PM Abiy Says Significant Agricultural Gains Driving Ethiopia’s Economic Growth

Addis Ababa, July 3, 2025 (ENA) -- Prime Minister Abiy Ahmed has announced the remarkable achievements seen in Ethiopia’s agricultural sector, crediting intensive nationwide efforts that are now significantly contributing to the country’s overall economic growth.

During the 42nd regular session of the House of People's Representatives (HPR) today, the Prime Minister addressed questions raised from lawmakers and elaborated the contribution the agricultural sector plays in Ethiopia’s development journey.

According to Prime Minister Abiy, Ethiopia recorded an economic growth rate of 8.1 percent last fiscal year and it is projected to grow by 8.4 percent this year.

Agriculture remains a key pillar of this performance, serving both as the backbone of the export and as a crucial element in the country’s push for food sovereignty.

“When we initiated the reform, our approach was not limited to just one sector such as corridor development, as is sometimes perceived from the outside,” he explained. “Our economic focus has been multisectoral, where agriculture has received particular attention to ensure national food sufficiency.”

The agricultural sector is expected to grow by 6.1 percent this year, playing a major role in driving the nation’s economic momentum.

The Prime Minister stressed the importance of self-reliance, stating that Ethiopia must overcome poverty through its own efforts rather than relying on aid.

This belief, he said, has enabled millions to get out of aid dependency where from  the 27 million people who were previously beneficiaries of the government’s safety net program, 23 million have now become self-sufficient due to gains in agricultural productivity.

Calling this a major milestone, PM Abiy urged for continued national commitment to eliminate food insecurity and aid dependency entirely.

He also emphasized the country’s growing agricultural potential.

The area of cultivated land increased from 26 million hectares of land last year to 31.8 million hectares this year, boosting total crop production from 1.2 billion quintal last year to 1.5 billion quintals this year.

Much of this progress, he noted, is due to the expansion of irrigation infrastructure, which accounted for about 24.7 percent of the sector’s growth.  The prime minister cited some 100 irrigation dams are under construction in the country.

The Prime Minister also mentioned the rehabilitation of over 50,000 hectares of previously acidic land, which has now been converted into productive farmland.

According to the premier, there have been notable increases in the production of wheat, rice, milk, honey, poultry, and other commodities, are signals of a positive shift toward higher productivity and import substitution.

Looking ahead, PM Abiy announced that six new irrigation dams will be inaugurated until the coming September, which are believed to further boosting agricultural output.

The Prime Minister said that the country’s agricultural sector is undergoing a meaningful transformation, one that is crucial for lifting the country from dependency to self-sufficiency.

If current efforts are sustained and strengthened, he said, agriculture will continue to be a powerful engine for Ethiopia’s economic growth.

 

 

Ethiopian News Agency
2023