The Growth and Transformation Plan builds on recent economic developments including the average 10-11% economic growth rate over the last eight years. Inflation has fluctuated but for most of the last decade it was in single figures and the government is committed to controlling it. The country has currently achieved macro-economic stability under economic policies emphasizing development of the private sector. There is a significant absence of corruption and a safe and secure working environment. Ethiopia is also on track to achieve all of the Millennium Development Goals by 2015. In March 2010 it enacted an Assets and Property Registration Law which requires that government officials and their relatives register their assets and properties. Aimed at reducing the prevalence of corruption, this will provide considerable support for the work of the Federal Anti-Corruption Commission
Ethiopia, following the example of Asian industrialization, is convinced of the role that the developmental state and a ruling party can provide to direct development, to stimulate and sustain growth. The government's strategy is centrally directed towards economic growth and development, as a managed transition from a pre-capitalist economy to a capitalist one. The rise of an entrepreneurial middle class is important to boost the economy and to secure the eventual transition to full-fledged democracy. The economy has opened up significantly since 1991 with land retained in public hands to ensure the allocation of resources fairly and efficiently. The state retains a strong presence in strategic sectors in the supply of key inputs and key services to manage the market. It is now committed to achieving zero carbon emissions and to becoming carbon emission-free state by 2025.
In the last decade the government has given much increased encouragement to Foreign Direct Investment in various sectors of the economy while domestic investment has begun to take off particularly in commercial agriculture. The effect on the private sector has been marked. In the last few years, Foreign Direct Investment has been rising at a rate of 25% a year, with increasing amounts from Saudi Arabia, India, China, Sudan and Turkey in particular. The partnerships between Ethiopia and China, Japan, India and Turkey have been steadily expanding. Of these, China has been the most important providing financing and construction of infrastructure such as roads, power and communications as the levels of trade and investment demonstrate. China is currently the leading export destination for Ethiopia as well as the leading source of imports for Ethiopia. Total trade has risen from US$ 100 million in 2002 to over US$ 700 million in 2006 and over US$ 1 billion in 2009/10. Chinese companies are currently involved in most of the power generation projects, and in major projects in telecommunication and road sectors. Chinese firms provide competitive bidding and self-financing options and the majority are concentrated in the manufacturing sector. A Chinese investment group has begun construction of a Chinese industrial zone, outside Addis Ababa. The projects include textiles and garments, shoe, leather and leather products, food, electrical materials and steel and when complete will provide 20,000 jobs. Turkey is also among the leading five investment injecting countries in Ethiopia. The total trade turnover between Ethiopia and Turkey reached well over USD 550 million in 2013 from USD 110 million in 2004. The government sees these new partnerships including the provision of optimal investment, trade and industrial policies as leading to a win-win situation for both Ethiopia and its new friends.
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