Prior to 2019, Ethiopia's economy exhibited sustained growth, despite underlying macroeconomic imbalances. While the government's substantial investment in infrastructure fueled expansion, it also contributed to high inflation, inadequate job creation, and mounting credit pressures. To address these structural challenges and foster sustainable, inclusive economic growth, Ethiopia initiated an Indigenous Economic Reform Agenda in the first quarter of the 2019 fiscal year. A cornerstone of this reform was the implementation of stringent fiscal policies aimed at stabilizing the macroeconomic environment. Debt Reduction To alleviate the country's debt burden, the government has shifted its borrowing strategy away from high-interest commercial loans towards concessional loans with lower interest rates and longer repayment terms. Furthermore, efforts have been made to reduce borrowing by public enterprises and improve project planning and execution through rigorous research and capacity building. Debt restructuring and negotiation with creditors have also contributed to lowering the overall debt burden. Balance of Trade To improve the trade balance and increase national income, tremendous activities have been carried out on boosting production, productivity, and the capacity of sector institutions. By expanding economic growth drivers, particularly in agriculture, industry, tourism, mining, and ICT, tangible results have been achieved. These reforms have led to increased production, productivity, and foreign trade performance, thereby improving the trade balance and generating sufficient revenue for debt servicing. In the previous fiscal year alone, earnings from goods and services surpassed 10 billion USD, while remittances exceeded 6.5 billion USD. Foreign Direct Investment (FDI) reached 3.8 billion USD in the 2023/2024 fiscal year alone. Significant strides have been made in import substitution, including wheat. Over the past ten months, the country replaced imports worth 2 billion USD. From 2018/2019 to 2022/2023, average GDP growth stood at 7.1 percent. Filling Budget Deficit To address the budget deficit, the government has prioritized increasing revenue as a percentage of Gross National Product (GNP). Recent years have witnessed significant progress in tax administration through the expansion of the tax base and the implementation of a modernized tax collection system. As a result, tax revenue surpassed 529 billion Birr in the previous fiscal year. Reducing Inflation Efforts to stabilize prices have centered on increasing product supply, particularly through the “Bounty of the Basket” development initiative, and enhancing productivity. Agricultural output has surged, with harvests exceeding 100 million quintals this year compared to the previous year. Additionally, the government injected 10 billion Birr into the economy and lifted import duties on essential goods. To control monetary expansion and reduce government borrowing from the National Bank, measures have been implemented to regulate cash flow and restrict credit lending by commercial banks. As a result of these and other adjustments, inflation has declined from over 30 percent to 19.9 percent. Job Creation The economic reforms implemented in recent years have yielded significant job creation. Over 3.8 million jobs were generated in the past fiscal year alone, primarily within the industrial, agricultural, urban development, and infrastructure sectors. Concurrently, the government has facilitated legal employment opportunities for over 300,000 Ethiopians abroad. Comprehensive Macroeconomic Reform Policy Implementation Building upon the successes of the initial economic reform program while acknowledging the remaining challenges, Ethiopia has launched a comprehensive macroeconomic reform policy. This initiative is centered on four key pillars including establishing a modern, stable, and sustainable macroeconomic policy environment, fostering innovation, competitiveness, and investment, strengthening domestic production and productivity across sectors and increasing the government's capacity to provide quality services. This reform agenda aims to stimulate robust, private sector-led, inclusive growth and job creation. The overarching goals include sustained high economic growth and single-digit inflation. By addressing foreign exchange imbalances, strengthening the financial sector, controlling inflation, increasing tax revenue, optimizing government investment, enhancing banking sector competitiveness, and improving the business environment, the government seeks to build a modern as well as globally competitive economy. Key components of the reform include transitioning to a market-based exchange rate system, implementing a modern interest rate-based monetary policy, reforming fiscal policy to reduce public finance pressures, and optimizing development finance and public debt management. These measures are aligned with Ethiopia's long-term and medium-term development plans. The anticipated outcomes of these reforms are impressive. Accordingly, the nation is highly expected to register an average annual GDP growth of 8 percent over the next four years and its inflation to reduce to 10 percent. Moreover, the tax revenue as a percentage of GDP is also anticipated to reach 11 percent, government debt-to-GDP ratio decline to 35 percent, export and import trade valued at 20 billion USD, foreign direct investment reaching 8 billion USD, and foreign exchange reserves exceeding 10 billion USD. These projections underscore the potential for significant economic transformation. Successful implementation of this comprehensive reform agenda is crucial for safeguarding Ethiopia's national interests and improving the lives of its citizens.        

The Ethiopian government is delivering humanitarian assistance to victims of devastating landslide that hit Kencho Shacha Gozdi Kebele of Gofa Zone, Southern Ethiopia Region. The landslide was caused by heavy rains in Gofa Zone on Sunday night, burying some residents. Sadly, another landslide hit the area on Monday morning, engulfing those people who gathered for search-and-rescue operations. The incident has claimed 226 lives, according to Disaster Risk Management Commission. Prime Minister Abiy Ahmed announced the deployment of a federal disaster prevention task force to Gozdi Kebele on July 23 to facilitate rescue operation and emergency assistance provisions to the affected community. Following the premier's announcement, various government bodies have mobilized resources to provide immediate relief and support to the affected communities. Disaster Risk Management Commission (DRMC) in a statement sent to ENA said that the humanitarian and rehabilitation activities are well underway, delivering assistance to the victims of landslide in Gozdi Kebele of Southern Ethiopia region as per the direction given by Prime Minister Abiy Ahmed. Ambassador Shiferaw Teklemariam Disaster Risk Management Commissioner recalled that the landslide disaster caused loss of lives and destruction of properties in Gozdi Kebele of Gofa Zone. The federal taskforce, comprising high ranking government officials from various ministries and institutions, has been deployed to the Gozdi Kebele to identify critical issues and the necessary humanitarian assistance in the area, the commissioner said. While the lifesaving operations still continue, the number of persons who died as a result of the landslide has so far reached 226, he revealed. He added that in parallel to the provision of humanitarian support, efforts are in place to rehabilitate the victims in an orderly manner based on study, he indicated. Accordingly, 600 people have been relocated from the area hit by the landslide, where altogether 6,000 vulnerable people have been identified for relocation, he pointed out. The humanitarian support has been intensified by federal and regional states as well as various institutions, and the citizens at large. The commissioner further said other humanitarian partners have also been extending food and non-food assistance through the UNOCHA. Earlier today, the Addis Ababa City Administration also provided relief assistance to the victims of Geze-Gofa district. Mayor of Addis Ababa city Adanech Abiebie announced yesterday, "We have dispatched over 45 million Birr in cash and humanitarian emergency items to assist the landslide victims in the Geze Gofa woreda." Meanwhile, Kasech Elias, Head of the Southern Ethiopia Region’s Women and Children's Bureau, reported that the bureau has delivered essential supplies to the site. "We have provided 750 liters of cooking oil, powdered milk, and clothing for 100 infants, sanitary pads for women, and other forms of support. The Southern Command of the National Defense Force has also made a contribution to the relief efforts. Major General Admasu Alemu, Deputy Commander for Operations, visited the affected area and oversaw the delivery of 40 quintals of biscuits and 5 quintals of sugar. Additionally, the Command has dispatched an ambulance and a team of medical professionals to provide emergency support. Ethio Telecom, in collaboration with the disaster prevention of Southern Ethiopia Region, has launched fundraising SMS 8091 to support the affected community. Deputy Chief Administrator of the Southern Ethiopia Region, Gebremeskel Chala, emphasized the government's commitment for sustainable recovery of affected community. "Beyond providing temporary humanitarian aid, the regional government has established a task force to assist the victims in rebuilding their life sustainably," he stated. Overall, the national emergency assistance provided to victims of landslide in Kencho Sacha kebele, of Gofa Zone showcases the concerted efforts of the federal, regional, and local authorities, as well as public enterprises and the general public. The incident underscored that local capacity should be enhanced for disaster response and recovery. As the rescue and relief operations persist, authorities are urging ongoing support and solidarity from all sectors of society to support the affected communities in Gofa Zone. Commissioner Shiferaw Teklemariam has extended appreciation for Ethiopians which have demonstrated solidarity in providing humanitarian assistance to the victims of the landslide. Towards addressing the problem sustainably, he urged fellow Ethiopians to continue their support.