“Ethiopia’s Economic Growth Revives, Rising Firmly Strong”

Prime Minister Abiy Ahmed (PhD)

January 26, 2018

The House of People’s Representatives of the FDRE convened its 10th regular session of the 6th parliamentary term today. In its 5th year of operation, the session featured Prime Minister Abiy Ahmed (PhD) addressed questions rose from members and delivered a wide-ranging on the nation’s economic performance.

The Prime Minister outlined three macroeconomic priorities guiding current reforms: strengthening the independence of the National Bank, reinforcing other financial institutions, and attracting investors. He described these measures as inspiring results that are shaping Ethiopia’s economic trajectory.

Prime Minister Abiy highlighted the revival of the industrial sector, noting that energy consumption alone grew by 16 percent in the past six months, while export volumes also registered significant gains.

Turning to services, Prime Minister Abiy emphasized the remarkable growth of Ethiopian Airlines. Once carrying 8 million passengers annually, the airline transported 10.7 million passengers in the last six months. The Airline carrier now aims to reach 22 million passengers this year, expanding its destinations and fleet size.

Telecommunications have also seen dramatic progress. During a political transition, 37 million citizens used mobile phones. Today, Ethio-Telecom serves 87 million users, while Safaricom has added 10 million, bringing the total to more than 97 million users, which is an increase of 60 million.

Prime Minister Abiy Ahmed also explained on fuel pricing that Ethiopia adjusted prices only seven times last year, despite global volatility. He compared current regional prices, noting Djibouti’s 297 birr per liter and Kenya’s 220 birr, against Ethiopia’s subsidized rate of 129 birr.

Financial sector reforms were also underscored. Interest rate adjustments have boosted liquidity, while new rules allowing interbank transfers have facilitated the movement of over half a trillion birr. Within six months, money supply expanded by more than 10 percent, and savings surged by 44 percent.