Council of Ministers passes decisions on key economic, social, and regulatory bills
Addis Ababa, May 29, 2025 (FMC) – Ethiopia’s Council of Ministers, in its 46th regular session held today, deliberated on and passed key decisions on five major draft bills covering economic management, financial agreements, labor regulation, overseas employment, and plant protection.
Convened by Prime Minister Abiy Ahmed, the Council first reviewed the 2024/25–2028/29 (2018–2022 E.C.) Medium-Term Macroeconomic and Fiscal Framework, a document designed to guide budget preparation for the upcoming fiscal year.
The framework aims to support the government’s efforts to expand the revenue base, meet expenditure demands, and maintain macroeconomic stability.
Following extensive discussions, the Council unanimously approved the framework for immediate implementation.
The ministerial cabinet then examined two international financing agreements:
- A US$49.55 million concessional loan from the Arab Bank for Economic Development in Africa (BADEA) to co-finance the Productivity Enhancement Support for Integrated Agro-Industrial Parks and Youth Employment (PESAPYE) project. The project, already supported by the African Development Bank and the Ethiopian government, targets four Integrated Agro-Industrial Parks. The loan carries a low interest rate, a five-year grace period, and a 20-year repayment term.
- A SDR 45.1 million loan (approximately USD 61.2 million) from the International Development Association (IDA) to support the implementation of Innovative Systems to Promote Integrated, Resilient, and Enhanced Responses to Women and Girls’ Health (INSPIRER) project. The loan is interest-free but includes a 0.75% service charge, with a six-year grace period and a 38-year repayment period, the Office of the Prime Minister of Ethiopia said.
Following deliberations, the Council unanimously agreed to forward both financing agreements to the House of People’s Representatives for further review and final ratification, affirming that both align with Ethiopia’s debt management strategy.
The Council also considered a draft regulation to determine fees for services rendered by the country’s Ministry of Labor and Skills (MoLS) on overseas employment. It has been learned that the regulation is intended to set fees in a way that reflects clients’ financial capacities, enabling the Ministry to recover its service costs and increase internal revenues.
Accordingly, the Council unanimously decided that the regulation will come into force upon publication in the Federal Negarit Gazette.
In a related agenda item, the Council discussed a draft Proclamation on Ethiopian Overseas Employment, aimed at sustainably safeguarding the rights, security, and dignity of Ethiopian citizens working abroad, while also protecting the country’s interests in the sector. The Council unanimously agreed to forward the draft proclamation to the House of People’s Representatives for further deliberation and final endorsement.
Finally, the Council examined a draft Proclamation on Plant Protection and Quarantine (PPQ). The bill seeks to establish a pest surveillance and early warning system using modern technology, regulate the import and export of plants and related materials in accordance with the International Plant Protection Convention, and prevent the entry and spread of controllable pests from abroad.
After extensive deliberations, the Council unanimously resolved to submit the draft proclamation to the House of People’s Representatives for further consideration and final approval.