Addis Ababa, June 23, 2025 (FMC) — Ethiopia has nearly doubled its health sector budget to 130 billion birr and made substantial investments in healthcare infrastructure and workforce development, Prime Minister Abiy Ahmed (PhD) disclosed during a weekend dialogue with health professionals.
This significant financial commitment is part of the government’s long-term vision to create an accessible, modern, and efficient healthcare system that serves the entire population.
In recent years, more than 6,000 health facilities have been built or renovated, bringing the total number of government-run centers to 22,000. While some facilities still require quality improvements, this expansion lays a strong foundation for improving health service delivery.
The Prime Minister highlighted that over 350 new health posts, more than 100 health centers, 190 hospitals, and 11 specialized hospitals have been constructed, while extensive renovation and expansion projects have improved approximately 1,800 existing facilities. About 15 laboratories have been established across regions, and over 1,000 health institutions previously lacking water and solar power services have now been equipped accordingly.
Human resource development has been a cornerstone of progress, with the number of health professionals in government facilities more than doubling from 219,000 to over 520,000 in recent years. The private sector also saw significant growth, with staffing rising from 30,000 to about 120,000 health workers, and private health facilities increasing from 15,000 to over 28,000.
Prime Minister Abiy also pointed to advances in domestic pharmaceutical production, which now supplies 41% of the country’s needs, up from 8% before the reforms. The number of pharmaceutical and medical device manufacturers has grown to 25, supporting efforts to reduce dependency on imports.
Oxygen production capacity, critical during the COVID-19 pandemic, has expanded from only three facilities to 58, while 28 laboratories have been built to improve epidemic detection and response capabilities. The establishment of the African CDC headquarters in Ethiopia has further strengthened preparedness for future outbreaks.
The Prime Minister acknowledged ongoing challenges, including frequent equipment breakdowns and gaps in government health facilities, which often force patients to seek care in private centers. He called on health professionals to play an active role in resolving these issues, assuring that government intervention and support will continue.
Furthermore, he emphasized the critical importance of digitizing the medical sector to enhance service delivery, enable data-driven decision-making, and streamline health system management in line with modern global standards.
Despite the impressive investments and growth, Prime Minister Abiy stressed that the current budget remains insufficient to fully meet rising demand but affirmed the government’s commitment to continuous resource allocation and sector development.