A Week in the Horn 28.03.2025
Prime Minister Abiy Ahmed, on Thursday (March 20) responded to various questions raised by Members of the House of People’s Representatives on issues pertaining to the economy, sectoral priorities, service delivery, revenues, inflation, the state of political culture, Ethiopia’s continued commitment to good neighbourliness and the Pretoria Peace Agreement, among others.
Regarding the economy, Prime Minister Abiy said major economic indicators have shown significant progress over the past eight months, adding that If this momentum is sustained in the remaining months of the fiscal year, Ethiopia is projected to achieve economic growth exceeding 8.4 percent for the current fiscal year. In his responses to questions related to the agriculture sector, the prime minister pointed out that smallholder farmers have cultivated 20.5 million hectares of land, and in wheat production, 4.2 million hectares were planted in the rainy season, while 3.7 million hectares were cultivated through summer irrigation, with an expected yield of no less than 300 million quintals. Equally importantly, he added that significant progress has also been recorded in coffee and tea production. Moreover, notably, in the past eight months alone, coffee exports have generated $1.2 billion in revenue.
With regard to the status of service delivery, the Premier said a steering committee has been established to address bottlenecks in the industrial sector, noting that key challenges, including foreign exchange shortages and power supply issues, have been identified, and efforts are underway to resolve them. For instance, this year alone, power supply to the industrial sector has increased by 50 percent compared to the previous year. Cement production, which faced shortages in the past, is now sufficient to meet domestic demand and is also being exported. Additionally, industrial production capacity has reached 61 percent, and 55 new factories have begun operations this year.
Following the success of the Grand Ethiopian Renaissance Dam, the prime minister disclosed that the country’s next major project is the establishment of a domestic fertilizer factory. He added that efforts have already begun to launch local fertilizer production, with a strong focus on partnerships with the private sector. However, he said, “Ethiopia currently requires 24 million quintals of fertilizer annually. To meet this demand, the country is importing 150,000 quintals of fertilizer per day.”
Dispelling rumours regarding Ethiopia’s potential military showdown with neighbouring Eritrea, Prime Minister Abiy said, “Ethiopia does not have any intention of engaging in conflict with Eritrea for the purpose of gaining access to the sea.” He stated, “Our desire is to engage in dialogue and discussion on this matter instead.” “Access to the Red Sea is nevertheless an existential matter for Ethiopia. What we want is to peacefully address our current challenges,” Prime Minister Abiy stressed in reply.
Speaking of the Cessation of Hostilities Agreement (CoHA) or commonly known as the Pretoria Agreement, the prime minister stated the fact that “The Pretoria Agreement has helped restore infrastructure and provide services to the people of Tigray. However, there are still issues that have not been adequately addressed, one of which is the Disengagement and Reintegration (DDR) process. This primarily affects the people of Tigray.” In this connection, he added, “The youth should be redirected from militarization and engaged in development instead. Billions of dollars that should be spent on development each month are being diverted to this work.”
Touching upon the progress of the DDR as part of the Agreement, he said, “Significant progress has been made in Raya and Tselemt in returning displaced people to their villages, but in other areas, the results have been less successful. This is largely due to the intertwining of humanitarian efforts with politics.”
Despite challenges, Prime Minister Abiy told the parliamentarians that the Tigray Interim Administration has done an excellent job of preventing further conflict over the past two years. As the two-year term of the interim administration has now expired, the Prime Minister mentioned, there is a need for legal reform. Once the law is amended, a review of past performance will follow, he further stated.
Prime Minister Abiy further said, after making the necessary adjustments in line with the Pretoria Agreement, the interim administration will be able to carry out its responsibilities and prepare the people for upcoming elections, and critical discussions are underway with the leaders of the interim administration and other stakeholders on this matter.