AMN PLUS-July 7,2026
Responding to questions raised by members of the House of Peoples’ Representatives on the state of the economy, Ethiopia’s Prime Minister, Abiy Ahmed (PhD), stated that the government’s genuine and well-led reform agenda has enabled the country’s economy to recover from the challenges it previously faced, creating renewed hope for sustained growth.
Agriculture
The Prime Minister explained that agriculture remains one of the government’s key economic pillars in its strategy to diversify the national economy. To strengthen the sector, the government has expanded cultivated farmland, developed irrigation infrastructure, promoted mechanized farming and cluster farming, improved access to selected seeds, and implemented other productivity-enhancing measures. These efforts, he said, have delivered remarkable results.
According to the Prime Minister, Ethiopia cultivated 29 million hectares of land during the current production season and harvested 1.3 billion quintals of crops.
He further noted that the ongoing Bounty of the Basket Initiative has produced outstanding achievements. Ethiopia has become the second-largest avocado exporter in Africa, generating substantial foreign currency earnings. Avocado production, once relatively unfamiliar in many parts of the country, has now emerged as an important source of export revenue.
The Prime Minister also highlighted the transformation taking place across different regions. Borena Zone, once widely associated with recurrent drought, has significantly expanded its agricultural production. Likewise, the Somali and Afar regions have developed extensive farmlands, demonstrating that determined investment in agriculture can unlock the country’s vast production potential. He added that several previously stalled irrigation dams have also been completed.
Overall, the Prime Minister said all key indicators point to continued strong performance in the agricultural sector, with growth projected at 7.7 percent during the current Ethiopian fiscal year.
Industry
Turning to the industrial sector, the Prime Minister emphasized that industry is another major pillar of Ethiopia’s economic diversification strategy.
He recalled that before the reform period, the country’s industries were operating at less than 47 percent of their production capacity, with limitations in energy supply, access to finance, land availability, and other factors constraining productivity.
Today, however, industrial capacity utilization has increased to 67 percent, representing an improvement of more than 40 percent. Reaching this level, he said, reflects substantial progress in revitalizing the sector.
The Prime Minister noted that the government has also made significant investments in industrial infrastructure. Since the reform, not less than ten industrial parks have been developed, in addition to the existing Kombolcha, Mekelle, and Hawassa industrial parks. The government has also opened the parks to private domestic and foreign investors, with private investment now accounting for more than 80 percent of participation.
Mining and Manufacturing
The Prime Minister stated that the mining sector, another key pillar of the economy, recorded 24 percent growth during the current fiscal year, while the manufacturing sector expanded by 20.3 percent. He added that the commencement of operations at the Lemi National Cement Factory, together with expanded production at existing cement plants, has increased cement output by 16 percent. Energy utilization within the industrial sector has also grown by 23 percent.
According to the Prime Minister, these achievements demonstrate that the government’s reforms and sustained policy measures over recent years have produced tangible results across Ethiopia’s industrial sector.
Overall, the industrial sector is projected to register 12.7 percent growth during the current Ethiopian fiscal year.
By Leta Teresa
