Prime Minister Abiy Ahmed addressed members of the House of People’s Representatives on Thursday (July 3), responding to questions raised from Members of Parliament regarding the government’s 2024/25 budget execution and the national development priorities for the next fiscal year. His remarks covered key economic sectors, major national initiatives, the broader political landscape and Ethiopia’s relations with neighboring countries.
Prime Minister Abiy said agriculture remains the backbone of Ethiopia’s economy and the foundation of its export earnings. He noted that a significant portion of the population is directly or indirectly engaged in the sector, highlighting its vital role in the country’s development. For the current year, agricultural growth is projected at 6.1 percent. Emphasising the importance of food sovereignty, he stated, “A country that cannot feed itself cannot fully secure its future.” He highlighted the transformation of the safety net program, under which 23 million of the 27 million previously dependent citizens have now achieved self-sufficiency. The government is now focusing on supporting the remaining 4 million beneficiaries to realise full national food sovereignty, an attainable goal, given Ethiopia’s abundant arable land and continued commitment.
Turning to the industrial sector, Prime Minister Abiy outlined a 12 percent growth target for the year. Under the “Made in Ethiopia” initiative, industrial production capacity has increased from 59 percent last year to 65 percent this year. Energy demand from the sector has reached 40 percent, reflecting heightened activity and expansion. Cement and steel production have shown notable growth, with steel products rising by 18 percent. Significant investments are also underway, including the construction of a large-scale glass factory with a 600,000-ton annual capacity, expected to be completed by December or January. Solar panel production facilities are also in development, reinforcing the government’s commitment to revitalising and transforming the country’s industrial base.
In the mining and energy sectors, the Prime Minister noted that while Ethiopia possesses one of the richest mineral endowments in Africa, the sector has historically suffered from a lack of focused leadership and a clear vision. That, however, is changing. He said, “Last year, Ethiopia exported 37 tons of gold. This year, thanks to sustained effort and strategic attention, we achieved an unprecedented export value of 3.5 billion dollars. This marks a significant milestone in the country’s mineral development.” In the gas sector, operations that were previously delayed due to licensing issues are now progressing, with Ethiopia preparing to begin marketing its gas products soon. The construction of a major fertiliser factory is set to begin shortly and will become operational within 40 months, further strengthening agricultural productivity and reducing reliance on imports.
Prime Minister Abiy also highlighted the significant transformation within the financial sector. Reforms have led to healthy growth, with mobile money users reaching 55 million and digital transactions surpassing 12.5 trillion birr, outpacing traditional cash-based transactions. Virtual loan disbursements have reached 24.5 billion birr, reflecting the increased accessibility and efficiency of financial services. These developments, along with gains in other sectors, underpin the government’s projection of 8.4 percent economic growth this year.
On foreign trade, the Prime Minister celebrated the success of ongoing export reforms. Ethiopia earned over $8.1 billion in export revenue this year, exceeding the target by $3 billion and more than doubling last year’s performance. Inflows included $7 billion in remittances, $4 billion in foreign direct investment, and $8.3 billion from services. Altogether, Ethiopia generated $24 billion from foreign exchange sources excluding loans and grants. This year’s total foreign exchange earnings have reached $32 billion. These outcomes, he emphasised, reflect the positive impact of macroeconomic reforms and the growing resilience of Ethiopia’s economy.
Regarding the Grand Ethiopian Renaissance Dam (GERD), Prime Minister Abiy confirmed that the project is now complete and will soon be officially inaugurated. He said, “To our neighbors downstream—Egypt and Sudan—our message is clear: The Renaissance Dam is not a threat, but a shared opportunity. It is a symbol of regional cooperation and mutual benefit.” The Prime Minister underscored that Egypt’s Aswan Dam has never lost a single litre of water due to the GERD. Likewise, Ethiopia remains committed to ensuring that “our growth does not come at the expense of our Egyptian and Sudanese brothers and sisters,” he said. “We believe in shared progress, shared energy, and shared water. Prosperity for one should mean prosperity for all. Ethiopia remains ready and willing to engage constructively with downstream countries,” The Prime Minister added.
On peace and stability, the Prime Minister praised the recent calls for peace by the people of the Amhara region. He stressed that the public must hold leaders accountable and reject violence, obstruction of education, and disruptions to essential services. He noted that Ethiopia’s past conflicts have been resolved through effort, and relative peace has enabled growth in agriculture, mining, and tourism. The Prime Minister urged all communities to protect and build on this peace through collective effort and vigilance.
Addressing developments in the Tigray region, the Prime Minister described the Pretoria Agreement as a critical turning point that ended daily loss of life and opened a path to peace. Key services. including telecom, banking, and air travel have fully resumed. While displaced residents of Raya have returned, returns to Wolkait are still pending; the government remains committed to ensuring all displaced people go back to their homes. The Prime Minister noted that rehabilitating and reintegrating former fighters is a priority and supports the region’s interim administration. He added that the federal government continues to pursue peace, but misunderstandings and false hopes of foreign support have led some to wrongly push for renewed conflict. “What Tigray needs is peace and dialogue—not war,” he underlined, calling on religious leaders and elders to help prevent escalation. He said, “The government’s position is clear: we seek no conflict and aim to resolve issues without firing a single shot. All Ethiopians, including the people of Tigray, must contribute to national dialogue and lasting peace.”
On foreign relations, Prime Minister Abiy affirmed that Ethiopia’s relations with neighbouring countries are grounded in mutual coexistence and peaceful cooperation. He has made it abundantly clear that Ethiopia’s pursuit of port access is rooted in peaceful negotiation and respect for sovereignty; not force. “We have not engaged in conflict with any neighbour over the past seven years and remain committed to peace. We do not seek confrontation with Eritrea or any other country—and expect the same in return. Our vision is one of shared progress and stability,” he added.
In conclusion, the Prime Minister characterised Ethiopia’s current trajectory as a national revival, ushering in a new phase focused on realising the full results of the ongoing reforms. This year, he says, marks a period of remarkable progress and unprecedented achievements across sectors, reflecting the strength, resilience, and renewed spirit of the Ethiopian people.