Addis Ababa, June 9, 2025 (FMC) – The Ministry of Finance has announced significant strides in the quality and pace of public project execution, attributing these gains to the government’s ongoing macroeconomic reform agenda.
In a briefing on the status of key reforms and recent economic developments, Finance Minister Ahmed Shide highlighted notable improvements over the past seven years in both the implementation speed and quality of government-led projects.
As a prominent example, he cited the construction of more than 22,000 kilometers of roads currently underway, underscoring the government’s unwavering commitment to infrastructure development. He also pointed to progress in irrigation initiatives, with several projects nearing completion and already showing promising results. Similarly, tourism destination development projects are being implemented on schedule and to a high standard, with many sites now operational.
Minister Ahmed credited Prime Minister Abiy Ahmed’s leadership for driving the successful execution of these initiatives.
In the social sector, he described the performance of education and health projects as outstanding, noting that many have already yielded tangible benefits and are meeting public service delivery targets.
“The past seven years have brought a clear acceleration in project execution across multiple sectors,” he said. “This reflects the broader success of our comprehensive economic reform program.”
On the macroeconomic front, the Minister reported that the shift to a market-based foreign exchange rate system has eased several policy-related pressures. He also highlighted a sharp decline in smuggling, especially in the gold sector, where legalized domestic transactions have led to increased gold exports and a successful transition of mineral trade into the formal economy.
Ahmed also noted Ethiopia’s growing regional integration, particularly in infrastructure and energy connectivity with neighboring countries. These efforts, he said, are integral to Ethiopia’s regional cooperation strategy and are expected to further intensify.
Addressing fiscal matters, the Minister outlined the government’s draft budget for the 2018 Ethiopian fiscal year, emphasizing that it was developed based on macroeconomic projections, anticipated revenue streams, and national expenditure priorities.
“This budget is crucial to sustaining ongoing development efforts, preserving essential social subsidies, and maintaining macroeconomic stability,” he stated. “We are committed to refraining from direct borrowing from the National Bank in the upcoming fiscal year, reflecting our resolve to uphold prudent economic management.”
The draft budget aligns with the Comprehensive Macroeconomic and Fiscal Framework, which is designed to advance Ethiopia’s development objectives while safeguarding public service continuity and infrastructure expansion, according to local news agency ENA’s report.
In conclusion, Minister Ahmed affirmed that the government’s macroeconomic reform agenda is producing strong results across all key performance indicators, contributing to sustained economic growth and improved public service delivery.