's interests.

Prime Minister Abiy reiterated that Ethiopia's macroeconomic reform is a product of its national circumstances, enhanced by international best practices, and scaled to its developmental vision.