Addis Ababa, October 28, 2025 (FMC) — Prime Minister Abiy Ahmed (PhD) reported that Ethiopia achieved record economic growth, major reform milestones, and transformative national projects in the 2017 fiscal year (2024/25), reflecting the impact of the Homegrown Economic Reform (HGER) agenda.
He made the remarks while responding to questions from members of the House of People’s Representatives during the second regular session of the current fiscal year, highlighting government performance, national priorities, and Ethiopia’s positioning on international and domestic matters.
Expounding on economic matters on the occasion, the Prime Minister said the HGER policy, aimed at transforming Ethiopia from an agriculture-led economy into a diversified, multisectoral economy, had already delivered substantial results.
He emphasized that the reform depends on close cooperation among the government, citizens, private sector, and other stakeholders, through people-to-people, government-to-business, and government-to-people engagement.
Highlighting the Green Legacy Initiative, Abiy reported that more than 48 billion seedlings have been planted since 2019, with over 25 million Ethiopians participating annually, demonstrating strong unity between the government and citizens in advancing national development goals.
On sectoral performance, the Prime Minister noted that agriculture grew by 7.3 percent, contributing 2.3 percent to GDP. Rice production surged from 16 million to 63 million quintals, wheat output rose from 48 million to 280 million quintals, and coffee production reached 11.5 million quintals, of which 2.5 million quintals were exported last fiscal year.
Industry expanded by 13 percent, contributing 3.7 percent to GDP, driven mainly by manufacturing and mining, making it the sector with the highest growth contribution. Abiy said these achievements, together with reforms in investment, technology adoption, and market competitiveness, set the foundation for double-digit growth in the current fiscal year.
The Prime Minister also reported that for the first time, exports of goods (USD 8.3 billion) exceeded exports of services (USD 8.1 billion), remittances generated USD 7.4 billion, and import substitution saved billions of dollars in foreign currency.
Ethiopia’s reserves have grown tenfold, and the country has avoided commercial loans for seven consecutive years, bolstering financial stability and attracting foreign direct investment.
Addressing inflation, Abiy explained that the government allocated 440 billion birr to stabilization, including 160 billion birr for wage subsidies and 140 billion birr for fuel subsidies, reducing inflation to 11.7 percent in October, the lowest since the reform period began, with continued efforts to reach single-digit levels.
Abiy also highlighted progress on strategic mega projects, including the Ogaden LNG Project Phase 2 in Calub, which will add an annual 1.33 billion liters to national gas production, and the urea fertilizer and oil refinery projects in Gode, with capacities of 3 million and 3.5 million tons per year, respectively.
He noted Ethiopia’s 21 trillion cubic feet of confirmed gas reserves as a critical foundation for industrial and energy development.
The Prime Minister underscored the transformative impact of the USD 10 billion Ethiopian Airlines mega airport in Bishoftu, which will handle over 100 million passengers annually, strengthening Ethiopia’s position as one of Africa’s leading aviation hubs and connecting the continent globally.
Premier Abiy asserted that the reforms and mega projects are game changers for Ethiopia’s economic growth, setting the stage for sustainable development, enhanced social welfare, and long-term national progress.