Gov’t eying 8.4 percent GDP growth in 2024/25 FY – PM
Addis Ababa, October 31, 2024 (FBC) – This year, the government is lining up a conservative plan to register an 8.4 percent economic development in Ethiopia, Prime Minister Abiy Ahmed said while addressing the parliament’s 3rd session of the new fiscal year this morning.
PM Abiy is currently responding to the questions forwarded by MPs at the 3rd regular session of the parliament.
However, the projected 8.4 GDP growth can even go further than the plan, considering the achievements recorded in the past 3 months of the current fiscal year, the Prime Minister said. “For those who wish to see objectively, Ethiopia has demonstrated notable progress and is working to achieve 8.4% GDP growth in the coming year. In the agriculture sector alone, we anticipate growth of 6.1%.”
Highlighting the anticipated growth of each sector separately, he mentioned that the agriculture sector is anticipated to grow by 6.1 percent. 1.4 billion quintals of crop production is planned to achieve by cultivating 30 million hectares of land. High agricultural productivity has been recorded in all agricultural domains so far, including Green Legacy, forestry, horticulture and mixed agriculture.
Ethiopia is the third highest coffee producer in the world right now, he said, adding that his government is aiming top coffee producers list in the world. In the current fiscal year, the income from coffee production is expected to be 2 billion USD, the premier mentioned.
300 million quintals of wheat is also expected to be produced by cultivating 8.2 million hectares of land. Production level of sesame, almonds, soybeans and others has greatly increased so far, according to the Prime Minister.
On the other hand, the industry sector is anticipated to grow by 12.8 percent during the 2024/25 fiscal year. The “Made In Ethiopia” and other initiatives are anticipated to contribute for this growth, the premier noted. He noted that some 72 plants are anticipated to go operational and start production in the current fiscal year. These plants are expected to garner additional income to the nation.
“In recent years, efforts have been made to revitalize Ethiopia’s industrial sector, with progress in addressing key challenges, particularly in energy supply. Currently, industrial production capacity reached 67%, and sector projected to grow by 12.8% in the current fiscal year.”
Meanwhile, Abiy revealed that his government further anticipates that the service sector is set to grow by 7.1 percent. He reminded that Ethiopian Airlines is set to receive 124 new aircrafts this fiscal year by considering the magnitude of its service. “We have begun works to construct Africa’s largest airport, set to handle 100-130 million passengers annually. We’re also expanding our fleet with 124 new aircrafts, reinforcing Ethiopian Airlines as Africa’s largest operator and a key aviation hub.”
He also highlighted the telecom sector is playing great role in boosting the growth of e-commerce, mentioning the commencement of sale of Ethio telecom’s 10 percent share to the public. Abiy added that similar moves will be implemented in other enterprises.
Furthermore, the PM indicated that Ethiopia has hosted more than around 20 international and continental conferences in the last 3 months, which is bigger than the whole of the previous fiscal year.
According to the Prime Minister, foreign direct investment (FDI) has risen by 6.4% owing to the latest macroeconomic reforms, particularly efforts to create a favorable investment environment. Ethiopia’s renewable energy resources, abundant land, and skilled workforce make it an attractive destination.