Ethiopian Economy by 2030

 

Ethiopian Economy by 2030

 

 1. introduction

The development plan, which replaced the Growth and Transformation Plan, will serve Ethiopia as a Pathway to Prosperity for the coming 10 years starting from the current 2020/21 to 2029/30 fiscal year. Fitsum said the plan touches all aspects of the development of Ethiopia and its citizens.

2. Ethiopian 10 Years Development Plan

Ethiopia has a traditional economic system in which the allocation of available resources is made on the basis of primitive methods, and many citizens engage in subsistence agriculture. Ethiopia is a member of the Common Market for Eastern and Southern Africa

 6 Objectives 

1.      1. Accelerating the country’s “path to prosperity through a private sector-led pragmatic market  economy”

1.      2. maintaining macroeconomic stability and ensuring sustainable job opportunities;

2.      3. ensuring structural transformation through productivity and competitiveness;

3.      4. ensuring the quality and universal accessibility of social services and infrastructure.

4.      5. creating competitive, independent, and quality public service system;

5.     6.  building just and inclusive institutions that would ensure peaceful society”

 

10 strategic pillars

1.Ensuring quality economic growth

The economic growth should ensure: 

 Participation of all citizens and equitable utilization of the growth proceeds ü

 Improved standard of living of every citizen ü

 Reduced poverty in all indicators ü

 Reduced inflation and unemployment

• The economic growth should lead to increased aggregate supply

 • Focus on modern agriculture, manufacturing and mining 

• Emphasis on exploiting the sources of growth through structural change 

2. Raising production and productivity 

Increasing export revenues and substituting imports by reducing production costs 

• Availing quality and massive infrastructure

 Linking infrastructural development with development corridors Ø

• Producing required human resources with quality 

• Producing enough and quality human resources 

• Prioritizing innovative production systems 

• Linking incentives with export revenue and job creation performances 

• Modernizing and enhancing the logistic system

 • Creating technological competences needed for long-term growth

3. Institutional Transformation 

• Build democratic and judicial institutions that ensure elite bargain, national consensus, common vision and government legitimacy

 • Build private sector and competition friendly bureaucracy

 • Coordinate with parents, the society and teachers to make educational institutions centers of excellence and virtuous citizens 

• Coordinate with parents as well as social and religious leaders to encourage religious institutions and their teachings contribute towards poverty reduction efforts

 • Prepare policies, strategies and legal frameworks for achieving prosperity 

• Increased focus on innovation and research 

• Creating strong social security system 

4. Private sector's leadership in the economy

 • Create conducive investment climate and incentivize domestic investors in key sectors

 • Build strong and market-led public-private partnerships in order to ensure the establishment of inclusive and pragmatic market economy 

• Enhance access and quality of infrastructure to attract quality foreign direct investment

 • Identify new sources of growth, empower and stimulate the private sector, and supplement the private sector in strategic areas

 • Emphasis for public-private partnership on problem solving innovations and research activities 

5. Equitable participation of women and children

• Ensure gender equity in economic and social sectors  

 Participation of women at all levels of education

 Asset ownership of women 

• Ensure fair participation of women and youth in leadership and decision making positions  

• Create awareness among citizens about the role of women and youth in the country’s overall development

6. Climate resilient green economy  

• Increase basin development efforts to fight land degradation and to reduce pollutions  

• Improve productivity and reduce GHG emissions 

 • Increase forest protection and development 

• Increase production of electricity from renewable sources for domestic use and for export 

• Focus on modern and energy saving technologies 

6 priority focus areas

1. Free agriculture from rain dependence

2. Agricultural mechanization services

3. Contract farming, cluster approach and

land consolidation

4. Livestock, animal feed and animal health

5. Horticulture (irrigation and urban farming)

6. Private sector participation

7. Institutional implementation capacity

8. Climate resilient sustainable agricultural

development

ICT role

If we take service delivery as a critical component of good governance, it is evident that ICTs have played an important role in promoting good governance in Ethiopia—most notably, in improving accessibility of education and health services.

3. Digital Ethiopia 2025

Introduction

Traditional development windows may be closing, but new, technology-driven pathways

are opening for countries that are proactive and able to adapt to change.

The Fourth Industrial Revolution {41 R) has started, technological changes are fundamentally altering the

way people live, communicate, produce, work, and trade. While historically, manufacturing has been a

major development driver1, labour-substitution effect of automation may be closing the window for

developing economies to leverage manufacturing for job creation and broader development2

Digital transformation is the journey from an analogue society where government, business, and

social interactions take place in person, to a fully integrated inclusive digital economy where transactions

are made faster, cheaper, and more secure using technology and where most of the interaction takes

Place online. The 'digital economy' refers to economic activity that utilizes the enhanced

interconnectivity of networks and the interoperability of digital platforms.

Digitally Enabled Pathways for Prosperity for Ethiopia (four of them)

Countries that have a Digital Transformation Strategy have selected a set of prioritized pathways that are

most applicable and optimal to take along their Digital Transformation journey. Based on current

Economic drivers (i.e. Agriculture and Manufacturing) and the national vision Ethiopia has embarked on

(i.e. jobs creation, foreign exchange earnings and inclusive prosperity), four pathways were selected to

Analyze opportunities and frame Ethiopia's digital journey.

Where Ethiopia is

.Demand: as lives and work continually move deeper into the digital realm, the global need for

digital services steadily grows. Online, new and old services can be provided via the internet and

Conducted from anywhere in the world. Services such as; transcription, writing and editing,

Translation, web design, virtual assistance, image annotation, or social media management.

• Supply: income disparities between Ethiopia and a typical OECD country are still around SO-fold.

Also, demographic trends and small domestic economies mean that many African countries'

formal white-collar economies cannot absorb all university graduates. This means that Ethiopian

university graduates are increasingly open for alternative types of income generation.

• Intermediation between demand and supply: as the internet becomes faster and more

reliable, it connects the near endless supply of young, fairly well-educated and extremely price

competitive Ethiopians with companies and individuals in more affluent countries, who are

looking to outsource work that can be done from afar. This creates a unique opportunity for

Trade in lab our, since, in cyberspace, given a fast and stable Internet connection, everyone in the

world can b e everyone else's virtual desk neighbor.

What needs to be done

The digital transformation strategy incorporates an action-oriented lens to help build

momentum for the broader digital transformation agenda. Incorporating the action orientated

lens includes identification of targeted initiatives that Ethiopia can start implementing

immediately to demonstrate impact in the short term. Such a lens can help bring to life this broader

umbrella strategy by building the pre-requisites (e.g. improved connectivity, digital payments) for

transformative change and enabling Government to empower private sector players. At the same time,

demonstrating impact across key sectors or priority areas can serve as a key lever in building buy-in

across various government, private and non-government actors and help bring them on-board. Such

successes can also help build greater awareness and nationwide momentum for the broader digital

transformation agenda. Finally, enabling and managing digital transformation is a complex endeavor.

Implementing targeted projects in the short term can help Ethiopia build capacity by gaining the

necessary experience and institutionalizing processes and systems to lead and manage this

transformation. Specific sector strategies and action plans will need to be derived from this national

umbrella strategy in order to realize all the potential benefits and for actors to have the necessary level o f

detail for their roles. This collectively can help ensure that this national strategy delivers on its long-term