Ethiopia’s Economic Reform Drives Structural Shift through Sectoral Revitalization

Addis Ababa, April 1, 2026 (ENA) —Scholars at Hawassa University underscored that the Homegrown Economic Reform Agenda (HGER), implemented over the preceding reform years, is successfully accelerating Ethiopia's structural transformation by injecting fresh vitality into the national economy.

They emphasized that the implementation of the reform agenda has begun to reshape the country’s economic foundation by revitalizing productivity, strengthening sectoral linkages, and fostering a more resilient and diversified growth trajectory.

Since the transition of government in April 2018, targeted policy reforms and strategic programs have emerged as key drivers of the country’s sustainable development and long-term economic progress.

In an exclusive interview with ENA, academics stated that the HGER has triggered a notable economic resurgence, accelerating the transition toward a more resilient and diversified structural framework.

Gebrekristos Nurye, Director of Research and Technology Transfer at the University’s Institute of Technology, said, “The government’s shift from an agriculture-led model to a diversified, multi-sectoral economy is delivering tangible and measurable results.”

The government has built a solid foundation for achieving comprehensive and inclusive national growth particularly by synergizing the five core economic pillars, he emphasized.

Furthermore, he pointed out that the expansion of summer irrigation has revolutionized agricultural output by enabling year-round production, which has played a critical role in stabilizing food supplies and market prices.

The Director also highlighted the significant economic contributions of high-profile tourism initiatives, such as the "Dine for the Nation" and "Dine for Generations" projects, alongside transformative urban corridor and riverside developments that are reshaping the nation's aesthetic and commercial landscape.

The scholar also stressed the need for firm leadership commitment to navigate and resolve emerging economic bottlenecks to maintain the momentum of these policy gains.

Markos Matewos, a researcher and Dean of Students at the Institute, added that strategic policies aimed at digitizing the economy and modernizing the agricultural sector through mechanization over the last eight years are now bearing fruit.

He specifically credited the summer wheat irrigation schemes and the "Bounty of the Basket" (Lemat Trufat) initiatives for empowering smallholder farmers and enhancing their economic resilience through boosted productivity.

Kasahun Gashu, Dean of the School of Manufacturing, explained that the HGER has created a fertile environment for the manufacturing sector, allowing Ethiopia to save vital foreign exchange by replacing imports with high-quality, locally produced goods.

The Dean noted that these reforms have enabled higher education institutions to evolve beyond traditional teaching into centers of production. By strengthening university-industry linkages, academia is now playing an active role in the country’s overarching structural shift.

In closing, he urged for the continued fortification of the "Let Ethiopia Produce" (Ethiopia Tamrit) movement and other HGER-driven opportunities, as they are essential for maximizing the manufacturing sector’s contribution to the national GDP.