Ethiopia eyes export-led growth, industrial substitution to drive development in 2025/26 FY

Addis Ababa, July 17, 2025 (FMC) – The Government of Ethiopia has prioritized increasing exports, substituting imports, and ensuring food security as central pillars of its national development agenda for the 2018 Ethiopian fiscal year (2025/26).

Minister of Planning and Development Fitsum Assefa (PhD), in her presentation of the government’s development priorities, said Ethiopia will focus on improving the balance of payments and national productivity through targeted support for selected agricultural and industrial commodities.

The plan includes expanding access to inputs for major agricultural products—such as wheat, rice, sesame, coffee, khat, avocados, bananas, and mangoes—and scaling up irrigation development. These interventions are expected to enhance both domestic supply and export potential.

In the manufacturing sector, the government plans to strengthen the supply chain of critical industries including textiles, leather and footwear, food and beverage, metal and wood, pharmaceuticals, agro-processing, and chemicals. Efforts to replace imported goods with domestic alternatives will be reinforced through policies that promote quality and competitiveness.

The government will also work to boost foreign currency earnings by improving the quantity, quality, and market linkages of its export products. Greater coordination among public institutions, logistical efficiency, and improved access to market information are key aspects of the strategy.

Additionally, the plan underscores the importance of securing food and nutrition by focusing on self-sufficiency in essential commodities. A coordinated approach involving government institutions and development partners will ensure sustainable support for food security, resilience, and agricultural productivity.