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Ministry of Finance and Economic Development (2010) Growth and Transformation Plan I.pdf
Ministry of Finance and Economic Development (2010) Growth and Transformation Plan I
Federal Democratic Republic of Ethiopia
Growth and Tran sformation Plan
20 10/11 -20 14/ 15
Volume I: Main Text
Ministry or Finance and
Economic Development
November20 10
Tabl e of Contents
Page No.
Ta ble of Co nte nts
List of Tab les
List of Figures
List of Acronyms
FOREWORD
IV
V
vi
VII
PAG EC HAPTERS & SECT 10~S
INTRO DUCTI ON _
CHAPTER I. ACHIEVEMENTS AND CHALLENGES UNDER PASDEP 4
1. 1. Mac roeconomic Performa nce 4
1.2. Performance of Eco nomic and Soc ial Sectors 9
1.2. 1.
1.2.2.
1.2.3.
1.1.4.
1.2.5.
1.2.6.
1.2.7.
1.2.8.
1.2.9.
1.2. 10.
1.2. 11.
Agr icu lture a nd Rura l Devel opment 9
Trade a nd Industry Devel op men t 10
Mining 13
Road Deve lopm ent 13
Rail Netwo rk. Dry Port and Transpo rt 13
Tel ecommunications 14
Energy 14
Water and Irrigation Devel opment 15
Co nstruction and Urban Devel op men t 15
Education 16
Hea lth 17
1.3. Cross C utting Sectors 17
104. Good Gove rnan ce and Democratization 19
1.5. Cha llenges and Good Pract ice in Implem enting the PASD EP 19
1.5. 1. Major Cha llenges Encountered 19
1.5.2 . Good Pract ices Learned 20
CHAPTER 2. BASIS, O BJECTIVES AND ST RAT EG IC PI LLARS OF TH E GTP 21
2. 1. Basis of G rowth and Transformation Plan 2 1
2.2 . Objecti ves o f the Plan 22
2.3.6 Strengthe ning good gove rnance and capacity building 26
2.3.7 Empowe ring women and yo uth and ensuring the ir benefits 27
CHAPT ER 3. MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRAN SFORMATION PLAN 28
3 . 1. Mac roeco nom ic Objectives 28
3.2. Mac roeco nomic Pol ic ies and Goa ls 28
3 .2. 1. Econ omic Growth, Sav ings and Investment 28
3 .2.2. Prospects for Growth, Well being and Po vert y 3 1
3 .2.3. Fisca l policy 32
3 .2.4. Mon etar y Policy, Exte rna l Sector and Financ ial Syste m 33
3.3 . Se lected Macroecon omic a nd Sectoral Targets 34
CHAPT ER 4. FINANCING THE PLAN 38
4. 1. Government Revenue 38
4.2. Go vernment Expenditure 39
4.3. Financi ng 40
4.4 . OfT Budget Financi ng of Infrastructu re A nd Industrial Program s 4 1
4.5. the ro le of the Private Sector and the public .44
CHAPT ER 5. ECONOMIC SECTORS I>EVELOPM ENT PLAN 45
5. 1. Agriculture and Rural Deve lo pment 45
5.2. Industry 56
5.3. Trade 63
5.4. Mining 64
5.5 Infrastructu re Develo pment. 68
5 .5. 1 Roads 68
5 .5.2 Railway Tra nsport 70
5 .5.3 Energy 7 1
5.5.4 Teleco mmuni cation 75
5.5.5 Potable Water Supply and Irrigation Devel opm ent 77
5.5.6 Tran sport Serv ice s 78
5.5.7 Mar itime Transport 80
5.5.8 Air Tra nsportation Services 8 1
5 .5.9 Urba n and Co nstruction Dev e1op ment.. 82
CHAPT ER 6. SOC IAL SECTOR DEVELOPMENT PLAN 86
7.3 Justice Sector 101
7.4 Democracy and Good Governance 104
704.1 Strengthen ing De mocratic System 104
7.4.2 Good Gove rnance 106
7.5 Med ia Broadcast a nd Communication 108
7.5. 1 Media Broadcast. 108
7.5.2 Government Communication 108
CHAPT ER 8. C ROSS CUT TI NG SECTORS 110
8. 1 Gende r a nd Children' sAffa irs 110
8.2 Youth and Sports Development 111
8.3 HIV/AIDS Prevention a nd ControL 112
8.4 SOCIAL Welfare 113
8.5 La bour Affa irs 115
8.6 Population a nd Development 116
8.7 C ulture and Tour ism 117
8.8 Scie nce a nd Techno logy Development.. 118
8.9 Environment and Climate Change 119
CHAPT ER 9. OPPORTUNITIES, RISKS AND CHALLENGES IN
IMPLEMENTING THE GTP 122
9. 1 Opport unities 122
9.2 Risks 123
9.3 Managing Risks 123
CHAPT ER 10. MON ITOR ING AN)) EVALUA TI ON OF T HE GT P 124
10.1 . Background 124
10.2 Monitoring the Overa ll Plan Performance by MoFED 124
10.3 T HE Role of Federa l Executive Bodies 125
l OACEN SUSES and Surveys for the M& E System 125
10.5 Geo-lnformation 127
Table 1.
Table 2.
Table 3.
Table 4.
Tab le 5.
Tab le 6.
Table 7.
Table 8.
Tab le9 .
Tab le 10.
Tab le II.
Tab le 12.
Tab le 13.
Tab le 14.
Tab le 15.
Tab le 16.
Tab le 17.
Tab le 18.
Tab le 19.
Tab le 20.
Tab le 2 1.
Tab le 22 .
Tab le 23.
Tab le 24.
Ta ble 25 .
Tab le 26.
Ta ble 27 .
Ta ble 28.
List of Ta bles
Titl e
Growth in Gross Domestic Product a nd Main Sectors Share as Percent of GOP 4
Percentage Share of Aggregate Consumption & Savings to GDP @CMP 6
Percentage Share of Reven ue, Expe nditure and Deficit to GDP @CM P 7
Import and Export trade share of GOP (%) 8
Real GOP Proj ection Annual Growth Rate (%) 28
Proj ected Trends in the Structure of GOP by Industria l origin (% share) 29
Demand Side GOP as Ratio to GOP @ Current Market Prices (%) 29
Proj ected Tre nds inthe Structure of GOP growth by Industria l or igin (%) 30
Proj ected Trends in the Structure of GOP by Industrial origin (% share) 30
Proj ected Tre nds in Structure of GOP from the Demand Side High Case
Scenario (% share in GOP) 3 1
Fisca l Projection As a Percentage of G OP at @CMP (Ba se case Scenario) 33
Selected GT P Ta rgets 34
Proj ected GTP Re ven ue Req uirements Under Base Case Scenario (in mIn
ETB) 39
Proj ected government Expenditures, Base Case Scenarios (m In ETB) 39
Proj ected Budget Gap During GT P, Base Case Sce nario (in mIn ET B) .40
Resource need by Implementing Sectors, Budget Deficit and Financing (in mIn
ETB) .4 1
Off Budget Fina ncing Requ irement of Infrastructure and Industr ia l
Development Program s 42
Off Budget Fore ign C urrency Requirement of Infrastructure & Indu strial
Develo pment Programs 43
GT P Targets for Agriculture and Rural Development 47
GT P Targets for Micro and Sma ll-Scale Enterprises 58
GT P Targets for Mediu m and Large Scale Manufacturing Industries 59
GT P Targets for Chemica l Industries 60
GT P Targets for Pharmaceuticals Industry 60
GT P Targets for Agro Processing Industry 6 1
GT P Targets for Public Enterprises Ma nagement and Privatizat ion 6 1
GT P Targets for the Mining Sector 65
GT P Targets for Mineral and Petrole um Investme nt Expansion 66
GT P Targets for Artisanal Mining and Marketing Promotion 66
Tab le 3 5. GT P Tar gets for the Mar itime Transport Sub Sector 80
Tab le 36 . GT P Tar gets for A ir Transpo rtation Service s Sub Sector 82
Tab le 3 7. GT P Target s fo r Co nstruction Devel opment Sub Sector 84
Tab le 3 8. GT P Target s for Urban Deve lopment Sub Sec tor 84
Tab le 39. GT P Tar gets for Ge neral Ed ucation 89
Tab le 40 . GT P Tar gets for Tec hnica l and Vocat iona l Ed ucation and Tra ining 89
Tab le 4 1. GT P Target s for Higher Ed ucation 89
Ta ble 42. GT P Target s for Hea lth 94
Ta ble 43. GT P Targets for Gender Development and Childre n' s A ffairs I II
Tab le 44. GT P Target s for Yo uth and Sports Develop ment... 112
Tab le 45 . GT P Target s for HIV/AID S Pre ven tion and Co ntrol 113
Ta ble 46 . GT P Targets for Lab our Affa irs 115
Table 47. GT P Targets for Popu lation and Development 116
Tab le 4 8. GT P Target s for Culture and Tou rism 117
Tab le 49 . GT P Target s for Sc ience a nd Technology Development 119
Tab le 50. GT P Targets for Environment and Climate Change 121
Table 5 1. Surveys to be Car ried out by C SA During the Plan Per iod 125
Figu re I.
Figu re 2.
Figure 3.
Figu re 4.
Figu re 5.
List of Figu res
T itl e
G DP Growth by Economic Sector (%) 5
Percentage share o fG DP by Economic Sector 5
Percentage Share of Agg rega te Co nsumption a nd Savings to G DP @C MP 6
Percentage Share of Reven ue. Expenditure and Deficit to G DP @CM P 7
Expo rt and Impo rt Growt h (%) 8
A nn ua l Ca lenda r
The Greg orian ca le ndar is used throughou t this docume nt. The Ethiopia n ca lendar year
2003 starts on I I Septem ber of the Grego rian year 20 IO. In go vernme nt documents the
Et hio pia n Fisca l Year co mmences l " lI amle (G regorian calend ar 8 July) to 30 th Se ne
(G regorian cale ndar 7 July). T he Eth iop ian Fiscal Yea rs fo r the GT P ar e eq uiva le nt to the
G regor ian cale ndar as follows : Gregorian yea rs 8 July to 7 July 20 10/20II to 2014/ 15 are
equivalent to Ethiopi an Fisca l Yea rs 2003-2007.
List of Acrony ms
AIDS Acq uired Imm une Defi ciency rcr Information and communication technology
Syndro me
IW I{ Businessproces srecng inccr ing [T Information Technology
BSC Balanced sco re card M&E Mon ito ring and eva luati o n
eMP C urrent market prices M DG(s) M il lennium Development Goal( s)
CPR Co ntraceptive prev alence rail' MoFEI) Ministry o f Finance and Eco nom ic
CSA Central Sta tistical Age ncy Development
eno Co m munity based orga nisati o ns NGO No n gover nmen tal orga nisation
ESDP Education Sector Development o/w O f whic h
Program I)ASDEI> Plan lor Accelerated and Sustained
H Il Ethio pian Birr Devel opme nt to End Pove rty
FAL Function al Ad ult Literacy PhD Doc tor o f Phil oso phy
FDI For e ign direct inve stme nt SDI'RP The Sustai nable Develo pment and Poverty
GEQ!P General Education Quality Reduction Program 2002/03 ·200 4105
Improvement Package Tn Tuberculosis
GDP Gross Dom estic Product TVET Tec hnical and Vocational Ed ucatio n and
Gl l' The G rowth and Tra nsforma tion Pla n Training
20 10/ 11 to 20 14/ 15 USD United Slates Do llar
IIEI Hig her Ed ucation Institutio ns WTO World Trade Organisation
IIIV Il uman im munod c fleicncy virus
IIRD lI uman resou rce develo pment
Units of Mea surem ent Used
bln
Gb/s
GW II
h,
h,
kg
Bin
Giga byte( s) persec ond
Giga watt ho ur
H ec tare (s)
Iiour
Kilogram ( s)
km
m
min
MSE(s)
qlh,
Qt
C u r re ncyRate s
Kilometre (s)
Metre
mln
Micro and small sca le enterpriser s)
Qu intals per ha
Q uintal (s)t
16.625R Ethio pian Birr (ETB) 1.00 United States Dolla r US D A s of Nove mber 30. 2010
Foreword
The main development agenda of the Ethiopian government is poverty eradication. All the
country's development policies and strategies are, therefore, geared towards this end.
Effective implementation of these policies and strateg ies in an integrated and
comprehensive manner at various levels of government administration is key for
eradicating poverty and dependence on food aid in a shorter period of time. There is a wide
national consensus on the priority agenda of eradicating poverty and the policies and
strategies pursued to address such a development priority.
The Ministry of Finance and Economic Development is responsib le for establishing a
system for the preparation and implementation of national development plans, and in
cooperation with the concerned organs, preparing the country' s economic and social
development plan as well as following up the implementation of the same when ratified.
The Ministry had accordingly coordinated the design and implementation of the
Sustainable Development and Poverty Reduction Program (SDPRP), which covered the
years 2002/03 - 2004/05) and A Plan for Accelerated and Sustained Development to End
Poverty (PASDEP), that ran from 2005/06 to 2009/10. During these plan periods
remarkable achievements of economic growth, social development and good governance
were registered. On the basis of the exper iences gained thus far and the national vision, the
Growth and Transformation Plan (GTP) has been prepared with clear objective s and
targets through wide public participation at both the federal and regional levels. The
Council of Ministers and the House of People' s Representative have adopted the GTP as
the national planning document of the country for the period 20 I0/ II - 20 14/15.
Implementation of the GTP requires huge resources and commitments. To this effect,
emphasis will be given to ensuring effective public participation in implementation and
monitoring of the plan, efficient and effective utilization of all available capac ities of the
public, the government and the private sector as well as better coordination and
cooperation with the private sector and development partners. In this connection special
emphas is will be given to encourage citizens to increase their savings and to strengthen the
overall level of domestic savings for productive investment in GTP's priority programs.
It is only when every citizen makes a concerted effort with commitment, and sense of
urgency to discharge his/her own responsibility, that the effective implementation of GTP
can be realized. This requires a fundamental change of thinking on the part of actors and
stakeholders, particularly citizens, professionals, investors and the leadership, with respect
to the implementation of the key directions envisaged in the GTP. In this regard,
preventing and controlling rent seeking attitude and behaviour, and nurturing
developmental initiatives are absolutely critica l to realize the MDGs by 20 15 and the
country's vision by 2020-2023 . Hence, we need to firmly stand in unison in this bold and
Introduction
Achieving broad-ba sed, accelerated and sustained econo mic growth so as to eradicate
poverty has been and is a key object ive of the Gove rnment of Ethiopia. The government
has designed, and is impleme nting, strateg ies, policies and plans to guide and manage the
ove rall devel opment of the country accordingly. The last five yea r development plan was
the Plan for Accelerate d and Sustained Development to End Poverty (PASDEP). PASDEP
had a medium term development perspective and aimed, at a minimum, at achiev ing the
Millennium Development Goal (MDG) targets. During the PASDEP implementation
per iod. high and sustained economic growth and signifi cant soc ial a nd huma n development
results we re rea lised. During the same period the economy grew on average at 11 % per
annum. By susta ining the current economic growth ove r the next fi ve year period. the
govern ment aims to achieve the MDG targets by 20 15, and its longer term vision of being
a midd le income country by 2020-2023.
The government has formulat ed the five year Growth and Transfonn ation Plan (GT P)
(20 10/1 1-20 14/15)to ca rry forward the importan t strategic directions pursued in the
PASDEP. The GT P envisages that, besides ma intaining a fast growing eco nomy, better
resu lts will be rea lised in a ll sectors.In prepar ing the GT P the performance of the previous
development plans, and the lessons learned du ring their implementation, were taken into
account, with in the context of the country's development vision. Development of the GTP
has be nefited from the many consultative meet ings held at the Federal . Regional and local
levels with government bodies, private sector organisations. higher education institutio ns,
professional. women' s and youth associations. rel igio us and civil society organisations.
opposition politica l parties and deve lopment partners. Many issues which are believed to
be important for ach ieving fundame ntal changes in economic growth, social development
and good governa nce and which will contribute to realising the object ives of the GT P are
raised and discussed in the consultations. These conce rns are now adequately addressed in
the GTP. Issues that were raised and which needed greater elaboration or more emphasis
were add ressed and a re a lso presented in depth at the sector and sub sector levels de scribed
in the GT P.
The Growth and T ransformation Plan' s main objectives, strategies and targets a re clearly
set out in the document. During the GT P period spec ial emphasis wi ll be given to
agricultural and rura l development. industry, infrastructure, socia l and human
development, good governance and democratizat ion. The GTP takes into account two
alternative econo mic growt h scenarios: a base case a nd a high case. T he base case scenario
assumes that the previou s five year's ave rage annual G DP growth rate wi ll be maintained.
The high case scenario assumes that the GDP and the Agricultural Value Added achieved
in 2009 / 10 w ill do uble by the end o f the GT P period. 2014 / 15.
Development programs that will be implemented in the GT P five year per iod will have a
strong focu s on improv ing the qua lity of public services provided. Thus special emphasis
is given to investments in infrastructure and in the social and human deve lopment sectors.
One of the distinguishing chara cteristics of the GTP preparation process from the previous
development plans preparatio n was that. a high level macro econo mic team was
esta blished with the responsibility of guiding the overall prepa ration process.
Implementing agencies from the federal up to the regional and local levels have
participated in the planning process throug h their functiona l linkages with their respective
federa l institutions. Wide and extensive consultations that are led by se nior government
officia ls were he ld with stakeholders and the public at large both at federa l and regiona l
levels. In addition. large media coverage was accorded to the draft GT P, which contributed
to ra ise the public aware ness and part icipation in the process.
During the plann ing process. strong commitments. and part icipation of the private sector.
developme nt partners. civil society organizations and the public at large are demo nstrated
at a ll levels. It has been demonstrated in the consultation forums and the media that there is
a strong national conse nsus and ent husiasm amo ng cit izens with regard to GT P and its role
in eradicating poverty once and for a ll.
The plan preparation and approval process has been conducted based on a pre determined
time schedule, which is summarised as follows.
Scptcmbcr-Octobcr /2009 : Based on the initial directions from the government. the plan
preparation Generic Guidel ine, incorporating general directions. ma in object ives. eco nomic
growth targets a nd indicato rs, was prepared by the Ministry of Finance and Economic
Development and circulated to Federal implementing agenc ies.
reovcmber-neccmbcr/zues : Briefings o n the initial ideas and the Generic Guideline were
given to se nior gove rnme nt officia ls and directors so that a common understanding was
created as to the conte nt and preparation processes of GT P. A circ ular ca lling for the
preparation of the GTP was then distributed to a ll concerned federal and regiona l
govern ment institutions.
February· j\'1a)'/201O: Based on the Ge neric Guide line, preliminary draft plans of key
sectors (Agriculture and Rural develop ment Industrial Development, Educatio n, Hea lth,
and Good Gove rnance & Capa city Build ing etc.) were submitted to MoFED.
June 2010: Based on the macroeconom ic framework and preliminary draft sector plans
submitted to MoFE D. the draft con solidated GTP was prepared and submitted to the high
level Macro Economic Team. The Macro Economic Team in turn reviewed and provided
feedback on the draft con sol idated GTP and its const ituent key sector plans.
July 2010 : The first draft of the GT P was prepared as per the comments and directions
provided by the Macro Economic Team. Discussion paper focusing on major achievements
of PASDEP, o bj ectives.strategic pillars and main targets of the GTP was prepared and
distributed to the pertinent regional and federal bodies who participated in the consultation
forums. At the same time, a preliminary draft of English version of the GTP document was
prepared.
society orga n izat ions. development partners and opp o sit ion poli t ica l parties. Many u sefu l
co m ments and suggestio ns were rece ived during th e co nsultations. A ll con sultat ion s were
led by se nior go vernment o fficia ls both at the regi onal and federa l level s w hile the final
feder al leve l co nsu ltations were headed by the Prime Minister.
October 2010 : Further re finements o n the dra ft GT P document and checking for its
internal co nsiste ncy we re co mpleted by inco rporating the co mme nts a nd feedba cks from
the reg iona l and fede ral co nsultations.
Novem be r 2010 : The GTP document was then subm itted to the Co unc il o f Ministers.
whi ch then e ndorsed it toget her w ith com ments and d irect io ns to be included in the final
plan . A fter a five day de bate by the Ho use of Peop le' s Rep re sentatives. the document was
endorsed wit h moti on o f tha nks a s the Offi c ial Natio na l Plan of the co untry for 20 10/11 to
20 14/ 15.
The GT P is presented in ten chapters. Chapter I present s the progre ss and ach ievem ent s of
th e PASDEP. Chapter 2 co nta ins the objectives and strateg ies o f the five-yea r Growth and
Tran sformat ion Plan (20 10/ 11-20 14/ 15).Cha pte r 3 provid es the macroeconomic
framew ork fo r the GTP and C hapte r 4 de scr ibes the costs of and financing for the GTP .
C hapte r 5 de sc ribes the strategic d irections. obj ecti ves and tar get s for the fo ur ma in
econom ic secto rs: agri cu lture and rural developm ent, industry and trad e, mining and
infra structure. C hapte r 6 describes t he strateg ic d irection s, obj ect ives and tar get s for the
two ma in soc ial sec tors: ed ucat ion a nd tra ining, and hea lth. Chapter 7 descr ibes strateg ic
directi ons, object ives a nd ta rgets for good governance and capac ity build ing. C hapt er 8
pre sents strategic di rections. obj ec tives a nd tar get s for nin e cross cutt ing sec to rs. Cha pter 9
describes the opp ortuniti es. risks and cha llenges in impleme nting the GT P. Chapte r 10
presents the mon itor ing a nd evaluation frame wo rk of the GTP .
CHAPTER I.
ACHIEVEMENTS AND CHALLENGES UNDER PASDEP
The deve lopme nt poli cies and strateg ies pursued dur ing the three yea r Susta inab le
Deve lop men t and Po vert y Reduction Program (S DPRP) (2002 /03 -2004/05 ). togethe r with
the visio n exp ressed in and ac hieve me nts rea lised by the SDPRP. were the fo undation fo r
the de sign of the PASD EP. The PAS DEP wa s impleme nted d uring the five year per iod
20 05/06 -2009/ 10. It was prepared based o n MOO target s an d the go vernme nt' s vision for
Ethio pia' s deve lopment. Its main obj ectives we re en surin g accelerated. susta ined and
broad based eco nom ic deve lopment as well a s preparing the ground for the fu ll
achieve ment o f Ethiop ia' s MOO targets by 20 15. To ach ieve these o bjectives the PASDEP
was bu ilt on eig ht st rateg ic pillars. These we re
1. Bui ldin g a ll-incl usive implemen tat ion ca pac ity,
2. A massive push to accel erate econ omic growt h.
3. Creat ing the balance betw een eco no mic development and populat ion growth.
4 . Un leas hing the pote ntials of Ethiop ia's wome n.
5. Stren gthe ning t he infrastruct ura l back bon eof t he co untry.
6 . Strengthe ning huma n reso urce devel opme nt.
7. Manag ing risk and vo latil ity. and
8. Creating e mployment o pportunities.
Based on the se strategic p illars. two a lternat ive eco nomic growth scenarios we re
co ns idered. In the base case scenario. it was co nside red that to achieve the MDG s a n
ave rage econo mic growt h rate of 7% per a nnum wa s necessary. For the high cas e scena rio.
which a imed beyond achieve me nt of MDG s ta rgets. a 10% annual ave rage econo mic
growt h tar get wa s set so as to lay the founda tion for the reali zation of the development
vision o f the co untry.
1.1. MACROE CONOMI C PERFORMA NCE
The Eth iopian eco nomy has shifted to a higher growth traj ecto ry since 200 3/04 . T his has
been susta ined. and during the last five yea rs. overall rea l GDP has grow n rapid ly at an
average of 11 % per annum (See Table 1. and Figu re 1. bel ow .). Agricult ure , Industry and
Ser vice s hav e registered an average annua l growth rate o f 8.4%. 10% and 14.6%.
respect ive ly.
Table t. Growth in Gros s Domestic Product and Main Sectors Sha r e as Percent of
GDP
Secto r Ave rage growt h tar get planed Aver age growt h ac hieved Percenta ge sha re of
(2005/06-2009/10) (2005/06-2009/10) Real G OP (2009110)
Base Case Ili gh Case
Table I above illustrates that. with the exce ption of the industrial sector. the over a ll and
sectoral performances achieved were we ll above the targets set in both the base case and
high case sce narios. This has bee n particu larly pronoun ced in the service sector. Although
the g rowth rate in the industrial sector is be low the plan ned target. the sector achieved a
signifi cant ave ragegrowt h rate.
Figure 1. GDP Growth by Economic Sector (0/0)
18
16
14
8
6
4
2
o
»>: - ...............--
....
_ A gu cl ll hi le and al l ied
a cuvrtr es
..... l lJ\h ls t l'y
- -- Se r....ce
- R eaI G D P
2 1 )( 1~10 6 200 610 7 2 1107/H H 200H / 0 9 2 H1l9l 10
Ye ill ·
The co ntr ibution (perce ntage share ) of eac h o f the three sectors (agriculture. industry a nd
service) to overall GO P at the end of the plan per iod was 41.6%. 12.9% and 45.5%.
respective ly (See Figure 2).
Figu re 2. Perce ntage sha re of GDP by Economic Sector
50
45 • •• • •• • • •
40 • • • • •• • • • •• • • • •
35 • • • • •• • • • •• • • • •
30 • • • • •• • • • •• • • • • •m • • • • •s 25 • • • • •• • • • • •• • • • • •" 20 • • • • •• • • • • •~ • • • • •15 • • • • •• • • • •• • • • •• • • • •
The planned targets we re 43.9%. 16.5% and 39.6% for agriculture. industry a nd services
respectively. The actual shares were not as planned. as services achieved a higher. and
industry a lower share o f GO P tha n planned. In term s of structural change the PASDEP
assumed that a decl ine in the agricultural sector's share of GO P would be taken up by the
ind ustria lsector. However, under performance of the industria l secto r was more tha n
compensated by increased growth in the service sector. indicating that the structura l shift
was not. as yet. in the desired d irection.
From the demand side, GOP at c urre nt market prices has increased by about 29.6 percent
per annum during the PASDEP per iod. At the sa me time. gross ca pital formation, tota l
export s and total imports. registered an annual average growth rate of 28.3. 27. 1% and
27.6% respectively.
Ta ble 2. Percentage Sh are of Aggr ega te Consumption & Savings to Gn p @CMP
Item 2004105 2005/06 2006107 2007/08 2008109 2009110
Total Consumption 94. 1 95 .4 9 1.3 94. 8 93.6 94.4
Gro ss CapitalF ormation 23.8 25 .2 22. 1 22.4 22.7 22.3
Expo rtsof Goods and Services 15. 1 13.8 12.7 11.4 10.5 13.6
Impo rts o f Good s and Service s 35.5 36.5 J2 30.8 28.7 33
Reso urce Balance -20.4 -22.7 - 19.3 - 19 .4 - 18.2 - 19. 3
Gross Do mestic Sa ving 5.9 4.6 8.7 5.3 6.7 5.5
Owing to the increased pent up consum ption demand. the domestic saving rate remained
lowe r than the PASDEP target. T he domestic saving rate was 5.9% at the beginning of the
PASDEP period and remained at 5.5% in 2009/ 10. Likewise, consumption remained at
much the same level throughout the PASDEP period leaving no room for growth in saving.
Th is suggests that greater efforts are needed to increase the rate of domestic saving in order
to meet the growing investment needs of the country.
Figure 3. Percent age Sha re of Aggrega te Consumption a nd Sn ings to GDP @CM P
Il "
'""
""
'"
j ~"
ao
"
D TO I ~ 1 C OlOSUIIII" ;" "
lD ( ;ros s C ~p il 3 1 Fo" n a t"'"
~ E s po.-lS or Oood. all d s.:.... iee s
IIJ R e s o"rc c B ~l a ncc
D O r"". nom e s lie Sa' ·in!,!,
stringent legal measures against tax evas ion. As a result. domestic revenue achieved an
annual average growth rate of 26% surpassing the PASOEP target o f 20%. However.
domestic revenues as a share of GOP has marginally declined during the same period. As
Tab le 3 below illustrates, total revenue as a share o f GOP fell from 18.9% to 17.3% over
the plan period. with domest ic revenue marginally falling from 14.6% to 14.0% over the
same period.
Ta ble 3. Per centage Sha re of Revenu e, Expendit u re an d Deflcit to GDP @Cl \-lP
hems 2004 /05 2005 /06 2006/07 200 7/08 2008/09 2009110
Total Reven ue Incl uding Grants 18.9 17.7 17. 1 16.0 16 .3 17.3
Dome stic Reve nue 14.6 14.8 12.7 12.0 12.0 14.0
Tax Reve nue 11.6 IO.R 10. 1 9.6 8.6 11.3
Non -tax Revenue 3 4. 1 2.6 2.4 3.3 2.8
Grant s 4.3 2.8 4.4 4.0 4.3 3.2
Tot al Expenditu re 23.5 22.4 20.7 18.9 17.2 18.6
Recurre nt Expenditure 12.6 11.6 10.0 9.2 8. 1 8.4
oJ\\' Defence 2.7 2.3 1.7 1.4 1.2 1.0
Capit al Expe nditu re 10.9 10.7 10.7 9.7 9. 1 In.3
Poverty Oricn tcd expenditures 13.2 13.4 13.0 12. 1 IO.K 12.4
Expenditure Deficit including Grants -4.4 -4 .7 -3.6 -2.9 -0.9 - 1.3
Deficit Financi ng. 4.2 4.7 3 .6 2.9 0.9 1.3
External net 2.2 l . l 1.1 1.0 0 .9 l . l
Domest ic net 3 .3 2.1 3 .6 2.6 -0. 1 0 .5
Figu re 4. Per centage Sha re of Revenu e, Expe ndit u re a nd Deficit 10 G n p @CMP
as
1_ ·....."1" o", ,,u,"1" ,· h " ' I,, ... ; ."""
'" - _ . ... m . " k I< . nnu ~---- I, , - ..... " ''''o"u,"• ,
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- " .. n ·. ... I< ~ . - ~ n " ~
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,
- " .""..:: ,i '" I- ·....'"I.:. ".".h'"••1_ ......," . ...·,,'·'·I""",h',,,...,
! - .. /.. H.·f. n"", I
. ~ . l i t ~ - ( '''1';' '''. ' ~ I ," n , n , ,, ,...,
,- -- - - :so:: "" 1- -,.....~..>.O . I ~n " . 1 o. ,"·".h".....
" ~c - - . " 1"-" ,' 1',, • • ' .... ,-'"" ,,, •., ,,,, ;,, ..200~f(I ~ 20n ~ f l'" 2 1K'6f07 2 1KI 7 ~l!~ ~l\lW f I0 , ( ; 'H" "
- - H" fi ,' ; ' H n H".-;n"- - 1-.,."·.,,.,1,, <t., i- ....n. ... " . nd
_ 10
proport ion of budget deficit. including grants. to GDP had decl ined from 4.2% in 2004/05
to 1.3% by the end of 2009/ 1O.
Although. exports have increased during the PASDEP period. the trade balance did not
improve as desired. The trade deficit widened during the peri od because o f a significant
increase in imports. an increase necessary to sustain the high econom ic growth leve ls
achieved. (See Table 4 and Figure 5)
Tab le ..t Impo rt a nd Expor t trade sha re of G DP ( % )
hl"m 2004 /05 2005/06 2006 /07 200 7/08 2008/09 2009 /10 Average
Export (merchandise ) 6 .9 6 .6 6. 1 5.5 4.5 • .0 SA
Impo rt (merc handise) 29.5 30.3 26.3 25.5 23.8 23.3 26 . 1
Trade balance -22.6 -23 .7 · 20.2 · 20 . 1 · 20 .0 - )9 .3 -20.9
Fig ur e 5. Expor t a nd Im por t Growt h ( % )
I!l Trade Balance
• .. •
2006 0· 2008o· 2009 ~.. • .. ••• • .. •.. • .. •• • .. •.. • .. ••
Years
Ea trrport (Merchandise)
40
30
20
"Cl
.l!l 10
""~ 0
" •Q. 200 b·
-10 • •• •• •• •• •-20 • •• •
-30
o Export ( Merchandise)
In terms of monetary policy. the main obj ective was to achieve and maintain price and
exchange rate stability. During the last five years the gove rnment has taken measures that
c urb inflationary pressures and increase the country's fore ign exchan ge reserve s. Fiscal and
monetary po licy measures as well as admi nistrative ones were used to reduce inflation to
1.2. PERFORMAN CE OF ECONOM IC AND SOCIAL SECTOR S
1.2 .1. Agr iculture and Rur al D evelopm ent
Crop produ ction : In 2004 /05 the tota l land covered by the three main crops was 9.8 mIn
ba, by 2009 / 10this a rea had increased to 11.25 min ha. Tota l out put increased from 11 9. 1
min qts in 2004/05 to 19 1 min qts in 2009/ 10. Average productivity of these crops
increased from 12 .1 q tlha in 2004/05 to 17 qt!ha in 200 9/ 10.To realize these increa ses in
product ion and produ cti vity it was plann ed under PASDEP to supply 820,000 tons of
chem ica l fertilizers. The act ual amount supplied was 830,000 tons.
Hor ticu ltu r e deve lopme nt: It was planned to deve lop 4 19,000 ha of fruit and vegeta bles
by 20 10. The ac hievement at the end of the plan yea r was 152,600 ha. Besides, it was
planned to produce 27.2 mIn qts a nd the ac hieve ment was 12.8 min qts.
Coffee devel opm en t: It was planned to increase coffee production to 419,6 10 tons by
2009/ 10. In the eve nt 34 1,000 to ns was produced, 8 1.3%of the targe t.
Livestock prod ucti on : The PASDEP target was to increase meat productio n to 837,000
tons; but only 605,000 tons of meat was produced, 72.3% of the planned target. The target
was to increase milk production to 3.39 1 min tons; and 96.2% of the planned target was
achieved with 3.26 1 mIn tons of milk produced in 2009/ 10.
In terms of anima l health services, it was planned that the number of veter inary clinics
would be increased to 3,600; the ac hievement was 2,275, 63.2% of the target. The target
for livestock vaccine was to supply 289 min doses in 2009/ 10; supply ac hieved was 96 min
doses, 33% of the target. PASD EP aimed to increase the number of pastora list and farmer
trainees on basic veterinary service deli very to 3.000 and 4, 144 trainees ( 138%) completed
thi s tra ining by the e nd of2009/10.
Agric ultura l extension services: during PASDEP it was planned to train 5 1. 10 I graduates
in the fields of plant, a nimal a nd natura l resource sciences and cooperatives deve lopment
to support the agri cultural extension service s. at agricu ltura l a nd vocational training
colleges. At the end of the plan period 52,02 3 graduates had completed tra ining in these
areas. During the PASD EP period. it was planned to increase the number of minimum
package trainee s to 10.39 mln: the ac hievement was 12.7 rnln. Although the aim was to
increase the share of wome n trainees to 30% of the tota l. the percentage reali sed was
18.5%. It was planned to increase household fa mi ly package trainees to 4.5 mIn by the e nd
of the plan period and the ac hieveme nt was 5.4 mln, wh ich is higher than the planned
target by 12.5%
It was planned to increase the number of fanne rs trai ning cent res to 18,000; the number
actually increased by 9,265 centres, 51.5% of the ta rget. The necessary equipments were
also supplied for these newly built tra ining cent res.
Agr'ic ultura l rese arch : Encouraging results have been achieved in agricultura l resea rch in
small irrigation systems; by the end of the plan period 122.430 hectares o f land were
developed by these means. During the PASDEP period. 853. 000 ha of land serviced by
small scale irrigation systems was developed well in excess of the target of 487,000 ha.
Land re ha bilita ted by water and soil conser vati on : The area of land rehabilitat ed by
wate r and soil conservation works during PASDEP was increased from 0.82 mIn ha in
2004/05 to 3.77 rnln ha in 2009 /1 O. With regard to forest conservation and management.
the country's forest coverage was increased to 8.8 mIn ha from 4. 1 min in 2004/05. And at
the end of the plan period the country' s forest cover age reached 6. 1 mIn ha.
Food secu r ity a nd safety net program s: Food sec urity interventions aimed to resettle
161, I08 voluntary households of which 9 1,3 17 (56.68'Yo) households were resett led. As of
2009/10 a cum ulative of 286,920 household s were food secure in resettl emen t a reas.
Productive sa fety net programs benefited 730,494 beneficiar ies of the targeted 1.5mln. In
290 woredas the number of farmers and pastoralists who were food insecure and needed
assistance was 7.1 min in 200 911 O.
Forest co nserva tion a nd man agemen t: The country 's forest coverage was increased to
8.8 mIn ha from 4.1 min. And at the end of the plan period the country's forest coverage
was 6.058 min ha.
Agr icult ur a lmarke t: 830,000 tons of fertilizer was supplied during the plan aga inst the
target of 820,000 tons. The Ethiopian Seed Enterprise and other improved seed suppliers
supplied 527,779 qt (doesn' t include the supply by the regions) of improved seeds, against
the target of 1.8 mIn qt.
Agr icult ur a lcoopera tives : In 2005/06 there were 20,437 cooperatives with a capital of
ETB 822 min and 3,642,602 members. By the end of 2009/ 10 the number of cooperatives
was 33,636, the ir ca pitalhad increased to I bln birr and their membership had grown to
5,899,76 1. Moreover, 2 12 cooperative unions with 3,826 member coo peratives and a tota l
capita lof ETB 185,472.337 were established during the plan period.
Ag r icult ur ale xpo r ts:The revenue generated from flower exports increased from USD
12.6 min in 2004/05 to USD 170 min in 2009/ 10. In the same period, the revenue
generated from fruit and vegetable exports increased from USD 14.07 min to USD 31.7.
357.000 live animals were exported. a substantia l increase on the target of 2 13.000.
3 19.647 tons of coffee was exported against the target of 323.000 tons. Overa ll. 1,225.000
tons of agricultural goods generating USD 1.55 bln were exported in the plan period
against targets of 1,183,000 tons and USD 1. 51 7 bin. respectively.
1.2.2. Trade and Indu stry Development
T he Trade Sect or
With regard to trade regu lation, a trade registration and licensing syste m was introduced
throughout the country, from federal to kebele levels. Gene rally, measures were taken to
Community-Southern African Developmen t Community Tripartite). In addition Economic
Partnership Agreement (EPA) was reached with the European Union.
T he Indu str y Secto r
During the PASDEP period support was given to micro, small, medium and large scale
industries and , part icu larly,to industries that used agricultura l inputs and were ca pable of
generating foreign exchange.
Micro a nd small sca le en terpri se dev elopm en t: As a part of PASDEP, the government
took a number of initiatives to promote and expand micro and sma ll enterprise
development in different regions and city administratio ns. The PASDEP target was to
crea te 1.5 million new j ob opportunities in the sub-sector which was more or less fully
ac hieved during the plan period. Substant ial support was provided including increased
supply of credit, training. provision of productio n and market facilit ies, technology support
and provision of sma ll e nterprise information se rvices.
Te xtile a nd gar me nt indu stri es : During the PASD EP period textile and garment
industries were expected to generate export ea rnings of USD 500 min. At the end of the
plan per iod, the sub sector had, however, only generated export revenu es amounting to
USD 2 1.8 mln. far lower than the target. T he low level of development of the sub-sector at
the start of the PASDEP period is one of the main reasons for th is under performa nce.
There is a c lea r need to increase efforts and potential to improve performance of the textile
and garment industries.
It was planned during PASDEP to attract investment in new industrial factor ies worth USD
1.6 bIn. As a result a number of investment s were made, faci lities developed and
production contributing to exports commenced. These included: 2 weaving factories with a
product ion ca pac ity of 10,500 tons per annum ; 3 factories with a production capac ity of
16.5 min metres of garrnents per annum; and, 10 sewing factor ies with an annual
product ion capacity of9.3 mIn items of clothing. Those investments that. at the end of the
plan period, had made investments, initiated proj ects and , in some cases. commenced
product ion included: 4 factories with a production capacity of 8.225 ton trade per annum; 3
factories with the product ion capacity of 255 min metre garments per annum; 3 factories
producing 33 min metres of processed gar ments; and I factory with a production ca pacity
of 10 min items of clothin g. Those investments that had finalised the preparation and
started the investment process included : 5 wea ving facto ries with a total ca pacity of 84,875
tons per annum; 4 factories with annual production of 6 1 mIn metre gray garments; 4
factories producing processed garments of 113 min metres; and 2 facto ries with a
production capacity of over 2 1.6 m in items of clothing. Other investors showed interest
and pre investment processes a re underway.
Leath er a nd lea th er produ cts : Leather and leather products (shoes and other leath er
products) we re expected to generate USD 22 1 min in export earnings. In the event USD
75.73 min was earned by the end of 2009/10. It was planned to upgrade 74 unfinished
Suga r : During the PASDEP period. sugar industry development works included a
feasibility study, irrigation and road works. sugar ca ne plantation development. housing
deve lopment. construction a nd expa nsion of factories. and production of sugar and ethanol.
It was planned to fina lize the establis hment of two new sugar factories in Wonj i and
Te nedaho and sugar factory expansion works in Metehara and Fincha. However, in Wonji,
Tendaho a nd Fincha the percentage completion during the plan was 30%. 25% and 40%.
respectively. It was planned to establish a new sugar factory capable of crushing 8.000 tons
of suga r cane per day and. in this case, the target has been fully achieved. Investment
lice nses have been granted to plant sugar cane on 20,000 ha of land and 7,200 ha of land
was planted . The ex isting three sugar factories were expected to produce 1,5 10.683 tons of
sugar and 39.697 m J of etha nol. Actual production ove r the PASD EP period was 1,468,91 5
tons of sugar and 30. 124 m3 ofethanol.
Cement: The cement industry was expected to produce 4.7 m in tons of cement per year.
However, the industry achieved an output of only 1.17 min tons of cement per annum. This
result suggests the need to increase the production and supply capacity of cement in order
to meet the needs of the fast growing construction industry.During the ea rly yea rs of
PASDEP implementation there was a dramatic increase in the gap between the demand for
and supply of ce ment. T his put considerable pressure on the const ruction sector. To ease
the s ituation. short term and long term intervention plans were designed and implemented.
The short term intervention plan involved importat ion of cement and construction of small
scale cement industries. The long term plan involves develo pment of new high capac ity
cement producing factor ies. Implementation of this plan is being clo sely monitored.
Meta l & metal e ngineer ing: In the meta l and meta l engineering industries preliminary
measures were taken to unleash the ir full potential contributio n to the country' s
deve lopment efforts. To support exporting industr ies. spare parts were produced locally for
four textile and two leather industries. In addition. a system was put in place that allow s the
product ion of spare parts loca lly for sugar and cement as well as other manu facturing
industr ies.
Training has been prov ided on non-destructive testing. funded by the Internat ional Atomic
Agency which a lso supported the purchase of equipment.
Chemical ind ustries: During the PASDEP period. support was provided to c hemical
industr ies producing inputs fo r leather and texti le industr ies measures. to add ress the
cha llenges they were fac ing.
Pharmac euti cal indu stri es: A strategic plan was deve loped for pharmaceutica l industries
to support producers of drugs and pha rmaceut ical equipme nt to allow them to import their
raw mater ial and othe r inputs duty free. Steps were taken to ensure that government
procurement syste ms give precedence to loca l pharmaceutical companies so as to
encourage local industry. In some cases technical assistance and consultancy support was
a lso provided to pharmaceutica l companies to fulfil internationa l drug producing sta ndards
and quality.
1.2.3. Mining
The mining sector rea lised some significant ac hievements during the PASDEP per iod.
The se incl ude extens ion of the cove rage of co untry wide geologica l information, hyd ro-
geologica l map ping, geo physic s (grav ity) studies and engineering geology mapping from
38%, 27%. 65% and 6.9% in 2004/05 to 51%, 42%, 80% and 10% in 2009/ 10.
respect ively. It was planned to identify and del ineate 30 areas of mineral de posits, while 34
such areas were identified a nd del ineated by the end of the plan ning period. Annual
investment in the mining sector increased from ETB 62 mIn in 2004/05 to ET B 12.7 bin in
2009/ 10.Revenue generated by the sector increased from ET B 20 mIn in 2004/05 to ET B
50. 1 min in 200 9/ 10.Mining roya lty reve nues reached ET B 130 mIn in 2009/ 10. Gold and
tantal um exports increa sed from 3,439 kg and 92.5 tons in 2004 /0 5 to 3907 kg and 202
tons respectively in 2009/10 .
During the plan period it was ex pected that 5,000 kg of gold, purchased by the Nat ional
Bank of Ethiopia from artisan miners, co uld be sold to fore ign markets by the NBE. By the
end of 2009/ 10, 5250 kgs of gold had been purchased by the NB E and USD 129 mIn
rece ived by NBE from sa les . An addi tional USD 2 mIn was generated by sa les of 4,500 kg
of ge mstones to fo re ign markets.
1.2.4. Road Development
With regard to federal roads, the plan for the 2004/05- 2009/10 period was to r einforce 852
km o f roads, upgrade 4,039 km. co nstruct 2,769 km and execute temporary or heavy
maintenance of 3,660 km of existing road s. Thus the plan was to co nstruct o r mainta in a
tota l of 11 320 kms of fede ral roads. and overall 96% of the se PASDE P targets were
real ised. In add itio n. 40 new federal roads were opened fo r traffic a nd more than 11 .000
km of road length added to the existing network. As a result, the tota l road length increa sed
from 36,400 km in 2004/05 to 48.800 km in 200 9110. These figures exclude Woreda roads.
The proportion of roads assessed ob jec tively as being in good co ndition increased fro m
64% in 2004/05 to 8 1% in 2009/ 10. Th e tim e taken, on average co untry-w ide, to reach a ll
weather roads has decreased from 5.7 hours in 2004/05 to 3.7 hours in 2009/ 10 . In gene ral,
the performance of the road sector during the PASDEP period was remarkable.
1.2.5. Ra il Netwo r k, Dry Port a nd T ra nsport
Rail Netwo rk: For the developmen t of the nationa l rail network , a feasib ility st udy was
co nd ucted using latest sate llite mapping technology for three rail corrido rs with a tota l
length of 2.359 kms. In addition socio -economic and en viro nmenta l studies of the corridor s
are underway.
Dry Port : The co nstruction of the Mojo and Semera d ry port s was co mpleted. A bilate ra l
agree ment was reached with the gove rnment of Djibouti for a j o int fre ight service to
further fac il itate export and import of commodities. A cargo term inal has been built
on l 64.238 m
2
land made ava ilab le by the govemment of Djibouti . The terminal has
companies we re co ntracted to ens ure tech nical inspection of vehicle s. Moreover to ad dress
the tran sportation challenges fac ing the ca pita l. Add is A baba, the possibility of introd uc ing
mass transport sys te m has been ex plored.
Air Transport : A cargo termina l for storage o f peri shable agricu ltura l products was
constructed at Bole International Airport and a master plan for the a irport was prepared.
During PASD EP it was plan ned to co nstruct new or expanded airports at seve n locations.
At Jiji ga. Humera and Assosa the a ir ports' runway co nstruction is co mpleted. At Jim a.
Jin ka. Kombolcha and Se mera runway constructio n work s are at d iffere nt level s o f
const ruction and pre-co nstruction phases. Meke le and Bah ir Dar a irport s a re o perating to
Inte rnatio nalStanda rds. The PASDEP strategy to increase the number of passengers and
the amount o f cargo has result ed in an increase o f 1.55 min in 2004/05 to 3. 128 min in
2009/ 10 of the former and 1.42 bin to n/k ilo metres in 2004105 to 2. 84 bIn in 2009/ 10 of the
latte r.
1.2.6. Te lecommunications
Dur ing the PASD EP period the mobil e telecom munications net work capac ity was
increased from 0.5 min users in 2005/06 to 25 mIn in 2009/ 10. The number of
telecommun ication c ustome rs increa sed from 0.56 min in 2004105 to 6.5 min in 2009/ 10.
In the Unive rsa l Access Program. a C DMA wireless network which co vers 90% of the
co untry has successfully been insta lled and the system enables vo ice and data service
ava ilab ility to every kebe le. Th e number of fixed line and mobile phone users was 0.62
min and 0.02 mIn, respectively in 2004105 and these increased to I min a nd 0. 187 min.
respect ively in 2009/ 10. Th e percentage of the rural po pulation with access (with in 5
kilo metres rad ius) to a teleph one service inc reased from 13% in 2004/05 to 62. 14% in
2009/1 0.
To connect the co untry' s main communicatio n infrastructure, ab out 10,000 km of fibre
o ptic ca ble (w ith high level information transmission ca pac ity) was insta lled and has
co mmenced rende ring services. A National Network O peration Centre that enables the
centra l ad ministration o f t he network was estab lished and the ca pac ity to co ntro l service
quality standard and managem ent of service fai lure information was put in place .
1.2.7. Energy
The co nstruction of new hydropower p lant s. includ ing Tekeze, G ilgel G ibe II and Tana
Belese plants, enhanced Ethio pia' s hydropowe r generating ca pac ity. In 2004/05 the tota l
hydro power ge neratio n ca pacity co untry-wide was 7 14 MW . The PASDEP target was to
increase power generation capac ity to 3.270 MW by the e nd of 2009/ 10. Th e power
ge neration capac ity actua lly achieved was 2.000 MW at the end of 2009/ 10 amounting to
62% of the target. The total po wer ge nerated in 2004105 was 3. 112 GWH. It was planned
to ge nerate 10.907 G WH by the end of 2009/ 10, howeve r. only 7.689 GW H (7 1%) was
generated. During the PASDEP period, to con serve e lectric e nergy. 4.6 mIn ene rgy sa ving
bulb s we re d istributed to custome rs. It was planned to increase power transm ission lines
During the plan period the rural electr ification program aimed to increase the number of
towns and rura l villages which have access to e lectric power from 648 to 6.000 .
Accord ingly 5. 163 towns a nd rural villages had ga ined access to e lectricity by 2009 / 10
amo unting to a 78% realisation of the PASDEP target. The tota l number of registered
customer s of e lectr icity increased from 952.000 in 2004/05 to 2 min in 2009/ 10. 77% of
the planned target. It was also planned during the PASD EP period to distribute 3 min
improved energy saving biomass ovens and these have been distributed as planned. As a
result. it is estimated that about 26. 176 ha of forest have been con served from deforestation
and carbon dioxide em issions have been mitigated by a bout 36,5 75 tons. About 10,081
rural fam ilies have benefited from distribution of home solar systems and 238 Rura l Health
Stations and First Cycle Schools have been provided with solar electric power. During the
plan, the petrole um reserve storage capacity increased from 279.80 0 m' to 369,800m 3.
1.2.8. Water and Irri gation Developm ent
Wat er supply: During PASDEP access to potable water increased from 35% to 65.8% in
rural areas and from 80% to 91.5% in urban areas. Ove rall nat iona lly,access to potable
water has increased from 36% to 68.5%. The increase in rural access to potable water over
the five year period is attrib utab le to the provision of 793 very deep wells, 3.353 medium
deep wells, 8,762 hand dug wells. 8,195 water fountain enhance ment works, 478 water
harvesting ponds. 3,294 rain water collection and, 7 run-off water harvesting systems. The
number of malfunction ing water stations was reduced from 30% of the tota l to 20% in the
plan period.
Ir ri gati on :Irrigation deve lopment measures were taken during PASDEP to put in place
small, medium and large scale irrigation schemes. At the start of 2004/05 it was planned to
carry out irrigation scheme pre feasibility studies covering 177,998 ha, deta iled studies for
464,05 1 ha, a nd initiationof irrigation works over 430,06 1 ha of land. The achievement by
the end of the PASDEP period was 178,000 ha, 462, 114 ha, a nd, 65,243 ha of land for
small, medium and large scale irrigat ion schemes. respectively.
1.2.9. Const r uct ionand Ur ba n Development
Ur ba n Development: During 2004/05·2009/ 10, it was planned to construct 396,000 new
houses, establish 10.000 sma ll urban-based enterprises. and create j ob opportunities for
200,000 urban city dwellers. By the end of the PASDEP period 2 13,000 houses had been
built in various regions a nd c ity administrations. In addition as a result of the housing
development program, 4,306 small co nstruction enterprises were e stablished, while
176.000 permanent a nd temporary jobs were c reated. Of the houses constructed 72,000
were handed over to the beneficiaries and ET B 93 1 mIn was received in pre payment from
beneficiaries for the houses.
A progra m to build ca pacity for dece ntralized service de livery was initiated within 18
citie s with a total o utlay of ETB 142.1 min. T he project completed improvements to 14
city markets as well as dra inage and road rehabilitation projects and purcha ses of vehicles
parks and water supply and sanitation works. A total of Birr 997 million was invested on
these infrastructure c reating 5 1,905 job o pportunities through this initiative.
Const r uct io n indust ry dev elopm ent : In ord er to develop the capacity of dom estic private
contractors providing con struction services 752 new contractors were given licenses and
provided wit h tra ining. Financia l support and tra ining we re provided to these construction
companies to enhance the ir capac ity. Capac ity building services were prov ided to 147
expert s organised as 43 consulting firms and, as a result, the numb er of consulta nts
working in the construction industry increased from 177 in 2004/0 5 to 254 in 2009 / 10.
Permits to import machineries with long term payment moda lities were awarded to
increase the supply of construction machiner ies and address transportat ion problems.
During the plann ing per iod 1,075 fre ight transportation vehicles, 1,000 dump trucks, 350
loaders, 100 rollers and 25 low-bed trucks were imported and distributed to domestic
private companies on credit modalities. In additio n 65 c rushers and 125 loaders were
distributed to co mpa nies of gravel supplie rs.
To address the shortage of co nstruction materials and ensure sustainability for t he fast
grow ing co nstructio n industry, the government imported cement, steel and other
construction mater ial, while encouraging domestic production of these items in the
medium term . As a result very large q uantities of cement and stee l were purc hased and
distribu ted locally durin g the plan period. Many micro and sma ll scale e nterprises received
training, financia l and adm inistrative support to increase thei r role in the supply of
particu larly loca l constructio n mater ia ls.
1.2.10. Ed ucation
Prim ary School Ed uca tion (G radc 1-8): The number of prima ry schools increased from
16,513 to 25,2 17 in the PASD EP period. Consequently, the number of classroom s
increased from 16 1,795 to 247,698 . The gross enrolment rate for grades 1-8 inc reased from
79.8% to 94.2% and the primary net enrolment rate increased from 68 .5% to 87.9%. The
dispar ity in enrolment rates between male and female students gross enrolment rat io
narrowed from 0.75:1 to 0.93:1.
Secon dary School Ed uca tion ( Grade 9-12 ): There were 706 seconda ry schools in
2004105 and th is number increased to 1,202 in 2009 / 10. In 2004/05 the gross enrolment
ratio for secondary schools (9-10) was 27 .3%; it increased to 39.7% in 2010 . The Net
Enrolment Rate for seco ndary schools (9- 10) increased from 11 .8% to 12.6% du ring the
sa me period .
Ed uca tion Qu ali ty : The primary school (Grade 1-8) student-teacher ratio decreased to
57: I by 2009/ 10 and the secondary school student-teac her rat io reached 43: I. The student-
clas s rat io, in primary schools (Grade 1-8), fe ll from 69: I in 2004/05 to 62: I in
2009/ 10,w hile in secondary education (Grade 9- 12) it fe ll from 78: 1 to 68 :1 in the same
per iod.
T ec hnical and Vocationa l Ed uca tion a nd Training: T he number of trainees undertak ing
fema le to male students at the graduate school increased from 9% to 11 .3%. During the
PASD EP period the number of public un ive rsities increased by 13, and the total is now 22.
With regard to building the capacity of university teachers, the number of university
teachers increased from 4,847 to 11,238 in the plan period. Of these 5,706 (50.8%) hold a
first degree, 4,528 (40.3%) hold a second degree and 1,004 (8.9%) hold a PhD.
1.2.11. Health
The main objectives of the health sector component of the PASDEP plan were to reduce
child morta lity, improve mothers' health a nd combat the spread and prevalence of
HIV/AIDS, TB and malaria. To achieve these strategic objectives and to ensure full health
se rvice cove rage in all rural kebeles, a hea lth extension strategy was designed and
implemented. During the PASDEP period one of its targets was to train 30,000 health
extension workers. In the eve nt, 33,8 19 were trained and dep loyed in rura l kebe les a ll over
the country. The number of health posts and health ce ntres increased from 4,2 11 a nd 644
in 2004/05 to 14,416 and 1,787 in 2009/ 10, respectively. The number of public hospitals
increased from 79 to I I I in the plan period.
During the PASDEP per iod the number of women of child bearing age and using
contrace ptives increased from 15% to 32%, prenata l service coverage increased from 46%
to 63%, postnatal service coverage increased from 15% to 30%, and tra ined birth assisted
del ivery increased from 13% to 25% - although the target was to reach 32%. In general the
number of deaths of mothers whic h were related to del ivery decreased from 87 1/ 100,000 in
2005 to 590/ 100,000 in 20 10. The under-fi ve mortality rate decreased from 123/1000 to
101/10 00.
By 200 9110 a bout 10 mIn households living in malar ia infested areas had received 2
mosqu ito bed nets each and by this means the cove rage of mosquito net usage has
increased from 1% to 100% in the plan period. Also during the PASD EP period, the cure
rate for T B increased from 65% to 67% and the incidence of HIV decreased from 0.68 to
0.28. The PASDEP target was to halt the HIV prevalence rate at 3.5% of the population
and a better result was ac hie ved with the prevalence rate droppi ng to 2.4% in 2009/ 10 .In
general, the health service coverage increased from 30% to 89% during PASDEP.
1.3. C ROSS CUTTINGSECTORS
Wo men and C hildre n: The government has placed strong emphas is on the participation
of women in the political, economic and social affai rs during the PASDEP per iod. In th is
respect follow ing the enactment of the nationa l policy on Ethiopian women,
organizational structures responsible for women' s affairs we re strengthe ned at fede ral,
regiona l, and local levels. The family law and crim inal were amended to fully ensure the
rights of women.
Efforts have also been unde rtaken to ensure the benefits of women in eco nomic growth and
soc ial develop ment. For instance the partic ipations and benefit s of women in agricultura l
for 20-30% of newly built houses and for the remaining 70% of houses, women competed
equa lly with males.
Youth and Sports: During the PASDEP period. a tota l of, 3.43 5.049 youths participated
in various training sessions. More than 708. 116 youths received training in management
skills and 444.595 youth association orga nizers rece ived train ing for the pre paration and
design of strategic plans. finance manageme nt and administration a nd related subjects.
To organ ize and support sport associations 200 leaders were trained. 11 .193 sport
associatio ns were established from national to kebele level of which 26 were estab lished
and registered at national level. To expa nd and strengthen sport and fulfil comm unities'
training and publ ic sport ground needs. 7.567 different sports grounds were created in
suita ble locations.
C ult ure and Tourism : During the PASD EP period. the average annual number of tou rists
visiting Ethiopia was 324.666 and they generated annual average revenu es of ETB 1. 61
bln . This ac hievement represents an increase in the ann ual average number of tourists and
revenue generated of 2 1% and 16.3%. respectively. Spec ific initiatives undertaken d uring
the fi ve year period included strengthening of wild life conservat ion area s. expa nding
infrastruct ure and tourist facil ities, improving national parks management and control, a nd
giving part icular attent ion to community tourism. T hese initiatives resulted in the
estab lishment of facil ities for national parks at Alateshi, Borena Sainte. Maze. Chebe ra
Churchura, Ka feta Sheraro and Gera le. Border demarcation of wildlife control areas was
com pleted for Simie n Mountains National Park, Bale Mountai ns National Park, Senkele
rhino she lte r, Shige sha a nd Tu lu lodge. At the Simie n Mountains National Pa rk 147
households were vo luntarily resettled to a pre-arra nged settlement site. Two investors have
built lodges at Awash and Simie n mountains national parks that contribute to expansion of
the ava ilable facilitie s and create an e ncourag ing e nvironment fo r more tourism. At
Senkele a rhino she lter recreation ce ntre has been built and, in schools which are close to
wildlife conservation areas, nine natural resources conservation c lubs have been
strengthened and given aware ness creation training related for wildlife development and
protection .
Science and Technology : The nat ional science and techno logy policy document was
reviewed. revised and presented to government, tak ing into account the current situation
and technological developments. A databa se was estab lished that identifies science a nd
technology re lated ca pacity building requirements. To build natio nal researc h capacity and
support active researc hers, training was given to young researc hers and research
institutions. Weekly radio programs and printed inform ation sheets entit led " From science
and technology archive -kesaynese mahlder" have been distributed to enhance awa reness of
and develo p interest in science and technology issues.
Environment : A woreda environment management planning man ual was prepared. The
manual aims to improve rural environments, contribute to susta inable development,
improve living standards a nd ensure gende r equality. About 1,450 environmental experts
1.4. GOOD GOVERNA NCE AND D EMOCRAT IZAT ION
The good gove rnance and d emo cratisatio n strateg ies ad opted d uring PASDEP a imed to
build t he ca pac ity o f the ci vil service to strengthen key pub lic services that suppo rt a nd
en ab le dem ocrat ic institution s, improve service delivery in the same area s, and con tinu e to
st rengt hen the o ngo ing democr atisation process. The democrat ic instit ut ion saddressed
included those c reated before 2004/05 such as the Ombudsman. Human Righ ts
Commission and Anti Co rruptio n Co mmission. These organ isat ion s were established to
mon ito r the system fo r ad m inistrati on o f j ust ice. prov ide soc ial accoun tabi lity and to
ensure a sustainable. transparent and accoun table public ad ministra tion.
The ma in focus o f the five year plan was to g ive woreda ad ministrations increased
aut hor ity and res pon sibi lity a nd g rant c ity admi n istratio ns' and mayors' offi ces a n
approp riate right for se lf admin istration. Within an ov era ll o bjec tive o f en suri ng deli ve ry
o f public services o f high qua lity to the peop le, the focus has been to enhance the PASD EP
im plement ation ca pacity at the local adm inistrat ive leve l. address the shortage o f sk illed
manp ower. and improve the rura l co mmunication infrastruct ure. The go vernme nts'
st rategies to fight co rrupt practices. amo ng c itizens and public servants show enco urag ing
signs of impro vement in terms of identify ing co rrupt perso ns. practices and orga n isations
and bringin g them be fore to the co urts.
Awa reness creation sess io ns were provided for those peo ple engaged in the PASDEP
preparation and moni toring wi th the a im o f build ing public support and co nfidence through
c iti zen s' partic ipat ion in the PASD EP prep arat io n and implemen tation initiatives. A
business proce ss reengin eering exe rcise was carr ied out by eve ry gove rnme nt agency, as
we ll as by wo reda and kebe le ad min istrat ion s. to im prove public se rv ice del ive ry and
ensure tran spare ncy of ope rat ions and good gove rna nce .
Extensive capac ity buildin g programs have been implemented to strengt hen the e ffic iency
and accountability of the j ust ice syste m w ith significant achieve me nts during the plann ing
period . Awar eness creatio n wor kshops we re co nducted to add ress problems wi thin the
j ust ice system. A co nflict pre vent ion and re so lut ion strategy was designed and
im plemented . A number o f measure s we re a lso undertaken to stre ngthen rela tions bet ween
regiona l go vernme nts so a s to build a stro ng an d stable fede ral democr at ic system. Cases
related to hu man rights and administ rative biases we re given preceden ce in the deci sion
mak ing process so that appropriate so lutions co uld be q uickly put in place .
1.5. C IIALLENGES AND GOOD PR ACTICE IN I M PL EM ENTI NG TilE PA SDE P
1.5 .1. Majo r C ha llenges Enco n nte re d
Impl ementati on ca pacity : There we re cap ac ity co nstrai nts among leaders and public
se rvants . at di fferent admi nist rative level s. invo lved in key aspe cts o f PASDEP
im plement ati on. To address th is cha llenge d uring PASD EP, the gov ernment la unched a
num ber o f process reengin eer ing and training program s to impro ve skills and ensure
appropriate implementation ca pac ity.
savings needed to support the huge demand for investment requ ired for the country' s
accelerating growth and development.
Inflation : A major challenge encountered du ring the implementation of PASD EP was a
significant increase in inflation. This was a potentially serious cha llenge to ma intaining the
macroeconomic stability. The government reacted in time with effective fisca l and
monetary policies as well as administrative measures to reduce inflation to sing le figures.
Rain : In some areas of the country, delayed arrival of rainy seasons, ea rly withdrawa l and
poor distribution of rain were cha llenges from which importa nt lesson s have been gained.
Indu strial sector: The under performance of the industrial sector was due to inadequate
technical and managerial skills in the sector, foreign exchange shortages to import essentia l
raw mater ia ls, spare parts and other inputs, power disruption s, constraints of access to
effic ient and effective credit services. and power disruptions..
1.5.2. Good Practices Learned
The lessons drawn from the implementati on of PASDEP and which formed one of the
inputs to the design of the 2009/ 10-20 14/15Growth and T ransformation Plan (GTP ) are
the following.
Lead ership , managem ent and organisation : Ma ny useful experiences have been gained
dur ing PASDEP on leading and managing the economy, on how to coo rdinate and
mobilize the public at large, the private sector and non governme nt organizations for
accelerated and sustained growth.
Agricultural productivity, producti on and sca ling-up ' best practice s' : During
PASDEP, a number of model farmers who registered very high levels of productivity and
product ion have emerged. The "best practices" of these model farmers have been analysed
and documented for scaling up tothe rest of the othe r farmer s during GT P period. This is
expected to increase productivity and product ion of most of farmers, and bring them closer
to the perform ance of the model far me rs.
Mobili sing domestic resources: Significant experiences are gained during PASDEP as to
how best to mobilize domestic resources and as to how to use domestic capaci ty most
effective ly to accom plish develo pmenta l interventio ns. These experiences are now
integrated into the strategies and programs of the GTP for the next fi ve yea rs.
Good governance: The introduction of the good governance package in the PASDEP
resulted in a range of key interventions that contributed significantly to human
development, democratizat ion, enhancing peop les' partic ipation, building we ll integrated
institutional ca pacity building and ensuring transparency and acco untability. T he next five
yea r plan will build on and expand the good governance initiatives.
Indu strialisation : As there was not signific ant growth in the industry sector and more
specifica lly in the manufacturi ng sub-sector, the lesson is ta ke n onboard that, in the next
five year s, more must be done to increase the percentage share of the industrial sector in
CHAI'TER 2.
BASIS, OIl.JECTIVES AND STRATEGIC PILLARS OF' THE GT!'
2.1. BASIS OF GROWTH AND TRANSFORMATION I'LAN
The co untry 's vision. the achievements of r ASDEr, and the lessons drawn from its
implement ation, were the basis for formulation of the next five year (20 I0/11-2 0 14/1 5)
Gro wth and Transformation Plan (GT P). Factors wh ich constra ined grow t h and externa l
shocks were tak en into accou nt in t he formu lation o f the GT P.
Ethiopia 's vision which guides the GTP is:
•• to become a country wh ere democratic rule, good-governance and social
justice reign , upon the involvement and free will of its peoples , and once
extricating itself from poverty to reach the level of a middle-income
economy as of 2020-2023."
The co untry's vision spec ifica lly o n eco nomic sector inc ludes:
"building an economy which has a modern and productive agricultural
sector with enhanced technology and an industrial sector that plays a
leading role in the economy, sustaining economic d evelopment and
securing social justice and incr easing per capita incom e of the citizens so
as to reach the level of tho se in middle-income countries ."
From 2003/04, th e eco nomy shifted to a highe r gro wt h traj ectory and the gro wt h
momentum was s usta ined d uring the PASD EP period. Infrastructu re devel opme nt and
soc ial se rvices have ex panded. Th e parti cipation of privat e investors and th e com munity in
ge nera l was ve ry s ubsta nt ial.Dom estic resou rce mo bi lizat ion increased the ca pac ity o f the
co untry to finance deve lo pment proj ects itsel f. The process of lay ing-out a foundat ion for
demo cra cy and good gov ernance was g iven due atte ntion in r eform programs undertaken
d uring the PASDE P per iod.
Among the ma jor cha llenges e nco unte red d uring the PASD EP im plementation period we re
the h igh inflati on pressures on the balance o f paym ents; the inadequ ate level s o f, and
co nst ra ining factors in, both otlicial dev elop ment ass istance a nd a lower level of domestic
revenue co llec t ion than expected, (which led to d itli c u lties in mob iliz ing financ ial
resource s to meet t he grow ing dev e lopm ent need s o f the co untry); and the unpred i ctab ility
of rainf a ll.
The GT P w ill co ntribute to ac hieve me nt o f Ethiopia ' s visio n and to sustai ning rapid and
broad based econo mic growt h. Th e experiences ga ined in resolv ing c ha lle nges that arose
du ring, and lesson s learne d from , the impl e mentat ion o f the PASDEP we re a sta rting poin t
fo r form ulat ion of th e GTP . In summary, th e ove ra llo bjec t iveof the GT P, ove r the five
yea r period, is to sustai n broad based, fast, and eq uitab le econo mic growth so as to
2.2. OBJE CTIVES OF THE PLA N
The GTP has the foll ow ing maj or o bj ectives.
I . Ma inta in at least an average real G OP grow th rate o f 11% and atta in MDGs;
2. Expan d and ensure the qua lities o f ed ucat ion and health services and ac hieve
MDOs in the soc ial sector;
3 . Estab lish s uita ble cond ition s fo r s usta inab le nat ion bu ild ing through the creation o f
a stab le democ rat ic and deve lopme nta l state; and
4. Ensu re the sustai nabilit y o f growth by reali z ing a ll th e a bove o bj ec t ives w ithi n a
stable macroeconom ic framewor k.
2.3. STRATEG IC PILLARS
Et hio pia ' s obj ec t ives and strateg ies for s usta in ing rapid and broa d-base deco nomic growth
path are dependent on the foll owin g GT P' s strateg ic pil lars.
1. Sustaining rap id a nd equ itab le eco nom ic growth,
2. Ma intai ning ag ricu lture as maj or so urce o f eco nom ic growth,
3. Creating co nd itio ns for the ind ustry to play key role in the econom y,
4 . Enhanci ng expa nsion and qual ity of infrast ructure deve lopmen t,
S. Enhanc ing expa nsion and qual ity o f social development,
6. Build ing capacity a nd deepen good governance, and
7. Prom ote gender and yo uth empowerment a nd eq uity.
Each of the strateg ic pi llars is e labo rated a s fo llow s.
2.3. 1 Sustai n ing ra pid a nd eq uitab le econo mic growth
In o rder to ac hiev e the vision of th e co untry and, in d ue co urse, era dicate poverty and so
imp rove th e livel ihood o f c it izens, it is imperative to susta in the h igher eco nomic growth
of the last S years and beyo nd. For thi s reaso n, inve stments in growth enhanc ing secto rs
such as infra structu re and socia l sec to rs w ill continue at a la rger sca le. Econo mic grow th is
ce ntra l in creating grow ing emp loyme nt o pportunities and Et hio pia ' s tran sformation into a
middl e inco me co untry.
T he agricu ltura l secto r wil l co ntinue to be the majo r dri ver o f eco nomic grow th. Ind ustrial
grow t h wil l be gi ven parti cu lar focu s. Rap id growth o f an indu strial sec tor that increase s
the co mpeti tiveness o f Et hio pia ' sex port s and re sult s in import subst itut ion will be
enco uraged. T his a pproa ch is ex pected to res ult in the rapid and broad ba sed econo mic
growt h that w ill prov ide a foundat ion for struct ura l tran sfor mat ion. The govern me nt' s
effo rts to erad icate povert y and create em ployment will be pursued by sustain ing ra pid and
investors. Fundamenta ls of the strategy include a shift to production of high value crops
with a special focus on potential high productivity areas, inte nsified commercia lisation,
and support for development of large-scale commercia l agriculture, where feasible. The
commercialisation of smallholder farming will continue to be the major source of
agricultural growth. Conce rted support will be given to increase private investment in large
commercial farms too. A range of public investments will be undertaken to scale-up the
successes realised so far. Further strategies include development of a more transparent and
e tli c ient agricultura l marketing system and increased investment in marketing
infrastructu re.
To e nsure that agriculture becomes the main source of growth for the next five years the
key strategy that will be pursued concerns sca ling up of best practices of model small
holder fa rmers. Thus the best technologies and practices of the model farmers will be
sca led up for use by all othe r fann ers during the GT P per iod . This will in turn increase
agricultural productivity and production. It is very esse ntia l a lso to strengthen the
go vernment structures at a ll levels so as to provide e ffective services that increase
agricultural productivity. Although the emphasis will be on sca ling up the best
tec hnologies and practices of model farmers. new technologies will also be developed and
disseminated to farmers and pastorali sts.
In addition to promote multiple cropping. better adaptation to climate varia bility a nd
ensure food sec urity. the GTP will intensify use of the country 's water and natura l
resources. Expansion of small sca le irrigation schemes will be given priority, while
attention will a lso be given to medium and large sca le irrigation. Concerted efforts will be
made to expand water shade management and to carry out effect ive water and moisture
reta ining works. Apart from improving productivity and living standards of the rura l
comm unities, these activities will help to cope better with the challenges of cl imate
cha nge. Strengthening the conservation and management of natural resource is anothe r
focus area. The conservation and management of natura l resou rces will mainly rely on the
farmers and government ca pacities.
Commercial horticulture will involve intensive farming and high value commod ity
product ion. It wi ll exte nsively use labour and hence is likely to concentrate in highland
areas a nd closer to the maj or c ities of the country. It will be integrated with the
surrounding small holder farming. In addition, given the expansion of infrastructure a nd
se rvices through out the country large sca le extens ive commerc ial farming are like ly to be
encouraged to grow. The other element of the agricultural development strategy is the
promotion of private large sca le co mmercia l farms in areas that are not occ upied or utilized
by people.
During the GTP period, agr iculture will shift to a high growth path in order to meet the
food sec urity needs of the country, to c urb intlationary pressures on agr icultural products,
and broaden the export base of the coun try. The sector will se rve as a spring board for
struct ural transformation in the long run by adequately supplying inputs necessary for
industr ia l growth.
In th e ind ustria l sector. the government will focus in pa rticular o n strengthe ning micro and
sma ll-sca le manufacturi ng enterpri ses. because they are the fou nda tion fo r the
esta blishm ent and ex pan sion o f medium and large sca le indu stries. and ope n opportunities
fo r em ploy me nt generation. expa nsion o f urban deve lopment and provide c lose support for
fu rther agricultura l deve lopm ent. Th e role MSE s play in sca ling up agricult ura l secto r
product iv ity is irrefutab le an d for th is reason ap propr iate support wi ll be provided to
st rengt hen vertical and ho rizonta l linkages bet ween agr icu lture a nd indust ry.
The growth of MSEs a nd their integration with TV ET system dev e lo pment wi ll be
instrumental in provid ing the necessary sk ills an d edu cat ion for technol ogica l tra n sfer. Th is
in an im portant part o f the effo rt to suppo rt MSE s. as is the provision o f capita l for MSEs'
o perations through saving a nd cred it institut io ns in a more transpar ent and accou ntable
mann er. To so lve the produ ct ion fac ility problem s o f MSEs and tho se linked to ident ifying
market oppo rtunities, eff o rts w ill be made by reg ions a nd c ity administra tio ns to provide
product ion and marketing fa cilities at an affo rda ble cost. Ent repreneu rial as well a s sav ing
attitu des and behaviours w ill be w ide ly promoted among micro and sma ll business
o perato rs in part icular and among the public in genera l.
Maj o r suppo rt w ill al so be g iven to establish and expa nd med ium a nd large sca le industry .
It is bel ieved that t hese ind ustr ies will encoura ge technologica l tran sfe r, bridge the link
between micro and small enterprise s and improve the co m petitiveness o f do mestic
resource ba sed la rge-scale ind ustrie s. Med ium and large sca le ind ustries w ill al so ser ve
we ll the do mestic market and produ ce val ue-ad ded produc ts fo r t he export ma rket.
Measure s to support se lected strateg ic impo rt substituting ind ustries. both within the pu blic
and pr ivate domai n, wi ll be strengt hened and this will hel p increase the fore ign exchange
earnings and lay the basis for more rapid indu stria l de ve lopme nt.
As is c learly stated in the Et hio pia' s Indust ria l Deve lopme nt St rate gy, the val ue that can be
added by the private secto r is an impo rtant engine o f the secto rs' development. The
business environme nt has ove r the years been co nduc ive to investment and the trade and
investment frame work ha s improved rap id ly, thus attracting bot h dom estic and foreign
investment. T he go vernme nt w ill co ntinue prov idin g a ll the necessary fac ilities and suppo rt
to real ize the GTP' s ind ustria l sec to r growth o bjec t ives .
2.3.4 En ha nci ng expa ns ion a nd en surin g qu ality of infra structur al
devel opm ent
The expansion and maint enance o f eco no mic infrastructure such as roads, power and wate r
supply, should be seen from the stand points o f enha nc ing and sustai ning pro-poor growth
throu gh j ob creation and promotion o f indu strial deve lop ment and, by these means helping
to realize poverty eradicat ion. Even though large inve stmen ts have been made o ver the
previou s plan period, the infrast ructura l bac kbone of the co untry has not yet reac hed the
q uantity and qua lity de sired becau se of the low thresho ld o f eco nom ic infrastructu re in
2004 /05 . Co nst raints that have arise n to date in achiev ing the desired leve l of deve lopment
inc luded limited loca l human cap aci ty and the large capita l investments needed, co mb ined
investments an d promotion of import substitu ting indu str ies. Investment in deve lop ment of
road s. railway networks. energy. irrigat ion and telecom mun ication w ill receive d ue
attentio n during GT P pe riod. A major effort will be made to increase investment in
infrastructure by: increas ing do mestic savings and pro moting impo rt substitutio n of
mater ials that are necessary for the infrastr ucture devel opme nt.
In the plan pe riod. the road networ ks w ill be expanded. Every rural kebele will be
co nnected to a n a ll weat her road and thus to the main road network. Rail way lines
con necting va rio us parts o f the co untry will be developed. To meet the co untry' s gro wing
en ergy needs e ffo rts w ill be made to increase use of a lternative en ergy source s such as
wind. geothermal and hydro energy. The o ngoing teleco mm unicat ion infrastru ct ure
expa nsion program will be concl uded and good qua lity and effic ient services w ill be
provided by fully utilizing this co untryw ide and a ffo rdably priced i nfrast ructu re.
In view of the role o f urban izat ion for eco nomic a nd soc ia l develop ment, building t he
necessary urban infrast ructures w ill be given emphasis to ensure rapid and eq uitable
gro wth of urban ce ntres. Th e development of these urban infrastructu res w ill be
implemented in a manner that they will co ntribute for MSEs development and employment
cr eati on.Adeq uate attention will a lso be given to improve urban sanitation am enities to
crea te suitab le living an d wo rking environme nt. A co mprehensive regu latory and capac ity
build ing framewo rk will a lso be implemented in o rde r to promote the development o f a
more produ ct ive and co mpetitive domestic co nstruction industry.
2.3.5 Expansion of social development and guaranrcctng their quality
Improving c itizens' living standards and deve lop ment o f the ir human potential, is a key
st rategic pillar of the GT P. The gove rnment will take various measures to improve
peoples' hea lth. productivity and skills. Among oth er benefits. these measures will increase
the potential for gove rnment' s po licies, strateg ies and program s to real ize their o b jec t ives.
The ma in initiatives that are expected to ensure that this st rateg ic pilla r is rea lized are
improved access to good quality higher and adult educatio n. very wide acce ss to good
q ua lity primary health care. better acce ss to sa fe water and san itatio n fac ilities. halt ing the
spread of HIV/AID S and other key infectio us disea ses. improving food security a nd
nutrition, and improved housing conditions.
Education and training : The progress to date has been enco uraging. In o rder to susta in
this level o f progress. the government w ill incr ease its efforts to deve lop the co untry's
human resource s by improving the acce ss to and the q uality o f ed ucation in the next five
yea rs. To improve access to education. efforts wi ll be made to add ress issues that hinde r
studen ts' , espec ia lly fema le studen ts', enrol ment. Appropriate importance w ill a lso be
g iven to pre-p rimary and functional adult ed ucation. To improve the quality of ed ucation.
measures w ill be taken to address ex isting sho rtcomings by increasing the numb er of
teachers and schoo ls. The go vernme nt will expand and improv e the initiati ves ta ken to date
in its General Education Q uality Improvement Program .
Higher education : The key prio rity in the higher educatio n system du ring the five year
processes, assessment and examinat ions and student achi evem ent.The government will
launch a big push to strengthe n sc ience and technology in higher education.
C hild c are, specia l needs a nd adult lite ra cy: T he earl y childhood care and education
system will be made cost effective a nd more participatory and be expanded in both formal
and non formal education delivery mechanisms. The education strategy for ch ildren with
special needs wi ll be fully implemented. A functional adult literacy program will be
expanded across the country.
Technical and voca tiona l edu cation & train ing: T he T VET system wi ll continue to be
an instrume nt for techn ological transfer, through the development of occ upational
standards, acc reditation of competencies, occ upational assessment and accred itation, and
the establ ishment and strengthening of the curriculum devel opment system. TVET
inst itutes will serve as the centres of techno logy and skill acc umulation for micro and sma ll
enterprises (MSEs). Rigorous and regular mon itoring and eva luation of TVET institutes
will be carried out. The TVET program will be part of the governmen t's capacity building
program to strengthen engagement with, and productivity of MSEs, as a key instrument for
creation of employment opportunities.
Health Serv ices: The GTP will focus on improving the health of the population th rough
provision of primary health care services that will be supported by the health extension
program. In add ition measures will be taken to ensure qua lity hospita l services and better
supply of medical drugs. T he governme nt will strengthen the measures it takes to improve
the numbe r, skills, distribution a nd management of health workers, through enhanced
training of physicians (specialists and genera l practitio ners). New systems of health ca re
financing will be explored and implemented to overcome the existing bott lenecks. An
incentive package will be developed to encourage domestic production of pharmaceutica l
products.
To increase the contribution of the private sector to health service s, e fforts will made to
improve and extend the delivery of services and their qua lity. Lessons will be drawn from
othe r countries and integrated in the initiatives to be taken to improve the private sectors
cont ribution to the health system. Mobilisat ion of externa l finance, together with dome stic
finance, in orde r to fund GTP healt h sector initiat ives, will rece ive major attention. Private
pharmaceutica l factor ies will also be e ncouraged to susta inably produce and deliver qua lity
pharmaceuticals. Generall y GTP aims to fully achieve the MDG targets for the sector.
2.3 .6 Stren gthenin g go od gnve r n a n ceand ca p a ci tybuilding
Strengthenin g institutional capac ity is critical to implement the GT P policies, strategies
and programs and there by achieve satisfactory results. Apart from other existing,
struct ura l and instit utiona l constra ints. the country' s economic growth and soc ia l
development are hindered by organ isationa l capacity constraints. Government has designed
nationa l program s, policies. and strateg ies that strengthen and sustain the country's
implementation capac ity, inst itutionally and organisationa lly. Thi s is a vita l contributio n to
the on-going proces s of democratization. For example, during the GTP period, the
In o rder to faci litate the strengthening of the stable, dem ocratic and developmental state
that creates an e nabl ing environment for development, major em phasis wi ll be given to
strengthening democratic inst itutio ns, building up the capac ity of c ivil service and c ivil
soc iety o rganisations and establishing a system for c itizens' access to information. Public
participation will be strengthened at all levels to ensure better transparency and
accountab ility in public dec ision mak ing. In addition, the effective ness of the just ice
system will be improved a nd laws will be a mended to ensure that implement ation and
interp retati on is in co nfor mity with the co nstitution. The independence, transparency and
accountab ility of co urts and the judic ial system will be ensured. Law enforcement
institutions will be strengthened by improving the knowledge and skills of the human
resources' emp loyed and by providin g the equipment req uired. Fina lly. the pub lics'
understa nding and awa reness of constitutiona l issues will be increased and the c ustom a nd
trad ition of peaceful resolution of disputes improved .
Another critical element of th is pillar strategy co ncerns ensuring transparency and
accountab ility in public decision making, as well as preventing and contro lling corruption.
In this regard, the focus will be on radica lly improving the tax and land admi nistrat ions of
the co untry. At the ce nter of such re for ms are improv ing the registration and information
systems of income, pro perty and land. In addit ion, public education and awareness creation
that bring about attit udina l a nd behav iouralchanges, as well as effective enforcement of
laws will be purs ued. The establishme nt of rel iable and un iform vital stat ist ics and
identificatio n system of citiz ens will a lso be undert aken d uring the plan per iod.
2.3.7 Empowering women and youth and ensuring their benefits
Women and Youth : The objec tive s of the GTP can only be ac hieved when the
multid imensional prob lems faced by women and youth are addressed. To th is end, the
government will sca le up its efforts to implement its Women' s and Youth Pol icies a nd
Programs. These policies contain essential initiatives that will contribute to the
participation and effec tive utilization of the untapped potential of these key soc ial gro ups.
During the GTP period, women and youth initiatives will aim to ensure eq uitable soc io-
economic and political participation by and bene fits dir ectly for, wome n and youth in our
soc iety. Unleashing the potent ial cont ribut ion of youth a nd women to natio nal
development wi ll have a profound effect on the speed, eq uity and susta inability of the
country' s ove rall gro wth and development.
Ove r the last few years major efforts were made to increase the enrolment of g irls in
schoo l, expand coverage of fem ale health se rvices, and increa se extension services to
women far mers in rural areas. These effort s incl uded also leg islative and institutio nal
refor ms to protect the rights of, a nd open o pportunities for, women . Although, progress has
been made there are still cha llenges relating to cha nges in attit udes and trad itiona l
mal practices. Government is committed to speeding up the pace of chan ge through
educa tion, by increasing the part ic ipation of women in public life. and by strengthening
women' s membership in gender based organizations.
CHA PTE R 3.
MAC ROECONO M IC FRAMEWO RK O F T HE GROWTH A ND
TRA NSFORM ATI ON PLA N
3.I. MAC ROECONOMIC OBJ ECT IVES
Macroeconomi c policy objectives for the fi ve year GT P per iod 20 10/1 1-20 14/15 are the
maintenance of macroeconom ic stability so as to e nco urage savings and inve stment by
ad opti ng a pprop riate po lic ies designed to prom ote rapid and broad based eco nomic growth.
Fisca l and monetary po lic ies will be mana ged in a manne r co nsistent with these
macroeconomic ob jec tives.
3.2 . M ACROECONOMI C POLI CI ES AND GOALS
The macroeconom ic goals of the GT P are synchronized with the o vera ll policy ob jec tives
of mainta ining the growth momentum witnessed during the PASD EP period. Ethiopia 's
vision of becomin g a middle incom e country. and meetin g its MDG target s at a minimum.
3.2. 1. Economic G rowt h, Sa vings and In vestm ent
The Ethiopia n eco nomy has reg istered a n average an nual rea l GD P growth rate of 11 %
d uring the five yea rs 2005106 to 2009110. The lesson teamed duri ng PASD EP and SDPRP
periods. is that susta inable. rap id and eq uitable gro wth is esse ntia l to the GTP .It is growth
that wil l he lp c reate employment and ra ise income. eve ntuall y e radicating povert y.
Two growth sce narios are co nside red in the GT P: Base Case and High Case Scenarios.
a ) Base Case Scenario
Under the base case scenario, Ethiopia' s economy is proj ected to grow at a n ave rage
annu al growth rate of 11 .2% . This is the average growth rate atta ined during PASDEP a nd
the GTP intends to ma inta in this growth momentum. Under the base case sce nario. it is
assumed that the economy will be able to grow provided that the same stable polic ies and
st rateg ies are fo llowed at macroeconomic and sectoral levels as adopt ed previous ly; that
prudent moneta ry and fiscal po licy ensures that inflat ion remain s at single dig its; and that
tax collection and admi nistrat ion systems are strengthened so as to increase domestic
revenue substantia lly. A ll M DO targets will be met under the base case sce nario.
Tab le 5. Real G DP Projection Ann ual G rowth Rat e ('10)
Se cto r 2009110 20 10/11 20 11/12 20 12113 2013 /t4 20 14/t!' Ave rage
Agri culture & Allied
7.6
Activities 8.5 8.5 8.6 8.6 8.7 8.6
Ind ustry 10.6 14.0 17.9 2 1.4 23 .0 23.7 20.0
T a ble 6. Pro j ec ted T re nds in the Str uctur e ofG DP by Indu strial o r igin (% sha re)
Sec to r 2009 /10 2010 /11 2011 112 2012 / 13 2013 /14 2014 /15 Ave ra ge
Agric ult ure & All ied
Activities 4 1.6 40.6 39.7 38.7 37.8 36.9 3 8.8
Ind us try 12 .9 13.2 14 .0 15.3 16.9 18.8 15.6
Serv ices 45 .6 46 .2 46 .3 46 .0 45.3 44 .3 45.6
To bring about structura l transfor mation in the eco nomy. it is expected that the industria l
sector's sha re of GDP wi ll grow 12.9% to 18.8% and the agric ultura l secto r 's sha re will
decrease from its current 41.6% to 36.9% at the end of the plan period. The service secto r's
sha re of GD P is proj ected to decrease from 45.6% to 44.3 %. Achievem ent of these target s
will provide an enabling env ironment for economic growth by balancing demand a nd
supply of agriculture a nd industry sectors.
Looki ng a t dema nd side of G Il P, t here are two mac roeconomic balances to be
co nsidered, name ly the reso urce gap between savings and investment and the trad e balance
between export s and impo rts (the ex port/import gap). In the GT P per iod prudent
macroeconomic managem ent will be adopted to ma intain these macroeconomic balances.
A single d igit inflation rate is targeted to preva il throughout the GTP period . During
20 I 0/ 11 to 20 14/ 15, G DP at current market prices is forecasted to grow at a rate of 17.2%
o n ave rage,which is lower than the rate of growth d uring the PASOEP period. By the end
of PASO EP, the share of total final consumption expenditure to nominal GDP was
expected to decrea se, but, it re mai ned unchanged at around 94%. At the end of the GT P
period total co nsumptio n is foreca sted to reach 85% while dome st ic savings are targeted to
inc rease from 5.5% in 2009/ 10 to 15% of GDP in 20 14/15 and the five year avera ge will
be 11.9%.
Gro ss domestic investment is foreca sted to avera ge 27.5% ofGDP during the plan per iod.
In 2014 /1 5 gross ca pita l for mation is proj ected to take a 28.2% share of GDP, rising from
22 .3% of GOP in 2009/ 10. During the GTP period, the savings and investment gap is
expected to narrow and reach 13. 1% at the end of the plan period. from its presen t level of
19.4% . This is a re flectio n of the gove rnment' s intentio n to raise domestic savings towa rds
the inve stment financing requirement. In o rder to e ffectively raise dome stic sa vings
macroeco nomic stability and measures that ensure an enablin g environment. such as
inc reasing financ ia l sectors accessibility and d iversifying their services. will be take n
d uring the plan period. (See Table 7 below)
Ta ble 7. Demand Side GD P as Rati o to G DP @ C u r re nt Ma r ke tPr ices (% )
.- h e r ll ~ e
(20 1011 1-
It em 200 9/10 20 10/ 11 20 11112 2012 /13 20 13/ 14 20 14/ 15 20 14/ 15)
To ease the pressure on the balance of payments. po licy and administrative measures that
promote growth and divers ification of exports will be unde rtaken. At the end of the plan
period. the share of exports to GOP is expected to reach 22.5%. a rise from 13.6% in
2009/1O.High value products such as horticulture and other new export item s will receive
major support from the governme nt. Combined with these initiatives, support will be
provided for import substituting industries so as to ease the shortages of foreign exchange
the country is experiencing. The share of imports of goods and services to GOP at current
mar ket prices is for ecasted to reach 35.7% (See Table 7 above).
h) High er Case Sce na r io
The basic assumption for the high case sce nario is the doubling of agricu ltural value added.
by sca ling up the le vel of productivity o f smallholder fann ers and pastora lists to the
productivity levels of exist ing best (mode l) fann ers. Th is places the economy on a higher
growth path tha n the base case scenario. Because of the potentia l of multipl ier e ffec ts of
the sma llholder farmers, the increase in agricultura l supply wi ll stimulate growth of other
economic sectors. Under the high case sce nario, it is assumed that the possible upward
shin of demand, caused by the doubling of agricultural value added by the e nd of the GTP
period, will be stabilized by increased supply of agricultura l sector goods that will keep the
inflation rate in single d igits.
An annual average GOP growth rate of 14.9% is targeted under the high case scenario.
Agriculture. industry and service sectors are expected to grow on average by 14.9%. 21. 3%
and 12.8% per annum, respective ly (See Ta ble 8 below). At the end of the plan pe riod the
percentage share of agricult ure. industry a nd service sector a re expec ted to be 4 1%, 16.9%
and 42.1 %. respectively. (See Ta ble 9 below)
Tahle 8. Proje cted Trend s in the St r uctur eof (;OP gro wth by Indu stri al ori gin (%, )
Sector 2009/10 20 10/tl 2011112 2012113 2013 / 14 20 t4 /15
2010 / 11·2014/15
(A ver azej
Agricu lture &
7.6 9 .5 13.5 16. 1 17. 1 18,4 14.9
AlIicd Act ivities
lndustrv 10.6 14.& 19,4 20.& 23 .7 27.9 21.3
Services 13.0 14.6 13.& 12.9 11.8 10.9 12.&
Real GOP 10,4 12.5 14,4 15.3 15 .6 16 .6 14.9
Ta ble 9. Proje cted T re nds in the St r uctur e of G OP by Indu strial o r igin (%s ha re)
Sector 2009/tO 2010111 20 11/12 2012/13 2013/ 14 20 14/ 15
AH'ra ge
(2010111- 20 14/ 15
Agr iculture &
4 1.56 39.9 39.5 39. 8 40.3 4 1.0 4 1.2
Allied Activities
Industry 12.87 13. 1 13.7 14.3 15,4 16 .9 14.8
Serv ice 45.58 47.0 46.8 4 5.8 44.3 42. 1 44.0
T a ble t o. Pro j ec ted T re nds in St r ucture a fG DP fro m th e Dem and Side lli gh Case
Sce na r io( % sha re in G OP)
Aver ag e
It em s 2009110 20 10/11 20 11112 20 12113 20 13/ 14 20 1·4115 (20 1011 1-
2014/t 5
Total Con summion Ex penditure 94.5 93.9 9 1.9 89.2 86.4 no 88.9
Gross Do mestic Capital
Formation 22.3 22.6 22.4 22. 1 2 1.7 2 1.2 22.0
Expo rts of Good s and Non -
Fac tor Services 13.6 15.5 17.5 19.5 21.7 24.0 19.7
Impo rts of Goods and Non -
Fac tor Ser vice s 33.0 32.6 3 1.7 30.6 29.4 28. 1 30.5
Resou rce Bala nce ( 19.3) ( 17.0 ) ( 14 .2) ( 11.0 ) (7 .7 ) (4 . 1) (10 .8)
Do mesti c Sa vings 5.5 6 . 1 8. 1 10.8 13.6 17.0 ILl
3.2.2.Prospect s f or G rowt h, Wellbei ng a nd Pover ty
Macroeconom ic indicators are used to understand the linkages between growth and
poverty reduction effort s. Understa nding poverty and wellbeing indicators and analysis of
poverty enables the causes of poverty to be identified. The results of poverty analy sis are
important in design ing policies. deve loping strategies and in iden tifying measures to be
taken by the government. Analysis of poverty also helps to evaluate the success of ongoing
polic ies and strategies. and thei r implementation.
Poverty ana lysis is multifaceted. The cost of basic needs approach is used to measure the
income or consumptio n expenditure aspects of pove rty. Consumption is preferred as an
indicator of welfare, as opposed to income. beca use con sumption better captures the long-
run level of wel fare than curre nt income. Con sumptio n a lso reflects better the households'
ab ility to meet basic needs and it reflects the extent of households' access to credit and
ab ility to save when the ir income is higher . For these reasons. consumption indicators
make a better measure tha n income. beca use they re flect actual household living (or
welfare) standards. For consumption to be an accurat e indicator of households' welfare it
has to be ad justed to take account of the difference in the ca lorie requirements of different
household membe rs; for age and gender of ad ult member s for instance. T his adju stment
can be made by dividing real household consumption expenditure by an adult equivalent
sca le that provides a proxy measure of the nutr itiona l requ irement of each family member.
The adult equiva lent sca le will. therefore. vary for different age groups and with the gende r
of ad ult household members. For the reasons descr ibed, many of the poverty ana lysis
instruments, such as the head count ratio, use consumption indicators rather than income
ind icators.
'Total poverty' refers to an aggregate measure of poverty that takes into account both the
food and n on-food requ ireme nts. At this point it is worth not ing how poverty lines are
establ ished. The most widely used method of estimating poverty lines is the cost of basic
predeterm ined rmrurnum calorie requ irement level (2, 100 kiloca lo ries). This measure
enab les us to establish a consistent poverty line for Ethiopia. On this basis, the Food
Poverty Line is determine d by the minimum per ca pita expenditure requ ired to acquire the
bundles of food which provide 2,100 kilocalor ies. In add ition to th is measure, the total
minimum per ca pita expenditure for basic needs (food and non-food) is used to determine
the Poverty Line. Using th is methodology the Central Statistica l Agency carried out studies
in 1995/96 that determ ined that the pove rty head count was 45.5% and the number of
people under the Food Poverty Line was 49.5%.
It is clear that, in Ethiop ia, econ omic growth is cruc ial for the eradication of pove rty over
time, for c itizens to enjoy fast grow ing living standards. This econ omic growth has to be
rapid, susta inable and fair. Fa ilure to realize such type of economic growth will place
considerable constraints on the poverty eradication agenda . It is for these reasons that
Ethiopia ' s development polic ies in general, and the GT P policies and strategies in
particular, place grea t focus on ensuring sustained, rapid, broad based, poverty reducing
and fairly distributed economic growth. Such economic growth will result in jobs being
created, as a res ult citi zens' earnings will rise and the ir living standards improve and this
will lead to the cou ntry brea king out of the poverty trap.
The rece nt study conducted by the Ministry of Finance and Economic Development,
" Dynamics of Growth and Pove rty in Ethiopia (2008)" (based on three wide ranging
studies, the Household Income Co nsum ption And Expenditure Survey, Wel fare
Monitoring System a nd the Participatory Poverty Assessment) shows that a I% per ca pita
GDP increase will result in a 1.7% decrease in the poverty head count index. Based on the
identified relationship betwee n economic growth and its elast icity to poverty, it is
ca lculated that the pove rty head count ratio and the food poverty ratio have dec lined to
29.2% and 28.2% at the end of the year 2009/ 10, respect ively. An updated calculation of
the linkage between economic growth and poverty reduction will be dete rmined when the
current Household Income Consumption Expendit ure study is completed. It is expected
that the current HICE study will revea l that the poverty head count ratio, a nd the
percentage of people living below the food poverty line, will be less tha n the current
est imates because actual economic growth has been higher than proj ections for the last
se vera l years.For th is reason the GTP boldly aims to achieve the MDG target of halving
ext reme poverty and hunger by 20 14/ 15.
3.2.3. Fiscal policy
The mediu rn-te rrn fiscal policy obj ective is a imed at ma intaining the defic it at a sustainable
level. T his requires inflation to be conta ined at single digit leve ls while simultaneously
increasing public spending on pro-poor sectors. Among the major objec tives of the fisca l
policy are to strengthen domestic revenue generat ion capacity, finance maj or investment
projects with own revenue, mobilize external grants, arra nge exte rnal borrow ing accordi ng
to the borrowing policy of the cou ntry, and to mobilize domestic borrowing in a way that
does not adve rsely affect macroeconomic stability.
improving the presumptive tax system. deve loping and implementing an aud it progra m to
cove r a ll taxes, and imp roving the adm inistrat ion o f the Value Added Tax.
Efforts will a lso be made to improve the tax base a nd bring new businesses into the tax net.
particularly where they were beneficiaries of tax incentives (tax holid ays). As a resu lt of
these measures. it is ca lculated that. by the end of the GT P period. the share of tota l
domestic reve nue and tax revenue to GOP at c urre ntmarket prices wi ll reach 17. 1% a nd
15%. respective ly. Th e share of budget de ficit includ ing gra nts to GOP at current market
prices will be ma intained at abo ut 2% on average so as to mainta in macroeconomic
stability (See Table 1I below).
Tab le II , Fisca l Projection As a Percentage of GDP at @C M P (Base case Scenario)
Average
Items 2009 /10 2010111 2011112 2012113 2013 /14 2014 /15 (2010111·
2014 /15
Total Reve nue lncludin ' Grunts 17.3 17.8 18A 19 .2 2004 20A 19.2
Domest ic Revenue 14.0 14. 1 14.2 15.3 16.8 17. 1 15.5
Tax Reve nue 11.3 11.7 12. 1 13.2 14.7 15.0 13.3
Non-ta x Revenu e 2.8 2.4 2. \ 2. \ 2 . \ 2. \ 2.2
Gran ts 3 .2 3.7 4.3 3.9 3 .6 3.3 3 .7
Total Exrcnditu rc 18.6 20.5 20.2 21.1 22.3 23.7 2 1.6
Recurr ent Expenditure 8 .4 8.9 8.6 8. ' 9 . \ 9 .3 ' .9
Capital Expenditure 10.3 11.6 11.6 12.3 13.3 [4 .4 [2 .6
Po vcrtv Orie nted ex penditures 12.3 13.5 13.7 14.R 16. 1 17.3 [5. 1
Expenditure Deficit includin g
( 1.3) (2.7) ( 1.7) ( 1.9 ) ( 1.9 ) (3 .3) (2.3 )
Grants
Dcflclt Eina ncin u U 2.7 1.7 1.9 1.9 3.3 2.3
External net l . l 1.0 0.8 0.8 0 .8 0 .6 0 .8
Domestic net 0 .5 1.6 0.9 1.\ 1.2 2.7 1.5
On the expendit ure side. resource a llocations have been guided by the governmen t's pro-
poor growth policy where by the lion' s share of ava ilable resource s are a llocated to priority
infrastruct ure and services that enhance pro-poor economic growth and soc ia l
development. Th is policy will be applied more vigorously dur ing the GTP period .
Accord ingly. the highest percentage share of tota l spe nding will be a llocated to pro-poor
sectors where ca pita l expend iture as a pe rcentage share of GOP is forecas ted to reach
14.4% at the e nd of the plan period. (See Ta ble I I).
3.2.4. Monetary Policy, Exte r na l Sector and Fina nc ial System
Monetary Policy
Ethio pia' s moneta ry policy will continue to focus on mainta ining price and exchange rate
stabi lity so as to create a macro economy that is conducive fo r rapid and susta ined
economic growth. Inflation will be held at single digits during the GTP period (20 10/ 11-
sa ving and investmen t. In this regard real intere st rates w ill be ma inta ined above ze ro
.w hile non- tradit iona l so urces of revenu e mob ilization such as bo nd sales to citizens at
home and the Diaspora wi ll be put in place . The co ntribution and co verage o f social
security se rvices w ill be im proved , wh ile policy mea sures that enco urage dome stic sa vings
fo r mac hinery and hou sing investment w ill be introd uced.
Financial system
In the GT P per iod t he financ ial sector w ill be st rengt hened wit h the aim o f es tab lish ing an
accessible, e fficie nt a nd co mpetitive financi al sys tem. One pu rpose of this initiat ive is to
increase domestic savi ng so as to s ustain the fast and sustainable grow t h req uired to
provide resource s for ex pandi ng and improv ing public services . Govern me nt will introd uce
capacity build ing measures to ra ise the efficiency of finan cial institutions and improve
bank ing practice s so as to ensure health y co mpetition, support private secto r ban ks and
finan cia l instit ution s to im prove the coverage and qua lity o f the finan cial se rvices they
provide and help t hem to minimize non -performing loans and improve the ir pro fita bility.
During the GTP pe riod, greater e mphasis w ill be placed o n strengthening modern payment
systems, deve lopi ng reg ulatio ns to inte rna tio nal sta nda rds and fac ilitat ing acce ss to
finan cia l services. It is ex pected that these init iatives will e nable t he current level of access
to finance o f 2 0% to reach 67 % by the end o f the plan pe riod.
The Nationa l Bank of Ethio pia w ill strengt hen its human resources and information
techn ology infrastructu re. The capac ity of the Ethio pian Fina ncia l Inst it ute wi ll be
st rengt hened. Information tech nology that supports the ban k informat ion exc hange s system
wilt be exte nded to micro finan ce institutions. The expan sion and improvement o f modern
IT networks, a nd their effective util izatio n by financial instit ut ion s w ill ea se
com municatio n a nd fac ilitate the flow of real time mo ney from one corner of the co untry
to ano ther. The introduction and wide r app lication of payments systems that use faster,
ele ct ronic means, such as cards, mo bile or ot her elec tro nic instrum ents, w ill facilitate
improve d bank ing services and help to red uce tran sact ion costs.
3.3. SELE CTED MACROE CONOMI C AND SECTORAL TARGETS
Ta ble 12 summa rizes the key macroeconomic and sectora l targets expected to be reached
at by the e nd o f the GT P period. T hese targets are a lso used to trac k the progress o f the
eco nomy and monitor the effect iveness of the GT P impacts as measured by maj or
ind icators. Detail s of target s are presen ted in the chapters and sec tio ns that foll ow.
Tab le 12. Selected GTP Targets
Sect c r / t nd tca t e r
Baseline Plan Ta rge t
2009/10 2014/15
The Ma cro Econom y
Real GDP growth rate (%) l OA 11.4
Sect orll nd ica t or
Baselin e Plan Targe t
2009/10 20 14/ 15
Dom estic revenue as% of GDP 14.0 17. 1
Tax reve nue as% of GDP 11.3 15.0
Total pover ty-or iented expenditure as% or GDP 12.3 17.3
To tal expe nd iture as% share of ODP 1It 6 23.7
Capital ex pend iture as% of GDP 10.3 14.4
Rec urrentexpendi ture as% o f GD!' '" 9.3
Over all balance includ ing gra nts as% of G D!' ( 1.3 ) (3 .3 )
Externa l (Net) as% of GDP 1.I 0.6
Domestic ( Net ) as% of GI>P 0 .5 2.7
Exter na l sector
Total exports as% sha re of GDP 13.6 22.5
Total imports as% shar e of GDP 33.0 35. 7
Resource gap as% s hare of GDP ( 19.3) (13. 1)
Merc handise ex port as% share of OD P 6 .7 15.6
Merchandise import as% share or ODI) 26.5 32.0
Pove rt y& Welfar e
Total Poverty Head Co unt (%) 29.2 22.2
Food Poverty Head Co unt (%) 28.2 2 1.2
EC OJ'lriOM IC DEVEL OPM ENT
Agr ieu lt u re
Agricu ltural a nd allied act ivities growt h ( 'Yo) 7.6 ' .7
Crop productivity (qVha) 17.0 22 .0
Flower (min stem) 2.7 48 5.859. 1
Land cove red with multip urpose/versatile trees (tho usands ha l 6.058 16.2 10
Number o f extens ion service bene fi cia ries (thousands) 5.090 14.640
Coffee exports t'ro nncs) 3 19.647 600.970
Meat ex ports (00 0 Metric Tonn es) 10. 18 II I
Num ber of househo lds part icipat ing. in Productive Safety Net progra m
7. 1 1.3
(mln)
Indu st ry
Su gar prod uction (000 to nnes) 3 14.5 2250
Sect orll nd ica t or
Baselin e Plan Targe t
2009/10 201-1115
Mining
Gold expo rt (kg) 3.9 07 X.700
Gold sold to NBE b ~ urtisan al miners assoc iations ( kg) 2.866 5.250
I NI;RASTR UCTl IRE Il EV ELOPM ENT
Road s
Total road length 1 road network (000 km ) -1.8.8 6-1..5
Avcragc rime taken to all- weathe r road (hrs) 3 .7 \.4
Road density [km /I 000 km 2) -1.-1..5 123.7
Road density (km /l (jOO po pulat ion ) O.M 1.54
Roads in accepta ble conditi on (%) 8\ 86.7
Area further than 5 km from all-weather muds (%) 64 29
Construct ion ornew all weather road that connect a ll rura l kc belcs
II 71.523
with main roads ( Km)
Railwa )'
Railway network (Km} - 2395
[ ne rg"v
Electric ity scr v ice co....erage (%) ,\ 75
Po wer genera ting eapae it) ( MW) 2.000 8.000
Reduce transmi ssion lincs power losses (%) 11.5 5.6
Increase number of new c ustomers (min) 2 ,
Length o f dist ribut ion lines co nstr uctio n (Km ) 126.0 38 25lW 38
Rehabilita tion powe r rransrntssto n line s (Krn) -1.50 8.130
Te teeo mm uni cation
Fixed line telephone density (%) 1.36 3.4
Mobile tele phone acces s/d istribution (%) 8.7 "
Rural popu lation telccomm unication service access with in 5km rad ius
62. 14 100
(%)
Fixed telephone subscribers ( in min ) 1.0 3.05
Mob ile telephone subsc ribers (in min) 6.52 ' 0
Internet service subscribcrst in min) 0. 187 3.69
Wat er
Ove ral l pota ble wa ter coverage (% ) 68.5 98.5
Sectorllndicator
Baseline Plan Target
2009 /10 2014/15
Jo b created thro ugh MSEs (min) - 3.0
Provision of housing and basic serv ices (n umber o f housing units) 2 13.000 370. 000
Reduction o f slum areas (%) 60 30
Roa d co nstructed with cobblesto ne (km] - 373H
SOCIAL DEVELOPMENT
Edu cation
Net primary enrolment rate (I-H) (%) H7.9 100
Primary school g irls to boys ratio 0.93 : 1 1:1
Primary schoo l pupil text bo ok rati o 1.25 : 1 1:1
Adu lt educat ion part icipation Me (%) 36 95
Total numbe r of undergraduat e studen ts in governmen t higher
185.788 46 7.44 5
insti tution s
Total number of TV ET students 717603 1.127.330
Health
Primary hea lth services coverage (%) ' 9 100
Under flve mortali ty rate (per 100(1) 101 6'
Inf ant mort alit y rate(%) 77 31
Maternal mortality rate (per IOO.UOO) 590 267
Co ntracept ive preva lence rate (C PR) (%) 32 ""
Births atte nded by skilled hea lth person nel (%) 25 60
Under one year penni3 immunization coverage (% ) sz 96
Percentage of ho useho lds in malaria pro ne area s with insecticide -
lOll ron
treated bed ne ts (%)
Reduce inc idence o f malaria 1l.7 <0.7
II IV/AIDS incidence rate (%) 0.28 0.14
Increase TB case detection rate (%) 36 75
CHAI'TE R 4.
FINANCI NG THE PLAN
Financ ing soc ial and eco nom ic devel opme nt programs is essentia l for the real ization of the
o bj ec tives stated in th e GTP. A llocation o f finance is based on the med ium term Macro
Eco nomic Fisca l Framewo rk, an instrume nt used by the go vernme nt to frame reso urce
expectations from domest ic and externa l so urces and a llocate resources to key secto rs in
line w ith the overa ll development o bjectives of the co untry. The process o f preparing the
Macro Eco nomic Fisca l Framework begin s by identify ing the overa ll reso urce e nve lop e in
the period from 3 to 5 years.
Dur ing the GTP five ye ar period, a llocati on o f devel opment fi nance will a im to s uppo rt t he
ov erridin g obj ect ive of po verty erad icatio n - with in the co un try's finan cia l capac ity a nd
wit hin the ma intenance of stab le macroeconom ic co nd itions. Ba sed on these o b jec t ives, a
larger share of total go vernme nt s pend ing wi ll be a llocated for deve lopm ent of pro poor
and growth en hancing sec to rs. Gove rnment recurre nt ex pend itu re w ill be fu lly financed
from domestica lly generated re venue whilst, ca p ita lexpend iture will be financed by
dome st ic revenue and external so urces.
Proj ections o f government reve nue, allocation of resources to gov ern me nt's prio rity
sec tors, es timates of budget d eficit. and financing under the base case sce nario are
presented in the fo llowin g sec tio ns.
4.I . G OVERNM ENT R EV ENUE
Do mestic revenue w ill be mob ilized mai n ly from ta x and non-tax so urces. Estima tes o f
revenue co llected from taxes for the fi ve year per iod 20 I0 11 1 to 20 14/5 ass ume full
imp lementati on of GTP init iativ es, inc lud ing on-go ing tax reform, improve me nt in
effi c iency of ta x ad mi nistration, and broad ening the tax base in line w ith the eco nom ic
gro wt h anti c ipated a nd the potent ia l reso urces that ca n be mob ilised . Non-ta x so urces of
revenue w ill be mob ilized from the d ividends and proceed s o f pub lic ente rpr ises.
Other in itiat ives to ra ise financ ing for the GT P inc lude encouragi ng private sa vings and
investm ent, sca ling up externa l de velopment assista nce and increas ing Fo re ign Direct
Investment (FD I). Th ere a re so urces of de ve lopment finance that do not appea r in
go vernment's budget. The se incl ude o ff -budge t fi nancing by NGOs, loca l governme nt
expe nd itures using t he ir ow n reso urces, and o wn so urce spend ing by pub lic ent er prises.
Du ring the five year GT P period, domestic reven ue, incl udi ng grants, is ex pec ted to reach
ET B 173 bIn by the end o f the plan period, up from ETB 66.24 bIn in 200911 0, o ut of
which, ET B 145.3 bIn will be mobilized from dom estic so urces a nd the remain ing ET B
27.7 bIn ET B from extern a l so urces. (See Table 13 below).
T a ble 13. Pro j ec tedGT P Revenu e R equir ement s Under Base Cas e Scena r io (in min
ET B)
Total
Items 2009 / 10 20 10111 2011 /12 2012/ 13 2013114 2014/15 (20 10/11-
2014115
Total Reve nue Including Grants 66.237 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
Domestic Reve nue 53.86 1 63.3 15 14.58 5 94.1 19 12 1.660 145.299 498.978
Tax Revenue 43.3 15 52.53 4 63.588 8 1.228 106.-160 127.212 431.022
Non-tax Revenue 10.546 10.78 1 10.997 12.891 15.200 1&.087 67.950
Grunts 12.376 16.-19 1 22.356 2·t162 25.864 27.74 1 116.6 13
4.2. G OV ERNM ENT EX PENI)ITU RE
Government developmental expenditure is determined by the fi nancial capacity of the
country where the finance is collected from tax. non tax sources of revenue a nd offic ia l
development assistance . Governm ent rec urrent expe nditure during the GTP will be based
on the base year (2009/ 10) spend ing. the growth prospects o f the country in the coming
yea rs and the assumption of a stable macro economy. Ca pital expendi ture during the GT P
period prioritizes the financing of ongoing projects a nd investments o n pro-poor sectors
(such as agriculture and rural deve lopment. food security. water. ed ucation. hea lth. roads.
rural e lectri fication. etc) that will help realize deve lopment policies and strategies set by
the governme nt and described in the GT P.
By the end of the plan period. it is expected that tota l government spending will reach ET B
20 1.1 bin. up from its ETB 7 1.3 bin in 2009/ 10. ETB 78.9 bin of the expected 20 14/ 15
expen diture will be a llocated to finance rec urrent expenditure and ET B 122.2 bin to
finance cap ital expend iture . By the end of the GT P period. expendit ure on poverty-oriented
and growth enhancing sectors will reach ETB 146.8 bin.
Ta ble 14. Proje cted gove r nment Ex pend it ures, Base Case Scena r ios (min ET B)
Tolal
h ems 2009/ 10 2010 / 11 20 11112 2012113 2013 /14 2014 / 15 (20 10111·
2014 /15
Total Expe nditure 7 1.334 92.049 106, 125 130, 187 161.-152 20 1.146 690.959
Recurrent Expenditure 32. 0 12 40.046 45.224 54.3 83 65.-177 78.9 24 284.054
Ca pital Expe nditure 39.322 52.003 60.901 75.804 95.975 122.222 406.905
Po verty Oriented Expendit ures 47.251 60.682 72.165 9 1.13 1 116.24 5 146.837 487.060
Agr iculture and Food Security 6.99 8 9.5 18 13. 123 15.905 20.302 25.699 84.547
Education 16.870 2 1.703 24.562 29.579 36.354 44.025 156.223
fina nce required during the plan per iod 58.5% will be spent on cap ital outlays and 41.5%
on rec urrent expenditure. (See Table 14 above)
4.3. F I NAN CI NG
In 2009110, the total government revenue was ETB 66.2 bin and the total expenditure was
ET B 7 1.3 bin. The budge t deficit. including gra nts, of ETB 5. 1 bIn was financed th rough
borrowing from both domestic and external sources. The budget deficit of ETB 28.11 bIn
at the end of the GTP period is expected to be financed from domestic (ETR 22.9 bIn) a nd
external borrowing (ET B 5.2 bin). During GT P period a total of ETB 75.4 bIn budget
deficit will be financed from domestic (ETB 50.6 bIn) and external borrowing (ET B 24.4
bin).
Table IS. Projecte d Budget Ga p D urin g GTP, Base Case Scena r io (in min ETB)
T ot a l
Item s 2009110 2010/11 2011112 2012 /13 2013114 2014 /15 (20 1011 1
-20 14/15
Total Revenue Including Grants 66.2 37 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
Domestic Revenue 53.86 1 63.3 15 74.585 94.11 9 12 1.660 145.299 498 .978
Tax Revenue 43.315 52.534 63.5 88 81,2 28 106.460 127.212 43 1.022
Non-tux Revenue 10.546 10.78 1 10.997 12.89 1 15.200 18.087 6 7.956
Grants 12.376 16.49 1 22.356 24. 162 25.864 27.74 1 116.613
Total Expendit ure 71.3 34 92.049 106. 125 130, 187 16 1.452 20 1. 146 690.959
Recurrent Expenditure 32.0 12 40.046 45.22-4 54.3 83 65.477 78.92-4 284.05-4
Ca pital Expenditure 39.32 2 52,(103 60.9 0 1 75.804 95.975 122.222 406.905
Poverty Oriented expenditures 47.25 1 60. 682 72, 165 91,1 3 1 116.245 146.837 -487.060
Expenditure Dcflclt ind oGrunts -5.09 7 - 12.243 -9. 184 - 11.906 - 13.928 -28. 10 6 -75.368
Dcflclt Financing 5.09 7 12.243 9. 184 11,906 13.92 8 28. 106 75.368
External net 4.13 1 ..L520 4.201 4.97 4 5.490 5.220 24,405
Domestic net 1.758 7.356 4..983 6.93 2 8,4 38 22..886 50.59 5
Privatiza tion 366 366
Proj ected expenditures presented in table 14 and 15 are based on the estimates of the
medium term Macro Economic Fisca l Framework. In co ntrast, Table 16 presents
expenditure requirements presented by impleme nting agencies. Thus. an amount of ETB
756,066 bin expenditure is estimated by the implementing agencies which exceeds by ET B
65.1 bIn compared to the estimate of the Macro Economic Fiscal Framework. Th is budget
will be a llocated in a lignment with the government's fisca l policy and base d on the sectors'
annual plan and budget. The budget defici t from the perspectives of the resource need of
Table 16. Resource need by Implem enting Secto rs , Bud get Deficit and Financing (in
min ET B)
Total
Item s 2009/10 2010/11 201 1112 2012/13 2013/14 2014 /15 (20 10/11-
2014 /15
To tal Reve nue 66. 237 79.lW6 96.94 1 11lU 8 1 147.524 173.0·1.0 6 15.59 1
Total E....pcnditu re Req uired 7 1.334 9 2Jl48 126.827 145.434 174.842 2 16.9 15 756.066
Recur rent Expendi ture 32.0 12 40.04 6 54.046 6 \. 9 75 74.507 92.436 323 .0 10
Cap ital Expenditure 39.3 22 52.002 72.78 1 83.459 100.335 124.479 ..0 3.056
Poverty Oriented expenditures 47.251.6 60.6 82 86.243 10\.802 124. 139 156. 179 529.045
Agriculture & Food Security 6.998 9..5 18 15..683 17.768 21.6XO 27..334 9 1.983
Education 16.870 2 1.703 29.35 4 33.043 38.823 46.826 169.749
l lealth 4.547.6 6.260 8.398 9.826 11.876 14.778 5 1.U 8
Road 14.601 17.30 4 25.9lJ5 32. 130 39.065 48.818 163.3 12
Water 4.235 5.897 6.813 9.035 12.695 18.423 52.863
4.4. OFF B UDGET FI NANCING OF I NFRASTRUCT URE A ND INDUSTRIA L
PROGRAM S
As shown in th e followi ng tab les. the tota l financ ing requ ire ments o f infra structure a nd
indust ria l deve lopme nt prog ra ms which w ill be undertaken o ff government bud get are
forecas ted at ET B 569. 19 bin. The fi nan cing arrangements o f these prog rams w ill be 30%
from ow n so urces of development ente rprises and 70% fro m do mestic and exte rna l
borrow ing. Domestic borrow ing wi ll be effected w it hin the fra mewo rk of the govern me nt' s
monetary po licy and a stable mac roecono mic s it uat ion. External borrowing w ill be
undertaken fo llow ing the nat ional borrowing po licy. Of overa ll financing requ ireme nt
ind icated abo ve. ET 8 3 15.43 bin (55 .4 2%) is requ ired in fore ign currency as ind icated in
t he fo llow ing tab les..
Table 17. Off Bud get Fina ncing Requirem ent of Infra stru cture a nd Indu stri al Developm ent Program s
In mln ETB
S.N. SectorzSubsec ter 20 10/ 11 20 11112 2012113 2013/14 20 14/ 15 Tota l
I Industria l Development 16,229.67 5 1,954.59 56.728.13 42 .0 ~ . 96 26,59 1.73 193 ,561.08
1.1 Te xtile and Garment Industry 1.386 .5 2,4 47. 1 3.6 11.6 3,484.6 5.0 15.6 15,945.4
~~ ~- -~~-- ~~--~- ~-~~- --
1.2 Metal Engineer ing Ind ustry 32 1,454 5.780 9.60 0 3.600 20.46 6
- -
1.3 Ag ro-Proc cssing Industry 488.6 647.5 86 2.5 888 . 1 460 3 ,346.7-_.
1.4 Chemical. Pharmaceut ica l and Ceme nt Indust ries 473.9 8.740 . 1 12.658 7.89 5.4 4.826 34.593.4-_.
1.5 Fertilizer Complex Ind ustry 75.99 3,282 .45 3.384.33 3,2 90.24 3.172 .0 1 13,205. 02-_.
1.6 Lea ther and Leather Prod ucts Ind ustry 532.9 2.569 .4 2. 129. 1 1.487.8 15 6,734.2
-- ~~--~- --
1.7 Micro and Sma ll Scale Ente rprises 2.909 .4 3.354.3 336.4 0.00 0.00 6,600. 1
--
I." Managemen t and Privatization o f Puhl ic Ente rprises 1.155.7 4.962.2 5.5 10.7 4.256.7 3.2 10. 1 19,095.4
.~- ~~-- ~~---- -----
1.9 Sugar and Associated Prod ucts Ind ustry 9.174 .68 24.49 7.54 22.455 .5 11.154.12 6.293 .02 73,57 4.86
---
Sugar Ind ustry 9.00 8.6 1 24.265 .7 22.273.58 10.964.28 6 .269.25 72,78 1A2-_. -
Resident houses of sugar indust ry 166.0 7 23 1.84 181.9 2 189.84 23.77 793,44
2 Transport 35,088 .3 43,22 3 41,795,4 30,550 . 1 11,04 7.7 161,704.5
2. \ Rail 16.64 7 3 1.036 3 1.304 24.5 16 7.293. 1 110,796.1-_.
2.2 Ethiopian Airports Enterprise 740 866 ,4 1.689.5 2. 174.3 72' 6, 198.2-_.
2.3 Ethio pian Airli nes 14,94 2.76 8.425.74 6.246.00 1,307.43 220.4 1 3 1.14 2.35
--
2A Ethio pian Marine Tra nsit Service 775 1050 1.290 1.569.1 1.98 1.6 6,665 .7
~~ --
2.5 Ethiopian Dray Port Se rvice 886.5 1.237.8 67\.2 336.7 143.7 3,2 75.9
--
2.6 Ethiopian Sh ipping Line 963.6 6 lO.8 552 .4 529 .7 530.3 3, 186.8
3 Co mmunicatio n 6,58 0 1,900 13, 190 0 0 2 1,67 0
3. \ Ethic-Telecom 6.5 80 1.900 13. 190 0 0 21,67 0, Energy 36,23 4 52,966 29,219 29,658 29,658 177,73 5
5 Add is Aba ha Reside nt I louses Co nstruction Project 2,640 2,640 3 ,080 3,08 0 3,520 14,960
Grand Tota l ( 1+2+3+4+5) 96,638.53 152,687.33 143,970.23 105,228 .20 70,666.84 569, 191.10
Foreign Currenc y Requirem ent ( % ) 62.85 53.3 2 54.0 1 53,4 2 53.46 55,42
"
Table 18. Off Budget For eign C ur rency Requirement of Infrast r uctu re & Ind ust ria l Developme ntProgram s
In mIn ETB
S.N. Secto r/S ubsecter 20 10/11 20 11/12 20 12/13 2013 / 14 2014 /15 Total
1 Industrial Development 7,246. 19 22, 582.26 25,29 7.96 2 1,873.89 14,659.7 1 9 1,660.0 1
1.1 Tex tile and Garment Industry 826,4 lA 5X.5 2, 152.5 2.076.S 2.997,4 9,511 .60
--
1.2 Metal Engineering Ind ustry' 15.8 7 1X.3 2.855.3 4.742.4 1.778.-1 10. 110.20
-- ------------- -----
I.J Agro- Proccssin g Ind ustry 293.2 38 8.5 517 .5 532.9 276 2.008. 10-_.
IA Chemi cal. Pharmaceutical and Cement Industries 499,4 6.244 .4 8.967.-1 5.657.4 3.52 4. 1 24.892 .70
-- -- - ----
1.5 Fertilizer Compl ex Ind ustry 60 .79 2,625. 96 2,707.-16 2.6 32. 19 2.53 7.6 1 10.564 .0 1
--
1.6 Leather and Leather Products Ind ustry 316 1.523.7 1,262.6 882.3 8.9 3.993 .50
--
1.7 Mlcm and Small Scale Ente rprises 2.880 .3 3.320 .8 JJJ (I (I 6.5 34. 10
--
I., Manage ment a nd Privatization of Public Enterprises 777.8 3,33 9 .6 3,708.7 2.864 .8 2. 160.4 12.85 1.30
-- ..._- --- ,-,-- --_ .._-
1.9 Sugar and Associa ted Prod ucts Ind ustry 1.576.5 2.962 .5 2.793.5 2.485. 1 1.3 76.9 11.194.50
-- -
Sugar Ind ustry 1.186 .9 2.54R.6 2,48 4.1 2.228 .5 1.376.9 9.825.00-_.
Reside nt I lo usesof Sugar Industry 389.6 4 13.9 309 .4 256.6 (I 1.369.50
2 Tra nsport 26,4 8!U6 28,247 .1-1 26,781. 7 18,-178.63 7.25-1.9 1 107,24 7.75
2.1 Rail 9.48 8.8 18.6 2 1.6 17.2 17.2 13.483 .8 4.0 11.2 62.8 22.60
--
2.2 Ethiopian Airports Enterprise J7 22.7 964.5 1.·130 .3 4535 2.90R.00
-- -----
2.3 Ethiopian Air lines 14.942.76 8.42 5.74 6.2 46.00 1.307.43 220,4 1 3 1.142.35
--
2A Ethiopian Marine Transit Service 750.6 6A 1.286 1.56 5.9 1.96 0.8 5.569 .70
---
2.5 Ethiopian Dray Port Serv ice 422.6 6 71.8 54 7.4 195 .3 R4.7 1.92 1.80---
2.6 Ethiopian Shipping Line 843.6 498 .9 520 .6 495 .9 524. 3 2.883.3 0
3 Communication 4,700 1.,360 9420 (I (I 15,-180.00
3. 1 Ethic..Telecom 4.700 1.360 9420 (I (I 15,480.00, Energy 22,27 1 3,0 717 16,256 15,853 15,853 100,950.00
5 Addis Ababa Resident I louses Co nstruction Project 3·U 26.6 9.5 9.5 9.5 89.30
Foreig n Currency Require ment (min ETIl) 60,736 .75 82,933. 00 77,765 .16 56, 2 15.02 37,777. 12 3 15,-12 7.06
Overall Fina ncing Req uirement (mIn ETIl) 96,638.53 152,68 7.33 143,9 70.23 105,228.20 70.666.8 -1 569, 191.10
Foreign Cur rency Requirement (%) 62.85 53.3 2 5·U I 53.42 53.46 55.42
"
4.5. TilE ROLE OF TilE PRIVATE SECTOR AND Til E PUBLIC
As pointed in the previous chapter, many development programs and projects are undertaken
by the government and other development actors. Previous experience shows that the
participation of the private sector, non-gove rnment organizations and the public at large in the
deve lopment process has been significantly inc reasing. Accordingly, in the next five years,
the private sector, the public and non-government organizations are expected to play a more
active role and thereby significantly contribute to the success of the GTP. The contribution of
the private sector, the public and non-government organizations is the refore included as one
c ritica l element of the country' s ove rall capacity to finance the GTP.
CHAP TE R 5.
ECONOM IC SEC TO RS DEV ELOP M ENT PLAN
5.1. A GRI CULTU RE AND R URA L D EVEL OPM ENT
5.1.1 Stra teg ic Directi on
Main focuses for ag riculture and rural deve lo pment a re increa sing the capaci ty and exte nsive
use of labo ur, proper ut ilizat ion of ag ricu ltura l land, taki ng acco unt of different ag ro-
eco logical zone s, linking specia lizatio n wit h d iversification , integ rating agricultura l and rura l
developmen t. strengthe ning the ag ricultural marketing system and effec tive implementation
o f the sca ling up o f best practices in the sector. Bear ing t hese strateg ic d irecti ons in mind. the
Agricultural Development -Led Industrialization Strategy emphasise s that sma ll holder
farmers a nd pastora lists need to use e fficiently ava ilab le modern ag ricultural techno log ies that
increase productivity and production. In add ition. the private sector will be e ncouraged to
increase its share of investment in ag riculture. The remarka ble growth that has bee n registere d
to date will be furt her strengthened in the GT ? period . In order to expa nd Ethiopia' s ex port
markets. initiatives will be put in place to increase penetration of international markets.
During the GTP period. a key strategic direction is to ensure sma llho lder ag riculture beco mes
the ma in source of ag ricu ltural growth by sca ling up interventions based o n the experience
ga ined. and ide ntification of successes achieved in the previous plan period . Experience to
date has shown that it is possible to increase the productivity of sma llholde r farmers within
sho rt period of time by better utiliz ing smallho lders' labo ur, land and by using improved but
less ca pital inten sive ag ricultural pract ices and tech nolog ies. It is a lso the case that there is a
grow ing demand for agriculture products because of growth in popul ation. growt h in per
cap ita GDP. increa sing internationa l demand and grow ing de mand for ag ricultura l products as
raw materia ls inputs to the grow ing ind ustrial sector. These nationa l and international realities
j ustify the need for increa sed investment in agricultural sector to increase productivity and
production.
Th e results realised to date sho w that it is possible to transfo rm subs istence agriculture to
more ma rket led production . The key derivers of this c hange will be improvements in
farmers' productivity an d production. Thus, to lay the foundation for ind ustrial deve lopment,
to use agric ultura l inputs for the ind ustries. to prod uce sufficient food cro ps and high va lue
products for internatio nal market. agriculture will co ntinue to play a lead ing role in the GT P
period .
a) Sma llholde r Agr ic ult ure Developm ent
Sma llholder agriculture deve lopment will focus o n the following three strategic directions.
Sca ling up of best prac t ices : Th e productivity of most average farmers is two to three times
lower than that of best fann ers. Sca ling up of best practices to bring up the productivity of
most ave rage farmers closer to those of best farm ers is the first strateg ic dir ect ion to be
deve loped and tested and, where results are encouraging, will be disseminated to farme rs and
pasto ralists.
Expa nd Irrj gatlon Developm ent a nd Improv e Na tura l Resour ces Co nse rva tion:
Accelerated and susta inable agric ultural growth will be secured by natura l resources
conservation, development and improvement of water utilizatio n, and expansion of irrigation
coverage . These a reas will remain focus area s during the fi ve yea r plan period and will
include develop ment of underground and surface water, irrigation development and natural
resource conservation. These in turn entail capacity building for fa rme rs a nd of govern ment
support structures.
Production of high value cro ps: A further implementation strategy is a focus on improving
the incomes of farmers and pastoralists. Farmers a nd pastoralists will be encouraged to shift
gradually from production of low value to high value products. This strategy will be
impleme nted gradually and will take accou nt of geographic d ifferences on specializations and
existence of favourable market and infrastruct ural factors.
b) Past oral Developm ent
Activities implemented in pastoral area s main ly focus on livestock resource. In that sense
priority is give n to water developme nt adeq uate both for the local community and livestock.
Th is activity will be implemented in relation to the improve me nt of pastora l land irrigation
deve lopment. Activities re lated to food sec urity will be implemented main ly in connection
with infrastructure deve lopments.
In area s convenient to irrigat ion development, resett lement of pastora lists on voluntary basis
will be another task to be undertaken. Identifying, selection and d issemination of improved
livestock breeds will be strengthened, and improved mob ile veterinary services will be given.
At local levels. empha sis will be give n to increasing the number of professionals and
strengthening their ca pacity so as to enab le them give support to pastora lists.
To benefit the pastora lists from their livestock wealt h, marketing system will be improved.
Thus standard livestock ce nters will be built, pastora lists wi ll be e ncouraged to organ ize
themselves into coope ratives. To implement these activities close support will be given by
the government. Extension systems will be strengthened; research ce nters will be expanded in
a way to adopt appropriate technologies that give solut ion to local problems. Generally a ll
possible measures will be fac ilitated to expand the exte nsion system integrated with the
pastoralist live lihood.
c) Private Secto r Agricultural Development
Agricultural development policy exp licitly states that private investors can partici pate in the
nation' s agriculture deve lopment endeavours. As a result of the effort s exerted to implement
this policy success has been rea lised in the floricultu re. The part ic ipation of private investors
has been mini mal in areas where extensive agriculture could be practiced, but where physical
infrastructure is weak and, as a result, the govern ment has been investing more in basic
infrastructure in these area s. Where infra structure has been expanded in rura l areas the
products that can be produced on limited land. using abundant labo ur (thu s gene rating
s ign ificant emp loym ent) as wel l a s inc reasing s upp ly of produ ce for export. Thi s type o f
private investm ent w ill requ ire co nsiderab le expansion of basic infrastructure and a plentiful
supply of lab our . T hese investments w ill be integ rate d w it h smallho lder agr icu ltu re and help
to provi de susta inable mark et s for sma llho lder fanner s .
5.1.20b jectin s
The broad o bject ive of agr icu lture and ru ra l dev elopment in the next five-year s is to ac hieve
accelerated and susta ined growt h that contributes to povert y erad ication an d achievem ent of
MDGs. The exce llent results o f. an d experie nces gained from . the imp lem entat ion o f ea rlier
as we ll as o ngo ing programmes w ill s upport the att a inmen t o f ag riculture and rura l
de velo pment secto ra l objec tives and of MDG target s by 20 15.
Dur ing the plan period natu ra l resourc es and so il co nse rvat ion. enha nced use of appro priate
techn ologies and pract ices as we ll as mark et oriented prod uctio n w ill serve as the instruments
to ensu re rapid ag ricult ural grow t h. A focu s on export led product ion w ill co m pliment
increased produ cti vity and ensu re acceler ated develo pmen t of the secto r. Ag riculture wi ll
co nt inue to be the maj or so urce of eco nomic growt h whi le sma ll ho lder fa rm ing w ill be the
major so urce of ag ricult ura l growth . The private secto r' s ro le in the sector w ill al so be
promo ted in or der to sec ure sustai ned ag ric ultura l and ru ra l develop ment.
5. 1.3 Ma jor Ta rgets
Maj or ta rget s for agr iculture and rural deve lopm entare ind icated in t he fo llowing table.
Tabl e 19. GT P T arget s for Ag ric ult ure a nd Rur al Developm ent
Description of Tar get s [ 200 9110 r 201 ·11I5
C u lt iva ted lan d
I. Total cultiva ted land utilised b ~ ' major foo d crops (mi n ha ) 11.25 12. 17
2 . Prod uction of cereals (m in hal 9 . 1 9 .6
3. Cereals prod uct ivity (qt/ha) 17 22
Coffee produ ct ion a nd p r odu cuvn y
4 . Cu ltivated land by sma llho ldc r fa rmers (h a ) -162.000 8 15,000
5. Co tfe c production (tons ) 3-1 1.000 831. ()OO
Live stoc k d evelo pm en t
6 . Cattle feed prod uct ion (qt s ) 50.000 1-15.000
7. Impro ved catt le bree ds (%) 10 .3 37
8. Product ion and distribution o f improved lives tock gene (m in dose ) 0 .35 2
9 . Proport ion ofliv estoc k vacci nated (%) 40 65
10. Proportion o f low grad e hide s and skins (%) 50 IS
II . Produ ction of impro ved animalfod der see ds (q ts) 50.000 1-\5.000
Descriptio n of Tar get s [ 2009/ 10 I 201·ms
Imp r ovin g so il fe rt ility
16. Areas under Vcrtlsot development (mIn ha ) 0.60 3
17. Acidic land treated with lime (ha] 22 10 37850
Nat ura l Reso urce Co nservatio n Prc gr um
18. Area of land re habilitated (min ha l 3.2 1 10.2 1
19. Land developed under comm unity based water shade developme nt
3.77 7.78
program ( min ha l
20. Tota larea o f land subjected to so il fertility research (min hal 0.894 2.82
2 i. Tota l area o f land covered with fore st and with forest master plan
0.70 2.20
(m in hal
22. Area of land covered with mult i-purpose trees (m In ha] 6.06 16.21
23. Forest coverage (mIn hal 13 18.23
24. Inc rea se multip urpose trees ( ha) 5062 10154
25. Natura l resources conservation act ivities in pastoral are as {ha l 200 ,000 350,()OO
Sma ll scare Ir r iga ti onProgra m
26. Land developed under small sca le irrigation (m In ha ) I 853 I 1850
Food sec ur ity
27. Number of househo lds participate in safety net programs (mIn) 7. 1 1.3
28 . Food reserve (min to nes ) 0.4 1 3
Agriru llura l Marketing
29. Coffee ex port (to ns) 172.2 10 600.970
30. Coffee expo rt earnings (mIn US!) ) 528 203 7
3 i. Increase expo rt ea rning o f o il seeds (m inUSn ) 358 11 20
32. Increase expo rt ear ning o f pulses (min USn ) 129.86 882
33. Increase the export of oi lseeds (tons) 299.\98 n-U 16
34. Increase the export of pulses (tons) 225.446 1.120.98 1
35. Increase the live anima ls exported (no.j 333.7 43 2.353. 000
36. Meat expo rt (tons) 10.\ 80 111.000
37. the a nimals and meat expo rt earnings (min USn) 125 1000
". Earning from flowe rs export (min US!) ) 170 535
39. Earn ings from ex po rt o fvegetable.herb and fruits (min USD) 3 1.7 948
40. Earn ings from ex port spices (mIn USD) 18.57 30
4 1. Export o fspices (tons) 15.594 34.2 40
42. Export of gums and incense (tons) ..U 70 10.233
43. Export earnings from gums a nd ince nse (min USD) 12.68 33.43
44. At the end o f the plan period it has been planned to generate usn 6.5 8 bln from the ag riculture sector
Description of Tar get s [ 2009/10 I 201·ms
Priv ate I nvest m ent in th e A gricultural Secto r
4 7. Prod uction co ffee and tee and other ex port c rops (mIn to ns) I 0.251 I 1.8 I
48 . Tran sfer nearly 3.3 min ha l and to commerc ia l fanning investors in transpare nt and acc ou ntable manner
Hertlcunure Development
49 . Land area und er fl owers production (h a ] 1.5&6 3.()()0
50 , Flower prod uction (mln c uts ) 2.74 8 5.859. 1
5 1. Lan d unde r the production o f vegetables. fruits an d herbs (ha] 2.472 33J)(1O
52. Prod uction ofve getables. fr uits and herbs (to ns ) 58.4 00 979.600
5.1..1 Implementation Strategies
a) Sma ll holder ag riculture
The major implementation strategy for agricu lture and rura l development in the GT P five year
period is to scale up the best practices identified to date . Agricu ltural technologies that proved
to be viable and bene ficia l, whe n tested by model farmers, will be transferred to other fann ers
as q uickly as possible and the design and capacit y buildin g activi ties necessary to implemen t
this strategy will be undertaken .
C r op production and productivity : As a result of the perfo rmance in agric ulture and rural
development. and the experiences gained, many of the condit ions that are important to
accelerate agr icultural growt h ha ve bee n identified. It is possible to increase the prod uctiv ity
o f smallholder fann ers within a short period of time. by better utilizing sma llholders' labour,
land and with the e fficient use o f ava ilable technolog ies as well as introduction o f improved
agricultural practices and tech no logies. To ensure in particular e ffective sca ling up of the best
practices the extension system will be continuo usly improved. while the ca pacity o f extension
age nts will be co ntinuously stre ngthened.
Adequate moisture areas : In a rea s with adeq uate moisture the focus during GTP
implementat ion will be on the scaling up strategy. Successful experience s, such as efficient
ways of utilizing rain water and use of benefici a l technologies. together wit h improved
agr icultura l pract ice s.will be expanded to increa se crop product ion and productivity to the
highest levels possible.
The core element of the sca ling up strategy is to exte nd those improved agricultural
tec hnologies and practices that have been tested a nd used by model farmers to a ll othe r
fann ers. To put these into pract ice, and overcome the constraints that ar ise while doing so,
continuously improv ing the exte nsion system, strengthening ca pac ity building, o rganisational
a nd support services will be important.
The main mechan ism ado pted to implement the sca ling up strategy will be to br ing together
best experiences accord ing to technology types. Th is formu lation process will be continuous
a s additional best experiences emerge during the implementation process. When improved
tec hnologies a nd agricultural practice s a re identified, training to introduce and improve skills
system will be put in place in order that market capac ity meets increased production following
the scaling up strategy.
Implementation age ncies a nd professionals will, at diffe rent stages, have to use best/model
farmers' in the training process so that practical experiences are shared in a learning process.
To ensure the benefit of experience is transferred effectively, the support of specia lists will be
provided by the extension system. At the end of the plan period, it is expecte d that, as a result
of these measures, of those farmers who participate in the scaling up program, 90% will
record product ivity results that meet the model fanner benchmark.
In order to increase cro p product ion a nd product ivity, technologies and practices thatimprove
soil fertility will be encouraged. Parallel to an increased use of chemical fertilizers.
government will introduce activities to create aware ness and deve lop skills to increase the
amount and coverage of organic fertilizer use. In areas where mo isture is adeq uate modern,
drainage methods will be introd uced in orde r to get full benefit from Vertisols. Steps will be
taken to gradually change the existing blanket fertilizer application system to one based on
so il ferti lity testing that identifie s d ifferent agro-eco logical areas, soils and suita bility for
maj or c rop types. The aim is for 90% of fertil izer use to be preceded by this type of procedure
and thus increase benefits from fertilizer application. In additio n, action will be taken to
increase distribution and use of organ ic fert ilizers, such as bio -fertilizers, that ca n easily be
used by farmers.
In adequate moisture areas, in order to increase crop production and productivity, improved
agricultura l practices will be applied. These include: the se lection of cro p varieties suita ble for
the soil type, adequate and timely farm preparation , use of the right planting time, the right
quality and qua ntity of the planting input, and mode rn planting/sowing practices. In order to
increase crop production and productivity, implementation of a ppropriate weed ing frequency
is considered important. Continuous assessment of pest infestat ions will be conducted, and
measures taken when there is an infestation. Emphasis will be given to harvesting, storing
and using matured crops in places and conditions where the crop is not exposed to pests.
While giving app ropriate focus to the use of rain water, act ions will also be taken to bring
about significant change in water use by expanding the area of irrigation schemes. In places
where it is easy to access underground water, fanne rs will be supported to construct hand dug
wells, and use them for production of garden vegetab les and permanent cro ps. Spec ial
attention will be given to small scale irrigation schemes developmen t. Technologies that
improve access to and use of water resources will be widely encoura ged and applied .
The combination of scaling up the lessons learned from best farmers with increased irrigation
is expected to double agricultural product ion. Other interventions will be integrated with these
implementation act ivities, such as Vertisol drainage and development of do uble cropping
systems based on Vert isols.
Tec hnology m ulti plica tion, supp ly a nd di str ibu tion : Expansion of the use of technology
and of its' supply and distribution systems is crucia l to increased c rop production and
productivity. For this reason, during the GT P period, improved technologies will be applied to
Livestock res ources deve lopment : Livestock development is expected to be promoted along
side the scaling up strategy of crop production in areas with adequate moisture. The focus will
be on the expansion of livestock fatteni ng a nd da iry develop ment technology. Improved
technologies for honey product ion a nd poultry resources deve lopment will also be introd uced.
The success of these technologies will require strengthe ning of support for breed
improvement, pasture deve lopment and animal health .
In the case of cattle breed improvement a strong focus will be given to artificial insemination
breeding tec hniques and the implementation of better local breeds' se lection and distribution.
Because both improved and existing breeds become more product ive when they receive
adequate and balanced feed, homestead pasture development, improvement of grazing land.
use of forest hacks. and development of pasture crops for zero grazing. will be undertaken .
Focus will also be given to preventat ive animal hea lth services such as the prov ision of
vaccination services (b efore incidence of disease), additional capac ity for vaccine storage,
tra ining adeq uate animal health specialists, and expanding service delivery faci lities,
including mob ile services.
In adequate moisture areas, based on the principles of specialization. adequate support will be
provided to farmers through the extension system to enable them increase the product ion and
product ivity of high value products. Extra focus will be given to production of coffee,
sesame. cotton, spices, vegeta bles and fruits. Broad support will be provided for preparation
and formulation of packages to sca le up outstanding experiences, and for the completion and
expa nsion of these in orde r to increase the productivity and quality of outputs and to e nsure
farmers realise increased incomes.
Research-exte nsion-fa rmers linkage: Strengthening the linkages between research,
exte nsion services a nd farmers is essential to the wider use of improved technologies and
practices. Help for farmers' to absorb technology, scaling up use of improved technologies,
and support for the technology distribution and operating systems will be further reinforced.
The research-extension-farmers councils that are coordinating this initiative at different levels
will be strengthened in their ca pability and capac ity to iden tify technological problems, to
promote joint solutions. to identify appropriate mechanisms and to become more results-
or ientated.
Initiatives to identify. test. produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock. natural resources and agr icultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies a nd their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
techn ology for irrigation.
Moisture deficit a reas: The government strategies for agriculture deve lopment interventions in
moisture deficit areas will take into account what is necessary for adequate moisture areas.
Some of these strategies are to enhance the development agents and farmers' skills, strengthe n
the organisational capacity of the extension system, and focus on the scaling up of
deve lopment that produced out standing results, such as soil and wate r conservat ion works,
these will be repl icated. Natura l resour ces intervention s will be exten ded to a ll moisture
defic it areas and ca n result in rapid rehabilitatio n, emergence of springs from the wate rshed
basin and use of the resources c reated for irrigation purposes.
Depend ing on the agro-ecolo gy, so il type and slo pe of the area, different technologies will be
put in place. These may include various types of stone and so il bunds as appropriate, wate r
rete ntion structures, ero sion protectio n technologies and ridge s, enhanced moisture retaining
technologies, dee p trenches, ponds, tie ridges and flood channels to divert rain water fo r use
on farms. Natura l resources development and protection practice s are labour intensive and
enable activities that use peop les' labou r in benefic ial and product ive ways. When
individuals, households or communities contribute labour it wi ll a lways be on a vo luntary
basis. The safety net program will be used in these cases, following the approach of commo n
asset development for the watershed develo pment works as designed.
The maj or benefic iaries of nat ural resource development and protection interventions will be
the peo ple and comm unities who will also be the owners of the faci lities provided and users
of the developed water shed in the ir loca lity. In particular, implementation will ensure that
yout h and wome n are well represented among partic ipan ts and beneficiaries of such
initiatives.
One of the resu lts to be ach ieved from watershed develo pment in moisture deficit area s is the
augmentation of underground and surface water. To th is end, the dow n stream watershed will
bene fit from irrigation and supplementary irrigat ion deve lopment and use. By this means.
mo isture defic it area s problems can be solved wh ile, at the same time, practices t hat increa se
productio n and ensure food security are put in place.
In moisture de fic it area s. through introd uction of various technologies for harvesting a nd
holding rain wate r, it is possible to produce crops once in a year. To thi s end , moisture
reta ining works will be widely implemented. Wate r rete ntion holes will be dug within a nd
arou nd far m plots to ensure the success of th is approach. Adeq uate production will be
e nsured by co nstructing a nd covering wate r harvest ing ponds using a geo-membrane, making
tie-ridge s on farms. building water and moisture reta ining works. Adequate mo isture will be
mai ntained and productive cropping will enabled by diverting flood water to farms.
In moisture de ficit area s, sma ll ruminants, honey bee and poultry develop ment wi ll be wide ly
integrated with the waters hed develop ment interventions. In th is regard spec ia l emphasis will
be given to sheep and goat production. Production of feed for these anima ls will e ncourage d
together with the wate rshed deve lopment interventio ns and by selecting from indigenous
breeds and using ava ilable exotic breed s and mult iplying them, productivity wi ll be enhanced.
In o rder to prov ide hea lth care for these animal s. vacc ine services wi ll be provided, and
contro l services provided for ex terna l parasites and d iseases such as midges.
When bee keeping is integrated with wate rshed development. beekeeping will become a more
exte nsive ly practice a nd honey produc tion increased at the househo ld level and through youth
and women associatio ns by introducing and supplying modern beehives. Improved poultry
The Food Security Program has been implemented in moisture defic it areas known for their
food insecurity prob lem s. The program has experience with household asset building, safety
net, and settle ment programs, as wel l as with off -fa rm income generating activities a nd with
the re lationships betwee n a nd integration of these activities. The safety net program will be
implemented jointly with the household asset building progra m. Th is is beca use it helps so lve
natural resource degradation problems, which in tum are a cause of the food insecurity
problem, and because it helps to build community assets. For these reasons, efforts will be
made to increase the program s effec tiveness.
By targeting those safety net beneficiaries who are involved in the household asset building
component and by giving them support for business plan preparation, training, technology
supply, c redit and extension services; the program will be better able to ensure the ir food
security. In the hou sehold asset building component, pac kages of support that are based on the
food security strategy wi ll be formulated . The packages wi ll include those which are suita ble
for moisture deficit areas and that ensure food security in low moisture areas, such as water
harvesting. The settlement program compo nent of the Food Security Program was designed to
e nsure rapid food sec urity. It is car ried out on voluntary basis and is an a lternative optio n
available to households. In addition, those households that have very sma ll plots, and land less
youth and women, will be encouraged to engage in n on-farm income generating activitie s.
They will be provided with adequate support to e nsure the ir food security by providing
packages of skill and business management training. credit and access to markets.
The early warning system wi ll be strengthened. Early warning of disaster and capacity
building for the response to disasters will be key tasks over the GTP period. Ensuring a timely
response to disaster will be included as part of agric ultural support and eco nomic
deve lopment strategies and programs. In terrns of preparedness for d isasters, food and non-
food reserves will be increa sed with storage capacity built to meet the increase, particularly of
food security reserves.
b) Pastoral de velopment:
The livel ihood of pastoralists is intertwined with livestock resources. Improving pastoralists'
livel ihood is inseparable from the development of these resou rces. Consequently, the main
emphasis will be given to water resources development for livestock and human consumption.
This initiative will be undertaken together with improvement of pasture land and development
of irrigation schemes. This approach has been tested and proven success ful in Fentalie, and as
eff orts are already being made to expand the approach to Somal i, Afar and SNN P Regional
States, it will be wide ly expanded in the five year plan period.
The Food Security Program , when implemented in pastora l areas, will be introduced such that
they bring abo ut complementary community investments and there by promote sectoral
development. For example, in areas where there are rivers, undertaking river diversion work
o r, where there is underground wate r, dr illing bore holes need to be implemented. Water
resource s released by these investments will be made ava ilable for livestock and human
consumption, as well as to deve lop irrigation schemes and improve pasture land. Together
In order for pastoralists to benefit more from livestock resources, focus will be given to the
expansion of livestock marketing system. Adequate livestock markets will be provided and
the existing markets improved. Animal transportation systems and market price information
systems will be strengthened. The pastoralist exte nsion system a nd research centers that
address the technologica l needs of pastoralists will be strengthened. Pastoralists will a lso be
encouraged and supported to voluntarily orga nize in to coo peratives so as to address their
marketing a nd other c hallenges. Efforts will be made to integrate the mutual benefits realised
by pastoralists and domestic investors involved in ancillary services such as stoc k fattening,
abattoirs and cattle trading. In addition, government support will be provided to private
investors for investment in pastora l areas in, for instance, slaughter houses and quarantine
stations that meet the required standards.
c) Private sector investment in agriculture
Horti cultur al developm en t: Cluster based deve lopment that has deve loped in selected areas
around horticulture export ventures, particularly those supported by greenhouse technology,
will be strengthened. Measures will be continuously taken to add ress the three maj or
problems of the sector: marketing problem, logistica l constraints, a nd transport limitations.
These problems will be addressed in co llaborat ion with actors in the sector. New land with
basic infrastructure will be identified and held in a land bank for new development clusters.
Recognising, the expansion and increasing viability of farms in the vicinity of Addis Ababa,
arrangement s will be made to encourage similar cluster format ion and economic integration
around other major cities. In orde r to minimize initial investment cost, favourable conditions
will be put in place to produce green house facilities, irrigation pipes, etc. Efforts will be
made to increase the participat ion of Ethiop ian investors in hort iculture develop ment and
integrate them with farmers engaged in horticulture production in d ifferent areas. Actions will
be taken, where necessary to encourage livestock breeders a nd seed supplie rs in the country,
increase the number of horticulture investors, input suppliers a nd service providers within the
sub-sector, and promote and encourage the aims of these activities.
In the five year plan period, smallholder far mers will be encouraged to participate in an out-
growers scheme for production of exportab le vegetables, fruits, spices a nd herbs. The scheme
will adopt a rigorous monitoring and eva luation system that includes pre- and post production
benchmarks and standards, and include human resources development that provides support
from experts with practical skills and knowledge.
Large sca le fa r ming deve lopment : Large scale farming will be undertaken by private
investors in lowland areas where abu ndant extensive land ex ists will be expanded and give n
due attention, in the next five years. The necessary arrangements will be made to increase
private investors' participation by identifying a reas that are not inhabited but are suitable for
agriculture. Exploratory studies will be conducted to determine which forms of agricultural
production enterprises are most suitable for each a rea identified. These areas and the data
concerning them will be registered and organised in a land bank. An ef Tect ive land
administration system and implementation agency that e nsure transparent and accountable
land leasing a nd land use will be established. The government will encourage investment in
Every effort will be made to ensure private investors receive etlicie nt services from
government. While supporting private investment in large scale farms, government' s focus is
to e nsure that the products from these farms are primar ily for export or raw materials for
do mestic industries. For these reasons, emphasis will be put on cotton , date palm, tea, rubber
tree a nd similar types of crops. Double cropping systems of production will be encouraged.
d) Agricultural Marketing:
A shin in the att itudes and production processes of farmers and pastoralists from subsistence
to more market driven production has started to occur. This involves a change in attitude and
life style a nd a new focus on internationa l markets. Farmers and pastoral ists will be helped to
shin gradually from the product ion of low to the product ion of high value products and to
ensure that their incomes increase as a result. The transformation of the agricu ltural sector,
especially in terms of rap id agric ultural diversificat ion and comme rcialization, must be
complimented by an effective marketing system.
Modern agricultural marketing systems, such as the marketing practiced through Eth iopia
Commodity Exchange, will be strengthened. Initiatives that contribute to improving the
agricultural marketing system include identifying and expanding best practices of model
farmers, improving the quality of agric ultural products, strengthening monitoring a nd support
systems at a ll levels, improving market infrastructure and the agricultural marketing
information syste m, building the capacity of the market actors, and strengthening the capacity
and participation of cooperatives. During the GTP period the primary markets wi ll be
effectively linked to the Ethiopian Commodity Exchange system so as to create an integrated
and efficient marketing system.
To improve the agricultural marketing system a number of initiatives will be taken in GTP
period. The experiences of best small scale farmers will be clea rly identified and be scaled up
from kebele to federal leve l. Quality control of agricultural products will be put in place and
the marketing system estab lished. A strong mon itoring and support system from regional to
kebele level will be put in place a nd will se rve to ensure the integrat ion and perfor mance of
the market. Prima ry markets will be estab lished and strengthe ned. Market infrastructure will
be provided and market promotion stre ngthened so as to iden tify and penetrate new markets
and increase the sha re in existing markets. An agricultural marketing information system will
be estab lished so that infor mation can be delivered to users on a timely basis. The capacity of
the market actors will be enhanced, agricultural product qual ity ensured and proper sta ndards
set. Coo peratives will be promoted to play a significa nt role in the marketing syste m. The
focus will in particular be on identifying the problems of ex isting coope ratives and thereby
undertak ing measures that enhance their capacities.
The government will work closely with private actors in order to address market problems of
particularly certain items. In this regard the government will work closely with a ll
stakeholders to rectify the market, logistics and transport problems obse rved in horticulture,
live animal, meat and other crucial export items.
e) Research-extension-farm ers linkage:
Initiat ives to ide ntify, test, produ ce and dissem inate new technologies will be introduced.
These initiat ives include resea rch o n crop, livestock, natura l resources and agr icultural
mec hanization. Supply of new technologies will incl ude the impo rtat ion and ada ptatio n of
ex isting proven technologies and the ir local productio n. Another initiative will involve
application of modern research tec hniques a imed at shortening the time it takes to supply
technology for irrigation .
t) Buil din g th e capac ity of impl em enters
The sca ling up strategy triggered to ac hieve a meanin gful increase in smallholde r production
and productivity is discussed ea rlier in this chapter. The init iatives involve imp rovement of
so il fertility, implementing improved agricultural practices, technology multiplication, and
improved supply and distr ibution. To successfully implement these initiatives, bu ilding the
capacity of a ll the imple me ntation age ncies and individ uals is a dec isive issue. Support to the
agricultu ra l secto r will be strengthened in terms of the effective ness of huma n resources.
o perations a nd o rganizatio ns,at all levels. The development agents who provide spec ialized
services direct ly to fa rmers will be helped to increase the ir skills a nd mot ivatio n. C lea r
procedures for how they ca n access suita ble short a nd long term training will be put in place.
To provide fo r those areas where development agents are not adequate in number, the
Agricultural Technical and Vocationa l Educat ion and Tra ining college s will tra in additional
development age nts in the areas of ag riculture develo pment, an imal hea lth and cooperat ives.
In order to increase farmers' motivat ion, thei r tec hnologica l skills and ability to de ploy
improved agricultura l practice s will be improved. This initiat ive will use the o utstanding
practice s of model fann ers' via practica l training sessio ns a nd materials at farmers' t ra ining
ce nt res. A simple fanne rs' extension serv ice that enables transfer of model farmers'
ex periences, such as development groups, will be used as a preferred experience exchange
approac h. T he farmers training ce ntres as one of the agencies that will be responsible for
enhancing farmers' skills will be ex panded and those which are fully o perationa l strengthened
by increased support and equi pment provision as we ll as by setting up organ ized
dem onstration farms.
5 . 2. I NDUSTR Y
To e nsure faster and sustained development of the industria l sector, favourable conditions will
be created for ind ustry to play a key role in the economy. To this end, particular emphasis will
be given to two ma in sub-sectors. First the ma in strategic direction will be to suppo rt
expansion a nd development of micro and small enterprises. In addition. efforts will be made
to further develop medium and large sca le industr ies.
5.2. 1Strategic Directions
Agricultural Development Led Industrialization is the fundamental building block of
industr ial development in Ethiopia. To support th is key po licy, the private secto r will be
promoted so that it ca n play a more significa nt role in susta ining eco nomic growth. The
government' s industria l development st rategy states that ensuring accelerated and susta ined
industrial development is a fundamental policy direction . To implement th is policy, the
environment conducive for the emergence of new MSEs and support that increa se
the productivity of the existing MSEs wi ll be put in place. T his strategic direction
will enab le the development of broad-based and competent private secto r. The
expansion of MSEs in urban areas will also resu lt in large sca le job c reation and
thereby poverty reduction. The development of MSEs is a lso c ritica l for
stre ngthening sustaina ble rural-urban and urban-to-urba n functional and economic
linkages. The expansion of MSEs is crucial too for sustaining the rapid growt h being
witnessed in the agricultural sector.
b) Medium and large industries development: particu lar emphasis will be given for the
following medium and large scale sub-industries:
I . Textile and garment industry,
2. Leather and leather products industry,
3. Sugar and sugar related industries,
4. Ce ment industry,
5. Metal and engineering industry,
6. Chemica l industry,
7. Pharmaceut ical industry, and the
8. Agro-processing industry,
c) Industria l zones development: based on their feasibility ind ustria l zones that are
suitable for establishing medium and large scale ma nufacturing ind ustries will be
deve loped.
d) Public enterprises management and privatization: The capacity and management of
public ente rprises as we ll as privatization will be enhanced.
5.2.2 Objec tives
The development ob jective s fo r the industria l secto r are to
I . Create a broad-based spring-board for competitive dome stic industria l and private
sector development;
2. Create employment opportunities and thereby reduce poverty;
3. Support susta inable deve lopme nt of agriculture;
4. Increase industria l production and productivity by fully utilizing the existing capacity
of industries;
5. Promote medium and large industries that use domestic raw materials labour;
6. Create a strong foundation for the sector to sta rt playing a leading position in the
national eco nomy, employment gene ration, and foreign exchange earnings and
savings;
7. Strengthe n the sector 's capacity to produce locally equipments, machinery and spare
parts.
enterprises. Major ta rgets to achieve this objective and implement the policy direction are
presented in the following table.
T a ble 20. GTP T a rge ts for Micro and Small- Scale E nte r pr ises
Description of Ta rgets
1. Provide comprehensive support to micro and small scale enterprises so that they create employment
opportunities for abo ut three min people. Achievement of this target will enhance citizens' income.
contribute to a rise in domestic sav ing. and enhance the benefits of women and youth from the sector so as
to reduce unemploymcnt and poverty.
2. Provide Training of Trainers lilr 10.000 professionals in the sub-sector.
3. Provide capacit y building and basic skills training for about 3 mIn operators in the areas of
entrcprcncurships. technical and vocational skills .
4. Prepare and develop 15.000 ha of land lor working premises. and const ruct shade and build ings for MSEs.
5. Provide micro cred it and marketing information and work with producers to identify bottlenecks and
provide suppo rt where solutions arc ldcnrlfled.
b. Medium and La rge Sca leManu facturin g Indu stries
Brief descriptions of the objec tives for each designated industry under medium and large scale
manufactur ing industries are presented below. The target s during the plan period are
presented in summary for all designated medium and large scale manu facturing industries in
the table below.
Textil e and Garment Industry : The object ives for the textile and gar ment industry include
maximising utilization of existing production ca pacity. increased expo rt earnings. and
increased investment in the sub-sector. This will be ac hieved main ly through the provision of
support and by creating an e nvironment conducive to the industry's development.
Leath er a nd Le ather Products Indu stry : The objectives for the leathe r industry are to
expand production of locally produced products, in terms of both variety and qua lity, as
substitutes for imported leather products. increase fore ign exchange earnings. a nd strengthen
the technological capa bility of the industry. It is ex pected that these o bjec tives will be met
mainly by the establishment of new investment proj ects. expa nsion of existing operation s and
by improving the production and productivity of the industry.
Suga r and Relat ed Products Indu stry : A key ob ject ive for the sugar and related products
industry are to produce suffi cient sugar production to meet the loca l demand of sugar
product ion .Sugar and re lated products production will be expanded so as to support the
supply of energy/power and other key economic activities. The contribution of the suga r
industry to overall economic development will be increased as will job opportunities. For the
effective implementation of the ind ustry' s objec tives. human resource de velopment.
instit utional ca pacity building and re levant research and technological ca pac ity will be
e nha nced.
Cement Indu str y: The objectives of the cement industry a re to fully satisfy local de mand for
Table 21. GTP Targets for Medium and Lar ge Scale Manufacturin g Industrie s
Descrilltion of 'Ie xnfe and Ga r ment Indust ry, Tar get s
1. Raise the gross value of prod uction oft he textileand garment industry to usn 2.5 bin by the end of the
plan period .
2. Scale up the prod uction capacity of the rcxtile and garment industries h)' an additiona l 90% during the plan
period.
3. Raise foreign exc hange earnings from the textile and gurmcm industry. by the end of 20 1 ~ ! 1 5 to US!) 1.0
bin.
4. Create new employment opport unities that contribute to the reduction of unemployment. for a bout~ O .O OO
citize ns d uring the plan period.
Des{"rip.tion of L eather Indu st ry'Targets
R. Raise annual production of sugar and ethanol to 2.25 min tons. and 3 0 ~. OO () m3. respectively . and also
generate 607 MW of electric power. by the end of the plan period .
9. De velop a n add itional 200.000 has of land planted to sugar cane.
10. Generate USl>66 1.7 min foreign exc hange earnings from the export of 1.246.000 tons of sugar. or which
623.()()Otons is rJW and 623.000 tons is white sugar.
11 . Raise sugar cane prod uctivity to 155 tons per ha. by the end ofthe plan period.
12. Create additional employment uppon unltics for morc than 200.000 citizens.
Descrilltion of Cement Indu stry' Tar get s
13. Raise the country' s total ceme nt production capacity to 27 min tons (a day. month. annum) by thc end of
the plan period.
14. Achieve an annual cement per capita consumption or 300 kgs.
Descrilltion o f :\Ietal and En gineerin g Indu st ~ · Tar gets
15. Increase the gross value of domestic products of the industry to ETB 10 1.4 hln.
16. Raise the capac ity'ut ilizatio noft he industry to 95%.
17. Improve annual per capita metal consumption to 34.72 kgs
l R. By improving the product io n and techno logical ca pacity of the industry increase local prod uction capacity
of man ufactured parts and components for selected major manufacturin g industries.. namely leather. textile.
sugar. cement. agro-processlng, construction a nd ve hiclebody industries 1090%. 35%. 85%. 85%. 75%.
95%. 85%. respectively.
Chemical Industrie s
Brief descriptions of the objectives for eac h designated industry under chemica l industries are
presented below. The targets during the plan period are presented in summary for a ll
Soap and Detergent Indu stry : The ob jective of this industry is to create suf fi c ient local
capac ity to wholly substitute imported soap and detergent products with local products.
Paper and Paper Product s Industries: The objectives for the pulp and paper industry are to
c reate the capacity to substitute imported products with local products sector.
Plastic and Related Products Industries: The obj ective of the plastic and related products
industries is to substitute imported plastic products with locally produced products.
Rubb er Tree Industr y: T he obj ective of the rubber tree industry is to create the capacity to
manufacture natural rubber locally so as to substitute wholly for imports of the product.
Table 22. GTP Targets for Chemical Industries
Des{"ription of T a rget s
I. One Fertilize r Indu str y ("o mlliu will be established to partially fulfillocal demand.
2. C a ust ic Sod aand Soda Ash Indu strie s Establi sh a caustic soda man ufacturi ng plant that can produce
50.0 00 IOns of caust ic sod a per an num10 meet fully the produce s local de mand
3. C a ust ic So d aand Soda Ash Indu stri es Establish a sod a ash producing plant that ca n produce 35.000 Ions
o f soda ash per an num to meet fully the pro duce s loc al dcm and.
4 . Soa p and Detergent Indu str y Establish new factories that can produce 166.000 tons of soap and detergen t
prod ucts.
5. Soa p a nd Detergent Indu str y By the end o f 20 14/ 15. raise the capaci ty utilization o f soa p and detergent
factories to 90%.
6. Pap er a nd Pap er Pr odu ct s Indu stri es Estab lish the capaci ty' to produce 4 10.000 tons of paper a nd
3 15.000 tons of pulp throug h new invest ment. by thc e nd ofthc p lan period.
7. Pap er and Peper Pr odu ct s Indu stri es By the cnd o f 20 14/15. raise the capacity utilization of the existing
paper produc ing factories to 98%.
R. Pla sti cand Relat ed Pr odu ct s fa ct ori es. One plast ic factor y will established to partia lly fulfi l the loc al
de mand and s ubstitute for imported plastic input s and products .
9 . Rubb er Tree Indu stry The target is to; Establish cultivation of 3.000 has o f commercial rubber trees. and
produc e and supply 10.000 tons of natu ral rubbe r latex per an num with the invol vement and ownership of
Rubber Tree Developm en t Nati onal Nucleu s Projec t. fa rmers. and investor s.
10. Rubb er Tree I ndu stry Estab lish a processing plant producing 6.700 tons o f tech nica lly spec ified rubber
(TS R) an nua lly.
Pharmaceuticals Indu stry
The objectives of the pharmace utical industry a re to create the capacity to produce essential
pharmaceutical products that substitute for imported products a nd also supply export markets.
Th is will be achieved by improving the utilisation o f existing capacity and the establishment
o f new industries.
Table 23. GT P Targets for Pharmac euticals Industry
J)es{"rinti on of T a rget s
Agro Processing Industry
The objec tives of the agro-processing industry are to increase the productivity and capacity
utilization of the existing industries. support and promote the establishment of new industries
so as to increase the sub-sector's production both to local and foreign markets.
Table 24. GTP Targ ets for Agro Processing Industry
Desc ription of T a rgets
I . To raise the productivity of the beverage ind ustry by increasing its capacity utilization to 90%
2. To generate usn 300 min from the expo rtof agro-processcd products.
c. Industrial Zones Developm ent
The main purpose of develop ing industrial zones is to attract more investment and investors
by providing la nd with essentia l infrastructural services and creating an attractive
environme nt for investors. The initiative contributes to the overall economic development and
poverty eradicat ion by creating emp loyment opportunities. enab ling increased exports and
foreign currency earnings. and providing local goods that substitute for imported goods.
Accordingly the GTP target is to establish at least 4 feasible industrial zones by implementing
the following strategies.
I. Solve the problems devel opers e ncounter in acquiring basic infrastructure services such
as land. P O\\i'Cr. telecorn. road. customs. etc. in a timely manner.
2. Expand and strengthen training centres and institutions so that developers have access
to a plentiful supply of skilled and competent human resources.
3. Assist develope rs and attract foreign investment to the industrial zones.
4. Cover 30% of the cost of providing basic infrastructure services such as water.
telephone. power. roads. etc.
d. Public E nter pr ises Management a nd Privatization
A main obj ective of public enterprises manageme nt and privatization is to improve the
operational performance of public enterprises and thereby increasing their competitiveness
and effectiveness. In addition. the reform with regard to public enterprises management and
privatization aims to increase export earnings. A high level of corporate leadership and
management will be ensured. Feasible projects in areas the private sector is unable to finance
will be established so as to rectify market failure and there by foster econom ic development.
Table 25. GTP Targets for Public Enterprises Mana gement and Privatization
Descripti on of Ta rgets
I . To raise the value added amount from public enterprises 10 usn 5.32 bin and an overall growth rate of
19%.
2. For all public enterprises to achieve 100'%capacity utili .....ation.
deve lopment will tak e into co nsiderat ion the d iffere nt stages o f dev elopmen t of the
e nterpr ise s.Acco rdi ng ly,the suppo rt pro vided w ill vary depend ing o n whet her th e enter pri ses
are at sta rt ing, growth or ma turi ty stages of development. Yet the strategy wi ll pa rt icul a r ly
e ncourage enterpri se s th at d isp lay entrepre neu rsh ip, an d that are beco m ing mo re and mo re
com petitive in t he market. T he seco nd implem enting strategy concerns prom oti on of sav ings.
Train ing and comp leme ntary s uppo rt w ill be prov ided to encou rage savings a nd increase the
capital ofMS E em ployer s and em ployee s. The micro cred it s upport sys tem ce nter s aro und the
use of o wn init ial cap ita l a nd sa vings to sta rt up a bu siness. To supplement this however , an
accountab le, efficient an d tran sp arent mech an ism w ill be put in place to enab le the prov is ion
o f c redit to MSE s. In add itio n, mechan ism s wil l be put in place to he lp MSE s wit h access to
produ ctio n and ma rket ing prem ise s to ea se their cap ita l problem s.
Co nt inuo us tra in ingand aware ness c rea t ion initiat ive s w ill be del ivered to MSE o wners to
nurture the ir entre pre neursh ip. T here w ill be further ex pan sion of th e industria l exte nsion
service in urban areas to improve the pro duct ivity and co mpetitiveness o f MSE s. The TVETs
will serve as s kill and technology centers that s uppo rt MSE s th rough technica l sk ill and
e ntrepreneurship tra ining, tec hnology tran sfe r an d imp rovement s, and business co uns elling .
The TVET w il l s uppo rt MSE s by en su ring a good s upp ly o f skil led labo ur th at will be
integra ted w ith the industr ia l deve lopm ent exte ns ion sys tem . Govern me nt 's develo pmen t
pro gram s wil l be desig ned in a support ive man ne r, to develop and imp rove capaci ty o f MS Es.
Government will put in p lace s upport ive mark et mec hanism s s uch as ex port ince nt ives,
link ing MSE s to med ium and large sca le manu facturi ng indust ries and access to agricultura l
o utputs fo r MS E produ ct ion input s.
Medi u m and la r ge sca le m anu fa ctu r in g ind ustrie s : Here too , o ne of the st rateg ies is to
strengthen the poli cy and regulato ry env iro nme nt for pri vate sector dev e lopme nt. By
increasing tran sparency and eli m inating re nt seeking att itude s, Ethiopia n e ntrepreneu rs wil l be
enco uraged to increase their inve stmen ts in, and thus the produ ct ivity o f, med ium and large
sca le ma nufacturing indu st rie s. An env ironment condu cive to inc rea sing the con tri bution of
th e ma nufacturi ng secto r to the ec o nomy will be c reated by bui lding the capacity of Et hiopia n
invest ors to co lla borate wit h fore ign inve stor s. T o increase the poo l of adequate ly train ed
hu man resources, foc us will be g iven in higher education a nd in TV ET to supply o f th e
hu man resources w ith the knowle dge and sk ills requi red by man ufacturi ng industries. The
res ea rc h inst itute s w illbe further strengthe ned to s upport the productivity o f ma nufactu ring
industr ie s. Fore ign technica l support will be reorie nted towards st rengt hening lead ersh ip an d
to enha nce tec hnology transfe r and build capacity o f pro fess iona ls.
Wit h regar d to land s upply and services , an efficient and effect ive sys tem w ill be put in place
to pro vide serviced land at a n affordab le price fo r inve stm en t in ma nufac t ur ing. Serviced
industr ial zo nes w ill be devel oped . Industries that produce for the export market and prod uce
goods that subst it ute for imports wi ll be espec ia lly enco uraged throug h provision o f bett er
access to cre dit an d other ince nt ive mec hanism s.
T he efficiency of th e privat izat ion proce ss wi ll be furt he r stre ngthened so as to t ran sfer th ose
sta te ow ned e nte rprise s ide nt ified to the private investo rs. St rategies wi ll be put in place to
5.3. TRADE
5.3. t Strategic Directions
The trade sector plays a sign ificant role in susta ined econ omic grow th in market-o riented
eco nomic system. In t he co ming five years, ra ising the etlicie ncy and co mpetitiveness o f the
sector. strengt hening dom estic and fore ign inve stment a nd trade, eradic ati ng rent seeking
behaviours. establishin g a favourable env ironment for produc tive investors. promoting a
com petitive and efficie nt dome stic trade and d istribution system, ensur ing co nsumers' rights.
strengthening co nsume r' s coo peratives. and strengthening the transpar ency, fa irne ss and
accountability o f the legal fram ewor k for trade activities will be the main st rategic d irect ion s
of the sector.
5.3.2 Objectives
The main o bj ectives, for the sector a re to e nsure mode rn and fair trad ing practice s, to improve
the transpar ency and fairness o f the instit ut ional and orga nisat iona l fram ewo rk for trade
o perat ions. Emphasis w ill a lso be g iven to intensifyi ng intern at ional trade and improv ing
dome st ic marketing sys tems by strengthe ning con sumers' co operatives and supporting access
to viable market o ppo rtunities.
5.3.3 Major Targets
Introduce fundamental change to improve trade registration and licensing sen/ices : At
all level s of trade adm inistrat ion, a uniform and harmoni zed system of trade registrati on and
licensing will be esta blished to inte rnatio nal standards . The trade registration and licen sing
system w ill ensure fair and transparent tran saction s, easy access to services and focu s o n the
professional e ffic iency and co mpetency o f services provided to the business co mm unity.
Support consumers' right s and security by improving the regulatory framework for
trade : To provide an effect ive and enabling regu latory framewo rk for trade, appro priate
cont ro ls will be put in place that imp rove the role that the business community plays in
ensuring fa ir co mpetition and identify so lutions to preve nt ha rmful pract ices.
Increase the benefits accruing to Ethiopia from international systems governing trade
relations and negotiations : The a im is to bette r integrate Ethio pia into the m ultilateral
trad ing system so as to broaden the benefit s from market opp ortu nitie s and increase
investment flows.
Strengthen the marketing system for domestic product s : The ta rget a ims to increase
product ion and ex port di v ersifi cat ion; esta blish an integrated dom estic market ing system and
strengthen expo rt development through creation o f an integrated ma rketing system.
St r engt hen the capacity of cooperatives : The target w ill ai m to st rengthen the institution al
framework a nd imp rove the human resou rce ca pac ities o f coo perat ive s.
5.3.4 Implementation Strategies
Introducing fundamenlal change in trade regi stration and licensing services: By rev ising
Ensu re co nsu mers' ri ght and sec ur ity by e nha ncing trad e re gulations : Ensuring the
existence of fa ir trade that affirms the consume r's right and benefit will contributes to
accelerate d eco nomic grov..t h a nd social develo pment. With this focus, and on the basis of
free market principles, a con sistent system will be estab lished to ensure fa ir and efficient trade
registration and licensing. a nd hea lthy and fair competition among the business community.
Where harmful or illegal business practices that damage consumers' health. or reduce the ir
safety. governmen t will con tinue to act in consu mers' interests. To this end, consume rs'
associatio ns will be organized and supported logistica lly, with finance. technical support and
human resource development; the overa ll aim is to ensure consume rs pay a fair price. These
strategies will help to ensure that consumer association s play a positive and beneficial role in
regulating prices. On the other hand. the legal and regulatory framework to minimize conflict
betwee n the business community and co nsume rs will be established and implemented.
Cond itions th at would facilitate to en sure benefits fr om trade relations a nd negoti alions:
A key implementation strategy is to integrate the country into the multilatera l trading system.
Th is will be achie ved by successfully comp leting the World Trade Organ isation accession
process and strengthening regio nal trade integration with the inter-Governmental Authority
on Development. Sana'a Forum. The Com mon Market for Eastern and Southern Africa
(COMESA) and the COMESA ·East Africa n Community-Southern African Development
Community Tri partite. The purpose of these act ions is to transform the trade negotiation
process to a highe r level of effect iveness. A further task is to. conclude the Economic
Pa rtnership Agreement with European Union. Fina lly. bilatera l trade relations and
negotiations will be improved with a ll part ies where mutua l adva ntages are identified.
Sir eng ihening dome slic p rod ucl markelin g system: Implementation act ivities will focus on
integrating domestic product marketing systems, increasing production and exchange
coverage and strengthening export deve lopment. The domestic product marketing system will
be strengthened with the object ives of ensuring fair, transpare nt. participato ry and cost
effecti ve transactions as well as fair price s. Support will be given to promote exports. bu ild
capacity. deve lop better use of information technology and develop access to finance and
log istics. These activities will be planned and carried out in co llaboration with a ll
stakeholders.
Sir eng ihening and suppor ling coo pe ra tives ' capaci ty: The problems of existing
cooperat ives, and of establi shing new cooperatives, will be thorough ly studied and
conc lusions implemented. Coo peratives will be supported with capacity bu ilding, information
technology development, acce ss to finance and logistics developments and strengthe ning of
organisational and man power ca pacities.
5.4. M INING
5..... t Stra tegic Direcli ons
For the mining sector, the governme nt' s main focus is to create a favourable envi ronment for
private investors for exploration and development of mineral reso urces. Among othe r
5....2 Objec tives
Mineral exploitation holds enormous importance for agriculture. urban deve lopment.
industr ial development. construction. e nergy and othe r economic sectors. T he core o b jec tives
fo r the sector in the plan period include estab lishing accurate estimates of and utilis ing the
reserves of minera ls that co ntribute to increased agricultural production through improving
so il productivity. An additional area of focus is land ex ploration. identifi cation and utilizat ion
to determine water quality a nd quantity for domestic consumption and irrigati on. Exploration
to ident ify minerals whose exp loitat ion wil l substitute for imported minera ls will be carried
o ut. For co nstruction and ind ustria l sector inputs. exploration fo r and exploitation of go ld.
platin um. ta ntalum and high value gemstones and other minerals will be initiated. These
actio ns will a lso help increa se forei gn curre ncy earnin gs. Exploratio n and exploitatio n of
c lean and renewa ble geothe rma l reso urces will take place. Substitution of mineral imports by
increasing the volume and types of mine rals produced by large and sma ll sca le licensed
o perators is a key o bjective. Artisana l miners will be promoted. so as to increase production
significantly. by improving the mining methods and facilitatin g access to mineral markets.
Speci fic o bj ectives fo r geo-scie nce data a nd minera l exploration are to improve the gee -
science data coverage o f the co untry. provide geo-scie nce data to international sta ndards and
that meets the needs of investors.
5....3 M ajor Ta rge ts
The mining sector targets for the plan period are presented in the following table.
Ta ble 26. GTP Targe ts for the M ining Secto r
Descrtptl on of Ta rgets 2009110 I 20 l·fIlS
I. Increa se cove rage (of the cou ntry] o f geologica l related
marmine a nd studies as follows
aj Geologica l mapping coverage at a sca le of 1250.000 (%) 51 100
b) Gravity studies coverage at 1500 .000 scale (% ) 8( ) 100
cj Ge och emi stry& mi ner al potential map prepa ration & ano malous
2.7 4
area s coverage at a scale of 1100.000 (%)
d) Ai r born geop hysics data coverage (%) 30 95
ej Gee-hazard studies coverage. at a scale of 1250.000 (%) 9.6 27. 1
f) Hydro- geologica l map ping cove rage. at a scale of 1250.000 (% ) 42 .0 83.7
gj Deta iled hyd ro-geol ogical stud ies (km 1) 3AOO 30AOO
2. Increa se evaluated and deli nea ted areas o f po tent ial industr ial minera ls
4' 77ex plorat ion. at a sca le of 150.000 (%)
3. Cond uct metall ic mine rals exp loratio n. eva luate po tent ial at a scale o f
40 63
12000- 15000. a nd m ise del ine ated potent ial areas (%)
4. Det a il coa l/oi l shale ex plorati o n and po tential evaluat ion in ce ntra l
12 20
Ethiopia. and increase delin eated potent ial areas (% )
Description ofTa rgcts 2009 /10 2014 /15
9 . Con tinue explorat io n o f 40 M W geoth erma l e nergy sourc e for powe r
12. 5 100
supp ly in Al uro Langano (%)
10. Incr ease co unt ry-w ide core dr illing ( 01) 7.00 n 16.000
I I. Increase wate r we ll drilling ( 01) 60(1 7.s00
12 . Incr eas e geo thermal dr illing ( 01) Io.ooo 20.000
13. A. benefic iat ion{crushin g and separat ing ore Into va luable substa nces or waste by a vancty of tec hniq ues }
test labo rator y wi ll be es ta blis hedbetwee n 20 10/ 1 1 -20 13/ 14.and a fte rtria l tests lo r 5 selected ind ustrial
mi nera ls. a detailed bcncflcla tlcn test st udy wi ll be co nd ucted
14 . Based on geosc iences Information collected. a 40 promoti ona l doc ume nts w ill be produced to farnltlarlsc
invcs to rswit h pot en tial sites for miner al exp loitation in the cou ntry, as a resu lt it will increa se from 4 in
2009! 1O ti l8 in 20 14115
15. Ac hieve 1()O% ISO! 170 25 acc red itat ion for th e Ge osciences Labo ratory dur ing the plan period
The targets to be achieved by the end of the plan period for minera l and petro leum investment
expansion. artisana l mining and marketing promotion. geosc iences and energy sector research
and development are presented in the following three tables.
Tab le 27. GTP Targ ets for Mineral and Petroleum Investment Expa nsion
II . Rcullsc cx po ns u t 20 m in lure s01 minera l wa ter .
12. Realise ex po rts of I mln metric Ions o f p otash .
13. Realise foreign curre ncy ea rn ings of USIJ 1.36 bln fro m m inerals and reso urces suc h as base meta ls and
mineral water.
Description of Tar get s 200 9110 2014115
I. Increase the vo lume o f mineral investme nt (mi n ETB ) 12.7 20
2 . Increase re venue from roya ltie s and other licen sing ( mln ETB) 69 150
3. Increase annual reve nue from mi ning ta x (ml n ETB) 230 250
•• Increase foreig n c urre ncy ea rni ngs from rmncratsrm!n USlJ j 108 277.3
5. Increase the pro duction o f go ld {Kgs ] 3.907 8.700
6. Increase the prod uction o f tant alu m (to ns ) 202 300
7. Increase ex ports o f marble (m
J
) 99.34 140
8. Increase inve stm ent in the petro le um sector ( min US IJ) 238 S38.7
9 . Increase total number lice nse s issued to petr ole um cxploltetion sector 22 29
10. Increase nu mber of lntcmatlon al e xtract ive indus try tr an spa rency
10 3 10
initiative s mem ber co mpan ies
. .
14. Make ready the Calub and Il iiaia gas fields for develop ment.
15. Enab le 300 .000 km2 orland to be categor ised as petro leu m provinces b) obta ining geo log ica l and
geo physical data fro m the exis ting intern ation al co mpa nies invo lved in exp lora tion.
Table 28. GTP Targ ets for Artisanal Mining and Marketing Promotion
Description of Target s 2009 /10 2014/15
I. Increase go ld purc hased by the National Ba nkor Ethiop ia ( Kgs] 2.X66 5.250
Descrir.tion of Targe ~t ~' 77"----:-:--:---:-:--:--:--:::-:------:-:---:--:--- ..
2 . Establish a nation al inventory and develo pment database for sclc ntiflc instruments and la bor atories in
geosc iences and e nergy.
3 . Develo p integr ated gco-scic ntiflc ap plications a nd initiate a study ofappropr ialc re newable energy sources
forthe s usta inable deve lop ment o f Addis Ababa and its su rrounding areas.
4. Develo p integrated gee-scie ntific app licat ions and initiate a st udy of appropriate renewable energy sources
for the sust ainab le development of Dire Dawa
5. Build increased capacity in scicnti tic instrume nts researc h and laboratory facilities that support the sector
where they arc needed but not available.
s...... Implementation Strategies
Enhancing of Ceo -Science (lata Cove rage and Quality : In this rega rd. the ptan is to
improve the cove rage of geo-science data required for development of minerals essentia l fo r
agriculture. co nstruction. ene rgy. manu facturing and develop ment of precious meta ls. In orde r
to improve the qua lity of data investments will be carried out in the orga nizationa l.
tec hnological capability. standardization and human resource development.
Mineral and Petroleum Investment Expansion : Specific implementation strategies for the
expa nsion o f m inera l a nd petro leum investment include encouraging private investment in
development of the sector. This will be achieved by improving the ex isting mining laws to
make them more attractive to potentia l inve stors. study ing nationa l and internationa l minerals
markets and providin g adv ice to private investors where higher market demand is identified.
Improvements in the cove rage and qua lity of data for mineral and petrole um devel opment are
expected to enhance investment in the sector. More importantly. investments in mining and
petro leum exploration and deve lop ment will be guided by a comprehensive regulatory and
policy framework that ensure transparency and acco untability.
Unde r ta ke ArtisanaJ Mining and Marketing Promotion : During the PASDEP five year
period. the Ministry of Mines in collaboratio n with stakeholde rs. tried to promote arti sanal
mining and regulate illegal miners a nd smugglers by introducing new proclamations and
d irectives covering exploitation of precio us minera ls. No nethe less. there are still a few miners
and smugglers involved in illegal min ing and export of precious minerals. Th e ir activities
have serio us negative socia l. economical. e nviro nmenta l and political impacts. particularly in
the areas where they operate. The gove rnment is strongly committed to estab lishing a work ing
environment conducive fo r art isanal mining and marketing promotion. As part of this
commitment. a new proclamation No. 65 11200 1. which aims to reduce illegal mining. is
c urrently being implemented. To achieve this. a nd to promote mineral resource development
o vera ll. the government will. in co llaboration with all sta keholders. use the exper ience it ga ins
during implementation. and follow up on its regulatory and promotional st rateg ies for the
sector. Skill development. technical support and marketing supports will be acco rded to
art isana l miners. Women are encou raged a nd spec ia lly supported to participate and
accord ingly benefit from the sector.
Unde r ta ke Geosciences and Energy Sector Research and Development: Implementing
5.5 INFRA STRUCT URE DEV ELOPM ENT
Provision of a ffo rdable physica l a nd econo mic infrastructure. such as transportation,
communicatio n and energy makes a crucia l contribution to econom ic growth, em ployment
c reation. socia l we lfare and the ex pansion of the ind ustrial secto r. In the years prio r to the
GTP, a massive cap ita l investment was made to expand i nfrastructure services. However,
significant cha llenges have hindered faste r pace of infrastructu re development. In add ition to
the high investmen t requ ired. the foreign exchange needs have co nstra ined the provision of
infrastructure to the extent desired. Inadeq uate dome st ic human and orga nizational capac ity
for infrastructure deve lopment has led to a dependency on fore ign capac ity, wh ich has in turn
underm ined the pace and coverage of infrastructure delivery
In the GTP period. very large investments will be made to further expand infrastructure
services . to strengthen the fo undation for long-te rm sustained growt h and deve lopment. a nd in
doing so. the c hallenges encountered during the PASDEP implementation will be addre ssed
and resolved. To date financi ng for ca pital investment has come from Treasury and Officia l
Development Ass istance sources . To increase the financial resources ava ilable. emphasis will
be given to improving the leve l of dome st ic savings and foreign exchange savings through
promoting import substitution of imported materials and construction services with domestic
products and services. Nevertheless. it is en visaged that domestic resources will still not be
adeq uate to fully finance the infrastructure programs of the GT P. Import substitution of
materia ls and construction services will he lp. but is not ex pected to fully address the foreign
exchange constra ints. Thus. the mobi lization of exte rnal offic ia l deve lopment ass istance will
be impo rtant in this regard .
5. 5. 1 Roads
St rateg ic Directions
Expansion of the road networ k is critica l to the development of othe r key economic and soc ia l
sectors such as agricu lture. ind ustry. mining. tourism. educ ation and health . Planning of road
infrastructure must be integrated with the o bjectives. strategies and programs of these sectors.
The success of development strateg ies of sectors depends on the e fficiency of the transport
sector in ge nera l and of the road sub-sector in particular. For these reasons, due emphasis has
been given to the deve lopment of the road sector in the GT P. The gove rnment has recognized
the importance of road transport in deve lopment of the nationa l econom ic and socia l activities
and hence attaches a high prio rity to improving the road infrastructure. as is reflected in the
Road Sector Development Program which was launched in 1997.
Objectives
Object ives of the Road Sector Development Program are to expand the road network so as to
improve access to rural areas. improve the quantity and qua lity of the road netwo rk overa ll.
and develop the o rganisationa l ca pacity of the respon sible road agenc ies fo r effec tive
management of road networks. Based on these obje ctiv es. road sector pol icy and strateg ies in
kilometer of new link roads. hea vy maintenance of 4700 kilometer of asphalt and gravel roads
and routine ma intenance of 84649 kilometer of road network .
In universal rural access program also construction of 11 2 12 kilometer of new rural roads by
Regional Road Authori ties and construction of 7 1523 kilometer of woreda roads by woreda
road offices will be undertaken . The government has envisioned connecting more or less a ll
kebels to the nearby al l-weather roads as well as inte rweaving every major city by increa sing
investment in road infrastructure.
A summary of major road secto r targets for each year of the five-year period are presented in
the table below.
Ta ble 29. GTP Target s for the Roads Sub-Secto r by Budget Year
Descr-iption of Tar get s 2009/ 10 20 10/11 20 11/12 2012/13 2013 /14 2014/15
I. Federal and regional total road lcngt ht km ) 48.800 5 1.636 54.8 18 58.2 11 6 1.771 64-"",--
2. Length of Woreda s all-weather road ( km) 0 9.568 24.299 40.044 55.790 7 1.522
3. Kcbclcs connected to all-weather roads (%) 39 48 63 78 93 100
4. Average Time taken to reach nearest all-
3.7 3.0 2.3 1.9 1.6 1.4
weather road (hrs)
5. Area further than 5km from all-weather
64. 1 57.3 48.7 40 .9 34.3 29.0
roads (%)
6 . Area furt her than 2km from all-weather
83.7 80.0 75.0 70.0 65.2 6 1.0
roads (% )
7. Road den sity ( Km/l.OOOkm2) 44.5 55.6 71.9 89.3 106.9 123.7
8. Road den sity (Km/l .000 populatio n) 0.64 0.78 0.98 Ll 8 1.37 1.54
9. Roads in acceptable (Fa ir + Good)
81 81.3 83.0 84.6 85.9 86.7
Condit ion(%)
10. Number of Project operate d/carry (Jut by
58 61 64 67 70 73
dome stic co ntractors ('Yo )
II . Average vehicle Km oftra vel (mIn km ) 9.6 10. 1 10.6 11.1 I L7 12.3
Implem ent ati on St ra tegy
The implementation strategy focuses on restructuring of the implementing agency. ca pac ity
devel opment in the road sector. financ ing and safety measures. Accordi ngly the regu latory
and o perationa l arms of nationa l road management will be split into independent
organisations. In add ition the institutional framework and organisat iona l capac ity of the
regio na l road agenc ies and woreda road bureau s will be strengthened. by. amo ng other means.
human resource deve lopment . strengthening integrated road network plannin g. and improving
the effectiveness of road maintenance. Other implementation strateg ies incl ude actio ns to
increase revenues of the road fund office, build the ca pac ity of local co ntractors and
cons ulta nts. introd uce and expand usc of intermediate equipment tec hnology in road
constructio n, improve equipment ma intenan ce services. use alternative road project fac ilities.
5.5.2 Railwa y Tran sport
Stra tegic Dire ctions
Railway tran sport is a cos t effe ctive and t ime effi cie nt mean s o f carry ing bulk inputs and
produce . Gi ven the rap id eco no mic gro wth in t he co untry there fore co nst ruction of a national
rai lway net work has become an impo rtant task. To support th is strategic d irect ion, the
capacity of do mestic sma ll and medium metal man ufacturing and eng inee ring indu stries to
produce sleepers , locomo tives and ra il spare pa rts and input s fo r the railway network
infra structure co nstructio n, w i llbe promoted .
Takin g into acco unt the econ omi c advant ages of rai lway trans po rt, in the lon g term , it is
planned to expand the network so as to co nnect the co unt ry with neighbourin g co untries and
d iff erent port s. To reali ze t his long term strategic d irecti on , in the short term . gove rnment wi ll
mob ilise and bu ild local ca pac ity (to provide se rvices as we ll as hum an resou rces) to expand
t he railway net wo rk. while also develop ing partnerships w ith forei gn acto rs. Key cha llenges
in the ex pansion and de velopme nt of the ra ilway netwo rk r efer to the e nor mous in itia l
investment. the human and othe r reso urce capac ity and spec ialised expe rience in ra ilway
deve lopment requ ired . St rateg ies w ill therefore be devel ope d and impleme nted in o rde r to
mobilize dom estic and foreign finan c ial resou rces as we ll as build human and o rga nizationa l
capacity do mestica lly. Dur ing the plan per iod. due emphas is w ill a lso be g iven to t he efficient
a nd effecti ve administration o f t he network and rail services .
Obj ectives
Th e objec t ives for the sub-sector are to bu ild a natio nw ide railway infrastructure netw ork.
devel op. and co ntinuous ly impr ove loca l ca pacit ies of ci vil engi neering co nst ruction
compan ies and metal and electro-mechan ical indust ries, and max imise techn o log ica l tran sfer
useful to the s ub-sec to r. Integ rated w ithi n the se objec t ives w ill.in most cases, be st rateg ies to
ensure that developm ent o f rail way in fras truct ure is ope rationa lly susta ina ble.
Maj or target s
Th e ma in targets for the rail way sub-sector durin g the plan pe riod are presented in the
follow ing ta ble.
Table 30. GTP Target s for th e Railway T ra ns po r t Sub-Secto r
De scri~tion of Tar get s
I . Construction ofa tota l of 2.395 km o fn atio nal railway" network. out o fw hich a bout 1807.9 km will be
completed (Addis Ababa -Dlrcn awa-Dcwclc 656 km: Awas h- Woldiya - Mckclc 556.2 km: Wcldiy a-
Sc mcra-Gala fl256.4km and Addis Ahaha-Ejaj i-Jimma- Bedcle 339.3 km). whi le effort s will be e xerted to
const ruct the remaini ng 587. 1 km o f net work (Mojo- Konso- Wcyto] .
2 . Const ruction o f3-1 km o f light ra ilway netw ork along two corridors ( from east to west and nort h to south )
provid ing the ca pital c ity Addis Aba ba with a mass transit system. This initiative w ill lnvol vean- Su
companies working on des ig n and construction of net work and more t han 20 man ufac turing companies
w ill be created f or th e part icip ation of private sec tor in th e sub sec to r. A publ ic/private
part ner ship fra mework and system w ill be designed fo r the s ub-sec tor . Ado pt ionof different
ra il design, cons tructio n and manag eme nt meth ods is a furth er strategy , as is imple mentatio n
o f stu dy find ings o n rail way netwo rk co nstr uction, ser vice deli very and sec urity . The
go vernment wil l adopt approa che s and mechanism s that maxi m ise use of th e ab undant lab our
ava ilab le for the construct ion o f the railway network a nd will cre ate an enviro nme nt
conduci ve for the estab lishme nt o f local tra in ma intenance co mpan ies.
5.5.3 Energy
St rategic Ilirections
T he strateg ic d irectio ns du ring the GT P period are deve lopme nt of rene wa l en ergy,exp ansion
o f energy infrast ructure, a nd crea tio n o f an inst it utiona l capacity that ca n effec t ive ly and
efficie nt ly manage s uch energy so urces and infrast ructure. Durin g th e GT P period , the ga p
betwee n the demand for and supply o f elec tric ity w ill be m in imised . Per ca p ita co nsumption
o f elec tric ity o f househo lds is exp ected to increase d uring the GT P period. Moreover it is
p lanned to produ ce s uffic ient elec tr icity for export. T he e lectric pow er s upply cover age w ill
be increased throu gh t he on go ing rural e lectr ifi ca t ion access prog ram. Govern ment w ill
ens ure a cost effect ive, h igh q ualit y s upp ly of energy, as we ll as energy e ffic iency and
conse rvat ion. T he regulatory fra mework wi ll be effect ively enfo rced.
In order to prom ote and rea lize the co untry 's Gr een Develop men t Strategy, on go ing init iat ives
to ge nerate e lectricity from hyd ro power and ot her renew ab le energy so urces like bio fuel s,
so lar and w ind will rema in the strateg ic d irections during the GT P peri od . In add ition new
tec hnological innovat ion s w ill be ut ilized to ens ure that the energy sub-sector' s doe sn 't emi t
add itio nal ca rbo n-d iox ide.To prom ote and sustai n rural a lternat ive energy deve lo pment
ac tivities, effo rts w ill be made to enhance the capac ity and knowled ge in thi s regard o f
reg ion s, prod uce rs and consume rs. Th e d istr ibution o f wood sav ing materials and
technologi es throu gho ut the co unt ry wi ll be co nt inued.
Objectives
The maj or obj ect ives for the energy sub-sec to r ar e to meet th e demand fo r energy in the
co untry by pro vidi ng s uffi c ientand rel iab le po wer supp ly that meet s internatio na l sta ndards at
all t imes. Th is obj ect ive will be achi eved by acc elerat ing and comp leting th e const ruct ion o f
new hydrop owe r elec tric ge neratio n proj ects, and stre ngthe ning th eex isti ng transm ission lines
to provide improved access to ru ra l villages a ll ove r the co unt ry. An additiona l ob ject ive is to
ex po rtpower to the ne ighbo uring co unt ries. Mod ern iz ing the d istribut ion syste m wi ll also be
considered , so as to redu ce power losses to inte rnat ional be nchma rk levels. Developm ent o f
alterna tive e nergy fro m ren ewable so urces suc h as wind, so lar b ioma ss, etc w ill be integrat ed
with the co unt ry's Gr een Devel opm ent Strategy. During the plan period an o b jec t ive is set
also to transfo rm the nat ional ca pac ity in developin g and ma nagin g energy by rad ically
refor m ing th e nat iona l powe r co mpany such th at the elect ric power supply serv ices reach
Tab le 31. GTP Target s for th e E nergy Sub-Secto r
Description of Tar get s 2009110 201~ 1I5
I. Hydroelec tric power gene rating ca pac ity (M W) 2.000 10,000
2 . Total len gth of d istribution lines ( Km) 126.038 258.00 0
3. Total le ngth of re habilitated distribut ion lines (Km) . 50 8. 130
•• Red uce power wastage (%) 11.5 5.6
5. Number of consu me rs wit h access to e lectricity 2.000.000 4.000 .000
6. Coverage of elect rici ty service s (%) ., 75
7. Total undergro und power distr ibution system ( Kr n] 97 150
lm plem entln g strategies
The key implementation strategy is capacity building in energy develop ment and
manageme nt. Thus the national electr icity co mpany will go through radical reform suc h that
the nat ional institutiona l capac ity to gene rate power. construct the infrastructure and
efficiently and effectively manage the power and infrastructure shows fundamental
improvement. Other implementing strategies that will be e mployed to achieve the above
o bj ectives and targets for the energy sub-sector are strengthening organisat ional
implementation. capacity (the electric power compa ny go through a complete restructuring
process). increasing develo pment of elect ric power gene ratio n a nd access to services.
strengthening regulation of electric ity prov iders so as to e nsure a reliable service. expanding
alternative renewable energy product ion. increasing emergency oil reserve s and ensuring
protection of natura l resources. and enhancing community development. Gende r and
.I IV IA IDS issues will be mainstrearned in a ll energy sector activities.
Electric Powe r Generation Const r uct ion Program : Ethio pia has a potential to gene rate
45,000 MW of hydroelectric power. Howeve r. currently only 2000 MW is ge nerated. It is
planned to increase this level of power generated by four times. Implementation strategies a re
to promote a mix of energy sources by developing rene wable wind and geothermal resources.
prevent power loss and promote proper utilization of e nergy. reduce unit cost of power
generation investments and operat ions. and provide elect ric ity at affordable prices.
Electrlciry transmission lines construction : To e nsure a reliable electric ity supply and
transmit the electric power efficie ntly and economically to consumers. construction of a
re liable distri bution and transmission networks is essential. To this end. due empha sis will be
give n in the Unive rsal Electrification Acce ss Program to construct new transmission lines and
connec t them to the nationa l grid as economically as possible and to reduce power losses.
Further implementation strategies are to minimize the cost of construction of transmission
line s. improve control of power sources a nd construct additiona l transmission substations so
as to achieve efficie nt power d istribution.
Thc Power Ilistribution and Expansion Program wi ll adopt implementat ion strategies to
modernise the power distribution syste m wit h the aim of increasing service de livery
and irrigation pumping. The program will be executed in close collaboration with, and e nsure
participation of, local contractors and manufacturers, technical and vocat ional school
graduates, and other stakeholders. Electr ic ity is an essentia l part of the rural transformation
agenda because it is an important input for businesses and productive enterprises in small to
medium sized towns and as an input for agricu lture, irrigation pumping, commercial
agricultura l production and processing. Equitab le distribution of services to the rura l
economy, agricultura l and other sectors development has a beneficial effect nationally.
The national re gulatory system to ensure conservati on of electricity a nd energy
efficiency: Implementation strategies will seek to meet increasing demand for energy by
encouraging private investors a nd government electric utilities engaged in the sector. Actions
taken to support this strategy include licensing a pplicants and granting certificates of
competence to potential energy produce rs. A further approach is to e nsure that reasonable
tariff' structures that are affordab le are app lied. Energy audit activities will involve
establishment of energy efficiency management sections for selected consumers, pa rticularly
high energy consuming organisations.
A study of requests for annua l tariff revision by devel opers will be ca rried out with the aim of
establishing an economical and fa ir for e lectricity services, while at the same time
encouraging investment s a nd its recommendations implemented following agreement and
endorsement by the responsible authorities. Energy conservation and mitigation of energy
losses will be pursued for each economic sector. The measures to be taken will iden tify the
most effi cient energy consumption technologies, establish performance standards, implement
and conduct regu lar inspection activities on electric utilities, prepare reports and taking the
corrective measures necessary.
Bio-fuel devel opmen t: Ethiopia' s emissions of C0 2 are very low compared to deve loped
countries. Nonetheless, access to a range of reliable, affordab le and clean energy sources is
critica l for sustainable growth. One of the potentia l means to rea lize the shift to more
sustainable fuels is the product ion of bio -fuels and other renewable energy sources, as a part
of Ethiop ia' s green development strategy. As stated in the bio-fue l development strategy,
Ethiop ia has suitable land for bio-fuel (bio-ethanol and bio-diesel) devel opment.
Implementing a bio-fuel development initiative, in line with country' s Green Development
Strategy, will enable bio fuels to substitute for imported petroleum fuel and even sufficient for
expo rt. Moreover, j ob s will be c reated locally at different stages of bio-fue l production
process and thus contribute to raising living standards. Action will be taken to expa nd bio-fuel
plantations, introduce use of bio-fuel in households for coo king and lighting, standardize and
re fine information relating to land, technologies and market s for bio fuel deve lopment, and
promote knowledge about bio fuel use in each region. Benefits of this initiative include,
improvement of the country's ca rbon sink, reduction in d eforestat ion, and reduct ion in the
time spent on and burden to women and children in searching for firewood. Steps will be
taken to involve investors and other sta keholders in bio fuel deve lopment processes.
The Bio-fuel Development Program will implement strategies during the plan period to create
a network of implementing agencies, research institutes and universities to adapt and promote
Alter na tive energy developm ent and p ro motion will develop e nergy resources a nd
technology by adoption, adap tation o r innovation of new designs. T his strategy a ims to
produce prototypes and test the effic iency of energy sources and tech nologies based on
consumer de mand. Other alterna tive energy development and promotion initiatives are to
work c lose ly on energy resource identification and technologies with government agencies,
NGOs and private companies and provide tra ining for the business sect or including
manufacturers. Awa reness within communities will be created and promoted. Demand for
alternative e nergy tec hno logies will be improved and loans arranged fo r manufacturers and
cons umers to insta ll alte rnative tec hno logies.
Altho ugh, Ethiopia is endowed wit h a variety of energy reso urces, many of these reso urces
have not yet been ex ploited. A study of efficie nt a lternat ive energy resources and usages, and
the means to e ncourage the ir development wi ll be ca rried out. Attenti on will be given in the
study to environment protect ion a nd co nservation. The study will involve co llaboration
betwee n government, reg ional states, private sector and other stakeholders. Application of
improved a lternative energy technologies will help minimize d efo restation, reduce indoo r air
po llution that results in health prob lems a nd save the time women and c hildren spend
searching, co llecting & transport ing fuel wood. As a result, fami lies will have more time for
other productive work. By bu ilding the capacity for regio nal implementatio n agents and othe r
stakeho lders' a lterna tive e nergy technologies and resources will become more widely
ava ilab le to users, increase susta inable energy use and benefi t communities.
Ca pa city buildin g: The o n-going program to strengthen the tec hnica l and vocationa l skills of
schoo l graduates, and of manufactu ring ind ustries relevant to the e nergy sub-sec tor, so as to
build own capac ity and reduce fo re ign cu rrency needs, will be co ntinued.
St ra teg ic pet ro le um re ser ve facility developm ent a nd ope rat io n: Being a petroleum
importing country, the rel iable and co ns istent supply of petro leum is essential for
deve lopment of the Et hiopia' s economy. It is a strategic necessity for a ll o il importing
co untries to secure the ir access to o il; it must be ava ila ble continuo usly and it present and
future supply must be sec ured. A number of fac ilities have been constructed made o perational
in prev ious years. Currently Ethiopia 's strategic pet roleum reserve ca pac ity is 369.800m 3,
which is a bout a two months supply. During the GTP period, development o f the strateg ic
petroleum reserve fac ility will cover all areas assoc iate d with deve lo pment and ope ratio ns.
These include: the co nstruction of storage ca pac ity. ma intenanceof fac ilities for the sto rage of
petroleum. o il acqu isit ion and transfer to storage and o perationa l read iness act ivities suc h as
d istribution of the stock to local co mmerc ia l d istribution syste ms.
The current strateg ic petroleum reserve sto rage ca pac ity will be inc reased from 369,800m 3 to
429 ,OOOm3 which provide s for 45 days consumpt ion . The c urrent strategic pet role um reserve
stoc k of 87000 m3 will be increased to 429 ,OOOm3 which, as stated abo ve. covers 45 day s
consumption. Strateg ic petro leum reserve faci lities will be mainta ined and the operational
read iness of the strategic petro leum reserve ensured. The implementation strategies adopted
for the strategic petroleum reserve fac ility include increasing the size of strategic petroleum
reserve sto rage capacity, increa sing the size of st rategic petroleum reserve stoc k, a nd
environme nta l de gradat ion . Inspection o f petroleum downstrea m usage is a new area for
regulat io n and co ntro l. It is intended to ra ise regu lati on and contro l to the international level.
and provide e ffectiv e mon itoring and suffi c ient inspect ion ca pab ility. Serious attenti on wi ll be
given to the ad dressed and reso lve the prob lems. bui ld. extend and provide an e fficien t
petroleum produ cts supply and utilizat ion system.
The imp leme ntat ion strateg ies incl ude the preparat ion of d irect ives, regu lations. and technica l
standard s for the inspection and mon itoring o f petro leum down stream services. so that a ll the
dow nstrea m bodi es a re co vered by a n integrated law and regulat io n deta iling standards a nd
spec ific atio ns. The regulator y framew ork w ill ensure the qual ity and reliability o f the serv ices
prov ided by petroleum downstream op erators. Petroleum produ cts d istributer wi ll be
ins pected to ensure petrol depots. tran sportat ion and d istri butio n fac ilities. including the ir
constructio n and perfo rmance , fu lfi linternational sta ndards. System s wi ll be put in p lace to
ensure that petroleum produ ct s, fa cil ities.sto rage. tra nspo rtatio n and d istributio n meet proper
industry stan dards .
5.5.4 Telecommunication
Stra tegic Directions
The strateg ic d irect ions here are to ensure that the inform ation and co mmunication
infrastructure a lready in place is effect ive ly uti lized s uch that it provides higher q ual ities o f
information and co mmunication se rvice s. In order to effect ive ly ut ilize the infrastruct ure and
de liver h igher q ua lity services at competitive prices the te leco m com pa ny wi ll under go rad ica l
institutional reform such that its instit ut iona l capac ity shows fundamenta l c hanges. In
add itio n. ensuring a secure IT system w ill be a strateg ic d irect ion of the GT P. while
development of the domestic ICT sector will a lso be accorded d ue emphasis.
Area s o f focus for the teleco mmu nicatio ns sub-secto r are to upgrade the ex isting lCT netwo rk
to accom modate the latest info rmation techno log ies a nd im prove network q uality and ex pand
services. An a ll incl usive te leco mm unicat ion service de livery a nd ICT suppo rt where it is a
req uire ment o f othe r deve lo pment program s will be put in place . The human reso urce
capacity o f the sector w ill be built. On go ing proj ect s to develo p the netwo rk w ill be fina lized .
IT services avai lab le acro ss the co untry. incl udi ng high q ual ity integrated te lecomm unicatio n
services packages (co nverged val ue added services). w ill be provided . at a reasonable price .
Fixed line and mobile te lephone se rvice provision wil l be e xpanded nat ion wid e .To
acco mmodate the latest info rmat ion co mmunication technolog ies. a ll te lecom municati on
infrastructures will be d igit ized . Th e inte rnet service ex pansion progra m w ill bene fi t city
go vernments. wo reda c itie s, academ ic inst itut io ns. incl ud ing high schoo ls and unive rsit ies,
research inst it utes. socia l o rganizat ions and the privat e sector. T he ongo ing net work
expansio n program w ill be strengthened by building a high capacity fi bre o ptic tran smission
line and link ing it through neighbou ring co untries to inte rnat io nal marine ca ble s. Thi s
init iati ve w ill provid e the co untry' s g loba l d ig ita l gate way .
where telecom resources are limited (fo r instance nat ional frequency spectrum. te lephone
numbers. numbers and internet provider addresses) that they are used fairly and economically.
A further focu s is to ensure the sec urity of the telecommunication service by combating
illega l use of the netwo rk and tra nsmissions of illicit co ntent.
Object ives
The key o bjectives are to ensure a co mpetitive (in terms of prices and quality) and sec ure
te leco m services. and build a fa r reach ing nationa l ca pacity in te lecom deve lopment and
management. Emphasis is on fina lizing the co nstruction of the on going network
infrastructure and applications to expand services. A need based network may also be
expanded. The rural universa l te lecommunication access program will be expanded and the
qua lity of fixed line. mobile phone. internet and data service provision improved and
ma inta ined.An environment co nducive to use of the late st te lecommunication technologies
will be created. A fa ir and economical util ization of nationa l frequency spectrum.
telecom munication numbers and inte rnet provider addresses is ensured Illegal
telecommunicatio n activit ies will be pre ve nted
M ajo r Ta rg ets
The targets to be ac hieved by the telecommun icat ions sub-sector are presented In the
fo llowing tab le.
Ta ble 32 . GT P Ta r gets for th e Te lecomm unica tions Sub-Sector
Descrlprhm of Target s 2009 /20 10 20 14115
I. Number of fixedlin e tele phone subscribers (mi n.) I 3.05
2. Fixed line telephon e density (% ) 1.36 3.4
3. Number of mobi le telephone s ubscribers (mi n) 6.52 . 0
4. Mobile telephon e coverage ( % ) x.7 45
5 . Number of Internet service subsc ribers (mIn) 0. 187 3.69
6 . Ruraltclccom acc ess within 5 km radius ofscrvlccs (%) 62. 14 100
7. Wireless tclecom service cove rage (%) <50 90
K. Global link ca pac ity (G b/s) 3.255 20
Implementing St ra tegies
Th ree key implemen tation strategies are ide ntified. First. the national te lecom compa ny will
be reformed such that it is tran sformed to have an institutional ca paci ty that de livers high
q uality and com petitive services. The telecommunicatio ns provider will be fundamentally
upgraded to meet international standa rds using the services of reputable foreig n compa nies.
The second strategy concerns the establishment and effective e nforcement of comprehensive
policy and regu lato ry framewo rks to prevent and co ntro l illega l activities in the industry. An
of systems to prevent integrated syste m failure. and ensure its maintenance and improvement.
measure network flow and quality. and c ustomer compliance. T he te lecom service qua lity.
network capacity and frequency spectrum utilization and control will be strengthened.
Monitoring of rura l kebe les' telecom munication services will be increased and an
admin istrative assistance strategy provided and dissem inated. The qua lity and traffic ca pacity
of service on internat iona l lines will be improved. A strategy to raise additional funding
reso urces for the sector will be deve loped. A strategy for capturing more customers via
outsourcing. marketing and business will be designed and implemented.
5.5.5 Potabl e Water Sup ply a nd Irri gati on Developm ent
St rategic Directions
Priorities for water resources management will support ove rall GTP ob jec tives for integrated
and sustainable deve lopment. Sub sec tor specific priorities are to improve util izat ion of wate r
resources by interconnecting different sectors a nd users. ensure fa ir and equ itable utilization
of water resources taking into co nsideration exist ing demand and future generations' needs.
The impacts of runoff. drought and other natural hazards will be mitigated.
An integrated approach will be taken to water resource s developme nt and utilization that
gives due conside ration to its security and safety as a resource on the one hand. while also
considering fully the paralle l needs o f resource usage such as water supply. dev elopment of
irrigation. river basin administration. watershed management and re lated activit ies. An
integrated approach to water resources manageme nt will take into account complementary
natura l resources and sectors such as agriculture. hea lth. mining and energy. etc. Attention
will be give n to the contribution the wate r sub sector must make to achievem ent of MDG
targets. Development initiative s will include water supply. irrigat io n and drainage
deve lopment. a hydropower study and design. a surface and ground water study. an integrated
master plan study and watershed management.
Objectives
The development o bjectives. durin g the GTP period. are to develop and utilize water
resources to fulfil soc ial a nd economic priorit ies. susta inably a nd equitably. by increasing
water supply coverage. and develop ing irrigation schemes that ensure food security.
l\lajor Target s
To meet the above objectives. during the GT P five year period. the following targets have
been set for potab le water supply and irrigation development during the plan period (and for
eac h budget year. in the case of potable water supply).
Ta ble 33. GTP Targe ts for Pota ble Water Supply and Ir r igation Developmen t
Descriptio n of Pota ble water Target s 200912010 2014 /15
I. Urban po table water supply coverage with in 0 .5 km radius (%) 9 1.5 100
Ile scription of Tar get s for Other Parts of the Water Sub Sector 2009/20 10 20t4 /15
8. Pre- feasibility study on multipurpose hydropower projects
6447 9.227.4
(MW)
9. Feasib ility and deta iled design on multipurpose hydropo wer
1.431 8.398.4
projects (MW)
10. Increase the ground water information an d know ledge (at
3 22.7
150.00 0 sca le ) mapping cove rage(%)
II . Increase cove rage o f national surface hydrology stat ions ( % ) 85.6 <J{J
12. Increased integrated rive r bas in man agement master plan (%) 25 63
13. Rehabilitate degraded and damaged land [ha} 1.000.000
14. Upgrade information prov ided at the sur face hydrology stations to internatio na l standard
It is also estimated that. nat ionall y, a potent ial 01'5. 1 m In ha ofl and can be deve loped through
various irrigation met hods inclu din g, pump. gravity. pressure. unde rgro und wate r, wate r
harve sti ng and other mecha nisms. Based o n t his est imate o f potent ia l. irrigat ion devel o pment
activities. part icu larly sma ll sca le irrigation wil l be g iven priority in the plan period.
Impl ement ati on St rateg ies
The im pleme ntation strateg ies for potable water supply are to en sure a dependable and
susta inable water supply ba sed on deman d and efficie ncy measures. Sustai nab le and feasible
te chno logie s w ill be impleme nted to improve t he ru ra l wate r supply co verage. Active
management and operatio na l mechan isms o f ex ist ing wate r faci lities wi ll be ensured . Wate r
eco nomy mea sures will be devel oped and imple me nted for ex isting water schemes and,
before they are constructed for new sc hemes. Add itio na l imp lementation strateg ies w ill aim to
satisfy water demand at t he househo ld level w hile tak ing acco unt of the co untry's capacity.
Th is strategy will use cr iteria ba sed on socio-eco nomic c riteria to assure co nsumers o f a n
eq uitable and efficient d istribution. a nd utilizati on o f the wate r in excess o f the ba sic demand.
A strategy wil l be pu rsued to prio rit ize low cos t schemes and projects that will be
imp lemen ted throu gh loan s. im plement measures suc h as co st reco very in urban water supply.
and bui ld capacity at all le ve ls o f water resou rces management.
The imp leme ntation st rateg ies fo r irrigati on and integrated water reso urces mana gement are.
development of new irrigati on sc hemes . co nstructi on sha llow a nd dee p wells for irrigat ion in
area s ric h in gro und water. faci litat ing cond ition s for med ium and large sca le irrigat io n
development (b uilding dam s and related infra structure), imple mentation tech no logies and
mec hanisms that improv e efficient water usc in medi um and large sca le irrigat io n sc hemes.
and estab lishing and integratin g meteo rology and hyd rol ogy services at a ll level s (from
federa l to d istric t o r wo reda) . Local resources. s kills and knowledge in wate r resou rce
ident ificat ion and ut ilizatio n will be enhanced. st ud ies and researc h into trad itional and
alternative low co st tec hno logie s w ill be co nducted. and a ppropriate tec hno logie s deve lop ed.
5.5.6 Tran sport Services
service. The time rural people spend trave lling will be reduced by providing a ll wea ther roads.
thus giving them more time to spend on productive act ivities.
Increasing eco no mic activities in Addis Ababa. Dire Dawa and the main regiona l c it ies
demand expansion of urban transportation systems. This in tu rn requ ires development of
better transport systems and se rvice s. and mass transport infrastructure. Development of urban
transportation systems wi ll be based on e fficient urba n land utilization and develo pment
planning as well as analysis of existing a nd future traffi c de nsity patterns. One of the key
c hallenges for urban transportat ion is a n implementat ion capac ity gap and. for this reason.
e mphasis will be given to build the ap propriate human resource and administrative capac ity.
Considering the relatively low vehicle de nsity in the co untry. the number of traf fi c acc idents
is very high. Preven ting and reducing traffic acc idents and the resu lting loss of human life and
property. is imperative and timely. Accordingly. an integrated traffic security and modern
traffic management system. supported by informatio n technology. will be developed and
impleme nted in a ll regions.
Object ives
A ma in o bj ective of the transportation sub-sector is to ensure that the public transport system
is e fficient and a ffordab le so that the trave l time of particu larly t he rura l populations is
red uced and they have more time for productive activities. A seco nd ma in o bj ective is that the
urban transpo rt system is effici ent. sec ured and well integrated. A further obj ective is to build
the e ffectiveness of reg ulato ry bodies by putt ing in place an improved lega l and regulatory
framew ork . An e ffective institutio nalframework will help to ensure private tran sport se rvice
provide rs are competent a nd provide proper standa rds of service. The human resource
capacity for better management and service de livery will be deve loped. A nationa l data base
fo r freight and publ ic transport will be created t hat will reduce the time processing
admin istrat ive requ irements and the costs o f freight transport.
Major Ta rgets
Fo r the GT P pe riod. the follow ing targets have bee n set fo r the transpo rt services sub sector.
Tab le 34. GTP Targets for the Tra nspor t Services Sub Sect or
Description of Tar get s 2009/10 201·ms
I. Increase the ava ilab le scat km (hln ) 25. S 32
2 . Total dis tance cove red hy hUSl'S ( km) 70.0 ()O IOO.()O()
3. Daily moto rized transport supply o f Add is Ababa C ity
2. 162 . 162 3.083 .360
(passengers scat s)
4. Public trans po rt supply coverage (%) 14 4K
5. Waiti ng time for public tra nsp ort in A.A (m inutes) 45 15
6 . The average annual freight distance covered (km) SO.OOO 120.000
7. Tra me acciden t death rate ( per 10. no n peop le ) 70 27
Impl ementin g Stra tegies
To ac hieve the abo ve o b jec t ives and targets fo r the transpo rt services s ub-sector. wor ld-class
regulatory and service de livery sys tems w ill be introduced. Nat iona l logist ics coo rdinat ion
exce llence and informat ion ce ntres wi ll be bui lt. while spec ia lized human reso urce
devel opme nt in road tran sport wi ll a lso be g iven att entio n. A rural tran sportat ion expa nsion
pac kage w ill be design and imp lem ented. An ince ntive structure fo r stakeho lders who
participate in the sub-secto r wi ll be created . Improvem en ts w ill be made to t raffic
ma nagement. An organ isat iona l system for control a nd integrat ion o f public tra nsport
assoc iations w ill be developed ; it will include a system for co mmerc ia l companies to
enco urage them to im po rt new a utomotives and to address the needs o f those who need
spec ia l assistan ce. A modern tra ffi c flow o perations ce ntre w ith the latest information
tec hno logy w ill be bu ilt. A road safety co unc il wi ll be co nst it uted. operationa l at fede ra l.
reg iona l and local levels. to in itiate and coord inate road safety proj ects and progra ms and
build a nation al road tra nsportatio n data base.
5.5.7 Maritim e Tran sport
Stra tegic Directions
A key focu s area du ring the GTP period is to enhance the ca pacity of the sub-sector for
effic ient service deli very by build ing a maritime tran sport system that w ill redu ce the time
spe nt, cost o f tra nsit log istics and processing o f im ports and ex ports. To th is end. a multi
modal maritime and sea transport at ion service deli very system will be put in place . Dry port
ca pac ity w ill be e nha nced and co nso lidated while taking into acco unt the po int o f dep art ure
for. and destinati on o f. goo d s. In additio n. to further fac ilitate th e impo rt-expo rt trade a nd
speed up tra nsiting o f good s. the tran sit time of goo ds at sea po rts will be red uced. The
number o f control a nd we ighing stations w ill be red uced and the management of ve hic le
uti lization in the co rridors increa sed in order to increase the frequ ency o f veh icle travel and
reduce tran spo rtation time. To provide an efficient and goo d qua lity service. the safety o f
import-expo rt tran spo rtation co rridors w ill be assured. A log istics system that is suppo rted by
modern tech nolog ie s wi ll be deve loped.
Obj ectives
In the GT P per iod the dry port infrastr ucture in the co untry w ill be expanded and enhanc ed.
Impo rt-expo rt business o perations wi ll be fac ilitated by rea lising the mutua l econom ic
bene fits t hat can be ga ined through partnership with neighbouring cou ntr ies and improved
ut ilizat ionof transit co rrido rs. to reduce t he time and cos t o f logistics in im port-e xport trade.
The national snipping li ne' s carry ing ca pac ity will be enhanced. To support the fre ight
t ransport service w ith in the co untry. t he local wate r t ranspo rtat ion service w ill be im proved.
l\l aj o rTa rge ts
Th e GTP targets set for the maritime transport sub sector are presen ted in the fo llow ing tab le.
Description or Tar get s 2009110 201·ms
3. Availublc scat kilo meter in local water trans portat ion (m in
0.9 1.4
ton)
4. Red ucetrans it time lo r imparts and export s (days ) 30 20
5. Ex port ca rgo tra ns ported by the ne wly Improved syste m (%) 90
6 . Ac hieve a sea port ut ilizati on for Dj ibo uti. Bcrbcra and Port Suda n. respectively (%) 60/30/ 10
7. Increase the capacity of Mojo an d Semo ra dr y po n s(for general cargo. excl uding
100
unpacked and liquid ca rgo) (% )
8. No. ofloa ding stations to be built a ll over the co untry dur ing thc pla n period 35
9. Fuel tra nsported by Ethi opia n ships (b in to ns ) 3.6
Im plementation St rategies
To ac hieve the above targets for the maritime transport sub sector d uring the plan per iod the
multi modal system will need to be fully imple mented, while the capacity o f dry ports
infrastructure facilities have to be enhanced. Part nership and co llaboration with the
neighbo uring countries is another important strategy for effective sea port utilization and
regiona l integration. Improving the containerizat ion system is considered as one of the
strateg ies for improving the sea transport and maritime services . The control systems at
tra nsport corridor c ustom chec ks will be improved. The fre ight transport and log istics
program will be implemented. A loca l water transport utilization strategy wil l be de ve loped
and imple mented. and related human resou rce capacity strengthened.
5.5.8 Air Tra nsportat ion Services
St rategic Directions
The maj or focus for ai r transpo rtation services is on further strengthening the competitiveness
of a ir transport and expanding passenger and ca rgo transport services by creat ing new
inte rnational destinations. Do me stic air transportation service delivery will be expanded such
that it supports the develo pment of to urism activities in the co untry.
Standardized cargo terminal and cooling systems at diff erent ai rport s will be built to faci litate
the import and export trade of horticulture. meat and perishable commodities. The capacity of
the air cargo system will be improved in order to enhance quality and affo rda bility of the
service. In additio n. the o ngoing co nstruction of a irpo rts.at different locations of the co untry
will be co mpleted; and their operatio nal and technica l sta ndards brought up to req uired levels
so that they del iver services at internationa l standards. Lastly. an important focus will be to
improve overa ll the ca pacities of the ai r transpo rt syste m (of a irplanes' carrying capacity.
pilots. other professio nals. a irports and o perato rs) throug h capacity deve lopment aimed at
improving aviation safety a nd sec urity.
import-export trade in the co untry will be supported by providing efficie nt and affordable
cargo services. Air port sec urity and sa fety facilities in ex isting and newly built airports will be
ful ly maintained and navigat ion services provided that are standardized. sec ured and
susta ined.
Major Ta rgets
To achieve the above objective s for the air transportation sub-sector the target s for the plan
period are presented in the following tab le.
Tab le 36. GTP Targe ts for Air Tra nsporta tion Se rv ices Sub Sector
Description of Tar get s 2009110 2014 /15
I. International and domestic passenger (bin scats) 15.2 37.2
2. International a nd domestic passenger (min km travelled) 263 994
3. Passengers o n internationalfli ghts (min no.) 2.7 6.6
•• Passengers o n domestic flights ('(}(lO no.) m 14M
5. International passenger Ilight dest inations (no.) '" 776. International flights capacity o f loc al airports (Regular and
45.0(){) 67.0(}O
temporary) (no.)
7. Domestic nig hts capacity of local airports. (o f regular and 49.()()(J 72.()(}0
temporary) (no.)
8. Accommodation capacity for passengers of internationa l
3.88 30.5
tlights all airports (min no. )
9 . Accomm oda tion capacity for passengers of loc alfl ights all
0.96 7.6
airport s (mi n no.)
10. Local tlights coverage ('Yo) 16 20
I I. Cargo carried from all four internatio nal airports (to ns) 11 9.()()0 3 11.0()(J
12. The number of operato rs/investors in the sector {no.] 21 35
13. Globally accepted fatal acciden ts rate (rutio} J O/ 1O.nOO 5/ 10.0()O
Implem en tin gStrategie s
A nationa l av iation capac ity building program will be designed a nd implemented. Regulatory
and service delivery systems wi ll be benc hmarked again st internationally renowned aviatio n
industrie s. Com munities' and regiona l gove rnment's participation in airport co nstructio n will
be encou raged. A standard governing a irport construction and standa rdized system of a irpo rt
c lassificatio n will be designed. New destinatio ns and flight program s will be opened. using
market ex pansion strategies . New airplanes will be purchased so as to improve service
q ualities and e ffic iency, including loca l flights. Safety ' and facilities' systems and c ivil
aviation monitor ing system will be o perated to acceptab le international sta ndards.
5.5.9 Urba n and Constr uction Develop ment
increasing urban populat ion. These will turn help reduce poverty and unemp loyment in urban
centers and thereby enhance the role of urban centers for accelerated economic development.
The construction industry has registered significant growth in the past five years plan period.
It played an important role in improving the delivery of socia l a nd eco nomic infrastructure,
generating jobs a nd contributing to economic growth. To sustain this in the GTP period, a nd
enable the local construction industry play its role in accelerated socio-economic development
of the country, focus will be on building the capac ity and com petitiveness of the industry by
impleme nting a comprehensive and integrated capacity building program. The legislation and
enforcement of a regu latory framework that ensure safety and competitiveness in the industry
is also considered c rucial to GT P.
Stra tegic Direction
Key strategic areas for urban development are poverty and unemployment reductions,
sustained and integrated development through rural-urban and urban-urban linkages,
participatory engage me nt of the urban populations in deve lopment and governance, forming
strong partnerships with the private sector, and establishing effective decentralized
administration systems that ensure self-rule of cities and tow ns.
Regarding development of urban infrastructure, the key strategy is to enhance the capacity of
city admin istrations to plan, provide and manage the supply of urban infrastructure and
services. Investme nts in urban infrastructure have to consider the role and importance of the
citie s in regional and national social and econo mic deve lopment. Infrastructure development
should create an environment conducive to accelerated economic development and equitable
d istribution of services. To rea lise fully the potential contribution of towns and cities to
eco nomic and social development. the development and expa nsion of infrastructure will have
to be undertaken through the joi nt and coo rdinated efforts of the governme nt. private sector.
and the public. When infrastructure develo pment activities are carried out. the potentia l to
create a wide range of job opportunities and promote micro and small enterpr ise development,
will always be taken into cons ideration.
Low cost housing would also be promoted for the low and middle income households
particularly in Addis Ababa. The housing development initiatives would result in the creation
of new MSEs operating in the construction sector, strengthen the exist ing MSEs and provide
huge employment opportunities. The housing program needs to be exec uted in a way it
promotes domestic savings, reduces slums and improves the urban environment.
The development of the construction industry will be promoted during the plan period such
that it is labo ur-intensive, market-oriented, led by the domestic private sector, competit ive,
ethica l, and free from corruption. Development of the construction industry will take into
account micro and small enterprise develo pment, capacity building requirements, and e nsure
the full part ic ipationof women. Steps will be taken to ensure that design a nd construction
activities acco mmodate the needs of the disab led citizens.
Obj ect ives
of the various urban infrastructure and business development initiatives. Strengthening the
capacity of cities to se lf-govern themselves and public participation are -expected to improve
the governance system. It is planned also to construct affordable. good quality and
standardized urban housing. particularly in Addis Ababa. reduce urban slums. add ress
housing (shelter) problems. promote domestic savings and create a wide range of job
opportunities.
For construct ion ind ustry deve lopme nt: The objective here are to ensure construction
works a re completed to the standard required. time lim its set a nd costs planned. build the
capacity of the domestic construction industry to fully meet local demand. ena ble the industry
to make a significant contribution to the sustainable growt h of other sectors and the national
economy. as well as improve its productivity. Add itional object ives are to create j obs.
develop the sector's overa ll capacity and increase the number of local companies (contractors.
consulta nts. construction machinery supplying and leasing companies. and construction
material suppliers) engaged in the industry. and ensure the effect ive usc of public investment
in different construction works.
Major target s
With regard to construction and urban development the main targets dur ing the plan period
are presented in the fol lowing tables.
Tab le 37. GTP Target s for Co nstr uct ion Develop ment Sub Secto r
Description of T arget s
I . Raise the capacity o f exis ting cont racto rs by im proving capacity o f higher grade local co ntract ors and
co nsultants
2 . Promote (base d on prior assessme nt) lower grade co ntractors to midd le and higher grades
3. Facil itate the ce rtification of non skilled and sem i skilled man power
4. Promote the introd uction o f ne w contractors and consultants
5. Build the ca pacity o f companies leasing plant and equipment
6 . Based o n thoro ugh research reso lve the supply and demand ga p relating to both local and ind ustrial
co nstruction mate rials.
Tab le 38 . GTP Target s for Ur ba n Development Sub Sector
Description of Tar get s 2009ltO 201-1/15
I. In Addis Ababa. construct and tra nsfer houses (no) 150. 000
2. Red ucing slum areas in Addis Ababa (%) 60 30
3 . Const ruct houses in sugar developme nt projects (no) 10 1.022
Urba n infrastructur e deve lopment targets incl ude
4. Co nstruction of cobble stone roads [ Kr n] 3738
effec tive regulatory policy to regulate the activities of private rea l estate developers and
housing cooperatives will be implemented.
Impl eme ntat ion st rategies
Ur ba n Development: The ope rational strategies here concern the strengthening of
organizational and human resou rce ca pacities of urban loca l administrations. The
development and implementation of a susta inable urban infrastructure and housing finance
system is also another element of the imple mentation strategies. Here the primary focus will
be on improving domestic savings and revenues for infrastructure and housing developments.
The experiences so far with regard to public participation in planning. delivery a nd
management of infrastructure, housing and services as well as other governance issues will be
consolidated further during the GTP period. Finally the undergoing initiatives of
strengthening the urban planning, design and construction ca pacities will be consolidated
further to ensure better quality, cost efficiency and productivity in infrastructure a nd housing
de livery.
Constr uction Indu str y: The emphasis is on enhancing the capacity of the domestic private
sector so as to create a competitive local construct ion industry. To this end a comprehensive
capacity building program will be adopted and implemented. In the plan per iod, implementing
strategies will be adopted to increase the quantity and improve the qual ity of local contracto rs.
consultants and construction machinery leasing companies. The provision. production and
administration of construction materials will be strengthened and existing and new local low
cost construction materials developed and improved through research and technological
transfer; the ir use in designs and construction will also be provided. In sum, the second
strategy is promotion of import substitution in the production of construction materials and
services. Emphasis will be given to proper use of manuals, procedures and c hecklists and
adherence to regulations in all government and private construction activit ies. In other words
the strategy here is to fully enforce the building code already adopted by the country.
CHAPTE R 6.
SOC IAL SECTOR DEVELOPM ENT I'LAN
Social development plays a key role in enhancing people' s living standards. poverty
eradicatio n, economic grow th and stable governance. Much emphasis has been given to the
deve lopment of the sector in the past and it has developed rapidly. For the G IP per iod. based
o n the results ac hieved so far in the sector. the prov ision of ed ucation and health services will
be ex panded with the focus o n ensuring the q uality of services provided.
6 . 1 E I) UCAT ION AN I) TR A I NI NG
The Educati on Sector Development Program for the GI P period (ESDP IV) has the goa l of
produci ng democratic. efficien t a nd effec tive. knowledgeable. inspired and c reat ive citizen s
who co ntribute to the realization Ethiopia 's vision of being a middle income economy. The
ESOP IV focu ses on ed ucating and tra ining a wor kforce that meets ind ustries' needs at a ll
leve ls, particu larly the grow ing manu factu ring industry. The plan for the OT P period has a lso
take n into accoun t the findings of the review of ESOP III. Based on that review. the ESOP IV
was deve loped with a strategic d irection to ens ure eq uitable acce ss to q uality ed ucation at
genera l, TVET and higher ed ucatio n levels, and a lso e nsure that these three education levels
have strong linkage s to, and interrelat ionsh ips with, each other. T he key o bjective ove r the
next five yea rs is to e nsure the ac hieve ment of the MOO targets.
6.1. 1Stra teg icDirecti ons
The strateg ic d irect ions that wi ll be pursued during the OTP per iod under ed ucation and
tra ining secto r, tec hnical a nd vocat ional educa tio n and trai ning as well as higher education are
presented below.
Ge ne r a l Ed uca tion: T he initiative s,already in place to ex pand basic ed ucational services to
all, and ach ieve the MOG targets, will be strengthened. Cost effective and part icipatory early
childhoo d care and ed ucatio n will be expa nded in both forma l and non -forma l de livery
mechanisms. The role of the gove rnme nt will be to facilitate po licy based services, such as
supervisio n to en sure qual ity, support for provision of materia ls, deve lopment and provision
of curricu la, sta ndards a nd guidelines. prov ision of ea rly childhood care and educatio n
class rooms, and space within formal primary schoo ls fo r co mmun ity dr iven progra ms.
With regard to formal education, the exi sting strategic d irection is to ensure equitable acce ss
to quality primary ed ucation. The undergo ing initiative of provid ing fair and acce ssible
q uality formal ed ucatio n wi ll be co ntinued and co nsolidated. Th e cur rent ge nde r dispar ity will
be el iminated by the end of the plan period. The educatio n strategy for children with spec ial
needs will be fully imple mented to meet the needs of this gro up.
An importa nt priorit y will be to improve and e nsure the quality and effic iency of ed ucat ion at
all level s. To rea lize th is prio rity, the General Educatio n Quali ty Improvement Package
(GEQ IP) wi ll be fully implemented. Its subseq uent impact in improving stude nt ac hieveme nt
Tec hnical a nd Voca tiona l Ed uca tion a nd Tra ining/TVli'T: A good quality and efficie nt
TV ET system will be established through full implementat ion of the TVET strategy. To
achieve this, gove rnment investment will be inc reased a nd cooperative tra ining will be fully
impleme nted in order to ensure provision of the human resources that will satisfy the demands
of the nation ' s labo ur market.
The TVET system will continue to serve as a potential instrument for technology transfer,
through the development of occupational sta ndards, acc reditation of competencies,
occ upatio na l assessment and acc reditation, a nd the establishment and strengthening of the
c urriculum development system. TVET institutions will serve as the ce ntres of technology
acc umulation for MSEs. Rigorous and regular monitor ing and eva luat ion will be carried out
amongst TV ET institutions. Government and private monitoring will enable them to ensure
the minimum levels of competency. The basis for M&E will be whether the tra ining tak ing
place is al igned with the demands of the economy and whether trainers are satisfying the
requirements cited in the tra iners' competency pac kage. M&E will also look at the tra inees
and assess whether they fit the profile and demands of the ir c hose n occupation and are ab le to
access j ob opportunities. Generally, the M& E system will eva luate whether TVET institutions
are o n the right track with regard to the strategy and, if not, take immediate corrective
measures for improvement.
IIigher Ed uca tion: T he key priority for higher ed ucation d uring the plan period will be to
e nsure qua lity and relevance. To this e nd, the management and administrat ion system of
universities will be improved and strengthened, and efforts will be made to enable the Highe r
Education Strategic Ce ntre and the Highe r Educat ion Qua lity Assurance Agency to ac hieve
the ir purposes. The performance and implementation capacity of technology institutes will be
built upon. Implementation of a full fledged teacher development progra m will ensure an
adeq uate supply of university teac hers. The revised c urricula will be impleme nted in line with
critica l issues. such as, instructiona l process, assessment and examinat ions and student
achieve ment.
The education provided by Higher Ed ucation Institutions (HEls) will be made compat ible
with the qua ntity, type and qua lity of the human resources demanded by the economy and the
labour market. Accordingly, the increase in enrolment in graduate and post graduate programs
will a im to be in line with the 70/30 program. A system will be introduced which wi ll enable
universities to raise thei r ow n interna l revenues. Th is will he lp them improve the qua lity and
relevance of ed ucation provided.
A techno logy transfer-centred resea rch syste m for HEls will be put in place. Ca pacity
building wi ll be undertake n to improve performance, especia lly of sc ience and tec hnology
institutes a nd departments. Ca pacity building will a im to make ce rta in HEls support economic
devel opment through technology tran sfer. In genera l, the research system in HEls will be
guided by the role they play in the econom ic growth and development of the country.
Assurance of the qua lity and relevance of education provided in private HEls will be another
key prio rity issue during ESOP IV. These institutions will be evaluated and q ua lity assured.
6.1.2 Objectives
The obj ectives of the education secto r development program are to ensure an effective and
etlic ient education and training system that enhanc es quality, etliciency, relevance, equity a nd
access at a ll levels. T his will be achieved through performance capac ity building. and the
devel opment of. and adherence to. competency c riteria.
Objectives of Gener al Ed uca tion: The ob jec tives for general educat ion are to expand access
to good quality primary and pre-primary education and to maintain their quality and
e tlic iency,expand good quality secondary education that serves as a foundat ion and bridge
for production o fa middle and higher level workforce that meets the demands of the national
economy and labour market, expand the intake capacity of HEls, e nsure equity in education
by narrowing gender, regional and urban-rural d isparities, and expand access to functional
adult literacy (FA L) to enhance the country' s all round development endeavours.
Objectives of Technical and Vocational Education and Trainin g/TV f.T : The objectives
for TVET are to provide an outcome orientated, good qual ity and equ itable service, in rural
and urban areas, that meets the demands of the national labour market. TVET institutions and
services will become cent res of technology transfer creating concrete capability to support
MSEs through technology acc umulation, building organisational capacity and transfer of
technology. To this end, particular emphasis will be given to develop ing an integrated TVET
package that wi ll involve all actors and stakeholders. The TVET integrated package will
strengthen the ab ility of industries to set occ upational standards and provide accred itation of
competencies. A main object ive for TVET is to support women and youth to gain work ing
skills and competencies that ensure they are econom ically self sutlic ient.
Obj ective sof Higher Edu cation : The objective for higher education is to establish HEls that
are foc used on result orientated management, adm inistrat ion and performance, and that
recogn ize and scale up best practices. A further obje ctive for HEls is to provide an increased
quantity and quality of skilled and capable human resources that meets the needs of the
country in regard to its development in genera l, and the manufacturing industry in particular.
To this end, HEls will ensure that enrolment prioritizes science and tec hnology. In addition,
success ful HEls, that have provided good quality a nd relevant education that meets the
demands of the economy and enhances the compet itiveness and competency of female
students, will be recognised.
6.1.3 Ta rgets
Ta rgets set for the plan period, as indicators of access, equity, qua lity and efficiency, and
which will help to monitor and achieve the general and specific object ives of the education
sector, are descr ibed below for general, TV ET and higher education.
General Education, quality and efficiency : All schoo ls and resource centres, at each level,
will have principals and supervisors who meet the standards set. By this means. a school
management system that ensures educational quality will be established. Students that
complete each cycle of education will acqu ire the civic and ethical behav iour desired.
Tab le 39 . GTP Target s for Genera l Ed uca tion
Description of Tar get s 2009/10 2014/15
I. lncreuse studen ts' score in exa m inations and usscssmcr us at all grade
50 90
levels of ev ery'subjec t l %)
2. Gross enro lment rate to r pre-p r ima ry edu cation(% ) 4.2 20
3 . Net enrolment ra te for prima ry educa tion ( 1-8) (%) 87.9 100
4. Gross enro lme nt rate to r gene ra l sec o nda ry ed ucat ion (9 · 10)(%) 39 .7 62
5. Gross enro lme nt rate of functiona l adu lt lite racy (%) 36 95
6. (I cndcr disp aritytl -x} (% ) 0 .93 : 1 I : I
Tab le 40. GTP Targets for Technica l and Vocational Education and Training
Desc ription of Tar get s 2009 /10 2014 /15
I. Compete nt/cert ified ca ndid at es(%) 23 60
2 . Tech no log ies that ca n hel p create wealth and increa se income (no ) 30 00
J . T VET grad uates that enter the labou r market and be e mp loyed(%) 90
TVET system ca pability wi ll be estab lished to acco mmodate participants who have the need
and readiness to atte nd TVET and who can satisfy the minimum requ irements for each level.
Higher edu cation : Universities wi ll strengthen manageme nt and administration syste ms thai
can promote their missions of achieving quality and relevance of education. They will
cond uct research, which focuses on so lving problems in q uality and relevance and
development, and they will enhance community services. Provisions for sta ndard fac ilities of
libraries a nd laboratories will be assured in a ll HE!.
Tab le 4 1. GTP Targets for Ili gher Ed ucation
Description of Tar get s 2009 /10 2014 /15
I. University teac he rs (no) 23.()()()
a. Teachers wit h second deg rees (%) 75
b. Teachers with PhD degrees (%) 25
c. Student - tcachc r ratio 1:20
2. Annual inta ke for pos tgraduate progra ms (second degree and PhD (no ) 16.1 00
3. The ave rage grad uation rate of unde rgr ad uate program (%) 93
a . The gra duati on rate undergradu ate programs for fe males (%) 90
b. The gradu at ion rate undergrad uate prog rams tormales (% ) 95
4 . Gross ad missi on for unde rgraduate prog ra m (7 0:30 progra m m ix) (n o) 185.78 8 467 .00
5. Participation rate of fcma les in undergra duate progra ms (%) 29 4
6. Participation rate o f females in pos tgraduate prog rams (%) 10 2
6,1.4 Implemen ta tion St ra tegies
The qua lifications of teache rs. at every stage and for every type of education. will be
upgraded as described in the teacher development blue book through pre-service. in-service
and continuous professional development schemes. by provision of spec ial training to English
teachers to raise their proficiency at each leve l. per the standard set. by application of an
assessme nt tool for and identification of skills gaps. by fully implementing the Maths and
Science strategy that aims to raise student awarene ss and motivation for improved learning in
maths and science and achieving better res ults in these subj ects. and by creating strong
linkages and harmo ny between the curricula of different primary education. secondary
education and teacher training institutions c urricula.
To improve the qual ity of education. digitized (plasma based) secondary education will be
deve loped in a way suitable for broadcast. To implement th is initiative a chec klist will be
deve loped to determin e the expected att itudes. skills and inputs requ ired. The d igitized
broadcast strategy aim s to implement the GEQI P effi ciently, establish an effective M&E
system. evaluate the impact of the GEQIP upon changes in student achievement and
eventually upgrade excellence of the GEQ IP and its implementation.
With regard to equity and access. the Early Childhood Care and Education policy package and
strategy wi ll be fully implemented. Participatory school construction and networks will be
promoted . The distance between childre n's homes and schoo ls will be reduced. The existing
Alternative Basic Education Centres to regular schools will be transformed. More Alternat ive
Basic Education centres will be established when and wherever necessary. A strong
transformationa l nexus between Alternative Basic Educat ion centres and formal primary
schools will be estab lished.
In sca rcely populated areas, as a means of integrating and maintaining children in school and
of meeting the needs of pastoralist and semi-pastoralist students. strategies adopted will
include open multi-grade classes, open mobile and para-boarding schools and school feeding
programs. To improve the access rates of children in eme rging regions, affirmativ e action for
c hildren with vulnerabi lities will be promoted. To increase access to secondary educa tion.
secondary schools will be expanded. The expansion of secondary schoo ls will also involve
increased provision of secondary preparatory education. to meet the demand of the economy
for a skilled human workforce and be matched with the intake capacity of HEI. The private
sector. NGOs and the community will be encouraged to open secondary schools. Support will
be provided and monitoring of quality carried out to e nsure the standards of these schools
meet requirements.
Implementation strategies for functional adu lt literacy will follow the FAL strategy and
include interventions to provide curriculum and guidel ines, institutionalize training of FAL
fac ilitators at a ll co lleges of teacher educat ion in order to carry out fac ilitator tra ining
effic iently. The strategy for Special Needs Education to ensure equity and access will be
implemented. A robust M&E system will be put in place at a ll levels and cor rective actions
taken where required.
Techni cal and Voca tiona l Ed ucation and Training : Implementation strategies here include
Other ma in strateg ies are to prior itize occ upations and facilitate co nditions for provision of
comprehensive in-com pany tra ining. From among graduates, those with high competency wi ll
be selected for the post of tra iners at T VET ce ntres. Further, implementat ion strateg ies are to
promote selected and ex perienced tra iners to senior levels of training and managem ent.
Accredited trainers and teachers will be given owne rship ove r various training and technology
tran sfer activities. The capacity of the industria l work force will be improved to internatio nal
labour market standards. So as to ac hieve sustainabil ity of the TVE T system. the ind ustry ' s
institut iona l ownership of TV ET syste ms will be ensu red. It will be ensured that all TVET
centre s have competent and acc redited trainers for a ll occ upat ions in dem and.
Main TV ET implementation strategies for stre ngthening MSEs are to provide capacity
development, by promoting them as centres for techn ology tran sfer, ensure a decent ralized.
integrated and outco me based T VET syste m throughout the co untry, rea lize com petencies at
every level. strengthen the TV ET system throug h regular organizational monitoring, involve
stakeholders in occ upational standards, develop the curricula. training and assessment tasks.
establish a syste m for tra ining needs analys is. continuously upgrade occupationa l standards.
and conducting train ing of involved personn el.
IIi gher Ed ucat ion: For higher ed ucation, implementat ion strategies pursued will seek to
strengthen university leadersh ip and providing leadersh ip tra ining for new ca ndidates of
higher and midd le leve l positions. The intake ca pacity of all universities espec ially in sc ience
and technology and teac her development programs wi ll be increased. The professiona l
competence of HEI teachers will be sca led up by providing them with tra ining on, among
other subj ects. pedagogy, student assessment and action resea rch. The new universities
c urrently under co nstruction will be made fully o perat iona l and they will be furnished with
the eq uipment necessary and e ncouraged to give priority to science and technology and
teacher de velopment programs. A system to promote institutiona l & teacher com petence and
expert ise in cond ucting research and adapting technology will be esta blished. The National
Qua lifications Framework will be developed and implemented. All universities will be
e ncouraged and supported to establish well organized a nd policy guided interna l quality
assurance systems. The ca pacity of HEls to undertake grad uate tracer studies a nd ana lyze
employer needs will be developed. Lastly, it is expected that HEls will be ab le to revise and
improve their curricula. as we ll as deve loping schemes for the provision of affirmat ive actions
for those who need additional support. (fema les. yo uth with d isab ilities. emerging regions.
etc) such as. spec ia l ad mission criteria. tutorial support a nd scholarship o pportunit ies.
6.2 H EALTII
In prior year s, remarkable ac hieveme nts have been rea lised in the ex pansion and co nstructio n
of health facil ities and improvement of the quality of hea lth service provision . The Health
Extension Program is an innovat ive hea lth service delivery progra m that aims at universa l
coverage of primary hea lth care. The program is based on expanding phys ical health
infrastructure and deve loping Hea lth Extension Workers who prov ide basic preventive and
c urative health services in the rural community. The Health Sector Development Program IV
6.2. 1 Strategic Directions
The co re e leme nts of the health strategy are dece ntra lization of the hea lth care sys tem,
development o f the preventive. promotional and curative co mponents o f healt h care,
assurance o f acce ssib ility o f hea lth ca re for all segments of the population a nd the promotion
of private secto r and NGO s part icipat ion in the healt h sector. In add itio n.hea lth pol icy g ives
focus to health promotion and disease prevention, curative and rehabilitative services.public
health emergency prepared ness and to enabling the population to contribute its own health.
The health sector development plan aims at ensuring community ownership and
empowe rment through effective socia l mobilization. en hanced and susta ined awa reness
creation. supporting com munity o rganizatio ns and creat ing an e nviro nment co nd uci veto
community ownership and em powerment. The Hea lth Extensio n Program will be the prima ry
vehicle for preven tative healt h, healt h promotion, behav ioural change co mmun icat ion and
basic curative ca re thro ugh effective implementatio n o f sixteen pac kages.
The del ivery of good qual ity hea lth services is cent ral to improv ing the healt h status of the
po pulation . The Qua lity of Health Service applies a three-pronged approach to improv ing
qua lity o f hea lth services. A Hea lth Care Financi ng Strategy aims at increa sing reso urce flows
to the hea lth sector, improving the e fficie ncy o f resource utilization, and ens uring
susta inability o f financin g to improve the overa ll coverage and q ua lity o f hea lth service. Steps
to invo lve the co mmunity in the planning. implem entation. monito ring and eva luatio n of
hea lth interven tions will be strengthened. The role of the privat e sector in the de livery o f
health services will be increased in the plan pe riod. Vertical integration o f program
inte rventions at the point o f hea lth service deli very w ill be given high priority.
The pr imary focu s du ring GT P will be on the provision o f qua lity primary healt h care for a ll.
Thushea lth ce nte rs will serve as a first curative referral ce nter for liP s and wi ll provide health
care that w ill not be avai lab le at the li Ps through ambu latory and some cases of inpatie nt
admissio ns. Health post and healt h centers will be equi pped and staffed as per the standard
and expanded in a ll Woredas. Notw ithstanding the primary foc us o n primary hea lth care. due
e mphasis will a lso be given to the expansio n of higher qua lity hospital services a s per the
policies and strategic di rect ions of the health secto r. Refe rra lsystem will be stre ngthened
through effective implementatio n of the new guide line. To provide bett er q ualit y o f hea lth
services. the human reso urce strategy of the hea lth sector w ill focu s on retain ing t rained
hea lth professiona ls on the one hand. while on the other hand g iving greate r atte ntion to a
larger sca le training o f specia lists, med ical doctors and midw ives to co mpensate for the bra in
d rain.
Of particu lar impo rtance, g iven the fact t hat hea lth outcomes depend on so many facto rs, is
the inter- sec tora l co llaboration in crossc utting areas such as wate r supply and sa nitation,
educatio n, ge nde r,populat ion. and food supply. Also. give n the partnersh ip and network ing
between the Government and NGO s and civ il society and private secto r organizat ions
engaged in hea lth re lated activ it ies is beco ming increasingly impo rtant in enhancing
implemen tation of the program . In addit ion. the hea lth sector will forge st rong part nership a nd
standardized and competitive specialized hospitals will be promoted to provide quality health
services not only for Ethiopians but also for other citize ns to generate foreign currency a nd
promote and enhance national self-reliance in health development by mobilizing and
efficiently utilizing internal and external resources. Private pharmace utica l factor ies will also
be given much em phasis by providing incentives to sustainably produce and de liver quality
pharmaceuticals.
In order to achieve the des ired results of the health sector, a resource mob ilizat ion and
procurement (health care financing) strategy will be implemented. To ensure sustai nable
national pharmaceutical and service supplies to health facilities at all levels, adequate budget
will be allocated. So as to e nable uninterrupted and adequate pharmaceutica ls and medical
equipments to hea lth facilities, the necessary incentive package will be considered. In
addition, significant reduction in pha rmaceut ical wastages and improved rational drug use
will be another focus of the strategy.
Strategic direct ion related to HIV/AlD s: On the basis of the National IIIV/AlD s Policy
emphasis will be on expansion of effective prevention and control act ivitie s,promotion of
basic curative care related services, strengthe ning the systematic collection and use of
HIV/AlD s related informat ion, providing special care and protection to m V/AIDs patients,
mobilising adequate and susta inable resource to fina nce the HIV/AlD s strategy , as we ll as
on reducing vulnerability and new incidence to IIIV/AlD s.
In addition, focus will be given to a National Children Health Strategy aiming at the reduction
of under five morta lity, expanding family planning. ensuring pre and post natal cares and
support. hygiene and sanitation and reduction of major communicable diseases.
6.2.2 Objectives
The general objective of the health sector is to improve the health of the population by
promoting health of citizens a nd prov iding preventive. curative a nd reha bilitative hea lth
services. Specific objectives are to
Improve acce ss to health ser vice: Th is object ive includes provrs ton of affor dable health
services to improve the health of mothers, neonates, children. adolesce nt and youth, reduce
the incidence and preva lence of m V/AIDS, TB. malaria and other communicab le and non -
communicable diseases and improve hygiene and environmental health.
Improve quality of health services : Thi s objective includes provision of health services of a
standard quality by hea lth facilities at a ll levels. The standards app lied cover speed of
de livery, harmonization at the point of service delivery through the integration of vertical
programs, exploitat ion of opportunities ar ising. service effectiveness, patient safety and the
ethics and professionalism in service delivery.
Improve public health emer gency preparedness and response: Th is objec tive includes
improvements in health risk identification, early warning, response and recovery from
existing and emerging disease epidemics, acute malnutrition, and natural disasters of national
and international concern.
Imp r ove evidence based decision making: Th is ob jective aims at evidence based decision
making through enhanced partnership. harmonization. alignment and integration of projects
and programs at the point of health service delivery.
Impr ove human ca pita l a nd leader ship : This obj ective involves leadership development.
human resource planning. development and management including recruitment. retention and
performance management. community capacity development and technical assistance
management of the health sector. Add itional objectives for the hea lth sector in the plan period
are to improve community ownership. maximize resource mobilization and utilize as well as
improve the regulatory system of the health service delivery.
Imp r ove Commu nity Initiatives/Participation and Own erships: This obj ective
e ncompasses awareness creation and ensuring community participation in policy formulation.
planning. implementation. Monitoring and Evaluation and mobilization required to implement
health sector developme nt programs.
Imp r ove Resource Mobilization a nd Utiliza tion: This objec tive includes a proact ive
approac h in the mobilization of required adequate and sustainable resources from ava ilable
sources and eff ectively utilize the resources to ac hieve MDG targets.
Impr ove re gulator)' syste m: Th is obj ective is about ensuring safety in the del ive ry of health
services. products and practices; prevention of professional malpractices: enhancing
e nvironmental healt h activities: enforcing regulations and prevention of drug abuse;
6.2.3 T a rgets
The main targets for the health sector in the plan period are presented in the following table.
Table 42. GTP Target s for Health
Description of Target s 2009 /10 2014 /15
I. Decrease maternal mort ality ra te per 100.O(H) mothers 590 267
2 . Dec rease under Ilvc mor tality rate per lO(H) child ren 101 6S
3. Infa nt mo rtality rate (pe r 1000 live bi rths] 77 31
4. Increase family planning service (C PR ) (%) 32 66
5. Increase Penta 3 lmmunizctlon coverage (%) R2 96
6. Reduce IIl V/A IDS incidenc e (%) 0.2 8 0, 14
7. Increase T B Case Detec tion Ratc (%) 36 75
8. Red uce malaria incidenc e (%) 0.7 <0 ,7
6.2.4 Implementation St rategies
High priority health sector implementation strategies are to strengthen and scale up the Health
Extension Program. T he construction. expansion and improvement of health centres and
hospitals. including expansion of specialized hospitals will be acce lerated. Health posts and
role of private sector will be enhanced, the estab lishment of hospitals providing specialised
services improved and pharmaceutical supply and services improved by providing incentives
for local pharmace utical produc ing institutions. T he ongoing civil service program will be
strengthened. Public-private partnerships will be developed. Activities that ensure the
participation of a ll stakeholders will be scaled up.
CHAPTE R 7.
CA PACITY BUI LDI NG AN D GOOD GOVE RNANCE
Rem arkable res ults we re achieved over the past plann ing periods in terms of e sta blishing a
stable deve lopm ental and democ ratic gove rnmenta l system. These achieveme nts in good
gove rnance and the democratization process p laya key role in ens uring rapid and susta inable
develo pment. human and ca pita l reso urces deve lopment a nd for achieving susta ined eco nomic
development and Ethiopia' s MDO targets by 20 15. Thus based on the achievements and
c hallenges expe rienced so far, the GT P envisages to co nso lidate the capacity build ing,
democ ratizatio n and governance programs of the country.
7. 1 CA PACI T Y B UI LDI NG
7. 1.1 St ra tegic Directi ons
Strategic directions in the capaci ty building component incl ude a conce rted and integrated
effort to enhan ce the capacity of the ci vil service to imp lement government policies and
strateg ies e ffective ly a nd efficie ntly. Another major strategy d uring the GT P period is the
sca ling up of best practices in the design and implementatio n of c ivil service reforms in
Ethiopia. To implement this strategy. civ il service reform program activi ties to date wi ll be
rev iewed. and best practice s identified. packaged and sca led up. Three key strategic directions
are described be low.
Esta blish gove r nme nt str uct ures wit h s tro ng implem ent ing ca pa ci ty: Th is strateg ic
di rectio n will involve. during the plan period . the full implementation of the Ci vil Service
Reform Program at a ll levels of the government st ructure (federa l and regiona l) in orde r to
strengthen the refor m age nda . Civ il servants will participate in awa reness creatio n activ ities
that a im to deve lop who lly positive attitudes towards serving the public. ensure that they fully
understand gove rnment's policies and strategies. and are ca pable of implementing them.
Ove rall th is strategy a ims to ensure increased e fficie ncy. effect iveness. accountability and
transparency of public sector service de livery. In particu lar, the Balanced Score Card. a n
init iative of the c ivil service re form programs. will be implemen ted with comm unication
support to strengthen the work ing systems.
Ensu re tra ns pa re ncy a nd co m ba ting cor r u pt ion fr om its so urce: This strategic d irection
will involve initiatives to imp lement fully a system of asset d isclosure and reg istratio n by
every citize n with a view to recognizing and protect ing the ir rights. The tax admi nistration
will be improved through strengthening the tax info rmation system. enforce ment and public
ed ucation. An urban land registration syste m that ensures transparency and accoun ta bility.
tenure sec urity and efficie nt land and immovab le property market will be set up. Awa reness
will be crea ted through ed ucatio n o n ethics to encourage citizens to nurture a ze ro tolerance
for co rruptio n and rent seeking behavio ur. A system for transparent disclosure and reg istratio n
of assets owned by political leaders and public officia ls will be establ ished, The systems
action will be ta ken to enhance the partic ipation of women at Woreda and Kebele level,
engage and mobilize the public in local infrastructure deve lopment act ivities such as primary
school and health station construct ion, create an enabling environment for professional and
public associatio ns to enable them to protect and promote their rights a nd benefits. introduce
and make o perationa l inst itutio nal and organisatio nal mechan isms. in a ll spheres of
governmen t and for professional and public association s. to encourage and ensure full public
participation in the formulation and evaluation of govern ment policies. strategies and
deve lopment plans. support professiona l and public associations and organizations in their
efforts to build inter-o rga nizat ionalinitiat ives that promoting princip les contributing to
democratisatio n such as tolerance, respect for the rule law, etc.
Incorpor at e a nd Implement C ross C utt ing Issues in the C ivil Serv ice: During the plan
period. part icu larfocus will be given to empowering women through capacity building.
Affirmative act ion will be taken to increase the partic ipatio n of women in education and
training; this will increase the number of women who hold decision making posts. Gender
issues will be mainstreamed in the implementation of capacity building programs and in
monitoring a nd eva luatio n systems.HIV/AIDS aware ness creating programs will be designed
and implemented to increase the awareness of civ il servants a bout the eco nomic and social
issues involved a nd to increase the level of support for those affected by the d isease. including
orphans. In accordance with their con stitutio nal rights. an enviro nment cond ucive to
increasing the contribution of people with disabilities to the civ il service will be estab lished.
Aware ness c reation workshops and training sess ions will be arranged that increase the
understand ing of civ il servants abo ut the negative impact of cl imate change and global
wa rming and about population policy implementation.
During the GTP period. the ca pacity of outsta nding young professiona ls will be developed
and a system made operational to increase their participation in middle manageme nt decision
making positions. To this end the proportion of young graduate professiona ls in the civ il
service will be increased. With individual e fficiency as the botto m line. affirmati ve action will
be taken to e nsure that civ il se rvant appointments to deci sion making positions represent
proportionate ly eac h of Ethiopia' s nations and nationalities. In addit ion. part icular focus will
be give to increase the opportunitie s for education and training of minorities.
7. 1.2 Objectives
The GT P objective for capacity building is to ensure accountability and transparency in
governmenta l operations. working procedures and systems. In addit ion. emphasis will be
given to capac ity bu ilding that supports the implementation of government's policies.
strategies and programs.
7.1.3 Main Target s
To ac hieve the object ives set for ca pac ity building. the following ta rgets will be implemented.
Imp r ove the ca pacity of top lead ership : Leadership is crucia l in strengthening democracy
and building good governa nce, and in implementing government polic ies. strategies and
legislative frameworks and esta blishment of modern HRD systems. An objec tive HRD
measure s is to e nable c ivil servants to be more responsive to pub lic demand s a nd to
implemen t government policies, strateg ies and programs in a n effi c ient, effe ctive, t ransparent
and acc ountab le man ner.
Build the capacity of government institut ions : HRD, orga nisational deve lopment a nd
improving o perationa l systems and procedures are three pillars of capac ity building. Th is
section dea ls with the latter two a spects. Some of the main area s of focus in building the
capac ity of government instit utions will be to transform government agenc ies so as to
improve service de live ry, improv e the ir eflic iency and e ffe ctivene ss in providing pub lic
services, and enha nce implemen tation capac ities throug h improved working systems and
procedu res as we ll as establishing approp riate o rganisationa l systems. Surveys have shown
that the majori ty of go vernment agencies have already shown gains in efficie ncy as a result of
var ious intervention s in the last strategic planning period. However, the same surveys a nd
evaluations revea l that effectiveness is at its infanc y and much needs to be done to improve
the situation in the next planning period. The survey findings have established a base line and
it is intended that the e ffectiveness of a ll governm en t agencies \\" i11 be at a much higher level
at the end of the planning period. Tar gets set for the plan period will be measured aga inst
predeterm ined standards as a result of full sca le implementation of USC and of the monitorin g
and eva luation mechan isms estab lished.
Esta blis h a more tra nsparent , accou ntab le, efficien t & effective gover nmental fina ncia l
managem ent system : The obje ctive is to esta blish an effec tive. efficient, transpar ent,
accountabl e and modern governmenta l financial mana gemen t system. Th is will be achieved
through introd uctio n of lega l instruments, pro perly mana ging ex penditures, putting in place
cont rol syste ms. a nd emp loying skilled a nd co mpetent personnel. During the previous plan
period. various projects were designed and implemented to introd uce modern governmenta l
financial management systems. The GT P will furt her build on the success ful practices and
ga ins of the reform process to date .
Ensur e a trans parent and acco unt able system : The purposes of th is objective are to
institutiona lize systems ensuring transparency and accou ntab ility throughout the c ivil se rvice
so that the att itudes and actions of c ivil servants are directed toward s serving pub lic interests.
Th ere are indicat ions. follow ing the var ious interventions taken in t he last five year s t hat
transparency and acc ountabili ty exist to a de gree within the c ivil service. During the GT P
per iod procedures for access to info rmation. compla int handling, pre-noti fication of service
requir ements. and disc losure of pub lic information will be introduced to e mbed transparency
and accountability within the ci vil service. A re lated issue co ncerns co mbating rent seeking
attitud es and pract ices. Th e target here is to substa ntia lly red uce rent seeking attitudes and
prevent and co ntro l resulta nt pract ices/behaviours/ in the pub lic service and of ot her actor s.
The foc us will be on those re lated to tax admin istrat ion. urban land adm inistration,
procurement and othe r susce ptible areas.
Enha nce pub lic par t icipa tion : Publ ic partic ipatio n is cent ral to ensuring Citizens ow n
devel opment and to the success of good governance initiatives and to sustai n them. C itizens
previously, however, the part icipation ofC BOs needs further improvement and so, in the GTP
period, remed ial actions will be taken to strengthe n the degree and consistency of public
participation.
Build the ca pacity of woreda a nd kebe le councils: Building the capacities of woreda and
kebele councils by training staff and improving working systems is of paramount importance
in strengthening good governance and democracy at loca l levels. The focus during the plan
period will be to strengthen the implementation capacity of both urban and rural woreda and
kebele councils by establishing improved operational systems, enhancing the capabilities of
counc illors, deepening democrat ic participation, establishing transparent and accountable
systems, and strengthening internal controls.
Enha nce civil se rva nts ' aware ness of th e supremacy of law: This ca pacity building
objective aims to ensure that civil servants have good knowledge and understandi ng a bout the
importance of the supremacy of law and that the law is applied. A change of attitude among
civil servants is intended. Government agencies make a critical contribution to the fair and
proper implementation of laws enacted by the government. For this reason c ivil servants
should have knowledge of the content a nd purpose of laws and regulations that a re relevant to
them; they should be able to apply the m fairly and fully. Civil servants will in future be
supplied with a ll newly passed laws and regu lations, along with supporting documents. A
lesson learnt during the previous development plan is that even though pertine nt new laws and
regulations come into existe nce, c ivil serva nts have a habit of carry ing on their duties and
responsibilities as they d id before; it is business as usual. It is intended to change this situation
and ensure all civil servants are knowledgeable about and apply properly all laws and
regulations. T his will be achieved as by iden tifying those laws to be prioritized and creating
awarene ss among the civil servant with training and workshops. Priority areas are, among
other, the Civil Service Proclamation and those proclamations relating to education. hea lth,
the constitution, government finance, the budget proclamation, counterterrorism, broadcast,
freedom to information, c harities and soc iety's.
7. 1.4 Im pJeme nting St rategies
The implementation strategies here refer to enhancement of skills and knowledge of the
implementing agencies and agents, from lower to management level, wider application of best
practices, as well asensuring effective communication that mobilises public participation for
t ransformationa l reform. Experience sharing between different administrative levels will be
strengthened a nd the participation of stakeholders in the reform process enhanced. A well
d irected and organized mon itoring and evaluation system will evaluate the impact of the
reforms introduced.
All inclusive ca pacity building: Particular atte ntion will be given to increasing the
implementation ca pacity of all developmenta l stakeholders; in the governmental, private
sector and the public arena s. The comprehensive capacity building implementation package
includes integrated human resource development. organisational development and operational
systems working closely together.
Hence, a coord inatingtime a nd cost while implementing ca pacity bui lding programs.
institute wi ll be established to ove rsee the ove ra ll acti vities.
Harmonize capacity building activities with the reengineering reform program : Reform
is a co ntinuous process in the capac ity buildi ng program. There wi ll be unpredictable
o bstacles or, a lternatively, good o pportunities that a rise du ring impleme ntation of the capac ity
building program, which were not anticipated du ring the plan preparation. For thi s reason , it
is an imp lem entat ion strategy to watc h for and take advantage of o pportunities that ar ise a nd
add ress and resolve o bstacles duri ng impleme ntation.
Enhance reengineering reform communication s : Unless the reform program is supported
by a co mmunicat ion strategy, it w ill be diffi cu lt to create the support for ca pac ity build ing
reform among the c itizens, and in part icular amo ng the civil servants, t hat ensures the ir
e nthusiastic support a nd full co ntr ibution in implementing gove rnme n t's age nda. To add ress
th is issue, a strate gy has been designed to ensure the full comprehension at top manage ment
level as to the impo rtance of communicat ion for effective reform . During PASDEP, a high
level of support and ent husiasm for re form was ge nerated in soc iety ge nera lly, and in
impleme ntation agenc ies in part icular . During the GTP period, e ffo rt will continue to be made
to increase support further through the co mm unicating strategy; the r efo rm program will be
core to the da ily acti vities and tasks o f governme nt orga nizations.
Suppo r t the reform with I'C'F: To date a va riety o f activities have taken place to tran sform
gove rnme nt organ isat ions. These incl ude Business Process Reengineer ing a nd Balanced
Sco reca rd.The Business Process Reen gineering exerc ise is now fully o perational in most of
the fe deral and reg ional government inst it ut ions,while Balanced Scoreca rd is in the process
of be ing imp lemented. It is importa nt these r eform measures are supported with ICT in o rde r
to ensure the c ivil se rvice is effect ive, e fficien t, transparent an d accounta ble, as wel l a s to
increase t he co ntribution of c ivil se rvants to the tran sformati on process. In th is context, it is
planned to automate Business Process Reengineering a nd Ba lanced Sco recard by introdu c ing
new software, test ing and then fully implemen ting the syste m in a ll government age nc ies
duri ng the plan period.
7.2 INFORMATION AND COMM UNI CATION TECHNOLOGY DEVELOPMENT
7.2.1 St ra teg ic Directions
The strateg ic d irecti on s to be pursued for enhancing informa tio n and communicatio n
tec hnology devel op ment in the cou ntry are development o f information comm unication
techno logy infrastruct ure, ICT human resources and the lega l and sec ur ity syste m related to
ICT. In add itio n, deve lopme nt of e-gove rnance thro ugh use of IT, enhanc ing role of private
sector in ICT, and pro motio n of IT research and de velopment will rema in strateg ic d irect ion
of the sec tor dur ing GT P period.
7.2.2 0 bj ectiycs
as organ izat iona l a nd human resource ca pa bility. Expansion and development ofi CT will also
be encouraged by developing and putting in place un iform procedures, standardization of the
tec hnology applications and improving the effi ciency and effectiveness of the human and
financial resources available for ICT.
7.2.3 Major targets
During the GTP period. the maj or targets for the lCT sub-sector are to develop human
resources for ICT to support overall develo pme nt of the sector. Development research will be
conducted to enhance the contribution of lCT to economic growt h and soc ial development. A
suita ble policy, legal and regulatory env ironment will be created that contributes to poverty
eradication and expedites the success of deve lopme nt objectives. A uniform set of proced ures.
standards and quality contro l mec hanisms will be deve loped and put in place for the lCT sub
sector. The use of human and financial resources will become efficient and effective. Finally.
a key target is to prevent and fully contro l illegal activities and there by ensure the security of
the ICT syste m.
7.2.4 Implementation Strategies
The first strategy is to promote the development of ICT infrastructure and services in
connection with higher ed ucation institutions so as to ensure susta inability. quality a nd
releva nce. The private sector will be encouraged to enhance its role in the sector, while a n
lCT Park will be developed in Addis Ababa. Other implementation strategies that have been
designed to ac hieve ICT objectives by the end of the GTP period include: develop and
standardize the ICT infrastructure a nd services; improve the nationa l a nd regional states
information excha nge systems by installing broadband internet networks; provide ICT
services to beneficiaries at compet itive prices; support IT professiona l needs in se lected
economic sectors within the country, fac ilitate the provision of computer education and
tra ining to soc iety at a large sca le; create an enabling e nvironment that supports increased
innovation, creativity a nd professionalism of ICT professiona ls; enact legal instruments
relat ing to ICT resources and services development and ensure that these are incorporated into
other development polic ies, strategies and programs; revise the legal and regulatory
frameworks, in collaboration with national and inte rnational stakeholders, to improve and
expand ICT development; put in place management and quality control directives and
standards that regulate the supply of lCT services and products; introduce the disposition of
alphabet s of national languages and make use of the Unicode Technology; provide support
and foster ICT research a nd studies; develop the informatio n Kiosk; and e ncourage
development of a culture of internet use for various economic and socia l activities and create
e nabling conditions to increase computer ownership.
7.3 JUSTI CE SE CTOR
7.3. 1Strategic Ilirections
The overa ll strategic direction for the j ustice sector is to contribute to establishing a stable
understand ing and aware ness of con stit utiona l issues will be enhanced. Customs and
traditions of peaceful reso lution of disputes will be given specia l emphasis and will be applied
widely during the GTP.
7.3.20bject ins
The objec tives of the j ustice sector are to strengthen the constitutiona l system and ensure the
rule of law. make the justice system more effec tive, e fficient and accessible as well as more
independent. transparent and accountable. In add ition the GT P aims to consolidate the process
of creating a democ ratic. stable and strong federa l system that ensures the peace and security
of cit izens.
7.3.3 Ta rge ts
Human r esour ce capaci ty development: The new c urriculum for Bachelor of Laws (LLB)
deg rees will be fully implemented. Teaching materials will be prepared for the new
curriculum and wi ll subsequently be eva luated and upgraded regu larly. An a ppropriate
number of professionals will be trained for the ir second and th ird degrees and a system wi ll be
esta blished to th is effect. Training will be based on needs assessment and pre-service training
will be given to newly appointed prosec utors and jud ges. Short term training will be provided
at least once a year for j udges and prosecutors serving at all levels ranging from Woreda up to
Federal Supreme Cou rts. so as to enhance their capacitie s and to address the ir shortcomings
related to att itude, knowledge, eth ics a nd skill. The capac ity of other professiona ls in the
j ustice system will be enhanced. To th is end. the federa l a nd regional level tra ining institutes
will be well equipped, while researc h works that help build the capacity of professionals
working in the ju stice sector will be encouraged. Ethical standards will be set a nd e nforced for
practic ing lawyers and attorneys.
Imp r ove th e tran sparen cy and account ability of th e ju stic e syste m: A system to increase
transparency and accou ntability wi ll be fully established. A mechanism will be estab lished to
evaluate the effective ness of the professionals. Ethical princ iples will be made know n and be
implemented fully by the professiona ls involved. Complaint handl ing offices will be
strengthened. An effe ctive and cost saving resource manageme nt system will be estab lished
and implemented. Strong monitor ing, eva luat ion and support systems will be estab lished.
Independence, tran sparency a nd acco unta bility of th e judi cia ry : A system will be
established to ensure acco untabil ity, wh ile guarantee ing the jud ic iary' s independen ce. The
appoint ment of judges will be based on competence and will ensure fair regional and gende r
representation. The performance eva luation system for j udges will be expanded, continuity of
the eva luation system will be ensured, and the screening process will be improved. A system
will be estab lished for the speedy resolution of discipl inary matte rs that are brought before the
jud icia l administrat ion co uncil.Improvements will be made based on consultations with and
cont ributions from service users and stakeholders. The hearing process in the justice system
will take place in full in open courts. Cessatio n dec isions and laws wi ll be made avai lable in
time for j udges.
lit igants wi ll be provided with adequate legal counsel, a id and translation services. The
number of j udges will be increased to ensure that the number of ju dges corresponds to the size
of the populations they serve.
Rehabilitation of prisoner s: National prison inmate ha ndling and protection standards will
be prepared and implemented to ensure appropriate rehabilitation of prisoners. All prison
inmates will be encouraged to become productive a nd law abiding citizens by attending civic,
ethics, academic a nd professional training sess ions. Inmates will be helped to increase their
income by taking part in developmental works. Their human rights will be ensured. Provision
of/for inmates' accommodation, health, nutrition, communications and recreational services
will be improved. A system will be estab lished and implemented to follow up the integration
of inmates in society released after serving their terms. Efforts will be made to improve the
public image of prisons.
Strengthen the federal system : The values of peace and tole rance will be promoted and the
capacity to reso lve disputes peacefully will be strengthened. Mechan isms will be established
and implemented to detect and prevent confl icts before they occ ur a nd resolve conflicts that
have a risen before they result in harm. In this respect it is noted that, the capacity to resolve
d isputes permanently is dependent on research related to conflicts. Measures will be taken to
enhance the values of tolerance and respect between religio us institutions and their followers.
Solutions to religious confl icts will be sought and implemented through research which will
be conducted to identify sensitive religiou s issues. The awareness of the leadership at all
levels, and that of the population, of issues relating to interstate relat ions and federalism will
be significantly enhanced. A system will be established to ensure permanent
inte rgovernmental agency, as we ll as federal and regional state, relations.
Increase public participation : Partic ipat ion of the j ustice system staff in the preparation and
evaluation of plans as well as on other necessary issues will be strengthened (internal
participation). Measures will be ta ken to improve and enhance the partic ipation of
stakeholders in issues related to justice (externa l public part icipation).
Improve sector communication : Public relation activities will be carried out to raise
sufficiently the awareness of governmenta l agencies and of the public a bout the performance
of the j ustice organs. The preparation and publication of professional magazines within the
ju stice organs will cont inue.
Enhance the use of l eT in the reform process: A national integrated ju stice information
system will be established and put into use. Actions will be taken to support the court system
with information communication technology which will be extended to all courts in the
country. A public prosecutor information system will be established and put into use. All
work processes and offices will be modernized by developing appropriate software and a
databa se for file and record keep ing. Information about inmates will be supported by ICT and
there will be maximum utilization ofI CT in all the training centres.
Ensu re the mainstreaming of cross cutting issues in justic e sector: The j ustice sector will
devise and implement a mechanism whereby the rights of women and children as well as of
7.3.4 Implementation Strategies
To ach ieve the objec tives and ta rgets established for the ju stice sector, during the GT P period.
a number of implementation strategies will be adopted. These are summar ised in the
following paragraphs.
The reforms required will be supported by specific initiative s to build implementation
capacit ies of the agencies involved. The law requ ired will be drafted, codified and
consolidated, prior to adoption, based on proper research. At all times the sector will render
e ffective, e ffi cient, accessible and predictab le j ustice to a ll and ensure the e tlic ient and
effective execution of court decisions. Strategies will be implemented that preve nt crimes that
endanger the constitutional system and public interest and, where such crimes are com mitted,
the perpetrators will be brought to ju stice. Prisoners will be helped to become law ab iding,
skilled and to respect the rights of others. An e nvironment conducive to ensuring last ing peace
and respect between religions and religious institutions will be created. Good gove rnance and
deve lopment will be supported by conducting legal researc h, raising the knowledge and
awareness of the public on human rights protection and strengthening the rule of law.
Strategies will be pursued that ensure that the rights of women, children and persons that live
with lII YI A IDS, as they are recognized by the constitution and international agreeme nts, are
respected, that they participate equally in and benefit from development. The publics' respect
for law and order and support of law enforce ment activities will be gradually raised by raising
overall awa reness of legal issues. Laws will be disseminated more wide ly and more
etliciently in order to increase public knowledge and a wareness of the law. The role of civic
societies a nd stakeholders in good governance a nd development activities will be enhanced. A
system will be established to ensure that attorneys have the requ ired professional capability
and ethics a nd to stre ngthen their role in the administration of j ustice. The registration of legal
practitioners will be fully implemented .
The values of gender equality will be promoted so that women partic ipant more equally in
good governance and deve lopment, and the capacities of women in the justice sector are
enhanced. Professionals in the j ustice sector will be made more aware of the nature of
HIY/AIDS and its transmission, so as to protect themselves from HIY/AIDS, ensure that
sufferers get the appropriate help in a manner that respects their human rights, and support
implementation of health policy that is focused on prevention.
7.4 DEMOCRACY ANll GOOll GOYERNANCE
7.4.1 Strengthening Democratic System
7.... 1.1 St r a tegic Directions
During the GTP period, the strategic d irect ions to ensure democratic governance in the
country are to adopt and effectively enforce laws that support democracy and good
governance, conduct free. fair and democratic elections a nd ensure the human rights of all
freedom of the press and the rights of c itizens and freedom of i nformation will be ensured.
Good governance and democratic instit utions will be strengthened and deepened.
' .... 1.2 Objectives
The ob jec tives are to strengthen democratisation and good governance and consolidate the
existence o fa federal democ ratic politica l and economic community.
' .4.1.3 Main Targets
Strengthen Councils and institutions accountable to them : A number of activities have
bee n ca rried out during the previous plan period to stre ngthen these institutions, enha nce the ir
role in the process of building a democrati c culture, and build the capac ity of sta ff involved
through short-term training and ex perience sharing. During the GTP period these activities
will be co ntinued a nd, more speci fica lly, the capac ity of these institutions wi ll be strengthened
through training, system and organ izat iona l development. In partic ular, to strengthen the
parliame ntary system of the gove rnme nt, it is planned to build the ca pac ity of the membe rs of
the House of Peoples Representat ive and House of Federation through training and with
experience sharing workshops and by improving the working procedures of the two counci ls
with application of infor matio n technology and network infrastructure for ease of informatio n
management a nd use to improve deci sion making.
Awareness creation about human right s, democracy and the constitution : During the plan
per iod the federal House of Peoples' Representative and House of Federat ion will conduct
broad based awareness creatio n worksho ps and training seminars for students at pilot schoo ls,
base d on the c ivic educat ion, using methodo logies to encourage democ ratic culture such as
the c hildren's parliament instrument, and for pastora lists, ma inly in co nflict prone areas, and
including wome n a nd youth soc iety gro ups, so as to create awarene ss about democratic
c ulture.
Ensure a federal democratic political and economic community : The following act ivities
will be undertaken in order to ensure the rea lizatio n of this o bjec tive. A number of initiatives
will be unde rtaken during the GT P period that stre ngthen the relationship between nations,
nationalities and peop les such that the fede ral democratic arrangeme nt in e ffect leads to better
integrated political a nd eco nomic community in the country. The House of Federation will
encourage extensive research on democratic federa l governance and make use of the findings
to strengthen national consensus around the obj ect ive of ensuring one eco nomic and po litica l
community. The docum entat ion section of the House of Federat ion wi ll be equipped with
research materials to fac ilitate proper decision-making by the House. The grant sharing
formula will be revised and improved to crea te balanced and equitable regiona l development.
An ea rly wa rning syste m will be put in place to prevent co nflicts. a nd indige nous conflict
resolution mechanisms used to mob ilize loca l communities.
Provide laws and directives to create an enabling system to ensure democratic
representation and accountability to public resource: The House of Peo ples'
Representative a nd regional co unterparts will issue acts and directives, that have bee n
participatory ove rsight of the counc ils is expected to pla ya crucia l role in ensuring that
government policies and programs are implemented as per the plan a nd that measures are
timely taken to rec tify any shortfa lls. The federa l and regional councils will secure media
airtime. develop user friendly websites, publish and increase the circu lation of press re leases
and booklets. in order to address the public a nd collect public percept ions of democratic
institutions and the democrat ic process. These initiatives will a lso e nhance the participation of
federa l and regional counc ils in the decision making process. Advocacy Centres will be
established to reac h out to the public at lowe r adm inistrative le vels a nd make accessible
minutes. reports of the counc ils. annual plans and other related informatio n.
Enha nce public p ar tici pa tion : Regional,Woreda and Kebele councils will initiate activities
to increase public participation in the development planning and democratizat ion process. The
participation of women in councils will be enhanced to achieve better politica l part ic ipation
and involvement in decision making. The capacity of the council members will be improved,
through training a nd exper ience sharing study tours. The part icipation ofCBO s and the public
at large in development planning. implementation and monitoring will be strengthened.
Directives and laws that will support the functioning of CBOs and professiona l associations
will be put in place.
7.... 1... Im plementa tion S trate gies
Strateg ies that will be adopted to implement the GT P, so as to ac hieve the objectives and
targets for democracy and good governance described above, are to build the capac ity of
institutions. ensure the legislative assembly (law making process) is effective. and the
cod ification and conso lidation of laws is based on research and studies. The delivery of
effective and effic ient j ustice services will be enhanced and the acco untab ility of the judiciary
e nsured. The ca pacity of prisoners will be developed and their human rights ensured. Peace
and tolerance between different religious groups will be established. Democratic governance
will be supported and strengthened by conducting legal and j ustice system research. ensuring
the supremacy of law and cond ucting awareness c reation among the citizen about human
rights. The accessibility and disse mination of printed and electronic co py of constitutions.
laws and acts will be strengthened and increased. Participation of CBOs and stakeholders in
the development process will be strengthened. The legal protection and rights of children.
women. peop le living with HIV/AID S and disabilities will be ensured. A mechanism will be
c reated to enhance the professiona l ethics of lawyers through ca pacity building. Gende r
equality wi ll be ensured and awareness c reated among staff of democratic institutions about
HIV/AIDS prevalence and incidence.
7.4.2 Good Gove rna nce
7....2.1 Str a tegic Dir ecti on s
Good governance plays a key role in realizing the governme nt' s objective of eradicating
poverty by enhancing public trust and ensuring e ffi cient a llocation of public resources for
introduc ing i nfo rmat ion tec hnology systems, enhanc ing transpare ncy, develop ing cada stral
land reg istra tio n system, imp roving the tax informatio n system, taking lega l measures aga inst
those gu ilty o f co rruption and using t hese measures as an input to increase the awa reness o f
t he public .
In this context, a num ber of act ivitie s w ill be carried out in t he plan period, in co llabo ratio n
w ith the relevant stakeho lders, incl udi ng c ivic educa tion a nd measures to develop a ze ro
to ler ance o f co rruptio n amo ng the soc iety. Add it iona l activ it ies in it iated wi ll be to stre ngthe n
the syste m to track cor ruption in soc iety and protect public reso urce s. A cit izens'
identificat ion inform ation system w ill be put in place, a s w ill systems to register own ership o f
land and estab lish urba n spatia l plans. Furt her, the pub lic w ill be made aware of the need to
pay tax as di rected by law and regu lat ion at the time requi red and o f the import an ce o f taxes
in fi nanc ing the GTP and its obj ect ive s.
' ....2.20bjectin s
The objec tives o f good gov erna nce are to enhance transparency and acco unta bility so that
th ere is zero to lerance for corrupt ion. Goo d governance initiati ve s w ill be suppo rted by
information tec hno logy and ex pansion of ci vic educatio n. Th e public service deli very sys tems
w ill be modernized made effic ient, fa ir and transpar ent in thei r de live ry.
' ....2.3 Majo r Targe ts
A GTP good go verna nce target is to deve lop a system, using modern info nn ation technology,
to reg ister the wea lth o f gove rnme nt autho rities and civil servants and track and ta ke lega l
measures where wea lth from un identifiable sources is detected. In add ition, the aw areness o f
the public wi ll be en hanced w ith the a im that there is zero pub lic to lerance o f co rruptio n and
rent seeking. Ethic s ed ucation w ill he lp to increa se pu blic co llaboration with gove rnme nt in
th e fi ght agai nst corruption. A n anti-corruption strategy w ill be devel oped and impleme nted in
all go vernme nta l o rga ns. A n enabling mechan ism w ill be put in place to fight c orruption. The
know ledge and understand ing of tax payers w ill be increased through developm ent and
implemen tat ion of ICT . A c ustomers' service del ivery charte r will be esta blished. A mod em
urban land mana gement syste m w ill be developed and the urba n spatial plan ning system
imp roved to ensure t hat la nd is used eco nomically and in a tra nspar ent and accountable
manner. Basic informat ion abo ut c itizens w ill be de velo ped a nd implemented. Governm ent' s
financia l management systems w ill be st rengt hened. The a ud it system and regulation
app licable to the privat e sec to r w ill be st rengthened.
' ....2... Im plemen ta tion Stra tegies
Goo d gove rna nce im pleme ntation strateg ies are to g ive priority to t he fight aga inst co rruptio n
and enfo rce the law o n co rrupt pract ice s vigorou sly in co llabo ratio n w ith t hose age ncies
invol ved w ith tax ad ministratio ns and land managem ent, impleme nt tran sparent o perationa l
procedures for the ta x and land management systems , bu ild the ca pacity of governme nt' s
implemen ting agencie s through the hu man resour ce devel opment and info rmation technology,
7.5 MEDIA BROADCAST AND COMM UNICATION
7.5.1 Media Broadcast
7.5. 1.1Strategic Directions
The strateg ic directions to be pursued in broadcasting of informatio n for the c itizens are to
increase med ia broadca sts in typ e, number, qu al ity and language, to increase geograph ic
coverage, and put in place a regulatory framework for med ia broadcast.
7.5. 1.2 Objective
The GT P o bj ectives for med ia broadcast are to satisfy the public demand for mass media
information throu gh effec tive capacity development and implementat ion o f the regu lato ry
frameworks.
7.5. 1.3Major Targets
Expand information provided by mass media : The target is to expand media coverage and
services prov ided so as to increase benefits to the public. Med ia broadcast applica nts will be
licensed so that a sa tisfacto ry service is provided throug hout soc iety. The ex ist ing laws and
procedu res w ill be strengthened to enhance media ex pan sion. Communicatio n that increa ses
custome rs' partic ipat ion w ill be encouraged. The capacity o f med ia profe ssional s will be
st rengthened a nd the use of ICT will be ex panded.
Media inspection and support : Operat ing systems wil l be improved and legal di recti ves
d rafted and adopted that ensure that laws applied to the press are enfor ced and the pu blic is
satisfied by the quantity and q ualit y o f information a nd media broadcast ing se rvices provided.
The ca pacity o f the med ia w ill be deve loped to enabling them to follo w med ia laws and
procedures. A transparent o perat ing system will be develop ed, with man ua ls and standards,
for med ia inspect ion a nd suppo rt. Part icipat ion of cu sto mers and the pub lic at large, and
sha red ownership (com munity broadcasting) ar range me nts w ill be encou raged.
7.5. 1." Implementing Strategies
Mass media expansion : Med ia co ve rage in the country is. ge nera lly, at lower leve l. Many
commu nitie s do not rece ive satisfactory medi a service. For th is rea son , the governme nt
mai nly focuses on improvin g accessib ility and di ver sity o f medi a serv ices. The
implemen tation strategy is to expand and increase med ia in number, kind and transmi ssion
coverage and to ensure the widest possible public be nefit from med ia broadcasts
Media inspection and support: The co untry ' s media services have the ir lim itation s in term s
o f de livering qu ali ty services and sat isfying pu b lic interest. Thu s the second strategy is to
improve suppo rt to broadca ste rs and ensure they operate w ithin the reg ulato ry framework
provided.
nationa l consensus and builds a pos itive image of the country will emphasise the positive
aims and achievements of the GT P by showing to the outside world that Ethiop ia is mak ing
significant improvements in soc io-economic develo pment and good gove rnance . The strateg ic
d irection focuses therefore on building nat io nal consensus and thereby also on stre ngthening
public part icipation in the developme nt and gove rnance processes. and on improving the
image of the co untry.
7.5.2.2 0 bj ccth 'cs
The ob jectives of government communicatio n are to mobi lize the public to parnc rpate
actively in the implementat ion of the GTP. create a politica l environment cond ucive to greate r
and better international awareness abo ut Ethiopia' s achievements and support the co untry' s
deve lopmenta l and democratization processes. Further objec tives are to significantly enhance
the country' s communication and media services. support the objectives of nat ional consensus
and build a positive image of Ethiopia.
7.5.2.3 Targets
A more conducive env ironment will be created for the partic ipation of the public in the
implementation of GTP and thereby a lso in the realization of the vision of Ethiopia. The
communicatio n ta rgets will a lso aim to create consensus amo ng the public with regard to the
signifi cance of ensuring the rena issance of Ethio pia, basic co nstitutio nal and po licy matters as
well as o n the sig nificance of the GTP. It is a imed a lso at effectively and acc urately proj ecting
the politica l, socia l and economic ac hieve ments of Ethiopia. Fina lly the capac ity of media a nd
art istic institutions will be built so as to effectively implement the communication plan.
7.5.2.4 Implementation S tra tegies
Initiat ives that will be take n to rea lize governme nt's communication objectives during the
plan period are to significa ntly improve the coverage of the med ia across the country by
expanding telev ision, radio and inte rnet services and supporting infrastructures.
Communication i nfrastructure will be improved by establishing fibre optic based netwo rks
and faci lities o n a large scale, upgrading the ca pacity of the personnel engage d in the print
media, underta king capacity enhancing activities for top manageme nt and 1 00\"er level media
personne l at the feder al and regiona l levels; and ens uring the private secto r is the main
benefic iary of the interventio ns.
The ca pacity of the communication sector will be upgraded by improving organisatio nal
arrange ments as we ll as the skills a nd ca pacity of the personnel involved, so as to ensure
positive and e ffe ctive communication. The awareness of the public at la rge will be enhanced
to facilitate the nationa l co nsens us building process. Innovative approac hes will be employed
to achieve thi s purpose and to speed up the tem po of deve lopment. An internationa l
symposium will be organised, after the GT P has bee n in implementation for two years, to put
forward a positive image of the country and of the achievements of the GT P to that point.
CHAPTER 8.
CROSS CUTTING SECTORS
8.1 G ENDER AND C HILD RE N'S AFF AIRS
8.1.1 Strategic Direction
Wome n make up half of the co untry's po pulation a nd the gove rnment has taken a range of
measure s to increase their participat ion in poli t ical .soc ia l and economic a ffairs. Th ere were
signifi cant achieve ments towards ge nder eq uality and the empow erment of women in severa l
areas d uring the PASDEP pe riod. Et hiopia has rat ified a numb er o f internat io nal and reg io na l
conve ntions an d protocol s o n women and child rights. A policy has been adopted and
implement ed to institutiona lize wo me n' s a ffairs in all federal a nd regional age ncies. Th e new
family law has been endorsed and the pena l code a mended for the benefit of women. Much
has been ach ieved in the educatio n and hea lth sector s to enhance the partic ipation a nd
empowe rment of women, as we ll as ensure that wome n benefit eq uitably. Women' s
parti cipa tion in dec ision maki ng processes has been increas ing in a ll spheres o f go vernme nt.
In the economic secto r, the ir parti c ipat ion in ag ricultural packages, cr edit and coo peratives
services has increa sed. In urba n a reas the particip at ion o f women in sma ll enterprises,
commercial and co nstruction unions, a nd micro fi nance instituti ons has al so ex panded. These
are a ll signifi ca nt resu lts and efforts will be mad e in the GT P period to sustain and improve
o n these ac hieve me nts.
It is wide ly ackn owledged that children are mo re vulnerable to man-ma de and natural risks.
The government too k measures during the PASDEP period to strengthe n and protect
children' s wel fa re and rights. A nat iona l children's plan o f act ion and an a lternative child care
and support guide line were prepared. At federa l a nd reg iona l levels child rights en fo rceme nt
committees have been set up. A national coa lition force has been established to ad dress the
issue of children at risk. A nat ional act ion plan has been designed and nat ional committees
esta blished to protect children from sexua l assa ult and labour abuse . The fa mily law and pena l
code have been am ended to increase and ensure the safety and security of child ren.
In the soc ial sector , c hildren in part icul ar benefited from the ex pa nsion of ed ucation and
healt h serv ice s.Demonstrat ion children's parliam ent s have been established a nd child ren are
increasingly exerc ising their rights. Actio n wa s tak en to coo rd inate a nd integrate the wo rk of
go vernme nta l and nongovernmental organizat ions to support and ca re for orphans and
c hildren at risk. T he strategy now is to susta in and co nso lidate these ach ievements in the GT P
per iod.
8,1.2 Objective
The ma in o bjectives for ge nder de velopment duri ng the plan period are to ensure wo men' s
act ive participa tion in the co untry' s economic and socia l development as we ll as polit ica l
8.1.3 Ta rge ts
The foll owing main targets a re to be achieved during the GT P period.
Ta ble 43. GTP Targe ts for Gen de r Developm ent a nd C hild re n' s Affa irs
GTP Tflfge t.\"lor Gel/der de~'e Jop ~" ~" ~" ~t ~_""':'_""':' ~_~ :-__ :-_~'"
I . Increase the number o f women entrep reneurs that graduate from operat ing micro e nterprises to small and
medium sca le bus inesses.
2 . Increase the number o f women who receive trai ning in management and entrepreneurship.
3 . Increase the number of women bene ficiaries of cred it and sav ing services.
4. Reduce the rate of abduc tion. early marriage. and female gen ital mutilat ion.
5 . Increase the particip ation o f women in decis ion making process .
GTP Turget.\" ur Childre n .\"affairs
6 . Ma instream child ren' saffairs in all sec tor s.
7. Support and care min vulnerable and children at risk.
K. Introd uce community centred care and support initiative s lo r c hildren at risk.
9 . Redu cethe rate {Ifsex ual assa ult and la bour ab useof ch ildren.
10. Red uce illega l ch ild migration and traffic king.
8. 1.4 Impl ement ati on St rateg ies
Th ree key implementatio n strategies are identified with regard to women a ffairs. The fi rst
concerns strengthening wome n assoc iations and organizations. Secondly. a more conducive
environment will be created fo r women to more actively pa rticipate in and benefit from
devel opment a nd governance progra ms through their assoc iations and organizations. Fina lly,
fo r the pa rticipation of and benefits to women to be effective and susta inable, eff ective
coordination of women' s assoc iatio ns a nd organizatio ns a nd a ll other actors is critica l. In th is
waya n accountable monitoring mechan ism will be esta blished such that women' s affairs are
mainstreamed and accordingly exec uted in a ll sectors. Implementation strategies for
c hildren' s affa irs focus o n prepar ing and implementing a comprehensive children' s policy.
promote community based ca re for vulnerable and children at risk. a nd taking measures to
red uce child ab use in the la bour market. sexual assault a nd c hild traffic king.
8.2 YOUTII AND SPORTS D EVELO PM ENT
8.2. 1 St ra tegicIlir ect io n
Pol icy directions for youth focus on enhancing the part icipatio n of youth in democratic
gove rnance. economic and social initiatives and ensuring yo uth benefit from the resultant
outcomes. For sports deve lopment pa rticula r foc us will be give n to promoting community
participat ion in traditiona l and modern sports and strengthening the support given to high
performing athletes so they are able to produce and susta in good results at regiona l and
inte rnationa l events.
8.2.3 Tar get s
The main targets fo r the plan period are presented in the following ta ble.
Ta ble 44. GT P Ta rge ts for Youth a nd Spo r ts Developm ent
GTP Tflfg et.\"l or YOlII" d e l 'elo p"~m~e~,, ~/ ~'7""""':" "'"
I . Increase the number of youth centres at worcda level .
2. Mainstream youth development programs in other" development programs.
3. Increase the number of youth voluntee rs.
G TP Tflrget.\ f! Jr Youth del'eloP.ment
4. Strengthen then technical, material and financial capacities of sport associations and committees at
different levels.
5. Expand sports fields and training centers.
6. Increase the number of private investors in the S P0 rL ~ development. and thereby enhance community
participation.
7. Increase the number of managers and coaches in different sports.
8. Increase the number of tournaments and of participating athletes.
8.2.4 Im plem en tation St r at egies
Implementation strategies for yo uth deve lopment include strengthening of youth associations
and orga nizations and the ir a ll rounded partic ipat ion. Awareness creation and introducing
youth to information and knowledge exchange act ivit ies. and e ncourag ing youth
e ntrepreneurship will a lso be part of the strategy. Data bases relating to yo uth issues will be
built a nd research concerni ng youth undertaken. Coa litions will be formed and coope ration
with stake holders initiated for the implementation of the yo uth package.
The key implementation strategy for sports development is to create a n environment
conducive to the empowerment and participation of community organizations in sports
act ivities. Women a nd disabled people will be encoura ged to part icipate in sports in the ir
work place s, dwe lling places and schools, accord ing to their sports prefer ence. The
government will, at a ll leve ls, support restructuring of the management of sports so as to
increase community ownership and partici pation and make sports activities more financia lly
self sufficient. Efforts will be made to increase the number and quality of sports specialists
and experts. The participat ion of rura l communities in traditi onal spo rts will be enhanced and,
lastly, support will be given to loca l production of sports wear a nd materia ls.
8.3 HIV/AIDS PREVEN TION AN I) C ONT ROL
8.3.1 St ra tegic Dire cti on s
HIY!AIDS presents a c hallenge to our development and pove rty reduction endeavours. The
government responded to the potentially complex impacts of the disease by introduc ing. in
HIY/AIDS. In additi on it he lps to integrate private and go vernmenta l efforts to susta ina bly
raise resou rces to support People Living wit h HIY/A IDS.
The main strateg ic directions to r the HIY I A IDSprevent ion and control program a re to expand
HIY/AIDS prevention activities. provide an a ll inclusive and good quality healt h ser vice for
HIY/AIDS and re lated diseases. red uce vulnerab ility to lII Y/AIDS. strengthen the systemic
collection and use of da ta relating to I-I IV/A IDS. increa se the acce ssibility of m V/AIDS
related healt h services. and provide spec ia l care and protection for HIY/AIDS patients and
fami lies.
8.3.2 Objectives
The main objectives for HIY/AIDS prevention and control during the GTP pe riod are to
reduce the HIY/AIDS incide nce and preva lence rate. sic kness and death rate and thus the
impact of HIY/A IDS on society as a whole.
8.3.3 T a rgets
The targets for HIV/AIDS prevention and control during the plan period are indicated in the
following tab le.
Ta ble 45. GTP Ta rgets f or IIi V/AID S Prevention a nd Co ntro l
Descriptio n of Tar get s 2010/11 201-4115
I. Red uceII IV/A IDSincidence(%) 0.211 0.14
2. Awarenes s rate about 111VIAIDS among 15-49 years old persons (% ) 22.6 110.2
3. Adults on a ntiretrovira l thera py (no) 246.347 41l4.96 6
4. Provide voluntary counselling and testing services (min ) 9.2
5. Childre n on antlrct rovlral therapy treatment (%) 95
8.3.... Impl ementati on St ra teg ies
Implement ation strateg ies fo r HlV/A IDS prevention and control are to build capac ity for
preve ntion and co ntrol. strengthen community partic ipation. and create awareness among the
populat ion as a whole. In additio n. lil Y/AI DS prevent ion and control act ivities will be
expanded a nd spec ial attent ion will be give n to the vulnerab le in the society. Gender equality
will be e nsured. harmfu l trad itional practices abo lished and the stigma and discrim ination
reduced. The accessibility of HIY/A IDS prevention and contro l services will be increased.
Voluntary testing and counse lling service services will be ex panded and treatment of sex ually
transmitted diseases and co ndom distribution given due emphasis. The safety and protection
of persons who come into contact with blood will be ensured and immed iate treatment
provided when they are exposed. The quality of and extended treatment and care se rvice for
people living with HIY/AIDS will be stre ngthened and ca re and support provided fo r
fIIY!AI DS orphans.
soc iety. The programs impleme nted will mainly be community and family based, but
governmenta l and non governmenta l entities will a lso play their role.
Progra ms that aim to benefit the elde rly need to ensure their dignity, freedom and social
status. Such programs will also focus on providing ca re and support for the elde rly in the
community and hence maintaining clo se family and social ties. The programs for peop le with
d isabilit ies aim to prevent disabilities, prov ide educatio n and training, rehabilitation services
and ensure equa l access and o pportunities fo r peop le with d isabil ities. Measures that
strengthen positive attit udinal and behavioural changes of communities with regard to
d isabi lity will be taken.
8.4.2 Obj ectives
The main objectives are to provide an all inclusive a nd parnctpatory socia l welfare and
sec urity system that identifies a nd responds to social welfare cha llenges, expand s care and
support programs for the mentally i l l, disabled and the elderly and contributes overa ll to
devel opment activit ies.
8.4.3 Targets
Two ma in targets for social welfare are set in GT P . The first concerns establishing a standard
social welfare scheme involving government. non-gove rnmental agencies, elde rly and peop le
with disabi lities in the preparat ion and del ivery. The second target refers to increasing the
covera ge of soc ia lsecurity services overa ll based on the envisaged scheme. Based on this
standard soc ial welfare system, the number of disabled people who benefit from physical
rehabi litation a nd support, of peop le who have access to socia l welfare, and of people who
rece ive capacity development and awareness creation training, will be increased through the
coordinated efforts of the co mmunity, peopl e with d isabi lity,the elderly, the governme nt and
non - governmenta l agencies. Implementation Strategies
All implementation plans need to focus main ly on community based we lfare systems. From
th is perspective, implementation strategies for socia l welfare during the plan period are to
c reate a knowledge and experience sharing env ironment supportive of the e lderly and he lp
them to contribute to the country 's deve lopment processes. Soc ia lwe lfare aut hor ities will
collaborate c lose ly with and coordinate soc ial we lfare programs to care and support the
elderly with stakeho lders who are engaged in these programs. NGO care and support
programs for the elderly will be encouraged. Disabled people will be encouraged to
participate fully in economic, politica l and socia l developmen t activities. Spec ial attention
will be given to children with spec ial needs and assistance will be prov ided to help them start
and continue schooling. Governme nt will take steps to ensure that people with disabilities
have equal jo b opport unities and participate in economic develo pment without discrimination
or stigma. Measures that minimize barriers to the movement of peo ple with disabilities. for
instance in schools, homes. recreation centres and hea lth fac ilities wi ll be take n. Spec ial
support for peopl e with disabiliti es' menta l and physical needs will be provided. Training and
rehab ilitation program s will be provided and communities' participation in soc ial welfa re
8.5 LABO UR AFFA IRS
8.5.1 Strategic Directions
There are three key polic ies ado pted for labour affai rs in the GT P. Th ese are
To expand job information services by sett ing up a data base sys tem to ident ify j o b
opportunities. The system will enable analysis of labour market demand and inform policy
makers, employers , eco nomically active c it izens. research inst itution s a nd ed ucation and
t ra ining centres.
To expand workplace support and cooperation to encourage the resolution o f labour
disputes by bilateral (employee and e mployer) and trilateral (employee. employer and the
government) dialogue and discussion. The government will also encourage improvements in
working environments and job safety so as to increase productivity.
l\lonitor of t he wer king environment to ensure that employee s and emp loyers ab ide by the
re le vant rules and reg ulatio ns and respect the ir d uties and responsibilities to ensure job safety.
8.5.2 Objectives
The objec t ives for labou r af fairs during the plan pe riod are to ensure expansion of j ob
informat ion services, j ob safety and sta bility of the working environme nt and enha nce labour
productivity. Achieve ment o f these objectives will co ntribute to overall socio-eco nomic
devel opment.
8.5.3 Ta rgets
The following ta rgets are to be achieved du ring the plan period
Tab le 46. GTP Targets for La bo ur Affairs
GTP Tar g et .~ El r LalHlI/rA jJj ~" ~i~~. --7~~- 7'"---------'"
I . Ensure an e ffective e nforc ement of the labour laws.
2. Launch a job inform ation serv ice.
3 . Suppo rt job seekers.
4. Provide capacity development training to employees and e mployers.
5. Launch dia logu e and discussion fo rums at workplaces.
6 . Provide support to solve labour disputes through d ialogues and discussions.
7. Strengthen mo nitoring of working environments.
8.5.4 Im ple me nta tion Strat eg ies
During the plan period implementation strateg ies for de ve lopment of labou r a ffa irs are to
Enforce the family law provision of a minimum marriageable age of 18 years.
Impleme nt the national po pulation.lnformatlon and communication strategy.
Increase the ratio of family planning users to 65% b)' the end of the plan period.
8.6 POPUL ATIO N AN D D EVEL OPM ENT
8.6.1 Stra tegic Directions
Ethiopi a ' s populat ion po licy a ims to lay the foundat ion for ha rmoni zing the rate o f po pulat ion
growth with the country 's capac ity to deve lop and use natu ral resources, and so imp rove the
o vera ll living co nd it io ns o f c it izens.One of t he feat ures o f Ethiopia' s dem ography is that a
large number of the populat io n join the nati ona l workfo rce each yea r. Th e ratio of the
popu lat ionof wo rking age to the total populat ion wa s 5 4% in 2008 and estimates are t hat eac h
year an add itio na l 1.2 min peop le j o in the nat ional workforce. So when the poo l of
economically active members of the populat ion increases in size. provided that they receive
t he support necessary to be produ ct ive, the co untry' s wo rkforce p lay s a sign ificant ro le in
increased eco nomic growt h and deve lopment. Fo r this reaso n. econo mic growth and
development benefi ts fro m the o pportu nity presented by t he nature o f Ethiop ia' s
dem ographi cs. Moreo ver. the polici es and st rateg ies adopted by educatio n. hea lth. agriculture.
industry and other secto rs wi ll cont ribut e positively to effective impleme ntation o f the
popu lat ion po licy .
8.6 .2 Objective
Th e ma in o bj ective o f the popu lati on deve lopment plan during the GTP per iod is to lay down
foundat ions fo r harmoni zing Ethiop ia ' s mai n demog raphic characte rist ics with de sired
deve lopment outc ome s o f the co untry's econom y.
8.6.3 T a rg ets
Th e follow ing target s for pop ulat ion a nd deve lopment are to be achi eved during the plan
period .
Table 47. GTP Target s for Population and Devel opment
G7'I' Tl/rg et.~ f tJr Population and Development
I . Expand the health extension pr ogram ' sprovision of family planning services .
2. Mainstream the population develop ment agenda in. and ens ure effective implementation of. t he GTP
development programs o f e\'CI)'sector.
3. Improve community participation in. and aware ness of issues relating to, pop ulation development.
4. Support and strengthe n population educat ion as it is addressed in primary and second ary education
programs.
5.
6.
7.
R. Develo p a po pulation data base to assist researc h into migration, urbanization. etc.
9. Execute the national plan of action for populat ion development so as 10 prov ide lor the effective
implementat ion of po pulalio n policy.
children to ha ve. T he capac ity of stakeholders working on popu lation issues will be enhanced
through knowledge and exper ience sharing forums.
8.7 CULT URE AND TO URI SM
8.7.1 St rategic Direction s
During the plan per iod. the strateg ic directio ns for the culture and tourism deve lopment
program are to enhance the ro le tourism and culture play in soc io-eco nomic and political
deve lopment initiatives. The touri sm industry policy direct ions a im to make Ethiopia one of
the best to urist destinatio ns in Africa. Tourism industry products and services will be
expanded in qua ntity and qua lity to enable them to compete globally. Women and youth will
be nefit from the sector's devel opment. C ultural and to urist att raction s will be used to build a n
attract ive image of the co untry. The cultural, natural and histor ica l heritages and values of the
country would be developed so that they play a significant role in socia l and economic
development as well as in the democratizatio n process of the co untry. C ultura lgoods and
se rvices will be promoted to playa greater and positive role in the co untry.
8.7.20bjecth 'c
The main ob jec tives for c ulture a nd tourism. during the plan period, are to ensure the
sustainable develop ment and conse rvation of to urism. Ethio pia's diverse and unique c ulture
and cultural heritage sites. and encourage the community's partic ipation so that . overall,
c ultural act ivities and tour ism contribute to socio-economic develo pment and democratization
process in Ethio pia.
8.7.3 Tar gets
The following targets are to be achieved during the plan period.
Table 48. GTP Targ ets for C ultur e and Tourism
G7'I' Tl/r g et.~ fi }r Culture lind Touri sm
I . Registered. preserve. deve lop and promote a ll designated cultural heritage. national attractions. and to urist
sites.
2. Ensure that earnings from the natural. c ult ure and tourism sectors contri bute to the overall visio n that
Ethiopia become s a middle income country.
3. Ensure that c ulture contributes to strengthening of integrity and democratization of Ethio pia.
4. Make more accessible tourist attractio ns and cultural heritage events and sites. for tour ism and research.
5. The promotion of cultural and tourism contrib ute to build a better image of thc country.
6. The culture and tourism secto r contribute slgnlflca ntly to fo re ignexc hange earn ings of the coumry.
8.7.4 Impl ementation st rategies
The implementation strategies that will be pursued during the plan period include
8.8 SCIEN CE AND TECHNOLO GY D EY ELOPM ENT
8.8. 1 Stra tegic Direction s
The follow ing six strategic direction s will be pu rsued d uring the plan per iod by the science
and technology devel op ment program.
Bu ildi ng in novations systems will build an institut iona l fram ewo rk with po licy
implementation g uide lines. Research will be conducted to analyze policy frameworks and
de ve lop a scie nce and technology develop ment plan co nsistent w ith the social and eco nomic
strategies of the co untry. The implementation of th is plan will be monitored and eva luated.
Adeq uate reso urces will be a llocated and funds secured to build innovation in sc ience and
tec hno logy, w ith acti ve engage men t in b ilatera l and mu ltilatera l innovat ion project s.
Tec hnology tran sfer and deve lopme nt will involve increa sed coordination of and
integration with stake holders to identify tec hnology demand, bu ild value adding information
and technology data bases, enhance the support systems, and de velop a monitoring system for
techn ology d uplication and adaptation processes. Research a nd technology capacity
development will focus on develop ing research and technology capac ity in industry, water,
energy and other development secto rs, support resea rch projec ts and stre ngthen research
infra structure.
Human resource devel opm ent will a im to produce high qua lity human resources capa ble of
expanding technologica l innovation and adaptation. and capable of managing science and
innovation systems effectively. Intensive work wi ll be done at primary and seco ndary
ed ucation level to rea lize the target of a 70/30 sc ience and mathe matics enrolme nt rate at
tertiary leve l.
Q ual ity a nd sta nd a r diza tio n strategies will build an acc reditation system to international
market standa rds for q uality export good s a nd services, to enhance the ir com petitiveness.
Ethiop ian quality and standa rdization guidel ines will be prepared and assessment and
metrology organs acc redited.
A Science, tech nology a nd innovation info r mation develop ment i nitiative will compile
and distribute nationa l and regiona l sc ience and technology information in databa ses,
statistica l abstracts and bibliography. A web platform will be provided to make access to the
information easy and effective and an organisatio n establis hed to facilitate and manage the
initiative.
A focus on copyrig ht and l in tcllect ua l /pr ope r ty rig hts will encourage innovat ion.
strengthen co pyright and inte llect ual property rights. and enco urage local innovators to
deve lop local technologica l capac ity and deve lop the ind ustry.
8.8.2 Object ives
The main object ives for science and technology developme nt d uring the plan period are to
8.8.3 Ta rge ts
The foll owing targets are to be ach ieved during the plan period
Ta ble 49. GTP Targe ts for Scie nce an d T ec hnology Develop men t
4. Usc S min patent information doc uments lor technology transfer a nd adaptation .
5. Establish universit ies specializing in se lected science and technology subjects .
6. Stre ngthen the a lready existing agr icultural. hea lth and information technology resea rch institutes with
essential materials a nd lina ncia l reso urces.
7. Establish technology and research instit utes fo r industry. electro nics and micro electronics. water.
co nstruction. energy a nd material sciences.
8. Establish labo ratories torwater. medical science. electro mechanical. chemical and geoc hemic al, material.
concrete testing and gee-tec hniques subjec t areas.
9. Estab lishworldwide accn..xfltarlon in Ilvc measurement areas in Internat io nal Organizatio n tor
Standardization I International Electro technical Commission 17025 laboratory quality ma nageme nt syste m.
10. Revise SOOOnational standards and 5000 new sta ndards fo r technology trans fer.
II . Establish accreditation for 60 science and technology organisations which meet national and internatio nal
quality standards.
Descriptio n of Tar get s 2009 201·mS
I. Increase fir stle ve l etha nol coverage ( % ) 10 75
2 . Increase the number of patent documents (mIn) 30 50
3. Red ucethe coverage of tsetse ny (%) 95
-
8.8.4 Impl em entati on Sira teg ies
A wide range of implementation strategies for science and technology development will be
pursued during the plan period. A national innovat ion system will be launched and an
organisation to manage the system will be established. Research institutes for technologica l
ada ptat ion will be established. An administrative and lega l system for copyr ight that mcets the
co untry' s needs; will be created. Fore ign technology flows into the country will be
encouraged. Sc ience and technology institutes capable of producing competent sc ientists and
engineers will be strengthened. Human resource capacity to use. copy, adapt, improve and
develop technologies will be created. Existing re search instit utes will be restructured and
strengthened so as to co ntribute to the co untry' s technologica l capac ity. Strategies that
strengthen linkages between resea rch institutes and ind ustries will be introduced. Well
structured and organized bodies that hel p to produce innovative technologies will be
esta blished. Implementation of mandatory nationa l standards will be strengthened. Researc h
activit ies related to co llection. ana lysis. protectio n and distribution of science and tec hnology
information will be supported. The o rgan izat io n will be esta blished to protect and deve lop the
coun try' s inte llect ual property and the system to use intel lectual property for economic
devel opment will be strengthened. Synergies will be fac ilitated a nd linkages put in place
betwee n organ izations working in environmental protection and public safety. Research and
capacity building coo peration program s in science and technology that contribute to nationa l
directions to be pursued during the plan period. In building a ' green ' and climate change
resistant economy there are two key issues, adaptation to climate change and mitigation of
green house gases.
Ad a pta tion to climate cha nge: The cl imate is a natural phenomenon which influences
positively or negat ively social and economic activ ities. Climate has its own peculiarities and
affects future opportunities for, and prospects of, the country. Even though Eth iopia' s
greenhouse gas emission rate is minimal. the country is affected by cl imate change. There are
agro-ecolog ical zones (dry land and semi-dry land a reas) and eco nomic sectors which are
more vulnerable to climate change. Research findings show that Ethiopia annually loses 2%
to 6% of its total production due to the effe cts of climate change. In Ethiopia climate change
cau ses sporadic distribution of ra infall in dry a nd rainy seasons. In some cases excessive
surface water runoff results has catastrophic effects. for instance very rapid filling and
emptying of ground water reservoirs has been witnessed, as has biodiversity degradation. The
evidence of these impacts shows how very critical it is that climate change adaptation
strategies are put in place during the plan per iod and thereafter.
l\l it iga tionof gree n house gases: Greenhouse gas emissions by developed nations have been
enormous since the industrial revolution, and so it is mainly the res ponsibility of developed
nations to reduce greenhouse emission rates. Ethiopia has the lowest per capita consumption
rate of fossil fuels. It has almost no contribution to the greenhouse gas emissions that are the
cau se of adverse climate change impacts. On the other hand, in Ethiopia the re are indigenous
knowledge. practices and systems which reduce biogas emissions. In the agr iculture sector
farmers use biologically based inputs like cow dung and compost as fertilizers. Ethiopia' s
contribution to crea ting a stable and more beneficial cli mate is very clear . In addition, energy
generated from wind and geothermal sources can meet Ethiopia' s energy demands. as well as
those of neighbour ing countries and further contribute to climate conservation. Without
putting pressure on farm land. ethanol production can be doubled. The forest coverage in the
northern part of Ethiopia has been recovering since the past 20 years. There are practices in
Ethiopia which can be adopted for mitigat ion of the adverse impacts of climate change.
Focusing on economic development which mitigates cl imate change effects is very important
from the point of view of the country 's economic interests, its capacity to develop renewable
energy sources and the prospects for its future energy consumption. The eco nomic
development direction pursued by the Ethiopian government contributes to climate c hange
mitigat ion and so may generate new and additional environmenta l support funds from
developed nations. According to the Copenhagen Accord and the Kyoto Protocol,
technological and financial support has been put in place for climate c hange mitigation works
carried out by developing nations. For this reason it is timely to build cl imate mitigation
capac ity so as to benefit from international financial support for environmenta l activitie s.
During the plan period foc us will be given to building capacity to mitigate the negative
impacts of climate c hange. The current impacts and trends relating to climate will be
identified and information on the possible outcomes and existing environmental management
practices will be assessed and disseminated. Steps will be taken to either avoid the impacts of
8.9.3 Ta rge ts
The fo llowing targets are to be ach ieved during the plan period
Ta ble 50. GTP Target s for Enviro nment an d C limate Change
Description of Tar get s 2014115
I. Energy generated from renewable e nergy resources ( MW) X.OOO
2. Sales o f ethanol and biodicsc l (m in liter ) 35
3 . The minimum arca covered by fore st (km2) 2.000
4 . Area of productive fo rest developed ( k m ~ l 25.000
5. Area of natural fore st developed ( k m ~) 2.876
6 . Area of fores t of trees that shed leaves (km 2) 4.390.6
7 . Area of designated park land (km 2 ) 60.360
R. Area of designated wetland (k m ~ ) 5 1.496
9 . The area of farmland to which compost will be appl ied (km2) 40 .()O()
10. La nd area utilised bv mixed farming & forestry for bio gas emission mitigation [krn") 26 1.840
II . The amount of urban waste used to prod uce methane gas (min 013) 20
12. I he climate change resistant green ceo nom) \\ III be strengthened a nd measures Will be ta ken by a ll tiers 01
gove rnment for preparation a nd implement ation of environmental action plans in all regio ns.
13. Po lic ies. laws. strategies and action plans will be put in place to add ress climate c hange mitigatio n.
14. Dams. roads and infrastructure facilities which contribute to poverty reduction but arc vulnerable to impacts
of cl imate change will be ldcntlflcd and mitigat ion measures will be put in place
15. Measures will be taken 10 mitigate climate change impacts to co nserve the biolog ical resou rces.
16. Regio ns and cities/tow ns pass a nd implement laws to build a measurable and achievable green eco nomy
17. Establish a nat ional syste m for environmental N CiOs to ass ist them in the eff ortsto build green eco nomy.
18. A dry' waste ma nagement law will be implemented at a ll federa l and regionalle vels.
19. The law on biogas e mission rate by the 8 high emission rate industries will be fully implemented .
20. To make e nvironment policy e ffective prepare a proposalfor 5 add itiona l environmental protection laws.
2 1. Repo rting 10 the public on the performance of the 5 year environment developm ent plan will be tim ely.
22. A nationa l syste m willbe built to help Ethiopia build a car bon free eco nomy by 2025 and q uality for
additional global environme nt fund support.
8.9A Impl ementa tion St ra tegies
The following implementation strateg ies will be pursued during the plan period. A plan of
action. st rateg ies.laws. standards and guide lines to impleme nt measures that are designed to
lessen the effe ct of forecasted climate change impacts wi ll be prepared . Programs to develop
the capac ities o f tho se stakeholders who are essent ial to e nsuring effecti ve imp lementation of
the action plans. laws and guide lines will be deve loped and imp lemented . Local and fore ign
tec hnologies fo r climate cha nge mitigatio n will be co llected and adapt ed. The capac ities of
the private sector and community organizations for fund raising globa lly will be enhanced .
CHAPTER 9.
OPPORT UNITIES, RISKS AND CHALLENGES
IN IMPLEMENTING THE GTP
Co nsidering the time hor izon and sco pe o f the GTP, it is inevitab le that there w ill be
o pportun it ies that ar ise and u nforeseen risks and cha llenges that emerge as the plan unfold s.
The gove rnme nt has sought to tak e t hese into con siderat ion in formu lating the plan , by
assessing rece nt performan ce and ach ievemen ts as well as cha llenges enco untered. and
e valuating the socioeconomic. political a nd the inte rnatio na l eco nomic co ntexts at the time the
plan was conce ived. The o pportunities should contribute to the success of the GT P. The risks
and challenges a re expected to pose obstacles to the ach ievement of the GTP' s objectives and
target s and hen ce enta il mitigation mea sures. Th e governme nt ha s assessed the pot ential
po sitive and negat ive exte rna l develo pment s that ma y affect the p erformance of the Eth iopian
eco nomy du ring the five yea r period, and the e nvironme nt in whic h the plan is imp lemen ted.
Th e OT P has built in measures to manage the effects of eac h of th ese factors. It is t imel y that
the OT P demand s more concerted effort s conside ring the o bj ective o f achieving the MOOs by
2014/ 15a nd the co untry's visio n by 2020-2 023.
9.1 OPPORT UNITI ES
Th e encou ragin g results and good practices ach ieved in the past five years ha ve brought ab out
strong enthus iasm and co nfidence amo ng citizens that pove rty ca n indeed be erad icated from
t he co unt ry.Th is enthu siasm is co nside red as a goo d o pportunity to strengthen the nat iona l
consensus on the deve lopment and governance age ndas o f the co untry and the reby to mobilize
the w ider public more actively to suppo rt the im ple mentation of the OT P. A lesso n has bee n
learn t that macro econom y stability and susta inable economi c growth is possible w ith the
po licy and ad min istrative mea sures the government has been taking. The co unt ry's
com parative ad va ntage s, p len tifu llabour, a huge domestic market and substantial natural
resou rce s pote ntia l, a lso pro vide a goo d o ppo rtunity for speed ing up deve lopm ent in the
coming five years. The OTP period is a period wh ere the huge investments mad e so far in
infrastructure and hu ma n reso urce deve lopment w ill result in greater returns by increasing the
productivity o f the eco nomy and by enco uragi ng more product ive investment.
Thu s the OT P period is expected to ex per ience improv ing prod uctivity and produ ct ion levels
in a ll sectors by appl ying the best pract ices that have been identified to date and ca pita lizing
o n the goo d o ppo rtunities ava ilable. The ca paci ty build ing a nd goo d gov e rnance packages that
have been impleme nted at different admi nistrative level s a lso pro vide an opport un ity in that
they have created relat ive ly better ca paci ties even at lower le vels o f administratio ns and in
communities. Thi s he lps to increase public partici pati on for greater allocat ive effici ency and
results, and for more effective, tra nspar ent a nd accounta ble service deli very in a ll secto rs. The
o pportun ities descr ibed w ill se rve as add itiona l d rivin g forces for development in the OT P
period.
9.2 R ISKS
The main foreseeable challenges in the implementati on of the GT P include low
impl ementation cap acity, low nat iona l saving rate that is unabl e to support th e inve stment
need s of the economy. an d the unpredi ctabi lity o f exte rnal finan cing . In addit ion, it is
ant icipated that g loba l mark et price fluctu at ion s co uld pose some c ha llenge s to effecti ve
implementationof the plan.
9.3 MANAG ING RI SKS
Risk mit igation measures that address the fore seeable risks in the development process
me ntio ned a bove incl ude impro vem ents in the tax ad m inistra tion system and broa den ing the
tax base so as to increase domestic resource mobilization. Government. organizations and
indi vidu a lswill be e nco urage d to increa se thei r savings to pro vide adeq uate reso urces for the
countr y' s inves tment needs . The favou rable po licy and ad min istrat ive environ me nt created
will support effec tive utilization o f th e capacit ies o f co m munitie s and the pr ivate secto r as
development partn er s in th e development and governan ce endea vour of the GT P. Exte rna l
finance reso urces wi ll be mobili zed and . where secured. will be effect ively used fo r
investment in prio rity sectors. The contri butio n of local and internati onal NGOs a nd C BOs in
th e imp lem entation of the development plan wi ll be strengthened.
Mea sure s will a lso be tak en to add ress capacity lim itation s by strengthen ing the
impl ementation o f the civ il service r efor m program at a ll leve ls. Fo re ign exc hange ea rnings
will be increa sed by expa nd ing ex port capacity. and substitu ting impo rts with co mpetitive
loca l produ cts. Meas ure s to gua ra ntee s usta inab le and rapid agricu ltura l and overall eco nomic
growt h like sca ling up of be st practi ces. and expand ing irrigation w ill be taken as risk
mitigation in it iatives. Th e publ ic ex pend iture managem ent refo rms introduce to e nsure
stringent recurrent expe ndi tures wil l be strengthened s uch that the lim ited available reso urces
are e fficie nt ly and effective ly uti lized for produ ctive purposes.
CHAPTER 10.
MONITORING AND EVALVA TlON OF THE GTP
10.1. BACKGROU ND
The main obj ect ive o f t he GT P monito ring and eva luation syste m is to follow up on
implemen tation of the secto ral and cross cutting plans included in the GT P so as to e nsure
effectiveness of government policie s and strateg ies. T he M& E system prov ides a tool to
follo w progress in achievem en t of planned target s. mainta in the co herence and integration o f
the overa ll economy, take time ly correc tive measures when needed, and manage the
development process effectively. Ethiopia' s M&E system is based on the sectoral approach
and is a too l whereb y tim e ly and re liable information on result s. from the Fede ral to the local
level s o f gove rnmen t, is co mpiled and reported.
The GT P' s M&E system is built on the existing We lfare Mon itoring System Program which
has bee n in place since 1996. It is imperative that the M& E syste m has adeq uate data inputs
and to support this need, the Ce ntral Stat ist ica lAgency (CSA) rece ntly laun ched the new
National Strategy for the Development of Stat istic s (NSDS) in consultation w it h relevant
stakeho lders. The NSDS will help to generate data through surveys and censuses to mon itor
implemen tation progress of the GT ? The adm inistrat ive data generated by sec toral line
ministr ies w ill a lso provide an input to the M&E system. Data from censuses, surveys a nd
administrat ive so urces will be used to ge nerate full-fledged eco nomic analysis and report s by
the Ministry of Fina nce and Econom ic Development.
The ma in ro les a nd responsibilities played by the majo r actors in the GT ? M&E syste m are
o utlined below.
10.2MO NITORI NG THE OVERALL I'LAN I'ERFORMAN CE BV MoFED
MoF ED chai rs the Wel fare Mo nitor ing Te chnica l and Stee ring Co mmittees that playa ro le at
the nationa l level, in managing the ove ra ll eco nomy and coo rd inating the M& E system. The
background report s prepared by the memb ers of poverty-o riented federa l exec uting bodies
se rve as a basis for the re ports prepared by MoFE D. Sec to ral annual impleme ntatio n, M&E
report s ge nerate data to measure output and input results again st GT P p erformance indicato rs.
Report s prepa red by the CSA, ba sed o n information fro m surveys , gene rate data to measure
o utcome and impact resu lts aga inst GT P perform ance indicators. Based o n the info rmation
avai lab le from surveys as well as from ad ministrative sources, MoFED prepares annual
implemen tat ion assessment reports as an input to the Welfare Mo nitor ing System Program
and for timely d istribution to the relevant government autho rit ies as we ll as to non-
governmental bod ie s.
MoF ED a lso provides up-to-date monitoring of we lfare, macro eco nomi c performance,
national acco unts, foreign resourc e mobilizat ion and ad minist rat io n,public de bt management,
public acco unts, etc. Mo FED holds reg ular annual meet ings of Welfare Mo nitor ing Techn ical
The GTP policy mat rix will present the targets set and detail possible measures to be taken to
improve performance dur ing the plan period.
10.3 THE ROL E OF F EDERAL E X ECUTI VE B ODI ES
Federa l implementing agencies pla ya critical role in ensuring that the nationa l M&E system
is robust and useful. As the M&E system becomes more robust and co nsiste nt it will be
possible to prov ide more timely and relevant information to stakeholders. The M&E system
has a national context as the targets set in the plan are focused at the natio nal level.
Federa l implement ing agencie s prepare and submit annua l progress or implementat ion
assessme nt reports to MoFED. They co nta in detailed information from the local levels of
government. woredas, kebeles a nd c ity governments/administrations. As the ma in
impleme ntat ion agencies of the natio nal developme nt plan are the regions, c ity
governm ents/admini strations. woredas and kebele s. intensive capac ity bui lding activities will
be undert aken in the next five years. in sector line ministries responsible for strong and
coherent linkages with the lower ad ministrative levels. to ensure timely and acc urate
information flow and feedback for the national M&E system.
During the plan period. implementation agencies at the federal. regio na land local levels
sho uld ensure that adequate human resources are provided and sutli cient M&E capacity
devel opment take s place to ensure the M&E syste m is operationally effective. To realize this
objec t ive. MoFED will work in close co llaboration with Bureau (s) of Finance and Economic
Development (regiona l), woreda and c ity governments/ ad ministrat ions to fac ilitate acce ss to
techn ical assistance for M&E capac ity development.
10.4 CENSUS ES AN D SURVEVS FOR T HE M & E SVSTE M
The C SA' s mandate is to gather soc io-economic and dem ograph ic data through integrated
censuses. surveys. continuous registrati on and administrative recording systems and compile.
analyze and present to users useful data in user friendly formats. The CSA also provides
techn ical support to government and other implementing bodies o n statistica l data keeping
and builds capac ity continuo usly for registrat ion. administrative data gathering. compilation.
analysis and reporting syste ms.
To fulfil its mandate the CSA has been implement ing the NSDS since 2009 . The NSDS has
bee n revised to address the data needs o f GTP and it has defined strategic directions and
designed an actio n plan to compil e and analyze data from cens uses. surveys and
admin istrati ve sources. For M&E of the progress towards ach ievement o f MDGs and the
targets set in the GT P the CSA plans to conduct the following surveys during the plan period.
Table 5 1. Su rveys 10 be Ca r r iedoul by CSA Durin g Ihe Plan Period
Ag ric u lt u re .Nat ura l Resou rce a nd
E nviro n me n ta l St ati st ics
I . Crop production forecast.
Pop ulati on Surve ys
I. Projcction of pop ulation and housing census
Agric ult ure , Natura l Resou r ce and
Environ menta l Sta tistics
-- R~ £ ~i £ ~~~ ~!_ '.l !.- ~ ~. ~ lJ "' -,---cc;- --c- ;----
9. N<l~ l:I!:<l!!~~~~~ ~~~ _9 . ~i!9 . -'~~ ,i~ _~ ~lJ! ~~ r :......
10. Pasroralist areas survey
I I . Rural economy survey.
Hou seh old Sur veys and Pri ce Statistics
_ --;IC,--;Agricultuml Prod ucers erice s un9': _
2. R c ta i l _ p ~ c s u r ve ) ~s,. -,- _
__,,3c' -"A g r i ~ u . !!. ll ! <l lJ ll P ~ t~ ~ ~ e x ., _
__4 . Wage i n ~_~ c' -,.-,--c - - - - - - - -
5. C ons u m~~ p !:!ce i n~ ~c' _
6. Global Co~p:aris o nrro£! '.l.... m, . _ -,. _
7. Hou se hold income and consumption
___ s u~~ ~cY ' .:.. _
s. Economr.i!nd soc~ 1 \\c!!.a !.e ~ ~~e) '.. _
9. C~nt inll£.s c.!!lE ! !?)mc'!!.~ nc x _
10. Labour force surveyc' _
I I . Strect c ~~ l d rc n sum?)· _
12. Welfare monitoring survc)'c. _
13. Time utili/.ation s u n ' c ~ ' c' _
Population Surveys
1. Update pop ulation census.
2. Undertake Dem og raphic & He alth Survey,
3. Undertake intcr census study.
4 . Con solidategender statistics.
5. Con solidate vital statistics,
Business Sta tist ics
I. Large and medium scale manufacturing
ind ustries s urvey.
_ _2 : 2 ~ 1I 1 !.!l . 1 11 .!l lJ r ~ ~ L1 ~'.l g !. n ~ ~ l! i ~~~~ > .~ _
~ ) i s t ~ i b ll ~ ~ ~t~ ~ ~JI: ~d_Y ~..:! £ e ~ ~~ r s ll~ ~e x _. __
4. Cons lr u£ , !i ~2. l!.!. ~) 'c' -r- _
5. Bu i ld i n g !? u s i n ~~~ £ ~~!.. lJ. ·.. . .: ~ ) ' g cm . -,-_;-__
6 . Strengthening transport and communication
statistics .
7. St r':!1gt~~ _Il! !lg . eX~..!:!.Y'.l~.!:.~,!!i ,g~ ~c· -,-_-, __
8. Producers and amount index for manufacturing
ind ustries.
9 . Survey on IT use on large and mcdium scale
manufacturing industries.
_ ! Q ~ . ~ _ L1 r ~ ' ~ ) : ~ ~ , !! _ rt:l ! ll _ i n g _ ~ ~ p. I () _ ~ a . t i _ (), ll : _
11.Quarterly survey on large and medium
_ -:c ~m,," a n u f a E ~~ Ji!l g !!,l ~u2 t !i ~ :_
12.Bu ild data base on water distillation and
__~~t ! i bu~i~ n , c' __-, ;--,;-_;-_
13.Sun cy on cottage industry and the informal
sector.
To achieve the above targets the following strategies will be implemented.
Ensu re impl em en tat ion of sta t ist ics law a nd g uide lines : The strategy focuses on
establishment of a unit to coordinate the Nationa l Statistical System. The unit' s purpose will
be to estab lish common standards. classifications and definitions fo r all producers of official
statist ics.
Impr ovin g data qu ali ty a nd sta nda r ds: T he strategy wi ll foc us on improv ing data quality in
the national statistica l system.
Enha ncing advoca cy a nd use of sta tistic: The strategy a ims to improve statist ica l launch
procedures and press relat ions. train statistica l users including the media a nd establishing
regular relations with data users.
Method ologica l imp roveme nts a nd sta t istica l modern isat ion : The strategy aims to
generate feedback from stakeholde rs' consultations.
In add ition, the follow ing system-w ide data improve me nts w ill be implem ented
Coordination of the national statistical sys te m: The strategy fo cu ses on ensuring sta tistica l
ethic s, qu al ity a nd sta ndards.The data qua lity sta nda rd agree ment endor sed by stakeho lders is
expected to be e ndo rsed by the statistics co unci l and will then be imp leme nted, s utli c iently
fu nded, we ll eq uip ped and sta ff ed.
Technology improvements : The ai m is to st rengthen and enhance techno logy use, including
utili zat ion of GPS , high speed portable com pute r, sate llite image ry and co mputer aide d
tele phone data co llection.
Mobilisation of support : Th e CSA wi ll mobili ze support for NS DS impleme ntation and will
aim to achieve the Paris decla ratio n agree me nts rela ting to nation al stat ist ics . CSA w ill alig n
and harmonize deve lopment part ners' support for the NS DS and establ ish a com mittee to
acco mp lish this task.
Business Process Re-cngln eertng : Th e CSA is imp leme nting the Business Process Re-
eng ineer ing proce ss and, in the proce ss. has ado pted many NSDS pro posa ls. The BPR
doc ume nt co nta ins an action plan and a p erformance management p lan. The plan s w ill be
eva luate d q uarte rly and an an nual repo rt prese nted to the statistics cou nci1.
Statistical System Ca pa city building : A key implementation strategy invol ves a number o f
mea sure s that w ill be taken to build the capacity o f statistica l systems du ring the plan period.
A ll CSA ' s branch o ffice s w ill be networked . The data co llect ion, co mpilation and
d isse mination system w ill be imp roved. Data ana lysis at branch offi ce level wi ll be
introduced. A statistica l data qua lity assurance doc ume nt for Et hio pia w ill be prepared. A data
qua lity eva luatio n fram ework will be prepared. Data qua lity in each sector w ill be eva luated.
Data produ cers a nd users will be trained . A cata logue for the NS DS w ill be pre pared and links
between CSA and other web sites will be put in place . Postgrad uate leve l tra ining for expe rts
at the C SA will be prov ided and a new building to acco mmodate CSA wi ll be constructed.
Grea te r empha sis will be give n to enhance the intern a l capac ity o f CSA field surveys fo r
effective implementation and data management.
10.5 Geo-Information
During the plan per iod. emphasis wi ll be give n to build ing a nationa l gee -informa tio n system
th at is qua lity assure d and w ill gen era te co nsisten t and usefu l geo-inforrnat ion. O nce the
system is operational it w ill provide time ly and gee -information supported by air photogra phy
and rem ote sensing.
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Table of Contents
Page No.
Table of Contents i
List of Tables iv
List of Figures v
List of Acronyms vi
FOREWORD vii
CHAPTERS & SECTIONS PAGE
INTRODUCTION 1
CHAPTER 1. ACHIEVEMENTS AND CHALLENGES UNDER PASDEP. 4
1.1. Macroeconomic Performance.
1.2. Performance of Economic and Social Sectors .
1.2.1. Agriculture and Rural Development...
1.2.2. Trade and Industry Development
1.2.3. Mining
1.2.4. Road Development
1.2.5. Rail Network, Dry Port and Transport
1.2.6. Telecommunications
1.2.7. Energy...
1.2.8. Water and Irrigation Development.
1.2.9. Construction and Urban Development
1.2.10. Education .
12D. Heal scenes aE AS
1.3. Cross Cutting Sectors
1.4. Good Governance and Demoeri jon .
1.5. Challenges and Good Practice in Implementing the PASDEP ............ssssssseeseeseeeese 19
1.5.1. Major Challenges Encountered
1.5.2. Good Practices Learned
CHAPTER 2. BASIS, OBJECTIVES AND STRATEGIC PILLARS OF THE GTP 21
2.1.
22:
23.
Basis of Growth and Transformation Plan
Objectives of the Plan.
Strategic Pillars...
2.3.1 Sustaining rapid and equitable economic growth. i
2.3.2 Maintaining agriculture as a major source of economic growth
2.3.3 Creating favourable conditions for industry to play a key role in the
economy ....
2.3.4 Enhancing expansion and ensuring quality of infrastructural development .....24
2.3.5 Expansion of social development and guaranteeing their quality
2.3.6 Strengthening good governance and capacity building.
2.3.7 Empowering women and youth and ensuring their benefits .
CHAPTER 3. MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRANSFORMATION PLAN 28
3.1. Macroeconomic Objectives
3.2. Macroeconomic Policies and Goals
3.2.1. Economic Growth, Savings and Investment
3.2.2. Prospects for Growth, Wellbeing and Poverty
3.2.3. Fiscal policy
3.2.4. Monetary Policy, External Sector and Financial System.
3.3. Selected Macroeconomic and Sectoral Targets.........cccssssssesecssstesesseesestesnsseeseeeeenes 34
CHAPTER 4. FINANCING THE PLAN 38
4.1. Government Revenue
4.2. Government Expenditure
4.3. Financing
4.4. Off Budget Financing of Infrastructure And Industrial Programs .
4.5. the role of the Private Sector and the public 0... esessssesessssesesssssseesssesesseseseensneee
CHAPTER 5. ECONOMIC SECTORS DEVELOPMENT PLAN 45
5.1. Agriculture and Rural Development
5.2. Industry.
5.3. Trade.
5.4. Mining
5.5 Infrastructure Development...........sccssssssessesecsessessessessesesseesesssseeseesesseesesnsseeaeeneenceneees 68
5:51
5.5.2 Railway Transport
5.5.3 Energy...
5.5.4 Telecommunica'
5.5.5 Potable Water Supply and Irrigation Development
5.5.6 Transport Service:
5.5.7 Maritime Transport
5.5.8 Air Transportation Services
5.5.9 Urban and Construction Development
CHAPTER 6. SOCIAL SECTOR DEVELOPMENT PLAN 86
6.1 Education and Training aus
6.2 Health ...seessesseecsesssecsessseesesssecssecssssssesssesessnscenssscsussscsscsssssuessesssssseeessssneesessssesesessssneese
CHAPTER 7. CAPACITY BUILDING AND GOOD GOVERNANCE 96
7.1 Capacity Building
7.2
Information and Communication Technology Development............sseesessesseeseeeee 100
73 JvSICE SeCtOt ssnncnamnmennnnnnmancinnER RT TRS
74 Democracy and Good Governance.
7.4.1 Strengthening Democratic System
7.4.2 Good Governance
7.5 Media Broadcast and Communication
7.5.1 Media Broadcast
7.5.2 Government Communication .
CHAPTER 8. CROSS CUTTING SECTORS 110
8.1 Gender and Children’s Affairs
8.2 Youth and Sports Development ..icccsisssssssvsinesnscovansavsssssoonsenssvennvessnvensensevscosnovsvaneesseves
8.3 HIV/AIDS Prevention and Control.
8.4 SOCIAL Welfare
SS AbOUR- AMAL cssscssssseewcesseiweascasseewsseuseeuiseaeatseseeeuReNC Sta CRE TS CERRO TENEETECS
8.6 Population and Development..........c:ssecsessesesseesessessesseseeseesesseeeseesesseesesneesesessesseesesaceees
8.7 Culture and Tourism
8.8 Science and Technology Developmen:
8.9 Environment and Climate Change........ssecssscssssssssseseesseneesnsssessseesneeseenneesesneesneeneenseene
CHAPTER 9. OPPORTUNITIES, RISKS AND CHALLENGES. IN
IMPLEMENTING THE GTP 122
9.1 Opportunities.
9.2 Risks... .
9:3 Managing Risks cvssenccsorssvscsonconeossonsnconnsonoivenncosnvensasisenconstnnssensotennvereanieanasnrenseonsr ert 123
CHAPTER 10. MONITORING AND EVALUATION OF THE GTP 124
10.1. Background os
10.2 Monitoring the Overall Plan Performance by MOFED............sesssecseseseeseseeeeteteseeteeeee 124
10.3 THE Role of Federal Executive Bodies.
10.4 CENSUSES and Surveys for the M&E System
10.5 Geo-Information .......ccecssesseessesseeessessesssesseeseeesessesssessesseeesesssecssessecseeesneesessnecseeeseesseeee
iii
Tab!
Tab!
Table 17.
Table 18.
Table 19.
Table 20.
Table 21.
Table 22.
Table 23.
Table 24.
Table 25.
Table 26.
Table 27.
Table 28.
Table 29.
Table 30.
Table 31.
Table 32.
Table 33.
Table 34,
le ll.
Table 12.
Table 13.
le 14.
Table 15.
Table 16.
List of Tables
Title
Growth in Gross Domestic Product and Main Sectors Share as Percent of GDP... 4
Percentage Share of Aggregate Consumption & Savings to GDP @CMP
Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP....
Import and Export trade share of GDP (%).....
Real GDP Projection Annual Growth Rate (%)
Projected Trends in the Structure of GDP by Industrial origin (% share).
Demand Side GDP as Ratio to GDP @ Current Market Prices (%) ....
Projected Trends in the Structure of GDP growth by Industrial origin (%)
Projected Trends in the Structure of GDP by Industrial origin (“share)...
Projected Trends in Structure of GDP from the Demand Side High Case
Scenario (% share in GDP)
Fiscal Projection As a Percentage of GDP at @CMP (Base case Scenario
Selected GTP Targets
Projected GTP Revenue Requirements Under Base Case Scenario (in min
ETB)
Projected government Expenditures, Base Case Scenarios (mln ETB) ............++ 39
Projected Budget Gap During GTP, Base Case Scenario (in mln ETB)...
Resource need by Implementing Sectors, Budget Deficit and Financing (in mIn
ETB)
Off Budget Financing Require
Development Programs
Off Budget Foreign Currency Requirement of Infrastructure & Industrial
Development Programs
GTP Targets for Agriculture and Rural Development .
GTP Targets for Micro and Small-Scale Enterprises
GTP Targets for Medium and Large Scale Manufacturing Industries
GTP Targets for Chemical Industries
GTP Targets for Pharmaceuticals Industry.
GTP Targets for Agro Processing Industry
GTP Targets for Public Enterprises Management and Privatization
GTP Targets for the Mining Sector
GTP Targets for Mineral and Petroleum Investment Expan:
GTP Targets for Artisanal Mining and Marketing Promotion ...
GTP Targets for the Roads Sub-Sector by Budget Year ..
GTP Targets for the Railway Transport Sub-Sector.
GTP Targets for the Energy Sub-Sector
GTP Targets for the Telecommunications Sub-Sector.
GTP Targets for Potable Water Supply and Irrigation Development
GTP Targets for the Transport Services Sub Sector......ccsessecssssesesseesestesseseeseaseenes
Table 35.
Table 36.
Table 37.
Table 38.
Table 39.
Table 40.
Table 41.
Table 42.
Table 43.
Table 44.
Table 45.
Table 46.
Table 47.
Table 48.
Table 49.
Table 50.
Table 51.
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
GTP Targets for the Maritime Transport Sub Sector .......scessecssssssscseesseessenneeseeenees
GTP Targets for Air Transportation Services Sub Sector
GTP Targets for Construction Development Sub Sector
GTP Targets for Urban Development Sub Sector ......c.ssccsessecssseesesseeresesseeseesesneenes
GTP Targets for General Education
GTP Targets for Technical and Vocational Education and Training
GTP Targets for Higher Education
GTP Targets for Health
GTP Targets for Gender Development and Children’s Affairs.
GTP Targets for Youth and Sports Development...
GTP Targets for HIV/AIDS Prevention and Control
GTP Targets for Labour Affairs ....
GTP Targets for Population and Development
GTP Targets for Culture and Tourism
GTP Targets for Science and Technology Development ..........sesseeeseesesseeeesesees
GTP Targets for Environment and Climate Change.....
Surveys to be Carried out by CSA During the Plan Period
List of Figures
Title
GDP Growth by Economic Sector (%).
Percentage share of GDP by Economic Secto:
Percentage Share of Aggregate Consumption and Savings to GDP @CMP.......... 6
Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP.
Export and Import Growth (%).
Annual Calendar
The Gregorian calendar is used throughout this document. The Ethiopian calendar year
2003 starts on 11 September of the Gregorian year 2010. In government documents the
Ethiopian Fiscal Year commences 1° Hamle (Gregorian calendar 8 July) to 30" Sene
(Gregorian calendar 7 July). The Ethiopian Fiscal Years for the GTP are equivalent to the
Gregorian calendar as follows: Gregorian years 8 July to 7 July 2010/2011 to 2014/15 are
equivalent to Ethiopian Fiscal Years 2003-2007.
AIDS
BPR
BSC
CMP
CPR
CSA
CBO
ESDP.
ETB
FAL
FDI
GEQIP
GDP
GTP
HEI
HIV
HRD
bin
Gb/s
GWH
ha
hr
16.6258
List of Acronyms
Acquired Immune Deficiency
Syndrome
Business process reengineering
Balanced score card
Current market prices
Contraceptive prevalence rate
Central Statistical Agency
Community based organisations
Education Sector Development
Program
Ethiopian Birr
Functional Adult Literacy
Foreign direct investment
General Education Quality
Improvement Package
Gross Domestic Product
The Growth and Transformation Plan
2010/11 to 2014/15
Higher Education Institutions
Human immunodeficiency virus
Human resource development
IcT
IT
M&E
MDG(s)
MoFED
NGO
o/w
PASDEP
PhD
SDPRP
TB
TVET
USD
WTO
Information and communication technology
Information Technology
Monitoring and evaluation
Millennium Development Goal(s)
Ministry of Finance and Economic
Development
Non governmental organisation
Of which
Plan for Accelerated and Sustained
Development to End Poverty
Doctor of Philosophy
The Sustainable Development and Poverty
Reduction Program 2002/03-2004/05
Tuberculosis
Technical and Vocational Education and
Training
United States Dollar
World Trade Organisation
Units of Measurement Used
Bin
Gigabyte(s) per second
Gigawatt hour
Hectare (s)
Hour
Kilogram (s)
km
m
min
MSE(s)
q/ha
Qt
Currency Rates
Ethiopian Birr (ETB) * 1.00
United States Dollar USD
Kilometre (s)
Metre
min
Micro and small scale enterprise(s)
Quintals per ha
Quintal (s)t
As of November 30, 2010
vi
Foreword
The main development agenda of the Ethiopian government is poverty eradication. All the
country’s development policies and strategies are, therefore, geared towards this end.
Effective implementation of these policies and strategies in an integrated and
comprehensive manner at various levels of government administration is key for
eradicating poverty and dependence on food aid in a shorter period of time. There is a wide
national consensus on the priority agenda of eradicating poverty and the policies and
strategies pursued to address such a development priority.
The Ministry of Finance and Economic Development is responsible for establishing a
system for the preparation and implementation of national development plans, and in
cooperation with the concerned organs, preparing the country’s economic and social
development plan as well as following up the implementation of the same when ratified.
The Ministry had accordingly coordinated the design and implementation of the
Sustainable Development and Poverty Reduction Program (SDPRP), which covered the
years 2002/03 - 2004/05) and A Plan for Accelerated and Sustained Development to End
Poverty (PASDEP), that ran from 2005/06 to 2009/10. During these plan periods
remarkable achievements of economic growth, social development and good governance
were registered. On the basis of the experiences gained thus far and the national vision, the
Growth and Transformation Plan (GTP) has been prepared with clear objectives and
targets through wide public participation at both the federal and regional levels. The
Council of Ministers and the House of People’s Representative have adopted the GTP as
the national planning document of the country for the period 2010/11 - 2014/15.
Implementation of the GTP requires huge resources and commitments. To this effect,
emphasis will be given to ensuring effective public participation in implementation and
monitoring of the plan, efficient and effective utilization of all available capacities of the
public, the government and the private sector as well as better coordination and
cooperation with the private sector and development partners. In this connection special
emphasis will be given to encourage citizens to increase their savings and to strengthen the
overall level of domestic savings for productive investment in GTP’s priority programs.
It is only when every citizen makes a concerted effort with commitment, and sense of
urgency to discharge his/her own responsibility, that the effective implementation of GTP
can be realized. This requires a fundamental change of thinking on the part of actors and
stakeholders, particularly citizens, professionals, investors and the leadership, with respect
to the implementation of the key directions envisaged in the GTP. In this regard,
preventing and controlling rent seeking attitude and behaviour, and _ nurturing
developmental initiatives are absolutely critical to realize the MDGs by 2015 and the
country’s vision by 2020-2023. Hence, we need to firmly stand in unison in this bold and
transformational journey of accomplishing the objectives of GTP so as to eradicate
dependence on food aid, reduce poverty and create a solid foundation for the renaissance of
Ethiopia.
Sufian Ahmed
Minister, Ministry of Finance and Economic Development
Vil
Introduction
Achieving broad-based, accelerated and sustained economic growth so as to eradicate
poverty has been and is a key objective of the Government of Ethiopia. The government
has designed, and is implementing, strategies, policies and plans to guide and manage the
overall development of the country accordingly. The last five year development plan was
the Plan for Accelerated and Sustained Development to End Poverty (PASDEP). PASDEP
had a medium term development perspective and aimed, at a minimum, at achieving the
Millennium Development Goal (MDG) targets. During the PASDEP implementation
period, high and sustained economic growth and significant social and human development
results were realised. During the same period the economy grew on average at 11% per
annum. By sustaining the current economic growth over the next five year period, the
government aims to achieve the MDG targets by 2015, and its longer term vision of being
a middle income country by 2020-2023.
The government has formulated the five year Growth and Transformation Plan (GTP)
(2010/11-2014/15) to carry forward the important strategic directions pursued in the
PASDEP. The GTP envisages that, besides maintaining a fast growing economy, better
results will be realised in all sectors. In preparing the GTP the performance of the previous
development plans, and the lessons learned during their implementation, were taken into
account, within the context of the country’s development vision. Development of the GTP
has benefited from the many consultative meetings held at the Federal, Regional and local
levels with government bodies, private sector organisations, higher education institutions,
professional, women’s and youth associations, religious and civil society organisations,
opposition political parties and development partners. Many issues which are believed to
be important for achieving fundamental changes in economic growth, social development
and good governance and which will contribute to realising the objectives of the GTP are
raised and discussed in the consultations. These concerns are now adequately addressed in
the GTP. Issues that were raised and which needed greater elaboration or more emphasis
were addressed and are also presented in depth at the sector and sub sector levels described
in the GTP.
The Growth and Transformation Plan’s main objectives, strategies and targets are clearly
set out in the document. During the GTP period special emphasis will be given to
agricultural and rural development, industry, infrastructure, social and human
development, good governance and democratization. The GTP takes into account two
alternative economic growth scenarios: a base case and a high case. The base case scenario
assumes that the previous five year’s average annual GDP growth rate will be maintained.
The high case scenario assumes that the GDP and the Agricultural Value Added achieved
in 2009/10 will double by the end of the GTP period, 2014/15.
Development programs that will be implemented in the GTP five year period will have a
strong focus on improving the quality of public services provided. Thus special emphasis
is given to investments in infrastructure and in the social and human development sectors.
It is clear that implementation of the GTP will require mobilisation of considerable
financial and human resources, especially for infrastructure development. For this reason,
mobilisation of domestic financial and human resources, as well as improvements in
domestic savings are considered to be critical.
One of the distinguishing characteristics of the GTP preparation process from the previous
development plans preparation was that, a high level macro economic team was
established with the responsibility of guiding the overall preparation process.
Implementing agencies from the federal up to the regional and local levels have
participated in the planning process through their functional linkages with their respective
federal institutions. Wide and extensive consultations that are led by senior government
officials were held with stakeholders and the public at large both at federal and regional
levels. In addition, large media coverage was accorded to the draft GTP, which contributed
to raise the public awareness and participation in the process.
During the planning process, strong commitments, and participation of the private sector,
development partners, civil society organizations and the public at large are demonstrated
at all levels. It has been demonstrated in the consultation forums and the media that there is
a strong national consensus and enthusiasm among citizens with regard to GTP and its role
in eradicating poverty once and for all.
The plan preparation and approval process has been conducted based on a pre determined
time schedule, which is summarised as follows.
September-October/2009: Based on the initial directions from the government, the plan
preparation Generic Guideline, incorporating general directions, main objectives, economic
growth targets and indicators, was prepared by the Ministry of Finance and Economic
Development and circulated to Federal implementing agencies.
November-December/2009: Briefings on the initial ideas and the Generic Guideline were
given to senior government officials and directors so that a common understanding was
created as to the content and preparation processes of GTP. A circular calling for the
preparation of the GTP was then distributed to all concerned federal and regional
government institutions.
February-May/2010: Based on the Generic Guideline, preliminary draft plans of key
sectors (Agriculture and Rural development, Industrial Development, Education, Health,
and Good Governance & Capacity Building etc.) were submitted to MoFED.
June 2010: Based on the macroeconomic framework and preliminary draft sector plans
submitted to MoFED, the draft consolidated GTP was prepared and submitted to the high
level Macro Economic Team. The Macro Economic Team in turn reviewed and provided
feedback on the draft consolidated GTP and its constituent key sector plans.
July 2010: The first draft of the GTP was prepared as per the comments and directions
provided by the Macro Economic Team. Discussion paper focusing on major achievements
of PASDEP, objectives, strategic pillars and main targets of the GTP was prepared and
distributed to the pertinent regional and federal bodies who participated in the consultation
forums. At the same time, a preliminary draft of English version of the GTP document was
prepared.
August - September 2010: Country wide consultation forums were conducted on the draft
plan to refine the draft further, and create awareness among citizens, actors and
stakeholders so as to encourage their active participation not only in the preparation of the
plan but also in the subsequent implementation of the GTP. The participants in the
consultations include civil servants and government officials, elected people’s
representatives at different levels, representatives from universities and professional
associations, the private sector, associations of women, youth and the disabled, civil
2
society organizations, development partners and opposition political parties. Many useful
comments and suggestions were received during the consultations. All consultations were
led by senior government officials both at the regional and federal levels while the final
federal level consultations were headed by the Prime Minister.
October 2010: Further refinements on the draft GTP document and checking for its
internal consistency were completed by incorporating the comments and feedbacks from
the regional and federal consultations.
November 2010: The GTP document was then submitted to the Council of Ministers,
which then endorsed it together with comments and directions to be included in the final
plan. After a five day debate by the House of People’s Representatives, the document was
endorsed with motion of thanks as the Official National Plan of the country for 2010/11 to
2014/15.
The GTP is presented in ten chapters. Chapter | presents the progress and achievements of
the PASDEP. Chapter 2 contains the objectives and strategies of the five-year Growth and
Transformation Plan (2010/11-2014/15). Chapter 3 provides the macroeconomic
framework for the GTP and Chapter 4 describes the costs of and financing for the GTP.
Chapter 5 describes the strategic directions, objectives and targets for the four main
economic sectors: agriculture and rural development, industry and trade, mining and
infrastructure. Chapter 6 describes the strategic directions, objectives and targets for the
two main social sectors: education and training, and health. Chapter 7 describes strategic
directions, objectives and targets for good governance and capacity building. Chapter 8
presents strategic directions, objectives and targets for nine cross cutting sectors. Chapter 9
describes the opportunities, risks and challenges in implementing the GTP. Chapter 10
presents the monitoring and evaluation framework of the GTP.
CHAPTER 1.
NTS AND CHALLENGES UNDER PASDEP
The development policies and strategies pursued during the three year Sustainable
Development and Poverty Reduction Program (SDPRP) (2002/03-2004/05), together with
the vision expressed in and achievements realised by the SDPRP, were the foundation for
the design of the PASDEP. The PASDEP was implemented during the five year period
2005/06-2009/10. It was prepared based on MDG targets and the government's vision for
Ethiopia’s development. Its main objectives were ensuring accelerated, sustained and
broad based economic development as well as preparing the ground for the full
achievement of Ethiopia’s MDG targets by 2015. To achieve these objectives the PASDEP
was built on eight strategic pillars. These were
Building all-inclusive implementation capacity,
A massive push to accelerate economic growth,
Creating the balance between economic development and population growth,
Unleashing the potentials of Ethiopia's women,
Strengthening the infrastructural backbone of the country,
Strengthening human resource development,
Managing risk and volatility, and
8. Creating employment opportunities.
POv Pew
Based on these strategic pillars, two alternative economic growth scenarios were
considered. In the base case scenario, it was considered that to achieve the MDGs an
average economic growth rate of 7% per annum was necessary. For the high case scenario,
which aimed beyond achievement of MDGs targets, a 10% annual average economic
growth target was set so as to lay the foundation for the realization of the development
vision of the country.
1.1. MACROECONOMIC PERFORMANCE
The Ethiopian economy has shifted to a higher growth trajectory since 2003/04. This has
been sustained, and during the last five years, overall real GDP has grown rapidly at an
average of 11% per annum (See Table 1. and Figure 1. below.). Agriculture, Industry and
Services have registered an average annual growth rate of 8.4%, 10% and 14.6%,
respectively.
Table 1. Growth in Gross Domestic Product and Main Sectors Share as Percent of
GDP
Real GDP 7.0 10.0 11.0 100
Agriculture 6.0 6.4 8.4 41.6
Industry 11.0 18.0 10.0 12.9
Services 70 10.3 14.6 45.5
Table | above illustrates that, with the exception of the industrial sector, the over all and
sectoral performances achieved were well above the targets set in both the base case and
high case scenarios. This has been particularly pronounced in the service sector. Although
the growth rate in the industrial sector is below the planned target, the sector achieved a
significant average growth rate.
Figure 1. GDP Growth by Economic Sector (%)
18
16
14
= —*Agiiculture and allied
512 activities
S40 Se Industry
Qa
3 Service
s ——Real GDP
4
‘z
oO “1
2005/06 2006/07 2007/08 2008/09 2009/10
ear
The contribution (percentage share) of each of the three sectors (agriculture, industry and
service) to overall GDP at the end of the plan period was 41.6%, 12.9% and 45.5%,
respectively (See Figure 2).
Figure 2. Percentage share of GDP by Economic Sector
3
Se
SSO)
S38
percnetage
iA
iA
iA
iA
iA
iA
iA
iA
iA
A
iA
ie
iC
ie
iC
ie
Ks
be
RS
2004/05 2005/06 2006/07 7 2007/08 2008/09 2009/10
Yeat
DAgriculture and allied activities Dservice —_Dindustry
The planned targets were 43.9%, 16.5% and 39.6% for agriculture, industry and services
respectively. The actual shares were not as planned, as services achieved a higher, and
industry a lower share of GDP than planned. In terms of structural change the PASDEP
assumed that a decline in the agricultural sector’s share of GDP would be taken up by the
industrial sector. However, underperformance of the industrial sector was more than
compensated by increased growth in the service sector, indicating that the structural shift
was not, as yet, in the desired direction.
From the demand side, GDP at current market prices has increased by about 29.6 percent
per annum during the PASDEP period. At the same time, gross capital formation, total
exports and total imports, registered an annual average growth rate of 28.3, 27.1% and
27.6% respectively.
Table 2. Percentage Share of Aggregate Consumption & Savings to GDP @CMP
Total Consumption
Gross Capital Formation
Exports of Goods and Services
Imports of Goods and Services
Resource Balance E 22.7
Gross Domestic Saving 4 4.6
Owing to the increased pent up consumption demand, the domestic saving rate remained
jower than the PASDEP target. The domestic saving rate was 5.9% at the beginning of the
PASDEP period and remained at 5.5% in 2009/10. Likewise, consumption remained at
much the same level throughout the PASDEP period leaving no room for growth in saving.
This suggests that greater efforts are needed to increase the rate of domestic saving in order
to meet the growing investment needs of the country.
Figure 3. Percentage Share of Aggregate Consumption and Savings to GDP @CMP
120
100 1D Total Consumption
1D Gross Capital Formation
B Exports of Goods and Services
5 Imports of Goods and Services
Percentage
@ Resource Balance
B Gross Domestic Saving
Year
A number of policy and administrative measures were taken to improve domestic tax
revenue collections during the PASDEP period. These included strengthening the capacity
of tax collection agencies, expanding the tax identification number system throughout the
country, strengthening the value added tax system, increasing tax compliance and taking
6
stringent legal measures against tax evasion. As a result, domestic revenue achieved an
annual average growth rate of 26% surpassing the PASDEP target of 20%. However,
domestic revenues as a share of GDP has marginally declined during the same period. As
Table 3 below illustrates, total revenue as a share of GDP fell from 18.9% to 17.3% over
the plan period, with domestic revenue marginally falling from 14.6% to 14.0% over the
same period.
Table 3. Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP
Total Revenue Including Grants 18.9 177; 17.1 16.0 16.3 17.3
Domestic Revenue 14.6 14.8 12.7 12.0 12.0 14.0
Tax Revenue 11.6 10.8 10.1 9.6 8.6 113
Non-tax Revenue 3 4.1 2.6 2.4 3.3 2.8
Grants 43 2.8 44 4.0 43 3.2
Total Expenditure 23.5 22.4 20.7 18.9 17.2 18.6
Recurrent Expenditure 12.6 11.6 10.0 92: 8.1 8.4
o/w Defence 2.7 23 1.7 1.4 12 1.0
Capital Expenditure 10.9 10.7 10.7 9.7 94 10.3
Poverty Oriented expenditures 13.2 13.4 13.0 12.1 10.8 12.4
Expenditure Deficit including Grants 4.4 4.7 3.6 -2.9 -0.9 -13
Deficit Financing 4.2 47 3.6 2.9 0.9 1.3
External net 2.2 1.1 Ll 1.0 0.9 1.1
Domestic net 3.3 2.1 3.6 2.6 -0.1 0.5
Figure 4. Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP
25
Total Revenu
jncluding Grants
20 Domestic Revenue
15
OTotal Expenditure
is Total Expendit
= Recurrent Expenditure
Perenetage
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
——
% —. —
External net
Domestic net
-10
Years
On the expenditure side, the government has been prudent in its fiscal management by
closely monitoring revenue performance and adjusting its spending in line with its
development priorities during the PASDEP period. In 2004/05 the share of total and
poverty oriented expenditures as a percent of GDP were 23.5% and 13.2%, respectively.
By 2009/10 the figures for each expenditure item are 18.6% and 12.4%. Further, the
proportion of budget deficit, including grants, to GDP had declined from 4.2% in 2004/05
to 1.3% by the end of 2009/10.
Although, exports have increased during the PASDEP period, the trade balance did not
improve as desired. The trade deficit widened during the period because of a significant
increase in imports, an increase necessary to sustain the high economic growth levels
achieved. (See Table 4 and Figure 5)
Table 4. Import and Export trade share of GDP (%)
Export (merchandise) 6.9 6.6 6.1 5.5 45 4.0 54
Import (merchandise) 29.5 30.3 26.3 25.5 23.8 23:3) 26.1
Trade balance 22.6 23.7 -20.2 -20.1 -20.0 -19.3 -20.9
Figure 5. Export and Import Growth (%)
40
30 Sy Ro
S ra ae
y = on
20 : RS ¥
o SS hs ~S
a . N
£ 10
@ y Y
3 Ax E
5 0 sa] Fs] =|
a 20 2009/40
-10 |
haa
lee
lee
-20
-30
Years
@ Export (Merchandise) Import (Merchandise) @ Trade Balance
In terms of monetary policy, the main objective was to achieve and maintain price and
exchange rate stability. During the last five years the government has taken measures that
curb inflationary pressures and increase the country's foreign exchange reserves. Fiscal and
monetary policy measures as well as administrative ones were used to reduce inflation to
single digit. For example, the National Bank raised the commercial banks’ reserve
requirement first from 5% to 10% and then to 15% of net deposits, and raised the
minimum deposit rate from 3% to 4%.
1.2. PERFORMANCE OF ECONOMIC AND SOCIAL SECTORS
1.2.1. Agriculture and Rural Development
Crop production: In 2004/05 the total land covered by the three main crops was 9.8 min
ha, by 2009/10 this area had increased to 11.25 mln ha. Total output increased from 119.1
mln qts in 2004/05 to 191 mln qts in 2009/10. Average productivity of these crops
increased from 12.1 qt/ha in 2004/05 to 17 qt/ha in 2009/10. To realize these increases in
production and productivity it was planned under PASDEP to supply 820,000 tons of
chemical fertilizers. The actual amount supplied was 830,000 tons.
Horticulture development: It was planned to develop 419,000 ha of fruit and vegetables
by 2010. The achievement at the end of the plan year was 152,600 ha. Besides, it was
planned to produce 27.2 mln qts and the achievement was 12.8 min qts.
Coffee development: It was planned to increase coffee production to 419,610 tons by
2009/10. In the event 341,000 tons was produced, 81.3% of the target.
Livestock production: The PASDEP target was to increase meat production to 837,000
tons; but only 605,000 tons of meat was produced, 72.3% of the planned target. The target
was to increase milk production to 3.391 mln tons; and 96.2% of the planned target was
achieved with 3.261 mln tons of milk produced in 2009/10.
In terms of animal health services, it was planned that the number of veterinary clinics
would be increased to 3,600; the achievement was 2,275, 63.2% of the target. The target
for livestock vaccine was to supply 289 mIn doses in 2009/10; supply achieved was 96 mln
doses, 33% of the target. PASDEP aimed to increase the number of pastoralist and farmer
trainees on basic veterinary service delivery to 3,000 and 4,144 trainees (138%) completed
this training by the end of 2009/10.
Agricultural extension services: during PASDEP it was planned to train 51,101 graduates
in the fields of plant, animal and natural resource sciences and cooperatives development
to support the agricultural extension services, at agricultural and vocational training
colleges. At the end of the plan period 52,023 graduates had completed training in these
areas. During the PASDEP period, it was planned to increase the number of minimum
package trainees to 10.39 mln; the achievement was 12.7 mln. Although the aim was to
increase the share of women trainees to 30% of the total, the percentage realised was
18.5%. It was planned to increase household family package trainees to 4.5 mln by the end
of the plan period and the achievement was 5.4 mln, which is higher than the planned
target by 12.5%
It was planned to increase the number of farmers training centres to 18,000; the number
actually increased by 9,265 centres, 51.5% of the target. The necessary equipments were
also supplied for these newly built training centres.
Agricultural research: Encouraging results have been achieved in agricultural research in
the three agro-ecological zones on crop, livestock, soil and water conservation, forest
development and agricultural extension practices. Some 409 new seed technologies have
been issued in crop development; 99 new breads in livestock and 91 different research
outputs were developed on soil and water conservation works.
Natural resource development and utilization: Land right certificates were issued to
12.6 mln rural household heads; 185% above the target of 6.8 mln household heads. It was
planned to develop 58,750 hectares by establishing 470,000 water harvesting schemes and
9
small irrigation systems; by the end of the plan period 122,430 hectares of land were
developed by these means. During the PASDEP period, 853, 000 ha of land serviced by
small scale irrigation systems was developed well in excess of the target of 487,000 ha.
Land rehabilitated by water and soil conservation: The area of land rehabilitated by
water and soil conservation works during PASDEP was increased from 0.82 mln ha in
2004/05 to 3.77 mln ha in 2009/10. With regard to forest conservation and management,
the country’s forest coverage was increased to 8.8 mln ha from 4.1 mln in 2004/05. And at
the end of the plan period the country’s forest coverage reached 6.1 min ha.
Food security and safety net programs: Food security interventions aimed to resettle
161,108 voluntary households of which 91,317 (56.68%) households were resettled. As of
2009/10 a cumulative of 286,920 households were food secure in resettlement areas.
Productive safety net programs benefited 730,494 beneficiaries of the targeted 1.5mln. In
290 woredas the number of farmers and pastoralists who were food insecure and needed
assistance was 7.1 mln in 2009/10.
Forest conservation and management: The country’s forest coverage was increased to
8.8 mln ha from 4.1 min. And at the end of the plan period the country’s forest coverage
was 6.058 mln ha.
Agricultural market: 830,000 tons of fertilizer was supplied during the plan against the
target of 820,000 tons. The Ethiopian Seed Enterprise and other improved seed suppliers
supplied 527,779 qt (doesn’t include the supply by the regions) of improved seeds, against
the target of 1.8 mln qt.
Agricultural cooperatives: In 2005/06 there were 20,437 cooperatives with a capital of
ETB 822 min and 3,642,602 members. By the end of 2009/10 the number of cooperatives
was 33,636, their capital had increased to 1 bln birr and their membership had grown to
5,899,761. Moreover, 212 cooperative unions with 3,826 member cooperatives and a total
capital of ETB 185,472,337 were established during the plan period.
Agricultural exports: The revenue generated from flower exports increased from USD
12.6 mln in 2004/05 to USD 170 min in 2009/10. In the same period, the revenue
generated from fruit and vegetable exports increased from USD 14.07 mln to USD 31.7.
357.000 live animals were exported, a substantial increase on the target of 213,000.
319,647 tons of coffee was exported against the target of 323,000 tons. Overall, 1,225,000
tons of agricultural goods generating USD 1.55 bln were exported in the plan period
against targets of 1,183,000 tons and USD 1.517 bln, respectively.
1.2.2. Trade and Industry Development
The Trade Sector
With regard to trade regulation, a trade registration and licensing system was introduced
throughout the country, from federal to kebele levels. Generally, measures were taken to
ensure competitive trade practices and protect consumers from unfair trade practices.
During the PASDEP period a lot has been done in the process of trade partnerships and
negotiations to make the country benefit more and hence create new market opportunities
and increase foreign direct investment flow. The preparation for the WTO accession
process was finalized. Negotiations were conducted to strengthen regional trade
partnerships (Inter-Governmental Authority on Development, Sana’a Forum, The Common
Market for Eastern and Southern Africa (COMESA) and the COMESA-East African
10
Community-Southern African Development Community Tripartite). In addition Economic
Partnership Agreement (EPA) was reached with the European Union.
The Industry Sector
During the PASDEP period support was given to micro, small, medium and large scale
industries and, particularly, to industries that used agricultural inputs and were capable of
generating foreign exchange.
Micro and small scale enterprise development: As a part of PASDEP, the government
took a number of initiatives to promote and expand micro and small enterprise
development in different regions and city administrations. The PASDEP target was to
create 1.5 million new job opportunities in the sub-sector which was more or less fully
achieved during the plan period. Substantial support was provided including increased
supply of credit, training, provision of production and market facilities, technology support
and provision of small enterprise information services.
Textile and garment industries: During the PASDEP period textile and garment
industries were expected to generate export earnings of USD 500 min. At the end of the
plan period, the sub sector had, however, only generated export revenues amounting to
USD 21.8 mln, far lower than the target. The low level of development of the sub-sector at
the start of the PASDEP period is one of the main reasons for this under performance.
There is a clear need to increase efforts and potential to improve performance of the textile
and garment industries.
It was planned during PASDEP to attract investment in new industrial factories worth USD
1.6 bln. As a result a number of investments were made, facilities developed and
production contributing to exports commenced. These included: 2 weaving factories with a
production capacity of 10,500 tons per annum; 3 factories with a production capacity of
16.5 mln metres of garments per annum; and, 10 sewing factories with an annual
production capacity of 9.3 mln items of clothing. Those investments that, at the end of the
plan period, had made investments, initiated projects and, in some cases, commenced
production included: 4 factories with a production capacity of 8,225 ton trade per annum: 3
factories with the production capacity of 255 mln metre garments per annum; 3 factories
producing 33 mln metres of processed garments; and | factory with a production capacity
of 10 mln items of clothing. Those investments that had finalised the preparation and
started the investment process included: 5 weaving factories with a total capacity of 84,875
tons per annum: 4 factories with annual production of 61 mln metre gray garments: 4
factories producing processed garments of 113 mln metres; and 2 factories with a
production capacity of over 21.6 mln items of clothing. Other investors showed interest
and pre investment processes are underway.
Leather and leather products: Leather and leather products (shoes and other leather
products) were expected to generate USD 221 mln in export earnings. In the event USD
75.73 mln was earned by the end of 2009/10. It was planned to upgrade 74 unfinished
leather processing factories to production of finished leather products but, in the event only
11 factories were upgraded, produced shoes and exported during the planning period;
14.9% of the target. As part of government’s efforts to develop capacity, the Leather
Industry Technology Institute offered training in a 10+3 diploma and 1 year certificate
diploma program levels and also some tailor made training courses on leather processing,
shoe and leather products making technologies based on customers’ requests.
1
Sugar: During the PASDEP period, sugar industry development works included a
feasibility study, irrigation and road works, sugar cane plantation development, housing
development, construction and expansion of factories, and production of sugar and ethanol.
It was planned to finalize the establishment of two new sugar factories in Wonji and
Tenedaho and sugar factory expansion works in Metehara and Fincha. However, in Wonjji,
Tendaho and Fincha the percentage completion during the plan was 30%, 25% and 40%,
respectively. It was planned to establish a new sugar factory capable of crushing 8,000 tons
of sugar cane per day and, in this case, the target has been fully achieved. Investment
licenses have been granted to plant sugar cane on 20,000 ha of land and 7,200 ha of land
was planted. The existing three sugar factories were expected to produce 1,510,683 tons of
sugar and 39,697 m? of ethanol. Actual production over the PASDEP period was 1,468,915
tons of sugar and 30,124 m> ethanol.
Cement: The cement industry was expected to produce 4.7 mln tons of cement per year.
However, the industry achieved an output of only 1.17 mln tons of cement per annum. This
result suggests the need to increase the production and supply capacity of cement in order
to meet the needs of the fast growing construction industry.During the early years of
PASDEP implementation there was a dramatic increase in the gap between the demand for
and supply of cement. This put considerable pressure on the construction sector. To ease
the situation, short term and long term intervention plans were designed and implemented.
The short term intervention plan involved importation of cement and construction of small
scale cement industries. The long term plan involves development of new high capacity
cement producing factories. Implementation of this plan is being closely monitored.
Metal & metal engineering: In the metal and metal engineering industries preliminary
measures were taken to unleash their full potential contribution to the country’s
development efforts. To support exporting industries, spare parts were produced locally for
four textile and two leather industries. In addition, a system was put in place that allows the
production of spare parts locally for sugar and cement as well as other manufacturing
industries.
Training has been provided on non-destructive testing, funded by the International Atomic
Agency which also supported the purchase of equipment.
Chemical industries: During the PASDEP period, support was provided to chemical
industries producing inputs for leather and textile industries measures, to address the
challenges they were facing.
Pharmaceutical industries: A strategic plan was developed for pharmaceutical industries
to support producers of drugs and pharmaceutical equipment to allow them to import their
raw material and other inputs duty free. Steps were taken to ensure that government
procurement systems give precedence to local pharmaceutical companies so as to
encourage local industry. In some cases technical assistance and consultancy support was
also provided to pharmaceutical companies to fulfil international drug producing standards
and quality.
Agro-processing industries: During the PASDEP period, an investment proposal was
prepared for the government for agro-processing industries such as the sugar industry and
for development of rubber tree. As a result, 3 companies created partnerships with foreign
counterparts. 16 potential export projects have been designed and an assistance framework
developed to help some of the projects start investment; some are now in the preparation
process. Lastly, a master plan study for cereal, oil seed and coffee development has been
prepared.
12
1.2.3. Mining
The mining sector realised some significant achievements during the PASDEP period.
These include extension of the coverage of country wide geological information, hydro-
geological mapping, geophysics (gravity) studies and engineering geology mapping from
38%, 27%, 65% and 6.9% in 2004/05 to 51%, 42%, 80% and 10% in 2009/10,
respectively. It was planned to identify and delineate 30 areas of mineral deposits, while 34
such areas were identified and delineated by the end of the planning period. Annual
investment in the mining sector increased from ETB 62 mln in 2004/05 to ETB 12.7 bln in
2009/10. Revenue generated by the sector increased from ETB 20 mln in 2004/05 to ETB
50.1 min in 2009/10. Mining royalty revenues reached ETB 130 mln in 2009/10. Gold and
tantalum exports increased from 3,439 kg and 92.5 tons in 2004/05 to 3907 kg and 202
tons respectively in 2009/10.
During the plan period it was expected that 5,000 kg of gold, purchased by the National
Bank of Ethiopia from artisan miners, could be sold to foreign markets by the NBE. By the
end of 2009/10, 5250 kgs of gold had been purchased by the NBE and USD 129 min
received by NBE from sales. An additional USD 2 mln was generated by sales of 4,500 kg
of gemstones to foreign markets.
1.2.4. Road Development
With regard to federal roads, the plan for the 2004/05-2009/10 period was to reinforce 852
km of roads, upgrade 4,039 km, construct 2,769 km and execute temporary or heavy
maintenance of 3,660 km of existing roads. Thus the plan was to construct or maintain a
total of 11320 kms of federal roads, and overall 96% of these PASDEP targets were
realised. In addition, 40 new federal roads were opened for traffic and more than 11,000
km of road length added to the existing network. As a result, the total road length increased
from 36,400 km in 2004/05 to 48.800 km in 2009/10. These figures exclude Woreda roads.
The proportion of roads assessed objectively as being in good condition increased from
64% in 2004/05 to 81% in 2009/10. The time taken, on average country-wide, to reach all
weather roads has decreased from 5.7 hours in 2004/05 to 3.7 hours in 2009/10. In general,
the performance of the road sector during the PASDEP period was remarkable.
1.2.5. Rail Network, Dry Port and Transport
Rail Network: For the development of the national rail network, a feasibility study was
conducted using latest satellite mapping technology for three rail corridors with a total
length of 2,359 kms. In addition socio-economic and environmental studies of the corridors
are underway.
Dry Port: The construction of the Mojo and Semera dry ports was completed. A bilateral
agreement was reached with the government of Djibouti for a joint freight service to
further facilitate export and import of commodities. A cargo terminal has been built
on164,238 m° land made available by the government of Djibouti. The terminal has
commenced services and will ease the transit of export and import trade.
Road transport: During 2004/5-2009/10 a road safety council was established; on main
transport corridor areas with a record of high accident levels, traffic control was
strengthened; measures were taken to ensure that accident victims receive immediate
medical attention and a mass media public awareness campaign was conducted during the
plan period. As a result of these measures, deaths due to road traffic accidents decreased
from 104 in 2004/05 to 52 per 10,000 accidents at the end of the plan period. Private
13
companies were contracted to ensure technical inspection of vehicles. Moreover to address
the transportation challenges facing the capital, Addis Ababa, the possibility of introducing
mass transport system has been explored.
Air Transport: A cargo terminal for storage of perishable agricultural products was
constructed at Bole International Airport and a master plan for the airport was prepared.
During PASDEP it was planned to construct new or expanded airports at seven locations.
At Jijiga, Humera and Assosa the air ports’ runway construction is completed. At Jima,
Jinka, Kombolcha and Semera runway construction works are at different levels of
construction and pre-construction phases. Mekele and Bahir Dar airports are operating to
International Standards. The PASDEP strategy to increase the number of passengers and
the amount of cargo has resulted in an increase of 1.55 mln in 2004/05 to 3.128 mln in
2009/10 of the former and 1.42 bln ton/kilometres in 2004/05 to 2.84 bin in 2009/10 of the
latter.
1.2.6. Telecommunications
During the PASDEP period the mobile telecommunications network capacity was
increased from 0.5 min users in 2005/06 to 25 min in 2009/10. The number of
telecommunication customers increased from 0.56 mln in 2004/05 to 6.5 mln in 2009/10.
In the Universal Access Program, a CDMA wireless network which covers 90% of the
country has successfully been installed and the system enables voice and data service
availability to every kebele. The number of fixed line and mobile phone users was 0.62
mln and 0.02 mln, respectively in 2004/05 and these increased to | min and 0.187 mln,
respectively in 2009/10. The percentage of the rural population with access (within 5
kilometres radius) to a telephone service increased from 13% in 2004/05 to 62.14% in
2009/10.
To connect the country’s main communication infrastructure, about 10,000 km of fibre
optic cable (with high level information transmission capacity) was installed and has
commenced rendering services. A National Network Operation Centre that enables the
central administration of the network was established and the capacity to control service
quality standard and management of service failure information was put in place.
1.2.7. Energy
The construction of new hydropower plants, including Tekeze, Gilgel Gibe II and Tana
Belese plants, enhanced Ethiopia’s hydropower generating capacity. In 2004/05 the total
hydropower generation capacity country-wide was 714 MW. The PASDEP target was to
increase power generation capacity to 3.270 MW by the end of 2009/10. The power
generation capacity actually achieved was 2,000 MW at the end of 2009/10 amounting to
62% of the target. The total power generated in 2004/05 was 3,112 GWH. It was planned
to generate 10,907 GWH by the end of 2009/10, however, only 7,689 GWH (71%) was
generated. During the PASDEP period, to conserve electric energy, 4.6 mln energy saving
bulbs were distributed to customers. It was planned to increase power transmission lines
constructed from 8,380 km in 2004/05 to 14,792 km in 2009/10.The total power
transmission line constructed was 12,147 km in 2009/10, which is 82% accomplishment of
the PASDEP targets. It was also planned to increase power substation lines constructed
from 25,000 km in 2004/05 to 136,320 km in 2009/10. By the end of 2009/10, the total
power substation lines constructed were 126,038 km, 93% of the target.
14
During the plan period the rural electrification program aimed to increase the number of
towns and rural villages which have access to electric power from 648 to 6,000.
Accordingly 5,163 towns and rural villages had gained access to electricity by 2009/10
amounting to a 78% realisation of the PASDEP target. The total number of registered
customers of electricity increased from 952,000 in 2004/05 to 2 min in 2009/10, 77% of
the planned target. It was also planned during the PASDEP period to distribute 3 min
improved energy saving biomass ovens and these have been distributed as planned. As a
result, it is estimated that about 26,176 ha of forest have been conserved from deforestation
and carbon dioxide emissions have been mitigated by about 36,575 tons. About 10,081
rural families have benefited from distribution of home solar systems and 238 Rural Health
Stations and First Cycle Schools have been provided with solar electric power. During the
plan, the petroleum reserve storage capacity increased from 279,800 m” to 369,800m*,
1.2.8. Water and Irrigation Development
Water supply: During PASDEP access to potable water increased from 35% to 65.8% in
rural areas and from 80% to 91.5% in urban areas. Overall nationally, access to potable
water has increased from 36% to 68.5%. The increase in rural access to potable water over
the five year period is attributable to the provision of 793 very deep wells, 3,353 medium
deep wells, 8,762 hand dug wells, 8,195 water fountain enhancement works, 478 water
harvesting ponds, 3,294 rain water collection and, 7 run-off water harvesting systems. The
number of malfunctioning water stations was reduced from 30% of the total to 20% in the
plan period.
Irrigation: Irrigation development measures were taken during PASDEP to put in place
small, medium and large scale irrigation schemes. At the start of 2004/05 it was planned to
carry out irrigation scheme pre feasibility studies covering 177,998 ha, detailed studies for
464,051 ha, and initiation of irrigation works over 430,061 ha of land. The achievement by
the end of the PASDEP period was 178,000 ha, 462,114 ha, and, 65,243 ha of land for
small, medium and large scale irrigation schemes, respectively.
1.2.9. Construction and Urban Development
Urban Development: During 2004/05-2009/10, it was planned to construct 396,000 new
houses, establish 10,000 small urban-based enterprises, and create job opportunities for
200,000 urban city dwellers. By the end of the PASDEP period 213,000 houses had been
built in various regions and city administrations. In addition as a result of the housing
development program, 4,306 small construction enterprises were established, while
176,000 permanent and temporary jobs were created. Of the houses constructed 72,000
were handed over to the beneficiaries and ETB 931 mln was received in pre payment from
beneficiaries for the houses.
A program to build capacity for decentralized service delivery was initiated within 18
cities with a total outlay of ETB 142.1 mln. The project completed improvements to 14
city markets as well as drainage and road rehabilitation projects and purchases of vehicles
and equipment. Through the Urban Local Government Development Project infrastructure
development works with a total outlay of USD 150 mln (funded by the World Bank) were
implemented in 19 major cities, including Addis Ababa. As part of this initiative and
additional USD 53 mln was provided by regional states and towns and this was allocated to
construction of cobble stone interior roads, sewer line construction, small enterprises
production and market place facilities, improvement of market places, development of
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parks and water supply and sanitation works. A total of Birr 997 million was invested on
these infrastructure creating 51,905 job opportunities through this initiative.
Construction industry development: In order to develop the capacity of domestic private
contractors providing construction services 752 new contractors were given licenses and
provided with training. Financial support and training were provided to these construction
companies to enhance their capacity. Capacity building services were provided to 147
experts organised as 43 consulting firms and, as a result, the number of consultants
working in the construction industry increased from 177 in 2004/05 to 254 in 2009/10.
Permits to import machineries with long term payment modalities were awarded to
increase the supply of construction machineries and address transportation problems.
During the planning period 1,075 freight transportation vehicles, 1,000 dump trucks, 350
loaders, 100 rollers and 25 low-bed trucks were imported and distributed to domestic
private companies on credit modalities. In addition 65 crushers and 125 loaders were
distributed to companies of gravel suppliers.
To address the shortage of construction materials and ensure sustainability for the fast
growing construction industry, the government imported cement, steel and other
construction material, while encouraging domestic production of these items in the
medium term. As a result very large quantities of cement and steel were purchased and
distributed locally during the plan period. Many micro and small scale enterprises received
training, financial and administrative support to increase their role in the supply of
particularly local construction materials.
1.2.10. Education
Primary School Education (Grade 1-8): The number of primary schools increased from
16,513 to 25,217 in the PASDEP period. Consequently, the number of classrooms
increased from 161,795 to 247,698. The gross enrolment rate for grades 1-8 increased from
79.8% to 94.2% and the primary net enrolment rate increased from 68.5% to 87.9%. The
disparity in enrolment rates between male and female students gross enrolment ratio
narrowed from 0.75:1 to 0.93:1.
Secondary School Education (Grade 9-12): There were 706 secondary schools in
2004/05 and this number increased to 1,202 in 2009/10. In 2004/05 the gross enrolment
ratio for secondary schools (9-10) was 27.3%: it increased to 39.7% in 2010. The Net
Enrolment Rate for secondary schools (9-10) increased from 11.8% to 12.6% during the
same period.
Education Quality: The primary school (Grade 1-8) student-teacher ratio decreased to
57:1 by 2009/10 and the secondary school student-teacher ratio reached 43:1. The student-
class ratio, in primary schools (Grade 1-8), fell from 69:1 in 2004/05 to 62:1 in
2009/10,while in secondary education (Grade 9-12) it fell from 78:1 to 68:1 in the same
period.
Technical and Vocational Education and Training: The number of trainees undertaking
TVET increased from 106,336 to 717,603 during the plan period. More than 50% of TVET
trainees during PASDEP were female. The number of government TVET facilities reached
253 in 2009/10.
Higher Education: The number of undergraduate students in public universities was
78,232 in 2004/05. This increased to 185,788 in 2009/10. The proportion of undergraduate
female to male students in the public universities increased from 24% to 29%, and the
number of students in graduate school increased from 3,604 to 9,761. The proportion of
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female to male students at the graduate school increased from 9% to 11.3%. During the
PASDEP period the number of public universities increased by 13, and the total is now 22.
With regard to building the capacity of university teachers, the number of university
teachers increased from 4,847 to 11,238 in the plan period. Of these 5,706 (50.8%) hold a
first degree, 4,528 (40.3%) hold a second degree and 1,004 (8.9%) hold a PhD.
1.2.11. Health
The main objectives of the health sector component of the PASDEP plan were to reduce
child mortality, improve mothers’ health and combat the spread and prevalence of
HIV/AIDS, TB and malaria. To achieve these strategic objectives and to ensure full health
service coverage in all rural kebeles, a health extension strategy was designed and
implemented. During the PASDEP period one of its targets was to train 30,000 health
extension workers. In the event, 33,819 were trained and deployed in rural kebeles all over
the country. The number of health posts and health centres increased from 4,211 and 644
in 2004/05 to 14,416 and 1,787 in 2009/10, respectively. The number of public hospitals
increased from 79 to 111 in the plan period.
During the PASDEP period the number of women of child bearing age and using
contraceptives increased from 15% to 32%, prenatal service coverage increased from 46%
to 63%, postnatal service coverage increased from 15% to 30%, and trained birth assisted
delivery increased from 13% to 25% - although the target was to reach 32%. In general the
number of deaths of mothers which were related to delivery decreased from 871/100,000 in
2005 to 590/100,000 in 2010. The under-five mortality rate decreased from 123/1000 to
101/1000.
By 2009/10 about 10 mln households living in malaria infested areas had received 2
mosquito bed nets each and by this means the coverage of mosquito net usage has
increased from 1% to 100% in the plan period. Also during the PASDEP period, the cure
rate for TB increased from 65% to 67% and the incidence of HIV decreased from 0.68 to
0.28. The PASDEP target was to halt the HIV prevalence rate at 3.5% of the population
and a better result was achieved with the prevalence rate dropping to 2.4% in 2009/10. In
general, the health service coverage increased from 30% to 89% during PASDEP.
1.3. CROSS CUTTING SECTORS
Women and Children: The government has placed strong emphasis on the participation
of women in the political, economic and social affairs during the PASDEP period. In this
respect, following the enactment of the national policy on Ethiopian women,
organizational structures responsible for women’s affairs were strengthened at federal,
regional, and local levels. The family law and criminal were amended to fully ensure the
rights of women.
Efforts have also been undertaken to ensure the benefits of women in economic growth and
social development. For instance the participations and benefits of women in agricultural
packages were significantly increased. To ensure that equal benefits from land rights
accrue to husbands and wives, land utilization certificates bearing both husband’s and
wife’s name are now being issued by regional governments. In food security programs
vulnerable children and female headed households were given priorities.
Similarly, in urban areas women were supported to organize themselves under micro and
small enterprises so as to enhance their economic empowerment. The integrated housing
development project which was launched in 2003/04 gave precedence to female applicants
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for 20-30% of newly built houses and for the remaining 70% of houses, women competed
equally with males.
Youth and Sports: During the PASDEP period, a total of, 3,435,049 youths participated
in various training sessions. More than 708,116 youths received training in management
skills and 444,595 youth association organizers received training for the preparation and
design of strategic plans, finance management and administration and related subjects.
To organize and support sport associations 200 leaders were trained, 11,193 sport
associations were established from national to kebele level of which 26 were established
and registered at national level. To expand and strengthen sport and fulfil communities’
training and public sport ground needs, 7,567 different sports grounds were created in
suitable locations.
Culture and Tourism: During the PASDEP period, the average annual number of tourists
visiting Ethiopia was 324,666 and they generated annual average revenues of ETB 1.61
bln. This achievement represents an increase in the annual average number of tourists and
revenue generated of 21% and 16.3%, respectively. Specific initiatives undertaken during
the five year period included strengthening of wild life conservation areas, expanding
infrastructure and tourist facilities, improving national parks management and control, and
giving particular attention to community tourism. These initiatives resulted in the
establishment of facilities for national parks at Alateshi, Borena Sainte, Maze, Chebera
Churchura, Kafeta Sheraro and Gerale. Border demarcation of wildlife control areas was
completed for Simien Mountains National Park, Bale Mountains National Park, Senkele
rhino shelter, Shigesha and Tulu lodge. At the Simien Mountains National Park 147
households were voluntarily resettled to a pre-arranged settlement site. Two investors have
built lodges at Awash and Simien mountains national parks that contribute to expansion of
the available facilities and create an encouraging environment for more tourism. At
Senkele a rhino shelter recreation centre has been built and, in schools which are close to
wildlife conservation areas, nine natural resources conservation clubs have been
strengthened and given awareness creation training related for wildlife development and
protection.
Science and Technology: The national science and technology policy document was
reviewed, revised and presented to government, taking into account the current situation
and technological developments. A database was established that identifies science and
technology related capacity building requirements. To build national research capacity and
support active researchers, training was given to young researchers and research
institutions. Weekly radio programs and printed information sheets entitled “From science
and technology archive-kesaynese mahider’ have been distributed to enhance awareness of
and develop interest in science and technology issues.
Environment: A woreda environment management planning manual was prepared. The
manual aims to improve rural environments, contribute to sustainable development,
improve living standards and ensure gender equality. About 1,450 environmental experts
received training on environmental management planning based on the manual. During
PASDEP the target was that more than 125 woredas prepare an environmental
management plan; by the end of 2009/10, 116 woredas had prepared and implemented
environment management plans. A dry waste management strategy was prepared and a
related proclamation was issued. Awareness creation training on the dry waste
management proclamation was given to 65 experts’, while 12 environment impact
assessment manuals were prepared and made available.
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1.4. GOOD GOVERNANCE AND DEMOCRATIZATION
The good governance and democratisation strategies adopted during PASDEP aimed to
build the capacity of the civil service to strengthen key public services that support and
enable democratic institutions, improve service delivery in the same areas, and continue to
strengthen the ongoing democratisation process. The democratic institutions addressed
included those created before 2004/05 such as the Ombudsman, Human Rights
Commission and Anti Corruption Commission. These organisations were established to
monitor the system for administration of justice, provide social accountability and to
ensure a sustainable, transparent and accountable public administration.
The main focus of the five year plan was to give woreda administrations increased
authority and responsibility and grant city administrations’ and mayors’ offices an
appropriate right for self administration. Within an overall objective of ensuring delivery
of public services of high quality to the people, the focus has been to enhance the PASDEP
implementation capacity at the local administrative level, address the shortage of skilled
manpower, and improve the rural communication infrastructure. The governments’
strategies to fight corrupt practices, among citizens and public servants show encouraging
signs of improvement in terms of identifying corrupt persons, practices and organisations
and bringing them before to the courts.
Awareness creation sessions were provided for those people engaged in the PASDEP
preparation and monitoring with the aim of building public support and confidence through
citizens’ participation in the PASDEP preparation and implementation initiatives. A
business process reengineering exercise was carried out by every government agency, as
well as by woreda and kebele administrations, to improve public service delivery and
ensure transparency of operations and good governance.
Extensive capacity building programs have been implemented to strengthen the efficiency
and accountability of the justice system with significant achievements during the planning
period. Awareness creation workshops were conducted to address problems within the
justice system. A conflict prevention and resolution strategy was designed and
implemented. A number of measures were also undertaken to strengthen relations between
regional governments so as to build a strong and stable federal democratic system. Cases
related to human rights and administrative biases were given precedence in the decision
making process so that appropriate solutions could be quickly put in place.
1.5. CHALLENGES AND GOOD PRACTICE IN IMPLEMENTING THE PASDEP
1.5.1. Major Challenges Encountered
Implementation capacity: There were capacity constraints among leaders and public
servants, at different administrative levels, involved in key aspects of PASDEP
implementation. To address this challenge during PASDEP, the government launched a
number of process reengineering and training programs to improve skills and ensure
appropriate implementation capacity.
Finance mobilisation: Low mobilization of domestic financial resources was another
implementation challenge encountered during PASDEP. Of course domestic revenue and
particularly tax revenue have been increasing over the years following the reform and
administrative measures taken by the government. Yet they remain low compared to the
requirements of the development programs of the country. A related constraint that
contributed to difficulties in mobilising adequate resources was the low level of domestic
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savings needed to support the huge demand for investment required for the country’s
accelerating growth and development.
Inflation: A major challenge encountered during the implementation of PASDEP was a
significant increase in inflation. This was a potentially serious challenge to maintaining the
macroeconomic stability. The government reacted in time with effective fiscal and
monetary policies as well as administrative measures to reduce inflation to single figures.
Rain: In some areas of the country, delayed arrival of rainy seasons, early withdrawal and
poor distribution of rain were challenges from which important lessons have been gained.
Industrial sector: The under performance of the industrial sector was due to inadequate
technical and managerial skills in the sector, foreign exchange shortages to import essential
raw materials, spare parts and other inputs, power disruptions, constraints of access to
efficient and effective credit services, and power disruptions..
1.5.2. Good Practices Learned
The lessons drawn from the implementation of PASDEP and which formed one of the
inputs to the design of the 2009/10-2014/15 Growth and Transformation Plan (GTP) are
the following.
Leadership, management and organisation: Many useful experiences have been gained
during PASDEP on leading and managing the economy, on how to coordinate and
mobilize the public at large, the private sector and non government organizations for
accelerated and sustained growth.
Agricultural productivity, production and scaling-up ‘best practices’: During
PASDEP, a number of model farmers who registered very high levels of productivity and
production have emerged. The “best practices” of these model farmers have been analysed
and documented for scaling up tothe rest of the other farmers during GTP period. This is
expected to increase productivity and production of most of farmers, and bring them closer
to the performance of the model farmers.
Mobilising domestic resources: Significant experiences are gained during PASDEP as to
how best to mobilize domestic resources and as to how to use domestic capacity most
effectively to accomplish developmental interventions. These experiences are now
integrated into the strategies and programs of the GTP for the next five years.
Good governance: The introduction of the good governance package in the PASDEP
resulted in a range of key interventions that contributed significantly to human
development, democratization, enhancing peoples’ participation, building well integrated
institutional capacity building and ensuring transparency and accountability. The next five
year plan will build on and expand the good governance initiatives.
Industrialisation: As there was not significant growth in the industry sector and more
specifically in the manufacturing sub-sector, the lesson is taken onboard that, in the next
five years, more must be done to increase the percentage share of the industrial sector in
GDP.
Social sector and infrastructure: Remarkable achievements have been realised in the
PASDEP period with regard to significantly increasing access to infrastructure and social
services, particularly education and health services. Thus consolidating the achievements
gained so far in terms of expanding infrastructure and social services and improving the
quality of social services and infrastructure have stood out as one of the pillar strategies of
GTP.
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CHAPTER 2.
BASIS, OBJECTIVES AND STRATEGIC PILLARS OF THE GTP
2.1. BASIS OF GROWTH AND TRANSFORMATION PLAN
The country’s vision, the achievements of PASDEP, and the lessons drawn from its
implementation, were the basis for formulation of the next five year (2010/11-2014/15)
Growth and Transformation Plan (GTP). Factors which constrained growth and external
shocks were taken into account in the formulation of the GTP.
Ethiopia’s vision which guides the GTP is:
“to become a country where democratic rule, good-governance and social
justice reign, upon the involvement and free will of its peoples, and once
extricating itself from poverty to reach the level of a middle-income
economy as of 2020-2023.”
The country’s vision specifically on economic sector includes:
“building an economy which has a modern and productive agricultural
sector with enhanced technology and an industrial sector that plays a
leading role in the economy, sustaining economic development and
securing social justice and increasing per capita income of the citizens so
as to reach the level of those in middle-income countries.”
From 2003/04, the economy shifted to a higher growth trajectory and the growth
momentum was sustained during the PASDEP period. Infrastructure development and
social services have expanded. The participation of private investors and the community in
general was very substantial. Domestic resource mobilization increased the capacity of the
country to finance development projects itself. The process of laying-out a foundation for
democracy and good governance was given due attention in reform programs undertaken
during the PASDEP period.
Among the major challenges encountered during the PASDEP implementation period were
the high inflation pressures on the balance of payments; the inadequate levels of, and
constraining factors in, both official development assistance and a lower level of domestic
revenue collection than expected, (which led to difficulties in mobilizing financial
resources to meet the growing development needs of the country); and the unpredictability
of rainfall.
The GTP will contribute to achievement of Ethiopia’s vision and to sustaining rapid and
broad based economic growth. The experiences gained in resolving challenges that arose
during, and lessons learned from, the implementation of the PASDEP were a starting point
for formulation of the GTP. In summary, the overall objective of the GTP, over the five
year period, is to sustain broad based, fast, and equitable economic growth so as to
eradicate poverty in due course.
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2.2. OBJECTIVES OF THE PLAN
The GTP has the following major objectives.
1. Maintain at least an average real GDP growth rate of 11% and attain MDGs;
2. Expand and ensure the qualities of education and health services and achieve
MDGs in the social sector;
3. Establish suitable conditions for sustainable nation building through the creation of
a stable democratic and developmental state; and
4. Ensure the sustainability of growth by realizing all the above objectives within a
stable macroeconomic framework.
2.3. STRATEGIC PILLARS
Ethiopia’s objectives and strategies for sustaining rapid and broad-based economic growth
path are dependent on the following GTP’s strategic pillars.
1. Sustaining rapid and equitable economic growth,
Maintaining agriculture as major source of economic growth,
Creating conditions for the industry to play key role in the economy,
Enhancing expansion and quality of infrastructure development,
Enhancing expansion and quality of social development,
Aree wy
Building capacity and deepen good governance, and
7. Promote gender and youth empowerment and equity.
Each of the strategic pillars is elaborated as follows.
2.3.1 Sustaining rapid and equitable economic growth
In order to achieve the vision of the country and, in due course, eradicate poverty and so
improve the livelihood of citizens, it is imperative to sustain the higher economic growth
of the last 5 years and beyond. For this reason, investments in growth enhancing sectors
such as infrastructure and social sectors will continue at a larger scale. Economic growth is
central in creating growing employment opportunities and Ethiopia’s transformation into a
middle income country.
The agricultural sector will continue to be the major driver of economic growth. Industrial
growth will be given particular focus. Rapid growth of an industrial sector that increases
the competitiveness of Ethiopia’s exports and results in import substitution will be
encouraged. This approach is expected to result in the rapid and broad based economic
growth that will provide a foundation for structural transformation. The government’s
efforts to eradicate poverty and create employment will be pursued by sustaining rapid and
broad based economic growth in a more coordinated and structured manner.
2.3.2 Maintaining agriculture as a major source of economic growth
The experiences gained from the agricultural development program, and lessons drawn
from implementation of the PASDEP, were an input to the GTP agricultural development
strategy. This strategy will support strongly the intensified production of marketable farm
products for domestic and export markets, by small farm holders and private agricultural
22
investors. Fundamentals of the strategy include a shift to production of high value crops
with a special focus on potential high productivity areas, intensified commercialisation,
and support for development of large-scale commercial agriculture, where feasible. The
commercialisation of smallholder farming will continue to be the major source of
agricultural growth. Concerted support will be given to increase private investment in large
commercial farms too. A range of public investments will be undertaken to scale-up the
successes realised so far. Further strategies include development of a more transparent and
efficient agricultural marketing system and increased investment in marketing
infrastructure.
To ensure that agriculture becomes the main source of growth for the next five years the
key strategy that will be pursued concerns scaling up of best practices of model small
holder farmers. Thus the best technologies and practices of the model farmers will be
scaled up for use by all other farmers during the GTP period. This will in turn increase
agricultural productivity and production. It is very essential also to strengthen the
government structures at all levels so as to provide effective services that increase
agricultural productivity. Although the emphasis will be on scaling up the best
technologies and practices of model farmers, new technologies will also be developed and
disseminated to farmers and pastoralists.
In addition to promote multiple cropping, better adaptation to climate variability and
ensure food security, the GTP will intensify use of the country’s water and natural
resources. Expansion of small scale irrigation schemes will be given priority, while
attention will also be given to medium and large scale irrigation. Concerted efforts will be
made to expand water shade management and to carry out effective water and moisture
retaining works. Apart from improving productivity and living standards of the rural
communities, these activities will help to cope better with the challenges of climate
change. Strengthening the conservation and management of natural resource is another
focus area. The conservation and management of natural resources will mainly rely on the
farmers and government capacities.
Commercial horticulture will involve intensive farming and high value commodity
production. It will extensively use labour and hence is likely to concentrate in highland
areas and closer to the major cities of the country. It will be integrated with the
surrounding small holder farming. In addition, given the expansion of infrastructure and
services through out the country large scale extensive commercial farming are likely to be
encouraged to grow. The other element of the agricultural development strategy is the
promotion of private large scale commercial farms in areas that are not occupied or utilized
by people.
During the GTP period, agriculture will shift to a high growth path in order to meet the
food security needs of the country, to curb inflationary pressures on agricultural products,
and broaden the export base of the country. The sector will serve as a spring board for
structural transformation in the long run by adequately supplying inputs necessary for
industrial growth.
2.3.3 Creating favourable conditions for industry to play a key role in the
economy
Ethiopia’s narrow industrial base is a major constraint on the nation’s ability to generate
foreign exchange and create job opportunities for its growing labour force. In the GTP
period, the industrial sector will receive the highest level of support for export oriented and
import substituting industries.
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In the industrial sector, the government will focus in particular on strengthening micro and
small-scale manufacturing enterprises, because they are the foundation for the
establishment and expansion of medium and large scale industries, and open opportunities
for employment generation, expansion of urban development and provide close support for
further agricultural development. The role MSEs play in scaling up agricultural sector
productivity is irrefutable and for this reason appropriate support will be provided to
strengthen vertical and horizontal linkages between agriculture and industry.
The growth of MSEs and their integration with TVET system development will be
instrumental in providing the necessary skills and education for technological transfer. This
in an important part of the effort to support MSEs, as is the provision of capital for MSEs’
operations through saving and credit institutions in a more transparent and accountable
manner. To solve the production facility problems of MSEs and those linked to identifying
market opportunities, efforts will be made by regions and city administrations to provide
production and marketing facilities at an affordable cost. Entrepreneurial as well as saving
attitudes and behaviours will be widely promoted among micro and small business
operators in particular and among the public in general.
Major support will also be given to establish and expand medium and large scale industry.
It is believed that these industries will encourage technological transfer, bridge the link
between micro and small enterprises and improve the competitiveness of domestic
resource based large-scale industries. Medium and large scale industries will also serve
well the domestic market and produce value-added products for the export market.
Measures to support selected strategic import substituting industries, both within the public
and private domain, will be strengthened and this will help increase the foreign exchange
earnings and lay the basis for more rapid industrial development.
As is clearly stated in the Ethiopia’s Industrial Development Strategy, the value that can be
added by the private sector is an important engine of the sectors’ development. The
business environment has over the years been conducive to investment and the trade and
investment framework has improved rapidly, thus attracting both domestic and foreign
investment. The government will continue providing all the necessary facilities and support
to realize the GTP’s industrial sector growth objectives.
2.3.4 Enhancing expansion and ensuring quality of infrastructural
development
The expansion and maintenance of economic infrastructure such as roads, power and water
supply, should be seen from the stand points of enhancing and sustaining pro-poor growth
through job creation and promotion of industrial development and, by these means helping
to realize poverty eradication. Even though large investments have been made over the
previous plan period, the infrastructural backbone of the country has not yet reached the
quantity and quality desired because of the low threshold of economic infrastructure in
2004/05. Constraints that have arisen to date in achieving the desired level of development
included limited local human capacity and the large capital investments needed, combined
with the high foreign currency component of those investments. During GTP period
therefore emphasis will be put on both expansion and ensuring quality of infrastructure
development.
The experience in implementing previous initiatives, the challenges encountered, and the
unanticipated opportunities that arose, have all contributed to lessons learned that have
improved the strategies adopted in the GTP. For instance, improvement in gross domestic
savings is a policy initiative adopted by the GTP, in order to mobilise resources to fund
24
investments and promotion of import substituting industries. Investment in development of
roads, railway networks, energy, irrigation and telecommunication will receive due
attention during GTP period. A major effort will be made to increase investment in
infrastructure by: increasing domestic savings and promoting import substitution of
materials that are necessary for the infrastructure development.
In the plan period, the road networks will be expanded. Every rural kebele will be
connected to an all weather road and thus to the main road network. Railway lines
connecting various parts of the country will be developed. To meet the country’s growing
energy needs efforts will be made to increase use of alternative energy sources such as
wind, geothermal and hydro energy. The ongoing telecommunication infrastructure
expansion program will be concluded and good quality and efficient services will be
provided by fully utilizing this countrywide and affordably priced infrastructure.
In view of the role of urbanization for economic and social development, building the
necessary urban infrastructures will be given emphasis to ensure rapid and equitable
growth of urban centres. The development of these urban infrastructures will be
implemented in a manner that they will contribute for MSEs development and employment
creation. Adequate attention will also be given to improve urban sanitation amenities to
create suitable living and working environment. A comprehensive regulatory and capacity
building framework will also be implemented in order to promote the development of a
more productive and competitive domestic construction industry.
2.3.5 Expansion of social development and guaranteeing their quality
Improving citizens’ living standards and development of their human potential, is a key
strategic pillar of the GTP. The government will take various measures to improve
peoples’ health, productivity and skills. Among other benefits, these measures will increase
the potential for government’s policies, strategies and programs to realize their objectives.
The main initiatives that are expected to ensure that this strategic pillar is realized are
improved access to good quality higher and adult education, very wide access to good
quality primary health care, better access to safe water and sanitation facilities, halting the
spread of HIV/AIDS and other key infectious diseases, improving food security and
nutrition, and improved housing conditions.
Education and training: The progress to date has been encouraging. In order to sustain
this level of progress, the government will increase its efforts to develop the country’s
human resources by improving the access to and the quality of education in the next five
years. To improve access to education, efforts will be made to address issues that hinder
students’, especially female students’, enrolment. Appropriate importance will also be
given to pre-primary and functional adult education. To improve the quality of education,
measures will be taken to address existing shortcomings by increasing the number of
teachers and schools. The government will expand and improve the initiatives taken to date
in its General Education Quality Improvement Program.
Higher education: The key priority in the higher education system during the five year
GTP will be to ensure the systems’ quality and relevance. To this end, the management and
administration of universities will be improved and strengthened. Efforts will be made to
ensure the Higher Education Strategic Centre and the Higher Education Quality Assurance
Agency fulfil their missions. The performance and implementation capacity of technology
institutes will be developed further. Adequate supply of university teachers will be ensured
through the implementation of a full fledged teacher development program. The revised
curricula will be implemented taking into account crucial issues such as instructional
25
processes, assessment and examinations and student achievement. The government will
launch a big push to strengthen science and technology in higher education.
Child care, special needs and adult literacy: The early childhood care and education
system will be made cost effective and more participatory and be expanded in both formal
and non formal education delivery mechanisms. The education strategy for children with
special needs will be fully implemented. A functional adult literacy program will be
expanded across the country.
Technical and vocational education & training: The TVET system will continue to be
an instrument for technological transfer, through the development of occupational
standards, accreditation of competencies, occupational assessment and accreditation, and
the establishment and strengthening of the curriculum development system. TVET
institutes will serve as the centres of technology and skill accumulation for micro and small
enterprises (MSEs). Rigorous and regular monitoring and evaluation of TVET institutes
will be carried out. The TVET program will be part of the government’s capacity building
program to strengthen engagement with, and productivity of MSEs, as a key instrument for
creation of employment opportunities.
Health Services: The GTP will focus on improving the health of the population through
provision of primary health care services that will be supported by the health extension
program. In addition measures will be taken to ensure quality hospital services and better
supply of medical drugs. The government will strengthen the measures it takes to improve
the number, skills, distribution and management of health workers, through enhanced
training of physicians (specialists and general practitioners). New systems of health care
financing will be explored and implemented to overcome the existing bottlenecks. An
incentive package will be developed to encourage domestic production of pharmaceutical
products.
To increase the contribution of the private sector to health services, efforts will made to
improve and extend the delivery of services and their quality. Lessons will be drawn from
other countries and integrated in the initiatives to be taken to improve the private sectors
contribution to the health system. Mobilisation of external finance, together with domestic
finance, in order to fund GTP health sector initiatives, will receive major attention. Private
pharmaceutical factories will also be encouraged to sustainably produce and deliver quality
pharmaceuticals. Generally GTP aims to fully achieve the MDG targets for the sector.
2.3.6 Strengthening good governance and capacity building
Strengthening institutional capacity is critical to implement the GTP policies, strategies
and programs and there by achieve satisfactory results. Apart from other existing,
structural and institutional constraints, the country’s economic growth and_ social
development are hindered by organisational capacity constraints. Government has designed
national programs, policies, and strategies that strengthen and sustain the country's
implementation capacity, institutionally and organisationally. This is a vital contribution to
the on-going process of democratization. For example, during the GTP period, the
implementation of Civil Service Reform Program and Good Governance packages will be
strengthened to ensure efficiency, effectiveness, transparency and accountability at all
levels. The capability of civil servants, at federal, regional and local levels will be
strengthened. Concerted efforts to improve information and communication systems will
be made that contribute to the socioeconomic transformation process.
26
In order to facilitate the strengthening of the stable, democratic and developmental state
that creates an enabling environment for development, major emphasis will be given to
strengthening democratic institutions, building up the capacity of civil service and I
society organisations and establishing a system for citizens’ access to information. Public
participation will be strengthened at all levels to ensure better transparency and
accountability in public decision making. In addition, the effectiveness of the justice
system will be improved and laws will be amended to ensure that implementation and
interpretation is in conformity with the constitution. The independence, transparency and
accountability of courts and the judicial system will be ensured. Law enforcement
institutions will be strengthened by improving the knowledge and skills of the human
resources’ employed and by providing the equipment required. Finally, the publics’
understanding and awareness of constitutional issues will be increased and the custom and
tradition of peaceful resolution of disputes improved.
Another critical element of this pillar strategy concerns ensuring transparency and
accountability in public decision making, as well as preventing and controlling corruption.
In this regard, the focus will be on radically improving the tax and land administrations of
the country. At the center of such reforms are improving the registration and information
systems of income, property and land. In addition, public education and awareness creation
that bring about attitudinal and behavioural changes, as well as effective enforcement of
laws will be pursued. The establishment of reliable and uniform vital statistics and
identification system of citizens will also be undertaken during the plan period.
2.3.7 Empowering women and youth and ensuring their benefits
Women and Youth: The objectives of the GTP can only be achieved when the
multidimensional problems faced by women and youth are addressed. To this end, the
government will scale up its efforts to implement its Women’s and Youth Policies and
Programs. These policies contain essential initiatives that will contribute to the
participation and effective utilization of the untapped potential of these key social groups.
During the GTP period, women and youth initiatives will aim to ensure equitable socio-
economic and political participation by and benefits directly for, women and youth in our
society. Unleashing the potential contribution of youth and women to national
development will have a profound effect on the speed, equity and sustainability of the
country’s overall growth and development.
Over the last few years major efforts were made to increase the enrolment of girls in
school, expand coverage of female health services, and increase extension services to
women farmers in rural areas. These efforts included also legislative and institutional
reforms to protect the rights of, and open opportunities for, women. Although, progress has
been made there are still challenges relating to changes in attitudes and traditional
malpractices. Government is committed to speeding up the pace of change through
education, by increasing the participation of women in public life, and by strengthening
women’s membership in gender based organizations.
Children: Relative to other sections of the community, children’s vulnerability to
manmade and natural disasters is higher. Efforts to date to minimise children’s
vulnerability will be increased during the plan period. Primary targets included in the GTP
are to ensure equitable benefits to children from development initiatives, support
vulnerable children, minimise harmful traditional practices that affect children, and protect
children’s rights and safety.
27
CHAPTER 3.
MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRANSFORMATION PLAN
3.1. MACROECONOMIC OBJECTIVES
Macroeconomic policy objectives for the five year GTP period 2010/11-2014/15 are the
maintenance of macroeconomic stability so as to encourage savings and investment by
adopting appropriate policies designed to promote rapid and broad based economic growth.
Fiscal and monetary policies will be managed in a manner consistent with these
macroeconomic objectives.
3.2. MACROECONOMIC POLICIES AND GOALS
The macroeconomic goals of the GTP are synchronized with the overall policy objectives
of maintaining the growth momentum witnessed during the PASDEP period, Ethiopia’s
vision of becoming a middle income country, and meeting its MDG targets at a minimum.
3.2.1. Economic Growth, Savings and Investment
The Ethiopian economy has registered an average annual real GDP growth rate of 11%
during the five years 2005/06 to 2009/10. The lesson learned during PASDEP and SDPRP
periods, is that sustainable, rapid and equitable growth is essential to the GTP. It is growth
that will help create employment and raise income, eventually eradicating poverty.
Two growth scenarios are considered in the GTP: Base Case and High Case Scenarios.
a) Base Case Scenario
Under the base case scenario, Ethiopia’s economy is projected to grow at an average
annual growth rate of 11.2%. This is the average growth rate attained during PASDEP and
the GTP intends to maintain this growth momentum. Under the base case scenario, it is
assumed that the economy will be able to grow provided that the same stable policies and
strategies are followed at macroeconomic and sectoral levels as adopted previously; that
prudent monetary and fiscal policy ensures that inflation remains at single digits; and that
tax collection and administration systems are strengthened so as to increase domestic
revenue substantially. All MDG targets will be met under the base case scenario.
Table 5. Real GDP Projection Annual Growth Rate (%)
Agriculture & Allied
ane 76
Activities 8.5 8.5 8.6 8.6 8.7 8.6
Industry 10.6 14.0 179 21.4 23.0 23.7 20.0
Services 13.0 12.5 1.5 10.5 9.5 9.0 10.6
Real GDP 10.4 11.0 1d 11.3 11.2 14 11.2
As shown in Tables 5 above, growth is expected to be broad based; agriculture is expected
to grow on average by 8.6% per annum while industry and services are expected to show
average annual growth of 20% and 10.6%, respectively.
28
Table 6. Projected Trends in the Structure of GDP by Industrial origin (% share)
Agriculture & Allied
Activities 41.6 40.6 39.7 38.7 37.8 36.9 38.8
Industry 12.9 13.2 14.0 15.3 16.9 18.8 15.6
Services 45.6 46.2 46.3 46.0 45.3 44.3 45.6
To bring about structural transformation in the economy, it is expected that the industrial
sector’s share of GDP will grow 12.9% to 18.8% and the agricultural sector’s share will
decrease from its current 41.6% to 36.9% at the end of the plan period. The service sector’s
share of GDP is projected to decrease from 45.6% to 44.3%. Achievement of these targets
will provide an enabling environment for economic growth by balancing demand and
supply of agriculture and industry sectors.
Looking at demand side of GDP, there are two macroeconomic balances to be
considered, namely the resource gap between savings and investment and the trade balance
between exports and imports (the export/import gap). In the GTP period prudent
macroeconomic management will be adopted to maintain these macroeconomic balances.
A single digit inflation rate is targeted to prevail throughout the GTP period. During
2010/11 to 2014/15, GDP at current market prices is forecasted to grow at a rate of 17.2%
on average, which is lower than the rate of growth during the PASDEP period. By the end
of PASDEP, the share of total final consumption expenditure to nominal GDP was
expected to decrease, but, it remained unchanged at around 94%, At the end of the GTP
period total consumption is forecasted to reach 85% while domestic savings are targeted to
increase from 5.5% in 2009/10 to 15% of GDP in 2014/15 and the five year average will
be 11.9%.
Gross domestic investment is forecasted to average 27.5% of GDP during the plan period.
In 2014/15 gross capital formation is projected to take a 28.2% share of GDP, rising from
22.3% of GDP in 2009/10. During the GTP period, the savings and investment gap is
expected to narrow and reach 13.1% at the end of the plan period, from its present level of
19.4%. This is a reflection of the government's intention to raise domestic savings towards
the investment financing requirement. In order to effectively raise domestic savings
macroeconomic stability and measures that ensure an enabling environment, such as
increasing financial sectors accessibility and diversifying their services, will be taken
during the plan period. (See Table 7 below)
Table 7. Demand Side GDP as Ratio to GDP @ Current Market Prices (%)
Total Consumption Expenditure 94.5 92.6 89.6 87.6 85.6 85.0 88.1
Gross Domestic Capital Formation 22.3 25.3 27.2 28.1 28.9 28.2 QS
Exports of Goods and Non-Factor Services 13.6 16.6 17.7 19.2 20.8 22.5 19.4
Imports of Goods and Non-factor Services 33.0 34.5 34.5 34.9 35.3 35.7 35.0
Resource Balance (19.3) (17.9) (16.8) (15.7) (14.5) (13.1) (15.6)
Gross Domestic Saving 3.5 TA 10.4 12.4 14.4 15.0 11.9
29
To ease the pressure on the balance of payments, policy and administrative measures that
promote growth and diversification of exports will be undertaken. At the end of the plan
period, the share of exports to GDP is expected to reach 22.5%, a rise from 13.6% in
2009/10. High value products such as horticulture and other new export items will receive
major support from the government. Combined with these initiatives, support will be
provided for import substituting industries so as to ease the shortages of foreign exchange
the country is experiencing. The share of imports of goods and services to GDP at current
market prices is forecasted to reach 35.7% (See Table 7 above).
b) Higher Case Scenario
The basic assumption for the high case scenario is the doubling of agricultural value added,
by scaling up the level of productivity of smallholder farmers and pastoralists to the
productivity levels of existing best (model) farmers. This places the economy on a higher
growth path than the base case scenario. Because of the potential of multiplier effects of
the smallholder farmers, the increase in agricultural supply will stimulate growth of other
economic sectors. Under the high case scenario, it is assumed that the possible upward
shift of demand, caused by the doubling of agricultural value added by the end of the GTP
period, will be stabilized by increased supply of agricultural sector goods that will keep the
inflation rate in single digits.
An annual average GDP growth rate of 14.9% is targeted under the high case scenario.
Agriculture, industry and service sectors are expected to grow on average by 14.9%, 21.3%
and 12.8% per annum, respectively (See Table 8 below). At the end of the plan period the
percentage share of agriculture, industry and service sector are expected to be 41%, 16.9%
and 42.1%, respectively. (See Table 9 below)
Table 8. Projected Trends in the Structure of GDP growth by Industrial origin (%)
epee 76 95 13.5 16.1 17.1 18.4 14.9
[industry 10.6 8 | 19.4 20.8 23.7 279 213
Services 13.0 14.6 | 13.8 12.9 11.8 10.9 12.8
Real GDP. 10.4 12.5 144 15.3 15.6 16.6 14.9
Table 9. Projected Trends in the Structure of GDP by Industrial origin (“%share)
tote es | 4156 | 399 | 305 | 308 | 403 | 410 42
Industry per | oa | 37 | m3 | is4 | 169 148
Service 4558 | 470 | 468 | 458 | 443 | 421 44.0
Real GDP 100.0 100.0 100.0 100.0 100.0, 100.0 100.0
The GTP five year average of total consumption expenditure, gross domestic capital
formation, total export and import as a percentage share of GDP is forecasted to reach
88.9%, 22%, 19.7% and 30.5%, respectively. The gross domestic saving as a percentage of
GDP will reach 17% at the end of the plan period, up from 5.5% in 2009/10, resulting in a
projected resource gap of 4.1%.
30
Table 10. Projected Trends in Structure of GDP from the Demand Side High Case
Scenario (% share in GDP)
Total Consumption Expenditure 94.5 93.9 91.9 89.2 86.4 83.0 88.9
Gross Domestic Capital
Formation 22.3 22.6 22.4 22.1 21,7 21.2 22.0
Exports of Goods and Non-
Factor Services 13.6 15.5 17.5 19.5 21,7 24.0 19.7
Imports of Goods and Non-
Factor Services 33.0 32.6 31.7 30.6 29.4 28.1 30.5
Resource Balance c9.3) | (7.0) | (4.2) | C10) | (7.7) (4.1) (10.8)
Domestic Savings 5.5 6.1 8.1 10.8 13.6 17.0 1
3.2.2.Prospects for Growth, Wellbeing and Poverty
Macroeconomic indicators are used to understand the linkages between growth and
poverty reduction efforts. Understanding poverty and wellbeing indicators and analysis of
poverty enables the causes of poverty to be identified. The results of poverty analysis are
important in designing policies, developing strategies and in identifying measures to be
taken by the government. Analysis of poverty also helps to evaluate the success of ongoing
policies and strategies, and their implementation.
Poverty analysis is multifaceted. The cost of basic needs approach is used to measure the
income or consumption expenditure aspects of poverty. Consumption is preferred as an
indicator of welfare, as opposed to income, because consumption better captures the long-
run level of welfare than current income. Consumption also reflects better the households’
ability to meet basic needs and it reflects the extent of households’ access to credit and
ability to save when their income is higher. For these reasons, consumption indicators
make a better measure than income, because they reflect actual household living (or
welfare) standards. For consumption to be an accurate indicator of households’ welfare it
has to be adjusted to take account of the difference in the calorie requirements of different
household members; for age and gender of adult members for instance. This adjustment
can be made by dividing real household consumption expenditure by an adult equivalent
scale that provides a proxy measure of the nutritional requirement of each family member.
The adult equivalent scale will, therefore, vary for different age groups and with the gender
of adult household members. For the reasons described, many of the poverty analysis
instruments, such as the head count ratio, use consumption indicators rather than income
indicators.
‘Total poverty’ refers to an aggregate measure of poverty that takes into account both the
food and non-food requirements. At this point it is worth noting how poverty lines are
established. The most widely used method of estimating poverty lines is the cost of basic
needs method (minimum expenditure approach). This method is applicable because the
indicators used are more representative and the threshold will be consistent with real
expenditure across time, space and income groups.
Following from the above justifications for, and definitions of, the methodology adopted,
the food poverty line is defined by selecting a bundle of food that is typically consumed by
the poor. The quantity of the bundle of food is determined in such a way that it supplies a
31
predetermined minimum calorie requirement level (2,100 kilocalories). This measure
enables us to establish a consistent poverty line for Ethiopia. On this basis, the Food
Poverty Line is determined by the minimum per capita expenditure required to acquire the
bundles of food which provide 2,100 kilocalories. In addition to this measure, the total
minimum per capita expenditure for basic needs (food and non-food) is used to determine
the Poverty Line. Using this methodology the Central Statistical Agency carried out studies
in 1995/96 that determined that the poverty head count was 45.5% and the number of
people under the Food Poverty Line was 49.5%.
It is clear that, in Ethiopia, economic growth is crucial for the eradication of poverty over
time, for citizens to enjoy fast growing living standards. This economic growth has to be
rapid, sustainable and fair. Failure to realize such type of economic growth will place
considerable constraints on the poverty eradication agenda. It is for these reasons that
Ethiopia’s development policies in general, and the GTP policies and strategies in
particular, place great focus on ensuring sustained, rapid, broad based, poverty reducing
and fairly distributed economic growth. Such economic growth will result in jobs being
created, as a result citizens’ earnings will rise and their living standards improve and this
will lead to the country breaking out of the poverty trap.
The recent study conducted by the Ministry of Finance and Economic Development,
“Dynamics of Growth and Poverty in Ethiopia (2008)” (based on three wide ranging
studies, the Household Income Consumption And Expenditure Survey, Welfare
Monitoring System and the Participatory Poverty Assessment) shows that a 1% per capita
GDP increase will result in a 1.7% decrease in the poverty head count index. Based on the
identified relationship between economic growth and its elasticity to poverty, it is
calculated that the poverty head count ratio and the food poverty ratio have declined to
29.2% and 28.2% at the end of the year 2009/10, respectively. An updated calculation of
the linkage between economic growth and poverty reduction will be determined when the
current Household Income Consumption Expenditure study is completed. It is expected
that the current HICE study will reveal that the poverty head count ratio, and the
percentage of people living below the food poverty line, will be less than the current
estimates because actual economic growth has been higher than projections for the last
several years. For this reason the GTP boldly aims to achieve the MDG target of halving
extreme poverty and hunger by 2014/15.
3.2.3. Fiscal policy
The medium-term fiscal policy objective is aimed at maintaining the deficit at a sustainable
level. This requires inflation to be contained at single digit levels while simultaneously
increasing public spending on pro-poor sectors. Among the major objectives of the fiscal
policy are to strengthen domestic revenue generation capacity, finance major investment
projects with own revenue, mobilize external grants, arrange external borrowing according
to the borrowing policy of the country, and to mobilize domestic borrowing in a way that
does not adversely affect macroeconomic stability.
On the revenue side, implementation of the on-going tax reform program will be
enhanced by strengthening tax administration and collection. During the GTP period,
efforts will be geared towards promoting compliance and equipping tax collection agencies
with adequate enforcement powers. These strategies will further boost revenue
mobilization at federal and regional levels. The government will accelerate the pace of
implementation of the tax reform program by strengthening the capacity of tax collection
agencies, implementing the Tax Identification Number system throughout the country,
32
improving the presumptive tax system, developing and implementing an audit program to
cover all taxes, and improving the administration of the Value Added Tax.
Efforts will also be made to improve the tax base and bring new businesses into the tax net,
particularly where they were beneficiaries of tax incentives (tax holidays). As a result of
these measures, it is calculated that, by the end of the GTP period, the share of total
domestic revenue and tax revenue to GDP at current market prices will reach 17.1% and
15%, respectively. The share of budget deficit including grants to GDP at current market
prices will be maintained at about 2% on average so as to maintain macroeconomic
stability (See Table 11 below).
Table 11. Fiscal Projection As a Percentage of GDP at @CMP (Base case Scenario)
Total Revenue Including Grants 17.3 17.8 18.4 19.2 20.4 20.4 19.2
Domestic Revenue 14.0 14.1 14.2 15.3 16.8 17.1 15.5
Tax Revenue 1.3 1.7 12.1 13:2) 14.7 15.0 13.3
Non-tax Revenue 2.8 24 221 2.1 2.1 2.1 2.2
Grants 32 37 43 3:9. 3.6 3:3 3.7
Total Expenditure 18.6 20.5 20.2 21.1 22.3 23.7 21.6
Recurrent Expenditure 8.4 8.9 8.6 8.8 OT 9.3 8.9
Capital Expenditure 10.3 11.6 11.6 12.3 13.3 14.4 12.6
Poverty Oriented expenditures 12.3 13.5 13.7 14.8 16.1 17.3 15.1
Expenditare Deficit including (1.3) (2.7) (1.7) (1.9) (1.9) (3.3) (2.3)
Deficit Financing 13 ay 1.7 19 1.9 3.3 2.3
External net Ll 1.0 0.8 0.8 0.8 0.6 0.8
Domestic net 0.5 1.6 0.9 1.1 12 2.7 1:5.
On the expenditure side, resource allocations have been guided by the government’s pro-
poor growth policy whereby the lion’s share of available resources are allocated to priority
infrastructure and services that enhance pro-poor economic growth and_ social
development. This policy will be applied more vigorously during the GTP period.
Accordingly, the highest percentage share of total spending will be allocated to pro-poor
sectors where capital expenditure as a percentage share of GDP is forecasted to reach
14.4% at the end of the plan period. (See Table 11).
3.2.4. Monetary Policy, External Sector and Financial System
Monetary Policy
Ethiopia’s monetary policy will continue to focus on maintaining price and exchange rate
stability so as to create a macro economy that is conducive for rapid and sustained
economic growth. Inflation will be held at single digits during the GTP period (2010/11-
2014/15). Measures will be undertaken so that growth of money supply will not be in
excess of nominal GDP growth. During the GTP period a stable foreign exchange rate is
envisaged, which will not only encourage export growth but also import substitution.
These in turn would facilitate stable economic growth and significantly minimize foreign
exchange constraints by strengthening hard currency reserves.
To implement the GTP both direct and indirect monetary instruments will be used as
appropriate. The government will develop and implement initiatives to encourage domestic
33
saving and investment. In this regard real interest rates will be maintained above zero
;while non-traditional sources of revenue mobilization such as bond sales to citizens at
home and the Diaspora will be put in place. The contribution and coverage of social
security services will be improved, while policy measures that encourage domestic savings
for machinery and housing investment will be introduced.
Financial system
In the GTP period the financial sector will be strengthened with the aim of establishing an
accessible, efficient and competitive financial system. One purpose of this initiative is to
increase domestic saving so as to sustain the fast and sustainable growth required to
provide resources for expanding and improving public services. Government will introduce
capacity building measures to raise the efficiency of financial institutions and improve
banking practices so as to ensure healthy competition, support private sector banks and
financial institutions to improve the coverage and quality of the financial services they
provide and help them to minimize non-performing loans and improve their profitability.
During the GTP period, greater emphasis will be placed on strengthening modern payment
systems, developing regulations to international standards and facilitating access to
financial services. It is expected that these initiatives will enable the current level of access
to finance of 20% to reach 67% by the end of the plan period.
The National Bank of Ethiopia will strengthen its human resources and information
technology infrastructure. The capacity of the Ethiopian Financial Institute will be
strengthened. Information technology that supports the bank information exchanges system
will be extended to microfinance institutions. The expansion and improvement of modern
IT networks, and their effective utilization by financial institutions will ease
communication and facilitate the flow of real time money from one corner of the country
to another. The introduction and wider application of payments systems that use faster,
electronic means, such as cards, mobile or other electronic instruments, will facilitate
improved banking services and help to reduce transaction costs.
3.3. SELECTED MACROECONOMIC AND SECTORAL TARGETS
Table 12 summarizes the key macroeconomic and sectoral targets expected to be reached
at by the end of the GTP period. These targets are also used to track the progress of the
economy and monitor the effectiveness of the GTP impacts as measured by major
indicators. Details of targets are presented in the chapters and sections that follow.
Table 12. Selected GTP Targets
The Macro Economy
Real GDP growth rate (%) 10.4 14
Per capita GDP @CMP (USD) 377 482/523
Total consumption expenditure as% of GDP 94.5 85.0
Gross domestic capital formation as% of GDP 22.3 28.2
Gross domestic saving as% of GDP 5.5 15.0
Government Finance
Domestic revenue including grants as% of GDP 173 20.4
34
Domestic revenue as% of GDP 14.0 17.1
Tax revenue as% of GDP 11.3 15.0
Total poverty-oriented expenditure as% of GDP 12.3 17.3
Total expenditure as% share of GDP. 18.6 23.7
Capital expenditure as% of GDP 10.3 14.4
Recurrent expenditure as% of GDP 8.4 93
Overall balance including grants as% of GDP (1.3) (3.3)
External (Net) as% of GDP ll 0.6
Domestic (Net) as% of GDP 0.5 2.7
External sector |
Total exports as% share of GDP 13.6 22.5
Total imports as% share of GDP 33.0 35.7
Resource gap as% share of GDP (19.3) (13.1)
Merchandise export as% share of GDP 6.7 15.6
Merchandise import as% share of GDP. 26.5 32.0
Poverty & Welfare
Total Poverty Head Count (%) 29.2 22.2
Food Poverty Head Count (%) 28.2 21.2
ECONOMIC DEVELOPMENT
Agriculture
Agricultural and allied activities growth (%) 7.6 87
Crop productivity (qt/ha) 17.0 22.0
Flower (min stem) 2,748 5,859.1
Land covered with multipurpose/versatile trees (thousands ha) 6,058 16,210
Number of extension service beneficiaries (thousands ) 5,090 14.640
Coffee exports (Tonnes) 319.647 600.970
Meat exports (000 Metric Tonnes) 10.18 1
Number of households participating in Productive Safety Net program nM 13
(min)
Industry
Sugar production (000 tonnes) 314.5 2250
Sugar export (000 tonnes) 0 1,246.3
Export of sugar (USD mln) 0 661.7
Textile and garment industry export earnings (USD mln ) 21.8 1000
Leather and leather products industry exports (USD min) 75.73 496.87
Total cement producing capacity (mln ton) 27. 27
Metal consumption per capita (kg) 12 34.7
35
Mining
Gold export (kg) 3,907 8.700
Gold sold to NBE by artisanal miners associations (kg) 2,866 5.250
INFRASTRUCTURE DEVELOPMENT
Roads
Total road length / road network (000 km) 48.8 64.5
Average time taken to all-weather road (hrs) a 14
Road density (km/1000 km?) 44.5 123.7
Road density (km/1000 population) 0.64 1.54
Roads in acceptable condition (%) 81 86.7
Area further than 5 km from all-weather roads (%) 64 29
Construction of new all weather road that connect all rural kebeles 0 71,523
with main roads (Km) ii
Railway
Railway network (Km) - 2395
Energy
Electricity service coverage (%) 41 75
Power generating capacity(MW) 2.000 8.000
Reduce transmission lines power losses (%) 115 5.6
Increase number of new customers (mln) 2 4
Length of distribution lines construction (Km) 126,038 258.038
Rehabilitation power transmission lines (Km) 450 8.130
Telecommunication
Fixed line telephone density (%) 1.36 3.4
Mobile telephone access/distribution (%) 8.7 45
a population telecommunication service access within 5km radius 62.14 100
Fixed telephone subscribers (in mln) 1.0 3.05
Mobile telephone subscribers (in mln) 6.52 40
Internet service subscribers(in mln) 0.187 3.69
Water
Overall potable water coverage (%) 68.5 98.5
Urban population with access to potable water within 0.5km (%) 915 100
Rural population with access to potable water within 1.5km (%) 65.8 98
Land developed for medium & large scale irrigation schemes (%) 25 15.6
Construction and Urban Development
Jobs created to reduce urban unemployment rate in towns under 6 is
integrated housing development (000)
36
Job created through MSEs (mln) - 3.0
Provision of housing and basic services (number of housing units) 213,000 370,000
Reduction of slum areas (%) 60 30
Road constructed with cobblestone (km) - 3738
Education
Net primary enrolment rate (1-8) (%) 87.9 100
Primary school girls to boys ratio 0.93:1 I
Primary school pupil text book ratio 1.25:1 Ll
Adult education participation rate (%) 36 95,
Tatalnamber of undergraduate students in government higher — ae
Total number of TVET students 717603 1,127,330,
Health
Primary health services coverage (%) 89 100
Under five mortality rate (per 1000) 101 68
Infant mortality rate (%) 77 31
Maternal mortality rate (per 100,000) 590 267
Contraceptive prevalence rate (CPR) (%) 32 66
Births attended by skilled health personnel (%) 25 60
Under one year penta 3 immunization coverage (%) 82 96
Percentage of households in malaria prone areas with insecticide- 100 100
treated bed nets (%)
Reduce incidence of malaria 0.7 <0.7
HIV/AIDS incidence rate (%) 0.28 0.14
Increase TB case detection rate (%) 36 75
37
CHAPTER 4.
FINANCING THE PLAN
Financing social and economic development programs is essential for the realization of the
objectives stated in the GTP. Allocation of finance is based on the medium term Macro
Economic Fiscal Framework, an instrument used by the government to frame resource
expectations from domestic and external sources and allocate resources to key sectors in
line with the overall development objectives of the country. The process of preparing the
Macro Economic Fiscal Framework begins by identifying the overall resource envelope in
the period from 3 to 5 years.
During the GTP five year period, allocation of development finance will aim to support the
overriding objective of poverty eradication - within the country’s financial capacity and
within the maintenance of stable macroeconomic conditions. Based on these objectives, a
larger share of total government spending will be allocated for development of pro poor
and growth enhancing sectors. Government recurrent expenditure will be fully financed
from domestically generated revenue whilst, capital expenditure will be financed by
domestic revenue and external sources.
Projections of government revenue, allocation of resources to government's priority
sectors, estimates of budget deficit, and financing under the base case scenario are
presented in the following sections.
4.1.GOVERNMENT REVENUE
Domestic revenue will be mobilized mainly from tax and non-tax sources. Estimates of
revenue collected from taxes for the five year period 2010/11 to 2014/5 assume full
implementation of GTP initiatives, including on-going tax reform, improvement in
efficiency of tax administration, and broadening the tax base in line with the economic
growth anticipated and the potential resources that can be mobilised. Non-tax sources of
revenue will be mobilized from the dividends and proceeds of public enterprises.
Other initiatives to raise financing for the GTP include encouraging private savings and
investment, scaling up external development assistance and increasing Foreign Direct
Investment (FDI). There are sources of development finance that do not appear in
government’s budget. These include off-budget financing by NGOs, local government
expenditures using their own resources, and own source spending by public enterprises.
During the five year GTP period, domestic revenue, including grants, is expected to reach
ETB 173 bin by the end of the plan period, up from ETB 66.24 bin in 2009/10, out of
which, ETB 145.3 bln will be mobilized from domestic sources and the remaining ETB
27.7 bIn ETB from external sources. (See Table 13 below).
38
Table 13. Projected GTP Revenue Requirements Under Base Case Scenario (in mln
ETB)
Total Revenue Including Grants | 66,237 | 79,806 | 96,941 | 118.281 | 147,524 | 173,040 | 615,591
Domestic Revenue 53,861 63.315 | 74.585 | 94,119 | 121.660 | 145,299 498.978
Tax Revenue 43,315 | 52,534] 63,588 | 81.228 | 106.460 | 127.212 431,022
Non-tax Revenue 10,546 | 10.781 | 10,997 | 12,891 | 15,200 | 18,087 67,956
Grants 12,376 | 16.491 | 22,356 | 24,162 | 25,864 | 27,741 116,613
4.2. GOVERNMENT EXPENDITURE
Government developmental expenditure is determined by the financial capacity of the
country where the finance is collected from tax, non tax sources of revenue and official
development assistance. Government recurrent expenditure during the GTP will be based
on the base year (2009/10) spending, the growth prospects of the country in the coming
years and the assumption of a stable macro economy. Capital expenditure during the GTP
period prioritizes the financing of ongoing projects and investments on pro-poor sectors
(such as agriculture and rural development, food security, water, education, health, roads,
rural electrification, etc) that will help realize development policies and strategies set by
the government and described in the GTP.
By the end of the plan period, it is expected that total government spending will reach ETB
201.1 bln, up from its ETB 71.3 bin in 2009/10. ETB 78.9 bin of the expected 2014/15
expenditure will be allocated to finance recurrent expenditure and ETB 122.2 bln to
finance capital expenditure. By the end of the GTP period, expenditure on poverty-oriented
and growth enhancing sectors will reach ETB 146.8 bin.
Table 14. Projected government Expenditures, Base Case Scenarios (mln ETB)
Total Expenditure 71,334 | 92,049 | 106,125 | 130,187 | 161,452 | 201,146 690,959
Recurrent Expenditure 32,012 | 40,046 | 45,224 | 54,383 | 65,477 78.924 284,054
Capital Expenditure 39,322 | 52.003 | 60,901 75.804 | 95,975 | 122.222 406.905
Poverty Oriented Expenditures 47,251 | 60,682 | 72,165 | 91,131 | 116,245 | 146,837 487,060.
Agriculture and Food Security 6,998 9,518 | 13,123 | 15,905 | 20,302 | 25,699 84,547
Education 16,870 | 21.703 | 24,562 | 29.579 | 36,354 44,025 156,223
Health 4,547 6.260, 7,027 8.796 11,121 13,894 47,098
Road 14,601 | 17,304 | 21,752 | 28.762 | 36,581 45,898 150,296
Water 4,235 5.897 5.701 8.088 11,888 17,321 48.894
In general, in order to meet the GTP objectives, a total of ETB 690.90 bln is required, out
of which, ETB 406.90 bin will be used to finance capital outlays and the remaining ETB
284.0 bin will be allocated to finance recurrent expenditure. In other words of the total
39
finance required during the plan period 58.5% will be spent on capital outlays and 41.5%
on recurrent expenditure. (See Table 14 above)
4.3. FINANCING
In 2009/10, the total government revenue was ETB 66.2 bin and the total expenditure was
ETB 71.3 bln. The budget deficit, including grants, of ETB 5.1 bln was financed through
borrowing from both domestic and external sources. The budget deficit of ETB 28.11 bin
at the end of the GTP period is expected to be financed from domestic (ETB 22.9 bln) and
external borrowing (ETB 5.2 bln). During GTP period a total of ETB 75.4 bin budget
deficit will be financed from domestic (ETB 50.6 bin) and external borrowing (ETB 24.4
bin).
Table 15. Projected Budget Gap During GTP, Base Case Scenario (in min ETB)
‘otal
2010/1
201
| Total Revenue Including Grants 66.237 79,806 96.941 | 118.281 | 147,524 | 173,040 | 615,591
Domestic Revenue 53,861 | 63,315 | 74,585 | 94,119 | 121,660 | 145,299 | 498.978
Tax Revenue 43,315 | 52.534] 63.588 | 81,228 | 106.460 | 127.212 | 431,022
Non-tax Revenue 10.546 10.781 10.997 12,891 15,200 18,087 67.956
Grants 12,376 16,491 22,356 24.162 25.864 27,741 116.613
Total Expenditure 71,334 | 92,049 | 106,125 | 130,187 | 161,452 | 201.146 | 690,959
Recurrent Expenditure 32.012 40.046 45,224 54.383 65.477 78.924 | 284.054
Capital Expenditure 39,322 52,003 60.901 75,804 95.975 | 122,222 | 406,905
Poverty Oriented expenditures 47,251 | 60,682 | 72,165 | 91,131 | 116,245 | 146,837 | 487,060
Expenditure Deficit incl. Grants 5,097 | -12,243 -9,184 | -11,906 | -13,928 | -28.106 -75.368
Deficit Financing 5.097 12,243 9.184 11,906 13,928 28.106 75.368
External net 4,131 4,520 4,201 4,974 5,490 5,220 24,405
Domestic net 1,758 7,356 4.983 6.932 8.438 22.886 50,595
Privatization 366 366
Projected expenditures presented in table 14 and 15 are based on the estimates of the
medium term Macro Economic Fiscal Framework. In contrast, Table 16 presents
expenditure requirements presented by implementing agencies. Thus, an amount of ETB
756,066 bin expenditure is estimated by the implementing agencies which exceeds by ETB
65.1 bln compared to the estimate of the Macro Economic Fiscal Framework. This budget
will be allocated in alignment with the government's fiscal policy and based on the sectors'
annual plan and budget. The budget deficit from the perspectives of the resource need of
the sectors during the five years period will be ETB 140.47 bin. (See Table 16 below)
40
Table 16. Resource need by Implementing Sectors, Budget Deficit and Financing (in
min ETB)
Total Revenue
66,237
79,806 | 96,941
118,281 | 147,524 | 173,040 | 615,591
Total Expenditure Required
71.334
92.048 | 126,827
145,434 | 174,842 | 216.915 | 756.066
Recurrent Expenditure 32,012 40,046 54.046 61.975 74,507 92.436 323,010
Capital Expenditure 39,322 | 52,002] 72,781 | 83,459 | 100.335 | 124.479 | 433,056
Poverty Oriented expenditures | 47.251.6 | 60,682 | 86.243 | 101.802 | 124,139 | 156.179 | 529.045
Agriculture & Food Security 6998] 9518] 15,683] 17.768] 21,680] 27.334] 91,983
Education 16,870 | 21,703 | 29.354] 33,043 | 38.823 | 46,826 | 169.749
Health 4547.6] 6260] 8398] 9,826] 11,876 14.778 | 51,138
Road 14,601 | 17.304 | 25,995 | 32,130 | 39.065 | 48.sis | 163,312
Water 4235[ 5.07[ 6813 [9.035 | 12.695 [18.423 [52.863
4.4, OFF BUDGET FINANCING OF INFRASTRUCTURE AND INDUSTRIAL
PROGRAMS
As shown in the following tables, the total financing requirements of infrastructure and
industrial development programs which will be undertaken off government budget are
forecasted at ETB 569.19 bin. The financing arrangements of these programs will be 30%
from own sources of development enterprises and 70% from domestic and external
borrowing. Domestic borrowing will be effected within the framework of the government's
monetary policy and a stable macroeconomic situation. External borrowing will be
undertaken following the national borrowing policy. Of overall financing requirement
indicated above, ETB 315.43 bln (55.42%) is required in foreign currency as indicated in
the following tables.
41
Table 17. Off Budget Financing Requirement of Infrastructure and Industrial Development Programs
1 Industrial Development 16,229.67 51,954.59 56,728.13 42,056.96
Textile and Garment Industry
Metal Engineering Industry
Chemical, Pharmaceutical and Cement Industries
‘Fertilizer Complex Industry
Leather and Leather Products Industry
“Micro and Small Scale
Management and Privatization of Public Enterprises
‘Sugar and Associated Products Industry
Ethiopian Airlines
Ethiopian Marine Transit Service
hiopian Dray Port Service
Ethiopian Shipping Line
Communication
Ethio-Telecom
Energy
9,174.68
35,088.3
16,647
740
14,942.76
775
886.5
963.6
3|
3,384.33
3,290.24
1,487.8
0.00
4,256.7
11,154.12
201:
In mln ETB
26,591.73 193,561.08
3,172.01
15
_0.00
6,293.02
15,945.4
20,466
- 19,095.4
73,574.86
110,796.1
177,735
Addis Ababa Resident Houses Construction Project
Grand Total (1+2+3+4+5)
Foreign Currency Requirement (%)
96,638.53
62.85
152,687.33
53.32
143,970.23
54.01
14,960
42
Table 18. Off Budget Foreign Currency Requirement of Infrastructure & Industrial Development Programs
In min ETB
c | 1/ 2013/14 | 4
Industrial Development 21,873.89 91,660.01
Textile and Garment Industry ¥ - ee 997. 9,511.60
2,008.10
Chemical, Pharmaceutical and Cement Industries z 244. 8,967.4 E 524. 24,892.70
‘Fertilizer Complex Industry : : 2,707.46 2,632.19 10,564.01
Leather and Leather Products Industry 523. 1,262.6 F Ee 3,993.50
Micro and Small Scale Enterprises 880. 320. 333 6,534.10. |
“Manag ation of Public ps . 3,708.7 864. 160. 12,851.30
“Sugar Industry
Resident Houses of Sugar Industry
26,485.36 28,247.14 26,781.7 7,254.91 107,247.75
9,488.8 18,621.6 17,217.2 483. 4,011.2 62,822.60
37 | 22.7 i , 453.5] 2,
14,942.76 | 8,425.74 | 1,307.43 220.41 | 31,142.35
750.6 64 1,565.9 1,960.8 9.70
. 5 _ 84.7
524.3
Energy 100,950.00
Addis Ababa Resident Houses Construction Project
Foreign Currency Requirement (mln ETB) 60,736.75 82,933.00 77,765.16 56,215.02 37,777.12 315,427.06
Overall Financing Requirement (mln ETB) 96,638.53 152,687.33 143,970.23 105,228.20 70,666.84 569,191.10
Foreign Currency Requirement (%) 62.85 53.32 54.01 53.42 53.46 55.42
43
4.5. THE ROLE OF THE PRIVATE SECTOR AND THE PUBLIC
As pointed in the previous chapter, many development programs and projects are undertaken
by the government and other development actors. Previous experience shows that the
participation of the private sector, non-government organizations and the public at large in the
development process has been significantly increasing. Accordingly, in the next five years,
the private sector, the public and non-government organizations are expected to play a more
active role and thereby significantly contribute to the success of the GTP. The contribution of
the private sector, the public and non-government organizations is therefore included as one
critical element of the country’s overall capacity to finance the GTP.
44
CHAPTER 5.
ECONOMIC SECTORS DEVELOPMENT PLAN
5.1. AGRICULTURE AND RURAL DEVELOPMENT
5.1.1 Strategic Direction
Main focuses for agriculture and rural development are increasing the capacity and extensive
use of labour, proper utilization of agricultural land, taking account of different agro-
ecological zones, linking specialization with diversification, integrating agricultural and rural
development, strengthening the agricultural marketing system and effective implementation
of the scaling up of best practices in the sector. Bearing these strategic directions in mind, the
Agricultural Development—Led Industrialization Strategy emphasises that small holder
farmers and pastoralists need to use efficiently available modern agricultural technologies that
increase productivity and production. In addition, the private sector will be encouraged to
increase its share of investment in agriculture. The remarkable growth that has been registered
to date will be further strengthened in the GTP period. In order to expand Ethiopia’s export
markets, initiatives will be put in place to increase penetration of international markets.
During the GTP period, a key strategic direction is to ensure smallholder agriculture becomes
the main source of agricultural growth by scaling up interventions based on the experience
gained, and identification of successes achieved in the previous plan period. Experience to
date has shown that it is possible to increase the productivity of smallholder farmers within
short period of time by better utilizing smallholders’ labour, land and by using improved but
less capital intensive agricultural practices and technologies. It is also the case that there is a
growing demand for agriculture products because of growth in population, growth in per
capita GDP, increasing international demand and growing demand for agricultural products as
raw materials inputs to the growing industrial sector. These national and international realities
justify the need for increased investment in agricultural sector to increase productivity and
production.
The results realised to date show that it is possible to transform subsistence agriculture to
more market led production. The key derivers of this change will be improvements in
farmers’ productivity and production. Thus, to lay the foundation for industrial development,
to use agricultural inputs for the industries, to produce sufficient food crops and high value
products for international market, agriculture will continue to play a leading role in the GTP
period.
a) Smallholder Agriculture Development
Smallholder agriculture development will focus on the following three strategic directions.
Scaling up of best practices: The productivity of most average farmers is two to three times
lower than that of best farmers. Scaling up of best practices to bring up the productivity of
most average farmers closer to those of best farmers is the first strategic direction to be
pursued during the GTP period. To realize this strategic direction, public capacities at all
levels, the agricultural extension services system and the skills of development agents will be
strengthened. Although the key direction is efficiently and effectively utilizing available
technologies and practices adopted by model farmers through scaling up strategy,
continuously building technological capacities is also important. Thus intensifying use of
good agricultural practices, adoption of new technologies by farmers and pastoralists will be
encouraged. To ensure agricultural growth is sustainable, capacity to adopt and utilise new
and proven technologies will be continuously strengthened. New technologies will be
45
developed and tested and, where results are encouraging, will be disseminated to farmers and
pastoralists.
Expand Irrigation Development and Improve Natural Resources Conservation:
Accelerated and sustainable agricultural growth will be secured by natural resources
conservation, development and improvement of water utilization, and expansion of irrigation
coverage. These areas will remain focus areas during the five year plan period and will
include development of underground and surface water, irrigation development and natural
resource conservation. These in turn entail capacity building for farmers and of government
support structures.
Production of high value crops: A further implementation strategy is a focus on improving
the incomes of farmers and pastoralists. Farmers and pastoralists will be encouraged to shift
gradually from production of low value to high value products. This strategy will be
implemented gradually and will take account of geographic differences on specializations and
existence of favourable market and infrastructural factors.
b) Pastoral Development
Activities implemented in pastoral areas mainly focus on livestock resource. In that sense
priority is given to water development adequate both for the local community and livestock.
This activity will be implemented in relation to the improvement of pastoral land irrigation
development. Activities related to food security will be implemented mainly in connection
with infrastructure developments.
In areas convenient to irrigation development, resettlement of pastoralists on voluntary basis
will be another task to be undertaken. Identifying, selection and dissemination of improved
livestock breeds will be strengthened, and improved mobile veterinary services will be given.
At local levels, emphasis will be given to increasing the number of professionals and
strengthening their capacity so as to enable them give support to pastoralists.
To benefit the pastoralists from their livestock wealth, marketing system will be improved.
Thus standard livestock centers will be built, pastoralists will be encouraged to organize
themselves into cooperatives. To implement these activities close support will be given by
the government. Extension systems will be strengthened; research centers will be expanded in
a way to adopt appropriate technologies that give solution to local problems. Generally all
possible measures will be facilitated to expand the extension system integrated with the
pastoralist livelihood.
c) Private Sector Agricultural Development
Agricultural development policy explicitly states that private investors can participate in the
nation’s agriculture development endeavours. As a result of the efforts exerted to implement
this policy success has been realised in the floriculture. The participation of private investors
has been minimal in areas where extensive agriculture could be practiced, but where physical
infrastructure is weak and, as a result, the government has been investing more in basic
infrastructure in these areas. Where infrastructure has been expanded in rural areas the
increase in private sector investment has gradually increased. The increase in demand for raw
agricultural inputs for the growing industrial sector has also encouraged private investment in
the sector. Infrastructure improvements have increased interest in investments in agriculture
from abroad and domestically. In the five year plan period, more effort will be made to
improve and increase the role of the private sector in the agriculture sector, in lowland areas
where land for large scale commercial farming is in demand. In addition, in the highlands and
areas close to major cities, private investment will be steered towards high value horticulture
46
products that can be produced on limited land, using abundant labour (thus generating
significant employment) as well as increasing supply of produce for export. This type of
private investment will require considerable expansion of basic infrastructure and a plentiful
supply of labour. These investments will be integrated with smallholder agriculture and help
to provide sustainable markets for smallholder farmers.
5.1.2 Objectives
The broad objective of agriculture and rural development in the next five-years is to achieve
accelerated and sustained growth that contributes to poverty eradication and achievement of
MDGs. The excellent results of, and experiences gained from, the implementation of earlier
as well as ongoing programmes will support the attainment of agriculture and rural
development sectoral objectives and of MDG targets by 2015.
During the plan period natural resources and soil conservation, enhanced use of appropriate
technologies and practices as well as market oriented production will serve as the instruments
to ensure rapid agricultural growth. A focus on export led production will compliment
increased productivity and ensure accelerated development of the sector. Agriculture will
continue to be the major source of economic growth while small holder farming will be the
major source of agricultural growth. The private sector’s role in the sector will also be
promoted in order to secure sustained agricultural and rural development.
5.1.3 Major Targets
Major targets for agriculture and rural development are indicated in the following table.
Table 19. GTP Targets for Agriculture and Rural Development
Cul ited land
1. Total cultivated land utilised by major food crops (mln ha) 11.25 12.17
2. Production of cereals (mln ha) 9.1 9.6
3. Cereals productivity (qv/ha) 17 22
Coffee production and productivity
4. Cultivated land by smallholder farmers (ha) 462.000 815,000
5. Coffee production (tons) 341,000 831,000
Livestock development
6. Cattle feed production (qts) 50.000 145,000
7. Improved cattle breeds (%) 10.3 37
8. Production and distribution of improved livestock gene (mIn dose) 0.35 2
9. Proportion of livestock vaccinated (%) 40 65
10. Proportion of low grade hides and skins (%) 50 15
11. Production of improved animal fodder seeds (qts) 50,000 145,000
Agricultural inputs supply
12. Supply of improved seeds (mln qts) 0.56 3.6
13. Supply of chemical fertilizers (both DAP and Urea) (mln tons) 0.83 1.66
Agricultural extension
14. Number of beneficiaries of agricultural extension services (mIn.) 5.09 14.64
15. Of the beneficiaries of agricultural services proportion of women
and youth (%) 0
47
Improving soil fertility
16, Areas under Vertisol development (min ha) 0.60 3
17. Acidic land treated with lime (ha) 2210 37850
Natural Resource Conservation Program
18. Area of land rehabilitated (min ha) 3.21 10.21
19. Land developed under community based water shade development
program (mln ha) att ws
20. Total area of land subjected to soil fertility research (mln ha) 0.894 2.82
21. eae of land covered with forest and with forest master plan 0.70 2.20
22. Area of land covered with multi-purpose trees (min ha) 6.06 16.21
23. Forest coverage (min ha) 13 18.23
24. Increase multipurpose trees (ha) 5062 10154
25. Natural resources conservation activities in pastoral areas (ha) 200,000 350.000
Small Scale Irrigation Program
26. Land developed under small scale irrigation (mln ha) 853 1850
Food security
27. Number of households participate in safety net programs (min) 71 13
28. Food reserve (min tones) 0.41 3
Agricultural Marketing
29. Coffee export (tons) 172,210 600,970
30. Coffee export earnings (mln USD) 528 2037
31. Increase export earning of oil seeds (mln USD) 358 1120
32. Increase export earning of pulses (min USD) 129.86 882
33. Increase the export of oilseeds (tons) 299,198 724.216
34. Increase the export of pulses (tons) 225.446 1.120.981
35. Increase the live animals exported (no.) 333.743 2,353,000
36. Meat export (tons) 10.180 111,000
37. Live animals and meat export earnings (mln USD) 125 1000
38. Earning from flowers export (min USD) 170 535
39. Earnings from export of vegetable. herb and fruits (mln USD) 31.7 948
40. Earnings from export spices (mln USD) 18.57 30
41. Export of spices (tons) 15,594 34.240
42. Export of gums and incense (tons) 4,370 10,233
43. Export earnings from gums and incense (mln USD) 12.68 33.43
44. At the end of the plan period it has been planned to generate USD 6.58 bln from the agriculture sector
export market by exporting 3.81 min ton of agricultural products, 5859 mln flower cuts and 2.35 mln live
animals.
Cooperative Development
45. Number of primary cooperatives 33.636 56.904
46. Number of cooperatives unions 212 546
Agricultural Research
At the end of the plan period new technologies development in cereals, livestock, soil, forest
development and agricultural mechanization will reach 265, 140, 41,219 and 836, respectively
48
Private Investment in the Agricultural Sector
47. Production coffee and tee and other export crops (mln tons) 0.251 1.81
48. Transfer nearly 3.3 min ha land to commercial farming investors in transparent and accountable manner
Horticulture Development
49. Land area under flowers production (ha) 1,586 3.000
50. Flower production (min cuts) 2,748 5,859.1
51. Land under the production of vegetables, fruits and herbs (ha) 2,472 33,000
52. Production of vegetables, fruits and herbs (tons) 58.400 979,600
5.1.4 Implementation Strategies
a) Small holder agriculture
The major implementation strategy for agriculture and rural development in the GTP five year
period is to scale up the best practices identified to date. Agricultural technologies that proved
to be viable and beneficial, when tested by model farmers, will be transferred to other farmers
as quickly as possible and the design and capacity building activities necessary to implement
this strategy will be undertaken.
Crop production and productivity: As a result of the performance in agriculture and rural
development, and the experiences gained, many of the conditions that are important to
accelerate agricultural growth have been identified. It is possible to increase the productivity
of smallholder farmers within a short period of time, by better utilizing smallholders’ labour,
land and with the efficient use of available technologies as well as introduction of improved
agricultural practices and technologies. To ensure in particular effective scaling up of the best
practices the extension system will be continuously improved, while the capacity of extension
agents will be continuously strengthened.
Adequate moisture areas: In areas with adequate moisture the focus during GTP
implementation will be on the scaling up strategy. Successful experiences, such as efficient
ways of utilizing rain water and use of beneficial technologies, together with improved
agricultural practices, will be expanded to increase crop production and productivity to the
highest levels possible.
The core element of the scaling up strategy is to extend those improved agricultural
technologies and practices that have been tested and used by model farmers to all other
farmers. To put these into practice, and overcome the constraints that arise while doing so,
continuously improving the extension system, strengthening capacity building, organisational
and support services will be important.
The main mechanism adopted to implement the scaling up strategy will be to bring together
best experiences according to technology types. This formulation process will be continuous
as additional best experiences emerge during the implementation process. When improved
technologies and agricultural practices are identified, training to introduce and improve skills
will be provided to development specialists and farmers at farmers training centres and
demonstration farms. Where technological problems are identified, appropriate measures will
be taken to resolve and replace them with workable solutions. Solving attitudinal and skill
related problems can develop a stronger commitment to and demand for technology. For this
reason, measures will be taken to have an adequate supply of technology to meet the demand
created. Appropriate adjustment measures will be taken to fine tune the system of technology
inputs to the scaling up strategy. A transparent, efficient and effective agricultural marketing
49
system will be put in place in order that market capacity meets increased production following
the scaling up strategy.
Implementation agencies and professionals will, at different stages, have to use best/model
farmers’ in the training process so that practical experiences are shared in a learning process.
To ensure the benefit of experience is transferred effectively, the support of specialists will be
provided by the extension system. At the end of the plan period, it is expected that, as a result
of these measures, of those farmers who participate in the scaling up program, 90% will
record productivity results that meet the model farmer benchmark.
In order to increase crop production and productivity, technologies and practices that improve
soil fertility will be encouraged. Parallel to an increased use of chemical fertilizers,
government will introduce activities to create awareness and develop skills to increase the
amount and coverage of organic fertilizer use. In areas where moisture is adequate modern,
drainage methods will be introduced in order to get full benefit from Vertisols. Steps will be
taken to gradually change the existing blanket fertilizer application system to one based on
soil fertility testing that identifies different agro-ecological areas, soils and suitability for
major crop types. The aim is for 90% of fertilizer use to be preceded by this type of procedure
and thus increase benefits from fertilizer application. In addition, action will be taken to
increase distribution and use of organic fertilizers, such as bio-fertilizers, that can easily be
used by farmers.
In adequate moisture areas, in order to increase crop production and productivity, improved
agricultural practices will be applied. These include: the selection of crop varieties suitable for
the soil type, adequate and timely farm preparation, use of the right planting time, the right
quality and quantity of the planting input, and modern planting/sowing practices. In order to
increase crop production and productivity, implementation of appropriate weeding frequency
is considered important. Continuous assessment of pest infestations will be conducted, and
measures taken when there is an infestation. Emphasis will be given to harvesting, storing
and using matured crops in places and conditions where the crop is not exposed to pests.
While giving appropriate focus to the use of rain water, actions will also be taken to bring
about significant change in water use by expanding the area of irrigation schemes. In places
where it is easy to access underground water, farmers will be supported to construct hand dug
wells, and use them for production of garden vegetables and permanent crops. Special
attention will be given to small scale irrigation schemes development. Technologies that
improve access to and use of water resources will be widely encouraged and applied.
The combination of scaling up the lessons learned from best farmers with increased irrigation
is expected to double agricultural production. Other interventions will be integrated with these
implementation activities, such as Vertisol drainage and development of double cropping
systems based on Vertisols.
Technology multiplication, supply and distribution: Expansion of the use of technology
and of its’ supply and distribution systems is crucial to increased crop production and
productivity. For this reason, during the GTP period, improved technologies will be applied to
ensure the supply of the required quantity and quality of fertilizer, improved seeds, and small
farm machineries.
Natural resources management: In areas with adequate moisture, appropriate conservation
practices will be scaled up. During the GTP, soil and water conservation works will be
implemented using organized community participation, in those areas where such works are
required. Forestry development, protection and utilization works will be carried out in a
similar way.
50.
Livestock resources development: Livestock development is expected to be promoted along
side the scaling up strategy of crop production in areas with adequate moisture. The focus will
be on the expansion of livestock fattening and dairy development technology. Improved
technologies for honey production and poultry resources development will also be introduced.
The success of these technologies will require strengthening of support for breed
improvement, pasture development and animal health.
In the case of cattle breed improvement a strong focus will be given to artificial insemination
breeding techniques and the implementation of better local breeds’ selection and distribution.
Because both improved and existing breeds become more productive when they receive
adequate and balanced feed, homestead pasture development, improvement of grazing land,
use of forest hacks, and development of pasture crops for zero grazing, will be undertaken.
Focus will also be given to preventative animal health services such as the provision of
vaccination services (before incidence of disease), additional capacity for vaccine storage,
training adequate animal health specialists, and expanding service delivery facilities,
including mobile services.
In adequate moisture areas, based on the principles of specialization, adequate support will be
provided to farmers through the extension system to enable them increase the production and
productivity of high value products. Extra focus will be given to production of coffee,
sesame, cotton, spices, vegetables and fruits. Broad support will be provided for preparation
and formulation of packages to scale up outstanding experiences, and for the completion and
expansion of these in order to increase the productivity and quality of outputs and to ensure
farmers realise increased incomes.
Research-extension-farmers linkage: Strengthening the linkages between research,
extension services and farmers is essential to the wider use of improved technologies and
practices. Help for farmers’ to absorb technology, scaling up use of improved technologies,
and support for the technology distribution and operating systems will be further reinforced.
The research-extension-farmers councils that are coordinating this initiative at different levels
will be strengthened in their capability and capacity to identify technological problems, to
promote joint solutions, to identify appropriate mechanisms and to become more results-
orientated.
Initiatives to identify, test, produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock, natural resources and agricultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies and their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
technology for irrigation.
Moisture deficit areas: The government strategies for agriculture development interventions in
moisture deficit areas will take into account what is necessary for adequate moisture areas.
Some of these strategies are to enhance the development agents and farmers’ skills, strengthen
the organisational capacity of the extension system, and focus on the scaling up of
outstanding experiences. The necessary work will be done to multiply technologies suitable
for these areas and to supply and distribute the same as well as establish a comprehensive
input and marketing system.
Appropriate efforts have been taken earlier to tackle problems related to moisture deficit.
These include identification of suitable technologies and practical tests to determine their
performance. During the GTP period, the major focus will be to use these tested technologies,
where appropriate, more extensively. Where there have been interventions in watershed
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development that produced outstanding results, such as soil and water conservation works,
these will be replicated. Natural resources interventions will be extended to all moisture
deficit areas and can result in rapid rehabilitation, emergence of springs from the watershed
basin and use of the resources created for irrigation purposes.
Depending on the agro-ecology, soil type and slope of the area, different technologies will be
put in place. These may include various types of stone and soil bunds as appropriate, water
retention structures, erosion protection technologies and ridges, enhanced moisture retaining
technologies, deep trenches, ponds, tie ridges and flood channels to divert rain water for use
on farms. Natural resources development and protection practices are labour intensive and
enable activities that use peoples’ labour in beneficial and productive ways. When
individuals, households or communities contribute labour it will always be on a voluntary
basis. The safety net program will be used in these cases, following the approach of common
asset development for the watershed development works as designed.
The major beneficiaries of natural resource development and protection interventions will be
the people and communities who will also be the owners of the facilities provided and users
of the developed watershed in their locality. In particular, implementation will ensure that
youth and women are well represented among participants and beneficiaries of such
initiatives.
One of the results to be achieved from watershed development in moisture deficit areas is the
augmentation of underground and surface water. To this end, the down stream watershed will
benefit from irrigation and supplementary irrigation development and use. By this means,
moisture deficit areas problems can be solved while, at the same time, practices that increase
production and ensure food security are put in place.
In moisture deficit areas, through introduction of various technologies for harvesting and
holding rain water, it is possible to produce crops once in a year. To this end, moisture
retaining works will be widely implemented. Water retention holes will be dug within and
around farm plots to ensure the success of this approach. Adequate production will be
ensured by constructing and covering water harvesting ponds using a geo-membrane, making
tie-ridges on farms, building water and moisture retaining works. Adequate moisture will be
maintained and productive cropping will enabled by diverting flood water to farms.
In moisture deficit areas, small ruminants, honey bee and poultry development will be widely
integrated with the watershed development interventions. In this regard special emphasis will
be given to sheep and goat production. Production of feed for these animals will encouraged
together with the watershed development interventions and by selecting from indigenous
breeds and using available exotic breeds and multiplying them, productivity will be enhanced.
In order to provide health care for these animals, vaccine services will be provided, and
control services provided for external parasites and diseases such as midges.
When bee keeping is integrated with watershed development, beekeeping will become a more
extensively practice and honey production increased at the household level and through youth
and women associations by introducing and supplying modern beehives. Improved poultry
breeds will be supplied to farmers to help increase their income.
One initiative for livestock resources development in pastoral areas that will be given
emphasis is the selection and distribution of local breeds for breed improvement purposes.
Animal health services, including mobile services will be expanded, and the number and
capacity of experts to deliver services will be increased. Natural resource management will be
an important component of agricultural development in pastoral areas.
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The Food Security Program has been implemented in moisture deficit areas known for their
food insecurity problems. The program has experience with household asset building, safety
net, and settlement programs, as well as with off-farm income generating activities and with
the relationships between and integration of these activities. The safety net program will be
implemented jointly with the household asset building program. This is because it helps solve
natural resource degradation problems, which in turn are a cause of the food insecurity
problem, and because it helps to build community assets. For these reasons, efforts will be
made to increase the programs effectiveness.
By targeting those safety net beneficiaries who are involved in the household asset building
component and by giving them support for business plan preparation, training, technology
supply, credit and extension services; the program will be better able to ensure their food
security. In the household asset building component, packages of support that are based on the
food security strategy will be formulated. The packages will include those which are suitable
for moisture deficit areas and that ensure food security in low moisture areas, such as water
harvesting. The settlement program component of the Food Security Program was designed to
ensure rapid food security. It is carried out on voluntary basis and is an alternative option
available to households. In addition, those households that have very small plots, and landless
youth and women, will be encouraged to engage in non-farm income generating activities.
They will be provided with adequate support to ensure their food security by providing
packages of skill and business management training, credit and access to markets.
The early warning system will be strengthened. Early warning of disaster and capacity
building for the response to disasters will be key tasks over the GTP period. Ensuring a timely
response to disaster will be included as part of agricultural support and economic
development strategies and programs. In terms of preparedness for disasters, food and non-
food reserves will be increased with storage capacity built to meet the increase, particularly of
food security reserves.
b) Pastoral development:
The livelihood of pastoralists is intertwined with livestock resources. Improving pastoralists’
livelihood is inseparable from the development of these resources. Consequently, the main
emphasis will be given to water resources development for livestock and human consumption.
This initiative will be undertaken together with improvement of pasture land and development
of irrigation schemes. This approach has been tested and proven successful in Fentalie, and as
efforts are already being made to expand the approach to Somali, Afar and SNNP Regional
States, it will be widely expanded in the five year plan period.
The Food Security Program, when implemented in pastoral areas, will be introduced such that
they bring about complementary community investments and there by promote sectoral
development. For example, in areas where there are rivers, undertaking river diversion work
or, where there is underground water, drilling boreholes need to be implemented. Water
resources released by these investments will be made available for livestock and human
consumption, as well as to develop irrigation schemes and improve pasture land. Together
with these activities, voluntary resettlement programs will be executed that enable
pastoralists’ to establish settled livelihoods. Natural resource management will also be an
important component of agricultural development in pastoral areas. Breed improvement by
extensive implementation of better local breeds’ selection and distribution will also be given
attention and animal health services will be improved through expanding mobile veterinary
service provision, training of adequate animal health specialists and strengthening the
institutions.
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In order for pastoralists to benefit more from livestock resources, focus will be given to the
expansion of livestock marketing system. Adequate livestock markets will be provided and
the existing markets improved. Animal transportation systems and market price information
systems will be strengthened. The pastoralist extension system and research centers that
address the technological needs of pastoralists will be strengthened. Pastoralists will also be
encouraged and supported to voluntarily organize in to cooperatives so as to address their
marketing and other challenges. Efforts will be made to integrate the mutual benefits realised
by pastoralists and domestic investors involved in ancillary services such as stock fattening,
abattoirs and cattle trading. In addition, government support will be provided to private
investors for investment in pastoral areas in, for instance, slaughter houses and quarantine
stations that meet the required standards.
c) Private sector investment in agriculture
Horticultural development: Cluster based development that has developed in selected areas
around horticulture export ventures, particularly those supported by greenhouse technology,
will be strengthened. Measures will be continuously taken to address the three major
problems of the sector: marketing problem, logistical constraints, and transport limitations.
These problems will be addressed in collaboration with actors in the sector. New land with
basic infrastructure will be identified and held in a land bank for new development clusters.
Recognising, the expansion and increasing viability of farms in the vicinity of Addis Ababa,
arrangements will be made to encourage similar cluster formation and economic integration
around other major cities. In order to minimize initial investment cost, favourable conditions
will be put in place to produce green house facilities, irrigation pipes, etc. Efforts will be
made to increase the participation of Ethiopian investors in horticulture development and
integrate them with farmers engaged in horticulture production in different areas. Actions will
be taken, where necessary to encourage livestock breeders and seed suppliers in the country,
increase the number of horticulture investors, input suppliers and service providers within the
sub-sector, and promote and encourage the aims of these activities.
In the five year plan period, smallholder farmers will be encouraged to participate in an out-
growers scheme for production of exportable vegetables, fruits, spices and herbs. The scheme
will adopt a rigorous monitoring and evaluation system that includes pre- and post production
benchmarks and standards, and include human resources development that provides support
from experts with practical skills and knowledge.
Large scale farming development: Large scale farming will be undertaken by private
investors in lowland areas where abundant extensive land exists will be expanded and given
due attention, in the next five years. The necessary arrangements will be made to increase
private investors’ participation by identifying areas that are not inhabited but are suitable for
agriculture. Exploratory studies will be conducted to determine which forms of agricultural
production enterprises are most suitable for each area identified. These areas and the data
concerning them will be registered and organised in a land bank. An effective land
administration system and implementation agency that ensure transparent and accountable
land leasing and land use will be established. The government will encourage investment in
suitable areas identified by enabling local and external investors develop using lease system.
The necessary support will be given to encourage the participation of Ethiopian investors.
Efforts will be made to attract foreign investment in a manner that will be beneficial for
Ethiopia’s agricultural sector development. In order to make the areas identified suitable for
investment, essential infrastructure service will be provided and supply of transport. Labour
supply will be mobilized from labour surplus areas. Follow up inspections of land use will be
made and investor support services provided.
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Every effort will be made to ensure private investors receive efficient services from
government. While supporting private investment in large scale farms, government’s focus is
to ensure that the products from these farms are primarily for export or raw materials for
domestic industries. For these reasons, emphasis will be put on cotton, date palm, tea, rubber
tree and similar types of crops. Double cropping systems of production will be encouraged.
d) Agricultural Marketing:
A shift in the attitudes and production processes of farmers and pastoralists from subsistence
to more market driven production has started to occur. This involves a change in attitude and
life style and a new focus on international markets. Farmers and pastoralists will be helped to
shift gradually from the production of low to the production of high value products and to
ensure that their incomes increase as a result. The transformation of the agricultural sector,
especially in terms of rapid agricultural diversification and commercialization, must be
complimented by an effective marketing system.
Modern agricultural marketing systems, such as the marketing practiced through Ethiopia
Commodity Exchange, will be strengthened. Initiatives that contribute to improving the
agricultural marketing system include identifying and expanding best practices of model
farmers, improving the quality of agricultural products, strengthening monitoring and support
systems at all levels, improving market infrastructure and the agricultural marketing
information system, building the capacity of the market actors, and strengthening the capacity
and participation of cooperatives. During the GTP period the primary markets will be
effectively linked to the Ethiopian Commodity Exchange system so as to create an integrated
and efficient marketing system.
To improve the agricultural marketing system a number of initiatives will be taken in GTP
period. The experiences of best small scale farmers will be clearly identified and be scaled up
from kebele to federal level. Quality control of agricultural products will be put in place and
the marketing system established. A strong monitoring and support system from regional to
kebele level will be put in place and will serve to ensure the integration and performance of
the market. Primary markets will be established and strengthened. Market infrastructure will
be provided and market promotion strengthened so as to identify and penetrate new markets
and increase the share in existing markets. An agricultural marketing information system will
be established so that information can be delivered to users on a timely basis. The capacity of
the market actors will be enhanced, agricultural product quality ensured and proper standards
set. Cooperatives will be promoted to play a significant role in the marketing system. The
focus will in particular be on identifying the problems of existing cooperatives and thereby
undertaking measures that enhance their capacities.
The government will work closely with private actors in order to address market problems of
particularly certain items. In this regard the government will work closely with all
stakeholders to rectify the market, logistics and transport problems observed in horticulture,
live animal, meat and other crucial export items.
e) Research-extension-farmers linkage:
Strengthening the linkages between research, extension services and farmers is essential to the
wider use of improved technologies and practices. Help for farmers’ to absorb technology,
scaling up use of improved technologies, and support for the technology distribution and
operating systems will be further reinforced. The research-extension-farmers councils that are
coordinating this initiative at different levels will be strengthened in their capability and
capacity to identify technological problems, to promote joint solutions, to identify appropriate
mechanisms and to become more results-orientated.
Initiatives to identify, test, produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock, natural resources and agricultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies and their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
technology for irrigation.
f) Building the capacity of implementers
The scaling up strategy triggered to achieve a meaningful increase in smallholder production
and productivity is discussed earlier in this chapter. The initiatives involve improvement of
soil fertility, implementing improved agricultural practices, technology multiplication, and
improved supply and distribution. To successfully implement these initiatives, building the
capacity of all the implementation agencies and individuals is a decisive issue. Support to the
agricultural sector will be strengthened in terms of the effectiveness of human resources,
operations and organizations, at all levels. The development agents who provide specialized
services directly to farmers will be helped to increase their skills and motivation. Clear
procedures for how they can access suitable short and long term training will be put in place.
To provide for those areas where development agents are not adequate in number, the
Agricultural Technical and Vocational Education and Training colleges will train additional
development agents in the areas of agriculture development, animal health and cooperatives.
In order to increase farmers’ motivation, their technological skills and ability to deploy
improved agricultural practices will be improved. This initiative will use the outstanding
practices of model farmers’ via practical training sessions and materials at farmers’ training
centres. A simple farmers’ extension service that enables transfer of model farmers’
experiences, such as development groups, will be used as a preferred experience exchange
approach. The farmers training centres as one of the agencies that will be responsible for
enhancing farmers’ skills will be expanded and those which are fully operational strengthened
by increased support and equipment provision as well as by setting up organized
demonstration farms.
5.2. INDUSTRY
To ensure faster and sustained development of the industrial sector, favourable conditions will
be created for industry to play a key role in the economy. To this end, particular emphasis will
be given to two main sub-sectors. First the main strategic direction will be to support
expansion and development of micro and small enterprises. In addition, efforts will be made
to further develop medium and large scale industries.
5.2.1 Strategic Directions
Agricultural Development Led Industrialization is the fundamental building block of
industrial development in Ethiopia. To support this key policy, the private sector will be
promoted so that it can play a more significant role in sustaining economic growth. The
government’s industrial development strategy states that ensuring accelerated and sustained
industrial development is a fundamental policy direction. To implement this policy, the
sector’s development strategy focuses mainly on industries that are labour intensive, have
broad linkages with the rest of the economy, use agricultural products as inputs, are export-
oriented and import substituting, and contribute to rapid technological transfer. In other words
the key strategic direction of industrial development will be micro and small scale industrial
development.
a) Micro and small enterprises development: This will be the strategic focus of the
industrial development during the GTP period. During the plan period an
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b)
qd)
environment conducive for the emergence of new MSEs and support that increase
the productivity of the existing MSEs will be put in place. This strategic direction
will enable the development of broad-based and competent private sector. The
expansion of MSEs in urban areas will also result in large scale job creation and
thereby poverty reduction. The development of MSEs is also critical for
strengthening sustainable rural-urban and urban-to-urban functional and economic
linkages. The expansion of MSEs is crucial too for sustaining the rapid growth being
witnessed in the agricultural sector.
Medium and large industries development: particular emphasis will be given for the
following medium and large scale sub-industries:
Textile and garment industry,
Leather and leather products industry,
Sugar and sugar related industries,
Cement industry,
2 be
Metal and engineering industry,
Chemical industry,
Pharmaceutical industry, and the
Agro-processing industry,
Industrial zones development: based on their feasibility industrial zones that are
suitable for establishing medium and large scale manufacturing industries will be
developed.
Public enterprises management and privatization: The capacity and management of
public enterprises as well as privatization will be enhanced.
eI ay
5.2.2 Objectives
The development objectives for the industrial sector are to
1.
Create a broad-based spring-board for competitive domestic industrial and private
sector development;
Create employment opportunities and thereby reduce poverty:
Support sustainable development of agriculture;
Increase industrial production and productivity by fully utilizing the existing capacity
of industries;
Promote medium and large industries that use domestic raw materials labour;
Create a strong foundation for the sector to start playing a leading position in the
national economy, employment generation, and foreign exchange earnings and
savings;
Strengthen the sector’s capacity to produce locally equipments, machinery and spare
parts.
5.2.3 Major Targets
To achieve the objectives described above, the following targets have been set.
a. Micro and Small-Scale Enterprises
MSEs Development is the key industrial policy direction contributing to the envisaged
structural transformation of the economy. The overall objective and key government policy
direction for this sub-sector is to expand the quantity and quality of micro and small scale
S7
enterprises. Major targets to achieve this objective and implement the policy direction are
presented in the following table.
Table 20. GTP Targets for Micro and Small-Scale Enterprises
Description of Targets
1. Provide comprehensive support to micro and small scale enterprises so that they create employment
opportunities for about three mIn people. Achievement of this target will enhance citizens’ income,
contribute to a rise in domestic saving, and enhance the benefits of women and youth from the sector so as
to reduce unemployment and poverty.
Provide Training of Trainers for 10,000 professionals in the sub-sector.
3. Provide capacity building and basic skills training for about 3 mln operators in the areas of
entrepreneurships, technical and vocational skills.
Prepare and develop 15,000 ha of land for working premises, and construct shade and buildings for MSEs.
5. Provide micro credit and marketing information and work with producers to identify bottlenecks and
provide support where solutions are identified.
b. Medium and Large Scale Manufacturing Industries
Brief descriptions of the objectives for each designated industry under medium and large scale
manufacturing industries are presented below. The targets during the plan period are
presented in summary for all designated medium and large scale manufacturing industries in
the table below.
Textile and Garment Industry: The objectives for the textile and garment industry include
maximising utilization of existing production capacity, increased export earnings, and
increased investment in the sub-sector. This will be achieved mainly through the provision of
support and by creating an environment conducive to the industry’s development.
Leather and Leather Products Industry: The objectives for the leather industry are to
expand production of locally produced products, in terms of both variety and quality, as
substitutes for imported leather products, increase foreign exchange earnings, and strengthen
the technological capability of the industry. It is expected that these objectives will be met
mainly by the establishment of new investment projects, expansion of existing operations and
by improving the production and productivity of the industry.
Sugar and Related Products Industry: A key objective for the sugar and related products
industry are to produce sufficient sugar production to meet the local demand of sugar
production. Sugar and related products production will be expanded so as to support the
supply of energy/power and other key economic activities. The contribution of the sugar
industry to overall economic development will be increased as will job opportunities. For the
effective implementation of the industry’s objectives, human resource development,
institutional capacity building and relevant research and technological capacity will be
enhanced.
Cement Industry: The objectives of the cement industry are to fully satisfy local demand for
cement and create capacity to supply cement to the export market.
Metal and Engineering Industry: The objectives of the metal and engineering industry are
to enhance the industry’s production, quality and productivity, substitute imported products,
build-up the design and manufacturing capacity of the industry as well as supporting other
manufacturing industries.
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Table 21. GTP Targets for Medium and Large Scale Manufacturing Industries
Raise the gross value of production of the textile and garment industry to USD 2.5 bin by the end of the
plan period.
2. Scale up the production capacity of the textile and garment industries by an additional 90% during the plan
period.
3. Raise foreign exchange earnings from the textile and garment industry, by the end of 2014/15 to USD 1.0
bin.
4. Create new employment opportunities that contribute to the reduction of unemployment, for about 40,000
citizens during the plan period.
Create an annual production capacity. in existing and new tanneries of 60.2 mln square feet of finished
leather.
6. Through the importation of hides and skins, pickle, wet blue, and crust, solve raw leather supply problems
so as to upgrade the production capacity of tanneries to 90% of full capacity.
7. Raise the foreign exchange earnings from the export of leather and leather products from USD 75.73 mln in
2009/10 to USD 496.5 mln by the end of the plan period.
Raise annual production of sugar and ethanol to 2.25 mln tons, and 304,000 m3, respectively, and also
generate 607 MW of electric power, by the end of the plan period.
9. Develop an additional 200,000 has of land planted to sugar cane.
10. Generate USD 661.7 mln foreign exchange earnings from the export of 1.246.000 tons of sugar. of which
623,000 tons is raw and 623,000 tons is white sugar.
11. Raise sugar cane productivity to 155 tons per ha, by the end of the plan period.
Create additional employment opportunities for more than 200,000 citizens.
13. Raise the country’s total cement production capacity to 27 min tons (a day. month, annum) by the end of
the plan period.
14, Achieve an annual cement per capita consumption of 300 kgs.
15. Increase the gross value of domestic products of the industry to ETB 101.4 bin.
16. Raise the capacity utilization of the industry to 95%.
17. Improve annual per capita metal consumption to 34.72 kgs.
18. By improving the production and technological capacity of the industry increase local production capacity
of manufactured parts and components for selected major manufacturing industries.. namely leather, textile,
sugar, cement, agro-processing, construction and vehicle body industries to 90%, 35%, 85%, 85%, 75%,
95%, 85%. respectively.
Chemical Industries
Brief descriptions of the objectives for each designated industry under chemical industries are
presented below. The targets during the plan period are presented in summary for all
designated chemical industries in the table below
Fertilizer Industry: The objective for this industry is to produce sufficient fertilizer, using
domestically available raw materials, so as to meet the local demand for the product.
Caustic Soda and Soda Ash Industries: The objectives for these industries are to establish
the basic chemical manufacturing industries, using locally available raw materials, sufficient
to supply and satisfy the input needs of other export oriented and prioritized industries.
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Soap and Detergent Industry: The objective of this industry is to create sufficient local
capacity to wholly substitute imported soap and detergent products with local products.
Paper and Paper Products Industries: The objectives for the pulp and paper industry are to
create the capacity to substitute imported products with local products sector.
Plastic and Related Products Industries: The objective of the plastic and related products
industries is to substitute imported plastic products with locally produced products.
Rubber Tree Industry: The objective of the rubber tree industry is to create the capacity to
manufacture natural rubber locally so as to substitute wholly for imports of the product.
Table 22. GTP Targets for Chemical Industries
1. One Fertilizer Industry complex will be established to partially fulfil local demand,
2. Caustic Soda and Soda Ash Industries Establish a caustic soda manufacturing plant that can produce
50,000 tons of caustic soda per annum to meet fully the product's local demand
3. Caustic Soda and Soda Ash Industries Establish a soda ash producing plant that can produce 35,000 tons
of soda ash per annum to meet fully the product’s local demand.
4. Soap and Detergent Industry Establish new factories that can produce 166,000 tons of soap and detergent
products.
5. Soap and Detergent Industry By the end of 2014/15, raise the capacity utilization of soap and detergent
factories to 90%.
6. Paper and Paper Products Industries Establish the capacity to produce 410.000 tons of paper and
315,000 tons of pulp through new investment, by the end of the plan period.
7. Paper and Paper Products Industries By the end of 2014/15, raise the capacity utilization of the existing
paper producing factories to 98%.
8. Plastic and Related Products factories. One plastic factory will established to partially fulfil the local
demand and substitute for imported plastic inputs and products.
9. Rubber Tree Industry The target is to: Establish cultivation of 3,000 has of commercial rubber trees, and
produce and supply 10,000 tons of natural rubber latex per annum with the involvement and ownership of
Rubber Tree Development National Nucleus Project, farmers, and investors.
10. Rubber Tree Industry Establish a processing plant producing 6.700 tons of technically specified rubber
(TSR) annually.
Pharmaceuticals Industry
The objectives of the pharmaceutical industry are to create the capacity to produce essential
pharmaceutical products that substitute for imported products and also supply export markets.
This will be achieved by improving the utilisation of existing capacity and the establishment
of new industries.
Table 23. GTP Targets for Pharmaceuticals Industry
1. To achieve full utilization of the existing capacity of local pharmaceutical and medical supplies
manufacturers.
2. To raise the share of the domestic market held by local pharmaceutical and medical supplies manufacturers
to 50%.
3. To increase the export earnings of pharmaceutical and medical supplies products to USD 20 mln.
60.
Agro Processing Industry
The objectives of the agro-processing industry are to increase the productivity and capacity
utilization of the existing industries, support and promote the establishment of new industries
so as to increase the sub-sector’s production both to local and foreign markets.
Table 24. GTP Targets for Agro Processing Industry
1. To raise the productivity of the beverage industry by increasing its capacity utilization to 90%
2. To generate USD 300 min from the export of agro-processed products.
c. Industrial Zones Development
The main purpose of developing industrial zones is to attract more investment and investors
by providing land with essential infrastructural services and creating an attractive
environment for investors. The initiative contributes to the overall economic development and
poverty eradication by creating employment opportunities, enabling increased exports and
foreign currency earnings, and providing local goods that substitute for imported goods.
Accordingly the GTP target is to establish at least 4 feasible industrial zones by implementing
the following strategies.
1. Solve the problems developers encounter in acquiring basic infrastructure services such
as land, power, telecom, road, customs, etc, in a timely manner.
2. Expand and strengthen training centres and institutions so that developers have access
to a plentiful supply of skilled and competent human resources.
3. Assist developers and attract foreign investment to the industrial zones.
4. Cover 30% of the cost of providing basic infrastructure services such as water,
telephone, power, roads, etc.
d. Public Enterprises Management and Privatization
A main objective of public enterprises management and privatization is to improve the
operational performance of public enterprises and thereby increasing their competitiveness
and effectiveness. In addition, the reform with regard to public enterprises management and
privatization aims to increase export earnings. A high level of corporate leadership and
management will be ensured. Feasible projects in areas the private sector is unable to finance
will be established so as to rectify market failure and there by foster economic development.
Table 25. GTP Targets for Public Enterprises Management and Privatization
1. To raise the value added amount from public enterprises to USD 5.32 bin and an overall growth rate of
19%.
2. For all public enterprises to achieve 100% capacity utilization.
3. To increase the profitability of public enterprises, before tax, to ETB 5.25 bln - an annual growth rate of
21%,
4. To increase export earnings of public enterprises to USD 140 min.
5.2.4 Implementation Strategies
Micro and small-scale enterprises: One of the strategies to be pursued in promoting MSEs
development would be strengthening of the regulatory and policy environment such that the
environment nurtures entrepreneurship and competitiveness. The promotion of MSEs
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development will take into consideration the different stages of development of the
enterprises. Accordingly, the support provided will vary depending on whether the enterprises
are at starting, growth or maturity stages of development. Yet the strategy will particularly
encourage enterprises that display entrepreneurship, and that are becoming more and more
competitive in the market. The second implementing strategy concerns promotion of savings.
Training and complementary support will be provided to encourage savings and increase the
capital of MSE employers and employees. The micro credit support system centers around the
use of own initial capital and savings to start up a business. To supplement this however, an
accountable, efficient and transparent mechanism will be put in place to enable the provision
of credit to MSEs. In addition, mechanisms will be put in place to help MSEs with access to
production and marketing premises to ease their capital problems.
Continuous training and awareness creation initiatives will be delivered to MSE owners to
nurture their entrepreneurship. There will be further expansion of the industrial extension
service in urban areas to improve the productivity and competitiveness of MSEs. The TVETs
will serve as skill and technology centers that support MSEs through technical skill and
entrepreneurship training, technology transfer and improvements, and business counselling.
The TVET will support MSEs by ensuring a good supply of skilled labour that will be
integrated with the industrial development extension system. Government’s development
programs will be designed in a supportive manner, to develop and improve capacity of MSEs.
Government will put in place supportive market mechanisms such as export incentives,
linking MSEs to medium and large scale manufacturing industries and access to agricultural
outputs for MSE production inputs.
Medium and large scale manufacturing industries: Here too, one of the strategies is to
strengthen the policy and regulatory environment for private sector development. By
increasing transparency and eliminating rent seeking attitudes, Ethiopian entrepreneurs will be
encouraged to increase their investments in, and thus the productivity of, medium and large
scale manufacturing industries. An environment conducive to increasing the contribution of
the manufacturing sector to the economy will be created by building the capacity of Ethiopian
investors to collaborate with foreign investors. To increase the pool of adequately trained
human resources, focus will be given in higher education and in TVET to supply of the
human resources with the knowledge and skills required by manufacturing industries. The
research institutes will be further strengthened to support the productivity of manufacturing
industries. Foreign technical support will be reoriented towards strengthening leadership and
to enhance technology transfer and build capacity of professionals.
With regard to land supply and services, an efficient and effective system will be put in place
to provide serviced land at an affordable price for investment in manufacturing. Serviced
industrial zones will be developed. Industries that produce for the export market and produce
goods that substitute for imports will be especially encouraged through provision of better
access to credit and other incentive mechanisms.
The efficiency of the privatization process will be further strengthened so as to transfer those
state owned enterprises identified to the private investors. Strategies will be put in place to
ensure state owned enterprises operate in a way that minimise inefficiency and improve
profitability. Human and capital resource capacities of domestic investors will be enhanced to
support expansion of industrial and infrastructures development and pave the way for an
increase in competent domestic investors and attracts foreign investors. Other activities will
aim to attract foreign investors to increase their investment in key industries. Performance
identification mechanism will be in place to identify those investors that perform well and are
productive. A mechanism will be put in place to ensure the cross cutting sector issues in the
development plan are integrated in the industry.
5.3. TRADE
5.3.1 Strategic Directions
The trade sector plays a significant role in sustained economic growth in market-oriented
economic system. In the coming five years, raising the efficiency and competitiveness of the
sector, strengthening domestic and foreign investment and trade, eradicating rent seeking
behaviours, establishing a favourable environment for productive investors, promoting a
competitive and efficient domestic trade and distribution system, ensuring consumers’ rights,
strengthening consumer’s cooperatives, and strengthening the transparency, fairness and
accountability of the legal framework for trade activities will be the main strategic directions
of the sector.
5.3.2 Objectives
The main objectives, for the sector are to ensure modern and fair trading practices, to improve
the transparency and fairness of the institutional and organisational framework for trade
operations. Emphasis will also be given to intensifying international trade and improving
domestic marketing systems by strengthening consumers’ cooperatives and supporting access
to viable market opportunities.
5.3.3 Major Targets
Introduce fundamental change to improve trade registration and licensing services: At
all levels of trade administration, a uniform and harmonized system of trade registration and
licensing will be established to international standards. The trade registration and licensing
system will ensure fair and transparent transactions, easy access to services and focus on the
professional efficiency and competency of services provided to the business community.
Support consumers’ rights and security by improving the regulatory framework for
trade: To provide an effective and enabling regulatory framework for trade, appropriate
controls will be put in place that improve the role that the business community plays in
ensuring fair competition and identify solutions to prevent harmful practices.
Increase the benefits accruing to Ethiopia from international systems governing trade
relations and negotiations: The aim is to better integrate Ethiopia into the multilateral
trading system so as to broaden the benefits from market opportunities and increase
investment flows.
Strengthen the marketing system for domestic products: The target aims to increase
production and export diversification; establish an integrated domestic marketing system and
strengthen export development through creation of an integrated marketing system.
Strengthen the capacity of cooperatives: The target will aim to strengthen the institutional
framework and improve the human resource capacities of cooperatives.
5.3.4 Implementation Strategies
Introducing fundamental change in trade registration and licensing services: By revising
the regulations that have been applied to date, a more fair and efficient service will be
established. The trade registration and licensing aspects of the new regulatory framework will
oblige the business community to give accurate information about their business operations.
The information provided will be stored in a digital data base. In addition, criteria governing
professional efficiency will be adopted by the public agencies concerned with trade.
Proclamations and associated regulations will be prepared and enacted that, among other
purposes, provide for the granting of trade permits and facilitation of improved
implementation processes.
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Ensure consumers’ right and security by enhancing trade regulations: Ensuring the
existence of fair trade that affirms the consumer’s right and benefit will contributes to
accelerated economic growth and social development. With this focus, and on the basis of
free market principles, a consistent system will be established to ensure fair and efficient trade
registration and licensing, and healthy and fair competition among the business community.
Where harmful or illegal business practices that damage consumers’ health, or reduce their
safety, government will continue to act in consumers’ interests. To this end, consumers’
associations will be organized and supported logistically, with finance, technical support and
human resource development; the overall aim is to ensure consumers pay a fair price. These
strategies will help to ensure that consumer associations play a positive and beneficial role in
regulating prices. On the other hand, the legal and regulatory framework to minimize conflict
between the business community and consumers will be established and implemented.
Conditions that would facilitate to ensure benefits from trade relations and negotiations:
A key implementation strategy is to integrate the country into the multilateral trading system.
This will be achieved by successfully completing the World Trade Organisation accession
process and strengthening regional trade integration with the Inter-Governmental Authority
on Development, Sana’a Forum, The Common Market for Eastern and Southern Africa
(COMESA) and the COMESA-East African Community-Southern African Development
Community Tripartite. The purpose of these actions is to transform the trade negotiation
process to a higher level of effectiveness. A further task is to, conclude the Economic
Partnership Agreement with European Union. Finally, bilateral trade relations and
negotiations will be improved with all parties where mutual advantages are identified.
Strengthening domestic product marketing system: Implementation activities will focus on
integrating domestic product marketing systems, increasing production and exchange
coverage and strengthening export development. The domestic product marketing system will
be strengthened with the objectives of ensuring fair, transparent, participatory and cost
effective transactions as well as fair prices. Support will be given to promote exports, build
capacity, develop better use of information technology and develop access to finance and
logistics. These activities will be planned and carried out in collaboration with all
stakeholders.
Strengthening and supporting cooperatives’ capacity: The problems of existing
cooperatives, and of establishing new cooperatives, will be thoroughly studied and
conclusions implemented. Cooperatives will be supported with capacity building, information
technology development, access to finance and logistics developments and strengthening of
organisational and man power capacities.
5.4. MINING
5.4.1 Strategic Directions
For the mining sector, the government’s main focus is to create a favourable environment for
private investors for exploration and development of mineral resources. Among other
initiatives, the government will collect, analyse and interpret basic geo-science information
for potential investors. Policies, laws and new regulations that create an institutional
framework conducive for the development of the sector’s contribution to the economy will be
put in place during the plan period. Paramount importance will be given to ensuring this
institutional framework is enabling, encourages competition and takes account of the
international situation and national interests. Increased private investment in exploration and
exploitation of high value minerals will increase the opportunities for finding additional
deposits and the foreign currency earned by the country.
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5.4.2 Objectives
Mineral exploitation holds enormous importance for agriculture, urban development,
industrial development, construction, energy and other economic sectors. The core objectives
for the sector in the plan period include establishing accurate estimates of and utilising the
reserves of minerals that contribute to increased agricultural production through improving
soil productivity. An additional area of focus is land exploration, identification and utilization
to determine water quality and quantity for domestic consumption and irrigation. Exploration
to identify minerals whose exploitation will substitute for imported minerals will be carried
out. For construction and industrial sector inputs, exploration for and exploitation of gold,
platinum, tantalum and high value gemstones and other minerals will be initiated. These
actions will also help increase foreign currency earnings. Exploration and exploitation of
clean and renewable geothermal resources will take place. Substitution of mineral imports by
increasing the volume and types of minerals produced by large and small scale licensed
operators is a key objective. Artisanal miners will be promoted, so as to increase production
significantly, by improving the mining methods and facilitating access to mineral markets.
Specific objectives for geo-science data and mineral exploration are to improve the geo-
science data coverage of the country, provide geo-science data to international standards and
that meets the needs of investors.
5.4.3 Major Targets
The mining sector targets for the plan period are presented in the following table.
Table 26. GTP Targets for the Mining Sector
Increase coverage (of the country) of geological related
mapping and studies as follows
a) Geologi | mapping coverage at a scale of 1250,000 (%)
b) Gravity studies coverage at 1500,000 scale (%)
c) Geochemistry & mineral potential map preparation & anomalous
areas coverage at a scale of 1100,000 (%)
d) Air born geophysics data coverage (%)
e) Geo-hazard studies coverage, at a scale of 1250,000 (%)
000 (%)
2) Detailed hydro-geological studies (km?)
2. Increase evaluated and delineated areas of potential industrial minerals 48 77
exploration, at a scale of 150,000 (%)
3. Conduct metallic minerals exploration, evaluate potential at a scale of 40 63
12000-15000, and raise delineated potential areas (%)
4. Detail coal/oil shale exploration and potential evaluation in central 2 20
Ethiopia, and increase delineated potential areas (%)
5. Conduct petroleum exploration, at a scale of 150,000, in the west 120,000 165,000
Ogaden basin, and increase coverage (km*)
6. Increase pre-deep well drilling geothermal detail study coverage, at a 62 68
scale of 120,000 (%) "
7. Complete the shallow depth 3MW geothermal energy exploration in
95 100
Tendaho (%)
8. Complete a deep well geothermal exploration, of a site in Tendaho 100%
capable of producing 20MW (%)
Continue exploration of 40 MW geothermal energy source for power
12.5 100
supply in Aluto Langano (%)
10. Increase country-wide core drilling (m) 7.000 16.000
11. Increase water well drilling (m) 600 7,500
12. Increase geothermal drilling (m) 10,000 20,000.
13. A beneficiation (crushing and separating ore into valuable substances or waste by a variety of techniques)
test laboratory will be established between 2010/11 - 2013/14, and after trial tests for 5 selected industrial
minerals, a detailed beneficiation test study will be conducted
14. Based on geosciences information collected. a 40 promotional documents will be produced to familiarise
investors with potential sites for mineral exploitation in the country, as a result it will increase from 4 in
2009/10 to 8 in 2014/15
15. Achieve 100% ISO/17025 accreditation for the Geosciences Laboratory during the plan period
The targets to be achieved by the end of the plan period for mineral and petroleum investment
expansion, artisanal mining and marketing promotion, geosciences and energy sector research
and development are presented in the following three tables.
Table 27. GTP Targets for Mineral and Petroleum Investment Expansion
1. __ Increase the volume of mineral investment (mln ETB) 12.7 20
2. Increase revenue from royalties and other licensing (mln ETB) 69 150
3. _ Increase annual revenue from mining tax (mln ETB) 230 250
4. Increase foreign currency earnings from minerals(mIn USD) 108 277.3
5. __ Increase the production of gold (Kgs) 3,907 8,700
6. Increase the production of tantalum (tons) 202 300
7. _ Increase exports of marble (m*) 99.34 140
8. Increase investment in the petroleum sector (mln USD) 238 538.7
9. Increase total number licenses issued to petroleum exploitation sector 22 29
10. Increase number of international extractive industry transparency 10 310
initiatives member companies
11. Realise exports of 20 min litres of mineral water.
12. Realise exports of 1 mln metric tons of potash.
13. Realise foreign currency earnings of USD 1.36 bin from minerals and resources such as base metals and
mineral water.
14, Make ready the Calub and Hilala gas fields for development.
15. Enable 300,000 km? of land to be categorised as petroleum provinces by obtaining geological and
geophysical data from the existing international companies involved in exploration.
Table 28. GTP Targets for Artisanal Mining and Marketing Promotion
1. Increase gold purchased by the National Bank of Ethiopia (Kgs) 2.866 5.250
2. Increase exports of gemstones Kgs) 3,100 4,000,
3. Increase the quantity of tantalum marketed (ton) 63 90
4. Increase the number of mining co-operative associations 243 350,
GTP mam for Geosciences and Energy Sector Research and Development
1. Identify, select and support about eight need based and problem solving research proposals of graduate
students.
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2. Establish a national inventory and development database for scientific instruments and laboratories in
geosciences and energy.
3. Develop integrated geo-scientific applications and initiate a study of appropriate renewable energy sources
for the sustainable development of Addis Ababa and its surrounding areas.
4. Develop integrated geo-scientific applications and initiate a study of appropriate renewable energy sources
for the sustainable development of Dire Dawa
5. Build increased capacity in scientific instruments research and laboratory facilities that support the sector
where they are needed but not available.
5.4.4 Implementation Strategies
Enhancing of Geo-Science Data Coverage and Quality: In this regard, the plan is to
improve the coverage of geo-science data required for development of minerals essential for
agriculture, construction, energy, manufacturing and development of precious metals. In order
to improve the quality of data investments will be carried out in the organizational,
technological capability, standardization and human resource development.
Mineral and Petroleum Investment Expansion: Specific implementation strategies for the
expansion of mineral and petroleum investment include encouraging private investment in
development of the sector. This will be achieved by improving the existing mining laws to
make them more attractive to potential investors, studying national and international minerals
markets and providing advice to private investors where higher market demand is identified.
Improvements in the coverage and quality of data for mineral and petroleum development are
expected to enhance investment in the sector. More importantly, investments in mining and
petroleum exploration and development will be guided by a comprehensive regulatory and
policy framework that ensure transparency and accountability.
Undertake Artisanal Mining and Marketing Promotion: During the PASDEP five year
period, the Ministry of Mines in collaboration with stakeholders, tried to promote artisanal
mining and regulate illegal miners and smugglers by introducing new proclamations and
directives covering exploitation of precious minerals. Nonetheless, there are still a few miners
and smugglers involved in illegal mining and export of precious minerals. Their activities
have serious negative social, economical, environmental and political impacts, particularly in
the areas where they operate. The government is strongly committed to establishing a working
environment conducive for artisanal mining and marketing promotion. As part of this
commitment, a new proclamation No. 651/2001, which aims to reduce illegal mining, is
currently being implemented. To achieve this, and to promote mineral resource development
overall, the government will, in collaboration with all stakeholders, use the experience it gains
during implementation, and follow up on its regulatory and promotional strategies for the
sector. Skill development, technical support and marketing supports will be accorded to
artisanal miners. Women are encouraged and specially supported to participate and
accordingly benefit from the sector.
Undertake Geosciences and Energy Sector Research and Development: Implementing
strategies for the geosciences and energy sector research and development support the
mandate of the Ministry of Mines to establish needs-based research, training institutes and
centres of excellence. With this in mind, the Ministry will undertake a research and
development program across a broad range of geosciences and energy areas, to introduce
cutting edge and appropriate technologies as well as new methods.
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5.5 INFRASTRUCTURE DEVELOPMENT
Provision of affordable physical and economic infrastructure, such as_ transportation,
communication and energy makes a crucial contribution to economic growth, employment
creation, social welfare and the expansion of the industrial sector. In the years prior to the
GTP, a massive capital investment was made to expand infrastructure services. However,
significant challenges have hindered faster pace of infrastructure development. In addition to
the high investment required, the foreign exchange needs have constrained the provision of
infrastructure to the extent desired. Inadequate domestic human and organizational capacity
for infrastructure development has led to a dependency on foreign capacity, which has in turn
undermined the pace and coverage of infrastructure delivery
In the GTP period, very large investments will be made to further expand infrastructure
services, to strengthen the foundation for long-term sustained growth and development, and in
doing so, the challenges encountered during the PASDEP implementation will be addressed
and resolved. To date financing for capital investment has come from Treasury and Official
Development Assistance sources. To increase the financial resources available, emphasis will
be given to improving the level of domestic savings and foreign exchange savings through
promoting import substitution of imported materials and construction services with domestic
products and services. Nevertheless, it is envisaged that domestic resources will still not be
adequate to fully finance the infrastructure programs of the GTP. Import substitution of
materials and construction services will help, but is not expected to fully address the foreign
exchange constraints. Thus, the mobilization of external official development assistance will
be important in this regard.
5.5.1 Roads
Strategic Directions
Expansion of the road network is critical to the development of other key economic and social
sectors such as agriculture, industry, mining, tourism, education and health. Planning of road
infrastructure must be integrated with the objectives, strategies and programs of these sectors.
The success of development strategies of sectors depends on the efficiency of the transport
sector in general and of the road sub-sector in particular. For these reasons, due emphasis has
been given to the development of the road sector in the GTP. The government has recognized
the importance of road transport in development of the national economic and social activities
and hence attaches a high priority to improving the road infrastructure, as is reflected in the
Road Sector Development Program which was launched in 1997.
Objectives
Objectives of the Road Sector Development Program are to expand the road network so as to
improve access to rural areas, improve the quantity and quality of the road network overall,
and develop the organisational capacity of the responsible road agencies for effective
management of road networks. Based on these objectives, road sector policy and strategies in
the next five years are directed towards increasing effectiveness of all ongoing road sector
development initiatives, improving the rural road network and connecting more or less all
kebeles to all weather roads.
Major targets
Based on the Ethiopian Roads Authority prioritization criteria, the Road Sector Development
Program consists of the following federal road targets: rehabilitation of 728 kilometer of
trunk roads, upgrading of 5023 kilometer of trunk and link roads, construction of 4331
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kilometer of new link roads, heavy maintenance of 4700 kilometer of asphalt and gravel roads
and routine maintenance of 84649 kilometer of road network.
In universal rural access program also construction of 11212 kilometer of new rural roads by
Regional Road Authorities and construction of 71523 kilometer of woreda roads by woreda
road offices will be undertaken. The government has envisioned connecting more or less all
kebels to the nearby all-weather roads as well as interweaving every major city by increasing
investment in road infrastructure.
A summary of major road sector targets for each year of the five-year period are presented in
the table below.
Table 29. GTP Targets for the Roads Sub-Sector by Budget Year
1. Federal and regional total road length( km) 48.800 51.636 54.818 58.211 61.771 64522
2. Length of Woredas all-weather road ( km) 0 9,568 24,299 40,044 55,790 71,522
3. Kebeles connected to all-weather roads (%) 39 48 63 78 93 100
4. Average Time taken to reach nearest all- 37 3.0 23 19 16 4
weather road (hrs)
5. Area further than 5km from all-weather 64.1 373 48.7 40.9 34.3 29.0
roads (%)
6. Area further than 2km from all-weather 83.7 80.0 75.0 70.0 65.2 61.0
roads (%)
7. Road density (Km/1,000km?*) 44.5 55.6 719 89.3 106.9 123.7
Road density (Km/1.000 population) 0.64 0.78 0.98 1.18 1.37 1.54
9. Roads in acceptable (Fair + Good)
Condition (%) 81 81.3 83.0 84.6 85.9 86.7
10. Number of Project operated/carry out by 5g éi és BF 40 -
domestic contractors (%)
11. Average vehicle Km of travel (min km) 9.6 10.1 10.6 1.1 1157: 12.3
Implementation Strategy
The implementation strategy focuses on restructuring of the implementing agency, capacity
development in the road sector, financing and safety measures. Accordingly the regulatory
and operational arms of national road management will be split into independent
organisations. In addition the institutional framework and organisational capacity of the
regional road agencies and woreda road bureaus will be strengthened, by, among other means,
human resource development, strengthening integrated road network planning, and improving
the effectiveness of road maintenance. Other implementation strategies include actions to
increase revenues of the road fund office, build the capacity of local contractors and
consultants, introduce and expand use of intermediate equipment technology in road
construction, improve equipment maintenance services, use alternative road project facilities,
utilize labour-based and labour intensive approaches and technologies, and improve
enforcement of axle load regulation. Lastly, improved environmental management systems
and HIV/AIDS activities will be mainstreamed in all road projects.
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5.5.2 Railway Transport
Strategic Directions
Railway transport is a cost effective and time efficient means of carrying bulk inputs and
produce. Given the rapid economic growth in the country therefore construction of a national
railway network has become an important task. To support this strategic direction, the
capacity of domestic small and medium metal manufacturing and engineering industries to
produce sleepers, locomotives and rail spare parts and inputs for the railway network
infrastructure construction, will be promoted.
Taking into account the economic advantages of railway transport, in the long term, it is
planned to expand the network so as to connect the country with neighbouring countries and
different ports. To realize this long term strategic direction, in the short term, government will
mobilise and build local capacity (to provide services as well as human resources) to expand
the railway network, while also developing partnerships with foreign actors. Key challenges
in the expansion and development of the railway network refer to the enormous initial
investment, the human and other resource capacity and specialised experience in railway
development required. Strategies will therefore be developed and implemented in order to
mobilize domestic and foreign financial resources as well as build human and organizational
capacity domestically. During the plan period, due emphasis will also be given to the efficient
and effective administration of the network and rail services.
Objectives
The objectives for the sub-sector are to build a nationwide railway infrastructure network,
develop, and continuously improve local capacities of civil engineering construction
companies and metal and electro-mechanical industries, and maximise technological transfer
useful to the sub-sector. Integrated within these objectives will, in most cases, be strategies to
ensure that development of railway infrastructure is operationally sustainable.
Major targets
The main targets for the railway sub-sector during the plan period are presented in the
following table.
Table 30. GTP Targets for the Railway Transport Sub-Sector
1. Construction of a total of 2.395 km of national railway network, out of which about 1807.9 km will be
completed (Addis Ababa-DireDawa-Dewele 656 km: Awash-Woldiya-Mekele 556.2 km: Woldiya-
Semera-Galafi 256.4km and Addis Ababa-Ejaji-Jimma-Bedele 339.3 km). while efforts will be exerted to
construct the remaining 587.1 km of network ( Mojo-Konso-Weyto).
2. Construction of 34 km of light railway network along two corridors (from east to west and north to south)
providing the capital city Addis Ababa with a mass transit system. This initiative will involve40-50
companies working on design and construction of network and more than 20 manufacturing companies
producing spare parts and providing metal engineering and electro-mechanical services
Implementing Strategies
To achieve the targets set for the railway sub-sector the key strategy concerns development of
local capacities in the railway network development processes. This strategy will include
specific help for local metal manufacturing and electro-mechanical companies to produce
materials for railway network development. A conducive policy and regulatory environment
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will be created for the participation of private sector in the sub sector. A public/private
partnership framework and system will be designed for the sub-sector. Adoption of different
rail design, construction and management methods is a further strategy, as is implementation
of study findings on railway network construction, service delivery and security. The
government will adopt approaches and mechanisms that maximise use of the abundant labour
available for the construction of the railway network and will create an environment
conducive for the establishment of local train maintenance companies.
5.5.3 Energy
Strategic Directions
The strategic directions during the GTP period are development of renewal energy, expansion
of energy infrastructure, and creation of an institutional capacity that can effectively and
efficiently manage such energy sources and infrastructure. During the GTP period, the gap
between the demand for and supply of electricity will be minimised. Per capita consumption
of electricity of households is expected to increase during the GTP period. Moreover it is
planned to produce sufficient electricity for export. The electric power supply coverage will
be increased through the ongoing rural electrification access program. Government will
ensure a cost effective, high quality supply of energy, as well as energy efficiency and
conservation. The regulatory framework will be effectively enforced.
In order to promote and realize the country’s Green Development Strategy, ongoing initiatives
to generate electricity from hydro power and other renewable energy sources like bio fuels,
solar and wind will remain the strategic directions during the GTP period. In addition new
technological innovations will be utilized to ensure that the energy sub-sector’s doesn’t emit
additional carbon-dioxide. To promote and sustain rural alternative energy development
activities, efforts will be made to enhance the capacity and knowledge in this regard of
regions, producers and consumers. The distribution of wood saving materials and
technologies throughout the country will be continued.
Objectives
The major objectives for the energy sub-sector are to meet the demand for energy in the
country by providing sufficient and reliable power supply that meets international standards at
all times. This objective will be achieved by accelerating and completing the construction of
new hydropower electric generation projects, and strengthening the existing transmission lines
to provide improved access to rural villages all over the country. An additional objective is to
export power to the neighbouring countries. Modernizing the distribution system will also be
considered, so as to reduce power losses to international benchmark levels. Development of
alternative energy from renewable sources such as wind, solar biomass, etc will be integrated
with the country’s Green Development Strategy. During the plan period an objective is set
also to transform the national capacity in developing and managing energy by radically
reforming the national power company such that the electric power supply services reach
international standard.
Major targets
The targets for the energy sub-sector during the plan period are presented in the following
table.
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Table 31. GTP Targets for the Energy Sub-Sector
Hydroelectric power generating capacity (MW) 2,000 f 10,000
2. Total length of distribution lines (Km) 126,038 258,000
3. Total length of rehabilitated distribution lines (Km) 450 8,130
4. Reduce power wastage (%) 11.5 5.6
5. Number of consumers with access to electricity 2.000.000 4,000,000
6. Coverage of electricity services (%) 4l 75
7. Total underground power distribution system (Km) 97 150
Implementing strategies
The key implementation strategy is capacity building in energy development and
management. Thus the national electricity company will go through radical reform such that
the national institutional capacity to generate power, construct the infrastructure and
efficiently and effectively manage the power and infrastructure shows fundamental
improvement. Other implementing strategies that will be employed to achieve the above
objectives and targets for the energy sub-sector are strengthening organisational
implementation, capacity (the electric power company go through a complete restructuring
process), increasing development of electric power generation and access to services,
strengthening regulation of electricity providers so as to ensure a reliable service, expanding
alternative renewable energy production, increasing emergency oil reserves and ensuring
protection of natural resources, and enhancing community development. Gender and
HIV/AIDS issues will be mainstreamed in all energy sector activities.
Electric Power Generation Construction Program: Ethiopia has a potential to generate
45,000 MW of hydroelectric power. However, currently only 2000 MW is generated. It is
planned to increase this level of power generated by four times. Implementation strategies are
to promote a mix of energy sources by developing renewable wind and geothermal resources,
prevent power loss and promote proper utilization of energy, reduce unit cost of power
generation investments and operations, and provide electricity at affordable prices.
Electricity transmission lines construction: To ensure a reliable electricity supply and
transmit the electric power efficiently and economically to consumers, construction of a
reliable distribution and transmission networks is essential. To this end, due emphasis will be
given in the Universal Electrification Access Program to construct new transmission lines and
connect them to the national grid as economically as possible and to reduce power losses.
Further implementation strategies are to minimize the cost of construction of transmission
lines, improve control of power sources and construct additional transmission substations so
as to achieve efficient power distribution.
The Power Distribution and Expansion Program will adopt implementation strategies to
modernise the power distribution system with the aim of increasing service delivery
efficiency, cost saving and reduction of power losses in the distribution system. Action will be
taken to ensure availability of efficient, reliable, high quality and economical electricity
services to consumers, improve power supply service quality, provide outreach facilities to
new customers, and to reduce power interruptions and losses by expanding the network and
maintaining distribution lines.
The Universal Electrification Access Program will adopt implementation strategies that
provide access to electricity for rural towns and villages, commercial agricultural production,
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and irrigation pumping. The program will be executed in close collaboration with, and ensure
participation of, local contractors and manufacturers, technical and vocational school
graduates, and other stakeholders. Electricity is an essential part of the rural transformation
agenda because it is an important input for businesses and productive enterprises in small to
medium sized towns and as an input for agriculture, irrigation pumping, commercial
agricultural production and processing. Equitable distribution of services to the rural
economy, agricultural and other sectors development has a beneficial effect nationally.
The national regulatory system to ensure conservation of electricity and energy
efficiency: Implementation strategies will seek to meet increasing demand for energy by
encouraging private investors and government electric utilities engaged in the sector. Actions
taken to support this strategy include licensing applicants and granting certificates of
competence to potential energy producers. A further approach is to ensure that reasonable
tariff structures that are affordable are applied. Energy audit activities will involve
establishment of energy efficiency management sections for selected consumers, particularly
high energy consuming organisations.
A study of requests for annual tariff revision by developers will be carried out with the aim of
establishing an economical and fair for electricity services, while at the same time
encouraging investments and its recommendations implemented following agreement and
endorsement by the responsible authorities. Energy conservation and mitigation of energy
losses will be pursued for each economic sector. The measures to be taken will identify the
most efficient energy consumption technologies, establish performance standards, implement
and conduct regular inspection activities on electric utilities, prepare reports and taking the
corrective measures necessary.
Bio-fuel development: Ethiopia’s emissions of CO are very low compared to developed
countries. Nonetheless, access to a range of reliable, affordable and clean energy sources is
critical for sustainable growth. One of the potential means to realize the shift to more
sustainable fuels is the production of bio-fuels and other renewable energy sources, as a part
of Ethiopia’s green development strategy. As stated in the bio-fuel development strategy,
Ethiopia has suitable land for bio-fuel (bio-ethanol and bio-diesel) development.
Implementing a bio-fuel development initiative, in line with country’s Green Development
Strategy, will enable bio fuels to substitute for imported petroleum fuel and even sufficient for
export. Moreover, jobs will be created locally at different stages of bio-fuel production
process and thus contribute to raising living standards. Action will be taken to expand bio-fuel
plantations, introduce use of bio-fuel in households for cooking and lighting, standardize and
refine information relating to land, technologies and markets for bio fuel development, and
promote knowledge about bio fuel use in each region. Benefits of this initiative include,
improvement of the country’s carbon sink, reduction in deforestation, and reduction in the
time spent on and burden to women and children in searching for firewood. Steps will be
taken to involve investors and other stakeholders in bio fuel development processes.
The Bio-fuel Development Program will implement strategies during the plan period to create
a network of implementing agencies, research institutes and universities to adapt and promote
sustainable development of bio-fuel technology. The network will collect and organize data
on bio-fuel land, technologies and markets, coordinate involvement of relevant stakeholders,
support and motivate private investors’ involvement in the bio-fuel development activities,
involve farmers in production and supply of bio-diesel by co-coordinating the work of
relevant extension services, and facilitate experience sharing with countries where bio-fuel
development is at more advanced stage of development.
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Alternative energy development and promotion will develop energy resources and
technology by adoption, adaptation or innovation of new designs. This strategy aims to
produce prototypes and test the efficiency of energy sources and technologies based on
consumer demand. Other alternative energy development and promotion initiatives are to
work closely on energy resource identification and technologies with government agencies,
NGOs and private companies and provide training for the business sector including
manufacturers. Awareness within communities will be created and promoted. Demand for
alternative energy technologies will be improved and loans arranged for manufacturers and
consumers to install alternative technologies.
Although, Ethiopia is endowed with a variety of energy resources, many of these resources
have not yet been exploited. A study of efficient alternative energy resources and usages, and
the means to encourage their development will be carried out. Attention will be given in the
study to environment protection and conservation. The study will involve collaboration
between government, regional states, private sector and other stakeholders. Application of
improved alternative energy technologies will help minimize deforestation, reduce indoor air
pollution that results in health problems and save the time women and children spend
searching, collecting & transporting fuel wood. As a result, families will have more time for
other productive work. By building the capacity for regional implementation agents and other
stakeholders’ alternative energy technologies and resources will become more widely
available to users, increase sustainable energy use and benefit communities.
Capacity building: The on-going program to strengthen the technical and vocational skills of
school graduates, and of manufacturing industries relevant to the energy sub-sector, so as to
build own capacity and reduce foreign currency needs, will be continued.
Strategic petroleum reserve facility development and operation: Being a petroleum
importing country, the reliable and consistent supply of petroleum is essential for
development of the Ethiopia’s economy. It is a strategic necessity for all oil importing
countries to secure their access to oil; it must be available continuously and it present and
future supply must be secured. A number of facilities have been constructed made operational
in previous years. Currently Ethiopia’s strategic petroleum reserve capacity is 369,800m>,
which is about a two months supply. During the GTP period, development of the strategic
petroleum reserve facility will cover all areas associated with development and operations.
These include: the construction of storage capacity, maintenance of facilities for the storage of
petroleum, oil acquisition and transfer to storage and operational readiness activities such as
distribution of the stock to local commercial distribution systems.
The current strategic petroleum reserve storage capacity will be increased from 369,800m? to
429,000m3 which provides for 45 days consumption. The current strategic petroleum reserve
stock of 87000m? will be increased to 429,000m> which, as stated above, covers 45 days
consumption. Strategic petroleum reserve facilities will be maintained and the operational
readiness of the strategic petroleum reserve ensured. The implementation strategies adopted
for the strategic petroleum reserve facility include increasing the size of strategic petroleum
reserve storage capacity, increasing the size of strategic petroleum reserve stock, and
maintaining the strategic petroleum reserve facilities and the operational readiness capability.
Petroleum downstream operations standards & specifications regulatory program:
Ethiopia has been importing crude petroleum oil for many years. Previously, there was no
official governmental agency with the responsibility regulate and manage petroleum
downstream operations standards & specifications and provide transparent standards,
specifications and management. As a result the country has lost large quantities of foreign
currency and petroleum products, and as a consequence suffered contamination and
4
environmental degradation. Inspection of petroleum downstream usage is a new area for
regulation and control. It is intended to raise regulation and control to the international level,
and provide effective monitoring and sufficient inspection capability. Serious attention will be
given to the addressed and resolve the problems, build, extend and provide an efficient
petroleum products supply and utilization system.
The implementation strategies include the preparation of directives, regulations, and technical
standards for the inspection and monitoring of petroleum downstream services, so that all the
downstream bodies are covered by an integrated law and regulation detailing standards and
specifications. The regulatory framework will ensure the quality and reliability of the services
provided by petroleum downstream operators. Petroleum products distributer will be
inspected to ensure petrol depots, transportation and distribution facilities, including their
construction and performance, fulfil international standards. Systems will be put in place to
ensure that petroleum products, facilities, storage, transportation and distribution meet proper
industry standards.
5.5.4 Telecommunication
Strategic Directions
The strategic directions here are to ensure that the information and communication
infrastructure already in place is effectively utilized such that it provides higher qualities of
information and communication services. In order to effectively utilize the infrastructure and
deliver higher quality services at competitive prices the telecom company will undergo radical
institutional reform such that its institutional capacity shows fundamental changes. In
addition, ensuring a secure IT system will be a strategic direction of the GTP, while
development of the domestic ICT sector will also be accorded due emphasis.
Areas of focus for the telecommunications sub-sector are to upgrade the existing ICT network
to accommodate the latest information technologies and improve network quality and expand
services. An all inclusive telecommunication service delivery and ICT support where it is a
requirement of other development programs will be put in place. The human resource
capacity of the sector will be built. Ongoing projects to develop the network will be finalized.
IT services available across the country, including high quality integrated telecommunication
services packages (converged value added services), will be provided, at a reasonable price.
Fixed line and mobile telephone service provision will be expanded nationwide. To
accommodate the latest information communication technologies, all telecommunication
infrastructures will be digitized. The internet service expansion program will benefit city
governments, woreda cities, academic institutions, including high schools and universities,
research institutes, social organizations and the private sector. The ongoing network
expansion program will be strengthened by building a high capacity fibre optic transmission
line and linking it through neighbouring countries to international marine cables. This
initiative will provide the country’s global digital gateway.
The ongoing comprehensive Universal Telecommunication Access Program will be expanded
and extended to include additional social services apart from its existing calling service. This
will enhance the Program’s role in the implementation of development strategies and plans of
other sectors. Telecom centres will be built and those already operational in rural areas will
expand their services and be better integrated with ICT and other programs. Developing and
expanding human resources, especially for regulatory tasks in the fast advancing and growing
sector, is very important and has been given due attention during the plan period. It is also
important to ensure that the telecommunication service is up to international standards and
a
where telecom resources are limited (for instance national frequency spectrum, telephone
numbers, numbers and internet provider addresses) that they are used fairly and economically.
A further focus is to ensure the security of the telecommunication service by combating
illegal use of the network and transmissions of illicit content.
Objectives
The key objectives are to ensure a competitive (in terms of prices and quality) and secure
telecom services, and build a far reaching national capacity in telecom development and
management. Emphasis is on finalizing the construction of the on going network
infrastructure and applications to expand services. A need based network may also be
expanded. The rural universal telecommunication access program will be expanded and the
quality of fixed line, mobile phone, internet and data service provision improved and
maintained. An environment conducive to use of the latest telecommunication technologies
will be created. A fair and economical utilization of national frequency spectrum,
telecommunication numbers and internet provider addresses is ensured Illegal
telecommunication activities will be prevented
Major Targets
The targets to be achieved by the telecommunications sub-sector are presented in the
following table.
Table 32. GTP Targets for the Telecommunications Sub-Sector
1, Number of fixed line telephone subscribers (mln.) 1 3.05
2. Fixed line telephone density (%) 1.36 3.4
3. Number of mobile telephone subscribers (mln) 6.52 40
4. Mobile telephone coverage (%) 8.7 45
5. Number of internet service subscribers (min) 0.187 3.69
6. Rural telecom access within 5 km radius of services (%) 62.14 100
7. Wireless telecom service coverage (%) <50 90
8. Global link capacity (Gb/s) 3.255 20
Implementing Strategies
Three key implementation strategies are identified. First, the national telecom company will
be reformed such that it is transformed to have an institutional capacity that delivers high
quality and competitive services. The telecommunications provider will be fundamentally
upgraded to meet international standards using the services of reputable foreign companies.
The second strategy concerns the establishment and effective enforcement of comprehensive
policy and regulatory frameworks to prevent and control illegal activities in the industry. An
effective mechanism for control and prevention of illegal telecommunication activities will be
put in place to ensure telecommunications security. Finally, all initiatives in the industry will
be designed and executed such that they promote the domestic production ICT goods (inputs,
components, etc.) and domestic delivery of ICT services during the GTP period.
A human resource capacity building program will be designed and implemented. Steps will be
taken to put in place better quality fixed line, mobile and internet services.
Telecommunication sub sector implementation strategies include design and implementation
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of systems to prevent integrated system failure, and ensure its maintenance and improvement,
measure network flow and quality, and customer compliance. The telecom service quality,
network capacity and frequency spectrum utilization and control will be strengthened.
Monitoring of rural kebeles’ telecommunication services will be increased and an
administrative assistance strategy provided and disseminated. The quality and traffic capacity
of service on international lines will be improved. A strategy to raise additional funding
resources for the sector will be developed. A strategy for capturing more customers via
outsourcing, marketing and business will be designed and implemented.
5.5.5 Potable Water Supply and Irrigation Development
Strategic Directions
Priorities for water resources management will support overall GTP objectives for integrated
and sustainable development. Sub sector specific priorities are to improve utilization of water
resources by interconnecting different sectors and users, ensure fair and equitable utilization
of water resources taking into consideration existing demand and future generations’ needs.
The impacts of runoff, drought and other natural hazards will be mitigated.
An integrated approach will be taken to water resources development and utilization that
gives due consideration to its security and safety as a resource on the one hand, while also
considering fully the parallel needs of resource usage such as water supply, development of
irrigation, river basin administration, watershed management and related activities. An
integrated approach to water resources management will take into account complementary
natural resources and sectors such as agriculture, health, mining and energy, etc. Attention
will be given to the contribution the water sub sector must make to achievement of MDG
targets. Development initiatives will include water supply, irrigation and drainage
development, a hydropower study and design, a surface and ground water study, an integrated
master plan study and watershed management.
Objectives
The development objectives, during the GTP period, are to develop and utilize water
resources to fulfil social and economic priorities, sustainably and equitably, by increasing
water supply coverage, and developing irrigation schemes that ensure food security.
Major Targets
To meet the above objectives, during the GTP five year period, the following targets have
been set for potable water supply and irrigation development during the plan period (and for
each budget year, in the case of potable water supply).
Table 33. GTP Targets for Potable Water Supply and Irrigation Development
1. Urban potable water supply coverage within 0.5 km radius (%) 91.5 100
2. Rural potable water supply coverage within 1.5 km radius (%) 65.8 98
3. National water supply coverage (%) 68.5 98.5
4. Reduce non functional rural water supply schemes (%) 20 10
5. Irrigation Feasibility and design (ha) 462.114 1,208,448
6. _ Irrigation Construction (ha) 127.242.6 785.582.6
7. Irrigation Rehabilitation (ha) - 6.570
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8. Pre-feasibility study on multipurpose hydropower projects aay asad
(MW)
9: Feasibility and detailed design on multipurpose hydropower 1431 8,398.4
projects (MW)
10. Increase the ground water information and knowledge (at 5 _
150,000 scale) mapping coverage (%) :
11. Increase coverage of national surface hydrology stations (%) 85.6 90
12. Increased integrated river basin management master plan (%) 25 63
13. Rehabilitate degraded and damaged land (ha) 1,000,000
14. Upgrade information provided at the surface hydrology stations to international standard
It is also estimated that, nationally, a potential of 5.1 mln ha of land can be developed through
various irrigation methods including, pump, gravity, pressure, underground water, water
harvesting and other mechanisms. Based on this estimate of potential, irrigation development
activities, particularly small scale irrigation will be given priority in the plan period.
Implementation Strategies
The implementation strategies for potable water supply are to ensure a dependable and
sustainable water supply based on demand and efficiency measures. Sustainable and feasible
technologies will be implemented to improve the rural water supply coverage. Active
management and operational mechanisms of existing water facilities will be ensured. Water
economy measures will be developed and implemented for existing water schemes and,
before they are constructed for new schemes. Additional implementation strategies will aim to
satisfy water demand at the household level while taking account of the country's capacity.
This strategy will use criteria based on socio-economic criteria to assure consumers of an
equitable and efficient distribution, and utilization of the water in excess of the basic demand.
A strategy will be pursued to prioritize low cost schemes and projects that will be
implemented through loans, implement measures such as cost recovery in urban water supply,
and build capacity at all levels of water resources management.
The implementation strategies for irrigation and integrated water resources management are,
development of new irrigation schemes, construction shallow and deep wells for irrigation in
areas rich in ground water, facilitating conditions for medium and large scale irrigation
development (building dams and related infrastructure), implementation technologies and
mechanisms that improve efficient water use in medium and large scale irrigation schemes,
and establishing and integrating meteorology and hydrology services at all levels (from
federal to district or woreda). Local resources, skills and knowledge in water resource
identification and utilization will be enhanced, studies and research into traditional and
alternative low cost technologies will be conducted, and appropriate technologies developed.
5.5.6 Transport Services
Strategic Directions
Other than development of road transportation infrastructure, strategic directions that will be
pursued will include increasing the effectiveness of the transport system so that the cost of
transportation decreases. The private sector’s capacity and role in service provision will be
increased. The sub sector will be restructured and be operationally improved so that
transportation services are more flexible, competent and provide overall a more efficient
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service. The time rural people spend travelling will be reduced by providing all weather roads,
thus giving them more time to spend on productive activities.
Increasing economic activities in Addis Ababa, Dire Dawa and the main regional cities
demand expansion of urban transportation systems. This in turn requires development of
better transport systems and services, and mass transport infrastructure. Development of urban
transportation systems will be based on efficient urban land utilization and development
planning as well as analysis of existing and future traffic density patterns. One of the key
challenges for urban transportation is an implementation capacity gap and, for this reason,
emphasis will be given to build the appropriate human resource and administrative capacity.
Considering the relatively low vehicle density in the country, the number of traffic accidents
is very high. Preventing and reducing traffic accidents and the resulting loss of human life and
property, is imperative and timely. Accordingly, an integrated traffic security and modern
traffic management system, supported by information technology, will be developed and
implemented in all regions.
Objectives
A main objective of the transportation sub-sector is to ensure that the public transport system
is efficient and affordable so that the travel time of particularly the rural populations is
reduced and they have more time for productive activities. A second main objective is that the
urban transport system is efficient, secured and well integrated. A further objective is to build
the effectiveness of regulatory bodies by putting in place an improved legal and regulatory
framework. An effective institutional framework will help to ensure private transport service
providers are competent and provide proper standards of service. The human resource
capacity for better management and service delivery will be developed. A national data base
for freight and public transport will be created that will reduce the time processing
administrative requirements and the costs of freight transport.
Major Targets
For the GTP period, the following targets have been set for the transport services sub sector.
Table 34. GTP Targets for the Transport Services Sub Sector
ncrease the available seat km (bln) BE 32
2. Total distance covered by buses ( km) 70,000 100,000
3. Daily motorized transport supply of Addis Ababa City aR 5008360
(passengers’ seats)
4. Public transport supply coverage (%) 14 48
5. Waiting time for public transport in A.A (minutes) 45 15
6. The average annual freight distance covered (km) 80.000 120.000
7. Traffic accident death rate (per 10, 000 people) 70 27
In addition, increase the available national freight transport carrying capacity to a total of 1.4
trillion ton/km, build 22 drivers’ competence certification training centres (traffic complexes)
covering all regions, reduce processing time by 20% by improving administration of the
freight transport logistics system, and ensure that all rural kebeles have access to Medium
Transportation Service (IMT), Starting from 2010/11 all vehicles will be required to have
third party automotive accident insurance.
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Implementing Strategies
To achieve the above objectives and targets for the transport services sub-sector, world-class
regulatory and service delivery systems will be introduced. National logistics coordination
excellence and information centres will be built, while specialized human resource
development in road transport will also be given attention. A rural transportation expansion
package will be design and implemented. An incentive structure for stakeholders who
participate in the sub-sector will be created. Improvements will be made to traffic
management. An organisational system for control and integration of public transport
associations will be developed; it will include a system for commercial companies to
encourage them to import new automotives and to address the needs of those who need
special assistance. A modern traffic flow operations centre with the latest information
technology will be built. A road safety council will be constituted, operational at federal,
regional and local levels, to initiate and coordinate road safety projects and programs and
build a national road transportation data base.
5.5.7 Maritime Transport
Strategic Directions
A key focus area during the GTP period is to enhance the capacity of the sub-sector for
efficient service delivery by building a maritime transport system that will reduce the time
spent, cost of transit logistics and processing of imports and exports. To this end, a multi
modal maritime and sea transportation service delivery system will be put in place. Dry port
capacity will be enhanced and consolidated while taking into account the point of departure
for, and destination of, goods. In addition, to further facilitate the import-export trade and
speed up transiting of goods, the transit time of goods at sea ports will be reduced. The
number of control and weighing stations will be reduced and the management of vehicle
utilization in the corridors increased in order to increase the frequency of vehicle travel and
reduce transportation time. To provide an efficient and good quality service, the safety of
import-export transportation corridors will be assured. A logistics system that is supported by
modern technologies will be developed.
Objectives
In the GTP period the dry port infrastructure in the country will be expanded and enhanced.
Import-export business operations will be facilitated by realising the mutual economic
benefits that can be gained through partnership with neighbouring countries and improved
utilization of transit corridors, to reduce the time and cost of logistics in import-export trade.
The national shipping line’s carrying capacity will be enhanced. To support the freight
transport service within the country, the local water transportation service will be improved.
Major Targets
The GTP targets set for the maritime transport sub sector are presented in the following table.
Table 35. GTP Targets for the Maritime Transport Sub Sector
1. Increase general cargo imports carried by the multi modal
em (% 2 80
transport system (%)
2. Reduce transit time for import and export goods (days) 30 20
80.
3. Available seat kilo meter in local water transportation (min 09 14
ton) . ?
4. Reduce transit time for imparts and exports (days) 30 20
5. Export cargo transported by the newly improved system (%) 90
6. Achieve a sea port utilization for Djibouti, Berbera and Port Sudan, respectively (%) 60/30/10
7. Increase the capacity of Mojo and Semera dry ports (for general cargo, excluding
ee 100
unpacked and liquid cargo) (%)
8. No. of loading stations to be built all over the country during the plan period 35
9. Fuel transported by Ethiopian ships (bin tons) 3.6
Implementation Strategies
To achieve the above targets for the maritime transport sub sector during the plan period the
multi modal system will need to be fully implemented, while the capacity of dry ports
infrastructure facilities have to be enhanced. Partnership and collaboration with the
neighbouring countries is another important strategy for effective sea port utilization and
regional integration. Improving the containerization system is considered as one of the
strategies for improving the sea transport and maritime services. The control systems at
transport corridor custom checks will be improved. The freight transport and logistics
program will be implemented. A local water transport utilization strategy will be developed
and implemented, and related human resource capacity strengthened.
5.5.8 Air Transportation Services
Strategic Directions
The major focus for air transportation services is on further strengthening the competitiveness
of air transport and expanding passenger and cargo transport services by creating new
international destinations. Domestic air transportation service delivery will be expanded such
that it supports the development of tourism activities in the country.
Standardized cargo terminal and cooling systems at different airports will be built to facilitate
the import and export trade of horticulture, meat and perishable commodities. The capacity of
the air cargo system will be improved in order to enhance quality and affordability of the
service. In addition, the ongoing construction of airports, at different locations of the country
will be completed: and their operational and technical standards brought up to required levels
so that they deliver services at international standards. Lastly, an important focus will be to
improve overall the capacities of the air transport system (of airplanes’ carrying capacity,
pilots, other professionals, airports and operators) through capacity development aimed at
improving aviation safety and security.
Objectives
The objectives of air transportation services in the plan period are to develop the regulatory
framework and services in order to build the capacity of the sector to reach the standards and
levels of competitiveness of best aviation industries globally. That the aviation industry has
fully competent and sufficient human resource capacities will be ensured as well as that the
services delivered by Ethiopian Airports Agency, at the international and local airports it
manages, are up to standard. Local passenger flight services will be expanded, while demand
for international flight services will be met by upgrading and expanding the services. The
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import-export trade in the country will be supported by providing efficient and affordable
cargo services. Airport security and safety facilities in existing and newly built airports will be
fully maintained and navigation services provided that are standardized, secured and
sustained.
Major Targets
To achieve the above objectives for the air transportation sub-sector the targets for the plan
period are presented in the following table.
Table 36. GTP Targets for Air Transportation Services Sub Sector
International and domestic passenger (bln seats) 15.2 3732
International and domestic passenger (mln km travelled) 263 994
Passengers on international flights (mln no.) 27 6.6
Passengers on domestic flights (‘000 no.) 428 1464
5. International passenger flight destinations (no.) 58 77
6. International flights capacity of local airports (Regular and 45.000 67.000
temporary) (no.)
7. Domestic flights capacity of local airports, (of regular and 49,000 72,000
temporary) (no.)
8. Accommodation capacity for passengers of international
. a 3.88 30.5
flights all airports (mIn no.)
9. Accommodation capacity for passengers of local flights all
0.96 7.6
airports (mln no.)
10. Local flights coverage (%) 16 20
11. Cargo carried from all four international airports (tons) 119,000 311.000
12. The number of operators/investors in the sector (no.) 21 35
13. Globally accepted fatal accidents rate (ratio) 30/10,000 5/10,000
Implementing Strategies
A national aviation capacity building program will be designed and implemented. Regulatory
and service delivery systems will be benchmarked against internationally renowned aviation
industries. Communities’ and regional government's participation in airport construction will
be encouraged. A standard governing airport construction and standardized system of airport
classification will be designed. New destinations and flight programs will be opened, using
market expansion strategies. New airplanes will be purchased so as to improve service
qualities and efficiency, including local flights. Safety’ and facilities’ systems and civil
aviation monitoring system will be operated to acceptable international standards.
5.5.9 Urban and Construction Development
Though, the level of urbanization is low in the country the urban population is increasing.
This is also expected to continue in the GTP period. On the other hand, urban administrations
have started to provide urban infrastructure and services, revitalize their economies and
promote job creations in urban centers given their capacity. In the GTP period, due attention
will be given to enable urban centers to have adequate urban infrastructures, promote small
businesses and jobs, and conducive environment that is equitable with the demands of ever
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increasing urban population. These will turn help reduce poverty and unemployment in urban
centers and thereby enhance the role of urban centers for accelerated economic development.
The construction industry has registered significant growth in the past five years plan period.
It played an important role in improving the delivery of social and economic infrastructure,
generating jobs and contributing to economic growth. To sustain this in the GTP period, and
enable the local construction industry play its role in accelerated socio-economic development
of the country, focus will be on building the capacity and competitiveness of the industry by
implementing a comprehensive and integrated capacity building program. The legislation and
enforcement of a regulatory framework that ensure safety and competitiveness in the industry
is also considered crucial to GTP.
Strategic Direction
Key strategic areas for urban development are poverty and unemployment reductions,
sustained and integrated development through rural-urban and urban-urban linkages,
participatory engagement of the urban populations in development and governance, forming
strong partnerships with the private sector, and establishing effective decentralized
administration systems that ensure self-rule of cities and towns.
Regarding development of urban infrastructure, the key strategy is to enhance the capacity of
city administrations to plan, provide and manage the supply of urban infrastructure and
services. Investments in urban infrastructure have to consider the role and importance of the
cities in regional and national social and economic development. Infrastructure development
should create an environment conducive to accelerated economic development and equitable
distribution of services. To realise fully the potential contribution of towns and cities to
economic and social development, the development and expansion of infrastructure will have
to be undertaken through the joint and coordinated efforts of the government, private sector,
and the public. When infrastructure development activities are carried out, the potential to
create a wide range of job opportunities and promote micro and small enterprise development,
will always be taken into consideration.
Low cost housing would also be promoted for the low and middle income households
particularly in Addis Ababa. The housing development initiatives would result in the creation
of new MSEs operating in the construction sector, strengthen the existing MSEs and provide
huge employment opportunities. The housing program needs to be executed in a way it
promotes domestic savings, reduces slums and improves the urban environment.
The development of the construction industry will be promoted during the plan period such
that it is labour-intensive, market-oriented, led by the domestic private sector, competitive,
ethical, and free from corruption. Development of the construction industry will take into
account micro and small enterprise development, capacity building requirements, and ensure
the full participation of women. Steps will be taken to ensure that design and construction
activities accommodate the needs of the disabled citizens.
Objectives
In order that urban and construction development contribute fully to the accelerated
socioeconomic development of the country, specific objectives that will be pursued are
For urban development: The priority objectives are to ensure stronger urban local capacities
to develop and manage urban infrastructure and services, deliver efficient, effective and fair
infrastructure and services to urban citizens sustainably, and improve the urban environment
for living and work. In addition, poverty and unemployment reductions are set as objectives
83
of the various urban infrastructure and business development initiatives. Strengthening the
capacity of cities to self-govern themselves and public participation are -expected to improve
the governance system. It is planned also to construct affordable, good quality and
standardized urban housing, particularly in Addis Ababa, reduce urban slums, address
housing (shelter) problems, promote domestic savings and create a wide range of job
opportunities.
For construction industry development: The objective here are to ensure construction
works are completed to the standard required, time limits set and costs planned, build the
capacity of the domestic construction industry to fully meet local demand, enable the industry
to make a significant contribution to the sustainable growth of other sectors and the national
economy, as well as improve its productivity. Additional objectives are to create jobs,
develop the sector’s overall capacity and increase the number of local companies (contractors,
consultants, construction machinery supplying and leasing companies, and construction
material suppliers) engaged in the industry, and ensure the effective use of public investment
in different construction works.
Major targets
With regard to construction and urban development the main targets during the plan period
are presented in the following tables.
Table 37. GTP Targets for Construction Development Sub Sector
1. Raise the capacity of existing contractors by improving capacity of higher grade local contractors and
consultants
Promote (based on prior assessment) lower grade contractors to middle and higher grades
Facilitate the certification of non skilled and semi skilled manpower
Promote the introduction of new contractors and consultants
Build the capacity of companies leasing plant and equipment
ow PS
Based on thorough research resolve the supply and demand gap relating to both local and industrial
construction materials.
Table 38. GTP Targets for Urban Development Sub Sector
1. In Addis Ababa, construct and transfer houses (no) 150, 000.
2. Reducing slum areas in Addis Ababa (%) 60 30
3. Construct houses in sugar development projects (no) 101,022
Urban infrastructure development targets include
4. Construction of cobble stone roads (Km) 3738
5. Construction of drainage networks (Km) 3527
6. Development of solid waste landfills sites (no) 358
7. Development of modern abattoirs (no) 214 299
In addition completion of all low cost houses under construction, as part of the ongoing
housing development program in all regions, at the start of the plan period and put in place an
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effective regulatory policy to regulate the activities of private real estate developers and
housing cooperatives will be implemented.
Implementation strategies
Urban Development: The operational strategies here concern the strengthening of
organizational and human resource capacities of urban local administrations. The
development and implementation of a sustainable urban infrastructure and housing finance
system is also another element of the implementation strategies. Here the primary focus will
be on improving domestic savings and revenues for infrastructure and housing developments.
The experiences so far with regard to public participation in planning, delivery and
management of infrastructure, housing and services as well as other governance issues will be
consolidated further during the GTP period. Finally the undergoing initiatives of
strengthening the urban planning, design and construction capacities will be consolidated
further to ensure better quality, cost efficiency and productivity in infrastructure and housing
delivery.
Construction Industry: The emphasis is on enhancing the capacity of the domestic private
sector so as to create a competitive local construction industry. To this end a comprehensive
capacity building program will be adopted and implemented. In the plan period, implementing
strategies will be adopted to increase the quantity and improve the quality of local contractors,
consultants and construction machinery leasing companies. The provision, production and
administration of construction materials will be strengthened and existing and new local low
cost construction materials developed and improved through research and technological
transfer; their use in designs and construction will also be provided. In sum, the second
strategy is promotion of import substitution in the production of construction materials and
services. Emphasis will be given to proper use of manuals, procedures and checklists and
adherence to regulations in all government and private construction activities. In other words
the strategy here is to fully enforce the building code already adopted by the country.
CHAPTER 6.
SOCIAL SECTOR DEVELOPMENT PLAN
Social development plays a key role in enhancing people’s living standards, poverty
eradication, economic growth and stable governance. Much emphasis has been given to the
development of the sector in the past and it has developed rapidly. For the GTP period, based
on the results achieved so far in the sector, the provision of education and health services will
be expanded with the focus on ensuring the quality of services provided.
6.1 EDUCATION AND TRAINING
The Education Sector Development Program for the GTP period (ESDP IV) has the goal of
producing democratic, efficient and effective, knowledgeable, inspired and creative citizens
who contribute to the realization Ethiopia’s vision of being a middle income economy. The
ESDP IV focuses on educating and training a workforce that meets industries’ needs at all
levels, particularly the growing manufacturing industry. The plan for the GTP period has also
taken into account the findings of the review of ESDP III. Based on that review, the ESDP IV
was developed with a strategic direction to ensure equitable access to quality education at
general, TVET and higher education levels, and also ensure that these three education levels
have strong linkages to, and interrelationships with, each other. The key objective over the
next five years is to ensure the achievement of the MDG targets.
6.1.1 Strategic Directions
The strategic directions that will be pursued during the GTP period under education and
training sector, technical and vocational education and training as well as higher education are
presented below.
General Education: The initiatives, already in place to expand basic educational services to
all, and achieve the MDG targets, will be strengthened. Cost effective and participatory early
childhood care and education will be expanded in both formal and non-formal delivery
mechanisms. The role of the government will be to facilitate policy based services, such as
supervision to ensure quality, support for provision of materials, development and provision
of curricula, standards and guidelines, provision of early childhood care and education
classrooms, and space within formal primary schools for community driven programs.
With regard to formal education, the existing strategic direction is to ensure equitable access
to quality primary education. The undergoing initiative of providing fair and accessible
quality formal education will be continued and consolidated. The current gender disparity will
be eliminated by the end of the plan period. The education strategy for children with special
needs will be fully implemented to meet the needs of this group.
An important priority will be to improve and ensure the quality and efficiency of education at
all levels. To realize this priority, the General Education Quality Improvement Package
(GEQIP) will be fully implemented. Its subsequent impact in improving student achievement
(in terms of knowledge, skill and attitude) will be verified through regular monitoring and
evaluation, and through the National Assessments of Student Achievement conducted every
three years. The findings of this assessment will be inputs to further enrich GEQIP and
achieve access to quality education for all. In addition, functional adult literacy (FAL) will be
expanded to all regions. Youths and adults within the 15-60 age range will participate in the
program as per the FAL criteria.
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Technical and Vocational Education and Training/TVET: A good quality and efficient
TVET system will be established through full implementation of the TVET strategy. To
achieve this, government investment will be increased and cooperative training will be fully
implemented in order to ensure provision of the human resources that will satisfy the demands
of the nation’s labour market.
The TVET system will continue to serve as a potential instrument for technology transfer,
through the development of occupational standards, accreditation of competencies,
occupational assessment and accreditation, and the establishment and strengthening of the
curriculum development system. TVET institutions will serve as the centres of technology
accumulation for MSEs. Rigorous and regular monitoring and evaluation will be carried out
amongst TVET institutions. Government and private monitoring will enable them to ensure
the minimum levels of competency. The basis for M&E will be whether the training taking
place is aligned with the demands of the economy and whether trainers are satisfying the
requirements cited in the trainers’ competency package. M&E will also look at the trainees
and assess whether they fit the profile and demands of their chosen occupation and are able to
access job opportunities. Generally, the M&E system will evaluate whether TVET institutions
are on the right track with regard to the strategy and, if not, take immediate corrective
measures for improvement.
Higher Education: The key priority for higher education during the plan period will be to
ensure quality and relevance. To this end, the management and administration system of
universities will be improved and strengthened, and efforts will be made to enable the Higher
Education Strategic Centre and the Higher Education Quality Assurance Agency to achieve
their purposes. The performance and implementation capacity of technology institutes will be
built upon. Implementation of a full fledged teacher development program will ensure an
adequate supply of university teachers. The revised curricula will be implemented in line with
critical issues, such as, instructional process, assessment and examinations and student
achievement.
The education provided by Higher Education Institutions (HEIs) will be made compatible
with the quantity, type and quality of the human resources demanded by the economy and the
labour market. Accordingly, the increase in enrolment in graduate and post graduate programs
will aim to be in line with the 70/30 program. A system will be introduced which will enable
universities to raise their own internal revenues. This will help them improve the quality and
relevance of education provided.
A technology transfer-centred research system for HEIs will be put in place. Capacity
building will be undertaken to improve performance, especially of science and technology
institutes and departments. Capacity building will aim to make certain HEIs support economic
development through technology transfer. In general, the research system in HEIs will be
guided by the role they play in the economic growth and development of the country.
Assurance of the quality and relevance of education provided in private HEIs will be another
key priority issue during ESDP IV. These institutions will be evaluated and quality assured,
based on the degree to which they are organized and deliver services as per the higher
education proclamation and strategy. The provision of higher education in the private sector
will be required to give priority to quality and relevance, through regular M&E and, where
necessary, corrective measures. Through continuous support and monitoring, HEIs will
become more effective and efficient and provide a student friendly environment especially for
young women and students with special needs.
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6.1.2 Objectives
The objectives of the education sector development program are to ensure an effective and
efficient education and training system that enhances quality, efficiency, relevance, equity and
access at all levels. This will be achieved through performance capacity building, and the
development of, and adherence to, competency criteria.
Objectives of General Education: The objectives for general education are to expand access
to good quality primary and pre-primary education and to maintain their quality and
efficiency, expand good quality secondary education that serves as a foundation and bridge
for production of a middle and higher level workforce that meets the demands of the national
economy and labour market, expand the intake capacity of HEIs, ensure equity in education
by narrowing gender, regional and urban-rural disparities, and expand access to functional
adult literacy (FAL) to enhance the country’s all round development endeavours.
Objectives of Technical and Vocational Education and Training/TVET: The objectives
for TVET are to provide an outcome orientated, good quality and equitable service, in rural
and urban areas, that meets the demands of the national labour market. TVET institutions and
services will become centres of technology transfer creating concrete capability to support
MSEs through technology accumulation, building organisational capacity and transfer of
technology. To this end, particular emphasis will be given to developing an integrated TVET
package that will involve all actors and stakeholders. The TVET integrated package will
strengthen the ability of industries to set occupational standards and provide accreditation of
competencies. A main objective for TVET is to support women and youth to gain working
skills and competencies that ensure they are economically self sufficient.
Objectives of Higher Education: The objective for higher education is to establish HEIs that
are focused on result orientated management, administration and performance, and that
recognize and scale up best practices. A further objective for HEIs is to provide an increased
quantity and quality of skilled and capable human resources that meets the needs of the
country in regard to its development in general, and the manufacturing industry in particular.
To this end, HEIs will ensure that enrolment prioritizes science and technology. In addition,
successful HEIs, that have provided good quality and relevant education that meets the
demands of the economy and enhances the competitiveness and competency of female
students, will be recognised.
6.1.3 Targets
Targets set for the plan period, as indicators of access, equity, quality and efficiency, and
which will help to monitor and achieve the general and specific objectives of the education
sector, are described below for general, TVET and higher education.
General Education, quality and efficiency: All schools and resource centres, at each level,
will have principals and supervisors who meet the standards set. By this means, a school
management system that ensures educational quality will be established. Students that
complete each cycle of education will acquire the civic and ethical behaviour desired.
Teachers at all levels will be required to be professionally licensed so that the quality required
is maintained and every subject specified is relevant. Thus, teachers accountability and
responsibility for implementation of quality oriented teaching, learning processes and
curricula, in every sphere of general education, will be assured.
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Table 39. GTP Targets for General Education
1. Increase students” score in examinations and assessments at all grade
. 50 90
levels of every subject (%)
2. Gross enrolment rate for pre-primary education (%) 4.2 20
3. Net enrolment rate for primary education (1-8) (%) 87.9 100
4. Gross enrolment rate for general secondary education (9-10) (%) 39.7 62
5. Gross enrolment rate of functional adult literacy (%) 36 95
6. Gender disparity (1-8) (%) 0.93:1 Il
Table 40. GTP Targets for Technical and Vocational Education and Training
1. Competent/certified candidates (%) j 23 60 |
2. Technologies that can help create wealth and increase income (no) 3000
3. TVET graduates that enter the labour market and be employed (%) 90
TVET system capability will be established to accommodate participants who have the need
and readiness to attend TVET and who can satisfy the minimum requirements for each level.
Higher education: Universities will strengthen management and administration systems that
can promote their missions of achieving quality and relevance of education. They will
conduct research, which focuses on solving problems in quality and relevance and
development, and they will enhance community services. Provisions for standard facilities of
libraries and laboratories will be assured in all HEI.
Table 41. GTP Targets for Higher Education
1. University teachers (no) 23,000
a. Teachers with second degrees (%) 75
b. Teachers with PhD degrees (%) 25
c. Student teacher ratio 1:20
2. Annual intake for postgraduate programs (second degree and PhD (no) 16,100
3. The average graduation rate of undergraduate program (%) 93
a. The graduation rate undergraduate programs for females (%) 90
b. The graduation rate undergraduate programs for males (%) 95
4. Gross admission for undergraduate program (70:30 program mix) (no) 185.788 467.001
5. Participation rate of females in undergraduate programs (%) 29 4
6. Participation rate of females in postgraduate programs (%) 10. 2.
6.1.4 Implementation Strategies
General Education: To ensure quality and efficiency of general education, capacity
development activities will be undertaken to enhance the performance of leaders and
implementers, to the standard indicated in GEQIP, at all levels. The implementation of best
practices referred to in the GEQIP, in every school, will be scaled up. Scaling up education
quality will be encouraged by building communities’ sense of ownership of educational
quality by initiating integrated community mobilization, at all levels, using every media.
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The qualifications of teachers, at every stage and for every type of education, will be
upgraded as described in the teacher development blue book through pre-service, in-service
and continuous professional development schemes, by provision of special training to English
teachers to raise their proficiency at each level, per the standard set, by application of an
assessment tool for and identification of skills gaps, by fully implementing the Maths and
Science strategy that aims to raise student awareness and motivation for improved learning in
maths and science and achieving better results in these subjects, and by creating strong
linkages and harmony between the curricula of different primary education, secondary
education and teacher training institutions curricula.
To improve the quality of education, digitized (plasma based) secondary education will be
developed in a way suitable for broadcast. To implement this initiative a checklist will be
developed to determine the expected attitudes, skills and inputs required. The digitized
broadcast strategy aims to implement the GEQIP efficiently, establish an effective M&E
system, evaluate the impact of the GEQIP upon changes in student achievement and
eventually upgrade excellence of the GEQIP and its implementation.
With regard to equity and access, the Early Childhood Care and Education policy package and
strategy will be fully implemented. Participatory school construction and networks will be
promoted. The distance between children’s homes and schools will be reduced. The existing
Alternative Basic Education Centres to regular schools will be transformed. More Alternative
Basic Education centres will be established when and wherever necessary. A strong
transformational nexus between Alternative Basic Education centres and formal primary
schools will be established.
In scarcely populated areas, as a means of integrating and maintaining children in school and
of meeting the needs of pastoralist and semi-pastoralist students, strategies adopted will
include open multi-grade classes, open mobile and para-boarding schools and school feeding
programs. To improve the access rates of children in emerging regions, affirmative action for
children with vulnerabilities will be promoted. To increase access to secondary education,
secondary schools will be expanded. The expansion of secondary schools will also involve
increased provision of secondary preparatory education, to meet the demand of the economy
for a skilled human workforce and be matched with the intake capacity of HEI. The private
sector, NGOs and the community will be encouraged to open secondary schools. Support will
be provided and monitoring of quality carried out to ensure the standards of these schools
meet requirements.
Implementation strategies for functional adult literacy will follow the FAL strategy and
include interventions to provide curriculum and guidelines, institutionalize training of FAL
facilitators at all colleges of teacher education in order to carry out facilitator training
efficiently. The strategy for Special Needs Education to ensure equity and access will be
implemented. A robust M&E system will be put in place at all levels and corrective actions
taken where required.
Technical and Vocational Education and Training: Implementation strategies here include
ensuring the TVET system is, as much as possible, compatible with international labour
market standards. Particular emphasis will be given to the ability of TVET to absorb and use
the existing expertise in the country. Which experts have valuable competencies will be
identified through competency assessment. Use will be made of accredited assessors who hold
senior positions in industries, so as to establish occupational standards comprehensively and
for assessing other experts. A result expected from these strategies is that only those assessors
who are accredited and competent carry out assessments.
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Other main strategies are to prioritize occupations and facilitate conditions for provision of
comprehensive in-company training. From among graduates, those with high competency will
be selected for the post of trainers at TVET centres. Further, implementation strategies are to
promote selected and experienced trainers to senior levels of training and management.
Accredited trainers and teachers will be given ownership over various training and technology
transfer activities. The capacity of the industrial work force will be improved to international
labour market standards. So as to achieve sustainability of the TVET system, the industry’s
institutional ownership of TVET systems will be ensured. It will be ensured that all TVET
centres have competent and accredited trainers for all occupations in demand.
Main TVET implementation strategies for strengthening MSEs are to provide capacity
development, by promoting them as centres for technology transfer, ensure a decentralized,
integrated and outcome based TVET system throughout the country, realize competencies at
every level, strengthen the TVET system through regular organizational monitoring, involve
stakeholders in occupational standards, develop the curricula, training and assessment tasks,
establish a system for training needs analysis, continuously upgrade occupational standards,
and conducting training of involved personnel.
Higher Education: For higher education, implementation strategies pursued will seek to
strengthen university leadership and providing leadership training for new candidates of
higher and middle level positions. The intake capacity of all universities especially in science
and technology and teacher development programs will be increased. The professional
competence of HEI teachers will be scaled up by providing them with training on, among
other subjects, pedagogy, student assessment and action research. The new universities
currently under construction will be made fully operational and they will be furnished with
the equipment necessary and encouraged to give priority to science and technology and
teacher development programs. A system to promote institutional & teacher competence and
expertise in conducting research and adapting technology will be established. The National
Qualifications Framework will be developed and implemented. All universities will be
encouraged and supported to establish well organized and policy guided internal quality
assurance systems. The capacity of HEIs to undertake graduate tracer studies and analyze
employer needs will be developed. Lastly, it is expected that HEIs will be able to revise and
improve their curricula, as well as developing schemes for the provision of affirmative actions
for those who need additional support, (females, youth with disabilities, emerging regions,
etc) such as, special admission criteria, tutorial support and scholarship opportunities.
6.2 HEALTH
In prior years, remarkable achievements have been realised in the expansion and construction
of health facilities and improvement of the quality of health service provision. The Health
Extension Program is an innovative health service delivery program that aims at universal
coverage of primary health care. The program is based on expanding physical health
infrastructure and developing Health Extension Workers who provide basic preventive and
curative health services in the rural community. The Health Sector Development Program IV
is designed to support the policies, strategies and targets of the government for the GTP
period. The highest priority areas for health sector development program will be maternal and
newborn care, child health, and halting and reversing the spread of major communicable
disease such as HIV/AIDS, TB and malaria.
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6.2.1 Strategic Directions
The core elements of the health strategy are decentralization of the health care system,
development of the preventive, promotional and curative components of health care,
assurance of accessibility of health care for all segments of the population and the promotion
of private sector and NGOs participation in the health sector. In addition, health policy gives
focus to health promotion and disease prevention, curative and rehabilitative services, public
health emergency preparedness and to enabling the population to contribute its own health.
The health sector development plan aims at ensuring community ownership and
empowerment through effective social mobilization, enhanced and sustained awareness
creation, supporting community organizations and creating an environment conducive to
community ownership and empowerment. The Health Extension Program will be the primary
vehicle for preventative health, health promotion, behavioural change communication and
basic curative care through effective implementation of sixteen packages.
The delivery of good quality health services is central to improving the health status of the
population. The Quality of Health Service applies a three-pronged approach to improving
quality of health services. A Health Care Financing Strategy aims at increasing resource flows
to the health sector, improving the efficiency of resource utilization, and ensuring
sustainability of financing to improve the overall coverage and quality of health service. Steps
to involve the community in the planning, implementation, monitoring and evaluation of
health interventions will be strengthened. The role of the private sector in the delivery of
health services will be increased in the plan period. Vertical integration of program
interventions at the point of health service delivery will be given high priority.
The primary focus during GTP will be on the provision of quality primary health care for all.
Thushealth centers will serve as a first curative referral center for HPs and will provide health
care that will not be available at the HPs through ambulatory and some cases of inpatient
admissions. Health post and health centers will be equipped and staffed as per the standard
and expanded in all Woredas. Notwithstanding the primary focus on primary health care, due
emphasis will also be given to the expansion of higher quality hospital services as per the
policies and strategic directions of the health sector. Referral system will be strengthened
through effective implementation of the new guideline. To provide better quality of health
services, the human resource strategy of the health sector will focus on retaining trained
health professionals on the one hand, while on the other hand giving greater attention to a
larger scale training of specialists, medical doctors and midwives to compensate for the brain
drain.
Of particular importance, given the fact that health outcomes depend on so many factors, is
the inter-sectoral collaboration in crosscutting areas such as water supply and sanitation,
education, gender, population, and food supply. Also, given the partnership and networking
between the Government and NGOs and civil society and private sector organizations
engaged in health related activities is becoming increasingly important in enhancing
implementation of the program. In addition, the health sector will forge strong partnership and
create a coordination mechanism to ensure that there will be conducive environment for the
Development Partners and NGOs/CSOs/Private sectors to enhance the scaling up of
interventions during the strategic period. The role of private sector in the delivery of health
service will be strengthened in the coming five years. Integration of the vertical programme
interventions at the point of health service delivery will be accorded utmost attention.
Private health care providers will be strengthened, motivated, monitored and regulated in
order to provide a good quality health service that satisfies citizens. Internationally
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standardized and competitive specialized hospitals will be promoted to provide quality health
services not only for Ethiopians but also for other citizens to generate foreign currency and
promote and enhance national self-reliance in health development by mobilizing and
efficiently utilizing internal and external resources. Private pharmaceutical factories will also
be given much emphasis by providing incentives to sustainably produce and deliver quality
pharmaceuticals.
In order to achieve the desired results of the health sector, a resource mobilization and
procurement (health care financing) strategy will be implemented. To ensure sustainable
national pharmaceutical and service supplies to health facilities at all levels, adequate budget
will be allocated. So as to enable uninterrupted and adequate pharmaceuticals and medical
equipments to health facilities, the necessary incentive package will be considered. In
addition, significant reduction in pharmaceutical wastages and improved rational drug use
will be another focus of the strategy.
Strategic direction related to HIV/AIDs: On the basis of the National HIV/AIDs Policy
emphasis will be on expansion of effective prevention and control activities, promotion of
basic curative care related services, strengthening the systematic collection and use of
HIV/AIDs related information, providing special care and protection to HIV/AIDs patients,
mobilising adequate and sustainable resource to finance the HIV/AIDs strategy , as well as
on reducing vulnerability and new incidence to HIV/AIDs.
In addition, focus will be given to a National Children Health Strategy aiming at the reduction
of under five mortality, expanding family planning, ensuring pre and post natal cares and
support, hygiene and sanitation and reduction of major communicable diseases.
6.2.2 Objectives
The general objective of the health sector is to improve the health of the population by
promoting health of citizens and providing preventive, curative and rehabilitative health
services. Specific objectives are to
Improve access to health service: This objective includes provision of affordable health
services to improve the health of mothers, neonates, children, adolescent and youth, reduce
the incidence and prevalence of HIV/AIDS, TB, malaria and other communicable and non -
communicable diseases and improve hygiene and environmental health.
Improve quality of health services: This objective includes provision of health services of a
standard quality by health facilities at all levels. The standards applied cover speed of
delivery, harmonization at the point of service delivery through the integration of vertical
programs, exploitation of opportunities arising, service effectiveness, patient safety and the
ethics and professionalism in service delivery.
Improve public health emergency preparedness and response: This objective includes
improvements in health risk identification, early warning, response and recovery from
existing and emerging disease epidemics, acute malnutrition, and natural disasters of national
and international concern.
Improve pharmaceutical supply and services: This objective aims to increase the
availability of pharmaceuticals at an affordable price and of a satisfactory condition.
Improve health infrastructure: This objective includes expanding, equipping, furnishing,
maintaining and managing health and health related facilities, expanding use of relevant
technologies including health information technology, technology transfer and vaccine
production.
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Improve evidence based decision making: This objective aims at evidence based decision
making through enhanced partnership, harmonization, alignment and integration of projects
and programs at the point of health service delivery.
Improve human capital and leadership: This objective involves leadership development,
human resource planning, development and management including recruitment, retention and
performance management, community capacity development and technical assistance
management of the health sector. Additional objectives for the health sector in the plan period
are to improve community ownership, maximize resource mobilization and utilize as well as
improve the regulatory system of the health service delivery.
Improve Community Initiatives/Participation and Ownerships: This objective
encompasses awareness creation and ensuring community participation in policy formulation,
planning, implementation, Monitoring and Evaluation and mobilization required to implement
health sector development programs.
Improve Resource Mobilization and Utilization: This objective includes a proactive
approach in the mobilization of required adequate and sustainable resources from available
sources and effectively utilize the resources to achieve MDG targets.
Improve regulatory system: This objective is about ensuring safety in the delivery of health
services, products and practices; prevention of professional malpractices; enhancing
environmental health activities; enforcing regulations and prevention of drug abuse;
6.2.3 Targets
The main targets for the health sector in the plan period are presented in the following table.
Table 42. GTP Targets for Health
‘1 Decrease maternal mortality rate per 100.000 mothers 590
2. Decrease under five mortality rate per 1000 children 101 68
3. Infant mortality rate (per 1000 live births) 77 31
4. Increase family planning service (CPR) (%) 32 66
5. Increase Penta 3 immunization coverage (%) 82 96
6. Reduce HIV/AIDS incidence (%) 0.28 0.14
7. Increase TB Case Detection Rate (%) 36 75
8. Reduce malaria incidence (%) 0.7 <0.7
6.2.4 Implementation Strategies
High priority health sector implementation strategies are to strengthen and scale up the Health
Extension Program. The construction, expansion and improvement of health centres and
hospitals, including expansion of specialized hospitals will be accelerated. Health posts and
health centres will be renovated and properly maintained. Government will ensure that the
inputs necessary to provide the population with good quality health services are available.
Health service capacity to train and recruit a large number of specialists, general practitioners,
health workers and midwifes will be improved. Health service quality regulation will be
conducted and licensing and inspection strengthened. The health care financing system will be
strengthened by expanding health insurance and improving human capital and leadership.
Emerging surgery services to mothers will be started in all district hospitals. Women's
participation, engagement and involvement in the health service delivery will be ensured. The
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role of private sector will be enhanced, the establishment of hospitals providing specialised
services improved and pharmaceutical supply and services improved by providing incentives
for local pharmaceutical producing institutions. The ongoing civil service program will be
strengthened. Public-private partnerships will be developed. Activities that ensure the
participation of all stakeholders will be scaled up.
CHAPTER 7.
CAPACITY BUILDING AND GOOD GOVERNANCE
Remarkable results were achieved over the past planning periods in terms of establishing a
stable developmental and democratic governmental system. These achievements in good
governance and the democratization process play a key role in ensuring rapid and sustainable
development, human and capital resources development and for achieving sustained economic
development and Ethiopia’s MDG targets by 2015. Thus based on the achievements and
challenges experienced so far, the GTP envisages to consolidate the capacity building,
democratization and governance programs of the country.
7.1 CAPACITY BUILDING
7.1.1 Strategic Directions
Strategic directions in the capacity building component include a concerted and integrated
effort to enhance the capacity of the civil service to implement government policies and
strategies effectively and efficiently. Another major strategy during the GTP period is the
scaling up of best practices in the design and implementation of civil service reforms in
Ethiopia. To implement this strategy, civil service reform program activities to date will be
reviewed, and best practices identified, packaged and scaled up. Three key strategic directions
are described below.
Establish government structures with strong implementing capacity: This strategic
direction will involve, during the plan period, the full implementation of the Civil Service
Reform Program at all levels of the government structure (federal and regional) in order to
strengthen the reform agenda. Civil servants will participate in awareness creation activities
that aim to develop wholly positive attitudes towards serving the public, ensure that they fully
understand government's policies and strategies, and are capable of implementing them.
Overall this strategy aims to ensure increased efficiency, effectiveness, accountability and
transparency of public sector service delivery. In particular, the Balanced Score Card, an
initiative of the civil service reform programs, will be implemented with communication
support to strengthen the working systems.
Ensure transparency and combating corruption from its source: This strategic direction
will involve initiatives to implement fully a system of asset disclosure and registration by
every citizen with a view to recognizing and protecting their rights. The tax administration
will be improved through strengthening the tax information system, enforcement and public
education. An urban land registration system that ensures transparency and accountability,
tenure security and efficient land and immovable property market will be set up. Awareness
will be created through education on ethics to encourage citizens to nurture a zero tolerance
for corruption and rent seeking behaviour. A system for transparent disclosure and registration
of assets owned by political leaders and public officials will be established. The systems
described will also deter activities involving, and detect any assets gained through, illegal and
improper activities, educate the public at large to be pro active in challenging corrupt
practices and officials and bringing to justice those who are engaged in improper acquisition
of assets, tax evasion or indeed, any illegal activity which aims at gaining any benefit.
Ensure public participation: This strategic direction will involve initiatives that ensure
citizens’ participation in local governance and development decision making. In addition, the
Woreda and local administrations will be strengthened to ensure better public participation
and thereby to facilitate the achievement of the Millennium Development Goals. Affirmative
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action will be taken to enhance the participation of women at Woreda and Kebele level,
engage and mobilize the public in local infrastructure development activities such as primary
school and health station construction, create an enabling environment for professional and
public associations to enable them to protect and promote their rights and benefits, introduce
and make operational institutional and organisational mechanisms, in all spheres of
government and for professional and public associations, to encourage and ensure full public
participation in the formulation and evaluation of government policies, strategies and
development plans, support professional and public associations and organizations in their
efforts to build inter-organizational initiatives that promoting principles contributing to
democratisation such as tolerance, respect for the rule law, etc.
Incorporate and Implement Cross Cutting Issues in the Civil Service: During the plan
period, particular focus will be given to empowering women through capacity building.
Affirmative action will be taken to increase the participation of women in education and
training; this will increase the number of women who hold decision making posts. Gender
issues will be mainstreamed in the implementation of capacity building programs and in
monitoring and evaluation systems. HIV/AIDS awareness creating programs will be designed
and implemented to increase the awareness of civil servants about the economic and social
issues involved and to increase the level of support for those affected by the disease, including
orphans. In accordance with their constitutional rights, an environment conducive to
increasing the contribution of people with disabilities to the civil service will be established.
Awareness creation workshops and training sessions will be arranged that increase the
understanding of civil servants about the negative impact of climate change and global
warming and about population policy implementation.
During the GTP period, the capacity of outstanding young professionals will be developed
and a system made operational to increase their participation in middle management decision
making positions. To this end the proportion of young graduate professionals in the civil
service will be increased. With individual efficiency as the bottom line, affirmative action will
be taken to ensure that civil servant appointments to decision making positions represent
proportionately each of Ethiopia’s nations and nationalities. In addition, particular focus will
be give to increase the opportunities for education and training of minorities.
7.1.2 Objectives
The GTP objective for capacity building is to ensure accountability and transparency in
governmental operations, working procedures and systems. In addition, emphasis will be
given to capacity building that supports the implementation of government's policies,
strategies and programs.
7.1.3 Main Targets
To achieve the objectives set for capacity building, the following targets will be implemented.
Improve the capacity of top leaders Leadership is crucial in strengthening democracy
and building good governance, and in implementing government policies, strategies and
programs. An objective of the GTP will be to build the capacity of top leadership
management in the plan period. Initiatives to achieve this objective will build the capacity of
leaders at both federal and regional levels, and at all levels of government structure so as to
bring about effective and efficient leadership.
Human Resource Development (HRD): During the plan period attention will be given to
human resource development. To this end, various measures will be taken to upgrade the
capability of the civil service to implement the GTP. These measures will include review of
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legislative frameworks and establishment of modern HRD systems. An objective HRD
measures is to enable civil servants to be more responsive to public demands and to
implement government policies, strategies and programs in an efficient, effective, transparent
and accountable manner.
Build the capacity of government institutions: HRD, organisational development and
improving operational systems and procedures are three pillars of capacity building. This
section deals with the latter two aspects. Some of the main areas of focus in building the
capacity of government institutions will be to transform government agencies so as to
improve service delivery, improve their efficiency and effectiveness in providing public
services, and enhance implementation capacities through improved working systems and
procedures as well as establishing appropriate organisational systems. Surveys have shown
that the majority of government agencies have already shown gains in efficiency as a result of
various interventions in the last strategic planning period. However, the same surveys and
evaluations reveal that effectiveness is at its infancy and much needs to be done to improve
the situation in the next planning period. The survey findings have established a baseline and
it is intended that the effectiveness of all government agencies will be at a much higher level
at the end of the planning period. Targets set for the plan period will be measured against
predetermined standards as a result of full scale implementation of BSC and of the monitoring
and evaluation mechanisms established.
Establish a more transparent, accountable, efficient & effective governmental financial
management system: The objective is to establish an effective, efficient, transparent,
accountable and modern governmental financial management system. This will be achieved
through introduction of legal instruments, properly managing expenditures, putting in place
control systems, and employing skilled and competent personnel. During the previous plan
period, various projects were designed and implemented to introduce modern governmental
financial management systems. The GTP will further build on the successful practices and
gains of the reform process to date.
Ensure a transparent and accountable system: The purposes of this objective are to
institutionalize systems ensuring transparency and accountability throughout the civil service
so that the attitudes and actions of civil servants are directed towards serving public interests.
There are indications, following the various interventions taken in the last five years that
transparency and accountability exist to a degree within the civil service. During the GTP
period procedures for access to information, complaint handling, pre-notification of service
requirements, and disclosure of public information will be introduced to embed transparency
and accountability within the civil service. A related issue concerns combating rent seeking
attitudes and practices. The target here is to substantially reduce rent seeking attitudes and
prevent and control resultant practices/behaviours/ in the public service and of other actors.
The focus will be on those related to tax administration, urban land administration,
procurement and other susceptible areas.
Enhance public participation: Public participation is central to ensuring citizens own
development and to the success of good governance initiatives and to sustain them. Citizens
participate in development processes by expressing their demands and aspirations and so
contribute to formulating policies and strategies, and to planning, monitoring and evaluation
activities. Efforts made to expand democracy and good governance through the participation
of community based organizations (CBOs) will include organisation of public meetings,
involvement of cooperatives, professional associations, and other CBOs, and by ensuring the
regular and proper participation of citizens and CBOs by improving the transparency and
accountability of operational procedures of governmental organizations. A number of
participatory mechanisms that contribute to good governance have been implemented
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previously, however, the participation of CBOs needs further improvement and so, in the GTP
period, remedial actions will be taken to strengthen the degree and consistency of public
participation.
Build the capacity of woreda and kebele councils: Building the capacities of woreda and
kebele councils by training staff and improving working systems is of paramount importance
in strengthening good governance and democracy at local levels. The focus during the plan
period will be to strengthen the implementation capacity of both urban and rural woreda and
kebele councils by establishing improved operational systems, enhancing the capabilities of
councillors, deepening democratic participation, establishing transparent and accountable
systems, and strengthening internal controls.
Enhance civil servants’ awareness of the supremacy of law: This capacity building
objective aims to ensure that civil servants have good knowledge and understanding about the
importance of the supremacy of law and that the law is applied. A change of attitude among
civil servants is intended. Government agencies make a critical contribution to the fair and
proper implementation of laws enacted by the government. For this reason civil servants
should have knowledge of the content and purpose of laws and regulations that are relevant to
them; they should be able to apply them fairly and fully. Civil servants will in future be
supplied with all newly passed laws and regulations, along with supporting documents. A
lesson learnt during the previous development plan is that even though pertinent new laws and
regulations come into existence, civil servants have a habit of carrying on their duties and
responsibilities as they did before; it is business as usual. It is intended to change this situation
and ensure all civil servants are knowledgeable about and apply properly all laws and
regulations. This will be achieved as by identifying those laws to be prioritized and creating
awareness among the civil servant with training and workshops. Priority areas are, among
other, the Civil Service Proclamation and those proclamations relating to education, health,
the constitution, government finance, the budget proclamation, counterterrorism, broadcast,
freedom to information, charities and society's.
7.1.4 Implementing Strategies
The implementation strategies here refer to enhancement of skills and knowledge of the
implementing agencies and agents, from lower to management level, wider application of best
practices, as well asensuring effective communication that mobilises public participation for
transformational reform. Experience sharing between different administrative levels will be
strengthened and the participation of stakeholders in the reform process enhanced. A well
directed and organized monitoring and evaluation system will evaluate the impact of the
reforms introduced.
All inclusive capacity building: Particular attention will be given to increasing the
implementation capacity of all developmental stakeholders; in the governmental, private
sector and the public arenas. The comprehensive capacity building implementation package
includes integrated human resource development, organisational development and operational
systems working closely together.
Build the capacities of capacity building institutions: These institutions help sustain and
advance reforms in the public service through human resource development, consultancy and
research. Thus enhancing the capacity of these institutions so as to effectively support the
civil service reform will be taken as one strategy in GTP.
Integrate Capacity Building Activities: Capacity building activities are being undertaken by
different institution. Hence the strategy should be carried out in an integrated manner to save
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time and cost while implementing capacity building programs. Hence, a coordinating
institute will be established to oversee the overall activities.
Harmonize capacity building activities with the reengineering reform program: Reform
is a continuous process in the capacity building program. There will be unpredictable
obstacles or, alternatively, good opportunities that arise during implementation of the capacity
building program, which were not anticipated during the plan preparation. For this reason, it
is an implementation strategy to watch for and take advantage of opportunities that arise and
address and resolve obstacles during implementation.
Enhance reengineering reform communications: Unless the reform program is supported
by a communication strategy, it will be difficult to create the support for capacity building
reform among the citizens, and in particular among the civil servants, that ensures their
enthusiastic support and full contribution in implementing government’s agenda. To address
this issue, a strategy has been designed to ensure the full comprehension at top management
level as to the importance of communication for effective reform. During PASDEP, a high
level of support and enthusiasm for reform was generated in society generally, and in
implementation agencies in particular. During the GTP period, effort will continue to be made
to increase support further through the communicating strategy; the reform program will be
core to the daily activities and tasks of government organizations.
Support the reform with ICT: To date a variety of activities have taken place to transform
government organisations. These include Business Process Reengineering and Balanced
Scorecard. The Business Process Reengineering exercise is now fully operational in most of
the federal and regional government institutions, while Balanced Scorecard is in the process
of being implemented. It is important these reform measures are supported with ICT in order
to ensure the civil service is effective, efficient, transparent and accountable, as well as to
increase the contribution of civil servants to the transformation process. In this context, it is
planned to automate Business Process Reengineering and Balanced Scorecard by introducing
new software, testing and then fully implementing the system in all government agencies
during the plan period.
7.2, INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT
7.2.1 Strategic Directions
The strategic directions to be pursued for enhancing information and communication
technology development in the country are development of information communication
technology infrastructure, ICT human resources and the legal and security system related to
ICT. In addition, development of e-governance through use of IT, enhancing role of private
sector in ICT, and promotion of IT research and development will remain strategic direction
of the sector during GTP period.
7.2.2 Objectives
The overall objective for ICT is to support the GTP in ensuring sustainable development and
poverty eradication, human resource development, capacity building and good governance
through well-developed and all-inclusive capacity augmenting communication technology
interventions. During the GPT period, an objective for ICT development is to gradually
expand ICT over the entire nation and at all levels of the society by expanding ICT use and
access on a large scale, and introducing community ICT facilities.
A second objective is to ensure the security of ICT services and protect the system from cyber
crime by creating an appropriate institutional framework (policy, law and regulation) as well
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as organizational and human resource capability. Expansion and development of ICT will also
be encouraged by developing and putting in place uniform procedures, standardization of the
technology applications and improving the efficiency and effectiveness of the human and
financial resources available for ICT.
7.2.3 Major targets
During the GTP period, the major targets for the ICT sub-sector are to develop human
resources for ICT to support overall development of the sector. Development research will be
conducted to enhance the contribution of ICT to economic growth and social development. A
suitable policy, legal and regulatory environment will be created that contributes to poverty
eradication and expedites the success of development objectives. A uniform set of procedures,
standards and quality control mechanisms will be developed and put in place for the ICT sub
sector. The use of human and financial resources will become efficient and effective. Finally,
a key target is to prevent and fully control illegal activities and there by ensure the security of
the ICT system.
7.2.4 Implementation Strategies
The first strategy is to promote the development of ICT infrastructure and services in
connection with higher education institutions so as to ensure sustainability, quality and
relevance. The private sector will be encouraged to enhance its role in the sector, while an
ICT Park will be developed in Addis Ababa. Other implementation strategies that have been
designed to achieve ICT objectives by the end of the GTP period include: develop and
standardize the ICT infrastructure and services: improve the national and regional states
information exchange systems by installing broadband internet networks; provide ICT
services to beneficiaries at competitive prices; support IT professional needs in selected
economic sectors within the country, facilitate the provision of computer education and
training to society at a large scale; create an enabling environment that supports increased
innovation, creativity and professionalism of ICT professionals; enact legal instruments
relating to ICT resources and services development and ensure that these are incorporated into
other development policies, strategies and programs; revise the legal and regulatory
frameworks, in collaboration with national and international stakeholders, to improve and
expand ICT development; put in place management and quality control directives and
standards that regulate the supply of ICT services and products; introduce the disposition of
alphabets of national languages and make use of the Unicode Technology: provide support
and foster ICT research and studies; develop the information Kiosk; and encourage
development of a culture of internet use for various economic and social activities and create
enabling conditions to increase computer ownership.
7.3 JUSTICE SECTOR
7.3.1 Strategic Directions
The overall strategic direction for the justice sector is to contribute to establishing a stable
democratic and developmental state. Contributions made by the justice sector in this direction,
will be to establish a system for citizens to access judicial information and ensure that the
justice system is more effective. Steps will be taken to ensure that implementation and
interpretation of laws are in conformity with the constitution; where they are not, they will be
amended. The independence, transparency and accountability of courts, and of the judicial
system as a whole, will be assured. Law enforcement agencies will be strengthened by
strengthening human resource skills and providing adequate equipment. The publics’
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understanding and awareness of constitutional issues will be enhanced. Customs and
traditions of peaceful resolution of disputes will be given special emphasis and will be applied
widely during the GTP.
7.3.2. Objectives
The objectives of the justice sector are to strengthen the constitutional system and ensure the
rule of law, make the justice system more effective, efficient and accessible as well as more
independent, transparent and accountable. In addition the GTP aims to consolidate the process
of creating a democratic, stable and strong federal system that ensures the peace and security
of citizens.
7.3.3 Targets
Human resource capacity development: The new curriculum for Bachelor of Laws (LLB)
degrees will be fully implemented. Teaching materials will be prepared for the new
curriculum and will subsequently be evaluated and upgraded regularly. An appropriate
number of professionals will be trained for their second and third degrees and a system will be
established to this effect. Training will be based on needs assessment and pre-service training
will be given to newly appointed prosecutors and judges. Short term training will be provided
at least once a year for judges and prosecutors serving at all levels ranging from Woreda up to
Federal Supreme Courts, so as to enhance their capacities and to address their shortcomings
related to attitude, knowledge, ethics and skill. The capacity of other professionals in the
justice system will be enhanced. To this end, the federal and regional level training institutes
will be well equipped, while research works that help build the capacity of professionals
working in the justice sector will be encouraged. Ethical standards will be set and enforced for
practicing lawyers and attorneys.
Improve the transparency and accountability of the justice system: A system to increase
transparency and accountability will be fully established. A mechanism will be established to
evaluate the effectiveness of the professionals. Ethical principles will be made known and be
implemented fully by the professionals involved. Complaint handling offices will be
strengthened. An effective and cost saving resource management system will be established
and implemented. Strong monitoring, evaluation and support systems will be established.
Independence, transparency and accountability of the judiciary: A system will be
established to ensure accountability, while guaranteeing the judiciary’s independence. The
appointment of judges will be based on competence and will ensure fair regional and gender
representation. The performance evaluation system for judges will be expanded, continuity of
the evaluation system will be ensured, and the screening process will be improved. A system
will be established for the speedy resolution of disciplinary matters that are brought before the
judicial administration council. Improvements will be made based on consultations with and
contributions from service users and stakeholders. The hearing process in the justice system
will take place in full in open courts. Cessation decisions and laws will be made available in
time for judges.
Enhance service accessibility: Standardized accommodation in which justice agencies and
courts can work in an integrated manner and which are more accessible will be provided.
Initiatives to provide the services of the courts throughout the year will be expanded to all
courts and courts will provide services 24 hours-a-day. Efforts that have been started to make
the courts more accessible to women and children will be fully implemented and expanded to
all courts in the country. The initiatives that have been started to make the court environment
friendlier for users will be expanded and implemented in all courts in the country. Indigent
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litigants will be provided with adequate legal counsel, aid and translation services. The
number of judges will be increased to ensure that the number of judges corresponds to the size
of the populations they serve.
Rehabilitation of prisoners: National prison inmate handling and protection standards will
be prepared and implemented to ensure appropriate rehabilitation of prisoners. All prison
inmates will be encouraged to become productive and law abiding citizens by attending civic,
ethics, academic and professional training sessions. Inmates will be helped to increase their
income by taking part in developmental works. Their human rights will be ensured. Provision
of/for inmates’ accommodation, health, nutrition, communications and recreational services
will be improved. A system will be established and implemented to follow up the integration
of inmates in society released after serving their terms. Efforts will be made to improve the
public image of prisons.
Strengthen the federal system: The values of peace and tolerance will be promoted and the
capacity to resolve disputes peacefully will be strengthened. Mechanisms will be established
and implemented to detect and prevent conflicts before they occur and resolve conflicts that
have arisen before they result in harm. In this respect it is noted that, the capacity to resolve
disputes permanently is dependent on research related to conflicts. Measures will be taken to
enhance the values of tolerance and respect between religious institutions and their followers.
Solutions to religious conflicts will be sought and implemented through research which will
be conducted to identify sensitive religious issues. The awareness of the leadership at all
levels, and that of the population, of issues relating to interstate relations and federalism will
be significantly enhanced. A system will be established to ensure permanent
intergovernmental agency, as well as federal and regional state, relations.
Increase public participation: Participation of the justice system staff in the preparation and
evaluation of plans as well as on other necessary issues will be strengthened (internal
participation). Measures will be taken to improve and enhance the participation of
stakeholders in issues related to justice (external public participation).
Improve sector communication: Public relation activities will be carried out to raise
sufficiently the awareness of governmental agencies and of the public about the performance
of the justice organs. The preparation and publication of professional magazines within the
justice organs will continue.
Enhance the use of ICT in the reform process: A national integrated justice information
system will be established and put into use. Actions will be taken to support the court system
with information communication technology which will be extended to all courts in the
country. A public prosecutor information system will be established and put into use. All
work processes and offices will be modernized by developing appropriate software and a
database for file and record keeping. Information about inmates will be supported by ICT and
there will be maximum utilization of ICT in all the training centres.
Ensure the mainstreaming of cross cutting issues in justice sector: The justice sector will
devise and implement a mechanism whereby the rights of women and children as well as of
persons living with HIV/AIDS, as recognized by the constitution and international
agreements, are fully respected. Their equal participation in society, and the opportunities and
benefits accruing from that participation, will be ensured.
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7.3.4 Implementation Strategies
To achieve the objectives and targets established for the justice sector, during the GTP period,
a number of implementation strategies will be adopted. These are summarised in the
following paragraphs.
The reforms required will be supported by specific initiatives to build implementation
capacities of the agencies involved. The law required will be drafted, codified and
consolidated, prior to adoption, based on proper research. At all times the sector will render
effective, efficient, accessible and predictable justice to all and ensure the efficient and
effective execution of court decisions. Strategies will be implemented that prevent crimes that
endanger the constitutional system and public interest and, where such crimes are committed,
the perpetrators will be brought to justice. Prisoners will be helped to become law abiding,
skilled and to respect the rights of others. An environment conducive to ensuring lasting peace
and respect between religions and religious institutions will be created. Good governance and
development will be supported by conducting legal research, raising the knowledge and
awareness of the public on human rights protection and strengthening the rule of law.
Strategies will be pursued that ensure that the rights of women, children and persons that live
with HIV/ AIDS, as they are recognized by the constitution and international agreements, are
respected, that they participate equally in and benefit from development. The publics’ respect
for law and order and support of law enforcement activities will be gradually raised by raising
overall awareness of legal issues. Laws will be disseminated more widely and more
efficiently in order to increase public knowledge and awareness of the law. The role of civic
societies and stakeholders in good governance and development activities will be enhanced. A
system will be established to ensure that attorneys have the required professional capability
and ethics and to strengthen their role in the administration of justice. The registration of legal
practitioners will be fully implemented.
The values of gender equality will be promoted so that women participant more equally in
good governance and development, and the capacities of women in the justice sector are
enhanced. Professionals in the justice sector will be made more aware of the nature of
HIV/AIDS and its transmission, so as to protect themselves from HIV/AIDS, ensure that
sufferers get the appropriate help in a manner that respects their human rights, and support
implementation of health policy that is focused on prevention.
7.4 DEMOCRACY AND GOOD GOVERNANCE
7.4.1 Strengthening Democratic System
7.4.1.1 Strategic Directions
During the GTP period, the strategic directions to ensure democratic governance in the
country are to adopt and effectively enforce laws that support democracy and good
governance, conduct free, fair and democratic elections and ensure the human rights of all
citizens. In addition, the rights of women will be protected. One economic and political
community will be the aim and to this end the development of a culture that respects the
constitution, human rights and democratic values will be fostered. Government will give a
guarantee that people are well represented. Accountability in general will be strengthened and
the financial audit system in particular; the accounting and audit system will be standardised.
An enabling environment will be created for citizens to hold consultative dialogue with
government about human rights. Research related to human rights will be undertaken. The
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freedom of the press and the rights of citizens and freedom of information will be ensured.
Good governance and democratic institutions will be strengthened and deepened.
7.41.2 Objectives
The objectives are to strengthen democratisation and good governance and consolidate the
existence of a federal democratic political and economic community.
7.41.3 Main Targets
Strengthen Councils and institutions accountable to them: A number of activities have
been carried out during the previous plan period to strengthen these institutions, enhance their
role in the process of building a democratic culture, and build the capacity of staff involved
through short-term training and experience sharing. During the GTP period these activities
will be continued and, more specifically, the capacity of these institutions will be strengthened
through training, system and organizational development. In particular, to strengthen the
parliamentary system of the government, it is planned to build the capacity of the members of
the House of Peoples Representative and House of Federation through training and with
experience sharing workshops and by improving the working procedures of the two councils
with application of information technology and network infrastructure for ease of information
management and use to improve decision making.
Awareness creation about human rights, democracy and the constitution: During the plan
period the federal House of Peoples’ Representative and House of Federation will conduct
broad based awareness creation workshops and training seminars for students at pilot schools,
based on the civic education, using methodologies to encourage democratic culture such as
the children’s parliament instrument, and for pastoralists, mainly in conflict prone areas, and
including women and youth society groups, so as to create awareness about democratic
culture.
Ensure a federal democratic political and economic community: The following activities
will be undertaken in order to ensure the realization of this objective. A number of initiatives
will be undertaken during the GTP period that strengthen the relationship between nations,
nationalities and peoples such that the federal democratic arrangement in effect leads to better
integrated political and economic community in the country. The House of Federation will
encourage extensive research on democratic federal governance and make use of the findings
to strengthen national consensus around the objective of ensuring one economic and political
community. The documentation section of the House of Federation will be equipped with
research materials to facilitate proper decision-making by the House. The grant sharing
formula will be revised and improved to create balanced and equitable regional development.
An early warning system will be put in place to prevent conflicts, and indigenous conflict
resolution mechanisms used to mobilize local communities.
Provide laws and directives to create an enabling system to ensure democratic
representation and accountability to public resource: The House of Peoples’
Representative and regional counterparts will issue acts and directives, that have been
developed based on research, to realize the objectives of the GTP. Ethiopian Human Rights
Commission, Ethiopian Institution of the Ombudsman and the Office of the Federal Auditor
will work closely with House of Peoples’ Representative for effective implementation and
monitoring of this objective.
Ensure council’s accessibility and accountability to the public: Councils of representatives
established at all levels are expected to oversight the performance of the government. This
oversight exercise is expected to ensure active and organised public participation too. The
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participatory oversight of the councils is expected to play a crucial role in ensuring that
government policies and programs are implemented as per the plan and that measures are
timely taken to rectify any shortfalls. The federal and regional councils will secure media
airtime, develop user friendly websites, publish and increase the circulation of press releases
and booklets, in order to address the public and collect public perceptions of democratic
institutions and the democratic process. These initiatives will also enhance the participation of
federal and regional councils in the decision making process. Advocacy Centres will be
established to reach out to the public at lower administrative levels and make accessible
minutes, reports of the councils, annual plans and other related information.
Enhance public participation: Regional, Woreda and Kebele councils will initiate activities
to increase public participation in the development planning and democratization process. The
participation of women in councils will be enhanced to achieve better political participation
and involvement in decision making. The capacity of the council members will be improved,
through training and experience sharing study tours. The participation of CBOs and the public
at large in development planning, implementation and monitoring will be strengthened.
Directives and laws that will support the functioning of CBOs and professional associations
will be put in place.
7.4.1.4 Implementation Strategies
Strategies that will be adopted to implement the GTP, so as to achieve the objectives and
targets for democracy and good governance described above, are to build the capacity of
institutions, ensure the legislative assembly (law making process) is effective, and the
codification and consolidation of laws is based on research and studies. The delivery of
effective and efficient justice services will be enhanced and the accountability of the judiciary
ensured. The capacity of prisoners will be developed and their human rights ensured. Peace
and tolerance between different religious groups will be established. Democratic governance
will be supported and strengthened by conducting legal and justice system research, ensuring
the supremacy of law and conducting awareness creation among the citizen about human
rights. The accessibility and dissemination of printed and electronic copy of constitutions,
laws and acts will be strengthened and increased. Participation of CBOs and stakeholders in
the development process will be strengthened. The legal protection and rights of children,
women, people living with HIV/AIDS and disabilities will be ensured. A mechanism will be
created to enhance the professional ethics of lawyers through capacity building. Gender
equality will be ensured and awareness created among staff of democratic institutions about
HIV/AIDS prevalence and incidence.
7.4.2 Good Governance
7.4.2.1 Strategic Directions
Good governance plays a key role in realizing the government’s objective of eradicating
poverty by enhancing public trust and ensuring efficient allocation of public resources for
development. The strategic directions focus on improving the land and tax administration
systems. The strategic directions include enhancing the awareness of citizens about the
consequences of corruption through ethics and anti-corruption campaign and education such
that the public nurtures zero tolerance against corruption. Measures that improve transparency
and accountability would be undertaken with particular emphasis on government
organizations and public enterprises that are susceptible to corrupt practices by improving
their operational systems, increasing the role the citizens in the fight against corruption,
introducing registration system of the wealth of government authorities and civil servants,
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introducing information technology systems, enhancing transparency, developing cadastral
land registration system, improving the tax information system, taking legal measures against
those guilty of corruption and using these measures as an input to increase the awareness of
the public.
In this context, a number of activities will be carried out in the plan period, in collaboration
with the relevant stakeholders, including civic education and measures to develop a zero
tolerance of corruption among the society. Additional activities initiated will be to strengthen
the system to track corruption in society and protect public resources. A citizens’
identification information system will be put in place, as will systems to register ownership of
land and establish urban spatial plans. Further, the public will be made aware of the need to
pay tax as directed by law and regulation at the time required and of the importance of taxes
in financing the GTP and its objectives.
7.4.2.2 Objectives
The objectives of good governance are to enhance transparency and accountability so that
there is zero tolerance for corruption. Good governance initiatives will be supported by
information technology and expansion of civic education. The public service delivery systems
will be modernized made efficient, fair and transparent in their delivery.
7.4.2.3 Major Targets
A GTP good governance target is to develop a system, using modern information technology,
to register the wealth of government authorities and civil servants and track and take legal
measures where wealth from unidentifiable sources is detected. In addition, the awareness of
the public will be enhanced with the aim that there is zero public tolerance of corruption and
rent seeking. Ethics education will help to increase public collaboration with government in
the fight against corruption. An anti-corruption strategy will be developed and implemented in
all governmental organs. An enabling mechanism will be put in place to fight corruption. The
knowledge and understanding of tax payers will be increased through development and
implementation of ICT. A customers’ service delivery charter will be established. A modern
urban land management system will be developed and the urban spatial planning system
improved to ensure that land is used economically and in a transparent and accountable
manner. Basic information about citizens will be developed and implemented. Government's
financial management systems will be strengthened. The audit system and regulation
applicable to the private sector will be strengthened.
7.4.2.4 Implementation Strategies
Good governance implementation strategies are to give priority to the fight against corruption
and enforce the law on corrupt practices vigorously in collaboration with those agencies
involved with tax administrations and land management, implement transparent operational
procedures for the tax and land management systems, build the capacity of government’s
implementing agencies through the human resource development and information technology,
work in collaboration with stakeholders to avoid conditions that encourage corruption, and
strengthen the federal and regional anti-corruption commission and organize forums to
enhance the fight against corruption. The institutional capacity development of key agencies
like the Customs and Revenue Authority, Ethics and Anti-corruption Commission, Ministry
of Urban Development and Construction, Office of the Auditor General and Registrations
Offices will be an important element of the implementation strategy.
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7.5 MEDIA BROADCAST AND COMMUNICATION
7.5.1 Media Broadcast
7.5.1.1 Strategic Directions
The strategic directions to be pursued in broadcasting of information for the citizens are to
increase media broadcasts in type, number, quality and language, to increase geographic
coverage, and put in place a regulatory framework for media broadcast.
7.5.1.2 Objective
The GTP objectives for media broadcast are to satisfy the public demand for mass media
information through effective capacity development and implementation of the regulatory
frameworks.
7.5.1.3 Major Targets
Expand information provided by mass media: The target is to expand media coverage and
services provided so as to increase benefits to the public. Media broadcast applicants will be
licensed so that a satisfactory service is provided throughout society. The existing laws and
procedures will be strengthened to enhance media expansion. Communication that increases
customers’ participation will be encouraged. The capacity of media professionals will be
strengthened and the use of ICT will be expanded.
Media inspection and support: Operating systems will be improved and legal directives
drafted and adopted that ensure that laws applied to the press are enforced and the public is
satisfied by the quantity and quality of information and media broadcasting services provided.
The capacity of the media will be developed to enabling them to follow media laws and
procedures. A transparent operating system will be developed, with manuals and standards,
for media inspection and support. Participation of customers and the public at large, and
shared ownership (community broadcasting) arrangements will be encouraged.
7.5.1.4 Implementing Strategies
Mass media expansion: Media coverage in the country is, generally, at lower level. Many
communities do not receive satisfactory media service. For this reason, the government
mainly focuses on improving accessibility and diversity of media services. The
implementation strategy is to expand and increase media in number, kind and transmission
coverage and to ensure the widest possible public benefit from media broadcasts
Media inspection and support: The country’s media services have their limitations in terms
of delivering quality services and satisfying public interest. Thus the second strategy is to
improve support to broadcasters and ensure they operate within the regulatory framework
provided.
7.5.2 Government Communication
7.5.2.1 Strategic Directions
The strategic directions concern conducting an effective communication work based on GTP,
and building capable communication institution in the country. In addition, current
information will be effectively communicated to the public such that the public in turn
becomes even more motivated for greater participation and engagement in the development
and governance process envisaged in GTP. Communication of information that supports
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national consensus and builds a positive image of the country will emphasise the positive
aims and achievements of the GTP by showing to the outside world that Ethiopia is making
significant improvements in socio-economic development and good governance. The strategic
direction focuses therefore on building national consensus and thereby also on strengthening
public participation in the development and governance processes, and on improving the
image of the country.
7.5.2.2 Objectives
The objectives of government communication are to mobilize the public to participate
actively in the implementation of the GTP, create a political environment conducive to greater
and better international awareness about Ethiopia’s achievements and support the country’s
developmental and democratization processes. Further objectives are to significantly enhance
the country’s communication and media services, support the objectives of national consensus
and build a positive image of Ethiopia.
7.5.2.3 Targets
A more conducive environment will be created for the participation of the public in the
implementation of GTP and thereby also in the realization of the vision of Ethiopia. The
communication targets will also aim to create consensus among the public with regard to the
significance of ensuring the renaissance of Ethiopia, basic constitutional and policy matters as
well as on the significance of the GTP. It is aimed also at effectively and accurately projecting
the political, social and economic achievements of Ethiopia. Finally the capacity of media and
artistic institutions will be built so as to effectively implement the communication plan.
7.5.2.4 Implementation Strategies
Initiatives that will be taken to realize government’s communication objectives during the
plan period are to significantly improve the coverage of the media across the country by
expanding television, radio and internet services and supporting infrastructures.
Communication infrastructure will be improved by establishing fibre optic based networks
and facilities on a large scale, upgrading the capacity of the personnel engaged in the print
media, undertaking capacity enhancing activities for top management and lower level media
personnel at the federal and regional levels; and ensuring the private sector is the main
beneficiary of the interventions.
The capacity of the communication sector will be upgraded by improving organisational
arrangements as well as the skills and capacity of the personnel involved, so as to ensure
positive and effective communication. The awareness of the public at large will be enhanced
to facilitate the national consensus building process. Innovative approaches will be employed
to achieve this purpose and to speed up the tempo of development. An international
symposium will be organised, after the GTP has been in implementation for two years, to put
forward a positive image of the country and of the achievements of the GTP to that point.
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CHAPTER 8.
CROSS CUTTING SECTORS
8.1 GENDER AND CHILDREN’S AFFAIRS
8.1.1 Strategic Direction
Women make up half of the country’s population and the government has taken a range of
measures to increase their participation in political, social and economic affairs. There were
significant achievements towards gender equality and the empowerment of women in several
areas during the PASDEP period. Ethiopia has ratified a number of international and regional
conventions and protocols on women and child rights. A policy has been adopted and
implemented to institutionalize women’s affairs in all federal and regional agencies. The new
family law has been endorsed and the penal code amended for the benefit of women. Much
has been achieved in the education and health sectors to enhance the participation and
empowerment of women, as well as ensure that women benefit equitably. Women’s
participation in decision making processes has been increasing in all spheres of government.
In the economic sector, their participation in agricultural packages, credit and cooperatives
services has increased. In urban areas the participation of women in small enterprises,
commercial and construction unions, and micro finance institutions has also expanded. These
are all significant results and efforts will be made in the GTP period to sustain and improve
on these achievements.
It is widely acknowledged that children are more vulnerable to man-made and natural risks.
The government took measures during the PASDEP period to strengthen and protect
children’s welfare and rights. A national children’s plan of action and an alternative child care
and support guideline were prepared. At federal and regional levels child rights enforcement
committees have been set up. A national coalition force has been established to address the
issue of children at risk. A national action plan has been designed and national committees
established to protect children from sexual assault and labour abuse. The family law and penal
code have been amended to increase and ensure the safety and security of children.
In the social sector, children in particular benefited from the expansion of education and
health services. Demonstration children’s parliaments have been established and children are
increasingly exercising their rights. Action was taken to coordinate and integrate the work of
governmental and nongovernmental organizations to support and care for orphans and
children at risk. The strategy now is to sustain and consolidate these achievements in the GTP
period.
8.1.2 Objective
The main objectives for gender development during the plan period are to ensure women’s
active participation in the country’s economic and social development as well as political
processes and equal benefits to women from the resultant outcomes. In addition, harmful
traditional practices that adversely affect the active engagement and welfare of women will be
abolished.
The main objectives for children’s affairs in the plan period are to ensure that children benefit
from economic growth, that adequate care and support is provided to orphans and children at
risk, that children’s participation in society is enhanced, that harmful traditional practices
affecting children are reduced, and that their safety and rights are respected.
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8.1.3 Targets
The following main targets are to be achieved during the GTP period.
Table 43. GTP Targets for Gender Development and Children’s Affairs
1, Increase the number of women entrepreneurs that graduate from operating micro enterprises to small and
medium scale businesses.
Increase the number of women who receive training in management and entrepreneurship.
Increase the number of women beneficiaries of credit and saving services.
2.
3.
4. Reduce the rate of abduction. early marriage. and female genital mutilation.
5,
Increase the participation of women in decision making process.
6. Mainstream children’s affairs in all sectors.
7. Support and care min vulnerable and children at risk.
8. Introduce community centred care and support initiatives for children at risk.
9. Reduce the rate of sexual assault and labour abuse of children.
10. Reduce illegal child migration and trafficking.
8.1.4 Implementation Strategies
Three key implementation strategies are identified with regard to women affairs. The first
concerns strengthening women associations and organizations. Secondly, a more conducive
environment will be created for women to more actively participate in and benefit from
development and governance programs through their associations and organizations. Finally,
for the participation of and benefits to women to be effective and sustainable, effective
coordination of women’s associations and organizations and all other actors is critical. In this
way an accountable monitoring mechanism will be established such that women’s affairs are
mainstreamed and accordingly executed in all sectors. Implementation strategies for
children’s affairs focus on preparing and implementing a comprehensive children’s policy,
promote community based care for vulnerable and children at risk, and taking measures to
reduce child abuse in the labour market, sexual assault and child trafficking.
8.2 YOUTH AND SPORTS DEVELOPMENT
8.2.1 Strategic Direction
Policy directions for youth focus on enhancing the participation of youth in democratic
governance, economic and social initiatives and ensuring youth benefit from the resultant
outcomes. For sports development particular focus will be given to promoting community
participation in traditional and modern sports and strengthening the support given to high
performing athletes so they are able to produce and sustain good results at regional and
international events.
8.2.2 Objectives
During the plan period the main objectives for youth and sports development are to increase
the participation of youth in democratic governance and economic development processes and
build capacity in the sports sector to produce top class athletes for regional and international
competitions.
1
8.2.3 Targets
The main targets for the plan period are presented in the following table.
Table 44. GTP Targets for Youth and Sports Development
1, Increase the number of youth centres at woreda level.
Mainstream youth development programs in other’ development programs.
Iner
se the number of youth volunteers.
4. Strengthen then technical, material and financial capacities of sport associations and committees at
different levels.
Expand sports fields and training centers.
6. Increase the number of private investors in the sports development, and thereby enhance community
participation.
Increase the number of managers and coaches in different sports.
Increase the number of tournaments and of participating athletes.
8.2.4 Implementation Strategies
Implementation strategies for youth development include strengthening of youth associations
and organizations and their all rounded participation. Awareness creation and introducing
youth to information and knowledge exchange activities, and encouraging youth
entrepreneurship will also be part of the strategy. Data bases relating to youth issues will be
built and research concerning youth undertaken. Coalitions will be formed and cooperation
with stakeholders initiated for the implementation of the youth package.
The key implementation strategy for sports development is to create an environment
conducive to the empowerment and participation of community organizations in sports
activities. Women and disabled people will be encouraged to participate in sports in their
work places, dwelling places and schools, according to their sports preference. The
government will, at all levels, support restructuring of the management of sports so as to
increase community ownership and participation and make sports activities more financially
self sufficient. Efforts will be made to increase the number and quality of sports specialists
and experts. The participation of rural communities in traditional sports will be enhanced and,
lastly, support will be given to local production of sports wear and materials.
8.3 HIV/AIDS PREVENTION AND CONTROL
8.3.1 Strategic Directions
HIV/AIDS presents a challenge to our development and poverty reduction endeavours. The
government responded to the potentially complex impacts of the disease by introducing, in
1998, its national HIV/AIDS policy and, in 2002, an Anti HIV/AIDS medicine supply and use
strategy. Survey results indicate that it is the 15-24 age working population, who are most
vulnerable to HIV/AIDS.
Since HIV/AIDS requires a longer term and improved care and treatment, it is a major social
problem. Thus the prevention and control of HIV/AIDS has been integrated into the health
extension program. This approach helps to avoid the stigma and discrimination that can occur
as well as raise communities’ awareness and ensure their support for People Living with
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HIV/AIDS. In addition it helps to integrate private and governmental efforts to sustainably
raise resources to support People Living with HIV/AIDS.
The main strategic directions for the HIV/AIDS prevention and control program are to expand
HIV/AIDS prevention activities, provide an all inclusive and good quality health service for
HIV/AIDS and related diseases, reduce vulnerability to HIV/AIDS, strengthen the systemic
collection and use of data relating to HIV/AIDS, increase the accessibility of HIV/AIDS
related health services, and provide special care and protection for HIV/AIDS patients and
families.
8.3.2 Objectives
The main objectives for HIV/AIDS prevention and control during the GTP period are to
reduce the HIV/AIDS incidence and prevalence rate, sickness and death rate and thus the
impact of HIV/AIDS on society as a whole.
8.3.3 Targets
The targets for HIV/AIDS prevention and control during the plan period are indicated in the
following table.
Table 45. GTP Targets for HIV/AIDS Prevention and Control
1. Reduce HIV/AIDS incidence (%) 0.28 0.14
2. Awareness rate about HIV/AIDS among 15-49 years old persons (%) 22.6 80.2
3. Adults on antiretroviral therapy (no) 246,347 484,966
4. Provide voluntary counselling and testing services (min ) 92
5. Children on antiretroviral therapy treatment (%) 95
8.3.4 Implementation Strategies
Implementation strategies for HIV/AIDS prevention and control are to build capacity for
prevention and control, strengthen community participation, and create awareness among the
population as a whole. In addition, HIV/AIDS prevention and control activities will be
expanded and special attention will be given to the vulnerable in the society. Gender equality
will be ensured, harmful traditional practices abolished and the stigma and discrimination
reduced. The accessibility of HIV/AIDS prevention and control services will be increased.
Voluntary testing and counselling service services will be expanded and treatment of sexually
transmitted diseases and condom distribution given due emphasis. The safety and protection
of persons who come into contact with blood will be ensured and immediate treatment
provided when they are exposed. The quality of and extended treatment and care service for
people living with HIV/AIDS will be strengthened and care and support provided for
HIV/AIDS orphans.
8.4 SOCIAL WELFARE
8.4.1 Strategic Directions
The social welfare program focuses on protecting the rights of and creating opportunities for
participation of disabled and elderly people so that they contribute fully to the development
process as well as to political, economic and social activities in the country. Social welfare
initiatives focus on preventing the recurrence of social problems that arose previously in the
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society. The programs implemented will mainly be community and family based, but
governmental and non governmental entities will also play their role.
Programs that aim to benefit the elderly need to ensure their dignity, freedom and social
status. Such programs will also focus on providing care and support for the elderly in the
community and hence maintaining close family and social ties. The programs for people with
disabilities aim to prevent disabilities, provide education and training, rehabilitation services
and ensure equal access and opportunities for people with disabilities. Measures that
strengthen positive attitudinal and behavioural changes of communities with regard to
disability will be taken.
8.4.2 Objectives
The main objectives are to provide an all inclusive and participatory social welfare and
security system that identifies and responds to social welfare challenges, expands care and
support programs for the mentally ill, disabled and the elderly and contributes overall to
development activities.
8.4.3 Targets
Two main targets for social welfare are set in GTP . The first concerns establishing a standard
social welfare scheme involving government, non-governmental agencies, elderly and people
with disabilities in the preparation and delivery. The second target refers to increasing the
coverage of social security services overall based on the envisaged scheme. Based on this
standard social welfare system, the number of disabled people who benefit from physical
rehabilitation and support, of people who have access to social welfare, and of people who
receive capacity development and awareness creation training, will be increased through the
coordinated efforts of the community, people with disability, the elderly, the government and
non —governmental agencies. Implementation Strategies
All implementation plans need to focus mainly on community based welfare systems. From
this perspective, implementation strategies for social welfare during the plan period are to
create a knowledge and experience sharing environment supportive of the elderly and help
them to contribute to the country’s development processes. Social welfare authorities will
collaborate closely with and coordinate social welfare programs to care and support the
elderly with stakeholders who are engaged in these programs. NGO care and support
programs for the elderly will be encouraged. Disabled people will be encouraged to
participate fully in economic, political and social development activities. Special attention
will be given to children with special needs and assistance will be provided to help them start
and continue schooling. Government will take steps to ensure that people with disabilities
have equal job opportunities and participate in economic development without discrimination
or stigma. Measures that minimize barriers to the movement of people with disabilities, for
instance in schools, homes, recreation centres and health facilities will be taken. Special
support for people with disabilities’ mental and physical needs will be provided. Training and
rehabilitation programs will be provided and communities’ participation in social welfare
programs enhanced.
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8.5 LABOUR AFFAIRS
8.5.1 Strategic Directions
There are three key policies adopted for labour affairs in the GTP. These are
To expand job information services by setting up a data base system to identify job
opportunities. The system will enable analysis of labour market demand and inform policy
makers, employers, economically active citizens, research institutions and education and
training centres.
To expand workplace support and cooperation to encourage the resolution of labour
disputes by bilateral (employee and employer) and trilateral (employee, employer and the
government) dialogue and discussion. The government will also encourage improvements in
working environments and job safety so as to increase productivity.
Monitor of the working environment to ensure that employees and employers abide by the
relevant rules and regulations and respect their duties and responsibilities to ensure job safety.
8.5.2 Objectives
The objectives for labour affairs during the plan period are to ensure expansion of job
information services, job safety and stability of the working environment and enhance labour
productivity. Achievement of these objectives will contribute to overall socio-economic
development.
8.5.3 Targets
The following targets are to be achieved during the plan period
Table 46. GTP Targets for Labour Affairs
Ensure an effective enforcement of the labour laws.
1.
2s
Launch a job information service.
Support job seekers.
Provide capacity development training to employees and employers.
Launch dialogue and discussion forums at workplaces.
Provide support to solve labour disputes through dialogues and discussions.
2a wey
Strengthen monitoring of working environments.
8.5.4 Implementation Strategies
During the plan period implementation strategies for development of labour affairs are to
effectively implement the labour laws through participation of stakeholders’, strengthen
public awareness of labour laws, enhance labour affairs implementation capacity and expand
job information centres.
8.6 POPULATION AND DEVELOPMENT
8.6.1 Strategic Directions
Ethiopia’s population policy aims to lay the foundation for harmonizing the rate of population
growth with the country’s capacity to develop and use natural resources, and so improve the
overall living conditions of citizens. One of the features of Ethiopia’s demography is that a
large number of the population join the national workforce each year. The ratio of the
population of working age to the total population was 54% in 2008 and estimates are that each
year an additional 1.2 mln people join the national workforce. So when the pool of
economically active members of the population increases in size, provided that they receive
the support necessary to be productive, the country’s workforce plays a significant role in
increased economic growth and development. For this reason, economic growth and
development benefits from the opportunity presented by the nature of Ethiopia’s
demographics. Moreover, the policies and strategies adopted by education, health, agriculture,
industry and other sectors will contribute positively to effective implementation of the
population policy.
8.6.2 Objective
The main objective of the population development plan during the GTP period is to lay down
foundations for harmonizing Ethiopia’s main demographic characteristics with desired
development outcomes of the country’s economy.
8.6.3 Targets
The following targets for population and development are to be achieved during the plan
period.
Table 47. GTP Targets for Population and Development
1. Expand the health extension program’s provision of family planning services.
2. Mainstream the population development agenda in, and ensure effective implementation of, the GTP
development programs of every sector.
3. Improve community participation in, and awareness of issues relating to, population development.
4. Support and strengthen population education as it is addressed in primary and secondary education
programs.
Implement the national population, information and communication strategy.
Increase the ratio of family planning users to 65% by the end of the plan period.
Enforce the family law provision of a minimum marriageable age of 18 years.
Develop a population data base to assist research into migration, urbanization, etc.
CRN aw
. Execute the national plan of action for population development so as to provide for the effective
implementation of population policy.
10. Establish the national population council.
8.6.4 Implementation Strategies
The first key implementation strategy to be pursued during the plan period is expanding the
coverage and alternatives of family planning services. The second strategy concerns
empowerment of women through education, economic and political participation. Community
awareness about population issues will be enhanced through the mass media. Based on these
strategies, women would be put in a better position to decide for themselves on the number of
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children to have. The capacity of stakeholders working on population issues will be enhanced
through knowledge and experience sharing forums.
8.7 CULTURE AND TOURISM
8.7.1 Strategic Directions
During the plan period, the strategic directions for the culture and tourism development
program are to enhance the role tourism and culture play in socio-economic and political
development initiatives. The tourism industry policy directions aim to make Ethiopia one of
the best tourist destinations in Africa. Tourism industry products and services will be
expanded in quantity and quality to enable them to compete globally. Women and youth will
benefit from the sector’s development. Cultural and tourist attractions will be used to build an
attractive image of the country. The cultural, natural and historical heritages and values of the
country would be developed so that they play a significant role in social and economic
development as well as in the democratization process of the country. Cultural goods and
services will be promoted to play a greater and positive role in the country.
8.7.2 Objective
The main objectives for culture and tourism, during the plan period, are to ensure the
sustainable development and conservation of tourism, Ethiopia’s diverse and unique culture
and cultural heritage sites, and encourage the community’s participation so that, overall,
cultural activities and tourism contribute to socio-economic development and democratization
process in Ethiopia.
8.7.3 Targets
The following targets are to be achieved during the plan period.
Table 48. GTP Targets for Culture and Tourism
levelop and promote all designated cultural heritage, national attractions, and tourist
2. Ensure that earnings from the natural, culture and tourism sectors contribute to the overall vision that
Ethiopia becomes a middle income country.
Ensure that culture contributes to strengthening of integrity and democratization of Ethiopia.
Make more accessible tourist attractions and cultural heritage events and sites, for tourism and research.
The promotion of cultural and tourism contribute to build a better image of the country.
awry
The culture and tourism sector contribute significantly to foreign exchange earnings of the country.
8.7.4 Implementation strategies
The implementation strategies that will be pursued during the plan period include
encouragement for all stakeholders in the sector to follow an integrated approach in
implementing the culture and tourism program. Implementation gaps in the development of
culture and tourism will be identified and rectified, while the full participation of communities
in its development will be ensured. The capacity of cultural and tourist facilities and service
providers will be enhanced and accreditation will be granted when standards required are met.
Strong linkages to global tourism markets will be facilitated in partnerships and through
cooperation.
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8.8 SCIENCE AND TECHNOLOGY DEVELOPMENT
8.8.1 Strategic Directions
The following six strategic directions will be pursued during the plan period by the science
and technology development program.
Building innovations systems will build an_ institutional framework with policy
implementation guidelines. Research will be conducted to analyze policy frameworks and
develop a science and technology development plan consistent with the social and economic
strategies of the country. The implementation of this plan will be monitored and evaluated.
Adequate resources will be allocated and funds secured to build innovation in science and
technology, with active engagement in bilateral and multilateral innovation projects.
Technology transfer and development will involve increased coordination of and
integration with stakeholders to identify technology demand, build value adding information
and technology data bases, enhance the support systems, and develop a monitoring system for
technology duplication and adaptation processes. Research and technology capacity
development will focus on developing research and technology capacity in industry, water,
energy and other development sectors, support research projects and strengthen research
infrastructure.
Human resource development will aim to produce high quality human resources capable of
expanding technological innovation and adaptation, and capable of managing science and
innovation systems effectively. Intensive work will be done at primary and secondary
education level to realize the target of a 70/30 science and mathematics enrolment rate at
tertiary level.
Quality and standardization strategies will build an accreditation system to international
market standards for quality export goods and services, to enhance their competitiveness.
Ethiopian quality and standardization guidelines will be prepared and assessment and
metrology organs accredited.
A Science, technology and innovation information development initiative will compile
and distribute national and regional science and technology information in databases,
statistical abstracts and bibliography. A web platform will be provided to make access to the
information easy and effective and an organisation established to facilitate and manage the
ative.
A focus on copyright and /intellectual /property rights will encourage innovation,
strengthen copyright and intellectual property rights, and encourage local innovators to
develop local technological capacity and develop the industry.
8.8.2 Objectives
The main objectives for science and technology development during the plan period are to
establish organisations and agencies that contribute to improvements in productivity and
quality of local produce. Means to facilitate technological transfer will be established. An
innovation strategy will be implemented and high quality human resources produced. Quality
and standards information will be used for technological transfer to help exports of services
and products compete in the global market. Measures to control radioactive materials and
radiation will be taken to ensure citizens’ safety. Intellectual property rights and science and
technology development systems will be strengthened.
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8.8.3 Targets
The following targets are to be achieved during the plan period
Table 49. GTP Targets for Science and Technology Development
Increase first level ethanol coverage (%) 10 75
Increase the number of patent documents (min) 30 50
Reduce the coverage of tsetse fly (%) 95
Use 5 min patent information documents for technology transfer and adaptation.
Establish universities specializing in selected science and technology subjects.
Po ye Pe) Le bee
Strengthen the already existing agricultural, health and information technology research institutes with
essential materials and financial resources.
7. Establish technology and research institutes for industry, electronics and micro electronics, water,
construction, energy and material sciences.
8. Establish laboratories for water, medical science. electromechanical, chemical and geochemical, material.
concrete testing and geo-techniques subject areas.
9. Establish worldwide accreditation in five measurement areas in International Organization for
Standardization / International Electro technical Commission 17025 laboratory quality management system.
10. Revise 5000 national standards and 5000 new standards for technology transfer.
11. Establish accreditation for 60 science and technology organisations which meet national and international
quality standards.
8.8.4 Implementation Strategies
A wide range of implementation strategies for science and technology development will be
pursued during the plan period. A national innovation system will be launched and an
organisation to manage the system will be established. Research institutes for technological
adaptation will be established. An administrative and legal system for copyright that meets the
country’s needs; will be created. Foreign technology flows into the country will be
encouraged. Science and technology institutes capable of producing competent scientists and
engineers will be strengthened. Human resource capacity to use, copy, adapt, improve and
develop technologies will be created. Existing research institutes will be restructured and
strengthened so as to contribute to the country’s technological capacity. Strategies that
strengthen linkages between research institutes and industries will be introduced. Well
structured and organized bodies that help to produce innovative technologies will be
established. Implementation of mandatory national standards will be strengthened. Research
activities related to collection, analysis, protection and distribution of science and technology
information will be supported. The organization will be established to protect and develop the
country’s intellectual property and the system to use intellectual property for economic
development will be strengthened. Synergies will be facilitated and linkages put in place
between organizations working in environmental protection and public safety. Research and
capacity building cooperation programs in science and technology that contribute to national
development initiatives will be established and expanded.
8.9 ENVIRONMENT AND CLIMATE CHANGE
8.9.1 Strategic Directions
Environmental conservation plays a vital role in sustainable development. Building a ‘Green
Economy’ and ongoing implementation of environmental laws are among the key strategic
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directions to be pursued during the plan period. In building a ‘green’ and climate change
resistant economy there are two key issues, adaptation to climate change and mitigation of
green house gases.
Adaptation to climate change: The climate is a natural phenomenon which influences
positively or negatively social and economic activities. Climate has its own peculiarities and
affects future opportunities for, and prospects of, the country. Even though Ethiopia’s
greenhouse gas emission rate is minimal, the country is affected by climate change. There are
agro-ecological zones (dry land and semi-dry land areas) and economic sectors which are
more vulnerable to climate change. Research findings show that Ethiopia annually loses 2%
to 6% of its total production due to the effects of climate change. In Ethiopia climate change
causes sporadic distribution of rainfall in dry and rainy seasons. In some cases excessive
surface water runoff results has catastrophic effects, for instance very rapid filling and
emptying of ground water reservoirs has been witnessed, as has biodiversity degradation. The
evidence of these impacts shows how very critical it is that climate change adaptation
strategies are put in place during the plan period and thereafter.
Mitigation of green house gases: Greenhouse gas emissions by developed nations have been
enormous since the industrial revolution, and so it is mainly the responsibility of developed
nations to reduce greenhouse emission rates. Ethiopia has the lowest per capita consumption
rate of fossil fuels. It has almost no contribution to the greenhouse gas emissions that are the
cause of adverse climate change impacts. On the other hand, in Ethiopia there are indigenous
knowledge, practices and systems which reduce biogas emissions. In the agriculture sector
farmers use biologically based inputs like cow dung and compost as fertilizers. Ethiopia’s
contribution to creating a stable and more beneficial climate is very clear. In addition, energy
generated from wind and geothermal sources can meet Ethiopia’s energy demands, as well as
those of neighbouring countries and further contribute to climate conservation. Without
putting pressure on farm land, ethanol production can be doubled. The forest coverage in the
northern part of Ethiopia has been recovering since the past 20 years. There are practices in
Ethiopia which can be adopted for mitigation of the adverse impacts of climate change.
Focusing on economic development which mitigates climate change effects is very important
from the point of view of the country’s economic interests, its capacity to develop renewable
energy sources and the prospects for its future energy consumption. The economic
development direction pursued by the Ethiopian government contributes to climate change
mitigation and so may generate new and additional environmental support funds from
developed nations. According to the Copenhagen Accord and the Kyoto Protocol,
technological and financial support has been put in place for climate change mitigation works
carried out by developing nations. For this reason it is timely to build climate mitigation
capacity so as to benefit from international financial support for environmental activities.
During the plan period focus will be given to building capacity to mitigate the negative
impacts of climate change. The current impacts and trends relating to climate will be
identified and information on the possible outcomes and existing environmental management
practices will be assessed and disseminated. Steps will be taken to either avoid the impacts of
climate change predicted or limit the impact to an acceptable level.
8.9.2 Objectives
The main objectives for the environment and climate change initiatives in the GTP are to
formulate and effectively implement policies, strategies, laws and standards which will foster
social and green economy development so as to enhance the welfare of citizens and,
environment sustainability.
8.9.3 Targets
The following targets are to be achieved during the plan period
Table 50. GTP Targets for Environment and Climate Change
1. Energy generated from renewable energy resources (MW) 8,000
2. Sales of ethanol and biodiesel (mln liter) 35
3. The minimum area covered by forest (km?) 2,000
4. Area of productive forest developed (km? 25,000
5. Area of natural forest developed (km?) 2.876
6. Area of forest of trees that shed leaves (km*) 4,390.6
7. Area of designated park land (km?) 60.360
8. Area of designated wetland (km?) 51,496
9. The area of farmland to which compost will be applied (km?) 40,000
10. Land area utilised by mixed farming & forestry for bio gas emission mitigation (km*) 261,840
11. The amount of urban waste used to produce methane gas (mln m3) 20
12. ‘The climate change resistant green economy will be strengthened and measures will be taken by all tiers of
government for preparation and implementation of environmental action plans in all regions.
13. Policies, laws, strategies and action plans will be put in place to address climate change mitigation.
14. Dams, roads and infrastructure facilities which contribute to poverty reduction but are vulnerable to impacts
of climate change will be identified and mitigation measures will be put in place
15. Measures will be taken to mitigate climate change impacts to conserve the biological resources.
16. Regions and cities/towns pass and implement laws to build a measurable and achievable green economy
17. Establish a national system for environmental NGOs to assist them in the efforts to build green economy.
18. A dry waste management law will be implemented at all federal and regional levels.
19. The law on biogas emission rate by the 8 high emission rate industries will be fully implemented.
20. To make environment policy effective prepare a proposal for 5 additional environmental protection laws.
21. Reporting to the public on the performance of the 5 year environment development plan will be timely.
22. A national system will be built to help Ethiopia build a carbon free economy by 2025 and qualify for
additional global environment fund support.
8.9.4 Implementation Strategies
The following implementation strategies will be pursued during the plan period. A plan of
action, strategies, laws, standards and guidelines to implement measures that are designed to
lessen the effect of forecasted climate change impacts will be prepared. Programs to develop
the capacities of those stakeholders who are essential to ensuring effective implementation of
the action plans, laws and guidelines will be developed and implemented. Local and foreign
technologies for climate change mitigation will be collected and adapted. The capacities of
the private sector and community organizations for fund raising globally will be enhanced.
Environmental activities, public awareness and experience and knowledge sharing on
environment management practices will be developed and community participation in
environmental activities increased. Good practices of environmental protection that are
identified will be published and distributed. Certification, standardization and accreditation of
the experts and organizations working on environmental issues and climate change mitigation
will be put in place. International environmental laws and protocols will be ratified and
implemented. Appropriate action will be taken when offences against environmental laws are
committed.
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CHAPTER 9.
OPPORTUNITIES, RISKS AND CHALLENGES
IN IMPLEMENTING THE GTP
Considering the time horizon and scope of the GTP, it is inevitable that there will be
opportunities that arise and unforeseen risks and challenges that emerge as the plan unfolds.
The government has sought to take these into consideration in formulating the plan, by
assessing recent performance and achievements as well as challenges encountered, and
evaluating the socioeconomic, political and the international economic contexts at the time the
plan was conceived. The opportunities should contribute to the success of the GTP. The risks
and challenges are expected to pose obstacles to the achievement of the GTP’s objectives and
targets and hence entail mitigation measures. The government has assessed the potential
positive and negative external developments that may affect the performance of the Ethiopian
economy during the five year period, and the environment in which the plan is implemented.
The GTP has built in measures to manage the effects of each of these factors. It is timely that
the GTP demands more concerted efforts considering the objective of achieving the MDGs by
2014/15 and the country’s vision by 2020-2023.
9.1 OPPORTUNITIES
The encouraging results and good practices achieved in the past five years have brought about
strong enthusiasm and confidence among citizens that poverty can indeed be eradicated from
the country. This enthusiasm is considered as a good opportunity to strengthen the national
consensus on the development and governance agendas of the country and thereby to mobilize
the wider public more actively to support the implementation of the GTP. A lesson has been
learnt that macro economy stability and sustainable economic growth is possible with the
policy and administrative measures the government has been taking. The country’s
comparative advantages, plentiful labour, a huge domestic market and substantial natural
resources potential, also provide a good opportunity for speeding up development in the
coming five years. The GTP period is a period where the huge investments made so far in
infrastructure and human resource development will result in greater returns by increasing the
productivity of the economy and by encouraging more productive investment.
Thus the GTP period is expected to experience improving productivity and production levels
in all sectors by applying the best practices that have been identified to date and capitalizing
on the good opportunities available. The capacity building and good governance packages that
have been implemented at different administrative levels also provide an opportunity in that
they have created relatively better capacities even at lower levels of administrations and in
communities. This helps to increase public participation for greater allocative efficiency and
results, and for more effective, transparent and accountable service delivery in all sectors. The
opportunities described will serve as additional driving forces for development in the GTP
period.
The investment needs of the GTP could be mobilized by increasing the communities’
participation in effective domestic revenue collection, savings and resource utilization. In
addition, the good relationship between the government and development partners and the
government’s established commitment to eradicate poverty are expected to encourage
increased external resource inflows, contributing to the success of the GTP.
9.2 RISKS
The main foreseeable challenges in the implementation of the GTP include low
implementation capacity, low national saving rate that is unable to support the investment
needs of the economy, and the unpredictability of external financing. In addition, it is
anticipated that global market price fluctuations could pose some challenges to effective
implementation of the plan.
9.3, MANAGING RISKS
Risk mitigation measures that address the foreseeable risks in the development process
mentioned above include improvements in the tax administration system and broadening the
tax base so as to increase domestic resource mobilization. Government, organizations and
individuals will be encouraged to increase their savings to provide adequate resources for the
country’s investment needs. The favourable policy and administrative environment created
will support effective utilization of the capacities of communities and the private sector as
development partners in the development and governance endeavour of the GTP. External
finance resources will be mobilized and, where secured, will be effectively used for
investment in priority sectors. The contribution of local and international NGOs and CBOs in
the implementation of the development plan will be strengthened.
Measures will also be taken to address capacity limitations by strengthening the
implementation of the civil service reform program at all levels. Foreign exchange earnings
will be increased by expanding export capacity, and substituting imports with competitive
local products. Measures to guarantee sustainable and rapid agricultural and overall economic
growth like scaling up of best practices, and expanding irrigation will be taken as risk
mitigation initiatives. The public expenditure management reforms introduce to ensure
stringent recurrent expenditures will be strengthened such that the limited available resources
are efficiently and effectively utilized for productive purposes.
CHAPTER 10.
MONITORING AND EVALUATION OF THE GTP
10.1. BACKGROUND
The main objective of the GTP monitoring and evaluation system is to follow up on
implementation of the sectoral and cross cutting plans included in the GTP so as to ensure
effectiveness of government policies and strategies. The M&E system provides a tool to
follow progress in achievement of planned targets, maintain the coherence and integration of
the overall economy, take timely corrective measures when needed, and manage the
development process effectively. Ethiopia’s M&E system is based on the sectoral approach
and is a tool whereby timely and reliable information on results, from the Federal to the local
levels of government, is compiled and reported.
The GTP’s M&E system is built on the existing Welfare Monitoring System Program which
has been in place since 1996. It is imperative that the M&E system has adequate data inputs
and to support this need, the Central Statistical Agency (CSA) recently launched the new
National Strategy for the Development of Statistics (NSDS) in consultation with relevant
stakeholders. The NSDS will help to generate data through surveys and censuses to monitor
implementation progress of the GTP. The administrative data generated by sectoral line
ministries will also provide an input to the M&E system. Data from censuses, surveys and
administrative sources will be used to generate full-fledged economic analysis and reports by
the Ministry of Finance and Economic Development.
The main roles and responsibilities played by the major actors in the GTP M&E system are
outlined below.
10.2 MONITORING THE OVERALL PLAN PERFORMANCE BY MOFED
MoFED chairs the Welfare Monitoring Technical and Steering Committees that play a role at
the national level, in managing the overall economy and coordinating the M&E system. The
background reports prepared by the members of poverty-oriented federal executing bodies
serve as a basis for the reports prepared by MoFED. Sectoral annual implementation, M&E
reports generate data to measure output and input results against GTP performance indicators.
Reports prepared by the CSA, based on information from surveys, generate data to measure
outcome and impact results against GTP performance indicators. Based on the information
available from surveys as well as from administrative sources, MoFED prepares annual
implementation assessment reports as an input to the Welfare Monitoring System Program
and for timely distribution to the relevant government authorities as well as to non-
governmental bodies.
MOoFED also provides up-to-date monitoring of welfare, macro economic performance,
national accounts, foreign resource mobilization and administration, public debt management,
public accounts, etc. MoFED holds regular annual meetings of Welfare Monitoring Technical
and Steering Committees to address challenges faced in the implementation phase of national
development plans and facilitate the learning and sharing of emerging good practices. As part
of the GTP M&E, focus will be given to experiences and emerging best practices so as to
generate a learning and timely information sharing culture among implementing bodies.
Annual and end of plan period targets are set in each sector and, to summarise and present
these in a consistent coherent form, a policy matrix is prepared and published by MoFED.
The GTP policy matrix will present the targets set and detail possible measures to be taken to
improve performance during the plan period.
10.3 THE ROLE OF FEDERAL EXECUTIVE BODIES
Federal implementing agencies play a critical role in ensuring that the national M&E system
is robust and useful. As the M&E system becomes more robust and consistent it will be
possible to provide more timely and relevant information to stakeholders. The M&E system
has a national context as the targets set in the plan are focused at the national level.
Federal implementing agencies prepare and submit annual progress or implementation
assessment reports to MoFED. They contain detailed information from the local levels of
government, woredas, kebeles and city governments/administrations. As the main
implementation agencies of the national development plan are the regions, city
governments/administrations, woredas and kebeles, intensive capacity building activities will
be undertaken in the next five years, in sector line ministries responsible for strong and
coherent linkages with the lower administrative levels, to ensure timely and accurate
information flow and feedback for the national M&E system.
During the plan period, implementation agencies at the federal, regional and local levels
should ensure that adequate human resources are provided and sufficient M&E capacity
development takes place to ensure the M&E system is operationally effective. To realize this
objective, MoFED will work in close collaboration with Bureau(s) of Finance and Economic
Development (regional), woreda and city governments/ administrations to facilitate access to
technical assistance for M&E capacity development.
10.4 CENSUSES AND SURVEYS FOR THE M&E SYSTEM
The CSA’s mandate is to gather socio-economic and demographic data through integrated
censuses, surveys, continuous registration and administrative recording systems and compile,
analyze and present to users useful data in user friendly formats. The CSA also provides
technical support to government and other implementing bodies on statistical data keeping
and builds capacity continuously for registration, administrative data gathering, compilation,
analysis and reporting systems.
To fulfil its mandate the CSA has been implementing the NSDS since 2009. The NSDS has
been revised to address the data needs of GTP and it has defined strategic directions and
designed an action plan to compile and analyze data from censuses, surveys and
administrative sources. For M&E of the progress towards achievement of MDGs and the
targets set in the GTP the CSA plans to conduct the following surveys during the plan period.
Table 51. Surveys to be Carried out by CSA During the Plan Period
General agricultural pr:
4. Land management survey. 4. Strengthen gender statis'
“Agricultural production survey (‘Mel Preparation for the 2017 national population
and ‘Belg’ Season). and housing census.
nvironment statistics. Strengthen vital statistics.
estock. poultry and beehive surv
125
Update population census.
Undertake Demographic & Health Survey.
Undertake inter census study.
Natural resources and wild animal survey.
). Pastoralist areas survey
11. Rural economy survey. Consolidate gender statistics.
Consolidate vital statistics,
eS
Large and medium scale manufacturing
industries survey.
etail price sl
EO ~
__ 4. Wageindex, ___ 3. Distributive trade and service sector survey
3. 4, Construction survey.
7. Household income and consumption
survey. statistics.
7._ Strengthening export trade statistics.
8. Producers and amount index for manufacturing
11. Street children survey industries.
12. Welfare monitoring survey. 9. Survey on IT use on large and medium scale
manufacturing industries.
_10.Survey on mining exploration.
11, Quarterly survey on large and medium
manufacturing industries.
12. Build data base on water distillation and
distribution.
13. Survey on cottage industry and the informal
sector.
To achieve the above targets the following strategies will be implemented.
Ensure implementation of statistics law and guidelines: The strategy focuses on
establishment of a unit to coordinate the National Statistical System. The unit’s purpose will
be to establish common standards, classifications and definitions for all producers of official
statistics.
Improving data quality and standards: The strategy will focus on improving data quality in
the national statistical system.
Enhancing advocacy and use of statistic: The strategy aims to improve statistical launch
procedures and press relations, train statistical users including the media and establishing
regular relations with data users.
Methodological improvements and statistical modernisation: The strategy aims to
generate feedback from stakeholders’ consultations.
Capacity developments in the national statistical system: The strategy aims to build
stakeholders’ capacity in the National Statistical System.
Ensure the NSDS is direct input for monitoring and evaluation of the GTP and other
interventions: The strategy will focus on the responsibility of the NSDS for official statistics,
for instance, the adequacy of NSDS statistics used by the GTP monitoring systems will be
checked, as well as the processes for quality assurance of monitoring and evaluation surveys.
126
In addition, the following system-wide data improvements will be implemented
Coordination of the national statistical system: The strategy focuses on ensuring statistical
ethics, quality and standards. The data quality standard agreement endorsed by stakeholders is
expected to be endorsed by the statistics council and will then be implemented, sufficiently
funded, well equipped and staffed.
Technology improvements: The aim is to strengthen and enhance technology use, including
utilization of GPS, high speed portable computer, satellite imagery and computer aided
telephone data collection.
Mobilisation of support: The CSA will mobilize support for NSDS implementation and will
aim to achieve the Paris declaration agreements relating to national statistics. CSA will align
and harmonize development partners’ support for the NSDS and establish a committee to
accomplish this task.
Business Process Re-engineering: The CSA is implementing the Business Process Re-
engineering process and, in the process, has adopted many NSDS proposals. The BPR
document contains an action plan and a performance management plan. The plans will be
evaluated quarterly and an annual report presented to the statistics council.
Statistical System Capacity building: A key implementation strategy involves a number of
measures that will be taken to build the capacity of statistical systems during the plan period.
All CSA’s branch offices will be networked. The data collection, compilation and
dissemination system will be improved. Data analysis at branch office level will be
introduced. A statistical data quality assurance document for Ethiopia will be prepared. A data
quality evaluation framework will be prepared. Data quality in each sector will be evaluated.
Data producers and users will be trained. A catalogue for the NSDS will be prepared and links
between CSA and other websites will be put in place. Postgraduate level training for experts
at the CSA will be provided and a new building to accommodate CSA will be constructed.
Greater emphasis will be given to enhance the internal capacity of CSA field surveys for
effective implementation and data management.
10.5 Geo-Information
During the plan period, emphasis will be given to building a national geo-information system
that is quality assured and will generate consistent and useful geo-information. Once the
system is operational it will provide timely and geo-information supported by air photography
and remote sensing.
Federal Democratic Republic of Ethiopia
Growth and Tran sformation Plan
20 10/11 -20 14/ 15
Volume I: Main Text
Ministry or Finance and
Economic Development
November20 10
Tabl e of Contents
Page No.
Ta ble of Co nte nts
List of Tab les
List of Figures
List of Acronyms
FOREWORD
IV
V
vi
VII
PAG EC HAPTERS & SECT 10~S
INTRO DUCTI ON _
CHAPTER I. ACHIEVEMENTS AND CHALLENGES UNDER PASDEP 4
1. 1. Mac roeconomic Performa nce 4
1.2. Performance of Eco nomic and Soc ial Sectors 9
1.2. 1.
1.2.2.
1.2.3.
1.1.4.
1.2.5.
1.2.6.
1.2.7.
1.2.8.
1.2.9.
1.2. 10.
1.2. 11.
Agr icu lture a nd Rura l Devel opment 9
Trade a nd Industry Devel op men t 10
Mining 13
Road Deve lopm ent 13
Rail Netwo rk. Dry Port and Transpo rt 13
Tel ecommunications 14
Energy 14
Water and Irrigation Devel opment 15
Co nstruction and Urban Devel op men t 15
Education 16
Hea lth 17
1.3. Cross C utting Sectors 17
104. Good Gove rnan ce and Democratization 19
1.5. Cha llenges and Good Pract ice in Implem enting the PASD EP 19
1.5. 1. Major Cha llenges Encountered 19
1.5.2 . Good Pract ices Learned 20
CHAPTER 2. BASIS, O BJECTIVES AND ST RAT EG IC PI LLARS OF TH E GTP 21
2. 1. Basis of G rowth and Transformation Plan 2 1
2.2 . Objecti ves o f the Plan 22
2.3.6 Strengthe ning good gove rnance and capacity building 26
2.3.7 Empowe ring women and yo uth and ensuring the ir benefits 27
CHAPT ER 3. MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRAN SFORMATION PLAN 28
3 . 1. Mac roeco nom ic Objectives 28
3.2. Mac roeco nomic Pol ic ies and Goa ls 28
3 .2. 1. Econ omic Growth, Sav ings and Investment 28
3 .2.2. Prospects for Growth, Well being and Po vert y 3 1
3 .2.3. Fisca l policy 32
3 .2.4. Mon etar y Policy, Exte rna l Sector and Financ ial Syste m 33
3.3 . Se lected Macroecon omic a nd Sectoral Targets 34
CHAPT ER 4. FINANCING THE PLAN 38
4. 1. Government Revenue 38
4.2. Go vernment Expenditure 39
4.3. Financi ng 40
4.4 . OfT Budget Financi ng of Infrastructu re A nd Industrial Program s 4 1
4.5. the ro le of the Private Sector and the public .44
CHAPT ER 5. ECONOMIC SECTORS I>EVELOPM ENT PLAN 45
5. 1. Agriculture and Rural Deve lo pment 45
5.2. Industry 56
5.3. Trade 63
5.4. Mining 64
5.5 Infrastructu re Develo pment. 68
5 .5. 1 Roads 68
5 .5.2 Railway Tra nsport 70
5 .5.3 Energy 7 1
5.5.4 Teleco mmuni cation 75
5.5.5 Potable Water Supply and Irrigation Devel opm ent 77
5.5.6 Tran sport Serv ice s 78
5.5.7 Mar itime Transport 80
5.5.8 Air Tra nsportation Services 8 1
5 .5.9 Urba n and Co nstruction Dev e1op ment.. 82
CHAPT ER 6. SOC IAL SECTOR DEVELOPMENT PLAN 86
7.3 Justice Sector 101
7.4 Democracy and Good Governance 104
704.1 Strengthen ing De mocratic System 104
7.4.2 Good Gove rnance 106
7.5 Med ia Broadcast a nd Communication 108
7.5. 1 Media Broadcast. 108
7.5.2 Government Communication 108
CHAPT ER 8. C ROSS CUT TI NG SECTORS 110
8. 1 Gende r a nd Children' sAffa irs 110
8.2 Youth and Sports Development 111
8.3 HIV/AIDS Prevention a nd ControL 112
8.4 SOCIAL Welfare 113
8.5 La bour Affa irs 115
8.6 Population a nd Development 116
8.7 C ulture and Tour ism 117
8.8 Scie nce a nd Techno logy Development.. 118
8.9 Environment and Climate Change 119
CHAPT ER 9. OPPORTUNITIES, RISKS AND CHALLENGES IN
IMPLEMENTING THE GTP 122
9. 1 Opport unities 122
9.2 Risks 123
9.3 Managing Risks 123
CHAPT ER 10. MON ITOR ING AN)) EVALUA TI ON OF T HE GT P 124
10.1 . Background 124
10.2 Monitoring the Overa ll Plan Performance by MoFED 124
10.3 T HE Role of Federa l Executive Bodies 125
l OACEN SUSES and Surveys for the M& E System 125
10.5 Geo-lnformation 127
Table 1.
Table 2.
Table 3.
Table 4.
Tab le 5.
Tab le 6.
Table 7.
Table 8.
Tab le9 .
Tab le 10.
Tab le II.
Tab le 12.
Tab le 13.
Tab le 14.
Tab le 15.
Tab le 16.
Tab le 17.
Tab le 18.
Tab le 19.
Tab le 20.
Tab le 2 1.
Tab le 22 .
Tab le 23.
Tab le 24.
Ta ble 25 .
Tab le 26.
Ta ble 27 .
Ta ble 28.
List of Ta bles
Titl e
Growth in Gross Domestic Product a nd Main Sectors Share as Percent of GOP 4
Percentage Share of Aggregate Consumption & Savings to GDP @CMP 6
Percentage Share of Reven ue, Expe nditure and Deficit to GDP @CM P 7
Import and Export trade share of GOP (%) 8
Real GOP Proj ection Annual Growth Rate (%) 28
Proj ected Trends in the Structure of GOP by Industria l origin (% share) 29
Demand Side GOP as Ratio to GOP @ Current Market Prices (%) 29
Proj ected Tre nds inthe Structure of GOP growth by Industria l or igin (%) 30
Proj ected Trends in the Structure of GOP by Industrial origin (% share) 30
Proj ected Tre nds in Structure of GOP from the Demand Side High Case
Scenario (% share in GOP) 3 1
Fisca l Projection As a Percentage of G OP at @CMP (Ba se case Scenario) 33
Selected GT P Ta rgets 34
Proj ected GTP Re ven ue Req uirements Under Base Case Scenario (in mIn
ETB) 39
Proj ected government Expenditures, Base Case Scenarios (m In ETB) 39
Proj ected Budget Gap During GT P, Base Case Sce nario (in mIn ET B) .40
Resource need by Implementing Sectors, Budget Deficit and Financing (in mIn
ETB) .4 1
Off Budget Fina ncing Requ irement of Infrastructure and Industr ia l
Development Program s 42
Off Budget Fore ign C urrency Requirement of Infrastructure & Indu strial
Develo pment Programs 43
GT P Targets for Agriculture and Rural Development 47
GT P Targets for Micro and Sma ll-Scale Enterprises 58
GT P Targets for Mediu m and Large Scale Manufacturing Industries 59
GT P Targets for Chemica l Industries 60
GT P Targets for Pharmaceuticals Industry 60
GT P Targets for Agro Processing Industry 6 1
GT P Targets for Public Enterprises Ma nagement and Privatizat ion 6 1
GT P Targets for the Mining Sector 65
GT P Targets for Mineral and Petrole um Investme nt Expansion 66
GT P Targets for Artisanal Mining and Marketing Promotion 66
Tab le 3 5. GT P Tar gets for the Mar itime Transport Sub Sector 80
Tab le 36 . GT P Tar gets for A ir Transpo rtation Service s Sub Sector 82
Tab le 3 7. GT P Target s fo r Co nstruction Devel opment Sub Sector 84
Tab le 3 8. GT P Target s for Urban Deve lopment Sub Sec tor 84
Tab le 39. GT P Tar gets for Ge neral Ed ucation 89
Tab le 40 . GT P Tar gets for Tec hnica l and Vocat iona l Ed ucation and Tra ining 89
Tab le 4 1. GT P Target s for Higher Ed ucation 89
Ta ble 42. GT P Target s for Hea lth 94
Ta ble 43. GT P Targets for Gender Development and Childre n' s A ffairs I II
Tab le 44. GT P Target s for Yo uth and Sports Develop ment... 112
Tab le 45 . GT P Target s for HIV/AID S Pre ven tion and Co ntrol 113
Ta ble 46 . GT P Targets for Lab our Affa irs 115
Table 47. GT P Targets for Popu lation and Development 116
Tab le 4 8. GT P Target s for Culture and Tou rism 117
Tab le 49 . GT P Target s for Sc ience a nd Technology Development 119
Tab le 50. GT P Targets for Environment and Climate Change 121
Table 5 1. Surveys to be Car ried out by C SA During the Plan Per iod 125
Figu re I.
Figu re 2.
Figure 3.
Figu re 4.
Figu re 5.
List of Figu res
T itl e
G DP Growth by Economic Sector (%) 5
Percentage share o fG DP by Economic Sector 5
Percentage Share of Agg rega te Co nsumption a nd Savings to G DP @C MP 6
Percentage Share of Reven ue. Expenditure and Deficit to G DP @CM P 7
Expo rt and Impo rt Growt h (%) 8
A nn ua l Ca lenda r
The Greg orian ca le ndar is used throughou t this docume nt. The Ethiopia n ca lendar year
2003 starts on I I Septem ber of the Grego rian year 20 IO. In go vernme nt documents the
Et hio pia n Fisca l Year co mmences l " lI amle (G regorian calend ar 8 July) to 30 th Se ne
(G regorian cale ndar 7 July). T he Eth iop ian Fiscal Yea rs fo r the GT P ar e eq uiva le nt to the
G regor ian cale ndar as follows : Gregorian yea rs 8 July to 7 July 20 10/20II to 2014/ 15 are
equivalent to Ethiopi an Fisca l Yea rs 2003-2007.
List of Acrony ms
AIDS Acq uired Imm une Defi ciency rcr Information and communication technology
Syndro me
IW I{ Businessproces srecng inccr ing [T Information Technology
BSC Balanced sco re card M&E Mon ito ring and eva luati o n
eMP C urrent market prices M DG(s) M il lennium Development Goal( s)
CPR Co ntraceptive prev alence rail' MoFEI) Ministry o f Finance and Eco nom ic
CSA Central Sta tistical Age ncy Development
eno Co m munity based orga nisati o ns NGO No n gover nmen tal orga nisation
ESDP Education Sector Development o/w O f whic h
Program I)ASDEI> Plan lor Accelerated and Sustained
H Il Ethio pian Birr Devel opme nt to End Pove rty
FAL Function al Ad ult Literacy PhD Doc tor o f Phil oso phy
FDI For e ign direct inve stme nt SDI'RP The Sustai nable Develo pment and Poverty
GEQ!P General Education Quality Reduction Program 2002/03 ·200 4105
Improvement Package Tn Tuberculosis
GDP Gross Dom estic Product TVET Tec hnical and Vocational Ed ucatio n and
Gl l' The G rowth and Tra nsforma tion Pla n Training
20 10/ 11 to 20 14/ 15 USD United Slates Do llar
IIEI Hig her Ed ucation Institutio ns WTO World Trade Organisation
IIIV Il uman im munod c fleicncy virus
IIRD lI uman resou rce develo pment
Units of Mea surem ent Used
bln
Gb/s
GW II
h,
h,
kg
Bin
Giga byte( s) persec ond
Giga watt ho ur
H ec tare (s)
Iiour
Kilogram ( s)
km
m
min
MSE(s)
qlh,
Qt
C u r re ncyRate s
Kilometre (s)
Metre
mln
Micro and small sca le enterpriser s)
Qu intals per ha
Q uintal (s)t
16.625R Ethio pian Birr (ETB) 1.00 United States Dolla r US D A s of Nove mber 30. 2010
Foreword
The main development agenda of the Ethiopian government is poverty eradication. All the
country's development policies and strategies are, therefore, geared towards this end.
Effective implementation of these policies and strateg ies in an integrated and
comprehensive manner at various levels of government administration is key for
eradicating poverty and dependence on food aid in a shorter period of time. There is a wide
national consensus on the priority agenda of eradicating poverty and the policies and
strategies pursued to address such a development priority.
The Ministry of Finance and Economic Development is responsib le for establishing a
system for the preparation and implementation of national development plans, and in
cooperation with the concerned organs, preparing the country' s economic and social
development plan as well as following up the implementation of the same when ratified.
The Ministry had accordingly coordinated the design and implementation of the
Sustainable Development and Poverty Reduction Program (SDPRP), which covered the
years 2002/03 - 2004/05) and A Plan for Accelerated and Sustained Development to End
Poverty (PASDEP), that ran from 2005/06 to 2009/10. During these plan periods
remarkable achievements of economic growth, social development and good governance
were registered. On the basis of the exper iences gained thus far and the national vision, the
Growth and Transformation Plan (GTP) has been prepared with clear objective s and
targets through wide public participation at both the federal and regional levels. The
Council of Ministers and the House of People' s Representative have adopted the GTP as
the national planning document of the country for the period 20 I0/ II - 20 14/15.
Implementation of the GTP requires huge resources and commitments. To this effect,
emphasis will be given to ensuring effective public participation in implementation and
monitoring of the plan, efficient and effective utilization of all available capac ities of the
public, the government and the private sector as well as better coordination and
cooperation with the private sector and development partners. In this connection special
emphas is will be given to encourage citizens to increase their savings and to strengthen the
overall level of domestic savings for productive investment in GTP's priority programs.
It is only when every citizen makes a concerted effort with commitment, and sense of
urgency to discharge his/her own responsibility, that the effective implementation of GTP
can be realized. This requires a fundamental change of thinking on the part of actors and
stakeholders, particularly citizens, professionals, investors and the leadership, with respect
to the implementation of the key directions envisaged in the GTP. In this regard,
preventing and controlling rent seeking attitude and behaviour, and nurturing
developmental initiatives are absolutely critica l to realize the MDGs by 20 15 and the
country's vision by 2020-2023 . Hence, we need to firmly stand in unison in this bold and
Introduction
Achieving broad-ba sed, accelerated and sustained econo mic growth so as to eradicate
poverty has been and is a key object ive of the Gove rnment of Ethiopia. The government
has designed, and is impleme nting, strateg ies, policies and plans to guide and manage the
ove rall devel opment of the country accordingly. The last five yea r development plan was
the Plan for Accelerate d and Sustained Development to End Poverty (PASDEP). PASDEP
had a medium term development perspective and aimed, at a minimum, at achiev ing the
Millennium Development Goal (MDG) targets. During the PASDEP implementation
per iod. high and sustained economic growth and signifi cant soc ial a nd huma n development
results we re rea lised. During the same period the economy grew on average at 11 % per
annum. By susta ining the current economic growth ove r the next fi ve year period. the
govern ment aims to achieve the MDG targets by 20 15, and its longer term vision of being
a midd le income country by 2020-2023.
The government has formulat ed the five year Growth and Transfonn ation Plan (GT P)
(20 10/1 1-20 14/15)to ca rry forward the importan t strategic directions pursued in the
PASDEP. The GT P envisages that, besides ma intaining a fast growing eco nomy, better
resu lts will be rea lised in a ll sectors.In prepar ing the GT P the performance of the previous
development plans, and the lessons learned du ring their implementation, were taken into
account, with in the context of the country's development vision. Development of the GTP
has be nefited from the many consultative meet ings held at the Federal . Regional and local
levels with government bodies, private sector organisations. higher education institutio ns,
professional. women' s and youth associations. rel igio us and civil society organisations.
opposition politica l parties and deve lopment partners. Many issues which are believed to
be important for ach ieving fundame ntal changes in economic growth, social development
and good governa nce and which will contribute to realising the object ives of the GT P are
raised and discussed in the consultations. These conce rns are now adequately addressed in
the GTP. Issues that were raised and which needed greater elaboration or more emphasis
were add ressed and a re a lso presented in depth at the sector and sub sector levels de scribed
in the GT P.
The Growth and T ransformation Plan' s main objectives, strategies and targets a re clearly
set out in the document. During the GT P period spec ial emphasis wi ll be given to
agricultural and rura l development. industry, infrastructure, socia l and human
development, good governance and democratizat ion. The GTP takes into account two
alternative econo mic growt h scenarios: a base case a nd a high case. T he base case scenario
assumes that the previou s five year's ave rage annual G DP growth rate wi ll be maintained.
The high case scenario assumes that the GDP and the Agricultural Value Added achieved
in 2009 / 10 w ill do uble by the end o f the GT P period. 2014 / 15.
Development programs that will be implemented in the GT P five year per iod will have a
strong focu s on improv ing the qua lity of public services provided. Thus special emphasis
is given to investments in infrastructure and in the social and human deve lopment sectors.
One of the distinguishing chara cteristics of the GTP preparation process from the previous
development plans preparatio n was that. a high level macro econo mic team was
esta blished with the responsibility of guiding the overall prepa ration process.
Implementing agencies from the federal up to the regional and local levels have
participated in the planning process throug h their functiona l linkages with their respective
federa l institutions. Wide and extensive consultations that are led by se nior government
officia ls were he ld with stakeholders and the public at large both at federa l and regiona l
levels. In addition. large media coverage was accorded to the draft GT P, which contributed
to ra ise the public aware ness and part icipation in the process.
During the plann ing process. strong commitments. and part icipation of the private sector.
developme nt partners. civil society organizations and the public at large are demo nstrated
at a ll levels. It has been demonstrated in the consultation forums and the media that there is
a strong national conse nsus and ent husiasm amo ng cit izens with regard to GT P and its role
in eradicating poverty once and for a ll.
The plan preparation and approval process has been conducted based on a pre determined
time schedule, which is summarised as follows.
Scptcmbcr-Octobcr /2009 : Based on the initial directions from the government. the plan
preparation Generic Guidel ine, incorporating general directions. ma in object ives. eco nomic
growth targets a nd indicato rs, was prepared by the Ministry of Finance and Economic
Development and circulated to Federal implementing agenc ies.
reovcmber-neccmbcr/zues : Briefings o n the initial ideas and the Generic Guideline were
given to se nior gove rnme nt officia ls and directors so that a common understanding was
created as to the conte nt and preparation processes of GT P. A circ ular ca lling for the
preparation of the GTP was then distributed to a ll concerned federal and regiona l
govern ment institutions.
February· j\'1a)'/201O: Based on the Ge neric Guide line, preliminary draft plans of key
sectors (Agriculture and Rural develop ment Industrial Development, Educatio n, Hea lth,
and Good Gove rnance & Capa city Build ing etc.) were submitted to MoFED.
June 2010: Based on the macroeconom ic framework and preliminary draft sector plans
submitted to MoFE D. the draft con solidated GTP was prepared and submitted to the high
level Macro Economic Team. The Macro Economic Team in turn reviewed and provided
feedback on the draft con sol idated GTP and its const ituent key sector plans.
July 2010 : The first draft of the GT P was prepared as per the comments and directions
provided by the Macro Economic Team. Discussion paper focusing on major achievements
of PASDEP, o bj ectives.strategic pillars and main targets of the GTP was prepared and
distributed to the pertinent regional and federal bodies who participated in the consultation
forums. At the same time, a preliminary draft of English version of the GTP document was
prepared.
society orga n izat ions. development partners and opp o sit ion poli t ica l parties. Many u sefu l
co m ments and suggestio ns were rece ived during th e co nsultations. A ll con sultat ion s were
led by se nior go vernment o fficia ls both at the regi onal and federa l level s w hile the final
feder al leve l co nsu ltations were headed by the Prime Minister.
October 2010 : Further re finements o n the dra ft GT P document and checking for its
internal co nsiste ncy we re co mpleted by inco rporating the co mme nts a nd feedba cks from
the reg iona l and fede ral co nsultations.
Novem be r 2010 : The GTP document was then subm itted to the Co unc il o f Ministers.
whi ch then e ndorsed it toget her w ith com ments and d irect io ns to be included in the final
plan . A fter a five day de bate by the Ho use of Peop le' s Rep re sentatives. the document was
endorsed wit h moti on o f tha nks a s the Offi c ial Natio na l Plan of the co untry for 20 10/11 to
20 14/ 15.
The GT P is presented in ten chapters. Chapter I present s the progre ss and ach ievem ent s of
th e PASDEP. Chapter 2 co nta ins the objectives and strateg ies o f the five-yea r Growth and
Tran sformat ion Plan (20 10/ 11-20 14/ 15).Cha pte r 3 provid es the macroeconomic
framew ork fo r the GTP and C hapte r 4 de scr ibes the costs of and financing for the GTP .
C hapte r 5 de sc ribes the strategic d irections. obj ecti ves and tar get s for the fo ur ma in
econom ic secto rs: agri cu lture and rural developm ent, industry and trad e, mining and
infra structure. C hapte r 6 describes t he strateg ic d irection s, obj ect ives and tar get s for the
two ma in soc ial sec tors: ed ucat ion a nd tra ining, and hea lth. Chapter 7 descr ibes strateg ic
directi ons, object ives a nd ta rgets for good governance and capac ity build ing. C hapt er 8
pre sents strategic di rections. obj ec tives a nd tar get s for nin e cross cutt ing sec to rs. Cha pter 9
describes the opp ortuniti es. risks and cha llenges in impleme nting the GT P. Chapte r 10
presents the mon itor ing a nd evaluation frame wo rk of the GTP .
CHAPTER I.
ACHIEVEMENTS AND CHALLENGES UNDER PASDEP
The deve lopme nt poli cies and strateg ies pursued dur ing the three yea r Susta inab le
Deve lop men t and Po vert y Reduction Program (S DPRP) (2002 /03 -2004/05 ). togethe r with
the visio n exp ressed in and ac hieve me nts rea lised by the SDPRP. were the fo undation fo r
the de sign of the PASD EP. The PAS DEP wa s impleme nted d uring the five year per iod
20 05/06 -2009/ 10. It was prepared based o n MOO target s an d the go vernme nt' s vision for
Ethio pia' s deve lopment. Its main obj ectives we re en surin g accelerated. susta ined and
broad based eco nom ic deve lopment as well a s preparing the ground for the fu ll
achieve ment o f Ethiop ia' s MOO targets by 20 15. To ach ieve these o bjectives the PASDEP
was bu ilt on eig ht st rateg ic pillars. These we re
1. Bui ldin g a ll-incl usive implemen tat ion ca pac ity,
2. A massive push to accel erate econ omic growt h.
3. Creat ing the balance betw een eco no mic development and populat ion growth.
4 . Un leas hing the pote ntials of Ethiop ia's wome n.
5. Stren gthe ning t he infrastruct ura l back bon eof t he co untry.
6 . Strengthe ning huma n reso urce devel opme nt.
7. Manag ing risk and vo latil ity. and
8. Creating e mployment o pportunities.
Based on the se strategic p illars. two a lternat ive eco nomic growth scenarios we re
co ns idered. In the base case scenario. it was co nside red that to achieve the MDG s a n
ave rage econo mic growt h rate of 7% per a nnum wa s necessary. For the high cas e scena rio.
which a imed beyond achieve me nt of MDG s ta rgets. a 10% annual ave rage econo mic
growt h tar get wa s set so as to lay the founda tion for the reali zation of the development
vision o f the co untry.
1.1. MACROE CONOMI C PERFORMA NCE
The Eth iopian eco nomy has shifted to a higher growth traj ecto ry since 200 3/04 . T his has
been susta ined. and during the last five yea rs. overall rea l GDP has grow n rapid ly at an
average of 11 % per annum (See Table 1. and Figu re 1. bel ow .). Agricult ure , Industry and
Ser vice s hav e registered an average annua l growth rate o f 8.4%. 10% and 14.6%.
respect ive ly.
Table t. Growth in Gros s Domestic Product and Main Sectors Sha r e as Percent of
GDP
Secto r Ave rage growt h tar get planed Aver age growt h ac hieved Percenta ge sha re of
(2005/06-2009/10) (2005/06-2009/10) Real G OP (2009110)
Base Case Ili gh Case
Table I above illustrates that. with the exce ption of the industrial sector. the over a ll and
sectoral performances achieved were we ll above the targets set in both the base case and
high case sce narios. This has bee n particu larly pronoun ced in the service sector. Although
the g rowth rate in the industrial sector is be low the plan ned target. the sector achieved a
signifi cant ave ragegrowt h rate.
Figure 1. GDP Growth by Economic Sector (0/0)
18
16
14
8
6
4
2
o
»>: - ...............--
....
_ A gu cl ll hi le and al l ied
a cuvrtr es
..... l lJ\h ls t l'y
- -- Se r....ce
- R eaI G D P
2 1 )( 1~10 6 200 610 7 2 1107/H H 200H / 0 9 2 H1l9l 10
Ye ill ·
The co ntr ibution (perce ntage share ) of eac h o f the three sectors (agriculture. industry a nd
service) to overall GO P at the end of the plan per iod was 41.6%. 12.9% and 45.5%.
respective ly (See Figure 2).
Figu re 2. Perce ntage sha re of GDP by Economic Sector
50
45 • •• • •• • • •
40 • • • • •• • • • •• • • • •
35 • • • • •• • • • •• • • • •
30 • • • • •• • • • •• • • • • •m • • • • •s 25 • • • • •• • • • • •• • • • • •" 20 • • • • •• • • • • •~ • • • • •15 • • • • •• • • • •• • • • •• • • • •
The planned targets we re 43.9%. 16.5% and 39.6% for agriculture. industry a nd services
respectively. The actual shares were not as planned. as services achieved a higher. and
industry a lower share o f GO P tha n planned. In term s of structural change the PASDEP
assumed that a decl ine in the agricultural sector's share of GO P would be taken up by the
ind ustria lsector. However, under performance of the industria l secto r was more tha n
compensated by increased growth in the service sector. indicating that the structura l shift
was not. as yet. in the desired d irection.
From the demand side, GOP at c urre nt market prices has increased by about 29.6 percent
per annum during the PASDEP per iod. At the sa me time. gross ca pital formation, tota l
export s and total imports. registered an annual average growth rate of 28.3. 27. 1% and
27.6% respectively.
Ta ble 2. Percentage Sh are of Aggr ega te Consumption & Savings to Gn p @CMP
Item 2004105 2005/06 2006107 2007/08 2008109 2009110
Total Consumption 94. 1 95 .4 9 1.3 94. 8 93.6 94.4
Gro ss CapitalF ormation 23.8 25 .2 22. 1 22.4 22.7 22.3
Expo rtsof Goods and Services 15. 1 13.8 12.7 11.4 10.5 13.6
Impo rts o f Good s and Service s 35.5 36.5 J2 30.8 28.7 33
Reso urce Balance -20.4 -22.7 - 19.3 - 19 .4 - 18.2 - 19. 3
Gross Do mestic Sa ving 5.9 4.6 8.7 5.3 6.7 5.5
Owing to the increased pent up consum ption demand. the domestic saving rate remained
lowe r than the PASDEP target. T he domestic saving rate was 5.9% at the beginning of the
PASDEP period and remained at 5.5% in 2009/ 10. Likewise, consumption remained at
much the same level throughout the PASDEP period leaving no room for growth in saving.
Th is suggests that greater efforts are needed to increase the rate of domestic saving in order
to meet the growing investment needs of the country.
Figure 3. Percent age Sha re of Aggrega te Consumption a nd Sn ings to GDP @CM P
Il "
'""
""
'"
j ~"
ao
"
D TO I ~ 1 C OlOSUIIII" ;" "
lD ( ;ros s C ~p il 3 1 Fo" n a t"'"
~ E s po.-lS or Oood. all d s.:.... iee s
IIJ R e s o"rc c B ~l a ncc
D O r"". nom e s lie Sa' ·in!,!,
stringent legal measures against tax evas ion. As a result. domestic revenue achieved an
annual average growth rate of 26% surpassing the PASOEP target o f 20%. However.
domestic revenues as a share of GOP has marginally declined during the same period. As
Tab le 3 below illustrates, total revenue as a share o f GOP fell from 18.9% to 17.3% over
the plan period. with domest ic revenue marginally falling from 14.6% to 14.0% over the
same period.
Ta ble 3. Per centage Sha re of Revenu e, Expendit u re an d Deflcit to GDP @Cl \-lP
hems 2004 /05 2005 /06 2006/07 200 7/08 2008/09 2009110
Total Reven ue Incl uding Grants 18.9 17.7 17. 1 16.0 16 .3 17.3
Dome stic Reve nue 14.6 14.8 12.7 12.0 12.0 14.0
Tax Reve nue 11.6 IO.R 10. 1 9.6 8.6 11.3
Non -tax Revenue 3 4. 1 2.6 2.4 3.3 2.8
Grant s 4.3 2.8 4.4 4.0 4.3 3.2
Tot al Expenditu re 23.5 22.4 20.7 18.9 17.2 18.6
Recurre nt Expenditure 12.6 11.6 10.0 9.2 8. 1 8.4
oJ\\' Defence 2.7 2.3 1.7 1.4 1.2 1.0
Capit al Expe nditu re 10.9 10.7 10.7 9.7 9. 1 In.3
Poverty Oricn tcd expenditures 13.2 13.4 13.0 12. 1 IO.K 12.4
Expenditure Deficit including Grants -4.4 -4 .7 -3.6 -2.9 -0.9 - 1.3
Deficit Financi ng. 4.2 4.7 3 .6 2.9 0.9 1.3
External net 2.2 l . l 1.1 1.0 0 .9 l . l
Domest ic net 3 .3 2.1 3 .6 2.6 -0. 1 0 .5
Figu re 4. Per centage Sha re of Revenu e, Expe ndit u re a nd Deficit 10 G n p @CMP
as
1_ ·....."1" o", ,,u,"1" ,· h " ' I,, ... ; ."""
'" - _ . ... m . " k I< . nnu ~---- I, , - ..... " ''''o"u,"• ,
" ::- - ~
- " .. n ·. ... I< ~ . - ~ n " ~
~~
,
- " .""..:: ,i '" I- ·....'"I.:. ".".h'"••1_ ......," . ...·,,'·'·I""",h',,,...,
! - .. /.. H.·f. n"", I
. ~ . l i t ~ - ( '''1';' '''. ' ~ I ," n , n , ,, ,...,
,- -- - - :so:: "" 1- -,.....~..>.O . I ~n " . 1 o. ,"·".h".....
" ~c - - . " 1"-" ,' 1',, • • ' .... ,-'"" ,,, •., ,,,, ;,, ..200~f(I ~ 20n ~ f l'" 2 1K'6f07 2 1KI 7 ~l!~ ~l\lW f I0 , ( ; 'H" "
- - H" fi ,' ; ' H n H".-;n"- - 1-.,."·.,,.,1,, <t., i- ....n. ... " . nd
_ 10
proport ion of budget deficit. including grants. to GDP had decl ined from 4.2% in 2004/05
to 1.3% by the end of 2009/ 1O.
Although. exports have increased during the PASDEP period. the trade balance did not
improve as desired. The trade deficit widened during the peri od because o f a significant
increase in imports. an increase necessary to sustain the high econom ic growth leve ls
achieved. (See Table 4 and Figure 5)
Tab le ..t Impo rt a nd Expor t trade sha re of G DP ( % )
hl"m 2004 /05 2005/06 2006 /07 200 7/08 2008/09 2009 /10 Average
Export (merchandise ) 6 .9 6 .6 6. 1 5.5 4.5 • .0 SA
Impo rt (merc handise) 29.5 30.3 26.3 25.5 23.8 23.3 26 . 1
Trade balance -22.6 -23 .7 · 20.2 · 20 . 1 · 20 .0 - )9 .3 -20.9
Fig ur e 5. Expor t a nd Im por t Growt h ( % )
I!l Trade Balance
• .. •
2006 0· 2008o· 2009 ~.. • .. ••• • .. •.. • .. •• • .. •.. • .. ••
Years
Ea trrport (Merchandise)
40
30
20
"Cl
.l!l 10
""~ 0
" •Q. 200 b·
-10 • •• •• •• •• •-20 • •• •
-30
o Export ( Merchandise)
In terms of monetary policy. the main obj ective was to achieve and maintain price and
exchange rate stability. During the last five years the gove rnment has taken measures that
c urb inflationary pressures and increase the country's fore ign exchan ge reserve s. Fiscal and
monetary po licy measures as well as admi nistrative ones were used to reduce inflation to
1.2. PERFORMAN CE OF ECONOM IC AND SOCIAL SECTOR S
1.2 .1. Agr iculture and Rur al D evelopm ent
Crop produ ction : In 2004 /05 the tota l land covered by the three main crops was 9.8 mIn
ba, by 2009 / 10this a rea had increased to 11.25 min ha. Tota l out put increased from 11 9. 1
min qts in 2004/05 to 19 1 min qts in 2009/ 10. Average productivity of these crops
increased from 12 .1 q tlha in 2004/05 to 17 qt!ha in 200 9/ 10.To realize these increa ses in
product ion and produ cti vity it was plann ed under PASDEP to supply 820,000 tons of
chem ica l fertilizers. The act ual amount supplied was 830,000 tons.
Hor ticu ltu r e deve lopme nt: It was planned to deve lop 4 19,000 ha of fruit and vegeta bles
by 20 10. The ac hievement at the end of the plan yea r was 152,600 ha. Besides, it was
planned to produce 27.2 mIn qts a nd the ac hieve ment was 12.8 min qts.
Coffee devel opm en t: It was planned to increase coffee production to 419,6 10 tons by
2009/ 10. In the eve nt 34 1,000 to ns was produced, 8 1.3%of the targe t.
Livestock prod ucti on : The PASDEP target was to increase meat productio n to 837,000
tons; but only 605,000 tons of meat was produced, 72.3% of the planned target. The target
was to increase milk production to 3.39 1 min tons; and 96.2% of the planned target was
achieved with 3.26 1 mIn tons of milk produced in 2009/ 10.
In terms of anima l health services, it was planned that the number of veter inary clinics
would be increased to 3,600; the ac hievement was 2,275, 63.2% of the target. The target
for livestock vaccine was to supply 289 min doses in 2009/ 10; supply ac hieved was 96 min
doses, 33% of the target. PASD EP aimed to increase the number of pastora list and farmer
trainees on basic veterinary service deli very to 3.000 and 4, 144 trainees ( 138%) completed
thi s tra ining by the e nd of2009/10.
Agric ultura l extension services: during PASDEP it was planned to train 5 1. 10 I graduates
in the fields of plant, a nimal a nd natura l resource sciences and cooperatives deve lopment
to support the agri cultural extension service s. at agricu ltura l a nd vocational training
colleges. At the end of the plan period 52,02 3 graduates had completed tra ining in these
areas. During the PASD EP period. it was planned to increase the number of minimum
package trainee s to 10.39 mln: the ac hievement was 12.7 rnln. Although the aim was to
increase the share of wome n trainees to 30% of the tota l. the percentage reali sed was
18.5%. It was planned to increase household fa mi ly package trainees to 4.5 mIn by the e nd
of the plan period and the ac hieveme nt was 5.4 mln, wh ich is higher than the planned
target by 12.5%
It was planned to increase the number of fanne rs trai ning cent res to 18,000; the number
actually increased by 9,265 centres, 51.5% of the ta rget. The necessary equipments were
also supplied for these newly built tra ining cent res.
Agr'ic ultura l rese arch : Encouraging results have been achieved in agricultura l resea rch in
small irrigation systems; by the end of the plan period 122.430 hectares o f land were
developed by these means. During the PASDEP period. 853. 000 ha of land serviced by
small scale irrigation systems was developed well in excess of the target of 487,000 ha.
Land re ha bilita ted by water and soil conser vati on : The area of land rehabilitat ed by
wate r and soil conservation works during PASDEP was increased from 0.82 mIn ha in
2004/05 to 3.77 rnln ha in 2009 /1 O. With regard to forest conservation and management.
the country's forest coverage was increased to 8.8 mIn ha from 4. 1 min in 2004/05. And at
the end of the plan period the country' s forest cover age reached 6. 1 mIn ha.
Food secu r ity a nd safety net program s: Food sec urity interventions aimed to resettle
161, I08 voluntary households of which 9 1,3 17 (56.68'Yo) households were resett led. As of
2009/10 a cum ulative of 286,920 household s were food secure in resettl emen t a reas.
Productive sa fety net programs benefited 730,494 beneficiar ies of the targeted 1.5mln. In
290 woredas the number of farmers and pastoralists who were food insecure and needed
assistance was 7.1 min in 200 911 O.
Forest co nserva tion a nd man agemen t: The country 's forest coverage was increased to
8.8 mIn ha from 4.1 min. And at the end of the plan period the country's forest coverage
was 6.058 min ha.
Agr icult ur a lmarke t: 830,000 tons of fertilizer was supplied during the plan aga inst the
target of 820,000 tons. The Ethiopian Seed Enterprise and other improved seed suppliers
supplied 527,779 qt (doesn' t include the supply by the regions) of improved seeds, against
the target of 1.8 mIn qt.
Agr icult ur a lcoopera tives : In 2005/06 there were 20,437 cooperatives with a capital of
ETB 822 min and 3,642,602 members. By the end of 2009/ 10 the number of cooperatives
was 33,636, the ir ca pitalhad increased to I bln birr and their membership had grown to
5,899,76 1. Moreover, 2 12 cooperative unions with 3,826 member coo peratives and a tota l
capita lof ETB 185,472.337 were established during the plan period.
Ag r icult ur ale xpo r ts:The revenue generated from flower exports increased from USD
12.6 min in 2004/05 to USD 170 min in 2009/ 10. In the same period, the revenue
generated from fruit and vegetable exports increased from USD 14.07 min to USD 31.7.
357.000 live animals were exported. a substantia l increase on the target of 2 13.000.
3 19.647 tons of coffee was exported against the target of 323.000 tons. Overa ll. 1,225.000
tons of agricultural goods generating USD 1.55 bln were exported in the plan period
against targets of 1,183,000 tons and USD 1. 51 7 bin. respectively.
1.2.2. Trade and Indu stry Development
T he Trade Sect or
With regard to trade regu lation, a trade registration and licensing syste m was introduced
throughout the country, from federal to kebele levels. Gene rally, measures were taken to
Community-Southern African Developmen t Community Tripartite). In addition Economic
Partnership Agreement (EPA) was reached with the European Union.
T he Indu str y Secto r
During the PASDEP period support was given to micro, small, medium and large scale
industries and , part icu larly,to industries that used agricultura l inputs and were ca pable of
generating foreign exchange.
Micro a nd small sca le en terpri se dev elopm en t: As a part of PASDEP, the government
took a number of initiatives to promote and expand micro and sma ll enterprise
development in different regions and city administratio ns. The PASDEP target was to
crea te 1.5 million new j ob opportunities in the sub-sector which was more or less fully
ac hieved during the plan period. Substant ial support was provided including increased
supply of credit, training. provision of productio n and market facilit ies, technology support
and provision of sma ll e nterprise information se rvices.
Te xtile a nd gar me nt indu stri es : During the PASD EP period textile and garment
industries were expected to generate export ea rnings of USD 500 min. At the end of the
plan per iod, the sub sector had, however, only generated export revenu es amounting to
USD 2 1.8 mln. far lower than the target. T he low level of development of the sub-sector at
the start of the PASDEP period is one of the main reasons for th is under performa nce.
There is a c lea r need to increase efforts and potential to improve performance of the textile
and garment industries.
It was planned during PASDEP to attract investment in new industrial factor ies worth USD
1.6 bIn. As a result a number of investment s were made, faci lities developed and
production contributing to exports commenced. These included: 2 weaving factories with a
product ion ca pac ity of 10,500 tons per annum ; 3 factories with a production capac ity of
16.5 min metres of garrnents per annum; and, 10 sewing factor ies with an annual
product ion capacity of9.3 mIn items of clothing. Those investments that. at the end of the
plan period, had made investments, initiated proj ects and , in some cases. commenced
product ion included: 4 factories with a production capacity of 8.225 ton trade per annum; 3
factories with the product ion capacity of 255 min metre garments per annum; 3 factories
producing 33 min metres of processed gar ments; and I factory with a production ca pacity
of 10 min items of clothin g. Those investments that had finalised the preparation and
started the investment process included : 5 wea ving facto ries with a total ca pacity of 84,875
tons per annum; 4 factories with annual production of 6 1 mIn metre gray garments; 4
factories producing processed garments of 113 min metres; and 2 facto ries with a
production capacity of over 2 1.6 m in items of clothing. Other investors showed interest
and pre investment processes a re underway.
Leath er a nd lea th er produ cts : Leather and leather products (shoes and other leath er
products) we re expected to generate USD 22 1 min in export earnings. In the event USD
75.73 min was earned by the end of 2009/10. It was planned to upgrade 74 unfinished
Suga r : During the PASDEP period. sugar industry development works included a
feasibility study, irrigation and road works. sugar ca ne plantation development. housing
deve lopment. construction a nd expa nsion of factories. and production of sugar and ethanol.
It was planned to fina lize the establis hment of two new sugar factories in Wonj i and
Te nedaho and sugar factory expansion works in Metehara and Fincha. However, in Wonji,
Tendaho a nd Fincha the percentage completion during the plan was 30%. 25% and 40%.
respectively. It was planned to establish a new sugar factory capable of crushing 8.000 tons
of suga r cane per day and. in this case, the target has been fully achieved. Investment
lice nses have been granted to plant sugar cane on 20,000 ha of land and 7,200 ha of land
was planted . The ex isting three sugar factories were expected to produce 1,5 10.683 tons of
sugar and 39.697 m J of etha nol. Actual production ove r the PASD EP period was 1,468,91 5
tons of sugar and 30. 124 m3 ofethanol.
Cement: The cement industry was expected to produce 4.7 m in tons of cement per year.
However, the industry achieved an output of only 1.17 min tons of cement per annum. This
result suggests the need to increase the production and supply capacity of cement in order
to meet the needs of the fast growing construction industry.During the ea rly yea rs of
PASDEP implementation there was a dramatic increase in the gap between the demand for
and supply of ce ment. T his put considerable pressure on the const ruction sector. To ease
the s ituation. short term and long term intervention plans were designed and implemented.
The short term intervention plan involved importat ion of cement and construction of small
scale cement industries. The long term plan involves develo pment of new high capac ity
cement producing factor ies. Implementation of this plan is being clo sely monitored.
Meta l & metal e ngineer ing: In the meta l and meta l engineering industries preliminary
measures were taken to unleash the ir full potential contributio n to the country' s
deve lopment efforts. To support exporting industr ies. spare parts were produced locally for
four textile and two leather industries. In addition. a system was put in place that allow s the
product ion of spare parts loca lly for sugar and cement as well as other manu facturing
industr ies.
Training has been prov ided on non-destructive testing. funded by the Internat ional Atomic
Agency which a lso supported the purchase of equipment.
Chemical ind ustries: During the PASDEP period. support was provided to c hemical
industr ies producing inputs fo r leather and texti le industr ies measures. to add ress the
cha llenges they were fac ing.
Pharmac euti cal indu stri es: A strategic plan was deve loped for pharmaceutica l industries
to support producers of drugs and pha rmaceut ical equipme nt to allow them to import their
raw mater ial and othe r inputs duty free. Steps were taken to ensure that government
procurement syste ms give precedence to loca l pharmaceutical companies so as to
encourage local industry. In some cases technical assistance and consultancy support was
a lso provided to pharmaceutica l companies to fulfil internationa l drug producing sta ndards
and quality.
1.2.3. Mining
The mining sector rea lised some significant ac hievements during the PASDEP per iod.
The se incl ude extens ion of the cove rage of co untry wide geologica l information, hyd ro-
geologica l map ping, geo physic s (grav ity) studies and engineering geology mapping from
38%, 27%. 65% and 6.9% in 2004/05 to 51%, 42%, 80% and 10% in 2009/ 10.
respect ively. It was planned to identify and del ineate 30 areas of mineral de posits, while 34
such areas were identified a nd del ineated by the end of the plan ning period. Annual
investment in the mining sector increased from ETB 62 mIn in 2004/05 to ET B 12.7 bin in
2009/ 10.Revenue generated by the sector increased from ET B 20 mIn in 2004/05 to ET B
50. 1 min in 200 9/ 10.Mining roya lty reve nues reached ET B 130 mIn in 2009/ 10. Gold and
tantal um exports increa sed from 3,439 kg and 92.5 tons in 2004 /0 5 to 3907 kg and 202
tons respectively in 2009/10 .
During the plan period it was ex pected that 5,000 kg of gold, purchased by the Nat ional
Bank of Ethiopia from artisan miners, co uld be sold to fore ign markets by the NBE. By the
end of 2009/ 10, 5250 kgs of gold had been purchased by the NB E and USD 129 mIn
rece ived by NBE from sa les . An addi tional USD 2 mIn was generated by sa les of 4,500 kg
of ge mstones to fo re ign markets.
1.2.4. Road Development
With regard to federal roads, the plan for the 2004/05- 2009/10 period was to r einforce 852
km o f roads, upgrade 4,039 km. co nstruct 2,769 km and execute temporary or heavy
maintenance of 3,660 km of existing road s. Thus the plan was to co nstruct o r mainta in a
tota l of 11 320 kms of fede ral roads. and overall 96% of the se PASDE P targets were
real ised. In add itio n. 40 new federal roads were opened fo r traffic a nd more than 11 .000
km of road length added to the existing network. As a result, the tota l road length increa sed
from 36,400 km in 2004/05 to 48.800 km in 200 9110. These figures exclude Woreda roads.
The proportion of roads assessed ob jec tively as being in good co ndition increased fro m
64% in 2004/05 to 8 1% in 2009/ 10. Th e tim e taken, on average co untry-w ide, to reach a ll
weather roads has decreased from 5.7 hours in 2004/05 to 3.7 hours in 2009/ 10 . In gene ral,
the performance of the road sector during the PASDEP period was remarkable.
1.2.5. Ra il Netwo r k, Dry Port a nd T ra nsport
Rail Netwo rk: For the developmen t of the nationa l rail network , a feasib ility st udy was
co nd ucted using latest sate llite mapping technology for three rail corrido rs with a tota l
length of 2.359 kms. In addition socio -economic and en viro nmenta l studies of the corridor s
are underway.
Dry Port : The co nstruction of the Mojo and Semera d ry port s was co mpleted. A bilate ra l
agree ment was reached with the gove rnment of Djibouti for a j o int fre ight service to
further fac il itate export and import of commodities. A cargo term inal has been built
on l 64.238 m
2
land made ava ilab le by the govemment of Djibouti . The terminal has
companies we re co ntracted to ens ure tech nical inspection of vehicle s. Moreover to ad dress
the tran sportation challenges fac ing the ca pita l. Add is A baba, the possibility of introd uc ing
mass transport sys te m has been ex plored.
Air Transport : A cargo termina l for storage o f peri shable agricu ltura l products was
constructed at Bole International Airport and a master plan for the a irport was prepared.
During PASD EP it was plan ned to co nstruct new or expanded airports at seve n locations.
At Jiji ga. Humera and Assosa the a ir ports' runway co nstruction is co mpleted. At Jim a.
Jin ka. Kombolcha and Se mera runway constructio n work s are at d iffere nt level s o f
const ruction and pre-co nstruction phases. Meke le and Bah ir Dar a irport s a re o perating to
Inte rnatio nalStanda rds. The PASDEP strategy to increase the number of passengers and
the amount o f cargo has result ed in an increase o f 1.55 min in 2004/05 to 3. 128 min in
2009/ 10 of the former and 1.42 bin to n/k ilo metres in 2004105 to 2. 84 bIn in 2009/ 10 of the
latte r.
1.2.6. Te lecommunications
Dur ing the PASD EP period the mobil e telecom munications net work capac ity was
increased from 0.5 min users in 2005/06 to 25 mIn in 2009/ 10. The number of
telecommun ication c ustome rs increa sed from 0.56 min in 2004105 to 6.5 min in 2009/ 10.
In the Unive rsa l Access Program. a C DMA wireless network which co vers 90% of the
co untry has successfully been insta lled and the system enables vo ice and data service
ava ilab ility to every kebe le. Th e number of fixed line and mobile phone users was 0.62
min and 0.02 mIn, respectively in 2004105 and these increased to I min a nd 0. 187 min.
respect ively in 2009/ 10. Th e percentage of the rural po pulation with access (with in 5
kilo metres rad ius) to a teleph one service inc reased from 13% in 2004/05 to 62. 14% in
2009/1 0.
To connect the co untry' s main communicatio n infrastructure, ab out 10,000 km of fibre
o ptic ca ble (w ith high level information transmission ca pac ity) was insta lled and has
co mmenced rende ring services. A National Network O peration Centre that enables the
centra l ad ministration o f t he network was estab lished and the ca pac ity to co ntro l service
quality standard and managem ent of service fai lure information was put in place .
1.2.7. Energy
The co nstruction of new hydropower p lant s. includ ing Tekeze, G ilgel G ibe II and Tana
Belese plants, enhanced Ethio pia' s hydropowe r generating ca pac ity. In 2004/05 the tota l
hydro power ge neratio n ca pacity co untry-wide was 7 14 MW . The PASDEP target was to
increase power generation capac ity to 3.270 MW by the e nd of 2009/ 10. Th e power
ge neration capac ity actua lly achieved was 2.000 MW at the end of 2009/ 10 amounting to
62% of the target. The total po wer ge nerated in 2004105 was 3. 112 GWH. It was planned
to ge nerate 10.907 G WH by the end of 2009/ 10, howeve r. only 7.689 GW H (7 1%) was
generated. During the PASDEP period, to con serve e lectric e nergy. 4.6 mIn ene rgy sa ving
bulb s we re d istributed to custome rs. It was planned to increase power transm ission lines
During the plan period the rural electr ification program aimed to increase the number of
towns and rura l villages which have access to e lectric power from 648 to 6.000 .
Accord ingly 5. 163 towns a nd rural villages had ga ined access to e lectricity by 2009 / 10
amo unting to a 78% realisation of the PASDEP target. The tota l number of registered
customer s of e lectr icity increased from 952.000 in 2004/05 to 2 min in 2009/ 10. 77% of
the planned target. It was also planned during the PASD EP period to distribute 3 min
improved energy saving biomass ovens and these have been distributed as planned. As a
result. it is estimated that about 26. 176 ha of forest have been con served from deforestation
and carbon dioxide em issions have been mitigated by a bout 36,5 75 tons. About 10,081
rural fam ilies have benefited from distribution of home solar systems and 238 Rura l Health
Stations and First Cycle Schools have been provided with solar electric power. During the
plan, the petrole um reserve storage capacity increased from 279.80 0 m' to 369,800m 3.
1.2.8. Water and Irri gation Developm ent
Wat er supply: During PASDEP access to potable water increased from 35% to 65.8% in
rural areas and from 80% to 91.5% in urban areas. Ove rall nat iona lly,access to potable
water has increased from 36% to 68.5%. The increase in rural access to potable water over
the five year period is attrib utab le to the provision of 793 very deep wells, 3.353 medium
deep wells, 8,762 hand dug wells. 8,195 water fountain enhance ment works, 478 water
harvesting ponds. 3,294 rain water collection and, 7 run-off water harvesting systems. The
number of malfunction ing water stations was reduced from 30% of the tota l to 20% in the
plan period.
Ir ri gati on :Irrigation deve lopment measures were taken during PASDEP to put in place
small, medium and large scale irrigation schemes. At the start of 2004/05 it was planned to
carry out irrigation scheme pre feasibility studies covering 177,998 ha, deta iled studies for
464,05 1 ha, a nd initiationof irrigation works over 430,06 1 ha of land. The achievement by
the end of the PASDEP period was 178,000 ha, 462, 114 ha, a nd, 65,243 ha of land for
small, medium and large scale irrigat ion schemes. respectively.
1.2.9. Const r uct ionand Ur ba n Development
Ur ba n Development: During 2004/05·2009/ 10, it was planned to construct 396,000 new
houses, establish 10.000 sma ll urban-based enterprises. and create j ob opportunities for
200,000 urban city dwellers. By the end of the PASDEP period 2 13,000 houses had been
built in various regions a nd c ity administrations. In addition as a result of the housing
development program, 4,306 small co nstruction enterprises were e stablished, while
176.000 permanent a nd temporary jobs were c reated. Of the houses constructed 72,000
were handed over to the beneficiaries and ET B 93 1 mIn was received in pre payment from
beneficiaries for the houses.
A progra m to build ca pacity for dece ntralized service de livery was initiated within 18
citie s with a total o utlay of ETB 142.1 min. T he project completed improvements to 14
city markets as well as dra inage and road rehabilitation projects and purcha ses of vehicles
parks and water supply and sanitation works. A total of Birr 997 million was invested on
these infrastructure c reating 5 1,905 job o pportunities through this initiative.
Const r uct io n indust ry dev elopm ent : In ord er to develop the capacity of dom estic private
contractors providing con struction services 752 new contractors were given licenses and
provided wit h tra ining. Financia l support and tra ining we re provided to these construction
companies to enhance the ir capac ity. Capac ity building services were prov ided to 147
expert s organised as 43 consulting firms and, as a result, the numb er of consulta nts
working in the construction industry increased from 177 in 2004/0 5 to 254 in 2009 / 10.
Permits to import machineries with long term payment moda lities were awarded to
increase the supply of construction machiner ies and address transportat ion problems.
During the plann ing per iod 1,075 fre ight transportation vehicles, 1,000 dump trucks, 350
loaders, 100 rollers and 25 low-bed trucks were imported and distributed to domestic
private companies on credit modalities. In additio n 65 c rushers and 125 loaders were
distributed to co mpa nies of gravel supplie rs.
To address the shortage of co nstruction materials and ensure sustainability for t he fast
grow ing co nstructio n industry, the government imported cement, steel and other
construction mater ial, while encouraging domestic production of these items in the
medium term . As a result very large q uantities of cement and stee l were purc hased and
distribu ted locally durin g the plan period. Many micro and sma ll scale e nterprises received
training, financia l and adm inistrative support to increase thei r role in the supply of
particu larly loca l constructio n mater ia ls.
1.2.10. Ed ucation
Prim ary School Ed uca tion (G radc 1-8): The number of prima ry schools increased from
16,513 to 25,2 17 in the PASD EP period. Consequently, the number of classroom s
increased from 16 1,795 to 247,698 . The gross enrolment rate for grades 1-8 inc reased from
79.8% to 94.2% and the primary net enrolment rate increased from 68 .5% to 87.9%. The
dispar ity in enrolment rates between male and female students gross enrolment rat io
narrowed from 0.75:1 to 0.93:1.
Secon dary School Ed uca tion ( Grade 9-12 ): There were 706 seconda ry schools in
2004105 and th is number increased to 1,202 in 2009 / 10. In 2004/05 the gross enrolment
ratio for secondary schools (9-10) was 27 .3%; it increased to 39.7% in 2010 . The Net
Enrolment Rate for seco ndary schools (9- 10) increased from 11 .8% to 12.6% du ring the
sa me period .
Ed uca tion Qu ali ty : The primary school (Grade 1-8) student-teacher ratio decreased to
57: I by 2009/ 10 and the secondary school student-teac her rat io reached 43: I. The student-
clas s rat io, in primary schools (Grade 1-8), fe ll from 69: I in 2004/05 to 62: I in
2009/ 10,w hile in secondary education (Grade 9- 12) it fe ll from 78: 1 to 68 :1 in the same
per iod.
T ec hnical and Vocationa l Ed uca tion a nd Training: T he number of trainees undertak ing
fema le to male students at the graduate school increased from 9% to 11 .3%. During the
PASD EP period the number of public un ive rsities increased by 13, and the total is now 22.
With regard to building the capacity of university teachers, the number of university
teachers increased from 4,847 to 11,238 in the plan period. Of these 5,706 (50.8%) hold a
first degree, 4,528 (40.3%) hold a second degree and 1,004 (8.9%) hold a PhD.
1.2.11. Health
The main objectives of the health sector component of the PASDEP plan were to reduce
child morta lity, improve mothers' health a nd combat the spread and prevalence of
HIV/AIDS, TB and malaria. To achieve these strategic objectives and to ensure full health
se rvice cove rage in all rural kebeles, a hea lth extension strategy was designed and
implemented. During the PASDEP period one of its targets was to train 30,000 health
extension workers. In the eve nt, 33,8 19 were trained and dep loyed in rura l kebe les a ll over
the country. The number of health posts and health ce ntres increased from 4,2 11 a nd 644
in 2004/05 to 14,416 and 1,787 in 2009/ 10, respectively. The number of public hospitals
increased from 79 to I I I in the plan period.
During the PASDEP per iod the number of women of child bearing age and using
contrace ptives increased from 15% to 32%, prenata l service coverage increased from 46%
to 63%, postnatal service coverage increased from 15% to 30%, and tra ined birth assisted
del ivery increased from 13% to 25% - although the target was to reach 32%. In general the
number of deaths of mothers whic h were related to del ivery decreased from 87 1/ 100,000 in
2005 to 590/ 100,000 in 20 10. The under-fi ve mortality rate decreased from 123/1000 to
101/10 00.
By 200 9110 a bout 10 mIn households living in malar ia infested areas had received 2
mosqu ito bed nets each and by this means the cove rage of mosquito net usage has
increased from 1% to 100% in the plan period. Also during the PASD EP period, the cure
rate for T B increased from 65% to 67% and the incidence of HIV decreased from 0.68 to
0.28. The PASDEP target was to halt the HIV prevalence rate at 3.5% of the population
and a better result was ac hie ved with the prevalence rate droppi ng to 2.4% in 2009/ 10 .In
general, the health service coverage increased from 30% to 89% during PASDEP.
1.3. C ROSS CUTTINGSECTORS
Wo men and C hildre n: The government has placed strong emphas is on the participation
of women in the political, economic and social affai rs during the PASDEP per iod. In th is
respect follow ing the enactment of the nationa l policy on Ethiopian women,
organizational structures responsible for women' s affairs we re strengthe ned at fede ral,
regiona l, and local levels. The family law and crim inal were amended to fully ensure the
rights of women.
Efforts have also been unde rtaken to ensure the benefits of women in eco nomic growth and
soc ial develop ment. For instance the partic ipations and benefit s of women in agricultura l
for 20-30% of newly built houses and for the remaining 70% of houses, women competed
equa lly with males.
Youth and Sports: During the PASDEP period. a tota l of, 3.43 5.049 youths participated
in various training sessions. More than 708. 116 youths received training in management
skills and 444.595 youth association orga nizers rece ived train ing for the pre paration and
design of strategic plans. finance manageme nt and administration a nd related subjects.
To organ ize and support sport associations 200 leaders were trained. 11 .193 sport
associatio ns were established from national to kebele level of which 26 were estab lished
and registered at national level. To expa nd and strengthen sport and fulfil comm unities'
training and publ ic sport ground needs. 7.567 different sports grounds were created in
suita ble locations.
C ult ure and Tourism : During the PASD EP period. the average annual number of tou rists
visiting Ethiopia was 324.666 and they generated annual average revenu es of ETB 1. 61
bln . This ac hievement represents an increase in the ann ual average number of tourists and
revenue generated of 2 1% and 16.3%. respectively. Spec ific initiatives undertaken d uring
the fi ve year period included strengthening of wild life conservat ion area s. expa nding
infrastruct ure and tourist facil ities, improving national parks management and control, a nd
giving part icular attent ion to community tourism. T hese initiatives resulted in the
estab lishment of facil ities for national parks at Alateshi, Borena Sainte. Maze. Chebe ra
Churchura, Ka feta Sheraro and Gera le. Border demarcation of wildlife control areas was
com pleted for Simie n Mountains National Park, Bale Mountai ns National Park, Senkele
rhino she lte r, Shige sha a nd Tu lu lodge. At the Simie n Mountains National Pa rk 147
households were vo luntarily resettled to a pre-arra nged settlement site. Two investors have
built lodges at Awash and Simie n mountains national parks that contribute to expansion of
the ava ilable facilitie s and create an e ncourag ing e nvironment fo r more tourism. At
Senkele a rhino she lter recreation ce ntre has been built and, in schools which are close to
wildlife conservation areas, nine natural resources conservation c lubs have been
strengthened and given aware ness creation training related for wildlife development and
protection .
Science and Technology : The nat ional science and techno logy policy document was
reviewed. revised and presented to government, tak ing into account the current situation
and technological developments. A databa se was estab lished that identifies science a nd
technology re lated ca pacity building requirements. To build natio nal researc h capacity and
support active researc hers, training was given to young researc hers and research
institutions. Weekly radio programs and printed inform ation sheets entit led " From science
and technology archive -kesaynese mahlder" have been distributed to enhance awa reness of
and develo p interest in science and technology issues.
Environment : A woreda environment management planning man ual was prepared. The
manual aims to improve rural environments, contribute to susta inable development,
improve living standards a nd ensure gende r equality. About 1,450 environmental experts
1.4. GOOD GOVERNA NCE AND D EMOCRAT IZAT ION
The good gove rnance and d emo cratisatio n strateg ies ad opted d uring PASDEP a imed to
build t he ca pac ity o f the ci vil service to strengthen key pub lic services that suppo rt a nd
en ab le dem ocrat ic institution s, improve service delivery in the same area s, and con tinu e to
st rengt hen the o ngo ing democr atisation process. The democrat ic instit ut ion saddressed
included those c reated before 2004/05 such as the Ombudsman. Human Righ ts
Commission and Anti Co rruptio n Co mmission. These organ isat ion s were established to
mon ito r the system fo r ad m inistrati on o f j ust ice. prov ide soc ial accoun tabi lity and to
ensure a sustainable. transparent and accoun table public ad ministra tion.
The ma in focus o f the five year plan was to g ive woreda ad ministrations increased
aut hor ity and res pon sibi lity a nd g rant c ity admi n istratio ns' and mayors' offi ces a n
approp riate right for se lf admin istration. Within an ov era ll o bjec tive o f en suri ng deli ve ry
o f public services o f high qua lity to the peop le, the focus has been to enhance the PASD EP
im plement ation ca pacity at the local adm inistrat ive leve l. address the shortage o f sk illed
manp ower. and improve the rura l co mmunication infrastruct ure. The go vernme nts'
st rategies to fight co rrupt practices. amo ng c itizens and public servants show enco urag ing
signs of impro vement in terms of identify ing co rrupt perso ns. practices and orga n isations
and bringin g them be fore to the co urts.
Awa reness creation sess io ns were provided for those peo ple engaged in the PASDEP
preparation and moni toring wi th the a im o f build ing public support and co nfidence through
c iti zen s' partic ipat ion in the PASD EP prep arat io n and implemen tation initiatives. A
business proce ss reengin eering exe rcise was carr ied out by eve ry gove rnme nt agency, as
we ll as by wo reda and kebe le ad min istrat ion s. to im prove public se rv ice del ive ry and
ensure tran spare ncy of ope rat ions and good gove rna nce .
Extensive capac ity buildin g programs have been implemented to strengt hen the e ffic iency
and accountability of the j ust ice syste m w ith significant achieve me nts during the plann ing
period . Awar eness creatio n wor kshops we re co nducted to add ress problems wi thin the
j ust ice system. A co nflict pre vent ion and re so lut ion strategy was designed and
im plemented . A number o f measure s we re a lso undertaken to stre ngthen rela tions bet ween
regiona l go vernme nts so a s to build a stro ng an d stable fede ral democr at ic system. Cases
related to hu man rights and administ rative biases we re given preceden ce in the deci sion
mak ing process so that appropriate so lutions co uld be q uickly put in place .
1.5. C IIALLENGES AND GOOD PR ACTICE IN I M PL EM ENTI NG TilE PA SDE P
1.5 .1. Majo r C ha llenges Enco n nte re d
Impl ementati on ca pacity : There we re cap ac ity co nstrai nts among leaders and public
se rvants . at di fferent admi nist rative level s. invo lved in key aspe cts o f PASDEP
im plement ati on. To address th is cha llenge d uring PASD EP, the gov ernment la unched a
num ber o f process reengin eer ing and training program s to impro ve skills and ensure
appropriate implementation ca pac ity.
savings needed to support the huge demand for investment requ ired for the country' s
accelerating growth and development.
Inflation : A major challenge encountered du ring the implementation of PASD EP was a
significant increase in inflation. This was a potentially serious cha llenge to ma intaining the
macroeconomic stability. The government reacted in time with effective fisca l and
monetary policies as well as administrative measures to reduce inflation to sing le figures.
Rain : In some areas of the country, delayed arrival of rainy seasons, ea rly withdrawa l and
poor distribution of rain were cha llenges from which importa nt lesson s have been gained.
Indu strial sector: The under performance of the industrial sector was due to inadequate
technical and managerial skills in the sector, foreign exchange shortages to import essentia l
raw mater ia ls, spare parts and other inputs, power disruption s, constraints of access to
effic ient and effective credit services. and power disruptions..
1.5.2. Good Practices Learned
The lessons drawn from the implementati on of PASDEP and which formed one of the
inputs to the design of the 2009/ 10-20 14/15Growth and T ransformation Plan (GTP ) are
the following.
Lead ership , managem ent and organisation : Ma ny useful experiences have been gained
dur ing PASDEP on leading and managing the economy, on how to coo rdinate and
mobilize the public at large, the private sector and non governme nt organizations for
accelerated and sustained growth.
Agricultural productivity, producti on and sca ling-up ' best practice s' : During
PASDEP, a number of model farmers who registered very high levels of productivity and
product ion have emerged. The "best practices" of these model farmers have been analysed
and documented for scaling up tothe rest of the othe r farmer s during GT P period. This is
expected to increase productivity and product ion of most of farmers, and bring them closer
to the perform ance of the model far me rs.
Mobili sing domestic resources: Significant experiences are gained during PASDEP as to
how best to mobilize domestic resources and as to how to use domestic capaci ty most
effective ly to accom plish develo pmenta l interventio ns. These experiences are now
integrated into the strategies and programs of the GTP for the next fi ve yea rs.
Good governance: The introduction of the good governance package in the PASDEP
resulted in a range of key interventions that contributed significantly to human
development, democratizat ion, enhancing peop les' partic ipation, building we ll integrated
institutional ca pacity building and ensuring transparency and acco untability. T he next five
yea r plan will build on and expand the good governance initiatives.
Indu strialisation : As there was not signific ant growth in the industry sector and more
specifica lly in the manufacturi ng sub-sector, the lesson is ta ke n onboard that, in the next
five year s, more must be done to increase the percentage share of the industrial sector in
CHAI'TER 2.
BASIS, OIl.JECTIVES AND STRATEGIC PILLARS OF' THE GT!'
2.1. BASIS OF GROWTH AND TRANSFORMATION I'LAN
The co untry 's vision. the achievements of r ASDEr, and the lessons drawn from its
implement ation, were the basis for formulation of the next five year (20 I0/11-2 0 14/1 5)
Gro wth and Transformation Plan (GT P). Factors wh ich constra ined grow t h and externa l
shocks were tak en into accou nt in t he formu lation o f the GT P.
Ethiopia 's vision which guides the GTP is:
•• to become a country wh ere democratic rule, good-governance and social
justice reign , upon the involvement and free will of its peoples , and once
extricating itself from poverty to reach the level of a middle-income
economy as of 2020-2023."
The co untry's vision spec ifica lly o n eco nomic sector inc ludes:
"building an economy which has a modern and productive agricultural
sector with enhanced technology and an industrial sector that plays a
leading role in the economy, sustaining economic d evelopment and
securing social justice and incr easing per capita incom e of the citizens so
as to reach the level of tho se in middle-income countries ."
From 2003/04, th e eco nomy shifted to a highe r gro wt h traj ectory and the gro wt h
momentum was s usta ined d uring the PASD EP period. Infrastructu re devel opme nt and
soc ial se rvices have ex panded. Th e parti cipation of privat e investors and th e com munity in
ge nera l was ve ry s ubsta nt ial.Dom estic resou rce mo bi lizat ion increased the ca pac ity o f the
co untry to finance deve lo pment proj ects itsel f. The process of lay ing-out a foundat ion for
demo cra cy and good gov ernance was g iven due atte ntion in r eform programs undertaken
d uring the PASDE P per iod.
Among the ma jor cha llenges e nco unte red d uring the PASD EP im plementation period we re
the h igh inflati on pressures on the balance o f paym ents; the inadequ ate level s o f, and
co nst ra ining factors in, both otlicial dev elop ment ass istance a nd a lower level of domestic
revenue co llec t ion than expected, (which led to d itli c u lties in mob iliz ing financ ial
resource s to meet t he grow ing dev e lopm ent need s o f the co untry); and the unpred i ctab ility
of rainf a ll.
The GT P w ill co ntribute to ac hieve me nt o f Ethiopia ' s visio n and to sustai ning rapid and
broad based econo mic growt h. Th e experiences ga ined in resolv ing c ha lle nges that arose
du ring, and lesson s learne d from , the impl e mentat ion o f the PASDEP we re a sta rting poin t
fo r form ulat ion of th e GTP . In summary, th e ove ra llo bjec t iveof the GT P, ove r the five
yea r period, is to sustai n broad based, fast, and eq uitab le econo mic growth so as to
2.2. OBJE CTIVES OF THE PLA N
The GTP has the foll ow ing maj or o bj ectives.
I . Ma inta in at least an average real G OP grow th rate o f 11% and atta in MDGs;
2. Expan d and ensure the qua lities o f ed ucat ion and health services and ac hieve
MDOs in the soc ial sector;
3 . Estab lish s uita ble cond ition s fo r s usta inab le nat ion bu ild ing through the creation o f
a stab le democ rat ic and deve lopme nta l state; and
4. Ensu re the sustai nabilit y o f growth by reali z ing a ll th e a bove o bj ec t ives w ithi n a
stable macroeconom ic framewor k.
2.3. STRATEG IC PILLARS
Et hio pia ' s obj ec t ives and strateg ies for s usta in ing rapid and broa d-base deco nomic growth
path are dependent on the foll owin g GT P' s strateg ic pil lars.
1. Sustaining rap id a nd equ itab le eco nom ic growth,
2. Ma intai ning ag ricu lture as maj or so urce o f eco nom ic growth,
3. Creating co nd itio ns for the ind ustry to play key role in the econom y,
4 . Enhanci ng expa nsion and qual ity of infrast ructure deve lopmen t,
S. Enhanc ing expa nsion and qual ity o f social development,
6. Build ing capacity a nd deepen good governance, and
7. Prom ote gender and yo uth empowerment a nd eq uity.
Each of the strateg ic pi llars is e labo rated a s fo llow s.
2.3. 1 Sustai n ing ra pid a nd eq uitab le econo mic growth
In o rder to ac hiev e the vision of th e co untry and, in d ue co urse, era dicate poverty and so
imp rove th e livel ihood o f c it izens, it is imperative to susta in the h igher eco nomic growth
of the last S years and beyo nd. For thi s reaso n, inve stments in growth enhanc ing secto rs
such as infra structu re and socia l sec to rs w ill continue at a la rger sca le. Econo mic grow th is
ce ntra l in creating grow ing emp loyme nt o pportunities and Et hio pia ' s tran sformation into a
middl e inco me co untry.
T he agricu ltura l secto r wil l co ntinue to be the majo r dri ver o f eco nomic grow th. Ind ustrial
grow t h wil l be gi ven parti cu lar focu s. Rap id growth o f an indu strial sec tor that increase s
the co mpeti tiveness o f Et hio pia ' sex port s and re sult s in import subst itut ion will be
enco uraged. T his a pproa ch is ex pected to res ult in the rapid and broad ba sed econo mic
growt h that w ill prov ide a foundat ion for struct ura l tran sfor mat ion. The govern me nt' s
effo rts to erad icate povert y and create em ployment will be pursued by sustain ing ra pid and
investors. Fundamenta ls of the strategy include a shift to production of high value crops
with a special focus on potential high productivity areas, inte nsified commercia lisation,
and support for development of large-scale commercia l agriculture, where feasible. The
commercialisation of smallholder farming will continue to be the major source of
agricultural growth. Conce rted support will be given to increase private investment in large
commercial farms too. A range of public investments will be undertaken to scale-up the
successes realised so far. Further strategies include development of a more transparent and
e tli c ient agricultura l marketing system and increased investment in marketing
infrastructu re.
To e nsure that agriculture becomes the main source of growth for the next five years the
key strategy that will be pursued concerns sca ling up of best practices of model small
holder fa rmers. Thus the best technologies and practices of the model farmers will be
sca led up for use by all othe r fann ers during the GT P per iod . This will in turn increase
agricultural productivity and production. It is very esse ntia l a lso to strengthen the
go vernment structures at a ll levels so as to provide e ffective services that increase
agricultural productivity. Although the emphasis will be on sca ling up the best
tec hnologies and practices of model farmers. new technologies will also be developed and
disseminated to farmers and pastorali sts.
In addition to promote multiple cropping. better adaptation to climate varia bility a nd
ensure food sec urity. the GTP will intensify use of the country 's water and natura l
resources. Expansion of small sca le irrigation schemes will be given priority, while
attention will a lso be given to medium and large sca le irrigation. Concerted efforts will be
made to expand water shade management and to carry out effect ive water and moisture
reta ining works. Apart from improving productivity and living standards of the rura l
comm unities, these activities will help to cope better with the challenges of cl imate
cha nge. Strengthening the conservation and management of natural resource is anothe r
focus area. The conservation and management of natura l resou rces will mainly rely on the
farmers and government ca pacities.
Commercial horticulture will involve intensive farming and high value commod ity
product ion. It wi ll exte nsively use labour and hence is likely to concentrate in highland
areas a nd closer to the maj or c ities of the country. It will be integrated with the
surrounding small holder farming. In addition, given the expansion of infrastructure a nd
se rvices through out the country large sca le extens ive commerc ial farming are like ly to be
encouraged to grow. The other element of the agricultural development strategy is the
promotion of private large sca le co mmercia l farms in areas that are not occ upied or utilized
by people.
During the GTP period, agr iculture will shift to a high growth path in order to meet the
food sec urity needs of the country, to c urb intlationary pressures on agr icultural products,
and broaden the export base of the coun try. The sector will se rve as a spring board for
struct ural transformation in the long run by adequately supplying inputs necessary for
industr ia l growth.
In th e ind ustria l sector. the government will focus in pa rticular o n strengthe ning micro and
sma ll-sca le manufacturi ng enterpri ses. because they are the fou nda tion fo r the
esta blishm ent and ex pan sion o f medium and large sca le indu stries. and ope n opportunities
fo r em ploy me nt generation. expa nsion o f urban deve lopment and provide c lose support for
fu rther agricultura l deve lopm ent. Th e role MSE s play in sca ling up agricult ura l secto r
product iv ity is irrefutab le an d for th is reason ap propr iate support wi ll be provided to
st rengt hen vertical and ho rizonta l linkages bet ween agr icu lture a nd indust ry.
The growth of MSEs a nd their integration with TV ET system dev e lo pment wi ll be
instrumental in provid ing the necessary sk ills an d edu cat ion for technol ogica l tra n sfer. Th is
in an im portant part o f the effo rt to suppo rt MSE s. as is the provision o f capita l for MSEs'
o perations through saving a nd cred it institut io ns in a more transpar ent and accou ntable
mann er. To so lve the produ ct ion fac ility problem s o f MSEs and tho se linked to ident ifying
market oppo rtunities, eff o rts w ill be made by reg ions a nd c ity administra tio ns to provide
product ion and marketing fa cilities at an affo rda ble cost. Ent repreneu rial as well a s sav ing
attitu des and behaviours w ill be w ide ly promoted among micro and sma ll business
o perato rs in part icular and among the public in genera l.
Maj o r suppo rt w ill al so be g iven to establish and expa nd med ium a nd large sca le industry .
It is bel ieved that t hese ind ustr ies will encoura ge technologica l tran sfe r, bridge the link
between micro and small enterprise s and improve the co m petitiveness o f do mestic
resource ba sed la rge-scale ind ustrie s. Med ium and large sca le ind ustries w ill al so ser ve
we ll the do mestic market and produ ce val ue-ad ded produc ts fo r t he export ma rket.
Measure s to support se lected strateg ic impo rt substituting ind ustries. both within the pu blic
and pr ivate domai n, wi ll be strengt hened and this will hel p increase the fore ign exchange
earnings and lay the basis for more rapid indu stria l de ve lopme nt.
As is c learly stated in the Et hio pia' s Indust ria l Deve lopme nt St rate gy, the val ue that can be
added by the private secto r is an impo rtant engine o f the secto rs' development. The
business environme nt has ove r the years been co nduc ive to investment and the trade and
investment frame work ha s improved rap id ly, thus attracting bot h dom estic and foreign
investment. T he go vernme nt w ill co ntinue prov idin g a ll the necessary fac ilities and suppo rt
to real ize the GTP' s ind ustria l sec to r growth o bjec t ives .
2.3.4 En ha nci ng expa ns ion a nd en surin g qu ality of infra structur al
devel opm ent
The expansion and maint enance o f eco no mic infrastructure such as roads, power and wate r
supply, should be seen from the stand points o f enha nc ing and sustai ning pro-poor growth
throu gh j ob creation and promotion o f indu strial deve lop ment and, by these means helping
to realize poverty eradicat ion. Even though large inve stmen ts have been made o ver the
previou s plan period, the infrast ructura l bac kbone of the co untry has not yet reac hed the
q uantity and qua lity de sired becau se of the low thresho ld o f eco nom ic infrastructu re in
2004 /05 . Co nst raints that have arise n to date in achiev ing the desired leve l of deve lopment
inc luded limited loca l human cap aci ty and the large capita l investments needed, co mb ined
investments an d promotion of import substitu ting indu str ies. Investment in deve lop ment of
road s. railway networks. energy. irrigat ion and telecom mun ication w ill receive d ue
attentio n during GT P pe riod. A major effort will be made to increase investment in
infrastructure by: increas ing do mestic savings and pro moting impo rt substitutio n of
mater ials that are necessary for the infrastr ucture devel opme nt.
In the plan pe riod. the road networ ks w ill be expanded. Every rural kebele will be
co nnected to a n a ll weat her road and thus to the main road network. Rail way lines
con necting va rio us parts o f the co untry will be developed. To meet the co untry' s gro wing
en ergy needs e ffo rts w ill be made to increase use of a lternative en ergy source s such as
wind. geothermal and hydro energy. The o ngoing teleco mm unicat ion infrastru ct ure
expa nsion program will be concl uded and good qua lity and effic ient services w ill be
provided by fully utilizing this co untryw ide and a ffo rdably priced i nfrast ructu re.
In view of the role o f urban izat ion for eco nomic a nd soc ia l develop ment, building t he
necessary urban infrast ructures w ill be given emphasis to ensure rapid and eq uitable
gro wth of urban ce ntres. Th e development of these urban infrastructu res w ill be
implemented in a manner that they will co ntribute for MSEs development and employment
cr eati on.Adeq uate attention will a lso be given to improve urban sanitation am enities to
crea te suitab le living an d wo rking environme nt. A co mprehensive regu latory and capac ity
build ing framewo rk will a lso be implemented in o rde r to promote the development o f a
more produ ct ive and co mpetitive domestic co nstruction industry.
2.3.5 Expansion of social development and guaranrcctng their quality
Improving c itizens' living standards and deve lop ment o f the ir human potential, is a key
st rategic pillar of the GT P. The gove rnment will take various measures to improve
peoples' hea lth. productivity and skills. Among oth er benefits. these measures will increase
the potential for gove rnment' s po licies, strateg ies and program s to real ize their o b jec t ives.
The ma in initiatives that are expected to ensure that this st rateg ic pilla r is rea lized are
improved access to good quality higher and adult educatio n. very wide acce ss to good
q ua lity primary health care. better acce ss to sa fe water and san itatio n fac ilities. halt ing the
spread of HIV/AID S and other key infectio us disea ses. improving food security a nd
nutrition, and improved housing conditions.
Education and training : The progress to date has been enco uraging. In o rder to susta in
this level o f progress. the government w ill incr ease its efforts to deve lop the co untry's
human resource s by improving the acce ss to and the q uality o f ed ucation in the next five
yea rs. To improve access to education. efforts wi ll be made to add ress issues that hinde r
studen ts' , espec ia lly fema le studen ts', enrol ment. Appropriate importance w ill a lso be
g iven to pre-p rimary and functional adult ed ucation. To improve the quality of ed ucation.
measures w ill be taken to address ex isting sho rtcomings by increasing the numb er of
teachers and schoo ls. The go vernme nt will expand and improv e the initiati ves ta ken to date
in its General Education Q uality Improvement Program .
Higher education : The key prio rity in the higher educatio n system du ring the five year
processes, assessment and examinat ions and student achi evem ent.The government will
launch a big push to strengthe n sc ience and technology in higher education.
C hild c are, specia l needs a nd adult lite ra cy: T he earl y childhood care and education
system will be made cost effective a nd more participatory and be expanded in both formal
and non formal education delivery mechanisms. The education strategy for ch ildren with
special needs wi ll be fully implemented. A functional adult literacy program will be
expanded across the country.
Technical and voca tiona l edu cation & train ing: T he T VET system wi ll continue to be
an instrume nt for techn ological transfer, through the development of occ upational
standards, acc reditation of competencies, occ upational assessment and accred itation, and
the establ ishment and strengthening of the curriculum devel opment system. TVET
inst itutes will serve as the centres of techno logy and skill acc umulation for micro and sma ll
enterprises (MSEs). Rigorous and regular mon itoring and eva luation of TVET institutes
will be carried out. The TVET program will be part of the governmen t's capacity building
program to strengthen engagement with, and productivity of MSEs, as a key instrument for
creation of employment opportunities.
Health Serv ices: The GTP will focus on improving the health of the population th rough
provision of primary health care services that will be supported by the health extension
program. In add ition measures will be taken to ensure qua lity hospita l services and better
supply of medical drugs. T he governme nt will strengthen the measures it takes to improve
the numbe r, skills, distribution a nd management of health workers, through enhanced
training of physicians (specialists and genera l practitio ners). New systems of health ca re
financing will be explored and implemented to overcome the existing bott lenecks. An
incentive package will be developed to encourage domestic production of pharmaceutica l
products.
To increase the contribution of the private sector to health service s, e fforts will made to
improve and extend the delivery of services and their qua lity. Lessons will be drawn from
othe r countries and integrated in the initiatives to be taken to improve the private sectors
cont ribution to the health system. Mobilisat ion of externa l finance, together with dome stic
finance, in orde r to fund GTP healt h sector initiat ives, will rece ive major attention. Private
pharmaceutica l factor ies will also be e ncouraged to susta inably produce and deliver qua lity
pharmaceuticals. Generall y GTP aims to fully achieve the MDG targets for the sector.
2.3 .6 Stren gthenin g go od gnve r n a n ceand ca p a ci tybuilding
Strengthenin g institutional capac ity is critical to implement the GT P policies, strategies
and programs and there by achieve satisfactory results. Apart from other existing,
struct ura l and instit utiona l constra ints. the country' s economic growth and soc ia l
development are hindered by organ isationa l capacity constraints. Government has designed
nationa l program s, policies. and strateg ies that strengthen and sustain the country's
implementation capac ity, inst itutionally and organisationa lly. Thi s is a vita l contributio n to
the on-going proces s of democratization. For example, during the GTP period, the
In o rder to faci litate the strengthening of the stable, dem ocratic and developmental state
that creates an e nabl ing environment for development, major em phasis wi ll be given to
strengthening democratic inst itutio ns, building up the capac ity of c ivil service and c ivil
soc iety o rganisations and establishing a system for c itizens' access to information. Public
participation will be strengthened at all levels to ensure better transparency and
accountab ility in public dec ision mak ing. In addition, the effective ness of the just ice
system will be improved a nd laws will be a mended to ensure that implement ation and
interp retati on is in co nfor mity with the co nstitution. The independence, transparency and
accountab ility of co urts and the judic ial system will be ensured. Law enforcement
institutions will be strengthened by improving the knowledge and skills of the human
resources' emp loyed and by providin g the equipment req uired. Fina lly. the pub lics'
understa nding and awa reness of constitutiona l issues will be increased and the c ustom a nd
trad ition of peaceful resolution of disputes improved .
Another critical element of th is pillar strategy co ncerns ensuring transparency and
accountab ility in public decision making, as well as preventing and contro lling corruption.
In this regard, the focus will be on radica lly improving the tax and land admi nistrat ions of
the co untry. At the ce nter of such re for ms are improv ing the registration and information
systems of income, pro perty and land. In addit ion, public education and awareness creation
that bring about attit udina l a nd behav iouralchanges, as well as effective enforcement of
laws will be purs ued. The establishme nt of rel iable and un iform vital stat ist ics and
identificatio n system of citiz ens will a lso be undert aken d uring the plan per iod.
2.3.7 Empowering women and youth and ensuring their benefits
Women and Youth : The objec tive s of the GTP can only be ac hieved when the
multid imensional prob lems faced by women and youth are addressed. To th is end, the
government will sca le up its efforts to implement its Women' s and Youth Pol icies a nd
Programs. These policies contain essential initiatives that will contribute to the
participation and effec tive utilization of the untapped potential of these key soc ial gro ups.
During the GTP period, women and youth initiatives will aim to ensure eq uitable soc io-
economic and political participation by and bene fits dir ectly for, wome n and youth in our
soc iety. Unleashing the potent ial cont ribut ion of youth a nd women to natio nal
development wi ll have a profound effect on the speed, eq uity and susta inability of the
country' s ove rall gro wth and development.
Ove r the last few years major efforts were made to increase the enrolment of g irls in
schoo l, expand coverage of fem ale health se rvices, and increa se extension services to
women far mers in rural areas. These effort s incl uded also leg islative and institutio nal
refor ms to protect the rights of, a nd open o pportunities for, women . Although, progress has
been made there are still cha llenges relating to cha nges in attit udes and trad itiona l
mal practices. Government is committed to speeding up the pace of chan ge through
educa tion, by increasing the part ic ipation of women in public life. and by strengthening
women' s membership in gender based organizations.
CHA PTE R 3.
MAC ROECONO M IC FRAMEWO RK O F T HE GROWTH A ND
TRA NSFORM ATI ON PLA N
3.I. MAC ROECONOMIC OBJ ECT IVES
Macroeconomi c policy objectives for the fi ve year GT P per iod 20 10/1 1-20 14/15 are the
maintenance of macroeconom ic stability so as to e nco urage savings and inve stment by
ad opti ng a pprop riate po lic ies designed to prom ote rapid and broad based eco nomic growth.
Fisca l and monetary po lic ies will be mana ged in a manne r co nsistent with these
macroeconomic ob jec tives.
3.2 . M ACROECONOMI C POLI CI ES AND GOALS
The macroeconom ic goals of the GT P are synchronized with the o vera ll policy ob jec tives
of mainta ining the growth momentum witnessed during the PASD EP period. Ethiopia 's
vision of becomin g a middle incom e country. and meetin g its MDG target s at a minimum.
3.2. 1. Economic G rowt h, Sa vings and In vestm ent
The Ethiopia n eco nomy has reg istered a n average an nual rea l GD P growth rate of 11 %
d uring the five yea rs 2005106 to 2009110. The lesson teamed duri ng PASD EP and SDPRP
periods. is that susta inable. rap id and eq uitable gro wth is esse ntia l to the GTP .It is growth
that wil l he lp c reate employment and ra ise income. eve ntuall y e radicating povert y.
Two growth sce narios are co nside red in the GT P: Base Case and High Case Scenarios.
a ) Base Case Scenario
Under the base case scenario, Ethiopia' s economy is proj ected to grow at a n ave rage
annu al growth rate of 11 .2% . This is the average growth rate atta ined during PASDEP a nd
the GTP intends to ma inta in this growth momentum. Under the base case sce nario. it is
assumed that the economy will be able to grow provided that the same stable polic ies and
st rateg ies are fo llowed at macroeconomic and sectoral levels as adopt ed previous ly; that
prudent moneta ry and fiscal po licy ensures that inflat ion remain s at single dig its; and that
tax collection and admi nistrat ion systems are strengthened so as to increase domestic
revenue substantia lly. A ll M DO targets will be met under the base case sce nario.
Tab le 5. Real G DP Projection Ann ual G rowth Rat e ('10)
Se cto r 2009110 20 10/11 20 11/12 20 12113 2013 /t4 20 14/t!' Ave rage
Agri culture & Allied
7.6
Activities 8.5 8.5 8.6 8.6 8.7 8.6
Ind ustry 10.6 14.0 17.9 2 1.4 23 .0 23.7 20.0
T a ble 6. Pro j ec ted T re nds in the Str uctur e ofG DP by Indu strial o r igin (% sha re)
Sec to r 2009 /10 2010 /11 2011 112 2012 / 13 2013 /14 2014 /15 Ave ra ge
Agric ult ure & All ied
Activities 4 1.6 40.6 39.7 38.7 37.8 36.9 3 8.8
Ind us try 12 .9 13.2 14 .0 15.3 16.9 18.8 15.6
Serv ices 45 .6 46 .2 46 .3 46 .0 45.3 44 .3 45.6
To bring about structura l transfor mation in the eco nomy. it is expected that the industria l
sector's sha re of GDP wi ll grow 12.9% to 18.8% and the agric ultura l secto r 's sha re will
decrease from its current 41.6% to 36.9% at the end of the plan period. The service secto r's
sha re of GD P is proj ected to decrease from 45.6% to 44.3 %. Achievem ent of these target s
will provide an enabling env ironment for economic growth by balancing demand a nd
supply of agriculture a nd industry sectors.
Looki ng a t dema nd side of G Il P, t here are two mac roeconomic balances to be
co nsidered, name ly the reso urce gap between savings and investment and the trad e balance
between export s and impo rts (the ex port/import gap). In the GT P per iod prudent
macroeconomic managem ent will be adopted to ma intain these macroeconomic balances.
A single d igit inflation rate is targeted to preva il throughout the GTP period . During
20 I 0/ 11 to 20 14/ 15, G DP at current market prices is forecasted to grow at a rate of 17.2%
o n ave rage,which is lower than the rate of growth d uring the PASOEP period. By the end
of PASO EP, the share of total final consumption expenditure to nominal GDP was
expected to decrea se, but, it re mai ned unchanged at around 94%. At the end of the GT P
period total co nsumptio n is foreca sted to reach 85% while dome st ic savings are targeted to
inc rease from 5.5% in 2009/ 10 to 15% of GDP in 20 14/15 and the five year avera ge will
be 11.9%.
Gro ss domestic investment is foreca sted to avera ge 27.5% ofGDP during the plan per iod.
In 2014 /1 5 gross ca pita l for mation is proj ected to take a 28.2% share of GDP, rising from
22 .3% of GOP in 2009/ 10. During the GTP period, the savings and investment gap is
expected to narrow and reach 13. 1% at the end of the plan period. from its presen t level of
19.4% . This is a re flectio n of the gove rnment' s intentio n to raise domestic savings towa rds
the inve stment financing requirement. In o rder to e ffectively raise dome stic sa vings
macroeco nomic stability and measures that ensure an enablin g environment. such as
inc reasing financ ia l sectors accessibility and d iversifying their services. will be take n
d uring the plan period. (See Table 7 below)
Ta ble 7. Demand Side GD P as Rati o to G DP @ C u r re nt Ma r ke tPr ices (% )
.- h e r ll ~ e
(20 1011 1-
It em 200 9/10 20 10/ 11 20 11112 2012 /13 20 13/ 14 20 14/ 15 20 14/ 15)
To ease the pressure on the balance of payments. po licy and administrative measures that
promote growth and divers ification of exports will be unde rtaken. At the end of the plan
period. the share of exports to GOP is expected to reach 22.5%. a rise from 13.6% in
2009/1O.High value products such as horticulture and other new export item s will receive
major support from the governme nt. Combined with these initiatives, support will be
provided for import substituting industries so as to ease the shortages of foreign exchange
the country is experiencing. The share of imports of goods and services to GOP at current
mar ket prices is for ecasted to reach 35.7% (See Table 7 above).
h) High er Case Sce na r io
The basic assumption for the high case sce nario is the doubling of agricu ltural value added.
by sca ling up the le vel of productivity o f smallholder fann ers and pastora lists to the
productivity levels of exist ing best (mode l) fann ers. Th is places the economy on a higher
growth path tha n the base case scenario. Because of the potentia l of multipl ier e ffec ts of
the sma llholder farmers, the increase in agricultura l supply wi ll stimulate growth of other
economic sectors. Under the high case sce nario, it is assumed that the possible upward
shin of demand, caused by the doubling of agricultural value added by the e nd of the GTP
period, will be stabilized by increased supply of agricultura l sector goods that will keep the
inflation rate in single d igits.
An annual average GOP growth rate of 14.9% is targeted under the high case scenario.
Agriculture. industry and service sectors are expected to grow on average by 14.9%. 21. 3%
and 12.8% per annum, respective ly (See Ta ble 8 below). At the end of the plan pe riod the
percentage share of agricult ure. industry a nd service sector a re expec ted to be 4 1%, 16.9%
and 42.1 %. respectively. (See Ta ble 9 below)
Tahle 8. Proje cted Trend s in the St r uctur eof (;OP gro wth by Indu stri al ori gin (%, )
Sector 2009/10 20 10/tl 2011112 2012113 2013 / 14 20 t4 /15
2010 / 11·2014/15
(A ver azej
Agricu lture &
7.6 9 .5 13.5 16. 1 17. 1 18,4 14.9
AlIicd Act ivities
lndustrv 10.6 14.& 19,4 20.& 23 .7 27.9 21.3
Services 13.0 14.6 13.& 12.9 11.8 10.9 12.&
Real GOP 10,4 12.5 14,4 15.3 15 .6 16 .6 14.9
Ta ble 9. Proje cted T re nds in the St r uctur e of G OP by Indu strial o r igin (%s ha re)
Sector 2009/tO 2010111 20 11/12 2012/13 2013/ 14 20 14/ 15
AH'ra ge
(2010111- 20 14/ 15
Agr iculture &
4 1.56 39.9 39.5 39. 8 40.3 4 1.0 4 1.2
Allied Activities
Industry 12.87 13. 1 13.7 14.3 15,4 16 .9 14.8
Serv ice 45.58 47.0 46.8 4 5.8 44.3 42. 1 44.0
T a ble t o. Pro j ec ted T re nds in St r ucture a fG DP fro m th e Dem and Side lli gh Case
Sce na r io( % sha re in G OP)
Aver ag e
It em s 2009110 20 10/11 20 11112 20 12113 20 13/ 14 20 1·4115 (20 1011 1-
2014/t 5
Total Con summion Ex penditure 94.5 93.9 9 1.9 89.2 86.4 no 88.9
Gross Do mestic Capital
Formation 22.3 22.6 22.4 22. 1 2 1.7 2 1.2 22.0
Expo rts of Good s and Non -
Fac tor Services 13.6 15.5 17.5 19.5 21.7 24.0 19.7
Impo rts of Goods and Non -
Fac tor Ser vice s 33.0 32.6 3 1.7 30.6 29.4 28. 1 30.5
Resou rce Bala nce ( 19.3) ( 17.0 ) ( 14 .2) ( 11.0 ) (7 .7 ) (4 . 1) (10 .8)
Do mesti c Sa vings 5.5 6 . 1 8. 1 10.8 13.6 17.0 ILl
3.2.2.Prospect s f or G rowt h, Wellbei ng a nd Pover ty
Macroeconom ic indicators are used to understand the linkages between growth and
poverty reduction effort s. Understa nding poverty and wellbeing indicators and analysis of
poverty enables the causes of poverty to be identified. The results of poverty analy sis are
important in design ing policies. deve loping strategies and in iden tifying measures to be
taken by the government. Analysis of poverty also helps to evaluate the success of ongoing
polic ies and strategies. and thei r implementation.
Poverty ana lysis is multifaceted. The cost of basic needs approach is used to measure the
income or consumptio n expenditure aspects of pove rty. Consumption is preferred as an
indicator of welfare, as opposed to income. beca use con sumption better captures the long-
run level of wel fare than curre nt income. Con sumptio n a lso reflects better the households'
ab ility to meet basic needs and it reflects the extent of households' access to credit and
ab ility to save when the ir income is higher . For these reasons. consumption indicators
make a better measure tha n income. beca use they re flect actual household living (or
welfare) standards. For consumption to be an accurat e indicator of households' welfare it
has to be ad justed to take account of the difference in the ca lorie requirements of different
household membe rs; for age and gender of ad ult member s for instance. T his adju stment
can be made by dividing real household consumption expenditure by an adult equivalent
sca le that provides a proxy measure of the nutr itiona l requ irement of each family member.
The adult equiva lent sca le will. therefore. vary for different age groups and with the gende r
of ad ult household members. For the reasons descr ibed, many of the poverty ana lysis
instruments, such as the head count ratio, use consumption indicators rather than income
ind icators.
'Total poverty' refers to an aggregate measure of poverty that takes into account both the
food and n on-food requ ireme nts. At this point it is worth not ing how poverty lines are
establ ished. The most widely used method of estimating poverty lines is the cost of basic
predeterm ined rmrurnum calorie requ irement level (2, 100 kiloca lo ries). This measure
enab les us to establish a consistent poverty line for Ethiopia. On this basis, the Food
Poverty Line is determine d by the minimum per ca pita expenditure requ ired to acquire the
bundles of food which provide 2,100 kilocalor ies. In add ition to th is measure, the total
minimum per ca pita expenditure for basic needs (food and non-food) is used to determine
the Poverty Line. Using th is methodology the Central Statistica l Agency carried out studies
in 1995/96 that determ ined that the pove rty head count was 45.5% and the number of
people under the Food Poverty Line was 49.5%.
It is clear that, in Ethiop ia, econ omic growth is cruc ial for the eradication of pove rty over
time, for c itizens to enjoy fast grow ing living standards. This econ omic growth has to be
rapid, susta inable and fair. Fa ilure to realize such type of economic growth will place
considerable constraints on the poverty eradication agenda . It is for these reasons that
Ethiopia ' s development polic ies in general, and the GT P policies and strategies in
particular, place grea t focus on ensuring sustained, rapid, broad based, poverty reducing
and fairly distributed economic growth. Such economic growth will result in jobs being
created, as a res ult citi zens' earnings will rise and the ir living standards improve and this
will lead to the cou ntry brea king out of the poverty trap.
The rece nt study conducted by the Ministry of Finance and Economic Development,
" Dynamics of Growth and Pove rty in Ethiopia (2008)" (based on three wide ranging
studies, the Household Income Co nsum ption And Expenditure Survey, Wel fare
Monitoring System a nd the Participatory Poverty Assessment) shows that a I% per ca pita
GDP increase will result in a 1.7% decrease in the poverty head count index. Based on the
identified relationship betwee n economic growth and its elast icity to poverty, it is
ca lculated that the pove rty head count ratio and the food poverty ratio have dec lined to
29.2% and 28.2% at the end of the year 2009/ 10, respect ively. An updated calculation of
the linkage between economic growth and poverty reduction will be dete rmined when the
current Household Income Consumption Expendit ure study is completed. It is expected
that the current HICE study will revea l that the poverty head count ratio, a nd the
percentage of people living below the food poverty line, will be less tha n the current
est imates because actual economic growth has been higher than proj ections for the last
se vera l years.For th is reason the GTP boldly aims to achieve the MDG target of halving
ext reme poverty and hunger by 20 14/ 15.
3.2.3. Fiscal policy
The mediu rn-te rrn fiscal policy obj ective is a imed at ma intaining the defic it at a sustainable
level. T his requires inflation to be conta ined at single digit leve ls while simultaneously
increasing public spending on pro-poor sectors. Among the major objec tives of the fisca l
policy are to strengthen domestic revenue generat ion capacity, finance maj or investment
projects with own revenue, mobilize external grants, arra nge exte rnal borrow ing accordi ng
to the borrowing policy of the cou ntry, and to mobilize domestic borrowing in a way that
does not adve rsely affect macroeconomic stability.
improving the presumptive tax system. deve loping and implementing an aud it progra m to
cove r a ll taxes, and imp roving the adm inistrat ion o f the Value Added Tax.
Efforts will a lso be made to improve the tax base a nd bring new businesses into the tax net.
particularly where they were beneficiaries of tax incentives (tax holid ays). As a resu lt of
these measures. it is ca lculated that. by the end of the GT P period. the share of tota l
domestic reve nue and tax revenue to GOP at c urre ntmarket prices wi ll reach 17. 1% a nd
15%. respective ly. Th e share of budget de ficit includ ing gra nts to GOP at current market
prices will be ma intained at abo ut 2% on average so as to mainta in macroeconomic
stability (See Table 1I below).
Tab le II , Fisca l Projection As a Percentage of GDP at @C M P (Base case Scenario)
Average
Items 2009 /10 2010111 2011112 2012113 2013 /14 2014 /15 (2010111·
2014 /15
Total Reve nue lncludin ' Grunts 17.3 17.8 18A 19 .2 2004 20A 19.2
Domest ic Revenue 14.0 14. 1 14.2 15.3 16.8 17. 1 15.5
Tax Reve nue 11.3 11.7 12. 1 13.2 14.7 15.0 13.3
Non-ta x Revenu e 2.8 2.4 2. \ 2. \ 2 . \ 2. \ 2.2
Gran ts 3 .2 3.7 4.3 3.9 3 .6 3.3 3 .7
Total Exrcnditu rc 18.6 20.5 20.2 21.1 22.3 23.7 2 1.6
Recurr ent Expenditure 8 .4 8.9 8.6 8. ' 9 . \ 9 .3 ' .9
Capital Expenditure 10.3 11.6 11.6 12.3 13.3 [4 .4 [2 .6
Po vcrtv Orie nted ex penditures 12.3 13.5 13.7 14.R 16. 1 17.3 [5. 1
Expenditure Deficit includin g
( 1.3) (2.7) ( 1.7) ( 1.9 ) ( 1.9 ) (3 .3) (2.3 )
Grants
Dcflclt Eina ncin u U 2.7 1.7 1.9 1.9 3.3 2.3
External net l . l 1.0 0.8 0.8 0 .8 0 .6 0 .8
Domestic net 0 .5 1.6 0.9 1.\ 1.2 2.7 1.5
On the expendit ure side. resource a llocations have been guided by the governmen t's pro-
poor growth policy where by the lion' s share of ava ilable resource s are a llocated to priority
infrastruct ure and services that enhance pro-poor economic growth and soc ia l
development. Th is policy will be applied more vigorously dur ing the GTP period .
Accord ingly. the highest percentage share of tota l spe nding will be a llocated to pro-poor
sectors where ca pita l expend iture as a pe rcentage share of GOP is forecas ted to reach
14.4% at the e nd of the plan period. (See Ta ble I I).
3.2.4. Monetary Policy, Exte r na l Sector and Fina nc ial System
Monetary Policy
Ethio pia' s moneta ry policy will continue to focus on mainta ining price and exchange rate
stabi lity so as to create a macro economy that is conducive fo r rapid and susta ined
economic growth. Inflation will be held at single digits during the GTP period (20 10/ 11-
sa ving and investmen t. In this regard real intere st rates w ill be ma inta ined above ze ro
.w hile non- tradit iona l so urces of revenu e mob ilization such as bo nd sales to citizens at
home and the Diaspora wi ll be put in place . The co ntribution and co verage o f social
security se rvices w ill be im proved , wh ile policy mea sures that enco urage dome stic sa vings
fo r mac hinery and hou sing investment w ill be introd uced.
Financial system
In the GT P per iod t he financ ial sector w ill be st rengt hened wit h the aim o f es tab lish ing an
accessible, e fficie nt a nd co mpetitive financi al sys tem. One pu rpose of this initiat ive is to
increase domestic savi ng so as to s ustain the fast and sustainable grow t h req uired to
provide resource s for ex pandi ng and improv ing public services . Govern me nt will introd uce
capacity build ing measures to ra ise the efficiency of finan cial institutions and improve
bank ing practice s so as to ensure health y co mpetition, support private secto r ban ks and
finan cia l instit ution s to im prove the coverage and qua lity o f the finan cial se rvices they
provide and help t hem to minimize non -performing loans and improve the ir pro fita bility.
During the GTP pe riod, greater e mphasis w ill be placed o n strengthening modern payment
systems, deve lopi ng reg ulatio ns to inte rna tio nal sta nda rds and fac ilitat ing acce ss to
finan cia l services. It is ex pected that these init iatives will e nable t he current level of access
to finance o f 2 0% to reach 67 % by the end o f the plan pe riod.
The Nationa l Bank of Ethio pia w ill strengt hen its human resources and information
techn ology infrastructu re. The capac ity of the Ethio pian Fina ncia l Inst it ute wi ll be
st rengt hened. Information tech nology that supports the ban k informat ion exc hange s system
wilt be exte nded to micro finan ce institutions. The expan sion and improvement o f modern
IT networks, a nd their effective util izatio n by financial instit ut ion s w ill ea se
com municatio n a nd fac ilitate the flow of real time mo ney from one corner of the co untry
to ano ther. The introduction and wide r app lication of payments systems that use faster,
ele ct ronic means, such as cards, mo bile or ot her elec tro nic instrum ents, w ill facilitate
improve d bank ing services and help to red uce tran sact ion costs.
3.3. SELE CTED MACROE CONOMI C AND SECTORAL TARGETS
Ta ble 12 summa rizes the key macroeconomic and sectora l targets expected to be reached
at by the e nd o f the GT P period. T hese targets are a lso used to trac k the progress o f the
eco nomy and monitor the effect iveness of the GT P impacts as measured by maj or
ind icators. Detail s of target s are presen ted in the chapters and sec tio ns that foll ow.
Tab le 12. Selected GTP Targets
Sect c r / t nd tca t e r
Baseline Plan Ta rge t
2009/10 2014/15
The Ma cro Econom y
Real GDP growth rate (%) l OA 11.4
Sect orll nd ica t or
Baselin e Plan Targe t
2009/10 20 14/ 15
Dom estic revenue as% of GDP 14.0 17. 1
Tax reve nue as% of GDP 11.3 15.0
Total pover ty-or iented expenditure as% or GDP 12.3 17.3
To tal expe nd iture as% share of ODP 1It 6 23.7
Capital ex pend iture as% of GDP 10.3 14.4
Rec urrentexpendi ture as% o f GD!' '" 9.3
Over all balance includ ing gra nts as% of G D!' ( 1.3 ) (3 .3 )
Externa l (Net) as% of GDP 1.I 0.6
Domestic ( Net ) as% of GI>P 0 .5 2.7
Exter na l sector
Total exports as% sha re of GDP 13.6 22.5
Total imports as% shar e of GDP 33.0 35. 7
Resource gap as% s hare of GDP ( 19.3) (13. 1)
Merc handise ex port as% share of OD P 6 .7 15.6
Merchandise import as% share or ODI) 26.5 32.0
Pove rt y& Welfar e
Total Poverty Head Co unt (%) 29.2 22.2
Food Poverty Head Co unt (%) 28.2 2 1.2
EC OJ'lriOM IC DEVEL OPM ENT
Agr ieu lt u re
Agricu ltural a nd allied act ivities growt h ( 'Yo) 7.6 ' .7
Crop productivity (qVha) 17.0 22 .0
Flower (min stem) 2.7 48 5.859. 1
Land cove red with multip urpose/versatile trees (tho usands ha l 6.058 16.2 10
Number o f extens ion service bene fi cia ries (thousands) 5.090 14.640
Coffee exports t'ro nncs) 3 19.647 600.970
Meat ex ports (00 0 Metric Tonn es) 10. 18 II I
Num ber of househo lds part icipat ing. in Productive Safety Net progra m
7. 1 1.3
(mln)
Indu st ry
Su gar prod uction (000 to nnes) 3 14.5 2250
Sect orll nd ica t or
Baselin e Plan Targe t
2009/10 201-1115
Mining
Gold expo rt (kg) 3.9 07 X.700
Gold sold to NBE b ~ urtisan al miners assoc iations ( kg) 2.866 5.250
I NI;RASTR UCTl IRE Il EV ELOPM ENT
Road s
Total road length 1 road network (000 km ) -1.8.8 6-1..5
Avcragc rime taken to all- weathe r road (hrs) 3 .7 \.4
Road density [km /I 000 km 2) -1.-1..5 123.7
Road density (km /l (jOO po pulat ion ) O.M 1.54
Roads in accepta ble conditi on (%) 8\ 86.7
Area further than 5 km from all-weather muds (%) 64 29
Construct ion ornew all weather road that connect a ll rura l kc belcs
II 71.523
with main roads ( Km)
Railwa )'
Railway network (Km} - 2395
[ ne rg"v
Electric ity scr v ice co....erage (%) ,\ 75
Po wer genera ting eapae it) ( MW) 2.000 8.000
Reduce transmi ssion lincs power losses (%) 11.5 5.6
Increase number of new c ustomers (min) 2 ,
Length o f dist ribut ion lines co nstr uctio n (Km ) 126.0 38 25lW 38
Rehabilita tion powe r rransrntssto n line s (Krn) -1.50 8.130
Te teeo mm uni cation
Fixed line telephone density (%) 1.36 3.4
Mobile tele phone acces s/d istribution (%) 8.7 "
Rural popu lation telccomm unication service access with in 5km rad ius
62. 14 100
(%)
Fixed telephone subscribers ( in min ) 1.0 3.05
Mob ile telephone subsc ribers (in min) 6.52 ' 0
Internet service subscribcrst in min) 0. 187 3.69
Wat er
Ove ral l pota ble wa ter coverage (% ) 68.5 98.5
Sectorllndicator
Baseline Plan Target
2009 /10 2014/15
Jo b created thro ugh MSEs (min) - 3.0
Provision of housing and basic serv ices (n umber o f housing units) 2 13.000 370. 000
Reduction o f slum areas (%) 60 30
Roa d co nstructed with cobblesto ne (km] - 373H
SOCIAL DEVELOPMENT
Edu cation
Net primary enrolment rate (I-H) (%) H7.9 100
Primary school g irls to boys ratio 0.93 : 1 1:1
Primary schoo l pupil text bo ok rati o 1.25 : 1 1:1
Adu lt educat ion part icipation Me (%) 36 95
Total numbe r of undergraduat e studen ts in governmen t higher
185.788 46 7.44 5
insti tution s
Total number of TV ET students 717603 1.127.330
Health
Primary hea lth services coverage (%) ' 9 100
Under flve mortali ty rate (per 100(1) 101 6'
Inf ant mort alit y rate(%) 77 31
Maternal mortality rate (per IOO.UOO) 590 267
Co ntracept ive preva lence rate (C PR) (%) 32 ""
Births atte nded by skilled hea lth person nel (%) 25 60
Under one year penni3 immunization coverage (% ) sz 96
Percentage of ho useho lds in malaria pro ne area s with insecticide -
lOll ron
treated bed ne ts (%)
Reduce inc idence o f malaria 1l.7 <0.7
II IV/AIDS incidence rate (%) 0.28 0.14
Increase TB case detection rate (%) 36 75
CHAI'TE R 4.
FINANCI NG THE PLAN
Financ ing soc ial and eco nom ic devel opme nt programs is essentia l for the real ization of the
o bj ec tives stated in th e GTP. A llocation o f finance is based on the med ium term Macro
Eco nomic Fisca l Framewo rk, an instrume nt used by the go vernme nt to frame reso urce
expectations from domest ic and externa l so urces and a llocate resources to key secto rs in
line w ith the overa ll development o bjectives of the co untry. The process o f preparing the
Macro Eco nomic Fisca l Framework begin s by identify ing the overa ll reso urce e nve lop e in
the period from 3 to 5 years.
Dur ing the GTP five ye ar period, a llocati on o f devel opment fi nance will a im to s uppo rt t he
ov erridin g obj ect ive of po verty erad icatio n - with in the co un try's finan cia l capac ity a nd
wit hin the ma intenance of stab le macroeconom ic co nd itions. Ba sed on these o b jec t ives, a
larger share of total go vernme nt s pend ing wi ll be a llocated for deve lopm ent of pro poor
and growth en hancing sec to rs. Gove rnment recurre nt ex pend itu re w ill be fu lly financed
from domestica lly generated re venue whilst, ca p ita lexpend iture will be financed by
dome st ic revenue and external so urces.
Proj ections o f government reve nue, allocation of resources to gov ern me nt's prio rity
sec tors, es timates of budget d eficit. and financing under the base case sce nario are
presented in the fo llowin g sec tio ns.
4.I . G OVERNM ENT R EV ENUE
Do mestic revenue w ill be mob ilized mai n ly from ta x and non-tax so urces. Estima tes o f
revenue co llected from taxes for the fi ve year per iod 20 I0 11 1 to 20 14/5 ass ume full
imp lementati on of GTP init iativ es, inc lud ing on-go ing tax reform, improve me nt in
effi c iency of ta x ad mi nistration, and broad ening the tax base in line w ith the eco nom ic
gro wt h anti c ipated a nd the potent ia l reso urces that ca n be mob ilised . Non-ta x so urces of
revenue w ill be mob ilized from the d ividends and proceed s o f pub lic ente rpr ises.
Other in itiat ives to ra ise financ ing for the GT P inc lude encouragi ng private sa vings and
investm ent, sca ling up externa l de velopment assista nce and increas ing Fo re ign Direct
Investment (FD I). Th ere a re so urces of de ve lopment finance that do not appea r in
go vernment's budget. The se incl ude o ff -budge t fi nancing by NGOs, loca l governme nt
expe nd itures using t he ir ow n reso urces, and o wn so urce spend ing by pub lic ent er prises.
Du ring the five year GT P period, domestic reven ue, incl udi ng grants, is ex pec ted to reach
ET B 173 bIn by the end o f the plan period, up from ETB 66.24 bIn in 200911 0, o ut of
which, ET B 145.3 bIn will be mobilized from dom estic so urces a nd the remain ing ET B
27.7 bIn ET B from extern a l so urces. (See Table 13 below).
T a ble 13. Pro j ec tedGT P Revenu e R equir ement s Under Base Cas e Scena r io (in min
ET B)
Total
Items 2009 / 10 20 10111 2011 /12 2012/ 13 2013114 2014/15 (20 10/11-
2014115
Total Reve nue Including Grants 66.237 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
Domestic Reve nue 53.86 1 63.3 15 14.58 5 94.1 19 12 1.660 145.299 498.978
Tax Revenue 43.3 15 52.53 4 63.588 8 1.228 106.-160 127.212 431.022
Non-tax Revenue 10.546 10.78 1 10.997 12.891 15.200 1&.087 67.950
Grunts 12.376 16.-19 1 22.356 2·t162 25.864 27.74 1 116.6 13
4.2. G OV ERNM ENT EX PENI)ITU RE
Government developmental expenditure is determined by the fi nancial capacity of the
country where the finance is collected from tax. non tax sources of revenue a nd offic ia l
development assistance . Governm ent rec urrent expe nditure during the GTP will be based
on the base year (2009/ 10) spend ing. the growth prospects o f the country in the coming
yea rs and the assumption of a stable macro economy. Ca pital expendi ture during the GT P
period prioritizes the financing of ongoing projects a nd investments o n pro-poor sectors
(such as agriculture and rural deve lopment. food security. water. ed ucation. hea lth. roads.
rural e lectri fication. etc) that will help realize deve lopment policies and strategies set by
the governme nt and described in the GT P.
By the end of the plan period. it is expected that tota l government spending will reach ET B
20 1.1 bin. up from its ETB 7 1.3 bin in 2009/ 10. ETB 78.9 bin of the expected 20 14/ 15
expen diture will be a llocated to finance rec urrent expenditure and ET B 122.2 bin to
finance cap ital expend iture . By the end of the GT P period. expendit ure on poverty-oriented
and growth enhancing sectors will reach ETB 146.8 bin.
Ta ble 14. Proje cted gove r nment Ex pend it ures, Base Case Scena r ios (min ET B)
Tolal
h ems 2009/ 10 2010 / 11 20 11112 2012113 2013 /14 2014 / 15 (20 10111·
2014 /15
Total Expe nditure 7 1.334 92.049 106, 125 130, 187 161.-152 20 1.146 690.959
Recurrent Expenditure 32. 0 12 40.046 45.224 54.3 83 65.-177 78.9 24 284.054
Ca pital Expe nditure 39.322 52.003 60.901 75.804 95.975 122.222 406.905
Po verty Oriented Expendit ures 47.251 60.682 72.165 9 1.13 1 116.24 5 146.837 487.060
Agr iculture and Food Security 6.99 8 9.5 18 13. 123 15.905 20.302 25.699 84.547
Education 16.870 2 1.703 24.562 29.579 36.354 44.025 156.223
fina nce required during the plan per iod 58.5% will be spent on cap ital outlays and 41.5%
on rec urrent expenditure. (See Table 14 above)
4.3. F I NAN CI NG
In 2009110, the total government revenue was ETB 66.2 bin and the total expenditure was
ET B 7 1.3 bin. The budge t deficit. including gra nts, of ETB 5. 1 bIn was financed th rough
borrowing from both domestic and external sources. The budget deficit of ETB 28.11 bIn
at the end of the GTP period is expected to be financed from domestic (ETR 22.9 bIn) a nd
external borrowing (ET B 5.2 bin). During GT P period a total of ETB 75.4 bIn budget
deficit will be financed from domestic (ETB 50.6 bIn) and external borrowing (ET B 24.4
bin).
Table IS. Projecte d Budget Ga p D urin g GTP, Base Case Scena r io (in min ETB)
T ot a l
Item s 2009110 2010/11 2011112 2012 /13 2013114 2014 /15 (20 1011 1
-20 14/15
Total Revenue Including Grants 66.2 37 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
Domestic Revenue 53.86 1 63.3 15 74.585 94.11 9 12 1.660 145.299 498 .978
Tax Revenue 43.315 52.534 63.5 88 81,2 28 106.460 127.212 43 1.022
Non-tux Revenue 10.546 10.78 1 10.997 12.89 1 15.200 18.087 6 7.956
Grants 12.376 16.49 1 22.356 24. 162 25.864 27.74 1 116.613
Total Expendit ure 71.3 34 92.049 106. 125 130, 187 16 1.452 20 1. 146 690.959
Recurrent Expenditure 32.0 12 40.046 45.22-4 54.3 83 65.477 78.92-4 284.05-4
Ca pital Expenditure 39.32 2 52,(103 60.9 0 1 75.804 95.975 122.222 406.905
Poverty Oriented expenditures 47.25 1 60. 682 72, 165 91,1 3 1 116.245 146.837 -487.060
Expenditure Dcflclt ind oGrunts -5.09 7 - 12.243 -9. 184 - 11.906 - 13.928 -28. 10 6 -75.368
Dcflclt Financing 5.09 7 12.243 9. 184 11,906 13.92 8 28. 106 75.368
External net 4.13 1 ..L520 4.201 4.97 4 5.490 5.220 24,405
Domestic net 1.758 7.356 4..983 6.93 2 8,4 38 22..886 50.59 5
Privatiza tion 366 366
Proj ected expenditures presented in table 14 and 15 are based on the estimates of the
medium term Macro Economic Fisca l Framework. In co ntrast, Table 16 presents
expenditure requirements presented by impleme nting agencies. Thus. an amount of ETB
756,066 bin expenditure is estimated by the implementing agencies which exceeds by ET B
65.1 bIn compared to the estimate of the Macro Economic Fiscal Framework. Th is budget
will be a llocated in a lignment with the government's fisca l policy and base d on the sectors'
annual plan and budget. The budget defici t from the perspectives of the resource need of
Table 16. Resource need by Implem enting Secto rs , Bud get Deficit and Financing (in
min ET B)
Total
Item s 2009/10 2010/11 201 1112 2012/13 2013/14 2014 /15 (20 10/11-
2014 /15
To tal Reve nue 66. 237 79.lW6 96.94 1 11lU 8 1 147.524 173.0·1.0 6 15.59 1
Total E....pcnditu re Req uired 7 1.334 9 2Jl48 126.827 145.434 174.842 2 16.9 15 756.066
Recur rent Expendi ture 32.0 12 40.04 6 54.046 6 \. 9 75 74.507 92.436 323 .0 10
Cap ital Expenditure 39.3 22 52.002 72.78 1 83.459 100.335 124.479 ..0 3.056
Poverty Oriented expenditures 47.251.6 60.6 82 86.243 10\.802 124. 139 156. 179 529.045
Agriculture & Food Security 6.998 9..5 18 15..683 17.768 21.6XO 27..334 9 1.983
Education 16.870 2 1.703 29.35 4 33.043 38.823 46.826 169.749
l lealth 4.547.6 6.260 8.398 9.826 11.876 14.778 5 1.U 8
Road 14.601 17.30 4 25.9lJ5 32. 130 39.065 48.818 163.3 12
Water 4.235 5.897 6.813 9.035 12.695 18.423 52.863
4.4. OFF B UDGET FI NANCING OF I NFRASTRUCT URE A ND INDUSTRIA L
PROGRAM S
As shown in th e followi ng tab les. the tota l financ ing requ ire ments o f infra structure a nd
indust ria l deve lopme nt prog ra ms which w ill be undertaken o ff government bud get are
forecas ted at ET B 569. 19 bin. The fi nan cing arrangements o f these prog rams w ill be 30%
from ow n so urces of development ente rprises and 70% fro m do mestic and exte rna l
borrow ing. Domestic borrow ing wi ll be effected w it hin the fra mewo rk of the govern me nt' s
monetary po licy and a stable mac roecono mic s it uat ion. External borrowing w ill be
undertaken fo llow ing the nat ional borrowing po licy. Of overa ll financing requ ireme nt
ind icated abo ve. ET 8 3 15.43 bin (55 .4 2%) is requ ired in fore ign currency as ind icated in
t he fo llow ing tab les..
Table 17. Off Bud get Fina ncing Requirem ent of Infra stru cture a nd Indu stri al Developm ent Program s
In mln ETB
S.N. SectorzSubsec ter 20 10/ 11 20 11112 2012113 2013/14 20 14/ 15 Tota l
I Industria l Development 16,229.67 5 1,954.59 56.728.13 42 .0 ~ . 96 26,59 1.73 193 ,561.08
1.1 Te xtile and Garment Industry 1.386 .5 2,4 47. 1 3.6 11.6 3,484.6 5.0 15.6 15,945.4
~~ ~- -~~-- ~~--~- ~-~~- --
1.2 Metal Engineer ing Ind ustry 32 1,454 5.780 9.60 0 3.600 20.46 6
- -
1.3 Ag ro-Proc cssing Industry 488.6 647.5 86 2.5 888 . 1 460 3 ,346.7-_.
1.4 Chemical. Pharmaceut ica l and Ceme nt Indust ries 473.9 8.740 . 1 12.658 7.89 5.4 4.826 34.593.4-_.
1.5 Fertilizer Complex Ind ustry 75.99 3,282 .45 3.384.33 3,2 90.24 3.172 .0 1 13,205. 02-_.
1.6 Lea ther and Leather Prod ucts Ind ustry 532.9 2.569 .4 2. 129. 1 1.487.8 15 6,734.2
-- ~~--~- --
1.7 Micro and Sma ll Scale Ente rprises 2.909 .4 3.354.3 336.4 0.00 0.00 6,600. 1
--
I." Managemen t and Privatization o f Puhl ic Ente rprises 1.155.7 4.962.2 5.5 10.7 4.256.7 3.2 10. 1 19,095.4
.~- ~~-- ~~---- -----
1.9 Sugar and Associated Prod ucts Ind ustry 9.174 .68 24.49 7.54 22.455 .5 11.154.12 6.293 .02 73,57 4.86
---
Sugar Ind ustry 9.00 8.6 1 24.265 .7 22.273.58 10.964.28 6 .269.25 72,78 1A2-_. -
Resident houses of sugar indust ry 166.0 7 23 1.84 181.9 2 189.84 23.77 793,44
2 Transport 35,088 .3 43,22 3 41,795,4 30,550 . 1 11,04 7.7 161,704.5
2. \ Rail 16.64 7 3 1.036 3 1.304 24.5 16 7.293. 1 110,796.1-_.
2.2 Ethiopian Airports Enterprise 740 866 ,4 1.689.5 2. 174.3 72' 6, 198.2-_.
2.3 Ethio pian Airli nes 14,94 2.76 8.425.74 6.246.00 1,307.43 220.4 1 3 1.14 2.35
--
2A Ethio pian Marine Tra nsit Service 775 1050 1.290 1.569.1 1.98 1.6 6,665 .7
~~ --
2.5 Ethiopian Dray Port Se rvice 886.5 1.237.8 67\.2 336.7 143.7 3,2 75.9
--
2.6 Ethiopian Sh ipping Line 963.6 6 lO.8 552 .4 529 .7 530.3 3, 186.8
3 Co mmunicatio n 6,58 0 1,900 13, 190 0 0 2 1,67 0
3. \ Ethic-Telecom 6.5 80 1.900 13. 190 0 0 21,67 0, Energy 36,23 4 52,966 29,219 29,658 29,658 177,73 5
5 Add is Aba ha Reside nt I louses Co nstruction Project 2,640 2,640 3 ,080 3,08 0 3,520 14,960
Grand Tota l ( 1+2+3+4+5) 96,638.53 152,687.33 143,970.23 105,228 .20 70,666.84 569, 191.10
Foreign Currenc y Requirem ent ( % ) 62.85 53.3 2 54.0 1 53,4 2 53.46 55,42
"
Table 18. Off Budget For eign C ur rency Requirement of Infrast r uctu re & Ind ust ria l Developme ntProgram s
In mIn ETB
S.N. Secto r/S ubsecter 20 10/11 20 11/12 20 12/13 2013 / 14 2014 /15 Total
1 Industrial Development 7,246. 19 22, 582.26 25,29 7.96 2 1,873.89 14,659.7 1 9 1,660.0 1
1.1 Tex tile and Garment Industry 826,4 lA 5X.5 2, 152.5 2.076.S 2.997,4 9,511 .60
--
1.2 Metal Engineering Ind ustry' 15.8 7 1X.3 2.855.3 4.742.4 1.778.-1 10. 110.20
-- ------------- -----
I.J Agro- Proccssin g Ind ustry 293.2 38 8.5 517 .5 532.9 276 2.008. 10-_.
IA Chemi cal. Pharmaceutical and Cement Industries 499,4 6.244 .4 8.967.-1 5.657.4 3.52 4. 1 24.892 .70
-- -- - ----
1.5 Fertilizer Compl ex Ind ustry 60 .79 2,625. 96 2,707.-16 2.6 32. 19 2.53 7.6 1 10.564 .0 1
--
1.6 Leather and Leather Products Ind ustry 316 1.523.7 1,262.6 882.3 8.9 3.993 .50
--
1.7 Mlcm and Small Scale Ente rprises 2.880 .3 3.320 .8 JJJ (I (I 6.5 34. 10
--
I., Manage ment a nd Privatization of Public Enterprises 777.8 3,33 9 .6 3,708.7 2.864 .8 2. 160.4 12.85 1.30
-- ..._- --- ,-,-- --_ .._-
1.9 Sugar and Associa ted Prod ucts Ind ustry 1.576.5 2.962 .5 2.793.5 2.485. 1 1.3 76.9 11.194.50
-- -
Sugar Ind ustry 1.186 .9 2.54R.6 2,48 4.1 2.228 .5 1.376.9 9.825.00-_.
Reside nt I lo usesof Sugar Industry 389.6 4 13.9 309 .4 256.6 (I 1.369.50
2 Tra nsport 26,4 8!U6 28,247 .1-1 26,781. 7 18,-178.63 7.25-1.9 1 107,24 7.75
2.1 Rail 9.48 8.8 18.6 2 1.6 17.2 17.2 13.483 .8 4.0 11.2 62.8 22.60
--
2.2 Ethiopian Airports Enterprise J7 22.7 964.5 1.·130 .3 4535 2.90R.00
-- -----
2.3 Ethiopian Air lines 14.942.76 8.42 5.74 6.2 46.00 1.307.43 220,4 1 3 1.142.35
--
2A Ethiopian Marine Transit Service 750.6 6A 1.286 1.56 5.9 1.96 0.8 5.569 .70
---
2.5 Ethiopian Dray Port Serv ice 422.6 6 71.8 54 7.4 195 .3 R4.7 1.92 1.80---
2.6 Ethiopian Shipping Line 843.6 498 .9 520 .6 495 .9 524. 3 2.883.3 0
3 Communication 4,700 1.,360 9420 (I (I 15,-180.00
3. 1 Ethic..Telecom 4.700 1.360 9420 (I (I 15,480.00, Energy 22,27 1 3,0 717 16,256 15,853 15,853 100,950.00
5 Addis Ababa Resident I louses Co nstruction Project 3·U 26.6 9.5 9.5 9.5 89.30
Foreig n Currency Require ment (min ETIl) 60,736 .75 82,933. 00 77,765 .16 56, 2 15.02 37,777. 12 3 15,-12 7.06
Overall Fina ncing Req uirement (mIn ETIl) 96,638.53 152,68 7.33 143,9 70.23 105,228.20 70.666.8 -1 569, 191.10
Foreign Cur rency Requirement (%) 62.85 53.3 2 5·U I 53.42 53.46 55.42
"
4.5. TilE ROLE OF TilE PRIVATE SECTOR AND Til E PUBLIC
As pointed in the previous chapter, many development programs and projects are undertaken
by the government and other development actors. Previous experience shows that the
participation of the private sector, non-gove rnment organizations and the public at large in the
deve lopment process has been significantly inc reasing. Accordingly, in the next five years,
the private sector, the public and non-government organizations are expected to play a more
active role and thereby significantly contribute to the success of the GTP. The contribution of
the private sector, the public and non-government organizations is the refore included as one
c ritica l element of the country' s ove rall capacity to finance the GTP.
CHAP TE R 5.
ECONOM IC SEC TO RS DEV ELOP M ENT PLAN
5.1. A GRI CULTU RE AND R URA L D EVEL OPM ENT
5.1.1 Stra teg ic Directi on
Main focuses for ag riculture and rural deve lo pment a re increa sing the capaci ty and exte nsive
use of labo ur, proper ut ilizat ion of ag ricu ltura l land, taki ng acco unt of different ag ro-
eco logical zone s, linking specia lizatio n wit h d iversification , integ rating agricultura l and rura l
developmen t. strengthe ning the ag ricultural marketing system and effec tive implementation
o f the sca ling up o f best practices in the sector. Bear ing t hese strateg ic d irecti ons in mind. the
Agricultural Development -Led Industrialization Strategy emphasise s that sma ll holder
farmers a nd pastora lists need to use e fficiently ava ilab le modern ag ricultural techno log ies that
increase productivity and production. In add ition. the private sector will be e ncouraged to
increase its share of investment in ag riculture. The remarka ble growth that has bee n registere d
to date will be furt her strengthened in the GT ? period . In order to expa nd Ethiopia' s ex port
markets. initiatives will be put in place to increase penetration of international markets.
During the GTP period. a key strategic direction is to ensure sma llho lder ag riculture beco mes
the ma in source of ag ricu ltural growth by sca ling up interventions based o n the experience
ga ined. and ide ntification of successes achieved in the previous plan period . Experience to
date has shown that it is possible to increase the productivity of sma llholde r farmers within
sho rt period of time by better utiliz ing smallho lders' labo ur, land and by using improved but
less ca pital inten sive ag ricultural pract ices and tech nolog ies. It is a lso the case that there is a
grow ing demand for agriculture products because of growth in popul ation. growt h in per
cap ita GDP. increa sing internationa l demand and grow ing de mand for ag ricultura l products as
raw materia ls inputs to the grow ing ind ustrial sector. These nationa l and international realities
j ustify the need for increa sed investment in agricultural sector to increase productivity and
production.
Th e results realised to date sho w that it is possible to transfo rm subs istence agriculture to
more ma rket led production . The key derivers of this c hange will be improvements in
farmers' productivity an d production. Thus, to lay the foundation for ind ustrial deve lopment,
to use agric ultura l inputs for the ind ustries. to prod uce sufficient food cro ps and high va lue
products for internatio nal market. agriculture will co ntinue to play a lead ing role in the GT P
period .
a) Sma llholde r Agr ic ult ure Developm ent
Sma llholder agriculture deve lopment will focus o n the following three strategic directions.
Sca ling up of best prac t ices : Th e productivity of most average farmers is two to three times
lower than that of best fann ers. Sca ling up of best practices to bring up the productivity of
most ave rage farmers closer to those of best farm ers is the first strateg ic dir ect ion to be
deve loped and tested and, where results are encouraging, will be disseminated to farme rs and
pasto ralists.
Expa nd Irrj gatlon Developm ent a nd Improv e Na tura l Resour ces Co nse rva tion:
Accelerated and susta inable agric ultural growth will be secured by natura l resources
conservation, development and improvement of water utilizatio n, and expansion of irrigation
coverage . These a reas will remain focus area s during the fi ve yea r plan period and will
include develop ment of underground and surface water, irrigation development and natural
resource conservation. These in turn entail capacity building for fa rme rs a nd of govern ment
support structures.
Production of high value cro ps: A further implementation strategy is a focus on improving
the incomes of farmers and pastoralists. Farmers a nd pastoralists will be encouraged to shift
gradually from production of low value to high value products. This strategy will be
impleme nted gradually and will take accou nt of geographic d ifferences on specializations and
existence of favourable market and infrastruct ural factors.
b) Past oral Developm ent
Activities implemented in pastoral area s main ly focus on livestock resource. In that sense
priority is give n to water developme nt adeq uate both for the local community and livestock.
Th is activity will be implemented in relation to the improve me nt of pastora l land irrigation
deve lopment. Activities re lated to food sec urity will be implemented main ly in connection
with infrastructure deve lopments.
In area s convenient to irrigat ion development, resett lement of pastora lists on voluntary basis
will be another task to be undertaken. Identifying, selection and d issemination of improved
livestock breeds will be strengthened, and improved mob ile veterinary services will be given.
At local levels. empha sis will be give n to increasing the number of professionals and
strengthening their ca pacity so as to enab le them give support to pastora lists.
To benefit the pastora lists from their livestock wealt h, marketing system will be improved.
Thus standard livestock ce nters will be built, pastora lists wi ll be e ncouraged to organ ize
themselves into coope ratives. To implement these activities close support will be given by
the government. Extension systems will be strengthened; research ce nters will be expanded in
a way to adopt appropriate technologies that give solut ion to local problems. Generally a ll
possible measures will be fac ilitated to expand the exte nsion system integrated with the
pastoralist live lihood.
c) Private Secto r Agricultural Development
Agricultural development policy exp licitly states that private investors can partici pate in the
nation' s agriculture deve lopment endeavours. As a result of the effort s exerted to implement
this policy success has been rea lised in the floricultu re. The part ic ipation of private investors
has been mini mal in areas where extensive agriculture could be practiced, but where physical
infrastructure is weak and, as a result, the govern ment has been investing more in basic
infrastructure in these area s. Where infra structure has been expanded in rura l areas the
products that can be produced on limited land. using abundant labo ur (thu s gene rating
s ign ificant emp loym ent) as wel l a s inc reasing s upp ly of produ ce for export. Thi s type o f
private investm ent w ill requ ire co nsiderab le expansion of basic infrastructure and a plentiful
supply of lab our . T hese investments w ill be integ rate d w it h smallho lder agr icu ltu re and help
to provi de susta inable mark et s for sma llho lder fanner s .
5.1.20b jectin s
The broad o bject ive of agr icu lture and ru ra l dev elopment in the next five-year s is to ac hieve
accelerated and susta ined growt h that contributes to povert y erad ication an d achievem ent of
MDGs. The exce llent results o f. an d experie nces gained from . the imp lem entat ion o f ea rlier
as we ll as o ngo ing programmes w ill s upport the att a inmen t o f ag riculture and rura l
de velo pment secto ra l objec tives and of MDG target s by 20 15.
Dur ing the plan period natu ra l resourc es and so il co nse rvat ion. enha nced use of appro priate
techn ologies and pract ices as we ll as mark et oriented prod uctio n w ill serve as the instruments
to ensu re rapid ag ricult ural grow t h. A focu s on export led product ion w ill co m pliment
increased produ cti vity and ensu re acceler ated develo pmen t of the secto r. Ag riculture wi ll
co nt inue to be the maj or so urce of eco nomic growt h whi le sma ll ho lder fa rm ing w ill be the
major so urce of ag ricult ura l growth . The private secto r' s ro le in the sector w ill al so be
promo ted in or der to sec ure sustai ned ag ric ultura l and ru ra l develop ment.
5. 1.3 Ma jor Ta rgets
Maj or ta rget s for agr iculture and rural deve lopm entare ind icated in t he fo llowing table.
Tabl e 19. GT P T arget s for Ag ric ult ure a nd Rur al Developm ent
Description of Tar get s [ 200 9110 r 201 ·11I5
C u lt iva ted lan d
I. Total cultiva ted land utilised b ~ ' major foo d crops (mi n ha ) 11.25 12. 17
2 . Prod uction of cereals (m in hal 9 . 1 9 .6
3. Cereals prod uct ivity (qt/ha) 17 22
Coffee produ ct ion a nd p r odu cuvn y
4 . Cu ltivated land by sma llho ldc r fa rmers (h a ) -162.000 8 15,000
5. Co tfe c production (tons ) 3-1 1.000 831. ()OO
Live stoc k d evelo pm en t
6 . Cattle feed prod uct ion (qt s ) 50.000 1-15.000
7. Impro ved catt le bree ds (%) 10 .3 37
8. Product ion and distribution o f improved lives tock gene (m in dose ) 0 .35 2
9 . Proport ion ofliv estoc k vacci nated (%) 40 65
10. Proportion o f low grad e hide s and skins (%) 50 IS
II . Produ ction of impro ved animalfod der see ds (q ts) 50.000 1-\5.000
Descriptio n of Tar get s [ 2009/ 10 I 201·ms
Imp r ovin g so il fe rt ility
16. Areas under Vcrtlsot development (mIn ha ) 0.60 3
17. Acidic land treated with lime (ha] 22 10 37850
Nat ura l Reso urce Co nservatio n Prc gr um
18. Area of land re habilitated (min ha l 3.2 1 10.2 1
19. Land developed under comm unity based water shade developme nt
3.77 7.78
program ( min ha l
20. Tota larea o f land subjected to so il fertility research (min hal 0.894 2.82
2 i. Tota l area o f land covered with fore st and with forest master plan
0.70 2.20
(m in hal
22. Area of land covered with mult i-purpose trees (m In ha] 6.06 16.21
23. Forest coverage (mIn hal 13 18.23
24. Inc rea se multip urpose trees ( ha) 5062 10154
25. Natura l resources conservation act ivities in pastoral are as {ha l 200 ,000 350,()OO
Sma ll scare Ir r iga ti onProgra m
26. Land developed under small sca le irrigation (m In ha ) I 853 I 1850
Food sec ur ity
27. Number of househo lds participate in safety net programs (mIn) 7. 1 1.3
28 . Food reserve (min to nes ) 0.4 1 3
Agriru llura l Marketing
29. Coffee ex port (to ns) 172.2 10 600.970
30. Coffee expo rt earnings (mIn US!) ) 528 203 7
3 i. Increase expo rt ea rning o f o il seeds (m inUSn ) 358 11 20
32. Increase expo rt ear ning o f pulses (min USn ) 129.86 882
33. Increase the export of oi lseeds (tons) 299.\98 n-U 16
34. Increase the export of pulses (tons) 225.446 1.120.98 1
35. Increase the live anima ls exported (no.j 333.7 43 2.353. 000
36. Meat expo rt (tons) 10.\ 80 111.000
37. the a nimals and meat expo rt earnings (min USn) 125 1000
". Earning from flowe rs export (min US!) ) 170 535
39. Earn ings from ex po rt o fvegetable.herb and fruits (min USD) 3 1.7 948
40. Earn ings from ex port spices (mIn USD) 18.57 30
4 1. Export o fspices (tons) 15.594 34.2 40
42. Export of gums and incense (tons) ..U 70 10.233
43. Export earnings from gums a nd ince nse (min USD) 12.68 33.43
44. At the end o f the plan period it has been planned to generate usn 6.5 8 bln from the ag riculture sector
Description of Tar get s [ 2009/10 I 201·ms
Priv ate I nvest m ent in th e A gricultural Secto r
4 7. Prod uction co ffee and tee and other ex port c rops (mIn to ns) I 0.251 I 1.8 I
48 . Tran sfer nearly 3.3 min ha l and to commerc ia l fanning investors in transpare nt and acc ou ntable manner
Hertlcunure Development
49 . Land area und er fl owers production (h a ] 1.5&6 3.()()0
50 , Flower prod uction (mln c uts ) 2.74 8 5.859. 1
5 1. Lan d unde r the production o f vegetables. fruits an d herbs (ha] 2.472 33J)(1O
52. Prod uction ofve getables. fr uits and herbs (to ns ) 58.4 00 979.600
5.1..1 Implementation Strategies
a) Sma ll holder ag riculture
The major implementation strategy for agricu lture and rura l development in the GT P five year
period is to scale up the best practices identified to date . Agricu ltural technologies that proved
to be viable and bene ficia l, whe n tested by model farmers, will be transferred to other fann ers
as q uickly as possible and the design and capacit y buildin g activi ties necessary to implemen t
this strategy will be undertaken .
C r op production and productivity : As a result of the perfo rmance in agric ulture and rural
development. and the experiences gained, many of the condit ions that are important to
accelerate agr icultural growt h ha ve bee n identified. It is possible to increase the prod uctiv ity
o f smallholder fann ers within a short period of time. by better utilizing sma llholders' labour,
land and with the e fficient use o f ava ilable technolog ies as well as introduction o f improved
agricultural practices and tech no logies. To ensure in particular e ffective sca ling up of the best
practices the extension system will be continuo usly improved. while the ca pacity o f extension
age nts will be co ntinuously stre ngthened.
Adequate moisture areas : In a rea s with adeq uate moisture the focus during GTP
implementat ion will be on the scaling up strategy. Successful experience s, such as efficient
ways of utilizing rain water and use of benefici a l technologies. together wit h improved
agr icultura l pract ice s.will be expanded to increa se crop product ion and productivity to the
highest levels possible.
The core element of the sca ling up strategy is to exte nd those improved agricultural
tec hnologies and practices that have been tested a nd used by model farmers to a ll othe r
fann ers. To put these into pract ice, and overcome the constraints that ar ise while doing so,
continuously improv ing the exte nsion system, strengthening ca pac ity building, o rganisational
a nd support services will be important.
The main mechan ism ado pted to implement the sca ling up strategy will be to br ing together
best experiences accord ing to technology types. Th is formu lation process will be continuous
a s additional best experiences emerge during the implementation process. When improved
tec hnologies a nd agricultural practice s a re identified, training to introduce and improve skills
system will be put in place in order that market capac ity meets increased production following
the scaling up strategy.
Implementation age ncies a nd professionals will, at diffe rent stages, have to use best/model
farmers' in the training process so that practical experiences are shared in a learning process.
To ensure the benefit of experience is transferred effectively, the support of specia lists will be
provided by the extension system. At the end of the plan period, it is expecte d that, as a result
of these measures, of those farmers who participate in the scaling up program, 90% will
record product ivity results that meet the model fanner benchmark.
In order to increase cro p product ion a nd product ivity, technologies and practices thatimprove
soil fertility will be encouraged. Parallel to an increased use of chemical fertilizers.
government will introduce activities to create aware ness and deve lop skills to increase the
amount and coverage of organic fertilizer use. In areas where mo isture is adeq uate modern,
drainage methods will be introd uced in orde r to get full benefit from Vertisols. Steps will be
taken to gradually change the existing blanket fertilizer application system to one based on
so il ferti lity testing that identifie s d ifferent agro-eco logical areas, soils and suita bility for
maj or c rop types. The aim is for 90% of fertil izer use to be preceded by this type of procedure
and thus increase benefits from fertilizer application. In additio n, action will be taken to
increase distribution and use of organ ic fert ilizers, such as bio -fertilizers, that ca n easily be
used by farmers.
In adequate moisture areas, in order to increase crop production and productivity, improved
agricultura l practices will be applied. These include: the se lection of cro p varieties suita ble for
the soil type, adequate and timely farm preparation , use of the right planting time, the right
quality and qua ntity of the planting input, and mode rn planting/sowing practices. In order to
increase crop production and productivity, implementation of a ppropriate weed ing frequency
is considered important. Continuous assessment of pest infestat ions will be conducted, and
measures taken when there is an infestation. Emphasis will be given to harvesting, storing
and using matured crops in places and conditions where the crop is not exposed to pests.
While giving app ropriate focus to the use of rain water, act ions will also be taken to bring
about significant change in water use by expanding the area of irrigation schemes. In places
where it is easy to access underground water, fanne rs will be supported to construct hand dug
wells, and use them for production of garden vegetab les and permanent cro ps. Spec ial
attention will be given to small scale irrigation schemes developmen t. Technologies that
improve access to and use of water resources will be widely encoura ged and applied .
The combination of scaling up the lessons learned from best farmers with increased irrigation
is expected to double agricultural product ion. Other interventions will be integrated with these
implementation act ivities, such as Vertisol drainage and development of do uble cropping
systems based on Vert isols.
Tec hnology m ulti plica tion, supp ly a nd di str ibu tion : Expansion of the use of technology
and of its' supply and distribution systems is crucia l to increased c rop production and
productivity. For this reason, during the GT P period, improved technologies will be applied to
Livestock res ources deve lopment : Livestock development is expected to be promoted along
side the scaling up strategy of crop production in areas with adequate moisture. The focus will
be on the expansion of livestock fatteni ng a nd da iry develop ment technology. Improved
technologies for honey product ion a nd poultry resources deve lopment will also be introd uced.
The success of these technologies will require strengthe ning of support for breed
improvement, pasture deve lopment and animal health .
In the case of cattle breed improvement a strong focus will be given to artificial insemination
breeding tec hniques and the implementation of better local breeds' se lection and distribution.
Because both improved and existing breeds become more product ive when they receive
adequate and balanced feed, homestead pasture development, improvement of grazing land.
use of forest hacks. and development of pasture crops for zero grazing. will be undertaken .
Focus will also be given to preventat ive animal hea lth services such as the prov ision of
vaccination services (b efore incidence of disease), additional capac ity for vaccine storage,
tra ining adeq uate animal health specialists, and expanding service delivery faci lities,
including mob ile services.
In adequate moisture areas, based on the principles of specialization. adequate support will be
provided to farmers through the extension system to enable them increase the product ion and
product ivity of high value products. Extra focus will be given to production of coffee,
sesame. cotton, spices, vegeta bles and fruits. Broad support will be provided for preparation
and formulation of packages to sca le up outstanding experiences, and for the completion and
expa nsion of these in orde r to increase the productivity and quality of outputs and to e nsure
farmers realise increased incomes.
Research-exte nsion-fa rmers linkage: Strengthening the linkages between research,
exte nsion services a nd farmers is essential to the wider use of improved technologies and
practices. Help for farmers' to absorb technology, scaling up use of improved technologies,
and support for the technology distribution and operating systems will be further reinforced.
The research-extension-farmers councils that are coordinating this initiative at different levels
will be strengthened in their ca pability and capac ity to iden tify technological problems, to
promote joint solutions. to identify appropriate mechanisms and to become more results-
or ientated.
Initiatives to identify. test. produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock. natural resources and agr icultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies a nd their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
techn ology for irrigation.
Moisture deficit a reas: The government strategies for agriculture deve lopment interventions in
moisture deficit areas will take into account what is necessary for adequate moisture areas.
Some of these strategies are to enhance the development agents and farmers' skills, strengthe n
the organisational capacity of the extension system, and focus on the scaling up of
deve lopment that produced out standing results, such as soil and wate r conservat ion works,
these will be repl icated. Natura l resour ces intervention s will be exten ded to a ll moisture
defic it areas and ca n result in rapid rehabilitatio n, emergence of springs from the wate rshed
basin and use of the resources c reated for irrigation purposes.
Depend ing on the agro-ecolo gy, so il type and slo pe of the area, different technologies will be
put in place. These may include various types of stone and so il bunds as appropriate, wate r
rete ntion structures, ero sion protectio n technologies and ridge s, enhanced moisture retaining
technologies, dee p trenches, ponds, tie ridges and flood channels to divert rain water fo r use
on farms. Natura l resources development and protection practice s are labour intensive and
enable activities that use peop les' labou r in benefic ial and product ive ways. When
individuals, households or communities contribute labour it wi ll a lways be on a vo luntary
basis. The safety net program will be used in these cases, following the approach of commo n
asset development for the watershed develo pment works as designed.
The maj or benefic iaries of nat ural resource development and protection interventions will be
the peo ple and comm unities who will also be the owners of the faci lities provided and users
of the developed water shed in the ir loca lity. In particular, implementation will ensure that
yout h and wome n are well represented among partic ipan ts and beneficiaries of such
initiatives.
One of the resu lts to be ach ieved from watershed develo pment in moisture deficit area s is the
augmentation of underground and surface water. To th is end, the dow n stream watershed will
bene fit from irrigation and supplementary irrigat ion deve lopment and use. By this means.
mo isture defic it area s problems can be solved wh ile, at the same time, practices t hat increa se
productio n and ensure food security are put in place.
In moisture de fic it area s. through introd uction of various technologies for harvesting a nd
holding rain wate r, it is possible to produce crops once in a year. To thi s end , moisture
reta ining works will be widely implemented. Wate r rete ntion holes will be dug within a nd
arou nd far m plots to ensure the success of th is approach. Adeq uate production will be
e nsured by co nstructing a nd covering wate r harvest ing ponds using a geo-membrane, making
tie-ridge s on farms. building water and moisture reta ining works. Adequate mo isture will be
mai ntained and productive cropping will enabled by diverting flood water to farms.
In moisture de ficit area s, sma ll ruminants, honey bee and poultry develop ment wi ll be wide ly
integrated with the waters hed develop ment interventions. In th is regard spec ia l emphasis will
be given to sheep and goat production. Production of feed for these anima ls will e ncourage d
together with the wate rshed deve lopment interventio ns and by selecting from indigenous
breeds and using ava ilable exotic breed s and mult iplying them, productivity wi ll be enhanced.
In o rder to prov ide hea lth care for these animal s. vacc ine services wi ll be provided, and
contro l services provided for ex terna l parasites and d iseases such as midges.
When bee keeping is integrated with wate rshed development. beekeeping will become a more
exte nsive ly practice a nd honey produc tion increased at the househo ld level and through youth
and women associatio ns by introducing and supplying modern beehives. Improved poultry
The Food Security Program has been implemented in moisture defic it areas known for their
food insecurity prob lem s. The program has experience with household asset building, safety
net, and settle ment programs, as wel l as with off -fa rm income generating activities a nd with
the re lationships betwee n a nd integration of these activities. The safety net program will be
implemented jointly with the household asset building progra m. Th is is beca use it helps so lve
natural resource degradation problems, which in tum are a cause of the food insecurity
problem, and because it helps to build community assets. For these reasons, efforts will be
made to increase the program s effec tiveness.
By targeting those safety net beneficiaries who are involved in the household asset building
component and by giving them support for business plan preparation, training, technology
supply, c redit and extension services; the program will be better able to ensure the ir food
security. In the hou sehold asset building component, pac kages of support that are based on the
food security strategy wi ll be formulated . The packages wi ll include those which are suita ble
for moisture deficit areas and that ensure food security in low moisture areas, such as water
harvesting. The settlement program compo nent of the Food Security Program was designed to
e nsure rapid food sec urity. It is car ried out on voluntary basis and is an a lternative optio n
available to households. In addition, those households that have very sma ll plots, and land less
youth and women, will be encouraged to engage in n on-farm income generating activitie s.
They will be provided with adequate support to e nsure the ir food security by providing
packages of skill and business management training. credit and access to markets.
The early warning system wi ll be strengthened. Early warning of disaster and capacity
building for the response to disasters will be key tasks over the GTP period. Ensuring a timely
response to disaster will be included as part of agric ultural support and eco nomic
deve lopment strategies and programs. In terrns of preparedness for d isasters, food and non-
food reserves will be increa sed with storage capacity built to meet the increase, particularly of
food security reserves.
b) Pastoral de velopment:
The livel ihood of pastoralists is intertwined with livestock resources. Improving pastoralists'
livel ihood is inseparable from the development of these resou rces. Consequently, the main
emphasis will be given to water resources development for livestock and human consumption.
This initiative will be undertaken together with improvement of pasture land and development
of irrigation schemes. This approach has been tested and proven success ful in Fentalie, and as
eff orts are already being made to expand the approach to Somal i, Afar and SNN P Regional
States, it will be wide ly expanded in the five year plan period.
The Food Security Program , when implemented in pastora l areas, will be introduced such that
they bring abo ut complementary community investments and there by promote sectoral
development. For example, in areas where there are rivers, undertaking river diversion work
o r, where there is underground wate r, dr illing bore holes need to be implemented. Water
resource s released by these investments will be made ava ilable for livestock and human
consumption, as well as to deve lop irrigation schemes and improve pasture land. Together
In order for pastoralists to benefit more from livestock resources, focus will be given to the
expansion of livestock marketing system. Adequate livestock markets will be provided and
the existing markets improved. Animal transportation systems and market price information
systems will be strengthened. The pastoralist exte nsion system a nd research centers that
address the technologica l needs of pastoralists will be strengthened. Pastoralists will a lso be
encouraged and supported to voluntarily orga nize in to coo peratives so as to address their
marketing a nd other c hallenges. Efforts will be made to integrate the mutual benefits realised
by pastoralists and domestic investors involved in ancillary services such as stoc k fattening,
abattoirs and cattle trading. In addition, government support will be provided to private
investors for investment in pastora l areas in, for instance, slaughter houses and quarantine
stations that meet the required standards.
c) Private sector investment in agriculture
Horti cultur al developm en t: Cluster based deve lopment that has deve loped in selected areas
around horticulture export ventures, particularly those supported by greenhouse technology,
will be strengthened. Measures will be continuously taken to add ress the three maj or
problems of the sector: marketing problem, logistica l constraints, a nd transport limitations.
These problems will be addressed in co llaborat ion with actors in the sector. New land with
basic infrastructure will be identified and held in a land bank for new development clusters.
Recognising, the expansion and increasing viability of farms in the vicinity of Addis Ababa,
arrangement s will be made to encourage similar cluster format ion and economic integration
around other major cities. In orde r to minimize initial investment cost, favourable conditions
will be put in place to produce green house facilities, irrigation pipes, etc. Efforts will be
made to increase the participat ion of Ethiop ian investors in hort iculture develop ment and
integrate them with farmers engaged in horticulture production in d ifferent areas. Actions will
be taken, where necessary to encourage livestock breeders a nd seed supplie rs in the country,
increase the number of horticulture investors, input suppliers a nd service providers within the
sub-sector, and promote and encourage the aims of these activities.
In the five year plan period, smallholder far mers will be encouraged to participate in an out-
growers scheme for production of exportab le vegetables, fruits, spices a nd herbs. The scheme
will adopt a rigorous monitoring and eva luation system that includes pre- and post production
benchmarks and standards, and include human resources development that provides support
from experts with practical skills and knowledge.
Large sca le fa r ming deve lopment : Large scale farming will be undertaken by private
investors in lowland areas where abu ndant extensive land ex ists will be expanded and give n
due attention, in the next five years. The necessary arrangements will be made to increase
private investors' participation by identifying a reas that are not inhabited but are suitable for
agriculture. Exploratory studies will be conducted to determine which forms of agricultural
production enterprises are most suitable for each a rea identified. These areas and the data
concerning them will be registered and organised in a land bank. An ef Tect ive land
administration system and implementation agency that e nsure transparent and accountable
land leasing a nd land use will be established. The government will encourage investment in
Every effort will be made to ensure private investors receive etlicie nt services from
government. While supporting private investment in large scale farms, government' s focus is
to e nsure that the products from these farms are primar ily for export or raw materials for
do mestic industries. For these reasons, emphasis will be put on cotton , date palm, tea, rubber
tree a nd similar types of crops. Double cropping systems of production will be encouraged.
d) Agricultural Marketing:
A shin in the att itudes and production processes of farmers and pastoralists from subsistence
to more market driven production has started to occur. This involves a change in attitude and
life style a nd a new focus on internationa l markets. Farmers and pastoral ists will be helped to
shin gradually from the product ion of low to the product ion of high value products and to
ensure that their incomes increase as a result. The transformation of the agricu ltural sector,
especially in terms of rap id agric ultural diversificat ion and comme rcialization, must be
complimented by an effective marketing system.
Modern agricultural marketing systems, such as the marketing practiced through Eth iopia
Commodity Exchange, will be strengthened. Initiatives that contribute to improving the
agricultural marketing system include identifying and expanding best practices of model
farmers, improving the quality of agric ultural products, strengthening monitoring a nd support
systems at a ll levels, improving market infrastructure and the agricultural marketing
information syste m, building the capacity of the market actors, and strengthening the capacity
and participation of cooperatives. During the GTP period the primary markets wi ll be
effectively linked to the Ethiopian Commodity Exchange system so as to create an integrated
and efficient marketing system.
To improve the agricultural marketing system a number of initiatives will be taken in GTP
period. The experiences of best small scale farmers will be clea rly identified and be scaled up
from kebele to federal leve l. Quality control of agricultural products will be put in place and
the marketing system estab lished. A strong mon itoring and support system from regional to
kebele level will be put in place a nd will se rve to ensure the integrat ion and perfor mance of
the market. Prima ry markets will be estab lished and strengthe ned. Market infrastructure will
be provided and market promotion stre ngthened so as to iden tify and penetrate new markets
and increase the sha re in existing markets. An agricultural marketing information system will
be estab lished so that infor mation can be delivered to users on a timely basis. The capacity of
the market actors will be enhanced, agricultural product qual ity ensured and proper sta ndards
set. Coo peratives will be promoted to play a significa nt role in the marketing syste m. The
focus will in particular be on identifying the problems of ex isting coope ratives and thereby
undertak ing measures that enhance their capacities.
The government will work closely with private actors in order to address market problems of
particularly certain items. In this regard the government will work closely with a ll
stakeholders to rectify the market, logistics and transport problems obse rved in horticulture,
live animal, meat and other crucial export items.
e) Research-extension-farm ers linkage:
Initiat ives to ide ntify, test, produ ce and dissem inate new technologies will be introduced.
These initiat ives include resea rch o n crop, livestock, natura l resources and agr icultural
mec hanization. Supply of new technologies will incl ude the impo rtat ion and ada ptatio n of
ex isting proven technologies and the ir local productio n. Another initiative will involve
application of modern research tec hniques a imed at shortening the time it takes to supply
technology for irrigation .
t) Buil din g th e capac ity of impl em enters
The sca ling up strategy triggered to ac hieve a meanin gful increase in smallholde r production
and productivity is discussed ea rlier in this chapter. The init iatives involve imp rovement of
so il fertility, implementing improved agricultural practices, technology multiplication, and
improved supply and distr ibution. To successfully implement these initiatives, bu ilding the
capacity of a ll the imple me ntation age ncies and individ uals is a dec isive issue. Support to the
agricultu ra l secto r will be strengthened in terms of the effective ness of huma n resources.
o perations a nd o rganizatio ns,at all levels. The development agents who provide spec ialized
services direct ly to fa rmers will be helped to increase the ir skills a nd mot ivatio n. C lea r
procedures for how they ca n access suita ble short a nd long term training will be put in place.
To provide fo r those areas where development agents are not adequate in number, the
Agricultural Technical and Vocationa l Educat ion and Tra ining college s will tra in additional
development age nts in the areas of ag riculture develo pment, an imal hea lth and cooperat ives.
In order to increase farmers' motivat ion, thei r tec hnologica l skills and ability to de ploy
improved agricultura l practice s will be improved. This initiat ive will use the o utstanding
practice s of model fann ers' via practica l training sessio ns a nd materials at farmers' t ra ining
ce nt res. A simple fanne rs' extension serv ice that enables transfer of model farmers'
ex periences, such as development groups, will be used as a preferred experience exchange
approac h. T he farmers training ce ntres as one of the agencies that will be responsible for
enhancing farmers' skills will be ex panded and those which are fully o perationa l strengthened
by increased support and equi pment provision as we ll as by setting up organ ized
dem onstration farms.
5 . 2. I NDUSTR Y
To e nsure faster and sustained development of the industria l sector, favourable conditions will
be created for ind ustry to play a key role in the economy. To this end, particular emphasis will
be given to two ma in sub-sectors. First the ma in strategic direction will be to suppo rt
expansion a nd development of micro and small enterprises. In addition. efforts will be made
to further develop medium and large sca le industr ies.
5.2. 1Strategic Directions
Agricultural Development Led Industrialization is the fundamental building block of
industr ial development in Ethiopia. To support th is key po licy, the private secto r will be
promoted so that it ca n play a more significa nt role in susta ining eco nomic growth. The
government' s industria l development st rategy states that ensuring accelerated and susta ined
industrial development is a fundamental policy direction . To implement th is policy, the
environment conducive for the emergence of new MSEs and support that increa se
the productivity of the existing MSEs wi ll be put in place. T his strategic direction
will enab le the development of broad-based and competent private secto r. The
expansion of MSEs in urban areas will also resu lt in large sca le job c reation and
thereby poverty reduction. The development of MSEs is a lso c ritica l for
stre ngthening sustaina ble rural-urban and urban-to-urba n functional and economic
linkages. The expansion of MSEs is crucial too for sustaining the rapid growt h being
witnessed in the agricultural sector.
b) Medium and large industries development: particu lar emphasis will be given for the
following medium and large scale sub-industries:
I . Textile and garment industry,
2. Leather and leather products industry,
3. Sugar and sugar related industries,
4. Ce ment industry,
5. Metal and engineering industry,
6. Chemica l industry,
7. Pharmaceut ical industry, and the
8. Agro-processing industry,
c) Industria l zones development: based on their feasibility ind ustria l zones that are
suitable for establishing medium and large scale ma nufacturing ind ustries will be
deve loped.
d) Public enterprises management and privatization: The capacity and management of
public ente rprises as we ll as privatization will be enhanced.
5.2.2 Objec tives
The development ob jective s fo r the industria l secto r are to
I . Create a broad-based spring-board for competitive dome stic industria l and private
sector development;
2. Create employment opportunities and thereby reduce poverty;
3. Support susta inable deve lopme nt of agriculture;
4. Increase industria l production and productivity by fully utilizing the existing capacity
of industries;
5. Promote medium and large industries that use domestic raw materials labour;
6. Create a strong foundation for the sector to sta rt playing a leading position in the
national eco nomy, employment gene ration, and foreign exchange earnings and
savings;
7. Strengthe n the sector 's capacity to produce locally equipments, machinery and spare
parts.
enterprises. Major ta rgets to achieve this objective and implement the policy direction are
presented in the following table.
T a ble 20. GTP T a rge ts for Micro and Small- Scale E nte r pr ises
Description of Ta rgets
1. Provide comprehensive support to micro and small scale enterprises so that they create employment
opportunities for abo ut three min people. Achievement of this target will enhance citizens' income.
contribute to a rise in domestic sav ing. and enhance the benefits of women and youth from the sector so as
to reduce unemploymcnt and poverty.
2. Provide Training of Trainers lilr 10.000 professionals in the sub-sector.
3. Provide capacit y building and basic skills training for about 3 mIn operators in the areas of
entrcprcncurships. technical and vocational skills .
4. Prepare and develop 15.000 ha of land lor working premises. and const ruct shade and build ings for MSEs.
5. Provide micro cred it and marketing information and work with producers to identify bottlenecks and
provide suppo rt where solutions arc ldcnrlfled.
b. Medium and La rge Sca leManu facturin g Indu stries
Brief descriptions of the objec tives for each designated industry under medium and large scale
manufactur ing industries are presented below. The target s during the plan period are
presented in summary for all designated medium and large scale manu facturing industries in
the table below.
Textil e and Garment Industry : The object ives for the textile and gar ment industry include
maximising utilization of existing production ca pacity. increased expo rt earnings. and
increased investment in the sub-sector. This will be ac hieved main ly through the provision of
support and by creating an e nvironment conducive to the industry's development.
Leath er a nd Le ather Products Indu stry : The objectives for the leathe r industry are to
expand production of locally produced products, in terms of both variety and qua lity, as
substitutes for imported leather products. increase fore ign exchange earnings. a nd strengthen
the technological capa bility of the industry. It is ex pected that these o bjec tives will be met
mainly by the establishment of new investment proj ects. expa nsion of existing operation s and
by improving the production and productivity of the industry.
Suga r and Relat ed Products Indu stry : A key ob ject ive for the sugar and related products
industry are to produce suffi cient sugar production to meet the loca l demand of sugar
product ion .Sugar and re lated products production will be expanded so as to support the
supply of energy/power and other key economic activities. The contribution of the suga r
industry to overall economic development will be increased as will job opportunities. For the
effective implementation of the ind ustry' s objec tives. human resource de velopment.
instit utional ca pacity building and re levant research and technological ca pac ity will be
e nha nced.
Cement Indu str y: The objectives of the cement industry a re to fully satisfy local de mand for
Table 21. GTP Targets for Medium and Lar ge Scale Manufacturin g Industrie s
Descrilltion of 'Ie xnfe and Ga r ment Indust ry, Tar get s
1. Raise the gross value of prod uction oft he textileand garment industry to usn 2.5 bin by the end of the
plan period .
2. Scale up the prod uction capacity of the rcxtile and garment industries h)' an additiona l 90% during the plan
period.
3. Raise foreign exc hange earnings from the textile and gurmcm industry. by the end of 20 1 ~ ! 1 5 to US!) 1.0
bin.
4. Create new employment opport unities that contribute to the reduction of unemployment. for a bout~ O .O OO
citize ns d uring the plan period.
Des{"rip.tion of L eather Indu st ry'Targets
R. Raise annual production of sugar and ethanol to 2.25 min tons. and 3 0 ~. OO () m3. respectively . and also
generate 607 MW of electric power. by the end of the plan period .
9. De velop a n add itional 200.000 has of land planted to sugar cane.
10. Generate USl>66 1.7 min foreign exc hange earnings from the export of 1.246.000 tons of sugar. or which
623.()()Otons is rJW and 623.000 tons is white sugar.
11 . Raise sugar cane prod uctivity to 155 tons per ha. by the end ofthe plan period.
12. Create additional employment uppon unltics for morc than 200.000 citizens.
Descrilltion of Cement Indu stry' Tar get s
13. Raise the country' s total ceme nt production capacity to 27 min tons (a day. month. annum) by thc end of
the plan period.
14. Achieve an annual cement per capita consumption or 300 kgs.
Descrilltion o f :\Ietal and En gineerin g Indu st ~ · Tar gets
15. Increase the gross value of domestic products of the industry to ETB 10 1.4 hln.
16. Raise the capac ity'ut ilizatio noft he industry to 95%.
17. Improve annual per capita metal consumption to 34.72 kgs
l R. By improving the product io n and techno logical ca pacity of the industry increase local prod uction capacity
of man ufactured parts and components for selected major manufacturin g industries.. namely leather. textile.
sugar. cement. agro-processlng, construction a nd ve hiclebody industries 1090%. 35%. 85%. 85%. 75%.
95%. 85%. respectively.
Chemical Industrie s
Brief descriptions of the objectives for eac h designated industry under chemica l industries are
presented below. The targets during the plan period are presented in summary for a ll
Soap and Detergent Indu stry : The ob jective of this industry is to create suf fi c ient local
capac ity to wholly substitute imported soap and detergent products with local products.
Paper and Paper Product s Industries: The objectives for the pulp and paper industry are to
c reate the capacity to substitute imported products with local products sector.
Plastic and Related Products Industries: The obj ective of the plastic and related products
industries is to substitute imported plastic products with locally produced products.
Rubb er Tree Industr y: T he obj ective of the rubber tree industry is to create the capacity to
manufacture natural rubber locally so as to substitute wholly for imports of the product.
Table 22. GTP Targets for Chemical Industries
Des{"ription of T a rget s
I. One Fertilize r Indu str y ("o mlliu will be established to partially fulfillocal demand.
2. C a ust ic Sod aand Soda Ash Indu strie s Establi sh a caustic soda man ufacturi ng plant that can produce
50.0 00 IOns of caust ic sod a per an num10 meet fully the produce s local de mand
3. C a ust ic So d aand Soda Ash Indu stri es Establish a sod a ash producing plant that ca n produce 35.000 Ions
o f soda ash per an num to meet fully the pro duce s loc al dcm and.
4 . Soa p and Detergent Indu str y Establish new factories that can produce 166.000 tons of soap and detergen t
prod ucts.
5. Soa p a nd Detergent Indu str y By the end o f 20 14/ 15. raise the capaci ty utilization o f soa p and detergent
factories to 90%.
6. Pap er a nd Pap er Pr odu ct s Indu stri es Estab lish the capaci ty' to produce 4 10.000 tons of paper a nd
3 15.000 tons of pulp throug h new invest ment. by thc e nd ofthc p lan period.
7. Pap er and Peper Pr odu ct s Indu stri es By the cnd o f 20 14/15. raise the capacity utilization of the existing
paper produc ing factories to 98%.
R. Pla sti cand Relat ed Pr odu ct s fa ct ori es. One plast ic factor y will established to partia lly fulfi l the loc al
de mand and s ubstitute for imported plastic input s and products .
9 . Rubb er Tree Indu stry The target is to; Establish cultivation of 3.000 has o f commercial rubber trees. and
produc e and supply 10.000 tons of natu ral rubbe r latex per an num with the invol vement and ownership of
Rubber Tree Developm en t Nati onal Nucleu s Projec t. fa rmers. and investor s.
10. Rubb er Tree I ndu stry Estab lish a processing plant producing 6.700 tons o f tech nica lly spec ified rubber
(TS R) an nua lly.
Pharmaceuticals Indu stry
The objectives of the pharmace utical industry a re to create the capacity to produce essential
pharmaceutical products that substitute for imported products a nd also supply export markets.
Th is will be achieved by improving the utilisation o f existing capacity and the establishment
o f new industries.
Table 23. GT P Targets for Pharmac euticals Industry
J)es{"rinti on of T a rget s
Agro Processing Industry
The objec tives of the agro-processing industry are to increase the productivity and capacity
utilization of the existing industries. support and promote the establishment of new industries
so as to increase the sub-sector's production both to local and foreign markets.
Table 24. GTP Targ ets for Agro Processing Industry
Desc ription of T a rgets
I . To raise the productivity of the beverage ind ustry by increasing its capacity utilization to 90%
2. To generate usn 300 min from the expo rtof agro-processcd products.
c. Industrial Zones Developm ent
The main purpose of develop ing industrial zones is to attract more investment and investors
by providing la nd with essentia l infrastructural services and creating an attractive
environme nt for investors. The initiative contributes to the overall economic development and
poverty eradicat ion by creating emp loyment opportunities. enab ling increased exports and
foreign currency earnings. and providing local goods that substitute for imported goods.
Accordingly the GTP target is to establish at least 4 feasible industrial zones by implementing
the following strategies.
I. Solve the problems devel opers e ncounter in acquiring basic infrastructure services such
as land. P O\\i'Cr. telecorn. road. customs. etc. in a timely manner.
2. Expand and strengthen training centres and institutions so that developers have access
to a plentiful supply of skilled and competent human resources.
3. Assist develope rs and attract foreign investment to the industrial zones.
4. Cover 30% of the cost of providing basic infrastructure services such as water.
telephone. power. roads. etc.
d. Public E nter pr ises Management a nd Privatization
A main obj ective of public enterprises manageme nt and privatization is to improve the
operational performance of public enterprises and thereby increasing their competitiveness
and effectiveness. In addition. the reform with regard to public enterprises management and
privatization aims to increase export earnings. A high level of corporate leadership and
management will be ensured. Feasible projects in areas the private sector is unable to finance
will be established so as to rectify market failure and there by foster econom ic development.
Table 25. GTP Targets for Public Enterprises Mana gement and Privatization
Descripti on of Ta rgets
I . To raise the value added amount from public enterprises 10 usn 5.32 bin and an overall growth rate of
19%.
2. For all public enterprises to achieve 100'%capacity utili .....ation.
deve lopment will tak e into co nsiderat ion the d iffere nt stages o f dev elopmen t of the
e nterpr ise s.Acco rdi ng ly,the suppo rt pro vided w ill vary depend ing o n whet her th e enter pri ses
are at sta rt ing, growth or ma turi ty stages of development. Yet the strategy wi ll pa rt icul a r ly
e ncourage enterpri se s th at d isp lay entrepre neu rsh ip, an d that are beco m ing mo re and mo re
com petitive in t he market. T he seco nd implem enting strategy concerns prom oti on of sav ings.
Train ing and comp leme ntary s uppo rt w ill be prov ided to encou rage savings a nd increase the
capital ofMS E em ployer s and em ployee s. The micro cred it s upport sys tem ce nter s aro und the
use of o wn init ial cap ita l a nd sa vings to sta rt up a bu siness. To supplement this however , an
accountab le, efficient an d tran sp arent mech an ism w ill be put in place to enab le the prov is ion
o f c redit to MSE s. In add itio n, mechan ism s wil l be put in place to he lp MSE s wit h access to
produ ctio n and ma rket ing prem ise s to ea se their cap ita l problem s.
Co nt inuo us tra in ingand aware ness c rea t ion initiat ive s w ill be del ivered to MSE o wners to
nurture the ir entre pre neursh ip. T here w ill be further ex pan sion of th e industria l exte nsion
service in urban areas to improve the pro duct ivity and co mpetitiveness o f MSE s. The TVETs
will serve as s kill and technology centers that s uppo rt MSE s th rough technica l sk ill and
e ntrepreneurship tra ining, tec hnology tran sfe r an d imp rovement s, and business co uns elling .
The TVET w il l s uppo rt MSE s by en su ring a good s upp ly o f skil led labo ur th at will be
integra ted w ith the industr ia l deve lopm ent exte ns ion sys tem . Govern me nt 's develo pmen t
pro gram s wil l be desig ned in a support ive man ne r, to develop and imp rove capaci ty o f MS Es.
Government will put in p lace s upport ive mark et mec hanism s s uch as ex port ince nt ives,
link ing MSE s to med ium and large sca le manu facturi ng indust ries and access to agricultura l
o utputs fo r MS E produ ct ion input s.
Medi u m and la r ge sca le m anu fa ctu r in g ind ustrie s : Here too , o ne of the st rateg ies is to
strengthen the poli cy and regulato ry env iro nme nt for pri vate sector dev e lopme nt. By
increasing tran sparency and eli m inating re nt seeking att itude s, Ethiopia n e ntrepreneu rs wil l be
enco uraged to increase their inve stmen ts in, and thus the produ ct ivity o f, med ium and large
sca le ma nufacturing indu st rie s. An env ironment condu cive to inc rea sing the con tri bution of
th e ma nufacturi ng secto r to the ec o nomy will be c reated by bui lding the capacity of Et hiopia n
invest ors to co lla borate wit h fore ign inve stor s. T o increase the poo l of adequate ly train ed
hu man resources, foc us will be g iven in higher education a nd in TV ET to supply o f th e
hu man resources w ith the knowle dge and sk ills requi red by man ufacturi ng industries. The
res ea rc h inst itute s w illbe further strengthe ned to s upport the productivity o f ma nufactu ring
industr ie s. Fore ign technica l support will be reorie nted towards st rengt hening lead ersh ip an d
to enha nce tec hnology transfe r and build capacity o f pro fess iona ls.
Wit h regar d to land s upply and services , an efficient and effect ive sys tem w ill be put in place
to pro vide serviced land at a n affordab le price fo r inve stm en t in ma nufac t ur ing. Serviced
industr ial zo nes w ill be devel oped . Industries that produce for the export market and prod uce
goods that subst it ute for imports wi ll be espec ia lly enco uraged throug h provision o f bett er
access to cre dit an d other ince nt ive mec hanism s.
T he efficiency of th e privat izat ion proce ss wi ll be furt he r stre ngthened so as to t ran sfer th ose
sta te ow ned e nte rprise s ide nt ified to the private investo rs. St rategies wi ll be put in place to
5.3. TRADE
5.3. t Strategic Directions
The trade sector plays a sign ificant role in susta ined econ omic grow th in market-o riented
eco nomic system. In t he co ming five years, ra ising the etlicie ncy and co mpetitiveness o f the
sector. strengt hening dom estic and fore ign inve stment a nd trade, eradic ati ng rent seeking
behaviours. establishin g a favourable env ironment for produc tive investors. promoting a
com petitive and efficie nt dome stic trade and d istribution system, ensur ing co nsumers' rights.
strengthening co nsume r' s coo peratives. and strengthening the transpar ency, fa irne ss and
accountability o f the legal fram ewor k for trade activities will be the main st rategic d irect ion s
of the sector.
5.3.2 Objectives
The main o bj ectives, for the sector a re to e nsure mode rn and fair trad ing practice s, to improve
the transpar ency and fairness o f the instit ut ional and orga nisat iona l fram ewo rk for trade
o perat ions. Emphasis w ill a lso be g iven to intensifyi ng intern at ional trade and improv ing
dome st ic marketing sys tems by strengthe ning con sumers' co operatives and supporting access
to viable market o ppo rtunities.
5.3.3 Major Targets
Introduce fundamental change to improve trade registration and licensing sen/ices : At
all level s of trade adm inistrat ion, a uniform and harmoni zed system of trade registrati on and
licensing will be esta blished to inte rnatio nal standards . The trade registration and licen sing
system w ill ensure fair and transparent tran saction s, easy access to services and focu s o n the
professional e ffic iency and co mpetency o f services provided to the business co mm unity.
Support consumers' right s and security by improving the regulatory framework for
trade : To provide an effect ive and enabling regu latory framewo rk for trade, appro priate
cont ro ls will be put in place that imp rove the role that the business community plays in
ensuring fa ir co mpetition and identify so lutions to preve nt ha rmful pract ices.
Increase the benefits accruing to Ethiopia from international systems governing trade
relations and negotiations : The a im is to bette r integrate Ethio pia into the m ultilateral
trad ing system so as to broaden the benefit s from market opp ortu nitie s and increase
investment flows.
Strengthen the marketing system for domestic product s : The ta rget a ims to increase
product ion and ex port di v ersifi cat ion; esta blish an integrated dom estic market ing system and
strengthen expo rt development through creation o f an integrated ma rketing system.
St r engt hen the capacity of cooperatives : The target w ill ai m to st rengthen the institution al
framework a nd imp rove the human resou rce ca pac ities o f coo perat ive s.
5.3.4 Implementation Strategies
Introducing fundamenlal change in trade regi stration and licensing services: By rev ising
Ensu re co nsu mers' ri ght and sec ur ity by e nha ncing trad e re gulations : Ensuring the
existence of fa ir trade that affirms the consume r's right and benefit will contributes to
accelerate d eco nomic grov..t h a nd social develo pment. With this focus, and on the basis of
free market principles, a con sistent system will be estab lished to ensure fa ir and efficient trade
registration and licensing. a nd hea lthy and fair competition among the business community.
Where harmful or illegal business practices that damage consumers' health. or reduce the ir
safety. governmen t will con tinue to act in consu mers' interests. To this end, consume rs'
associatio ns will be organized and supported logistica lly, with finance. technical support and
human resource development; the overa ll aim is to ensure consume rs pay a fair price. These
strategies will help to ensure that consumer association s play a positive and beneficial role in
regulating prices. On the other hand. the legal and regulatory framework to minimize conflict
betwee n the business community and co nsume rs will be established and implemented.
Cond itions th at would facilitate to en sure benefits fr om trade relations a nd negoti alions:
A key implementation strategy is to integrate the country into the multilatera l trading system.
Th is will be achie ved by successfully comp leting the World Trade Organ isation accession
process and strengthening regio nal trade integration with the inter-Governmental Authority
on Development. Sana'a Forum. The Com mon Market for Eastern and Southern Africa
(COMESA) and the COMESA ·East Africa n Community-Southern African Development
Community Tri partite. The purpose of these act ions is to transform the trade negotiation
process to a highe r level of effect iveness. A further task is to. conclude the Economic
Pa rtnership Agreement with European Union. Fina lly. bilatera l trade relations and
negotiations will be improved with a ll part ies where mutua l adva ntages are identified.
Sir eng ihening dome slic p rod ucl markelin g system: Implementation act ivities will focus on
integrating domestic product marketing systems, increasing production and exchange
coverage and strengthening export deve lopment. The domestic product marketing system will
be strengthened with the object ives of ensuring fair, transpare nt. participato ry and cost
effecti ve transactions as well as fair price s. Support will be given to promote exports. bu ild
capacity. deve lop better use of information technology and develop access to finance and
log istics. These activities will be planned and carried out in co llaboration with a ll
stakeholders.
Sir eng ihening and suppor ling coo pe ra tives ' capaci ty: The problems of existing
cooperat ives, and of establi shing new cooperatives, will be thorough ly studied and
conc lusions implemented. Coo peratives will be supported with capacity bu ilding, information
technology development, acce ss to finance and logistics developments and strengthe ning of
organisational and man power ca pacities.
5.4. M INING
5..... t Stra tegic Direcli ons
For the mining sector, the governme nt' s main focus is to create a favourable envi ronment for
private investors for exploration and development of mineral reso urces. Among othe r
5....2 Objec tives
Mineral exploitation holds enormous importance for agriculture. urban deve lopment.
industr ial development. construction. e nergy and othe r economic sectors. T he core o b jec tives
fo r the sector in the plan period include estab lishing accurate estimates of and utilis ing the
reserves of minera ls that co ntribute to increased agricultural production through improving
so il productivity. An additional area of focus is land ex ploration. identifi cation and utilizat ion
to determine water quality a nd quantity for domestic consumption and irrigati on. Exploration
to ident ify minerals whose exp loitat ion wil l substitute for imported minera ls will be carried
o ut. For co nstruction and ind ustria l sector inputs. exploration fo r and exploitation of go ld.
platin um. ta ntalum and high value gemstones and other minerals will be initiated. These
actio ns will a lso help increa se forei gn curre ncy earnin gs. Exploratio n and exploitatio n of
c lean and renewa ble geothe rma l reso urces will take place. Substitution of mineral imports by
increasing the volume and types of mine rals produced by large and sma ll sca le licensed
o perators is a key o bjective. Artisana l miners will be promoted. so as to increase production
significantly. by improving the mining methods and facilitatin g access to mineral markets.
Speci fic o bj ectives fo r geo-scie nce data a nd minera l exploration are to improve the gee -
science data coverage o f the co untry. provide geo-scie nce data to international sta ndards and
that meets the needs of investors.
5....3 M ajor Ta rge ts
The mining sector targets for the plan period are presented in the following table.
Ta ble 26. GTP Targe ts for the M ining Secto r
Descrtptl on of Ta rgets 2009110 I 20 l·fIlS
I. Increa se cove rage (of the cou ntry] o f geologica l related
marmine a nd studies as follows
aj Geologica l mapping coverage at a sca le of 1250.000 (%) 51 100
b) Gravity studies coverage at 1500 .000 scale (% ) 8( ) 100
cj Ge och emi stry& mi ner al potential map prepa ration & ano malous
2.7 4
area s coverage at a scale of 1100.000 (%)
d) Ai r born geop hysics data coverage (%) 30 95
ej Gee-hazard studies coverage. at a scale of 1250.000 (%) 9.6 27. 1
f) Hydro- geologica l map ping cove rage. at a scale of 1250.000 (% ) 42 .0 83.7
gj Deta iled hyd ro-geol ogical stud ies (km 1) 3AOO 30AOO
2. Increa se evaluated and deli nea ted areas o f po tent ial industr ial minera ls
4' 77ex plorat ion. at a sca le of 150.000 (%)
3. Cond uct metall ic mine rals exp loratio n. eva luate po tent ial at a scale o f
40 63
12000- 15000. a nd m ise del ine ated potent ial areas (%)
4. Det a il coa l/oi l shale ex plorati o n and po tential evaluat ion in ce ntra l
12 20
Ethiopia. and increase delin eated potent ial areas (% )
Description ofTa rgcts 2009 /10 2014 /15
9 . Con tinue explorat io n o f 40 M W geoth erma l e nergy sourc e for powe r
12. 5 100
supp ly in Al uro Langano (%)
10. Incr ease co unt ry-w ide core dr illing ( 01) 7.00 n 16.000
I I. Increase wate r we ll drilling ( 01) 60(1 7.s00
12 . Incr eas e geo thermal dr illing ( 01) Io.ooo 20.000
13. A. benefic iat ion{crushin g and separat ing ore Into va luable substa nces or waste by a vancty of tec hniq ues }
test labo rator y wi ll be es ta blis hedbetwee n 20 10/ 1 1 -20 13/ 14.and a fte rtria l tests lo r 5 selected ind ustrial
mi nera ls. a detailed bcncflcla tlcn test st udy wi ll be co nd ucted
14 . Based on geosc iences Information collected. a 40 promoti ona l doc ume nts w ill be produced to farnltlarlsc
invcs to rswit h pot en tial sites for miner al exp loitation in the cou ntry, as a resu lt it will increa se from 4 in
2009! 1O ti l8 in 20 14115
15. Ac hieve 1()O% ISO! 170 25 acc red itat ion for th e Ge osciences Labo ratory dur ing the plan period
The targets to be achieved by the end of the plan period for minera l and petro leum investment
expansion. artisana l mining and marketing promotion. geosc iences and energy sector research
and development are presented in the following three tables.
Tab le 27. GTP Targ ets for Mineral and Petroleum Investment Expa nsion
II . Rcullsc cx po ns u t 20 m in lure s01 minera l wa ter .
12. Realise ex po rts of I mln metric Ions o f p otash .
13. Realise foreign curre ncy ea rn ings of USIJ 1.36 bln fro m m inerals and reso urces suc h as base meta ls and
mineral water.
Description of Tar get s 200 9110 2014115
I. Increase the vo lume o f mineral investme nt (mi n ETB ) 12.7 20
2 . Increase re venue from roya ltie s and other licen sing ( mln ETB) 69 150
3. Increase annual reve nue from mi ning ta x (ml n ETB) 230 250
•• Increase foreig n c urre ncy ea rni ngs from rmncratsrm!n USlJ j 108 277.3
5. Increase the pro duction o f go ld {Kgs ] 3.907 8.700
6. Increase the prod uction o f tant alu m (to ns ) 202 300
7. Increase ex ports o f marble (m
J
) 99.34 140
8. Increase inve stm ent in the petro le um sector ( min US IJ) 238 S38.7
9 . Increase total number lice nse s issued to petr ole um cxploltetion sector 22 29
10. Increase nu mber of lntcmatlon al e xtract ive indus try tr an spa rency
10 3 10
initiative s mem ber co mpan ies
. .
14. Make ready the Calub and Il iiaia gas fields for develop ment.
15. Enab le 300 .000 km2 orland to be categor ised as petro leu m provinces b) obta ining geo log ica l and
geo physical data fro m the exis ting intern ation al co mpa nies invo lved in exp lora tion.
Table 28. GTP Targ ets for Artisanal Mining and Marketing Promotion
Description of Target s 2009 /10 2014/15
I. Increase go ld purc hased by the National Ba nkor Ethiop ia ( Kgs] 2.X66 5.250
Descrir.tion of Targe ~t ~' 77"----:-:--:---:-:--:--:--:::-:------:-:---:--:--- ..
2 . Establish a nation al inventory and develo pment database for sclc ntiflc instruments and la bor atories in
geosc iences and e nergy.
3 . Develo p integr ated gco-scic ntiflc ap plications a nd initiate a study ofappropr ialc re newable energy sources
forthe s usta inable deve lop ment o f Addis Ababa and its su rrounding areas.
4. Develo p integrated gee-scie ntific app licat ions and initiate a st udy of appropriate renewable energy sources
for the sust ainab le development of Dire Dawa
5. Build increased capacity in scicnti tic instrume nts researc h and laboratory facilities that support the sector
where they arc needed but not available.
s...... Implementation Strategies
Enhancing of Ceo -Science (lata Cove rage and Quality : In this rega rd. the ptan is to
improve the cove rage of geo-science data required for development of minerals essentia l fo r
agriculture. co nstruction. ene rgy. manu facturing and develop ment of precious meta ls. In orde r
to improve the qua lity of data investments will be carried out in the orga nizationa l.
tec hnological capability. standardization and human resource development.
Mineral and Petroleum Investment Expansion : Specific implementation strategies for the
expa nsion o f m inera l a nd petro leum investment include encouraging private investment in
development of the sector. This will be achieved by improving the ex isting mining laws to
make them more attractive to potentia l inve stors. study ing nationa l and internationa l minerals
markets and providin g adv ice to private investors where higher market demand is identified.
Improvements in the cove rage and qua lity of data for mineral and petrole um devel opment are
expected to enhance investment in the sector. More importantly. investments in mining and
petro leum exploration and deve lop ment will be guided by a comprehensive regulatory and
policy framework that ensure transparency and acco untability.
Unde r ta ke ArtisanaJ Mining and Marketing Promotion : During the PASDEP five year
period. the Ministry of Mines in collaboratio n with stakeholde rs. tried to promote arti sanal
mining and regulate illegal miners a nd smugglers by introducing new proclamations and
d irectives covering exploitation of precio us minera ls. No nethe less. there are still a few miners
and smugglers involved in illegal min ing and export of precious minerals. Th e ir activities
have serio us negative socia l. economical. e nviro nmenta l and political impacts. particularly in
the areas where they operate. The gove rnment is strongly committed to estab lishing a work ing
environment conducive fo r art isanal mining and marketing promotion. As part of this
commitment. a new proclamation No. 65 11200 1. which aims to reduce illegal mining. is
c urrently being implemented. To achieve this. a nd to promote mineral resource development
o vera ll. the government will. in co llaboration with all sta keholders. use the exper ience it ga ins
during implementation. and follow up on its regulatory and promotional st rateg ies for the
sector. Skill development. technical support and marketing supports will be acco rded to
art isana l miners. Women are encou raged a nd spec ia lly supported to participate and
accord ingly benefit from the sector.
Unde r ta ke Geosciences and Energy Sector Research and Development: Implementing
5.5 INFRA STRUCT URE DEV ELOPM ENT
Provision of a ffo rdable physica l a nd econo mic infrastructure. such as transportation,
communicatio n and energy makes a crucia l contribution to econom ic growth, em ployment
c reation. socia l we lfare and the ex pansion of the ind ustrial secto r. In the years prio r to the
GTP, a massive cap ita l investment was made to expand i nfrastructure services. However,
significant cha llenges have hindered faste r pace of infrastructu re development. In add ition to
the high investmen t requ ired. the foreign exchange needs have co nstra ined the provision of
infrastructure to the extent desired. Inadeq uate dome st ic human and orga nizational capac ity
for infrastructure deve lopment has led to a dependency on fore ign capac ity, wh ich has in turn
underm ined the pace and coverage of infrastructure delivery
In the GTP period. very large investments will be made to further expand infrastructure
services . to strengthen the fo undation for long-te rm sustained growt h and deve lopment. a nd in
doing so. the c hallenges encountered during the PASDEP implementation will be addre ssed
and resolved. To date financi ng for ca pital investment has come from Treasury and Officia l
Development Ass istance sources . To increase the financial resources ava ilable. emphasis will
be given to improving the leve l of dome st ic savings and foreign exchange savings through
promoting import substitution of imported materials and construction services with domestic
products and services. Nevertheless. it is en visaged that domestic resources will still not be
adeq uate to fully finance the infrastructure programs of the GT P. Import substitution of
materia ls and construction services will he lp. but is not ex pected to fully address the foreign
exchange constra ints. Thus. the mobi lization of exte rnal offic ia l deve lopment ass istance will
be impo rtant in this regard .
5. 5. 1 Roads
St rateg ic Directions
Expansion of the road networ k is critica l to the development of othe r key economic and soc ia l
sectors such as agricu lture. ind ustry. mining. tourism. educ ation and health . Planning of road
infrastructure must be integrated with the o bjectives. strategies and programs of these sectors.
The success of development strateg ies of sectors depends on the e fficiency of the transport
sector in ge nera l and of the road sub-sector in particular. For these reasons, due emphasis has
been given to the deve lopment of the road sector in the GT P. The gove rnment has recognized
the importance of road transport in deve lopment of the nationa l econom ic and socia l activities
and hence attaches a high prio rity to improving the road infrastructure. as is reflected in the
Road Sector Development Program which was launched in 1997.
Objectives
Object ives of the Road Sector Development Program are to expand the road network so as to
improve access to rural areas. improve the quantity and qua lity of the road netwo rk overa ll.
and develop the o rganisationa l ca pacity of the respon sible road agenc ies fo r effec tive
management of road networks. Based on these obje ctiv es. road sector pol icy and strateg ies in
kilometer of new link roads. hea vy maintenance of 4700 kilometer of asphalt and gravel roads
and routine ma intenance of 84649 kilometer of road network .
In universal rural access program also construction of 11 2 12 kilometer of new rural roads by
Regional Road Authori ties and construction of 7 1523 kilometer of woreda roads by woreda
road offices will be undertaken . The government has envisioned connecting more or less a ll
kebels to the nearby al l-weather roads as well as inte rweaving every major city by increa sing
investment in road infrastructure.
A summary of major road secto r targets for each year of the five-year period are presented in
the table below.
Ta ble 29. GTP Target s for the Roads Sub-Secto r by Budget Year
Descr-iption of Tar get s 2009/ 10 20 10/11 20 11/12 2012/13 2013 /14 2014/15
I. Federal and regional total road lcngt ht km ) 48.800 5 1.636 54.8 18 58.2 11 6 1.771 64-"",--
2. Length of Woreda s all-weather road ( km) 0 9.568 24.299 40.044 55.790 7 1.522
3. Kcbclcs connected to all-weather roads (%) 39 48 63 78 93 100
4. Average Time taken to reach nearest all-
3.7 3.0 2.3 1.9 1.6 1.4
weather road (hrs)
5. Area further than 5km from all-weather
64. 1 57.3 48.7 40 .9 34.3 29.0
roads (%)
6 . Area furt her than 2km from all-weather
83.7 80.0 75.0 70.0 65.2 6 1.0
roads (% )
7. Road den sity ( Km/l.OOOkm2) 44.5 55.6 71.9 89.3 106.9 123.7
8. Road den sity (Km/l .000 populatio n) 0.64 0.78 0.98 Ll 8 1.37 1.54
9. Roads in acceptable (Fa ir + Good)
81 81.3 83.0 84.6 85.9 86.7
Condit ion(%)
10. Number of Project operate d/carry (Jut by
58 61 64 67 70 73
dome stic co ntractors ('Yo )
II . Average vehicle Km oftra vel (mIn km ) 9.6 10. 1 10.6 11.1 I L7 12.3
Implem ent ati on St ra tegy
The implementation strategy focuses on restructuring of the implementing agency. ca pac ity
devel opment in the road sector. financ ing and safety measures. Accordi ngly the regu latory
and o perationa l arms of nationa l road management will be split into independent
organisations. In add ition the institutional framework and organisat iona l capac ity of the
regio na l road agenc ies and woreda road bureau s will be strengthened. by. amo ng other means.
human resource deve lopment . strengthening integrated road network plannin g. and improving
the effectiveness of road maintenance. Other implementation strateg ies incl ude actio ns to
increase revenues of the road fund office, build the ca pac ity of local co ntractors and
cons ulta nts. introd uce and expand usc of intermediate equipment tec hnology in road
constructio n, improve equipment ma intenan ce services. use alternative road project fac ilities.
5.5.2 Railwa y Tran sport
Stra tegic Dire ctions
Railway tran sport is a cos t effe ctive and t ime effi cie nt mean s o f carry ing bulk inputs and
produce . Gi ven the rap id eco no mic gro wth in t he co untry there fore co nst ruction of a national
rai lway net work has become an impo rtant task. To support th is strategic d irect ion, the
capacity of do mestic sma ll and medium metal man ufacturing and eng inee ring indu stries to
produce sleepers , locomo tives and ra il spare pa rts and input s fo r the railway network
infra structure co nstructio n, w i llbe promoted .
Takin g into acco unt the econ omi c advant ages of rai lway trans po rt, in the lon g term , it is
planned to expand the network so as to co nnect the co unt ry with neighbourin g co untries and
d iff erent port s. To reali ze t his long term strategic d irecti on , in the short term . gove rnment wi ll
mob ilise and bu ild local ca pac ity (to provide se rvices as we ll as hum an resou rces) to expand
t he railway net wo rk. while also develop ing partnerships w ith forei gn acto rs. Key cha llenges
in the ex pansion and de velopme nt of the ra ilway netwo rk r efer to the e nor mous in itia l
investment. the human and othe r reso urce capac ity and spec ialised expe rience in ra ilway
deve lopment requ ired . St rateg ies w ill therefore be devel ope d and impleme nted in o rde r to
mobilize dom estic and foreign finan c ial resou rces as we ll as build human and o rga nizationa l
capacity do mestica lly. Dur ing the plan per iod. due emphas is w ill a lso be g iven to t he efficient
a nd effecti ve administration o f t he network and rail services .
Obj ectives
Th e objec t ives for the sub-sector are to bu ild a natio nw ide railway infrastructure netw ork.
devel op. and co ntinuous ly impr ove loca l ca pacit ies of ci vil engi neering co nst ruction
compan ies and metal and electro-mechan ical indust ries, and max imise techn o log ica l tran sfer
useful to the s ub-sec to r. Integ rated w ithi n the se objec t ives w ill.in most cases, be st rateg ies to
ensure that developm ent o f rail way in fras truct ure is ope rationa lly susta ina ble.
Maj or target s
Th e ma in targets for the rail way sub-sector durin g the plan pe riod are presented in the
follow ing ta ble.
Table 30. GTP Target s for th e Railway T ra ns po r t Sub-Secto r
De scri~tion of Tar get s
I . Construction ofa tota l of 2.395 km o fn atio nal railway" network. out o fw hich a bout 1807.9 km will be
completed (Addis Ababa -Dlrcn awa-Dcwclc 656 km: Awas h- Woldiya - Mckclc 556.2 km: Wcldiy a-
Sc mcra-Gala fl256.4km and Addis Ahaha-Ejaj i-Jimma- Bedcle 339.3 km). whi le effort s will be e xerted to
const ruct the remaini ng 587. 1 km o f net work (Mojo- Konso- Wcyto] .
2 . Const ruction o f3-1 km o f light ra ilway netw ork along two corridors ( from east to west and nort h to south )
provid ing the ca pital c ity Addis Aba ba with a mass transit system. This initiative w ill lnvol vean- Su
companies working on des ig n and construction of net work and more t han 20 man ufac turing companies
w ill be created f or th e part icip ation of private sec tor in th e sub sec to r. A publ ic/private
part ner ship fra mework and system w ill be designed fo r the s ub-sec tor . Ado pt ionof different
ra il design, cons tructio n and manag eme nt meth ods is a furth er strategy , as is imple mentatio n
o f stu dy find ings o n rail way netwo rk co nstr uction, ser vice deli very and sec urity . The
go vernment wil l adopt approa che s and mechanism s that maxi m ise use of th e ab undant lab our
ava ilab le for the construct ion o f the railway network a nd will cre ate an enviro nme nt
conduci ve for the estab lishme nt o f local tra in ma intenance co mpan ies.
5.5.3 Energy
St rategic Ilirections
T he strateg ic d irectio ns du ring the GT P period are deve lopme nt of rene wa l en ergy,exp ansion
o f energy infrast ructure, a nd crea tio n o f an inst it utiona l capacity that ca n effec t ive ly and
efficie nt ly manage s uch energy so urces and infrast ructure. Durin g th e GT P period , the ga p
betwee n the demand for and supply o f elec tric ity w ill be m in imised . Per ca p ita co nsumption
o f elec tric ity o f househo lds is exp ected to increase d uring the GT P period. Moreover it is
p lanned to produ ce s uffic ient elec tr icity for export. T he e lectric pow er s upply cover age w ill
be increased throu gh t he on go ing rural e lectr ifi ca t ion access prog ram. Govern ment w ill
ens ure a cost effect ive, h igh q ualit y s upp ly of energy, as we ll as energy e ffic iency and
conse rvat ion. T he regulatory fra mework wi ll be effect ively enfo rced.
In order to prom ote and rea lize the co untry 's Gr een Develop men t Strategy, on go ing init iat ives
to ge nerate e lectricity from hyd ro power and ot her renew ab le energy so urces like bio fuel s,
so lar and w ind will rema in the strateg ic d irections during the GT P peri od . In add ition new
tec hnological innovat ion s w ill be ut ilized to ens ure that the energy sub-sector' s doe sn 't emi t
add itio nal ca rbo n-d iox ide.To prom ote and sustai n rural a lternat ive energy deve lo pment
ac tivities, effo rts w ill be made to enhance the capac ity and knowled ge in thi s regard o f
reg ion s, prod uce rs and consume rs. Th e d istr ibution o f wood sav ing materials and
technologi es throu gho ut the co unt ry wi ll be co nt inued.
Objectives
The maj or obj ect ives for the energy sub-sec to r ar e to meet th e demand fo r energy in the
co untry by pro vidi ng s uffi c ientand rel iab le po wer supp ly that meet s internatio na l sta ndards at
all t imes. Th is obj ect ive will be achi eved by acc elerat ing and comp leting th e const ruct ion o f
new hydrop owe r elec tric ge neratio n proj ects, and stre ngthe ning th eex isti ng transm ission lines
to provide improved access to ru ra l villages a ll ove r the co unt ry. An additiona l ob ject ive is to
ex po rtpower to the ne ighbo uring co unt ries. Mod ern iz ing the d istribut ion syste m wi ll also be
considered , so as to redu ce power losses to inte rnat ional be nchma rk levels. Developm ent o f
alterna tive e nergy fro m ren ewable so urces suc h as wind, so lar b ioma ss, etc w ill be integrat ed
with the co unt ry's Gr een Devel opm ent Strategy. During the plan period an o b jec t ive is set
also to transfo rm the nat ional ca pac ity in developin g and ma nagin g energy by rad ically
refor m ing th e nat iona l powe r co mpany such th at the elect ric power supply serv ices reach
Tab le 31. GTP Target s for th e E nergy Sub-Secto r
Description of Tar get s 2009110 201~ 1I5
I. Hydroelec tric power gene rating ca pac ity (M W) 2.000 10,000
2 . Total len gth of d istribution lines ( Km) 126.038 258.00 0
3. Total le ngth of re habilitated distribut ion lines (Km) . 50 8. 130
•• Red uce power wastage (%) 11.5 5.6
5. Number of consu me rs wit h access to e lectricity 2.000.000 4.000 .000
6. Coverage of elect rici ty service s (%) ., 75
7. Total undergro und power distr ibution system ( Kr n] 97 150
lm plem entln g strategies
The key implementation strategy is capacity building in energy develop ment and
manageme nt. Thus the national electr icity co mpany will go through radical reform suc h that
the nat ional institutiona l capac ity to gene rate power. construct the infrastructure and
efficiently and effectively manage the power and infrastructure shows fundamental
improvement. Other implementing strategies that will be e mployed to achieve the above
o bj ectives and targets for the energy sub-sector are strengthening organisat ional
implementation. capacity (the electric power compa ny go through a complete restructuring
process). increasing develo pment of elect ric power gene ratio n a nd access to services.
strengthening regulation of electric ity prov iders so as to e nsure a reliable service. expanding
alternative renewable energy product ion. increasing emergency oil reserve s and ensuring
protection of natura l resources. and enhancing community development. Gende r and
.I IV IA IDS issues will be mainstrearned in a ll energy sector activities.
Electric Powe r Generation Const r uct ion Program : Ethio pia has a potential to gene rate
45,000 MW of hydroelectric power. Howeve r. currently only 2000 MW is ge nerated. It is
planned to increase this level of power generated by four times. Implementation strategies a re
to promote a mix of energy sources by developing rene wable wind and geothermal resources.
prevent power loss and promote proper utilization of e nergy. reduce unit cost of power
generation investments and operat ions. and provide elect ric ity at affordable prices.
Electrlciry transmission lines construction : To e nsure a reliable electric ity supply and
transmit the electric power efficie ntly and economically to consumers. construction of a
re liable distri bution and transmission networks is essential. To this end. due empha sis will be
give n in the Unive rsal Electrification Acce ss Program to construct new transmission lines and
connec t them to the nationa l grid as economically as possible and to reduce power losses.
Further implementation strategies are to minimize the cost of construction of transmission
line s. improve control of power sources a nd construct additiona l transmission substations so
as to achieve efficie nt power d istribution.
Thc Power Ilistribution and Expansion Program wi ll adopt implementat ion strategies to
modernise the power distribution syste m wit h the aim of increasing service de livery
and irrigation pumping. The program will be executed in close collaboration with, and e nsure
participation of, local contractors and manufacturers, technical and vocat ional school
graduates, and other stakeholders. Electr ic ity is an essentia l part of the rural transformation
agenda because it is an important input for businesses and productive enterprises in small to
medium sized towns and as an input for agricu lture, irrigation pumping, commercial
agricultura l production and processing. Equitab le distribution of services to the rura l
economy, agricultura l and other sectors development has a beneficial effect nationally.
The national re gulatory system to ensure conservati on of electricity a nd energy
efficiency: Implementation strategies will seek to meet increasing demand for energy by
encouraging private investors a nd government electric utilities engaged in the sector. Actions
taken to support this strategy include licensing a pplicants and granting certificates of
competence to potential energy produce rs. A further approach is to e nsure that reasonable
tariff' structures that are affordab le are app lied. Energy audit activities will involve
establishment of energy efficiency management sections for selected consumers, pa rticularly
high energy consuming organisations.
A study of requests for annua l tariff revision by devel opers will be ca rried out with the aim of
establishing an economical and fa ir for e lectricity services, while at the same time
encouraging investment s a nd its recommendations implemented following agreement and
endorsement by the responsible authorities. Energy conservation and mitigation of energy
losses will be pursued for each economic sector. The measures to be taken will iden tify the
most effi cient energy consumption technologies, establish performance standards, implement
and conduct regu lar inspection activities on electric utilities, prepare reports and taking the
corrective measures necessary.
Bio-fuel devel opmen t: Ethiopia' s emissions of C0 2 are very low compared to deve loped
countries. Nonetheless, access to a range of reliable, affordab le and clean energy sources is
critica l for sustainable growth. One of the potentia l means to rea lize the shift to more
sustainable fuels is the product ion of bio -fuels and other renewable energy sources, as a part
of Ethiop ia' s green development strategy. As stated in the bio-fue l development strategy,
Ethiop ia has suitable land for bio-fuel (bio-ethanol and bio-diesel) devel opment.
Implementing a bio-fuel development initiative, in line with country' s Green Development
Strategy, will enable bio fuels to substitute for imported petroleum fuel and even sufficient for
expo rt. Moreover, j ob s will be c reated locally at different stages of bio-fue l production
process and thus contribute to raising living standards. Action will be taken to expa nd bio-fuel
plantations, introduce use of bio-fuel in households for coo king and lighting, standardize and
re fine information relating to land, technologies and market s for bio fuel deve lopment, and
promote knowledge about bio fuel use in each region. Benefits of this initiative include,
improvement of the country's ca rbon sink, reduction in d eforestat ion, and reduct ion in the
time spent on and burden to women and children in searching for firewood. Steps will be
taken to involve investors and other sta keholders in bio fuel deve lopment processes.
The Bio-fuel Development Program will implement strategies during the plan period to create
a network of implementing agencies, research institutes and universities to adapt and promote
Alter na tive energy developm ent and p ro motion will develop e nergy resources a nd
technology by adoption, adap tation o r innovation of new designs. T his strategy a ims to
produce prototypes and test the effic iency of energy sources and tech nologies based on
consumer de mand. Other alterna tive energy development and promotion initiatives are to
work c lose ly on energy resource identification and technologies with government agencies,
NGOs and private companies and provide tra ining for the business sect or including
manufacturers. Awa reness within communities will be created and promoted. Demand for
alternative e nergy tec hno logies will be improved and loans arranged fo r manufacturers and
cons umers to insta ll alte rnative tec hno logies.
Altho ugh, Ethiopia is endowed wit h a variety of energy reso urces, many of these reso urces
have not yet been ex ploited. A study of efficie nt a lternat ive energy resources and usages, and
the means to e ncourage the ir development wi ll be ca rried out. Attenti on will be given in the
study to environment protect ion a nd co nservation. The study will involve co llaboration
betwee n government, reg ional states, private sector and other stakeholders. Application of
improved a lternative energy technologies will help minimize d efo restation, reduce indoo r air
po llution that results in health prob lems a nd save the time women and c hildren spend
searching, co llecting & transport ing fuel wood. As a result, fami lies will have more time for
other productive work. By bu ilding the capacity for regio nal implementatio n agents and othe r
stakeho lders' a lterna tive e nergy technologies and resources will become more widely
ava ilab le to users, increase susta inable energy use and benefi t communities.
Ca pa city buildin g: The o n-going program to strengthen the tec hnica l and vocationa l skills of
schoo l graduates, and of manufactu ring ind ustries relevant to the e nergy sub-sec tor, so as to
build own capac ity and reduce fo re ign cu rrency needs, will be co ntinued.
St ra teg ic pet ro le um re ser ve facility developm ent a nd ope rat io n: Being a petroleum
importing country, the rel iable and co ns istent supply of petro leum is essential for
deve lopment of the Et hiopia' s economy. It is a strategic necessity for a ll o il importing
co untries to secure the ir access to o il; it must be ava ila ble continuo usly and it present and
future supply must be sec ured. A number of fac ilities have been constructed made o perational
in prev ious years. Currently Ethiopia 's strategic pet roleum reserve ca pac ity is 369.800m 3,
which is a bout a two months supply. During the GTP period, development o f the strateg ic
petroleum reserve fac ility will cover all areas assoc iate d with deve lo pment and ope ratio ns.
These include: the co nstruction of storage ca pac ity. ma intenanceof fac ilities for the sto rage of
petroleum. o il acqu isit ion and transfer to storage and o perationa l read iness act ivities suc h as
d istribution of the stock to local co mmerc ia l d istribution syste ms.
The current strateg ic petroleum reserve sto rage ca pac ity will be inc reased from 369,800m 3 to
429 ,OOOm3 which provide s for 45 days consumpt ion . The c urrent strategic pet role um reserve
stoc k of 87000 m3 will be increased to 429 ,OOOm3 which, as stated abo ve. covers 45 day s
consumption. Strateg ic petro leum reserve faci lities will be mainta ined and the operational
read iness of the strategic petro leum reserve ensured. The implementation strategies adopted
for the strategic petroleum reserve fac ility include increasing the size of strategic petroleum
reserve sto rage capacity, increa sing the size of st rategic petroleum reserve stoc k, a nd
environme nta l de gradat ion . Inspection o f petroleum downstrea m usage is a new area for
regulat io n and co ntro l. It is intended to ra ise regu lati on and contro l to the international level.
and provide e ffectiv e mon itoring and suffi c ient inspect ion ca pab ility. Serious attenti on wi ll be
given to the ad dressed and reso lve the prob lems. bui ld. extend and provide an e fficien t
petroleum produ cts supply and utilizat ion system.
The imp leme ntat ion strateg ies incl ude the preparat ion of d irect ives, regu lations. and technica l
standard s for the inspection and mon itoring o f petro leum down stream services. so that a ll the
dow nstrea m bodi es a re co vered by a n integrated law and regulat io n deta iling standards a nd
spec ific atio ns. The regulator y framew ork w ill ensure the qual ity and reliability o f the serv ices
prov ided by petroleum downstream op erators. Petroleum produ cts d istributer wi ll be
ins pected to ensure petrol depots. tran sportat ion and d istri butio n fac ilities. including the ir
constructio n and perfo rmance , fu lfi linternational sta ndards. System s wi ll be put in p lace to
ensure that petroleum produ ct s, fa cil ities.sto rage. tra nspo rtatio n and d istributio n meet proper
industry stan dards .
5.5.4 Telecommunication
Stra tegic Directions
The strateg ic d irect ions here are to ensure that the inform ation and co mmunication
infrastructure a lready in place is effect ive ly uti lized s uch that it provides higher q ual ities o f
information and co mmunication se rvice s. In order to effect ive ly ut ilize the infrastruct ure and
de liver h igher q ua lity services at competitive prices the te leco m com pa ny wi ll under go rad ica l
institutional reform such that its instit ut iona l capac ity shows fundamenta l c hanges. In
add itio n. ensuring a secure IT system w ill be a strateg ic d irect ion of the GT P. while
development of the domestic ICT sector will a lso be accorded d ue emphasis.
Area s o f focus for the teleco mmu nicatio ns sub-secto r are to upgrade the ex isting lCT netwo rk
to accom modate the latest info rmation techno log ies a nd im prove network q uality and ex pand
services. An a ll incl usive te leco mm unicat ion service de livery a nd ICT suppo rt where it is a
req uire ment o f othe r deve lo pment program s will be put in place . The human reso urce
capacity o f the sector w ill be built. On go ing proj ect s to develo p the netwo rk w ill be fina lized .
IT services avai lab le acro ss the co untry. incl udi ng high q ual ity integrated te lecomm unicatio n
services packages (co nverged val ue added services). w ill be provided . at a reasonable price .
Fixed line and mobile te lephone se rvice provision wil l be e xpanded nat ion wid e .To
acco mmodate the latest info rmat ion co mmunication technolog ies. a ll te lecom municati on
infrastructures will be d igit ized . Th e inte rnet service ex pansion progra m w ill bene fi t city
go vernments. wo reda c itie s, academ ic inst itut io ns. incl ud ing high schoo ls and unive rsit ies,
research inst it utes. socia l o rganizat ions and the privat e sector. T he ongo ing net work
expansio n program w ill be strengthened by building a high capacity fi bre o ptic tran smission
line and link ing it through neighbou ring co untries to inte rnat io nal marine ca ble s. Thi s
init iati ve w ill provid e the co untry' s g loba l d ig ita l gate way .
where telecom resources are limited (fo r instance nat ional frequency spectrum. te lephone
numbers. numbers and internet provider addresses) that they are used fairly and economically.
A further focu s is to ensure the sec urity of the telecommunication service by combating
illega l use of the netwo rk and tra nsmissions of illicit co ntent.
Object ives
The key o bjectives are to ensure a co mpetitive (in terms of prices and quality) and sec ure
te leco m services. and build a fa r reach ing nationa l ca pacity in te lecom deve lopment and
management. Emphasis is on fina lizing the co nstruction of the on going network
infrastructure and applications to expand services. A need based network may also be
expanded. The rural universa l te lecommunication access program will be expanded and the
qua lity of fixed line. mobile phone. internet and data service provision improved and
ma inta ined.An environment co nducive to use of the late st te lecommunication technologies
will be created. A fa ir and economical util ization of nationa l frequency spectrum.
telecom munication numbers and inte rnet provider addresses is ensured Illegal
telecommunicatio n activit ies will be pre ve nted
M ajo r Ta rg ets
The targets to be ac hieved by the telecommun icat ions sub-sector are presented In the
fo llowing tab le.
Ta ble 32 . GT P Ta r gets for th e Te lecomm unica tions Sub-Sector
Descrlprhm of Target s 2009 /20 10 20 14115
I. Number of fixedlin e tele phone subscribers (mi n.) I 3.05
2. Fixed line telephon e density (% ) 1.36 3.4
3. Number of mobi le telephone s ubscribers (mi n) 6.52 . 0
4. Mobile telephon e coverage ( % ) x.7 45
5 . Number of Internet service subsc ribers (mIn) 0. 187 3.69
6 . Ruraltclccom acc ess within 5 km radius ofscrvlccs (%) 62. 14 100
7. Wireless tclecom service cove rage (%) <50 90
K. Global link ca pac ity (G b/s) 3.255 20
Implementing St ra tegies
Th ree key implemen tation strategies are ide ntified. First. the national te lecom compa ny will
be reformed such that it is tran sformed to have an institutional ca paci ty that de livers high
q uality and com petitive services. The telecommunicatio ns provider will be fundamentally
upgraded to meet international standa rds using the services of reputable foreig n compa nies.
The second strategy concerns the establishment and effective e nforcement of comprehensive
policy and regu lato ry framewo rks to prevent and co ntro l illega l activities in the industry. An
of systems to prevent integrated syste m failure. and ensure its maintenance and improvement.
measure network flow and quality. and c ustomer compliance. T he te lecom service qua lity.
network capacity and frequency spectrum utilization and control will be strengthened.
Monitoring of rura l kebe les' telecom munication services will be increased and an
admin istrative assistance strategy provided and dissem inated. The qua lity and traffic ca pacity
of service on internat iona l lines will be improved. A strategy to raise additional funding
reso urces for the sector will be deve loped. A strategy for capturing more customers via
outsourcing. marketing and business will be designed and implemented.
5.5.5 Potabl e Water Sup ply a nd Irri gati on Developm ent
St rategic Directions
Priorities for water resources management will support ove rall GTP ob jec tives for integrated
and sustainable deve lopment. Sub sec tor specific priorities are to improve util izat ion of wate r
resources by interconnecting different sectors a nd users. ensure fa ir and equ itable utilization
of water resources taking into co nsideration exist ing demand and future generations' needs.
The impacts of runoff. drought and other natural hazards will be mitigated.
An integrated approach will be taken to water resource s developme nt and utilization that
gives due conside ration to its security and safety as a resource on the one hand. while also
considering fully the paralle l needs o f resource usage such as water supply. dev elopment of
irrigation. river basin administration. watershed management and re lated activit ies. An
integrated approach to water resources manageme nt will take into account complementary
natura l resources and sectors such as agriculture. hea lth. mining and energy. etc. Attention
will be give n to the contribution the wate r sub sector must make to achievem ent of MDG
targets. Development initiative s will include water supply. irrigat io n and drainage
deve lopment. a hydropower study and design. a surface and ground water study. an integrated
master plan study and watershed management.
Objectives
The development o bjectives. durin g the GTP period. are to develop and utilize water
resources to fulfil soc ial a nd economic priorit ies. susta inably a nd equitably. by increasing
water supply coverage. and develop ing irrigation schemes that ensure food security.
l\lajor Target s
To meet the above objectives. during the GT P five year period. the following targets have
been set for potab le water supply and irrigation development during the plan period (and for
eac h budget year. in the case of potable water supply).
Ta ble 33. GTP Targe ts for Pota ble Water Supply and Ir r igation Developmen t
Descriptio n of Pota ble water Target s 200912010 2014 /15
I. Urban po table water supply coverage with in 0 .5 km radius (%) 9 1.5 100
Ile scription of Tar get s for Other Parts of the Water Sub Sector 2009/20 10 20t4 /15
8. Pre- feasibility study on multipurpose hydropower projects
6447 9.227.4
(MW)
9. Feasib ility and deta iled design on multipurpose hydropo wer
1.431 8.398.4
projects (MW)
10. Increase the ground water information an d know ledge (at
3 22.7
150.00 0 sca le ) mapping cove rage(%)
II . Increase cove rage o f national surface hydrology stat ions ( % ) 85.6 <J{J
12. Increased integrated rive r bas in man agement master plan (%) 25 63
13. Rehabilitate degraded and damaged land [ha} 1.000.000
14. Upgrade information prov ided at the sur face hydrology stations to internatio na l standard
It is also estimated that. nat ionall y, a potent ial 01'5. 1 m In ha ofl and can be deve loped through
various irrigation met hods inclu din g, pump. gravity. pressure. unde rgro und wate r, wate r
harve sti ng and other mecha nisms. Based o n t his est imate o f potent ia l. irrigat ion devel o pment
activities. part icu larly sma ll sca le irrigation wil l be g iven priority in the plan period.
Impl ement ati on St rateg ies
The im pleme ntation strateg ies for potable water supply are to en sure a dependable and
susta inable water supply ba sed on deman d and efficie ncy measures. Sustai nab le and feasible
te chno logie s w ill be impleme nted to improve t he ru ra l wate r supply co verage. Active
management and operatio na l mechan isms o f ex ist ing wate r faci lities wi ll be ensured . Wate r
eco nomy mea sures will be devel oped and imple me nted for ex isting water schemes and,
before they are constructed for new sc hemes. Add itio na l imp lementation strateg ies w ill aim to
satisfy water demand at t he househo ld level w hile tak ing acco unt of the co untry's capacity.
Th is strategy will use cr iteria ba sed on socio-eco nomic c riteria to assure co nsumers o f a n
eq uitable and efficient d istribution. a nd utilizati on o f the wate r in excess o f the ba sic demand.
A strategy wil l be pu rsued to prio rit ize low cos t schemes and projects that will be
imp lemen ted throu gh loan s. im plement measures suc h as co st reco very in urban water supply.
and bui ld capacity at all le ve ls o f water resou rces management.
The imp leme ntation st rateg ies fo r irrigati on and integrated water reso urces mana gement are.
development of new irrigati on sc hemes . co nstructi on sha llow a nd dee p wells for irrigat ion in
area s ric h in gro und water. faci litat ing cond ition s for med ium and large sca le irrigat io n
development (b uilding dam s and related infra structure), imple mentation tech no logies and
mec hanisms that improv e efficient water usc in medi um and large sca le irrigat io n sc hemes.
and estab lishing and integratin g meteo rology and hyd rol ogy services at a ll level s (from
federa l to d istric t o r wo reda) . Local resources. s kills and knowledge in wate r resou rce
ident ificat ion and ut ilizatio n will be enhanced. st ud ies and researc h into trad itional and
alternative low co st tec hno logie s w ill be co nducted. and a ppropriate tec hno logie s deve lop ed.
5.5.6 Tran sport Services
service. The time rural people spend trave lling will be reduced by providing a ll wea ther roads.
thus giving them more time to spend on productive act ivities.
Increasing eco no mic activities in Addis Ababa. Dire Dawa and the main regiona l c it ies
demand expansion of urban transportation systems. This in tu rn requ ires development of
better transport systems and se rvice s. and mass transport infrastructure. Development of urban
transportation systems wi ll be based on e fficient urba n land utilization and develo pment
planning as well as analysis of existing a nd future traffi c de nsity patterns. One of the key
c hallenges for urban transportat ion is a n implementat ion capac ity gap and. for this reason.
e mphasis will be given to build the ap propriate human resource and administrative capac ity.
Considering the relatively low vehicle de nsity in the co untry. the number of traf fi c acc idents
is very high. Preven ting and reducing traffic acc idents and the resu lting loss of human life and
property. is imperative and timely. Accordingly. an integrated traffic security and modern
traffic management system. supported by informatio n technology. will be developed and
impleme nted in a ll regions.
Object ives
A ma in o bj ective of the transportation sub-sector is to ensure that the public transport system
is e fficient and a ffordab le so that the trave l time of particu larly t he rura l populations is
red uced and they have more time for productive activities. A seco nd ma in o bj ective is that the
urban transpo rt system is effici ent. sec ured and well integrated. A further obj ective is to build
the e ffectiveness of reg ulato ry bodies by putt ing in place an improved lega l and regulatory
framew ork . An e ffective institutio nalframework will help to ensure private tran sport se rvice
provide rs are competent a nd provide proper standa rds of service. The human resource
capacity for better management and service de livery will be deve loped. A nationa l data base
fo r freight and publ ic transport will be created t hat will reduce the time processing
admin istrat ive requ irements and the costs o f freight transport.
Major Ta rgets
Fo r the GT P pe riod. the follow ing targets have bee n set fo r the transpo rt services sub sector.
Tab le 34. GTP Targets for the Tra nspor t Services Sub Sect or
Description of Tar get s 2009/10 201·ms
I. Increase the ava ilab le scat km (hln ) 25. S 32
2 . Total dis tance cove red hy hUSl'S ( km) 70.0 ()O IOO.()O()
3. Daily moto rized transport supply o f Add is Ababa C ity
2. 162 . 162 3.083 .360
(passengers scat s)
4. Public trans po rt supply coverage (%) 14 4K
5. Waiti ng time for public tra nsp ort in A.A (m inutes) 45 15
6 . The average annual freight distance covered (km) SO.OOO 120.000
7. Tra me acciden t death rate ( per 10. no n peop le ) 70 27
Impl ementin g Stra tegies
To ac hieve the abo ve o b jec t ives and targets fo r the transpo rt services s ub-sector. wor ld-class
regulatory and service de livery sys tems w ill be introduced. Nat iona l logist ics coo rdinat ion
exce llence and informat ion ce ntres wi ll be bui lt. while spec ia lized human reso urce
devel opme nt in road tran sport wi ll a lso be g iven att entio n. A rural tran sportat ion expa nsion
pac kage w ill be design and imp lem ented. An ince ntive structure fo r stakeho lders who
participate in the sub-secto r wi ll be created . Improvem en ts w ill be made to t raffic
ma nagement. An organ isat iona l system for control a nd integrat ion o f public tra nsport
assoc iations w ill be developed ; it will include a system for co mmerc ia l companies to
enco urage them to im po rt new a utomotives and to address the needs o f those who need
spec ia l assistan ce. A modern tra ffi c flow o perations ce ntre w ith the latest information
tec hno logy w ill be bu ilt. A road safety co unc il wi ll be co nst it uted. operationa l at fede ra l.
reg iona l and local levels. to in itiate and coord inate road safety proj ects and progra ms and
build a nation al road tra nsportatio n data base.
5.5.7 Maritim e Tran sport
Stra tegic Directions
A key focu s area du ring the GTP period is to enhance the ca pacity of the sub-sector for
effic ient service deli very by build ing a maritime tran sport system that w ill redu ce the time
spe nt, cost o f tra nsit log istics and processing o f im ports and ex ports. To th is end. a multi
modal maritime and sea transport at ion service deli very system will be put in place . Dry port
ca pac ity w ill be e nha nced and co nso lidated while taking into acco unt the po int o f dep art ure
for. and destinati on o f. goo d s. In additio n. to further fac ilitate th e impo rt-expo rt trade a nd
speed up tra nsiting o f good s. the tran sit time of goo ds at sea po rts will be red uced. The
number o f control a nd we ighing stations w ill be red uced and the management of ve hic le
uti lization in the co rridors increa sed in order to increase the frequ ency o f veh icle travel and
reduce tran spo rtation time. To provide an efficient and goo d qua lity service. the safety o f
import-expo rt tran spo rtation co rridors w ill be assured. A log istics system that is suppo rted by
modern tech nolog ie s wi ll be deve loped.
Obj ectives
In the GT P per iod the dry port infrastr ucture in the co untry w ill be expanded and enhanc ed.
Impo rt-expo rt business o perations wi ll be fac ilitated by rea lising the mutua l econom ic
bene fits t hat can be ga ined through partnership with neighbouring cou ntr ies and improved
ut ilizat ionof transit co rrido rs. to reduce t he time and cos t o f logistics in im port-e xport trade.
The national snipping li ne' s carry ing ca pac ity will be enhanced. To support the fre ight
t ransport service w ith in the co untry. t he local wate r t ranspo rtat ion service w ill be im proved.
l\l aj o rTa rge ts
Th e GTP targets set for the maritime transport sub sector are presen ted in the fo llow ing tab le.
Description or Tar get s 2009110 201·ms
3. Availublc scat kilo meter in local water trans portat ion (m in
0.9 1.4
ton)
4. Red ucetrans it time lo r imparts and export s (days ) 30 20
5. Ex port ca rgo tra ns ported by the ne wly Improved syste m (%) 90
6 . Ac hieve a sea port ut ilizati on for Dj ibo uti. Bcrbcra and Port Suda n. respectively (%) 60/30/ 10
7. Increase the capacity of Mojo an d Semo ra dr y po n s(for general cargo. excl uding
100
unpacked and liquid ca rgo) (% )
8. No. ofloa ding stations to be built a ll over the co untry dur ing thc pla n period 35
9. Fuel tra nsported by Ethi opia n ships (b in to ns ) 3.6
Im plementation St rategies
To ac hieve the above targets for the maritime transport sub sector d uring the plan per iod the
multi modal system will need to be fully imple mented, while the capacity o f dry ports
infrastructure facilities have to be enhanced. Part nership and co llaboration with the
neighbo uring countries is another important strategy for effective sea port utilization and
regiona l integration. Improving the containerizat ion system is considered as one of the
strateg ies for improving the sea transport and maritime services . The control systems at
tra nsport corridor c ustom chec ks will be improved. The fre ight transport and log istics
program will be implemented. A loca l water transport utilization strategy wil l be de ve loped
and imple mented. and related human resou rce capacity strengthened.
5.5.8 Air Tra nsportat ion Services
St rategic Directions
The maj or focus for ai r transpo rtation services is on further strengthening the competitiveness
of a ir transport and expanding passenger and ca rgo transport services by creat ing new
inte rnational destinations. Do me stic air transportation service delivery will be expanded such
that it supports the develo pment of to urism activities in the co untry.
Standardized cargo terminal and cooling systems at diff erent ai rport s will be built to faci litate
the import and export trade of horticulture. meat and perishable commodities. The capacity of
the air cargo system will be improved in order to enhance quality and affo rda bility of the
service. In additio n. the o ngoing co nstruction of a irpo rts.at different locations of the co untry
will be co mpleted; and their operatio nal and technica l sta ndards brought up to req uired levels
so that they del iver services at internationa l standards. Lastly. an important focus will be to
improve overa ll the ca pacities of the ai r transpo rt syste m (of a irplanes' carrying capacity.
pilots. other professio nals. a irports and o perato rs) throug h capacity deve lopment aimed at
improving aviation safety a nd sec urity.
import-export trade in the co untry will be supported by providing efficie nt and affordable
cargo services. Air port sec urity and sa fety facilities in ex isting and newly built airports will be
ful ly maintained and navigat ion services provided that are standardized. sec ured and
susta ined.
Major Ta rgets
To achieve the above objective s for the air transportation sub-sector the target s for the plan
period are presented in the following tab le.
Tab le 36. GTP Targe ts for Air Tra nsporta tion Se rv ices Sub Sector
Description of Tar get s 2009110 2014 /15
I. International and domestic passenger (bin scats) 15.2 37.2
2. International a nd domestic passenger (min km travelled) 263 994
3. Passengers o n internationalfli ghts (min no.) 2.7 6.6
•• Passengers o n domestic flights ('(}(lO no.) m 14M
5. International passenger Ilight dest inations (no.) '" 776. International flights capacity o f loc al airports (Regular and
45.0(){) 67.0(}O
temporary) (no.)
7. Domestic nig hts capacity of local airports. (o f regular and 49.()()(J 72.()(}0
temporary) (no.)
8. Accommodation capacity for passengers of internationa l
3.88 30.5
tlights all airports (min no. )
9 . Accomm oda tion capacity for passengers of loc alfl ights all
0.96 7.6
airport s (mi n no.)
10. Local tlights coverage ('Yo) 16 20
I I. Cargo carried from all four internatio nal airports (to ns) 11 9.()()0 3 11.0()(J
12. The number of operato rs/investors in the sector {no.] 21 35
13. Globally accepted fatal acciden ts rate (rutio} J O/ 1O.nOO 5/ 10.0()O
Implem en tin gStrategie s
A nationa l av iation capac ity building program will be designed a nd implemented. Regulatory
and service delivery systems wi ll be benc hmarked again st internationally renowned aviatio n
industrie s. Com munities' and regiona l gove rnment's participation in airport co nstructio n will
be encou raged. A standard governing a irport construction and standa rdized system of a irpo rt
c lassificatio n will be designed. New destinatio ns and flight program s will be opened. using
market ex pansion strategies . New airplanes will be purchased so as to improve service
q ualities and e ffic iency, including loca l flights. Safety ' and facilities' systems and c ivil
aviation monitor ing system will be o perated to acceptab le international sta ndards.
5.5.9 Urba n and Constr uction Develop ment
increasing urban populat ion. These will turn help reduce poverty and unemp loyment in urban
centers and thereby enhance the role of urban centers for accelerated economic development.
The construction industry has registered significant growth in the past five years plan period.
It played an important role in improving the delivery of socia l a nd eco nomic infrastructure,
generating jobs a nd contributing to economic growth. To sustain this in the GTP period, a nd
enable the local construction industry play its role in accelerated socio-economic development
of the country, focus will be on building the capac ity and com petitiveness of the industry by
impleme nting a comprehensive and integrated capacity building program. The legislation and
enforcement of a regu latory framework that ensure safety and competitiveness in the industry
is also considered c rucial to GT P.
Stra tegic Direction
Key strategic areas for urban development are poverty and unemployment reductions,
sustained and integrated development through rural-urban and urban-urban linkages,
participatory engage me nt of the urban populations in deve lopment and governance, forming
strong partnerships with the private sector, and establishing effective decentralized
administration systems that ensure self-rule of cities and tow ns.
Regarding development of urban infrastructure, the key strategy is to enhance the capacity of
city admin istrations to plan, provide and manage the supply of urban infrastructure and
services. Investme nts in urban infrastructure have to consider the role and importance of the
citie s in regional and national social and econo mic deve lopment. Infrastructure development
should create an environment conducive to accelerated economic development and equitable
d istribution of services. To rea lise fully the potential contribution of towns and cities to
eco nomic and social development. the development and expa nsion of infrastructure will have
to be undertaken through the joi nt and coo rdinated efforts of the governme nt. private sector.
and the public. When infrastructure develo pment activities are carried out. the potentia l to
create a wide range of job opportunities and promote micro and small enterpr ise development,
will always be taken into cons ideration.
Low cost housing would also be promoted for the low and middle income households
particularly in Addis Ababa. The housing development initiatives would result in the creation
of new MSEs operating in the construction sector, strengthen the exist ing MSEs and provide
huge employment opportunities. The housing program needs to be exec uted in a way it
promotes domestic savings, reduces slums and improves the urban environment.
The development of the construction industry will be promoted during the plan period such
that it is labo ur-intensive, market-oriented, led by the domestic private sector, competit ive,
ethica l, and free from corruption. Development of the construction industry will take into
account micro and small enterprise develo pment, capacity building requirements, and e nsure
the full part ic ipationof women. Steps will be taken to ensure that design a nd construction
activities acco mmodate the needs of the disab led citizens.
Obj ect ives
of the various urban infrastructure and business development initiatives. Strengthening the
capacity of cities to se lf-govern themselves and public participation are -expected to improve
the governance system. It is planned also to construct affordable. good quality and
standardized urban housing. particularly in Addis Ababa. reduce urban slums. add ress
housing (shelter) problems. promote domestic savings and create a wide range of job
opportunities.
For construct ion ind ustry deve lopme nt: The objective here are to ensure construction
works a re completed to the standard required. time lim its set a nd costs planned. build the
capacity of the domestic construction industry to fully meet local demand. ena ble the industry
to make a significant contribution to the sustainable growt h of other sectors and the national
economy. as well as improve its productivity. Add itional object ives are to create j obs.
develop the sector's overa ll capacity and increase the number of local companies (contractors.
consulta nts. construction machinery supplying and leasing companies. and construction
material suppliers) engaged in the industry. and ensure the effect ive usc of public investment
in different construction works.
Major target s
With regard to construction and urban development the main targets dur ing the plan period
are presented in the fol lowing tables.
Tab le 37. GTP Target s for Co nstr uct ion Develop ment Sub Secto r
Description of T arget s
I . Raise the capacity o f exis ting cont racto rs by im proving capacity o f higher grade local co ntract ors and
co nsultants
2 . Promote (base d on prior assessme nt) lower grade co ntractors to midd le and higher grades
3. Facil itate the ce rtification of non skilled and sem i skilled man power
4. Promote the introd uction o f ne w contractors and consultants
5. Build the ca pacity o f companies leasing plant and equipment
6 . Based o n thoro ugh research reso lve the supply and demand ga p relating to both local and ind ustrial
co nstruction mate rials.
Tab le 38 . GTP Target s for Ur ba n Development Sub Sector
Description of Tar get s 2009ltO 201-1/15
I. In Addis Ababa. construct and tra nsfer houses (no) 150. 000
2. Red ucing slum areas in Addis Ababa (%) 60 30
3 . Const ruct houses in sugar developme nt projects (no) 10 1.022
Urba n infrastructur e deve lopment targets incl ude
4. Co nstruction of cobble stone roads [ Kr n] 3738
effec tive regulatory policy to regulate the activities of private rea l estate developers and
housing cooperatives will be implemented.
Impl eme ntat ion st rategies
Ur ba n Development: The ope rational strategies here concern the strengthening of
organizational and human resou rce ca pacities of urban loca l administrations. The
development and implementation of a susta inable urban infrastructure and housing finance
system is also another element of the imple mentation strategies. Here the primary focus will
be on improving domestic savings and revenues for infrastructure and housing developments.
The experiences so far with regard to public participation in planning. delivery a nd
management of infrastructure, housing and services as well as other governance issues will be
consolidated further during the GTP period. Finally the undergoing initiatives of
strengthening the urban planning, design and construction ca pacities will be consolidated
further to ensure better quality, cost efficiency and productivity in infrastructure a nd housing
de livery.
Constr uction Indu str y: The emphasis is on enhancing the capacity of the domestic private
sector so as to create a competitive local construct ion industry. To this end a comprehensive
capacity building program will be adopted and implemented. In the plan per iod, implementing
strategies will be adopted to increase the quantity and improve the qual ity of local contracto rs.
consultants and construction machinery leasing companies. The provision. production and
administration of construction materials will be strengthened and existing and new local low
cost construction materials developed and improved through research and technological
transfer; the ir use in designs and construction will also be provided. In sum, the second
strategy is promotion of import substitution in the production of construction materials and
services. Emphasis will be given to proper use of manuals, procedures and c hecklists and
adherence to regulations in all government and private construction activit ies. In other words
the strategy here is to fully enforce the building code already adopted by the country.
CHAPTE R 6.
SOC IAL SECTOR DEVELOPM ENT I'LAN
Social development plays a key role in enhancing people' s living standards. poverty
eradicatio n, economic grow th and stable governance. Much emphasis has been given to the
deve lopment of the sector in the past and it has developed rapidly. For the G IP per iod. based
o n the results ac hieved so far in the sector. the prov ision of ed ucation and health services will
be ex panded with the focus o n ensuring the q uality of services provided.
6 . 1 E I) UCAT ION AN I) TR A I NI NG
The Educati on Sector Development Program for the GI P period (ESDP IV) has the goa l of
produci ng democratic. efficien t a nd effec tive. knowledgeable. inspired and c reat ive citizen s
who co ntribute to the realization Ethiopia 's vision of being a middle income economy. The
ESOP IV focu ses on ed ucating and tra ining a wor kforce that meets ind ustries' needs at a ll
leve ls, particu larly the grow ing manu factu ring industry. The plan for the OT P period has a lso
take n into accoun t the findings of the review of ESOP III. Based on that review. the ESOP IV
was deve loped with a strategic d irection to ens ure eq uitable acce ss to q uality ed ucation at
genera l, TVET and higher ed ucatio n levels, and a lso e nsure that these three education levels
have strong linkage s to, and interrelat ionsh ips with, each other. T he key o bjective ove r the
next five yea rs is to e nsure the ac hieve ment of the MOO targets.
6.1. 1Stra teg icDirecti ons
The strateg ic d irect ions that wi ll be pursued during the OTP per iod under ed ucation and
tra ining secto r, tec hnical a nd vocat ional educa tio n and trai ning as well as higher education are
presented below.
Ge ne r a l Ed uca tion: T he initiative s,already in place to ex pand basic ed ucational services to
all, and ach ieve the MOG targets, will be strengthened. Cost effective and part icipatory early
childhoo d care and ed ucatio n will be expa nded in both forma l and non -forma l de livery
mechanisms. The role of the gove rnme nt will be to facilitate po licy based services, such as
supervisio n to en sure qual ity, support for provision of materia ls, deve lopment and provision
of curricu la, sta ndards a nd guidelines. prov ision of ea rly childhood care and educatio n
class rooms, and space within formal primary schoo ls fo r co mmun ity dr iven progra ms.
With regard to formal education, the exi sting strategic d irection is to ensure equitable acce ss
to quality primary ed ucation. The undergo ing initiative of provid ing fair and acce ssible
q uality formal ed ucatio n wi ll be co ntinued and co nsolidated. Th e cur rent ge nde r dispar ity will
be el iminated by the end of the plan period. The educatio n strategy for children with spec ial
needs will be fully imple mented to meet the needs of this gro up.
An importa nt priorit y will be to improve and e nsure the quality and effic iency of ed ucat ion at
all level s. To rea lize th is prio rity, the General Educatio n Quali ty Improvement Package
(GEQ IP) wi ll be fully implemented. Its subseq uent impact in improving stude nt ac hieveme nt
Tec hnical a nd Voca tiona l Ed uca tion a nd Tra ining/TVli'T: A good quality and efficie nt
TV ET system will be established through full implementat ion of the TVET strategy. To
achieve this, gove rnment investment will be inc reased a nd cooperative tra ining will be fully
impleme nted in order to ensure provision of the human resources that will satisfy the demands
of the nation ' s labo ur market.
The TVET system will continue to serve as a potential instrument for technology transfer,
through the development of occupational sta ndards, acc reditation of competencies,
occ upatio na l assessment and acc reditation, a nd the establishment and strengthening of the
c urriculum development system. TVET institutions will serve as the ce ntres of technology
acc umulation for MSEs. Rigorous and regular monitor ing and eva luat ion will be carried out
amongst TV ET institutions. Government and private monitoring will enable them to ensure
the minimum levels of competency. The basis for M&E will be whether the tra ining tak ing
place is al igned with the demands of the economy and whether trainers are satisfying the
requirements cited in the tra iners' competency pac kage. M&E will also look at the tra inees
and assess whether they fit the profile and demands of the ir c hose n occupation and are ab le to
access j ob opportunities. Generally, the M& E system will eva luate whether TVET institutions
are o n the right track with regard to the strategy and, if not, take immediate corrective
measures for improvement.
IIigher Ed uca tion: T he key priority for higher ed ucation d uring the plan period will be to
e nsure qua lity and relevance. To this e nd, the management and administrat ion system of
universities will be improved and strengthened, and efforts will be made to enable the Highe r
Education Strategic Ce ntre and the Highe r Educat ion Qua lity Assurance Agency to ac hieve
the ir purposes. The performance and implementation capacity of technology institutes will be
built upon. Implementation of a full fledged teacher development progra m will ensure an
adeq uate supply of university teac hers. The revised c urricula will be impleme nted in line with
critica l issues. such as, instructiona l process, assessment and examinat ions and student
achieve ment.
The education provided by Higher Ed ucation Institutions (HEls) will be made compat ible
with the qua ntity, type and qua lity of the human resources demanded by the economy and the
labour market. Accordingly, the increase in enrolment in graduate and post graduate programs
will a im to be in line with the 70/30 program. A system will be introduced which wi ll enable
universities to raise thei r ow n interna l revenues. Th is will he lp them improve the qua lity and
relevance of ed ucation provided.
A techno logy transfer-centred resea rch syste m for HEls will be put in place. Ca pacity
building wi ll be undertake n to improve performance, especia lly of sc ience and tec hnology
institutes a nd departments. Ca pacity building will a im to make ce rta in HEls support economic
devel opment through technology tran sfer. In genera l, the research system in HEls will be
guided by the role they play in the econom ic growth and development of the country.
Assurance of the qua lity and relevance of education provided in private HEls will be another
key prio rity issue during ESOP IV. These institutions will be evaluated and q ua lity assured.
6.1.2 Objectives
The obj ectives of the education secto r development program are to ensure an effective and
etlic ient education and training system that enhanc es quality, etliciency, relevance, equity a nd
access at a ll levels. T his will be achieved through performance capac ity building. and the
devel opment of. and adherence to. competency c riteria.
Objectives of Gener al Ed uca tion: The ob jec tives for general educat ion are to expand access
to good quality primary and pre-primary education and to maintain their quality and
e tlic iency,expand good quality secondary education that serves as a foundat ion and bridge
for production o fa middle and higher level workforce that meets the demands of the national
economy and labour market, expand the intake capacity of HEls, e nsure equity in education
by narrowing gender, regional and urban-rural d isparities, and expand access to functional
adult literacy (FA L) to enhance the country' s all round development endeavours.
Objectives of Technical and Vocational Education and Trainin g/TV f.T : The objectives
for TVET are to provide an outcome orientated, good qual ity and equ itable service, in rural
and urban areas, that meets the demands of the national labour market. TVET institutions and
services will become cent res of technology transfer creating concrete capability to support
MSEs through technology acc umulation, building organisational capacity and transfer of
technology. To this end, particular emphasis will be given to develop ing an integrated TVET
package that wi ll involve all actors and stakeholders. The TVET integrated package will
strengthen the ab ility of industries to set occ upational standards and provide accred itation of
competencies. A main object ive for TVET is to support women and youth to gain work ing
skills and competencies that ensure they are econom ically self sutlic ient.
Obj ective sof Higher Edu cation : The objective for higher education is to establish HEls that
are foc used on result orientated management, adm inistrat ion and performance, and that
recogn ize and scale up best practices. A further obje ctive for HEls is to provide an increased
quantity and quality of skilled and capable human resources that meets the needs of the
country in regard to its development in genera l, and the manufacturing industry in particular.
To this end, HEls will ensure that enrolment prioritizes science and tec hnology. In addition,
success ful HEls, that have provided good quality a nd relevant education that meets the
demands of the economy and enhances the compet itiveness and competency of female
students, will be recognised.
6.1.3 Ta rgets
Ta rgets set for the plan period, as indicators of access, equity, qua lity and efficiency, and
which will help to monitor and achieve the general and specific object ives of the education
sector, are descr ibed below for general, TV ET and higher education.
General Education, quality and efficiency : All schoo ls and resource centres, at each level,
will have principals and supervisors who meet the standards set. By this means. a school
management system that ensures educational quality will be established. Students that
complete each cycle of education will acqu ire the civic and ethical behav iour desired.
Tab le 39 . GTP Target s for Genera l Ed uca tion
Description of Tar get s 2009/10 2014/15
I. lncreuse studen ts' score in exa m inations and usscssmcr us at all grade
50 90
levels of ev ery'subjec t l %)
2. Gross enro lment rate to r pre-p r ima ry edu cation(% ) 4.2 20
3 . Net enrolment ra te for prima ry educa tion ( 1-8) (%) 87.9 100
4. Gross enro lme nt rate to r gene ra l sec o nda ry ed ucat ion (9 · 10)(%) 39 .7 62
5. Gross enro lme nt rate of functiona l adu lt lite racy (%) 36 95
6. (I cndcr disp aritytl -x} (% ) 0 .93 : 1 I : I
Tab le 40. GTP Targets for Technica l and Vocational Education and Training
Desc ription of Tar get s 2009 /10 2014 /15
I. Compete nt/cert ified ca ndid at es(%) 23 60
2 . Tech no log ies that ca n hel p create wealth and increa se income (no ) 30 00
J . T VET grad uates that enter the labou r market and be e mp loyed(%) 90
TVET system ca pability wi ll be estab lished to acco mmodate participants who have the need
and readiness to atte nd TVET and who can satisfy the minimum requ irements for each level.
Higher edu cation : Universities wi ll strengthen manageme nt and administration syste ms thai
can promote their missions of achieving quality and relevance of education. They will
cond uct research, which focuses on so lving problems in q uality and relevance and
development, and they will enhance community services. Provisions for sta ndard fac ilities of
libraries a nd laboratories will be assured in a ll HE!.
Tab le 4 1. GTP Targets for Ili gher Ed ucation
Description of Tar get s 2009 /10 2014 /15
I. University teac he rs (no) 23.()()()
a. Teachers wit h second deg rees (%) 75
b. Teachers with PhD degrees (%) 25
c. Student - tcachc r ratio 1:20
2. Annual inta ke for pos tgraduate progra ms (second degree and PhD (no ) 16.1 00
3. The ave rage grad uation rate of unde rgr ad uate program (%) 93
a . The gra duati on rate undergradu ate programs for fe males (%) 90
b. The gradu at ion rate undergrad uate prog rams tormales (% ) 95
4 . Gross ad missi on for unde rgraduate prog ra m (7 0:30 progra m m ix) (n o) 185.78 8 467 .00
5. Participation rate of fcma les in undergra duate progra ms (%) 29 4
6. Participation rate o f females in pos tgraduate prog rams (%) 10 2
6,1.4 Implemen ta tion St ra tegies
The qua lifications of teache rs. at every stage and for every type of education. will be
upgraded as described in the teacher development blue book through pre-service. in-service
and continuous professional development schemes. by provision of spec ial training to English
teachers to raise their proficiency at each leve l. per the standard set. by application of an
assessme nt tool for and identification of skills gaps. by fully implementing the Maths and
Science strategy that aims to raise student awarene ss and motivation for improved learning in
maths and science and achieving better res ults in these subj ects. and by creating strong
linkages and harmo ny between the curricula of different primary education. secondary
education and teacher training institutions c urricula.
To improve the qual ity of education. digitized (plasma based) secondary education will be
deve loped in a way suitable for broadcast. To implement th is initiative a chec klist will be
deve loped to determin e the expected att itudes. skills and inputs requ ired. The d igitized
broadcast strategy aim s to implement the GEQI P effi ciently, establish an effective M&E
system. evaluate the impact of the GEQIP upon changes in student achievement and
eventually upgrade excellence of the GEQ IP and its implementation.
With regard to equity and access. the Early Childhood Care and Education policy package and
strategy wi ll be fully implemented. Participatory school construction and networks will be
promoted . The distance between childre n's homes and schoo ls will be reduced. The existing
Alternative Basic Education Centres to regular schools will be transformed. More Alternat ive
Basic Education centres will be established when and wherever necessary. A strong
transformationa l nexus between Alternative Basic Educat ion centres and formal primary
schools will be estab lished.
In sca rcely populated areas, as a means of integrating and maintaining children in school and
of meeting the needs of pastoralist and semi-pastoralist students. strategies adopted will
include open multi-grade classes, open mobile and para-boarding schools and school feeding
programs. To improve the access rates of children in eme rging regions, affirmativ e action for
c hildren with vulnerabi lities will be promoted. To increase access to secondary educa tion.
secondary schools will be expanded. The expansion of secondary schoo ls will also involve
increased provision of secondary preparatory education. to meet the demand of the economy
for a skilled human workforce and be matched with the intake capacity of HEI. The private
sector. NGOs and the community will be encouraged to open secondary schools. Support will
be provided and monitoring of quality carried out to e nsure the standards of these schools
meet requirements.
Implementation strategies for functional adu lt literacy will follow the FAL strategy and
include interventions to provide curriculum and guidel ines, institutionalize training of FAL
fac ilitators at a ll co lleges of teacher educat ion in order to carry out fac ilitator tra ining
effic iently. The strategy for Special Needs Education to ensure equity and access will be
implemented. A robust M&E system will be put in place at a ll levels and cor rective actions
taken where required.
Techni cal and Voca tiona l Ed ucation and Training : Implementation strategies here include
Other ma in strateg ies are to prior itize occ upations and facilitate co nditions for provision of
comprehensive in-com pany tra ining. From among graduates, those with high competency wi ll
be selected for the post of tra iners at T VET ce ntres. Further, implementat ion strateg ies are to
promote selected and ex perienced tra iners to senior levels of training and managem ent.
Accredited trainers and teachers will be given owne rship ove r various training and technology
tran sfer activities. The capacity of the industria l work force will be improved to internatio nal
labour market standards. So as to ac hieve sustainabil ity of the TVE T system. the ind ustry ' s
institut iona l ownership of TV ET syste ms will be ensu red. It will be ensured that all TVET
centre s have competent and acc redited trainers for a ll occ upat ions in dem and.
Main TV ET implementation strategies for stre ngthening MSEs are to provide capacity
development, by promoting them as centres for techn ology tran sfer, ensure a decent ralized.
integrated and outco me based T VET syste m throughout the co untry, rea lize com petencies at
every level. strengthen the TV ET system throug h regular organizational monitoring, involve
stakeholders in occ upational standards, develop the curricula. training and assessment tasks.
establish a syste m for tra ining needs analys is. continuously upgrade occupationa l standards.
and conducting train ing of involved personn el.
IIi gher Ed ucat ion: For higher ed ucation, implementat ion strategies pursued will seek to
strengthen university leadersh ip and providing leadersh ip tra ining for new ca ndidates of
higher and midd le leve l positions. The intake ca pacity of all universities espec ially in sc ience
and technology and teac her development programs wi ll be increased. The professiona l
competence of HEI teachers will be sca led up by providing them with tra ining on, among
other subj ects. pedagogy, student assessment and action resea rch. The new universities
c urrently under co nstruction will be made fully o perat iona l and they will be furnished with
the eq uipment necessary and e ncouraged to give priority to science and technology and
teacher de velopment programs. A system to promote institutiona l & teacher com petence and
expert ise in cond ucting research and adapting technology will be esta blished. The National
Qua lifications Framework will be developed and implemented. All universities will be
e ncouraged and supported to establish well organized a nd policy guided interna l quality
assurance systems. The ca pacity of HEls to undertake grad uate tracer studies a nd ana lyze
employer needs will be developed. Lastly, it is expected that HEls will be ab le to revise and
improve their curricula. as we ll as deve loping schemes for the provision of affirmat ive actions
for those who need additional support. (fema les. yo uth with d isab ilities. emerging regions.
etc) such as. spec ia l ad mission criteria. tutorial support a nd scholarship o pportunit ies.
6.2 H EALTII
In prior year s, remarkable ac hieveme nts have been rea lised in the ex pansion and co nstructio n
of health facil ities and improvement of the quality of hea lth service provision . The Health
Extension Program is an innovat ive hea lth service delivery progra m that aims at universa l
coverage of primary hea lth care. The program is based on expanding phys ical health
infrastructure and deve loping Hea lth Extension Workers who prov ide basic preventive and
c urative health services in the rural community. The Health Sector Development Program IV
6.2. 1 Strategic Directions
The co re e leme nts of the health strategy are dece ntra lization of the hea lth care sys tem,
development o f the preventive. promotional and curative co mponents o f healt h care,
assurance o f acce ssib ility o f hea lth ca re for all segments of the population a nd the promotion
of private secto r and NGO s part icipat ion in the healt h sector. In add itio n.hea lth pol icy g ives
focus to health promotion and disease prevention, curative and rehabilitative services.public
health emergency prepared ness and to enabling the population to contribute its own health.
The health sector development plan aims at ensuring community ownership and
empowe rment through effective socia l mobilization. en hanced and susta ined awa reness
creation. supporting com munity o rganizatio ns and creat ing an e nviro nment co nd uci veto
community ownership and em powerment. The Hea lth Extensio n Program will be the prima ry
vehicle for preven tative healt h, healt h promotion, behav ioural change co mmun icat ion and
basic curative ca re thro ugh effective implementatio n o f sixteen pac kages.
The del ivery of good qual ity hea lth services is cent ral to improv ing the healt h status of the
po pulation . The Qua lity of Health Service applies a three-pronged approach to improv ing
qua lity o f hea lth services. A Hea lth Care Financi ng Strategy aims at increa sing reso urce flows
to the hea lth sector, improving the e fficie ncy o f resource utilization, and ens uring
susta inability o f financin g to improve the overa ll coverage and q ua lity o f hea lth service. Steps
to invo lve the co mmunity in the planning. implem entation. monito ring and eva luatio n of
hea lth interven tions will be strengthened. The role of the privat e sector in the de livery o f
health services will be increased in the plan pe riod. Vertical integration o f program
inte rventions at the point o f hea lth service deli very w ill be given high priority.
The pr imary focu s du ring GT P will be on the provision o f qua lity primary healt h care for a ll.
Thushea lth ce nte rs will serve as a first curative referral ce nter for liP s and wi ll provide health
care that w ill not be avai lab le at the li Ps through ambu latory and some cases of inpatie nt
admissio ns. Health post and healt h centers will be equi pped and staffed as per the standard
and expanded in a ll Woredas. Notw ithstanding the primary foc us o n primary hea lth care. due
e mphasis will a lso be given to the expansio n of higher qua lity hospital services a s per the
policies and strategic di rect ions of the health secto r. Refe rra lsystem will be stre ngthened
through effective implementatio n of the new guide line. To provide bett er q ualit y o f hea lth
services. the human reso urce strategy of the hea lth sector w ill focu s on retain ing t rained
hea lth professiona ls on the one hand. while on the other hand g iving greate r atte ntion to a
larger sca le training o f specia lists, med ical doctors and midw ives to co mpensate for the bra in
d rain.
Of particu lar impo rtance, g iven the fact t hat hea lth outcomes depend on so many facto rs, is
the inter- sec tora l co llaboration in crossc utting areas such as wate r supply and sa nitation,
educatio n, ge nde r,populat ion. and food supply. Also. give n the partnersh ip and network ing
between the Government and NGO s and civ il society and private secto r organizat ions
engaged in hea lth re lated activ it ies is beco ming increasingly impo rtant in enhancing
implemen tation of the program . In addit ion. the hea lth sector will forge st rong part nership a nd
standardized and competitive specialized hospitals will be promoted to provide quality health
services not only for Ethiopians but also for other citize ns to generate foreign currency a nd
promote and enhance national self-reliance in health development by mobilizing and
efficiently utilizing internal and external resources. Private pharmace utica l factor ies will also
be given much em phasis by providing incentives to sustainably produce and de liver quality
pharmaceuticals.
In order to achieve the des ired results of the health sector, a resource mob ilizat ion and
procurement (health care financing) strategy will be implemented. To ensure sustai nable
national pharmaceutical and service supplies to health facilities at all levels, adequate budget
will be allocated. So as to e nable uninterrupted and adequate pharmaceutica ls and medical
equipments to hea lth facilities, the necessary incentive package will be considered. In
addition, significant reduction in pha rmaceut ical wastages and improved rational drug use
will be another focus of the strategy.
Strategic direct ion related to HIV/AlD s: On the basis of the National IIIV/AlD s Policy
emphasis will be on expansion of effective prevention and control act ivitie s,promotion of
basic curative care related services, strengthe ning the systematic collection and use of
HIV/AlD s related informat ion, providing special care and protection to m V/AIDs patients,
mobilising adequate and susta inable resource to fina nce the HIV/AlD s strategy , as we ll as
on reducing vulnerability and new incidence to IIIV/AlD s.
In addition, focus will be given to a National Children Health Strategy aiming at the reduction
of under five morta lity, expanding family planning. ensuring pre and post natal cares and
support. hygiene and sanitation and reduction of major communicable diseases.
6.2.2 Objectives
The general objective of the health sector is to improve the health of the population by
promoting health of citizens a nd prov iding preventive. curative a nd reha bilitative hea lth
services. Specific objectives are to
Improve acce ss to health ser vice: Th is object ive includes provrs ton of affor dable health
services to improve the health of mothers, neonates, children. adolesce nt and youth, reduce
the incidence and preva lence of m V/AIDS, TB. malaria and other communicab le and non -
communicable diseases and improve hygiene and environmental health.
Improve quality of health services : Thi s objective includes provision of health services of a
standard quality by hea lth facilities at a ll levels. The standards app lied cover speed of
de livery, harmonization at the point of service delivery through the integration of vertical
programs, exploitat ion of opportunities ar ising. service effectiveness, patient safety and the
ethics and professionalism in service delivery.
Improve public health emer gency preparedness and response: Th is objec tive includes
improvements in health risk identification, early warning, response and recovery from
existing and emerging disease epidemics, acute malnutrition, and natural disasters of national
and international concern.
Imp r ove evidence based decision making: Th is ob jective aims at evidence based decision
making through enhanced partnership. harmonization. alignment and integration of projects
and programs at the point of health service delivery.
Impr ove human ca pita l a nd leader ship : This obj ective involves leadership development.
human resource planning. development and management including recruitment. retention and
performance management. community capacity development and technical assistance
management of the health sector. Add itional objectives for the hea lth sector in the plan period
are to improve community ownership. maximize resource mobilization and utilize as well as
improve the regulatory system of the health service delivery.
Imp r ove Commu nity Initiatives/Participation and Own erships: This obj ective
e ncompasses awareness creation and ensuring community participation in policy formulation.
planning. implementation. Monitoring and Evaluation and mobilization required to implement
health sector developme nt programs.
Imp r ove Resource Mobilization a nd Utiliza tion: This objec tive includes a proact ive
approac h in the mobilization of required adequate and sustainable resources from ava ilable
sources and eff ectively utilize the resources to ac hieve MDG targets.
Impr ove re gulator)' syste m: Th is obj ective is about ensuring safety in the del ive ry of health
services. products and practices; prevention of professional malpractices: enhancing
e nvironmental healt h activities: enforcing regulations and prevention of drug abuse;
6.2.3 T a rgets
The main targets for the health sector in the plan period are presented in the following table.
Table 42. GTP Target s for Health
Description of Target s 2009 /10 2014 /15
I. Decrease maternal mort ality ra te per 100.O(H) mothers 590 267
2 . Dec rease under Ilvc mor tality rate per lO(H) child ren 101 6S
3. Infa nt mo rtality rate (pe r 1000 live bi rths] 77 31
4. Increase family planning service (C PR ) (%) 32 66
5. Increase Penta 3 lmmunizctlon coverage (%) R2 96
6. Reduce IIl V/A IDS incidenc e (%) 0.2 8 0, 14
7. Increase T B Case Detec tion Ratc (%) 36 75
8. Red uce malaria incidenc e (%) 0.7 <0 ,7
6.2.4 Implementation St rategies
High priority health sector implementation strategies are to strengthen and scale up the Health
Extension Program. T he construction. expansion and improvement of health centres and
hospitals. including expansion of specialized hospitals will be acce lerated. Health posts and
role of private sector will be enhanced, the estab lishment of hospitals providing specialised
services improved and pharmaceutical supply and services improved by providing incentives
for local pharmace utical produc ing institutions. T he ongoing civil service program will be
strengthened. Public-private partnerships will be developed. Activities that ensure the
participation of a ll stakeholders will be scaled up.
CHAPTE R 7.
CA PACITY BUI LDI NG AN D GOOD GOVE RNANCE
Rem arkable res ults we re achieved over the past plann ing periods in terms of e sta blishing a
stable deve lopm ental and democ ratic gove rnmenta l system. These achieveme nts in good
gove rnance and the democratization process p laya key role in ens uring rapid and susta inable
develo pment. human and ca pita l reso urces deve lopment a nd for achieving susta ined eco nomic
development and Ethiopia' s MDO targets by 20 15. Thus based on the achievements and
c hallenges expe rienced so far, the GT P envisages to co nso lidate the capacity build ing,
democ ratizatio n and governance programs of the country.
7. 1 CA PACI T Y B UI LDI NG
7. 1.1 St ra tegic Directi ons
Strategic directions in the capaci ty building component incl ude a conce rted and integrated
effort to enhan ce the capacity of the ci vil service to imp lement government policies and
strateg ies e ffective ly a nd efficie ntly. Another major strategy d uring the GT P period is the
sca ling up of best practices in the design and implementatio n of c ivil service reforms in
Ethiopia. To implement this strategy. civ il service reform program activi ties to date wi ll be
rev iewed. and best practice s identified. packaged and sca led up. Three key strategic directions
are described be low.
Esta blish gove r nme nt str uct ures wit h s tro ng implem ent ing ca pa ci ty: Th is strateg ic
di rectio n will involve. during the plan period . the full implementation of the Ci vil Service
Reform Program at a ll levels of the government st ructure (federa l and regiona l) in orde r to
strengthen the refor m age nda . Civ il servants will participate in awa reness creatio n activ ities
that a im to deve lop who lly positive attitudes towards serving the public. ensure that they fully
understand gove rnment's policies and strategies. and are ca pable of implementing them.
Ove rall th is strategy a ims to ensure increased e fficie ncy. effect iveness. accountability and
transparency of public sector service de livery. In particu lar, the Balanced Score Card. a n
init iative of the c ivil service re form programs. will be implemen ted with comm unication
support to strengthen the work ing systems.
Ensu re tra ns pa re ncy a nd co m ba ting cor r u pt ion fr om its so urce: This strategic d irection
will involve initiatives to imp lement fully a system of asset d isclosure and reg istratio n by
every citize n with a view to recognizing and protect ing the ir rights. The tax admi nistration
will be improved through strengthening the tax info rmation system. enforce ment and public
ed ucation. An urban land registration syste m that ensures transparency and accoun ta bility.
tenure sec urity and efficie nt land and immovab le property market will be set up. Awa reness
will be crea ted through ed ucatio n o n ethics to encourage citizens to nurture a ze ro tolerance
for co rruptio n and rent seeking behavio ur. A system for transparent disclosure and reg istratio n
of assets owned by political leaders and public officia ls will be establ ished, The systems
action will be ta ken to enhance the partic ipation of women at Woreda and Kebele level,
engage and mobilize the public in local infrastructure deve lopment act ivities such as primary
school and health station construct ion, create an enabling environment for professional and
public associatio ns to enable them to protect and promote their rights a nd benefits. introduce
and make o perationa l inst itutio nal and organisatio nal mechan isms. in a ll spheres of
governmen t and for professional and public association s. to encourage and ensure full public
participation in the formulation and evaluation of govern ment policies. strategies and
deve lopment plans. support professiona l and public associations and organizations in their
efforts to build inter-o rga nizat ionalinitiat ives that promoting princip les contributing to
democratisatio n such as tolerance, respect for the rule law, etc.
Incorpor at e a nd Implement C ross C utt ing Issues in the C ivil Serv ice: During the plan
period. part icu larfocus will be given to empowering women through capacity building.
Affirmative act ion will be taken to increase the partic ipatio n of women in education and
training; this will increase the number of women who hold decision making posts. Gender
issues will be mainstreamed in the implementation of capacity building programs and in
monitoring a nd eva luatio n systems.HIV/AIDS aware ness creating programs will be designed
and implemented to increase the awareness of civ il servants a bout the eco nomic and social
issues involved a nd to increase the level of support for those affected by the d isease. including
orphans. In accordance with their con stitutio nal rights. an enviro nment cond ucive to
increasing the contribution of people with disabilities to the civ il service will be estab lished.
Aware ness c reation workshops and training sess ions will be arranged that increase the
understand ing of civ il servants abo ut the negative impact of cl imate change and global
wa rming and about population policy implementation.
During the GTP period. the ca pacity of outsta nding young professiona ls will be developed
and a system made operational to increase their participation in middle manageme nt decision
making positions. To this end the proportion of young graduate professiona ls in the civ il
service will be increased. With individual e fficiency as the botto m line. affirmati ve action will
be taken to e nsure that civ il se rvant appointments to deci sion making positions represent
proportionate ly eac h of Ethiopia' s nations and nationalities. In addit ion. part icular focus will
be give to increase the opportunitie s for education and training of minorities.
7. 1.2 Objectives
The GT P objective for capacity building is to ensure accountability and transparency in
governmenta l operations. working procedures and systems. In addit ion. emphasis will be
given to capac ity bu ilding that supports the implementation of government's policies.
strategies and programs.
7.1.3 Main Target s
To ac hieve the object ives set for ca pac ity building. the following ta rgets will be implemented.
Imp r ove the ca pacity of top lead ership : Leadership is crucia l in strengthening democracy
and building good governa nce, and in implementing government polic ies. strategies and
legislative frameworks and esta blishment of modern HRD systems. An objec tive HRD
measure s is to e nable c ivil servants to be more responsive to pub lic demand s a nd to
implemen t government policies, strateg ies and programs in a n effi c ient, effe ctive, t ransparent
and acc ountab le man ner.
Build the capacity of government institut ions : HRD, orga nisational deve lopment a nd
improving o perationa l systems and procedures are three pillars of capac ity building. Th is
section dea ls with the latter two a spects. Some of the main area s of focus in building the
capac ity of government instit utions will be to transform government agenc ies so as to
improve service de live ry, improv e the ir eflic iency and e ffe ctivene ss in providing pub lic
services, and enha nce implemen tation capac ities throug h improved working systems and
procedu res as we ll as establishing approp riate o rganisationa l systems. Surveys have shown
that the majori ty of go vernment agencies have already shown gains in efficie ncy as a result of
var ious intervention s in the last strategic planning period. However, the same surveys a nd
evaluations revea l that effectiveness is at its infanc y and much needs to be done to improve
the situation in the next planning period. The survey findings have established a base line and
it is intended that the e ffectiveness of a ll governm en t agencies \\" i11 be at a much higher level
at the end of the planning period. Tar gets set for the plan period will be measured aga inst
predeterm ined standards as a result of full sca le implementation of USC and of the monitorin g
and eva luation mechan isms estab lished.
Esta blis h a more tra nsparent , accou ntab le, efficien t & effective gover nmental fina ncia l
managem ent system : The obje ctive is to esta blish an effec tive. efficient, transpar ent,
accountabl e and modern governmenta l financial mana gemen t system. Th is will be achieved
through introd uctio n of lega l instruments, pro perly mana ging ex penditures, putting in place
cont rol syste ms. a nd emp loying skilled a nd co mpetent personnel. During the previous plan
period. various projects were designed and implemented to introd uce modern governmenta l
financial management systems. The GT P will furt her build on the success ful practices and
ga ins of the reform process to date .
Ensur e a trans parent and acco unt able system : The purposes of th is objective are to
institutiona lize systems ensuring transparency and accou ntab ility throughout the c ivil se rvice
so that the att itudes and actions of c ivil servants are directed toward s serving pub lic interests.
Th ere are indicat ions. follow ing the var ious interventions taken in t he last five year s t hat
transparency and acc ountabili ty exist to a de gree within the c ivil service. During the GT P
per iod procedures for access to info rmation. compla int handling, pre-noti fication of service
requir ements. and disc losure of pub lic information will be introduced to e mbed transparency
and accountability within the ci vil service. A re lated issue co ncerns co mbating rent seeking
attitud es and pract ices. Th e target here is to substa ntia lly red uce rent seeking attitudes and
prevent and co ntro l resulta nt pract ices/behaviours/ in the pub lic service and of ot her actor s.
The foc us will be on those re lated to tax admin istrat ion. urban land adm inistration,
procurement and othe r susce ptible areas.
Enha nce pub lic par t icipa tion : Publ ic partic ipatio n is cent ral to ensuring Citizens ow n
devel opment and to the success of good governance initiatives and to sustai n them. C itizens
previously, however, the part icipation ofC BOs needs further improvement and so, in the GTP
period, remed ial actions will be taken to strengthe n the degree and consistency of public
participation.
Build the ca pacity of woreda a nd kebe le councils: Building the capacities of woreda and
kebele councils by training staff and improving working systems is of paramount importance
in strengthening good governance and democracy at loca l levels. The focus during the plan
period will be to strengthen the implementation capacity of both urban and rural woreda and
kebele councils by establishing improved operational systems, enhancing the capabilities of
counc illors, deepening democrat ic participation, establishing transparent and accountable
systems, and strengthening internal controls.
Enha nce civil se rva nts ' aware ness of th e supremacy of law: This ca pacity building
objective aims to ensure that civil servants have good knowledge and understandi ng a bout the
importance of the supremacy of law and that the law is applied. A change of attitude among
civil servants is intended. Government agencies make a critical contribution to the fair and
proper implementation of laws enacted by the government. For this reason c ivil servants
should have knowledge of the content a nd purpose of laws and regulations that a re relevant to
them; they should be able to apply the m fairly and fully. Civil servants will in future be
supplied with a ll newly passed laws and regu lations, along with supporting documents. A
lesson learnt during the previous development plan is that even though pertine nt new laws and
regulations come into existe nce, c ivil serva nts have a habit of carry ing on their duties and
responsibilities as they d id before; it is business as usual. It is intended to change this situation
and ensure all civil servants are knowledgeable about and apply properly all laws and
regulations. T his will be achieved as by iden tifying those laws to be prioritized and creating
awarene ss among the civil servant with training and workshops. Priority areas are, among
other, the Civil Service Proclamation and those proclamations relating to education. hea lth,
the constitution, government finance, the budget proclamation, counterterrorism, broadcast,
freedom to information, c harities and soc iety's.
7. 1.4 Im pJeme nting St rategies
The implementation strategies here refer to enhancement of skills and knowledge of the
implementing agencies and agents, from lower to management level, wider application of best
practices, as well asensuring effective communication that mobilises public participation for
t ransformationa l reform. Experience sharing between different administrative levels will be
strengthened a nd the participation of stakeholders in the reform process enhanced. A well
d irected and organized mon itoring and evaluation system will evaluate the impact of the
reforms introduced.
All inclusive ca pacity building: Particular atte ntion will be given to increasing the
implementation ca pacity of all developmenta l stakeholders; in the governmental, private
sector and the public arena s. The comprehensive capacity building implementation package
includes integrated human resource development. organisational development and operational
systems working closely together.
Hence, a coord inatingtime a nd cost while implementing ca pacity bui lding programs.
institute wi ll be established to ove rsee the ove ra ll acti vities.
Harmonize capacity building activities with the reengineering reform program : Reform
is a co ntinuous process in the capac ity buildi ng program. There wi ll be unpredictable
o bstacles or, a lternatively, good o pportunities that a rise du ring impleme ntation of the capac ity
building program, which were not anticipated du ring the plan preparation. For thi s reason , it
is an imp lem entat ion strategy to watc h for and take advantage of o pportunities that ar ise a nd
add ress and resolve o bstacles duri ng impleme ntation.
Enhance reengineering reform communication s : Unless the reform program is supported
by a co mmunicat ion strategy, it w ill be diffi cu lt to create the support for ca pac ity build ing
reform among the c itizens, and in part icular amo ng the civil servants, t hat ensures the ir
e nthusiastic support a nd full co ntr ibution in implementing gove rnme n t's age nda. To add ress
th is issue, a strate gy has been designed to ensure the full comprehension at top manage ment
level as to the impo rtance of communicat ion for effective reform . During PASDEP, a high
level of support and ent husiasm for re form was ge nerated in soc iety ge nera lly, and in
impleme ntation agenc ies in part icular . During the GTP period, e ffo rt will continue to be made
to increase support further through the co mm unicating strategy; the r efo rm program will be
core to the da ily acti vities and tasks o f governme nt orga nizations.
Suppo r t the reform with I'C'F: To date a va riety o f activities have taken place to tran sform
gove rnme nt organ isat ions. These incl ude Business Process Reengineer ing a nd Balanced
Sco reca rd.The Business Process Reen gineering exerc ise is now fully o perational in most of
the fe deral and reg ional government inst it ut ions,while Balanced Scoreca rd is in the process
of be ing imp lemented. It is importa nt these r eform measures are supported with ICT in o rde r
to ensure the c ivil se rvice is effect ive, e fficien t, transparent an d accounta ble, as wel l a s to
increase t he co ntribution of c ivil se rvants to the tran sformati on process. In th is context, it is
planned to automate Business Process Reengineering a nd Ba lanced Sco recard by introdu c ing
new software, test ing and then fully implemen ting the syste m in a ll government age nc ies
duri ng the plan period.
7.2 INFORMATION AND COMM UNI CATION TECHNOLOGY DEVELOPMENT
7.2.1 St ra teg ic Directions
The strateg ic d irecti on s to be pursued for enhancing informa tio n and communicatio n
tec hnology devel op ment in the cou ntry are development o f information comm unication
techno logy infrastruct ure, ICT human resources and the lega l and sec ur ity syste m related to
ICT. In add itio n, deve lopme nt of e-gove rnance thro ugh use of IT, enhanc ing role of private
sector in ICT, and pro motio n of IT research and de velopment will rema in strateg ic d irect ion
of the sec tor dur ing GT P period.
7.2.2 0 bj ectiycs
as organ izat iona l a nd human resource ca pa bility. Expansion and development ofi CT will also
be encouraged by developing and putting in place un iform procedures, standardization of the
tec hnology applications and improving the effi ciency and effectiveness of the human and
financial resources available for ICT.
7.2.3 Major targets
During the GTP period. the maj or targets for the lCT sub-sector are to develop human
resources for ICT to support overall develo pme nt of the sector. Development research will be
conducted to enhance the contribution of lCT to economic growt h and soc ial development. A
suita ble policy, legal and regulatory env ironment will be created that contributes to poverty
eradication and expedites the success of deve lopme nt objectives. A uniform set of proced ures.
standards and quality contro l mec hanisms will be deve loped and put in place for the lCT sub
sector. The use of human and financial resources will become efficient and effective. Finally.
a key target is to prevent and fully contro l illegal activities and there by ensure the security of
the ICT syste m.
7.2.4 Implementation Strategies
The first strategy is to promote the development of ICT infrastructure and services in
connection with higher ed ucation institutions so as to ensure susta inability. quality a nd
releva nce. The private sector will be encouraged to enhance its role in the sector, while a n
lCT Park will be developed in Addis Ababa. Other implementation strategies that have been
designed to ac hieve ICT objectives by the end of the GTP period include: develop and
standardize the ICT infrastructure a nd services; improve the nationa l a nd regional states
information excha nge systems by installing broadband internet networks; provide ICT
services to beneficiaries at compet itive prices; support IT professiona l needs in se lected
economic sectors within the country, fac ilitate the provision of computer education and
tra ining to soc iety at a large sca le; create an enabling e nvironment that supports increased
innovation, creativity a nd professionalism of ICT professiona ls; enact legal instruments
relat ing to ICT resources and services development and ensure that these are incorporated into
other development polic ies, strategies and programs; revise the legal and regulatory
frameworks, in collaboration with national and inte rnational stakeholders, to improve and
expand ICT development; put in place management and quality control directives and
standards that regulate the supply of lCT services and products; introduce the disposition of
alphabet s of national languages and make use of the Unicode Technology; provide support
and foster ICT research a nd studies; develop the informatio n Kiosk; and e ncourage
development of a culture of internet use for various economic and socia l activities and create
e nabling conditions to increase computer ownership.
7.3 JUSTI CE SE CTOR
7.3. 1Strategic Ilirections
The overa ll strategic direction for the j ustice sector is to contribute to establishing a stable
understand ing and aware ness of con stit utiona l issues will be enhanced. Customs and
traditions of peaceful reso lution of disputes will be given specia l emphasis and will be applied
widely during the GTP.
7.3.20bject ins
The objec tives of the j ustice sector are to strengthen the constitutiona l system and ensure the
rule of law. make the justice system more effec tive, e fficient and accessible as well as more
independent. transparent and accountable. In add ition the GT P aims to consolidate the process
of creating a democ ratic. stable and strong federa l system that ensures the peace and security
of cit izens.
7.3.3 Ta rge ts
Human r esour ce capaci ty development: The new c urriculum for Bachelor of Laws (LLB)
deg rees will be fully implemented. Teaching materials will be prepared for the new
curriculum and wi ll subsequently be eva luated and upgraded regu larly. An a ppropriate
number of professionals will be trained for the ir second and th ird degrees and a system wi ll be
esta blished to th is effect. Training will be based on needs assessment and pre-service training
will be given to newly appointed prosec utors and jud ges. Short term training will be provided
at least once a year for j udges and prosecutors serving at all levels ranging from Woreda up to
Federal Supreme Cou rts. so as to enhance their capacitie s and to address the ir shortcomings
related to att itude, knowledge, eth ics a nd skill. The capac ity of other professiona ls in the
j ustice system will be enhanced. To th is end. the federa l a nd regional level tra ining institutes
will be well equipped, while researc h works that help build the capacity of professionals
working in the ju stice sector will be encouraged. Ethical standards will be set a nd e nforced for
practic ing lawyers and attorneys.
Imp r ove th e tran sparen cy and account ability of th e ju stic e syste m: A system to increase
transparency and accou ntability wi ll be fully established. A mechanism will be estab lished to
evaluate the effective ness of the professionals. Ethical princ iples will be made know n and be
implemented fully by the professiona ls involved. Complaint handl ing offices will be
strengthened. An effe ctive and cost saving resource manageme nt system will be estab lished
and implemented. Strong monitor ing, eva luat ion and support systems will be estab lished.
Independence, tran sparency a nd acco unta bility of th e judi cia ry : A system will be
established to ensure acco untabil ity, wh ile guarantee ing the jud ic iary' s independen ce. The
appoint ment of judges will be based on competence and will ensure fair regional and gende r
representation. The performance eva luation system for j udges will be expanded, continuity of
the eva luation system will be ensured, and the screening process will be improved. A system
will be estab lished for the speedy resolution of discipl inary matte rs that are brought before the
jud icia l administrat ion co uncil.Improvements will be made based on consultations with and
cont ributions from service users and stakeholders. The hearing process in the justice system
will take place in full in open courts. Cessatio n dec isions and laws wi ll be made avai lable in
time for j udges.
lit igants wi ll be provided with adequate legal counsel, a id and translation services. The
number of j udges will be increased to ensure that the number of ju dges corresponds to the size
of the populations they serve.
Rehabilitation of prisoner s: National prison inmate ha ndling and protection standards will
be prepared and implemented to ensure appropriate rehabilitation of prisoners. All prison
inmates will be encouraged to become productive a nd law abiding citizens by attending civic,
ethics, academic a nd professional training sess ions. Inmates will be helped to increase their
income by taking part in developmental works. Their human rights will be ensured. Provision
of/for inmates' accommodation, health, nutrition, communications and recreational services
will be improved. A system will be estab lished and implemented to follow up the integration
of inmates in society released after serving their terms. Efforts will be made to improve the
public image of prisons.
Strengthen the federal system : The values of peace and tole rance will be promoted and the
capacity to reso lve disputes peacefully will be strengthened. Mechan isms will be established
and implemented to detect and prevent confl icts before they occ ur a nd resolve conflicts that
have a risen before they result in harm. In this respect it is noted that, the capacity to resolve
d isputes permanently is dependent on research related to conflicts. Measures will be taken to
enhance the values of tolerance and respect between religio us institutions and their followers.
Solutions to religious confl icts will be sought and implemented through research which will
be conducted to identify sensitive religiou s issues. The awareness of the leadership at all
levels, and that of the population, of issues relating to interstate relat ions and federalism will
be significantly enhanced. A system will be established to ensure permanent
inte rgovernmental agency, as we ll as federal and regional state, relations.
Increase public participation : Partic ipat ion of the j ustice system staff in the preparation and
evaluation of plans as well as on other necessary issues will be strengthened (internal
participation). Measures will be ta ken to improve and enhance the partic ipation of
stakeholders in issues related to justice (externa l public part icipation).
Improve sector communication : Public relation activities will be carried out to raise
sufficiently the awareness of governmenta l agencies and of the public a bout the performance
of the j ustice organs. The preparation and publication of professional magazines within the
ju stice organs will cont inue.
Enhance the use of l eT in the reform process: A national integrated ju stice information
system will be established and put into use. Actions will be taken to support the court system
with information communication technology which will be extended to all courts in the
country. A public prosecutor information system will be established and put into use. All
work processes and offices will be modernized by developing appropriate software and a
databa se for file and record keep ing. Information about inmates will be supported by ICT and
there will be maximum utilization ofI CT in all the training centres.
Ensu re the mainstreaming of cross cutting issues in justic e sector: The j ustice sector will
devise and implement a mechanism whereby the rights of women and children as well as of
7.3.4 Implementation Strategies
To ach ieve the objec tives and ta rgets established for the ju stice sector, during the GT P period.
a number of implementation strategies will be adopted. These are summar ised in the
following paragraphs.
The reforms required will be supported by specific initiative s to build implementation
capacit ies of the agencies involved. The law requ ired will be drafted, codified and
consolidated, prior to adoption, based on proper research. At all times the sector will render
e ffective, e ffi cient, accessible and predictab le j ustice to a ll and ensure the e tlic ient and
effective execution of court decisions. Strategies will be implemented that preve nt crimes that
endanger the constitutional system and public interest and, where such crimes are com mitted,
the perpetrators will be brought to ju stice. Prisoners will be helped to become law ab iding,
skilled and to respect the rights of others. An e nvironment conducive to ensuring last ing peace
and respect between religions and religious institutions will be created. Good gove rnance and
deve lopment will be supported by conducting legal researc h, raising the knowledge and
awareness of the public on human rights protection and strengthening the rule of law.
Strategies will be pursued that ensure that the rights of women, children and persons that live
with lII YI A IDS, as they are recognized by the constitution and international agreeme nts, are
respected, that they participate equally in and benefit from development. The publics' respect
for law and order and support of law enforce ment activities will be gradually raised by raising
overall awa reness of legal issues. Laws will be disseminated more wide ly and more
etliciently in order to increase public knowledge and a wareness of the law. The role of civic
societies a nd stakeholders in good governance a nd development activities will be enhanced. A
system will be established to ensure that attorneys have the requ ired professional capability
and ethics a nd to stre ngthen their role in the administration of j ustice. The registration of legal
practitioners will be fully implemented .
The values of gender equality will be promoted so that women partic ipant more equally in
good governance and deve lopment, and the capacities of women in the justice sector are
enhanced. Professionals in the j ustice sector will be made more aware of the nature of
HIY/AIDS and its transmission, so as to protect themselves from HIY/AIDS, ensure that
sufferers get the appropriate help in a manner that respects their human rights, and support
implementation of health policy that is focused on prevention.
7.4 DEMOCRACY ANll GOOll GOYERNANCE
7.4.1 Strengthening Democratic System
7.... 1.1 St r a tegic Directions
During the GTP period, the strategic d irect ions to ensure democratic governance in the
country are to adopt and effectively enforce laws that support democracy and good
governance, conduct free. fair and democratic elections a nd ensure the human rights of all
freedom of the press and the rights of c itizens and freedom of i nformation will be ensured.
Good governance and democratic instit utions will be strengthened and deepened.
' .... 1.2 Objectives
The ob jec tives are to strengthen democratisation and good governance and consolidate the
existence o fa federal democ ratic politica l and economic community.
' .4.1.3 Main Targets
Strengthen Councils and institutions accountable to them : A number of activities have
bee n ca rried out during the previous plan period to stre ngthen these institutions, enha nce the ir
role in the process of building a democrati c culture, and build the capac ity of sta ff involved
through short-term training and ex perience sharing. During the GTP period these activities
will be co ntinued a nd, more speci fica lly, the capac ity of these institutions wi ll be strengthened
through training, system and organ izat iona l development. In partic ular, to strengthen the
parliame ntary system of the gove rnme nt, it is planned to build the ca pac ity of the membe rs of
the House of Peoples Representat ive and House of Federation through training and with
experience sharing workshops and by improving the working procedures of the two counci ls
with application of infor matio n technology and network infrastructure for ease of informatio n
management a nd use to improve deci sion making.
Awareness creation about human right s, democracy and the constitution : During the plan
per iod the federal House of Peoples' Representative and House of Federat ion will conduct
broad based awareness creatio n worksho ps and training seminars for students at pilot schoo ls,
base d on the c ivic educat ion, using methodo logies to encourage democ ratic culture such as
the c hildren's parliament instrument, and for pastora lists, ma inly in co nflict prone areas, and
including wome n a nd youth soc iety gro ups, so as to create awarene ss about democratic
c ulture.
Ensure a federal democratic political and economic community : The following act ivities
will be undertaken in order to ensure the rea lizatio n of this o bjec tive. A number of initiatives
will be unde rtaken during the GT P period that stre ngthen the relationship between nations,
nationalities and peop les such that the fede ral democratic arrangeme nt in e ffect leads to better
integrated political a nd eco nomic community in the country. The House of Federation will
encourage extensive research on democratic federa l governance and make use of the findings
to strengthen national consensus around the obj ect ive of ensuring one eco nomic and po litica l
community. The docum entat ion section of the House of Federat ion wi ll be equipped with
research materials to fac ilitate proper decision-making by the House. The grant sharing
formula will be revised and improved to crea te balanced and equitable regiona l development.
An ea rly wa rning syste m will be put in place to prevent co nflicts. a nd indige nous conflict
resolution mechanisms used to mob ilize loca l communities.
Provide laws and directives to create an enabling system to ensure democratic
representation and accountability to public resource: The House of Peo ples'
Representative a nd regional co unterparts will issue acts and directives, that have bee n
participatory ove rsight of the counc ils is expected to pla ya crucia l role in ensuring that
government policies and programs are implemented as per the plan a nd that measures are
timely taken to rec tify any shortfa lls. The federa l and regional councils will secure media
airtime. develop user friendly websites, publish and increase the circu lation of press re leases
and booklets. in order to address the public a nd collect public percept ions of democratic
institutions and the democrat ic process. These initiatives will a lso e nhance the participation of
federa l and regional counc ils in the decision making process. Advocacy Centres will be
established to reac h out to the public at lowe r adm inistrative le vels a nd make accessible
minutes. reports of the counc ils. annual plans and other related informatio n.
Enha nce public p ar tici pa tion : Regional,Woreda and Kebele councils will initiate activities
to increase public participation in the development planning and democratizat ion process. The
participation of women in councils will be enhanced to achieve better politica l part ic ipation
and involvement in decision making. The capacity of the council members will be improved,
through training a nd exper ience sharing study tours. The part icipation ofCBO s and the public
at large in development planning. implementation and monitoring will be strengthened.
Directives and laws that will support the functioning of CBOs and professiona l associations
will be put in place.
7.... 1... Im plementa tion S trate gies
Strateg ies that will be adopted to implement the GT P, so as to ac hieve the objectives and
targets for democracy and good governance described above, are to build the capac ity of
institutions. ensure the legislative assembly (law making process) is effective. and the
cod ification and conso lidation of laws is based on research and studies. The delivery of
effective and effic ient j ustice services will be enhanced and the acco untab ility of the judiciary
e nsured. The ca pacity of prisoners will be developed and their human rights ensured. Peace
and tolerance between different religious groups will be established. Democratic governance
will be supported and strengthened by conducting legal and j ustice system research. ensuring
the supremacy of law and cond ucting awareness c reation among the citizen about human
rights. The accessibility and disse mination of printed and electronic co py of constitutions.
laws and acts will be strengthened and increased. Participation of CBOs and stakeholders in
the development process will be strengthened. The legal protection and rights of children.
women. peop le living with HIV/AID S and disabilities will be ensured. A mechanism will be
c reated to enhance the professiona l ethics of lawyers through ca pacity building. Gende r
equality wi ll be ensured and awareness c reated among staff of democratic institutions about
HIV/AIDS prevalence and incidence.
7.4.2 Good Gove rna nce
7....2.1 Str a tegic Dir ecti on s
Good governance plays a key role in realizing the governme nt' s objective of eradicating
poverty by enhancing public trust and ensuring e ffi cient a llocation of public resources for
introduc ing i nfo rmat ion tec hnology systems, enhanc ing transpare ncy, develop ing cada stral
land reg istra tio n system, imp roving the tax informatio n system, taking lega l measures aga inst
those gu ilty o f co rruption and using t hese measures as an input to increase the awa reness o f
t he public .
In this context, a num ber of act ivitie s w ill be carried out in t he plan period, in co llabo ratio n
w ith the relevant stakeho lders, incl udi ng c ivic educa tion a nd measures to develop a ze ro
to ler ance o f co rruptio n amo ng the soc iety. Add it iona l activ it ies in it iated wi ll be to stre ngthe n
the syste m to track cor ruption in soc iety and protect public reso urce s. A cit izens'
identificat ion inform ation system w ill be put in place, a s w ill systems to register own ership o f
land and estab lish urba n spatia l plans. Furt her, the pub lic w ill be made aware of the need to
pay tax as di rected by law and regu lat ion at the time requi red and o f the import an ce o f taxes
in fi nanc ing the GTP and its obj ect ive s.
' ....2.20bjectin s
The objec tives o f good gov erna nce are to enhance transparency and acco unta bility so that
th ere is zero to lerance for corrupt ion. Goo d governance initiati ve s w ill be suppo rted by
information tec hno logy and ex pansion of ci vic educatio n. Th e public service deli very sys tems
w ill be modernized made effic ient, fa ir and transpar ent in thei r de live ry.
' ....2.3 Majo r Targe ts
A GTP good go verna nce target is to deve lop a system, using modern info nn ation technology,
to reg ister the wea lth o f gove rnme nt autho rities and civil servants and track and ta ke lega l
measures where wea lth from un identifiable sources is detected. In add ition, the aw areness o f
the public wi ll be en hanced w ith the a im that there is zero pub lic to lerance o f co rruptio n and
rent seeking. Ethic s ed ucation w ill he lp to increa se pu blic co llaboration with gove rnme nt in
th e fi ght agai nst corruption. A n anti-corruption strategy w ill be devel oped and impleme nted in
all go vernme nta l o rga ns. A n enabling mechan ism w ill be put in place to fight c orruption. The
know ledge and understand ing of tax payers w ill be increased through developm ent and
implemen tat ion of ICT . A c ustomers' service del ivery charte r will be esta blished. A mod em
urban land mana gement syste m w ill be developed and the urba n spatial plan ning system
imp roved to ensure t hat la nd is used eco nomically and in a tra nspar ent and accountable
manner. Basic informat ion abo ut c itizens w ill be de velo ped a nd implemented. Governm ent' s
financia l management systems w ill be st rengt hened. The a ud it system and regulation
app licable to the privat e sec to r w ill be st rengthened.
' ....2... Im plemen ta tion Stra tegies
Goo d gove rna nce im pleme ntation strateg ies are to g ive priority to t he fight aga inst co rruptio n
and enfo rce the law o n co rrupt pract ice s vigorou sly in co llabo ratio n w ith t hose age ncies
invol ved w ith tax ad ministratio ns and land managem ent, impleme nt tran sparent o perationa l
procedures for the ta x and land management systems , bu ild the ca pacity of governme nt' s
implemen ting agencie s through the hu man resour ce devel opment and info rmation technology,
7.5 MEDIA BROADCAST AND COMM UNICATION
7.5.1 Media Broadcast
7.5. 1.1Strategic Directions
The strateg ic directions to be pursued in broadcasting of informatio n for the c itizens are to
increase med ia broadca sts in typ e, number, qu al ity and language, to increase geograph ic
coverage, and put in place a regulatory framework for med ia broadcast.
7.5. 1.2 Objective
The GT P o bj ectives for med ia broadcast are to satisfy the public demand for mass media
information throu gh effec tive capacity development and implementat ion o f the regu lato ry
frameworks.
7.5. 1.3Major Targets
Expand information provided by mass media : The target is to expand media coverage and
services prov ided so as to increase benefits to the public. Med ia broadcast applica nts will be
licensed so that a sa tisfacto ry service is provided throug hout soc iety. The ex ist ing laws and
procedu res w ill be strengthened to enhance media ex pan sion. Communicatio n that increa ses
custome rs' partic ipat ion w ill be encouraged. The capacity o f med ia profe ssional s will be
st rengthened a nd the use of ICT will be ex panded.
Media inspection and support : Operat ing systems wil l be improved and legal di recti ves
d rafted and adopted that ensure that laws applied to the press are enfor ced and the pu blic is
satisfied by the quantity and q ualit y o f information a nd media broadcast ing se rvices provided.
The ca pacity o f the med ia w ill be deve loped to enabling them to follo w med ia laws and
procedures. A transparent o perat ing system will be develop ed, with man ua ls and standards,
for med ia inspect ion a nd suppo rt. Part icipat ion of cu sto mers and the pub lic at large, and
sha red ownership (com munity broadcasting) ar range me nts w ill be encou raged.
7.5. 1." Implementing Strategies
Mass media expansion : Med ia co ve rage in the country is. ge nera lly, at lower leve l. Many
commu nitie s do not rece ive satisfactory medi a service. For th is rea son , the governme nt
mai nly focuses on improvin g accessib ility and di ver sity o f medi a serv ices. The
implemen tation strategy is to expand and increase med ia in number, kind and transmi ssion
coverage and to ensure the widest possible public be nefit from med ia broadcasts
Media inspection and support: The co untry ' s media services have the ir lim itation s in term s
o f de livering qu ali ty services and sat isfying pu b lic interest. Thu s the second strategy is to
improve suppo rt to broadca ste rs and ensure they operate w ithin the reg ulato ry framework
provided.
nationa l consensus and builds a pos itive image of the country will emphasise the positive
aims and achievements of the GT P by showing to the outside world that Ethiop ia is mak ing
significant improvements in soc io-economic develo pment and good gove rnance . The strateg ic
d irection focuses therefore on building nat io nal consensus and thereby also on stre ngthening
public part icipation in the developme nt and gove rnance processes. and on improving the
image of the co untry.
7.5.2.2 0 bj ccth 'cs
The ob jectives of government communicatio n are to mobi lize the public to parnc rpate
actively in the implementat ion of the GTP. create a politica l environment cond ucive to greate r
and better international awareness abo ut Ethiopia' s achievements and support the co untry' s
deve lopmenta l and democratization processes. Further objec tives are to significantly enhance
the country' s communication and media services. support the objectives of nat ional consensus
and build a positive image of Ethiopia.
7.5.2.3 Targets
A more conducive env ironment will be created for the partic ipation of the public in the
implementation of GTP and thereby a lso in the realization of the vision of Ethiopia. The
communicatio n ta rgets will a lso aim to create consensus amo ng the public with regard to the
signifi cance of ensuring the rena issance of Ethio pia, basic co nstitutio nal and po licy matters as
well as o n the sig nificance of the GTP. It is a imed a lso at effectively and acc urately proj ecting
the politica l, socia l and economic ac hieve ments of Ethiopia. Fina lly the capac ity of media a nd
art istic institutions will be built so as to effectively implement the communication plan.
7.5.2.4 Implementation S tra tegies
Initiat ives that will be take n to rea lize governme nt's communication objectives during the
plan period are to significa ntly improve the coverage of the med ia across the country by
expanding telev ision, radio and inte rnet services and supporting infrastructures.
Communication i nfrastructure will be improved by establishing fibre optic based netwo rks
and faci lities o n a large scale, upgrading the ca pacity of the personnel engage d in the print
media, underta king capacity enhancing activities for top manageme nt and 1 00\"er level media
personne l at the feder al and regiona l levels; and ens uring the private secto r is the main
benefic iary of the interventio ns.
The ca pacity of the communication sector will be upgraded by improving organisatio nal
arrange ments as we ll as the skills a nd ca pacity of the personnel involved, so as to ensure
positive and e ffe ctive communication. The awareness of the public at la rge will be enhanced
to facilitate the nationa l co nsens us building process. Innovative approac hes will be employed
to achieve thi s purpose and to speed up the tem po of deve lopment. An internationa l
symposium will be organised, after the GT P has bee n in implementation for two years, to put
forward a positive image of the country and of the achievements of the GT P to that point.
CHAPTER 8.
CROSS CUTTING SECTORS
8.1 G ENDER AND C HILD RE N'S AFF AIRS
8.1.1 Strategic Direction
Wome n make up half of the co untry's po pulation a nd the gove rnment has taken a range of
measure s to increase their participat ion in poli t ical .soc ia l and economic a ffairs. Th ere were
signifi cant achieve ments towards ge nder eq uality and the empow erment of women in severa l
areas d uring the PASDEP pe riod. Et hiopia has rat ified a numb er o f internat io nal and reg io na l
conve ntions an d protocol s o n women and child rights. A policy has been adopted and
implement ed to institutiona lize wo me n' s a ffairs in all federal a nd regional age ncies. Th e new
family law has been endorsed and the pena l code a mended for the benefit of women. Much
has been ach ieved in the educatio n and hea lth sector s to enhance the partic ipation a nd
empowe rment of women, as we ll as ensure that wome n benefit eq uitably. Women' s
parti cipa tion in dec ision maki ng processes has been increas ing in a ll spheres o f go vernme nt.
In the economic secto r, the ir parti c ipat ion in ag ricultural packages, cr edit and coo peratives
services has increa sed. In urba n a reas the particip at ion o f women in sma ll enterprises,
commercial and co nstruction unions, a nd micro fi nance instituti ons has al so ex panded. These
are a ll signifi ca nt resu lts and efforts will be mad e in the GT P period to sustain and improve
o n these ac hieve me nts.
It is wide ly ackn owledged that children are mo re vulnerable to man-ma de and natural risks.
The government too k measures during the PASDEP period to strengthe n and protect
children' s wel fa re and rights. A nat iona l children's plan o f act ion and an a lternative child care
and support guide line were prepared. At federa l a nd reg iona l levels child rights en fo rceme nt
committees have been set up. A national coa lition force has been established to ad dress the
issue of children at risk. A nat ional act ion plan has been designed and nat ional committees
esta blished to protect children from sexua l assa ult and labour abuse . The fa mily law and pena l
code have been am ended to increase and ensure the safety and security of child ren.
In the soc ial sector , c hildren in part icul ar benefited from the ex pa nsion of ed ucation and
healt h serv ice s.Demonstrat ion children's parliam ent s have been established a nd child ren are
increasingly exerc ising their rights. Actio n wa s tak en to coo rd inate a nd integrate the wo rk of
go vernme nta l and nongovernmental organizat ions to support and ca re for orphans and
c hildren at risk. T he strategy now is to susta in and co nso lidate these ach ievements in the GT P
per iod.
8,1.2 Objective
The ma in o bjectives for ge nder de velopment duri ng the plan period are to ensure wo men' s
act ive participa tion in the co untry' s economic and socia l development as we ll as polit ica l
8.1.3 Ta rge ts
The foll owing main targets a re to be achieved during the GT P period.
Ta ble 43. GTP Targe ts for Gen de r Developm ent a nd C hild re n' s Affa irs
GTP Tflfge t.\"lor Gel/der de~'e Jop ~" ~" ~" ~t ~_""':'_""':' ~_~ :-__ :-_~'"
I . Increase the number o f women entrep reneurs that graduate from operat ing micro e nterprises to small and
medium sca le bus inesses.
2 . Increase the number o f women who receive trai ning in management and entrepreneurship.
3 . Increase the number of women bene ficiaries of cred it and sav ing services.
4. Reduce the rate of abduc tion. early marriage. and female gen ital mutilat ion.
5 . Increase the particip ation o f women in decis ion making process .
GTP Turget.\" ur Childre n .\"affairs
6 . Ma instream child ren' saffairs in all sec tor s.
7. Support and care min vulnerable and children at risk.
K. Introd uce community centred care and support initiative s lo r c hildren at risk.
9 . Redu cethe rate {Ifsex ual assa ult and la bour ab useof ch ildren.
10. Red uce illega l ch ild migration and traffic king.
8. 1.4 Impl ement ati on St rateg ies
Th ree key implementatio n strategies are identified with regard to women a ffairs. The fi rst
concerns strengthening wome n assoc iations and organizations. Secondly. a more conducive
environment will be created fo r women to more actively pa rticipate in and benefit from
devel opment a nd governance progra ms through their assoc iations and organizations. Fina lly,
fo r the pa rticipation of and benefits to women to be effective and susta inable, eff ective
coordination of women' s assoc iatio ns a nd organizatio ns a nd a ll other actors is critica l. In th is
waya n accountable monitoring mechan ism will be esta blished such that women' s affairs are
mainstreamed and accordingly exec uted in a ll sectors. Implementation strategies for
c hildren' s affa irs focus o n prepar ing and implementing a comprehensive children' s policy.
promote community based ca re for vulnerable and children at risk. a nd taking measures to
red uce child ab use in the la bour market. sexual assault a nd c hild traffic king.
8.2 YOUTII AND SPORTS D EVELO PM ENT
8.2. 1 St ra tegicIlir ect io n
Pol icy directions for youth focus on enhancing the part icipatio n of youth in democratic
gove rnance. economic and social initiatives and ensuring yo uth benefit from the resultant
outcomes. For sports deve lopment pa rticula r foc us will be give n to promoting community
participat ion in traditiona l and modern sports and strengthening the support given to high
performing athletes so they are able to produce and susta in good results at regiona l and
inte rnationa l events.
8.2.3 Tar get s
The main targets fo r the plan period are presented in the following ta ble.
Ta ble 44. GT P Ta rge ts for Youth a nd Spo r ts Developm ent
GTP Tflfg et.\"l or YOlII" d e l 'elo p"~m~e~,, ~/ ~'7""""':" "'"
I . Increase the number of youth centres at worcda level .
2. Mainstream youth development programs in other" development programs.
3. Increase the number of youth voluntee rs.
G TP Tflrget.\ f! Jr Youth del'eloP.ment
4. Strengthen then technical, material and financial capacities of sport associations and committees at
different levels.
5. Expand sports fields and training centers.
6. Increase the number of private investors in the S P0 rL ~ development. and thereby enhance community
participation.
7. Increase the number of managers and coaches in different sports.
8. Increase the number of tournaments and of participating athletes.
8.2.4 Im plem en tation St r at egies
Implementation strategies for yo uth deve lopment include strengthening of youth associations
and orga nizations and the ir a ll rounded partic ipat ion. Awareness creation and introducing
youth to information and knowledge exchange act ivit ies. and e ncourag ing youth
e ntrepreneurship will a lso be part of the strategy. Data bases relating to yo uth issues will be
built a nd research concerni ng youth undertaken. Coa litions will be formed and coope ration
with stake holders initiated for the implementation of the yo uth package.
The key implementation strategy for sports development is to create a n environment
conducive to the empowerment and participation of community organizations in sports
act ivities. Women a nd disabled people will be encoura ged to part icipate in sports in the ir
work place s, dwe lling places and schools, accord ing to their sports prefer ence. The
government will, at a ll leve ls, support restructuring of the management of sports so as to
increase community ownership and partici pation and make sports activities more financia lly
self sufficient. Efforts will be made to increase the number and quality of sports specialists
and experts. The participat ion of rura l communities in traditi onal spo rts will be enhanced and,
lastly, support will be given to loca l production of sports wear a nd materia ls.
8.3 HIV/AIDS PREVEN TION AN I) C ONT ROL
8.3.1 St ra tegic Dire cti on s
HIY!AIDS presents a c hallenge to our development and pove rty reduction endeavours. The
government responded to the potentially complex impacts of the disease by introduc ing. in
HIY/AIDS. In additi on it he lps to integrate private and go vernmenta l efforts to susta ina bly
raise resou rces to support People Living wit h HIY/A IDS.
The main strateg ic directions to r the HIY I A IDSprevent ion and control program a re to expand
HIY/AIDS prevention activities. provide an a ll inclusive and good quality healt h ser vice for
HIY/AIDS and re lated diseases. red uce vulnerab ility to lII Y/AIDS. strengthen the systemic
collection and use of da ta relating to I-I IV/A IDS. increa se the acce ssibility of m V/AIDS
related healt h services. and provide spec ia l care and protection for HIY/AIDS patients and
fami lies.
8.3.2 Objectives
The main objectives for HIY/AIDS prevention and control during the GTP pe riod are to
reduce the HIY/AIDS incide nce and preva lence rate. sic kness and death rate and thus the
impact of HIY/A IDS on society as a whole.
8.3.3 T a rgets
The targets for HIV/AIDS prevention and control during the plan period are indicated in the
following tab le.
Ta ble 45. GTP Ta rgets f or IIi V/AID S Prevention a nd Co ntro l
Descriptio n of Tar get s 2010/11 201-4115
I. Red uceII IV/A IDSincidence(%) 0.211 0.14
2. Awarenes s rate about 111VIAIDS among 15-49 years old persons (% ) 22.6 110.2
3. Adults on a ntiretrovira l thera py (no) 246.347 41l4.96 6
4. Provide voluntary counselling and testing services (min ) 9.2
5. Childre n on antlrct rovlral therapy treatment (%) 95
8.3.... Impl ementati on St ra teg ies
Implement ation strateg ies fo r HlV/A IDS prevention and control are to build capac ity for
preve ntion and co ntrol. strengthen community partic ipation. and create awareness among the
populat ion as a whole. In additio n. lil Y/AI DS prevent ion and control act ivities will be
expanded a nd spec ial attent ion will be give n to the vulnerab le in the society. Gender equality
will be e nsured. harmfu l trad itional practices abo lished and the stigma and discrim ination
reduced. The accessibility of HIY/A IDS prevention and contro l services will be increased.
Voluntary testing and counse lling service services will be ex panded and treatment of sex ually
transmitted diseases and co ndom distribution given due emphasis. The safety and protection
of persons who come into contact with blood will be ensured and immed iate treatment
provided when they are exposed. The quality of and extended treatment and care se rvice for
people living with HIY/AIDS will be stre ngthened and ca re and support provided fo r
fIIY!AI DS orphans.
soc iety. The programs impleme nted will mainly be community and family based, but
governmenta l and non governmenta l entities will a lso play their role.
Progra ms that aim to benefit the elde rly need to ensure their dignity, freedom and social
status. Such programs will also focus on providing ca re and support for the elde rly in the
community and hence maintaining clo se family and social ties. The programs for peop le with
d isabilit ies aim to prevent disabilities, prov ide educatio n and training, rehabilitation services
and ensure equa l access and o pportunities fo r peop le with d isabil ities. Measures that
strengthen positive attit udinal and behavioural changes of communities with regard to
d isabi lity will be taken.
8.4.2 Obj ectives
The main objectives are to provide an all inclusive a nd parnctpatory socia l welfare and
sec urity system that identifies a nd responds to social welfare cha llenges, expand s care and
support programs for the mentally i l l, disabled and the elderly and contributes overa ll to
devel opment activit ies.
8.4.3 Targets
Two ma in targets for social welfare are set in GT P . The first concerns establishing a standard
social welfare scheme involving government. non-gove rnmental agencies, elde rly and peop le
with disabi lities in the preparat ion and del ivery. The second target refers to increasing the
covera ge of soc ia lsecurity services overa ll based on the envisaged scheme. Based on this
standard soc ial welfare system, the number of disabled people who benefit from physical
rehabi litation a nd support, of peop le who have access to socia l welfare, and of people who
rece ive capacity development and awareness creation training, will be increased through the
coordinated efforts of the co mmunity, peopl e with d isabi lity,the elderly, the governme nt and
non - governmenta l agencies. Implementation Strategies
All implementation plans need to focus main ly on community based we lfare systems. From
th is perspective, implementation strategies for socia l welfare during the plan period are to
c reate a knowledge and experience sharing env ironment supportive of the e lderly and he lp
them to contribute to the country 's deve lopment processes. Soc ia lwe lfare aut hor ities will
collaborate c lose ly with and coordinate soc ial we lfare programs to care and support the
elderly with stakeho lders who are engaged in these programs. NGO care and support
programs for the elderly will be encouraged. Disabled people will be encouraged to
participate fully in economic, politica l and socia l developmen t activities. Spec ial attention
will be given to children with spec ial needs and assistance will be prov ided to help them start
and continue schooling. Governme nt will take steps to ensure that people with disabilities
have equal jo b opport unities and participate in economic develo pment without discrimination
or stigma. Measures that minimize barriers to the movement of peo ple with disabilities. for
instance in schools, homes. recreation centres and hea lth fac ilities wi ll be take n. Spec ial
support for peopl e with disabiliti es' menta l and physical needs will be provided. Training and
rehab ilitation program s will be provided and communities' participation in soc ial welfa re
8.5 LABO UR AFFA IRS
8.5.1 Strategic Directions
There are three key polic ies ado pted for labour affai rs in the GT P. Th ese are
To expand job information services by sett ing up a data base sys tem to ident ify j o b
opportunities. The system will enable analysis of labour market demand and inform policy
makers, employers , eco nomically active c it izens. research inst itution s a nd ed ucation and
t ra ining centres.
To expand workplace support and cooperation to encourage the resolution o f labour
disputes by bilateral (employee and e mployer) and trilateral (employee. employer and the
government) dialogue and discussion. The government will also encourage improvements in
working environments and job safety so as to increase productivity.
l\lonitor of t he wer king environment to ensure that employee s and emp loyers ab ide by the
re le vant rules and reg ulatio ns and respect the ir d uties and responsibilities to ensure job safety.
8.5.2 Objectives
The objec t ives for labou r af fairs during the plan pe riod are to ensure expansion of j ob
informat ion services, j ob safety and sta bility of the working environme nt and enha nce labour
productivity. Achieve ment o f these objectives will co ntribute to overall socio-eco nomic
devel opment.
8.5.3 Ta rgets
The following ta rgets are to be achieved du ring the plan period
Tab le 46. GTP Targets for La bo ur Affairs
GTP Tar g et .~ El r LalHlI/rA jJj ~" ~i~~. --7~~- 7'"---------'"
I . Ensure an e ffective e nforc ement of the labour laws.
2. Launch a job inform ation serv ice.
3 . Suppo rt job seekers.
4. Provide capacity development training to employees and e mployers.
5. Launch dia logu e and discussion fo rums at workplaces.
6 . Provide support to solve labour disputes through d ialogues and discussions.
7. Strengthen mo nitoring of working environments.
8.5.4 Im ple me nta tion Strat eg ies
During the plan period implementation strateg ies for de ve lopment of labou r a ffa irs are to
Enforce the family law provision of a minimum marriageable age of 18 years.
Impleme nt the national po pulation.lnformatlon and communication strategy.
Increase the ratio of family planning users to 65% b)' the end of the plan period.
8.6 POPUL ATIO N AN D D EVEL OPM ENT
8.6.1 Stra tegic Directions
Ethiopi a ' s populat ion po licy a ims to lay the foundat ion for ha rmoni zing the rate o f po pulat ion
growth with the country 's capac ity to deve lop and use natu ral resources, and so imp rove the
o vera ll living co nd it io ns o f c it izens.One of t he feat ures o f Ethiopia' s dem ography is that a
large number of the populat io n join the nati ona l workfo rce each yea r. Th e ratio of the
popu lat ionof wo rking age to the total populat ion wa s 5 4% in 2008 and estimates are t hat eac h
year an add itio na l 1.2 min peop le j o in the nat ional workforce. So when the poo l of
economically active members of the populat ion increases in size. provided that they receive
t he support necessary to be produ ct ive, the co untry' s wo rkforce p lay s a sign ificant ro le in
increased eco nomic growt h and deve lopment. Fo r this reaso n. econo mic growth and
development benefi ts fro m the o pportu nity presented by t he nature o f Ethiop ia' s
dem ographi cs. Moreo ver. the polici es and st rateg ies adopted by educatio n. hea lth. agriculture.
industry and other secto rs wi ll cont ribut e positively to effective impleme ntation o f the
popu lat ion po licy .
8.6 .2 Objective
Th e ma in o bj ective o f the popu lati on deve lopment plan during the GTP per iod is to lay down
foundat ions fo r harmoni zing Ethiop ia ' s mai n demog raphic characte rist ics with de sired
deve lopment outc ome s o f the co untry's econom y.
8.6.3 T a rg ets
Th e follow ing target s for pop ulat ion a nd deve lopment are to be achi eved during the plan
period .
Table 47. GTP Target s for Population and Devel opment
G7'I' Tl/rg et.~ f tJr Population and Development
I . Expand the health extension pr ogram ' sprovision of family planning services .
2. Mainstream the population develop ment agenda in. and ens ure effective implementation of. t he GTP
development programs o f e\'CI)'sector.
3. Improve community participation in. and aware ness of issues relating to, pop ulation development.
4. Support and strengthe n population educat ion as it is addressed in primary and second ary education
programs.
5.
6.
7.
R. Develo p a po pulation data base to assist researc h into migration, urbanization. etc.
9. Execute the national plan of action for populat ion development so as 10 prov ide lor the effective
implementat ion of po pulalio n policy.
children to ha ve. T he capac ity of stakeholders working on popu lation issues will be enhanced
through knowledge and exper ience sharing forums.
8.7 CULT URE AND TO URI SM
8.7.1 St rategic Direction s
During the plan per iod. the strateg ic directio ns for the culture and tourism deve lopment
program are to enhance the ro le tourism and culture play in soc io-eco nomic and political
deve lopment initiatives. The touri sm industry policy direct ions a im to make Ethiopia one of
the best to urist destinatio ns in Africa. Tourism industry products and services will be
expanded in qua ntity and qua lity to enable them to compete globally. Women and youth will
be nefit from the sector's devel opment. C ultural and to urist att raction s will be used to build a n
attract ive image of the co untry. The cultural, natural and histor ica l heritages and values of the
country would be developed so that they play a significant role in socia l and economic
development as well as in the democratizatio n process of the co untry. C ultura lgoods and
se rvices will be promoted to playa greater and positive role in the co untry.
8.7.20bjecth 'c
The main ob jec tives for c ulture a nd tourism. during the plan period, are to ensure the
sustainable develop ment and conse rvation of to urism. Ethio pia's diverse and unique c ulture
and cultural heritage sites. and encourage the community's partic ipation so that . overall,
c ultural act ivities and tour ism contribute to socio-economic develo pment and democratization
process in Ethio pia.
8.7.3 Tar gets
The following targets are to be achieved during the plan period.
Table 48. GTP Targ ets for C ultur e and Tourism
G7'I' Tl/r g et.~ fi }r Culture lind Touri sm
I . Registered. preserve. deve lop and promote a ll designated cultural heritage. national attractions. and to urist
sites.
2. Ensure that earnings from the natural. c ult ure and tourism sectors contri bute to the overall visio n that
Ethiopia become s a middle income country.
3. Ensure that c ulture contributes to strengthening of integrity and democratization of Ethio pia.
4. Make more accessible tourist attractio ns and cultural heritage events and sites. for tour ism and research.
5. The promotion of cultural and tourism contrib ute to build a better image of thc country.
6. The culture and tourism secto r contribute slgnlflca ntly to fo re ignexc hange earn ings of the coumry.
8.7.4 Impl ementation st rategies
The implementation strategies that will be pursued during the plan period include
8.8 SCIEN CE AND TECHNOLO GY D EY ELOPM ENT
8.8. 1 Stra tegic Direction s
The follow ing six strategic direction s will be pu rsued d uring the plan per iod by the science
and technology devel op ment program.
Bu ildi ng in novations systems will build an institut iona l fram ewo rk with po licy
implementation g uide lines. Research will be conducted to analyze policy frameworks and
de ve lop a scie nce and technology develop ment plan co nsistent w ith the social and eco nomic
strategies of the co untry. The implementation of th is plan will be monitored and eva luated.
Adeq uate reso urces will be a llocated and funds secured to build innovation in sc ience and
tec hno logy, w ith acti ve engage men t in b ilatera l and mu ltilatera l innovat ion project s.
Tec hnology tran sfer and deve lopme nt will involve increa sed coordination of and
integration with stake holders to identify tec hnology demand, bu ild value adding information
and technology data bases, enhance the support systems, and de velop a monitoring system for
techn ology d uplication and adaptation processes. Research a nd technology capacity
development will focus on develop ing research and technology capac ity in industry, water,
energy and other development secto rs, support resea rch projec ts and stre ngthen research
infra structure.
Human resource devel opm ent will a im to produce high qua lity human resources capa ble of
expanding technologica l innovation and adaptation. and capable of managing science and
innovation systems effectively. Intensive work wi ll be done at primary and seco ndary
ed ucation level to rea lize the target of a 70/30 sc ience and mathe matics enrolme nt rate at
tertiary leve l.
Q ual ity a nd sta nd a r diza tio n strategies will build an acc reditation system to international
market standa rds for q uality export good s a nd services, to enhance the ir com petitiveness.
Ethiop ian quality and standa rdization guidel ines will be prepared and assessment and
metrology organs acc redited.
A Science, tech nology a nd innovation info r mation develop ment i nitiative will compile
and distribute nationa l and regiona l sc ience and technology information in databa ses,
statistica l abstracts and bibliography. A web platform will be provided to make access to the
information easy and effective and an organisatio n establis hed to facilitate and manage the
initiative.
A focus on copyrig ht and l in tcllect ua l /pr ope r ty rig hts will encourage innovat ion.
strengthen co pyright and inte llect ual property rights. and enco urage local innovators to
deve lop local technologica l capac ity and deve lop the ind ustry.
8.8.2 Object ives
The main object ives for science and technology developme nt d uring the plan period are to
8.8.3 Ta rge ts
The foll owing targets are to be ach ieved during the plan period
Ta ble 49. GTP Targe ts for Scie nce an d T ec hnology Develop men t
4. Usc S min patent information doc uments lor technology transfer a nd adaptation .
5. Establish universit ies specializing in se lected science and technology subjects .
6. Stre ngthen the a lready existing agr icultural. hea lth and information technology resea rch institutes with
essential materials a nd lina ncia l reso urces.
7. Establish technology and research instit utes fo r industry. electro nics and micro electronics. water.
co nstruction. energy a nd material sciences.
8. Establish labo ratories torwater. medical science. electro mechanical. chemical and geoc hemic al, material.
concrete testing and gee-tec hniques subjec t areas.
9. Estab lishworldwide accn..xfltarlon in Ilvc measurement areas in Internat io nal Organizatio n tor
Standardization I International Electro technical Commission 17025 laboratory quality ma nageme nt syste m.
10. Revise SOOOnational standards and 5000 new sta ndards fo r technology trans fer.
II . Establish accreditation for 60 science and technology organisations which meet national and internatio nal
quality standards.
Descriptio n of Tar get s 2009 201·mS
I. Increase fir stle ve l etha nol coverage ( % ) 10 75
2 . Increase the number of patent documents (mIn) 30 50
3. Red ucethe coverage of tsetse ny (%) 95
-
8.8.4 Impl em entati on Sira teg ies
A wide range of implementation strategies for science and technology development will be
pursued during the plan period. A national innovat ion system will be launched and an
organisation to manage the system will be established. Research institutes for technologica l
ada ptat ion will be established. An administrative and lega l system for copyr ight that mcets the
co untry' s needs; will be created. Fore ign technology flows into the country will be
encouraged. Sc ience and technology institutes capable of producing competent sc ientists and
engineers will be strengthened. Human resource capacity to use. copy, adapt, improve and
develop technologies will be created. Existing re search instit utes will be restructured and
strengthened so as to co ntribute to the co untry' s technologica l capac ity. Strategies that
strengthen linkages between resea rch institutes and ind ustries will be introduced. Well
structured and organized bodies that hel p to produce innovative technologies will be
esta blished. Implementation of mandatory nationa l standards will be strengthened. Researc h
activit ies related to co llection. ana lysis. protectio n and distribution of science and tec hnology
information will be supported. The o rgan izat io n will be esta blished to protect and deve lop the
coun try' s inte llect ual property and the system to use intel lectual property for economic
devel opment will be strengthened. Synergies will be fac ilitated a nd linkages put in place
betwee n organ izations working in environmental protection and public safety. Research and
capacity building coo peration program s in science and technology that contribute to nationa l
directions to be pursued during the plan period. In building a ' green ' and climate change
resistant economy there are two key issues, adaptation to climate change and mitigation of
green house gases.
Ad a pta tion to climate cha nge: The cl imate is a natural phenomenon which influences
positively or negat ively social and economic activ ities. Climate has its own peculiarities and
affects future opportunities for, and prospects of, the country. Even though Eth iopia' s
greenhouse gas emission rate is minimal. the country is affected by cl imate change. There are
agro-ecolog ical zones (dry land and semi-dry land a reas) and eco nomic sectors which are
more vulnerable to climate change. Research findings show that Ethiopia annually loses 2%
to 6% of its total production due to the effe cts of climate change. In Ethiopia climate change
cau ses sporadic distribution of ra infall in dry a nd rainy seasons. In some cases excessive
surface water runoff results has catastrophic effects. for instance very rapid filling and
emptying of ground water reservoirs has been witnessed, as has biodiversity degradation. The
evidence of these impacts shows how very critical it is that climate change adaptation
strategies are put in place during the plan per iod and thereafter.
l\l it iga tionof gree n house gases: Greenhouse gas emissions by developed nations have been
enormous since the industrial revolution, and so it is mainly the res ponsibility of developed
nations to reduce greenhouse emission rates. Ethiopia has the lowest per capita consumption
rate of fossil fuels. It has almost no contribution to the greenhouse gas emissions that are the
cau se of adverse climate change impacts. On the other hand, in Ethiopia the re are indigenous
knowledge. practices and systems which reduce biogas emissions. In the agr iculture sector
farmers use biologically based inputs like cow dung and compost as fertilizers. Ethiopia' s
contribution to crea ting a stable and more beneficial cli mate is very clear . In addition, energy
generated from wind and geothermal sources can meet Ethiopia' s energy demands. as well as
those of neighbour ing countries and further contribute to climate conservation. Without
putting pressure on farm land. ethanol production can be doubled. The forest coverage in the
northern part of Ethiopia has been recovering since the past 20 years. There are practices in
Ethiopia which can be adopted for mitigat ion of the adverse impacts of climate change.
Focusing on economic development which mitigates cl imate change effects is very important
from the point of view of the country 's economic interests, its capacity to develop renewable
energy sources and the prospects for its future energy consumption. The eco nomic
development direction pursued by the Ethiopian government contributes to climate c hange
mitigat ion and so may generate new and additional environmenta l support funds from
developed nations. According to the Copenhagen Accord and the Kyoto Protocol,
technological and financial support has been put in place for climate c hange mitigation works
carried out by developing nations. For this reason it is timely to build cl imate mitigation
capac ity so as to benefit from international financial support for environmenta l activitie s.
During the plan period foc us will be given to building capacity to mitigate the negative
impacts of climate c hange. The current impacts and trends relating to climate will be
identified and information on the possible outcomes and existing environmental management
practices will be assessed and disseminated. Steps will be taken to either avoid the impacts of
8.9.3 Ta rge ts
The fo llowing targets are to be ach ieved during the plan period
Ta ble 50. GTP Target s for Enviro nment an d C limate Change
Description of Tar get s 2014115
I. Energy generated from renewable e nergy resources ( MW) X.OOO
2. Sales o f ethanol and biodicsc l (m in liter ) 35
3 . The minimum arca covered by fore st (km2) 2.000
4 . Area of productive fo rest developed ( k m ~ l 25.000
5. Area of natural fore st developed ( k m ~) 2.876
6 . Area of fores t of trees that shed leaves (km 2) 4.390.6
7 . Area of designated park land (km 2 ) 60.360
R. Area of designated wetland (k m ~ ) 5 1.496
9 . The area of farmland to which compost will be appl ied (km2) 40 .()O()
10. La nd area utilised bv mixed farming & forestry for bio gas emission mitigation [krn") 26 1.840
II . The amount of urban waste used to prod uce methane gas (min 013) 20
12. I he climate change resistant green ceo nom) \\ III be strengthened a nd measures Will be ta ken by a ll tiers 01
gove rnment for preparation a nd implement ation of environmental action plans in all regio ns.
13. Po lic ies. laws. strategies and action plans will be put in place to add ress climate c hange mitigatio n.
14. Dams. roads and infrastructure facilities which contribute to poverty reduction but arc vulnerable to impacts
of cl imate change will be ldcntlflcd and mitigat ion measures will be put in place
15. Measures will be taken 10 mitigate climate change impacts to co nserve the biolog ical resou rces.
16. Regio ns and cities/tow ns pass a nd implement laws to build a measurable and achievable green eco nomy
17. Establish a nat ional syste m for environmental N CiOs to ass ist them in the eff ortsto build green eco nomy.
18. A dry' waste ma nagement law will be implemented at a ll federa l and regionalle vels.
19. The law on biogas e mission rate by the 8 high emission rate industries will be fully implemented .
20. To make e nvironment policy e ffective prepare a proposalfor 5 add itiona l environmental protection laws.
2 1. Repo rting 10 the public on the performance of the 5 year environment developm ent plan will be tim ely.
22. A nationa l syste m willbe built to help Ethiopia build a car bon free eco nomy by 2025 and q uality for
additional global environme nt fund support.
8.9A Impl ementa tion St ra tegies
The following implementation strateg ies will be pursued during the plan period. A plan of
action. st rateg ies.laws. standards and guide lines to impleme nt measures that are designed to
lessen the effe ct of forecasted climate change impacts wi ll be prepared . Programs to develop
the capac ities o f tho se stakeholders who are essent ial to e nsuring effecti ve imp lementation of
the action plans. laws and guide lines will be deve loped and imp lemented . Local and fore ign
tec hnologies fo r climate cha nge mitigatio n will be co llected and adapt ed. The capac ities of
the private sector and community organizations for fund raising globa lly will be enhanced .
CHAPTER 9.
OPPORT UNITIES, RISKS AND CHALLENGES
IN IMPLEMENTING THE GTP
Co nsidering the time hor izon and sco pe o f the GTP, it is inevitab le that there w ill be
o pportun it ies that ar ise and u nforeseen risks and cha llenges that emerge as the plan unfold s.
The gove rnme nt has sought to tak e t hese into con siderat ion in formu lating the plan , by
assessing rece nt performan ce and ach ievemen ts as well as cha llenges enco untered. and
e valuating the socioeconomic. political a nd the inte rnatio na l eco nomic co ntexts at the time the
plan was conce ived. The o pportunities should contribute to the success of the GT P. The risks
and challenges a re expected to pose obstacles to the ach ievement of the GTP' s objectives and
target s and hen ce enta il mitigation mea sures. Th e governme nt ha s assessed the pot ential
po sitive and negat ive exte rna l develo pment s that ma y affect the p erformance of the Eth iopian
eco nomy du ring the five yea r period, and the e nvironme nt in whic h the plan is imp lemen ted.
Th e OT P has built in measures to manage the effects of eac h of th ese factors. It is t imel y that
the OT P demand s more concerted effort s conside ring the o bj ective o f achieving the MOOs by
2014/ 15a nd the co untry's visio n by 2020-2 023.
9.1 OPPORT UNITI ES
Th e encou ragin g results and good practices ach ieved in the past five years ha ve brought ab out
strong enthus iasm and co nfidence amo ng citizens that pove rty ca n indeed be erad icated from
t he co unt ry.Th is enthu siasm is co nside red as a goo d o pportunity to strengthen the nat iona l
consensus on the deve lopment and governance age ndas o f the co untry and the reby to mobilize
the w ider public more actively to suppo rt the im ple mentation of the OT P. A lesso n has bee n
learn t that macro econom y stability and susta inable economi c growth is possible w ith the
po licy and ad min istrative mea sures the government has been taking. The co unt ry's
com parative ad va ntage s, p len tifu llabour, a huge domestic market and substantial natural
resou rce s pote ntia l, a lso pro vide a goo d o ppo rtunity for speed ing up deve lopm ent in the
coming five years. The OTP period is a period wh ere the huge investments mad e so far in
infrastructure and hu ma n reso urce deve lopment w ill result in greater returns by increasing the
productivity o f the eco nomy and by enco uragi ng more product ive investment.
Thu s the OT P period is expected to ex per ience improv ing prod uctivity and produ ct ion levels
in a ll sectors by appl ying the best pract ices that have been identified to date and ca pita lizing
o n the goo d o ppo rtunities ava ilable. The ca paci ty build ing a nd goo d gov e rnance packages that
have been impleme nted at different admi nistrative level s a lso pro vide an opport un ity in that
they have created relat ive ly better ca paci ties even at lower le vels o f administratio ns and in
communities. Thi s he lps to increase public partici pati on for greater allocat ive effici ency and
results, and for more effective, tra nspar ent a nd accounta ble service deli very in a ll secto rs. The
o pportun ities descr ibed w ill se rve as add itiona l d rivin g forces for development in the OT P
period.
9.2 R ISKS
The main foreseeable challenges in the implementati on of the GT P include low
impl ementation cap acity, low nat iona l saving rate that is unabl e to support th e inve stment
need s of the economy. an d the unpredi ctabi lity o f exte rnal finan cing . In addit ion, it is
ant icipated that g loba l mark et price fluctu at ion s co uld pose some c ha llenge s to effecti ve
implementationof the plan.
9.3 MANAG ING RI SKS
Risk mit igation measures that address the fore seeable risks in the development process
me ntio ned a bove incl ude impro vem ents in the tax ad m inistra tion system and broa den ing the
tax base so as to increase domestic resource mobilization. Government. organizations and
indi vidu a lswill be e nco urage d to increa se thei r savings to pro vide adeq uate reso urces for the
countr y' s inves tment needs . The favou rable po licy and ad min istrat ive environ me nt created
will support effec tive utilization o f th e capacit ies o f co m munitie s and the pr ivate secto r as
development partn er s in th e development and governan ce endea vour of the GT P. Exte rna l
finance reso urces wi ll be mobili zed and . where secured. will be effect ively used fo r
investment in prio rity sectors. The contri butio n of local and internati onal NGOs a nd C BOs in
th e imp lem entation of the development plan wi ll be strengthened.
Mea sure s will a lso be tak en to add ress capacity lim itation s by strengthen ing the
impl ementation o f the civ il service r efor m program at a ll leve ls. Fo re ign exc hange ea rnings
will be increa sed by expa nd ing ex port capacity. and substitu ting impo rts with co mpetitive
loca l produ cts. Meas ure s to gua ra ntee s usta inab le and rapid agricu ltura l and overall eco nomic
growt h like sca ling up of be st practi ces. and expand ing irrigation w ill be taken as risk
mitigation in it iatives. Th e publ ic ex pend iture managem ent refo rms introduce to e nsure
stringent recurrent expe ndi tures wil l be strengthened s uch that the lim ited available reso urces
are e fficie nt ly and effective ly uti lized for produ ctive purposes.
CHAPTER 10.
MONITORING AND EVALVA TlON OF THE GTP
10.1. BACKGROU ND
The main obj ect ive o f t he GT P monito ring and eva luation syste m is to follow up on
implemen tation of the secto ral and cross cutting plans included in the GT P so as to e nsure
effectiveness of government policie s and strateg ies. T he M& E system prov ides a tool to
follo w progress in achievem en t of planned target s. mainta in the co herence and integration o f
the overa ll economy, take time ly correc tive measures when needed, and manage the
development process effectively. Ethiopia' s M&E system is based on the sectoral approach
and is a too l whereb y tim e ly and re liable information on result s. from the Fede ral to the local
level s o f gove rnmen t, is co mpiled and reported.
The GT P' s M&E system is built on the existing We lfare Mon itoring System Program which
has bee n in place since 1996. It is imperative that the M& E syste m has adeq uate data inputs
and to support this need, the Ce ntral Stat ist ica lAgency (CSA) rece ntly laun ched the new
National Strategy for the Development of Stat istic s (NSDS) in consultation w it h relevant
stakeho lders. The NSDS will help to generate data through surveys and censuses to mon itor
implemen tation progress of the GT ? The adm inistrat ive data generated by sec toral line
ministr ies w ill a lso provide an input to the M&E system. Data from censuses, surveys a nd
administrat ive so urces will be used to ge nerate full-fledged eco nomic analysis and report s by
the Ministry of Fina nce and Econom ic Development.
The ma in ro les a nd responsibilities played by the majo r actors in the GT ? M&E syste m are
o utlined below.
10.2MO NITORI NG THE OVERALL I'LAN I'ERFORMAN CE BV MoFED
MoF ED chai rs the Wel fare Mo nitor ing Te chnica l and Stee ring Co mmittees that playa ro le at
the nationa l level, in managing the ove ra ll eco nomy and coo rd inating the M& E system. The
background report s prepared by the memb ers of poverty-o riented federa l exec uting bodies
se rve as a basis for the re ports prepared by MoFE D. Sec to ral annual impleme ntatio n, M&E
report s ge nerate data to measure output and input results again st GT P p erformance indicato rs.
Report s prepa red by the CSA, ba sed o n information fro m surveys , gene rate data to measure
o utcome and impact resu lts aga inst GT P perform ance indicators. Based o n the info rmation
avai lab le from surveys as well as from ad ministrative sources, MoFED prepares annual
implemen tat ion assessment reports as an input to the Welfare Mo nitor ing System Program
and for timely d istribution to the relevant government autho rit ies as we ll as to non-
governmental bod ie s.
MoF ED a lso provides up-to-date monitoring of we lfare, macro eco nomi c performance,
national acco unts, foreign resourc e mobilizat ion and ad minist rat io n,public de bt management,
public acco unts, etc. Mo FED holds reg ular annual meet ings of Welfare Mo nitor ing Techn ical
The GTP policy mat rix will present the targets set and detail possible measures to be taken to
improve performance dur ing the plan period.
10.3 THE ROL E OF F EDERAL E X ECUTI VE B ODI ES
Federa l implementing agencies pla ya critical role in ensuring that the nationa l M&E system
is robust and useful. As the M&E system becomes more robust and co nsiste nt it will be
possible to prov ide more timely and relevant information to stakeholders. The M&E system
has a national context as the targets set in the plan are focused at the natio nal level.
Federa l implement ing agencie s prepare and submit annua l progress or implementat ion
assessme nt reports to MoFED. They co nta in detailed information from the local levels of
government. woredas, kebeles a nd c ity governments/administrations. As the ma in
impleme ntat ion agencies of the natio nal developme nt plan are the regions, c ity
governm ents/admini strations. woredas and kebele s. intensive capac ity bui lding activities will
be undert aken in the next five years. in sector line ministries responsible for strong and
coherent linkages with the lower ad ministrative levels. to ensure timely and acc urate
information flow and feedback for the national M&E system.
During the plan period. implementation agencies at the federal. regio na land local levels
sho uld ensure that adequate human resources are provided and sutli cient M&E capacity
devel opment take s place to ensure the M&E syste m is operationally effective. To realize this
objec t ive. MoFED will work in close co llaboration with Bureau (s) of Finance and Economic
Development (regiona l), woreda and c ity governments/ ad ministrat ions to fac ilitate acce ss to
techn ical assistance for M&E capac ity development.
10.4 CENSUS ES AN D SURVEVS FOR T HE M & E SVSTE M
The C SA' s mandate is to gather soc io-economic and dem ograph ic data through integrated
censuses. surveys. continuous registrati on and administrative recording systems and compile.
analyze and present to users useful data in user friendly formats. The CSA also provides
techn ical support to government and other implementing bodies o n statistica l data keeping
and builds capac ity continuo usly for registrat ion. administrative data gathering. compilation.
analysis and reporting syste ms.
To fulfil its mandate the CSA has been implement ing the NSDS since 2009 . The NSDS has
bee n revised to address the data needs o f GTP and it has defined strategic directions and
designed an actio n plan to compil e and analyze data from cens uses. surveys and
admin istrati ve sources. For M&E of the progress towards ach ievement o f MDGs and the
targets set in the GT P the CSA plans to conduct the following surveys during the plan period.
Table 5 1. Su rveys 10 be Ca r r iedoul by CSA Durin g Ihe Plan Period
Ag ric u lt u re .Nat ura l Resou rce a nd
E nviro n me n ta l St ati st ics
I . Crop production forecast.
Pop ulati on Surve ys
I. Projcction of pop ulation and housing census
Agric ult ure , Natura l Resou r ce and
Environ menta l Sta tistics
-- R~ £ ~i £ ~~~ ~!_ '.l !.- ~ ~. ~ lJ "' -,---cc;- --c- ;----
9. N<l~ l:I!:<l!!~~~~~ ~~~ _9 . ~i!9 . -'~~ ,i~ _~ ~lJ! ~~ r :......
10. Pasroralist areas survey
I I . Rural economy survey.
Hou seh old Sur veys and Pri ce Statistics
_ --;IC,--;Agricultuml Prod ucers erice s un9': _
2. R c ta i l _ p ~ c s u r ve ) ~s,. -,- _
__,,3c' -"A g r i ~ u . !!. ll ! <l lJ ll P ~ t~ ~ ~ e x ., _
__4 . Wage i n ~_~ c' -,.-,--c - - - - - - - -
5. C ons u m~~ p !:!ce i n~ ~c' _
6. Global Co~p:aris o nrro£! '.l.... m, . _ -,. _
7. Hou se hold income and consumption
___ s u~~ ~cY ' .:.. _
s. Economr.i!nd soc~ 1 \\c!!.a !.e ~ ~~e) '.. _
9. C~nt inll£.s c.!!lE ! !?)mc'!!.~ nc x _
10. Labour force surveyc' _
I I . Strect c ~~ l d rc n sum?)· _
12. Welfare monitoring survc)'c. _
13. Time utili/.ation s u n ' c ~ ' c' _
Population Surveys
1. Update pop ulation census.
2. Undertake Dem og raphic & He alth Survey,
3. Undertake intcr census study.
4 . Con solidategender statistics.
5. Con solidate vital statistics,
Business Sta tist ics
I. Large and medium scale manufacturing
ind ustries s urvey.
_ _2 : 2 ~ 1I 1 !.!l . 1 11 .!l lJ r ~ ~ L1 ~'.l g !. n ~ ~ l! i ~~~~ > .~ _
~ ) i s t ~ i b ll ~ ~ ~t~ ~ ~JI: ~d_Y ~..:! £ e ~ ~~ r s ll~ ~e x _. __
4. Cons lr u£ , !i ~2. l!.!. ~) 'c' -r- _
5. Bu i ld i n g !? u s i n ~~~ £ ~~!.. lJ. ·.. . .: ~ ) ' g cm . -,-_;-__
6 . Strengthening transport and communication
statistics .
7. St r':!1gt~~ _Il! !lg . eX~..!:!.Y'.l~.!:.~,!!i ,g~ ~c· -,-_-, __
8. Producers and amount index for manufacturing
ind ustries.
9 . Survey on IT use on large and mcdium scale
manufacturing industries.
_ ! Q ~ . ~ _ L1 r ~ ' ~ ) : ~ ~ , !! _ rt:l ! ll _ i n g _ ~ ~ p. I () _ ~ a . t i _ (), ll : _
11.Quarterly survey on large and medium
_ -:c ~m,," a n u f a E ~~ Ji!l g !!,l ~u2 t !i ~ :_
12.Bu ild data base on water distillation and
__~~t ! i bu~i~ n , c' __-, ;--,;-_;-_
13.Sun cy on cottage industry and the informal
sector.
To achieve the above targets the following strategies will be implemented.
Ensu re impl em en tat ion of sta t ist ics law a nd g uide lines : The strategy focuses on
establishment of a unit to coordinate the Nationa l Statistical System. The unit' s purpose will
be to estab lish common standards. classifications and definitions fo r all producers of official
statist ics.
Impr ovin g data qu ali ty a nd sta nda r ds: T he strategy wi ll foc us on improv ing data quality in
the national statistica l system.
Enha ncing advoca cy a nd use of sta tistic: The strategy a ims to improve statist ica l launch
procedures and press relat ions. train statistica l users including the media a nd establishing
regular relations with data users.
Method ologica l imp roveme nts a nd sta t istica l modern isat ion : The strategy aims to
generate feedback from stakeholde rs' consultations.
In add ition, the follow ing system-w ide data improve me nts w ill be implem ented
Coordination of the national statistical sys te m: The strategy fo cu ses on ensuring sta tistica l
ethic s, qu al ity a nd sta ndards.The data qua lity sta nda rd agree ment endor sed by stakeho lders is
expected to be e ndo rsed by the statistics co unci l and will then be imp leme nted, s utli c iently
fu nded, we ll eq uip ped and sta ff ed.
Technology improvements : The ai m is to st rengthen and enhance techno logy use, including
utili zat ion of GPS , high speed portable com pute r, sate llite image ry and co mputer aide d
tele phone data co llection.
Mobilisation of support : Th e CSA wi ll mobili ze support for NS DS impleme ntation and will
aim to achieve the Paris decla ratio n agree me nts rela ting to nation al stat ist ics . CSA w ill alig n
and harmonize deve lopment part ners' support for the NS DS and establ ish a com mittee to
acco mp lish this task.
Business Process Re-cngln eertng : Th e CSA is imp leme nting the Business Process Re-
eng ineer ing proce ss and, in the proce ss. has ado pted many NSDS pro posa ls. The BPR
doc ume nt co nta ins an action plan and a p erformance management p lan. The plan s w ill be
eva luate d q uarte rly and an an nual repo rt prese nted to the statistics cou nci1.
Statistical System Ca pa city building : A key implementation strategy invol ves a number o f
mea sure s that w ill be taken to build the capacity o f statistica l systems du ring the plan period.
A ll CSA ' s branch o ffice s w ill be networked . The data co llect ion, co mpilation and
d isse mination system w ill be imp roved. Data ana lysis at branch offi ce level wi ll be
introduced. A statistica l data qua lity assurance doc ume nt for Et hio pia w ill be prepared. A data
qua lity eva luatio n fram ework will be prepared. Data qua lity in each sector w ill be eva luated.
Data produ cers a nd users will be trained . A cata logue for the NS DS w ill be pre pared and links
between CSA and other web sites will be put in place . Postgrad uate leve l tra ining for expe rts
at the C SA will be prov ided and a new building to acco mmodate CSA wi ll be constructed.
Grea te r empha sis will be give n to enhance the intern a l capac ity o f CSA field surveys fo r
effective implementation and data management.
10.5 Geo-Information
During the plan per iod. emphasis wi ll be give n to build ing a nationa l gee -informa tio n system
th at is qua lity assure d and w ill gen era te co nsisten t and usefu l geo-inforrnat ion. O nce the
system is operational it w ill provide time ly and gee -information supported by air photogra phy
and rem ote sensing.
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Table of Contents
Page No.
Table of Contents i
List of Tables iv
List of Figures v
List of Acronyms vi
FOREWORD vii
CHAPTERS & SECTIONS PAGE
INTRODUCTION 1
CHAPTER 1. ACHIEVEMENTS AND CHALLENGES UNDER PASDEP. 4
1.1. Macroeconomic Performance.
1.2. Performance of Economic and Social Sectors .
1.2.1. Agriculture and Rural Development...
1.2.2. Trade and Industry Development
1.2.3. Mining
1.2.4. Road Development
1.2.5. Rail Network, Dry Port and Transport
1.2.6. Telecommunications
1.2.7. Energy...
1.2.8. Water and Irrigation Development.
1.2.9. Construction and Urban Development
1.2.10. Education .
12D. Heal scenes aE AS
1.3. Cross Cutting Sectors
1.4. Good Governance and Demoeri jon .
1.5. Challenges and Good Practice in Implementing the PASDEP ............ssssssseeseeseeeese 19
1.5.1. Major Challenges Encountered
1.5.2. Good Practices Learned
CHAPTER 2. BASIS, OBJECTIVES AND STRATEGIC PILLARS OF THE GTP 21
2.1.
22:
23.
Basis of Growth and Transformation Plan
Objectives of the Plan.
Strategic Pillars...
2.3.1 Sustaining rapid and equitable economic growth. i
2.3.2 Maintaining agriculture as a major source of economic growth
2.3.3 Creating favourable conditions for industry to play a key role in the
economy ....
2.3.4 Enhancing expansion and ensuring quality of infrastructural development .....24
2.3.5 Expansion of social development and guaranteeing their quality
2.3.6 Strengthening good governance and capacity building.
2.3.7 Empowering women and youth and ensuring their benefits .
CHAPTER 3. MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRANSFORMATION PLAN 28
3.1. Macroeconomic Objectives
3.2. Macroeconomic Policies and Goals
3.2.1. Economic Growth, Savings and Investment
3.2.2. Prospects for Growth, Wellbeing and Poverty
3.2.3. Fiscal policy
3.2.4. Monetary Policy, External Sector and Financial System.
3.3. Selected Macroeconomic and Sectoral Targets.........cccssssssesecssstesesseesestesnsseeseeeeenes 34
CHAPTER 4. FINANCING THE PLAN 38
4.1. Government Revenue
4.2. Government Expenditure
4.3. Financing
4.4. Off Budget Financing of Infrastructure And Industrial Programs .
4.5. the role of the Private Sector and the public 0... esessssesessssesesssssseesssesesseseseensneee
CHAPTER 5. ECONOMIC SECTORS DEVELOPMENT PLAN 45
5.1. Agriculture and Rural Development
5.2. Industry.
5.3. Trade.
5.4. Mining
5.5 Infrastructure Development...........sccssssssessesecsessessessessesesseesesssseeseesesseesesnsseeaeeneenceneees 68
5:51
5.5.2 Railway Transport
5.5.3 Energy...
5.5.4 Telecommunica'
5.5.5 Potable Water Supply and Irrigation Development
5.5.6 Transport Service:
5.5.7 Maritime Transport
5.5.8 Air Transportation Services
5.5.9 Urban and Construction Development
CHAPTER 6. SOCIAL SECTOR DEVELOPMENT PLAN 86
6.1 Education and Training aus
6.2 Health ...seessesseecsesssecsessseesesssecssecssssssesssesessnscenssscsussscsscsssssuessesssssseeessssneesessssesesessssneese
CHAPTER 7. CAPACITY BUILDING AND GOOD GOVERNANCE 96
7.1 Capacity Building
7.2
Information and Communication Technology Development............sseesessesseeseeeee 100
73 JvSICE SeCtOt ssnncnamnmennnnnnmancinnER RT TRS
74 Democracy and Good Governance.
7.4.1 Strengthening Democratic System
7.4.2 Good Governance
7.5 Media Broadcast and Communication
7.5.1 Media Broadcast
7.5.2 Government Communication .
CHAPTER 8. CROSS CUTTING SECTORS 110
8.1 Gender and Children’s Affairs
8.2 Youth and Sports Development ..icccsisssssssvsinesnscovansavsssssoonsenssvennvessnvensensevscosnovsvaneesseves
8.3 HIV/AIDS Prevention and Control.
8.4 SOCIAL Welfare
SS AbOUR- AMAL cssscssssseewcesseiweascasseewsseuseeuiseaeatseseeeuReNC Sta CRE TS CERRO TENEETECS
8.6 Population and Development..........c:ssecsessesesseesessessesseseeseesesseeeseesesseesesneesesessesseesesaceees
8.7 Culture and Tourism
8.8 Science and Technology Developmen:
8.9 Environment and Climate Change........ssecssscssssssssseseesseneesnsssessseesneeseenneesesneesneeneenseene
CHAPTER 9. OPPORTUNITIES, RISKS AND CHALLENGES. IN
IMPLEMENTING THE GTP 122
9.1 Opportunities.
9.2 Risks... .
9:3 Managing Risks cvssenccsorssvscsonconeossonsnconnsonoivenncosnvensasisenconstnnssensotennvereanieanasnrenseonsr ert 123
CHAPTER 10. MONITORING AND EVALUATION OF THE GTP 124
10.1. Background os
10.2 Monitoring the Overall Plan Performance by MOFED............sesssecseseseeseseeeeteteseeteeeee 124
10.3 THE Role of Federal Executive Bodies.
10.4 CENSUSES and Surveys for the M&E System
10.5 Geo-Information .......ccecssesseessesseeessessesssesseeseeesessesssessesseeesesssecssessecseeesneesessnecseeeseesseeee
iii
Tab!
Tab!
Table 17.
Table 18.
Table 19.
Table 20.
Table 21.
Table 22.
Table 23.
Table 24.
Table 25.
Table 26.
Table 27.
Table 28.
Table 29.
Table 30.
Table 31.
Table 32.
Table 33.
Table 34,
le ll.
Table 12.
Table 13.
le 14.
Table 15.
Table 16.
List of Tables
Title
Growth in Gross Domestic Product and Main Sectors Share as Percent of GDP... 4
Percentage Share of Aggregate Consumption & Savings to GDP @CMP
Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP....
Import and Export trade share of GDP (%).....
Real GDP Projection Annual Growth Rate (%)
Projected Trends in the Structure of GDP by Industrial origin (% share).
Demand Side GDP as Ratio to GDP @ Current Market Prices (%) ....
Projected Trends in the Structure of GDP growth by Industrial origin (%)
Projected Trends in the Structure of GDP by Industrial origin (“share)...
Projected Trends in Structure of GDP from the Demand Side High Case
Scenario (% share in GDP)
Fiscal Projection As a Percentage of GDP at @CMP (Base case Scenario
Selected GTP Targets
Projected GTP Revenue Requirements Under Base Case Scenario (in min
ETB)
Projected government Expenditures, Base Case Scenarios (mln ETB) ............++ 39
Projected Budget Gap During GTP, Base Case Scenario (in mln ETB)...
Resource need by Implementing Sectors, Budget Deficit and Financing (in mIn
ETB)
Off Budget Financing Require
Development Programs
Off Budget Foreign Currency Requirement of Infrastructure & Industrial
Development Programs
GTP Targets for Agriculture and Rural Development .
GTP Targets for Micro and Small-Scale Enterprises
GTP Targets for Medium and Large Scale Manufacturing Industries
GTP Targets for Chemical Industries
GTP Targets for Pharmaceuticals Industry.
GTP Targets for Agro Processing Industry
GTP Targets for Public Enterprises Management and Privatization
GTP Targets for the Mining Sector
GTP Targets for Mineral and Petroleum Investment Expan:
GTP Targets for Artisanal Mining and Marketing Promotion ...
GTP Targets for the Roads Sub-Sector by Budget Year ..
GTP Targets for the Railway Transport Sub-Sector.
GTP Targets for the Energy Sub-Sector
GTP Targets for the Telecommunications Sub-Sector.
GTP Targets for Potable Water Supply and Irrigation Development
GTP Targets for the Transport Services Sub Sector......ccsessecssssesesseesestesseseeseaseenes
Table 35.
Table 36.
Table 37.
Table 38.
Table 39.
Table 40.
Table 41.
Table 42.
Table 43.
Table 44.
Table 45.
Table 46.
Table 47.
Table 48.
Table 49.
Table 50.
Table 51.
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
GTP Targets for the Maritime Transport Sub Sector .......scessecssssssscseesseessenneeseeenees
GTP Targets for Air Transportation Services Sub Sector
GTP Targets for Construction Development Sub Sector
GTP Targets for Urban Development Sub Sector ......c.ssccsessecssseesesseeresesseeseesesneenes
GTP Targets for General Education
GTP Targets for Technical and Vocational Education and Training
GTP Targets for Higher Education
GTP Targets for Health
GTP Targets for Gender Development and Children’s Affairs.
GTP Targets for Youth and Sports Development...
GTP Targets for HIV/AIDS Prevention and Control
GTP Targets for Labour Affairs ....
GTP Targets for Population and Development
GTP Targets for Culture and Tourism
GTP Targets for Science and Technology Development ..........sesseeeseesesseeeesesees
GTP Targets for Environment and Climate Change.....
Surveys to be Carried out by CSA During the Plan Period
List of Figures
Title
GDP Growth by Economic Sector (%).
Percentage share of GDP by Economic Secto:
Percentage Share of Aggregate Consumption and Savings to GDP @CMP.......... 6
Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP.
Export and Import Growth (%).
Annual Calendar
The Gregorian calendar is used throughout this document. The Ethiopian calendar year
2003 starts on 11 September of the Gregorian year 2010. In government documents the
Ethiopian Fiscal Year commences 1° Hamle (Gregorian calendar 8 July) to 30" Sene
(Gregorian calendar 7 July). The Ethiopian Fiscal Years for the GTP are equivalent to the
Gregorian calendar as follows: Gregorian years 8 July to 7 July 2010/2011 to 2014/15 are
equivalent to Ethiopian Fiscal Years 2003-2007.
AIDS
BPR
BSC
CMP
CPR
CSA
CBO
ESDP.
ETB
FAL
FDI
GEQIP
GDP
GTP
HEI
HIV
HRD
bin
Gb/s
GWH
ha
hr
16.6258
List of Acronyms
Acquired Immune Deficiency
Syndrome
Business process reengineering
Balanced score card
Current market prices
Contraceptive prevalence rate
Central Statistical Agency
Community based organisations
Education Sector Development
Program
Ethiopian Birr
Functional Adult Literacy
Foreign direct investment
General Education Quality
Improvement Package
Gross Domestic Product
The Growth and Transformation Plan
2010/11 to 2014/15
Higher Education Institutions
Human immunodeficiency virus
Human resource development
IcT
IT
M&E
MDG(s)
MoFED
NGO
o/w
PASDEP
PhD
SDPRP
TB
TVET
USD
WTO
Information and communication technology
Information Technology
Monitoring and evaluation
Millennium Development Goal(s)
Ministry of Finance and Economic
Development
Non governmental organisation
Of which
Plan for Accelerated and Sustained
Development to End Poverty
Doctor of Philosophy
The Sustainable Development and Poverty
Reduction Program 2002/03-2004/05
Tuberculosis
Technical and Vocational Education and
Training
United States Dollar
World Trade Organisation
Units of Measurement Used
Bin
Gigabyte(s) per second
Gigawatt hour
Hectare (s)
Hour
Kilogram (s)
km
m
min
MSE(s)
q/ha
Qt
Currency Rates
Ethiopian Birr (ETB) * 1.00
United States Dollar USD
Kilometre (s)
Metre
min
Micro and small scale enterprise(s)
Quintals per ha
Quintal (s)t
As of November 30, 2010
vi
Foreword
The main development agenda of the Ethiopian government is poverty eradication. All the
country’s development policies and strategies are, therefore, geared towards this end.
Effective implementation of these policies and strategies in an integrated and
comprehensive manner at various levels of government administration is key for
eradicating poverty and dependence on food aid in a shorter period of time. There is a wide
national consensus on the priority agenda of eradicating poverty and the policies and
strategies pursued to address such a development priority.
The Ministry of Finance and Economic Development is responsible for establishing a
system for the preparation and implementation of national development plans, and in
cooperation with the concerned organs, preparing the country’s economic and social
development plan as well as following up the implementation of the same when ratified.
The Ministry had accordingly coordinated the design and implementation of the
Sustainable Development and Poverty Reduction Program (SDPRP), which covered the
years 2002/03 - 2004/05) and A Plan for Accelerated and Sustained Development to End
Poverty (PASDEP), that ran from 2005/06 to 2009/10. During these plan periods
remarkable achievements of economic growth, social development and good governance
were registered. On the basis of the experiences gained thus far and the national vision, the
Growth and Transformation Plan (GTP) has been prepared with clear objectives and
targets through wide public participation at both the federal and regional levels. The
Council of Ministers and the House of People’s Representative have adopted the GTP as
the national planning document of the country for the period 2010/11 - 2014/15.
Implementation of the GTP requires huge resources and commitments. To this effect,
emphasis will be given to ensuring effective public participation in implementation and
monitoring of the plan, efficient and effective utilization of all available capacities of the
public, the government and the private sector as well as better coordination and
cooperation with the private sector and development partners. In this connection special
emphasis will be given to encourage citizens to increase their savings and to strengthen the
overall level of domestic savings for productive investment in GTP’s priority programs.
It is only when every citizen makes a concerted effort with commitment, and sense of
urgency to discharge his/her own responsibility, that the effective implementation of GTP
can be realized. This requires a fundamental change of thinking on the part of actors and
stakeholders, particularly citizens, professionals, investors and the leadership, with respect
to the implementation of the key directions envisaged in the GTP. In this regard,
preventing and controlling rent seeking attitude and behaviour, and _ nurturing
developmental initiatives are absolutely critical to realize the MDGs by 2015 and the
country’s vision by 2020-2023. Hence, we need to firmly stand in unison in this bold and
transformational journey of accomplishing the objectives of GTP so as to eradicate
dependence on food aid, reduce poverty and create a solid foundation for the renaissance of
Ethiopia.
Sufian Ahmed
Minister, Ministry of Finance and Economic Development
Vil
Introduction
Achieving broad-based, accelerated and sustained economic growth so as to eradicate
poverty has been and is a key objective of the Government of Ethiopia. The government
has designed, and is implementing, strategies, policies and plans to guide and manage the
overall development of the country accordingly. The last five year development plan was
the Plan for Accelerated and Sustained Development to End Poverty (PASDEP). PASDEP
had a medium term development perspective and aimed, at a minimum, at achieving the
Millennium Development Goal (MDG) targets. During the PASDEP implementation
period, high and sustained economic growth and significant social and human development
results were realised. During the same period the economy grew on average at 11% per
annum. By sustaining the current economic growth over the next five year period, the
government aims to achieve the MDG targets by 2015, and its longer term vision of being
a middle income country by 2020-2023.
The government has formulated the five year Growth and Transformation Plan (GTP)
(2010/11-2014/15) to carry forward the important strategic directions pursued in the
PASDEP. The GTP envisages that, besides maintaining a fast growing economy, better
results will be realised in all sectors. In preparing the GTP the performance of the previous
development plans, and the lessons learned during their implementation, were taken into
account, within the context of the country’s development vision. Development of the GTP
has benefited from the many consultative meetings held at the Federal, Regional and local
levels with government bodies, private sector organisations, higher education institutions,
professional, women’s and youth associations, religious and civil society organisations,
opposition political parties and development partners. Many issues which are believed to
be important for achieving fundamental changes in economic growth, social development
and good governance and which will contribute to realising the objectives of the GTP are
raised and discussed in the consultations. These concerns are now adequately addressed in
the GTP. Issues that were raised and which needed greater elaboration or more emphasis
were addressed and are also presented in depth at the sector and sub sector levels described
in the GTP.
The Growth and Transformation Plan’s main objectives, strategies and targets are clearly
set out in the document. During the GTP period special emphasis will be given to
agricultural and rural development, industry, infrastructure, social and human
development, good governance and democratization. The GTP takes into account two
alternative economic growth scenarios: a base case and a high case. The base case scenario
assumes that the previous five year’s average annual GDP growth rate will be maintained.
The high case scenario assumes that the GDP and the Agricultural Value Added achieved
in 2009/10 will double by the end of the GTP period, 2014/15.
Development programs that will be implemented in the GTP five year period will have a
strong focus on improving the quality of public services provided. Thus special emphasis
is given to investments in infrastructure and in the social and human development sectors.
It is clear that implementation of the GTP will require mobilisation of considerable
financial and human resources, especially for infrastructure development. For this reason,
mobilisation of domestic financial and human resources, as well as improvements in
domestic savings are considered to be critical.
One of the distinguishing characteristics of the GTP preparation process from the previous
development plans preparation was that, a high level macro economic team was
established with the responsibility of guiding the overall preparation process.
Implementing agencies from the federal up to the regional and local levels have
participated in the planning process through their functional linkages with their respective
federal institutions. Wide and extensive consultations that are led by senior government
officials were held with stakeholders and the public at large both at federal and regional
levels. In addition, large media coverage was accorded to the draft GTP, which contributed
to raise the public awareness and participation in the process.
During the planning process, strong commitments, and participation of the private sector,
development partners, civil society organizations and the public at large are demonstrated
at all levels. It has been demonstrated in the consultation forums and the media that there is
a strong national consensus and enthusiasm among citizens with regard to GTP and its role
in eradicating poverty once and for all.
The plan preparation and approval process has been conducted based on a pre determined
time schedule, which is summarised as follows.
September-October/2009: Based on the initial directions from the government, the plan
preparation Generic Guideline, incorporating general directions, main objectives, economic
growth targets and indicators, was prepared by the Ministry of Finance and Economic
Development and circulated to Federal implementing agencies.
November-December/2009: Briefings on the initial ideas and the Generic Guideline were
given to senior government officials and directors so that a common understanding was
created as to the content and preparation processes of GTP. A circular calling for the
preparation of the GTP was then distributed to all concerned federal and regional
government institutions.
February-May/2010: Based on the Generic Guideline, preliminary draft plans of key
sectors (Agriculture and Rural development, Industrial Development, Education, Health,
and Good Governance & Capacity Building etc.) were submitted to MoFED.
June 2010: Based on the macroeconomic framework and preliminary draft sector plans
submitted to MoFED, the draft consolidated GTP was prepared and submitted to the high
level Macro Economic Team. The Macro Economic Team in turn reviewed and provided
feedback on the draft consolidated GTP and its constituent key sector plans.
July 2010: The first draft of the GTP was prepared as per the comments and directions
provided by the Macro Economic Team. Discussion paper focusing on major achievements
of PASDEP, objectives, strategic pillars and main targets of the GTP was prepared and
distributed to the pertinent regional and federal bodies who participated in the consultation
forums. At the same time, a preliminary draft of English version of the GTP document was
prepared.
August - September 2010: Country wide consultation forums were conducted on the draft
plan to refine the draft further, and create awareness among citizens, actors and
stakeholders so as to encourage their active participation not only in the preparation of the
plan but also in the subsequent implementation of the GTP. The participants in the
consultations include civil servants and government officials, elected people’s
representatives at different levels, representatives from universities and professional
associations, the private sector, associations of women, youth and the disabled, civil
2
society organizations, development partners and opposition political parties. Many useful
comments and suggestions were received during the consultations. All consultations were
led by senior government officials both at the regional and federal levels while the final
federal level consultations were headed by the Prime Minister.
October 2010: Further refinements on the draft GTP document and checking for its
internal consistency were completed by incorporating the comments and feedbacks from
the regional and federal consultations.
November 2010: The GTP document was then submitted to the Council of Ministers,
which then endorsed it together with comments and directions to be included in the final
plan. After a five day debate by the House of People’s Representatives, the document was
endorsed with motion of thanks as the Official National Plan of the country for 2010/11 to
2014/15.
The GTP is presented in ten chapters. Chapter | presents the progress and achievements of
the PASDEP. Chapter 2 contains the objectives and strategies of the five-year Growth and
Transformation Plan (2010/11-2014/15). Chapter 3 provides the macroeconomic
framework for the GTP and Chapter 4 describes the costs of and financing for the GTP.
Chapter 5 describes the strategic directions, objectives and targets for the four main
economic sectors: agriculture and rural development, industry and trade, mining and
infrastructure. Chapter 6 describes the strategic directions, objectives and targets for the
two main social sectors: education and training, and health. Chapter 7 describes strategic
directions, objectives and targets for good governance and capacity building. Chapter 8
presents strategic directions, objectives and targets for nine cross cutting sectors. Chapter 9
describes the opportunities, risks and challenges in implementing the GTP. Chapter 10
presents the monitoring and evaluation framework of the GTP.
CHAPTER 1.
NTS AND CHALLENGES UNDER PASDEP
The development policies and strategies pursued during the three year Sustainable
Development and Poverty Reduction Program (SDPRP) (2002/03-2004/05), together with
the vision expressed in and achievements realised by the SDPRP, were the foundation for
the design of the PASDEP. The PASDEP was implemented during the five year period
2005/06-2009/10. It was prepared based on MDG targets and the government's vision for
Ethiopia’s development. Its main objectives were ensuring accelerated, sustained and
broad based economic development as well as preparing the ground for the full
achievement of Ethiopia’s MDG targets by 2015. To achieve these objectives the PASDEP
was built on eight strategic pillars. These were
Building all-inclusive implementation capacity,
A massive push to accelerate economic growth,
Creating the balance between economic development and population growth,
Unleashing the potentials of Ethiopia's women,
Strengthening the infrastructural backbone of the country,
Strengthening human resource development,
Managing risk and volatility, and
8. Creating employment opportunities.
POv Pew
Based on these strategic pillars, two alternative economic growth scenarios were
considered. In the base case scenario, it was considered that to achieve the MDGs an
average economic growth rate of 7% per annum was necessary. For the high case scenario,
which aimed beyond achievement of MDGs targets, a 10% annual average economic
growth target was set so as to lay the foundation for the realization of the development
vision of the country.
1.1. MACROECONOMIC PERFORMANCE
The Ethiopian economy has shifted to a higher growth trajectory since 2003/04. This has
been sustained, and during the last five years, overall real GDP has grown rapidly at an
average of 11% per annum (See Table 1. and Figure 1. below.). Agriculture, Industry and
Services have registered an average annual growth rate of 8.4%, 10% and 14.6%,
respectively.
Table 1. Growth in Gross Domestic Product and Main Sectors Share as Percent of
GDP
Real GDP 7.0 10.0 11.0 100
Agriculture 6.0 6.4 8.4 41.6
Industry 11.0 18.0 10.0 12.9
Services 70 10.3 14.6 45.5
Table | above illustrates that, with the exception of the industrial sector, the over all and
sectoral performances achieved were well above the targets set in both the base case and
high case scenarios. This has been particularly pronounced in the service sector. Although
the growth rate in the industrial sector is below the planned target, the sector achieved a
significant average growth rate.
Figure 1. GDP Growth by Economic Sector (%)
18
16
14
= —*Agiiculture and allied
512 activities
S40 Se Industry
Qa
3 Service
s ——Real GDP
4
‘z
oO “1
2005/06 2006/07 2007/08 2008/09 2009/10
ear
The contribution (percentage share) of each of the three sectors (agriculture, industry and
service) to overall GDP at the end of the plan period was 41.6%, 12.9% and 45.5%,
respectively (See Figure 2).
Figure 2. Percentage share of GDP by Economic Sector
3
Se
SSO)
S38
percnetage
iA
iA
iA
iA
iA
iA
iA
iA
iA
A
iA
ie
iC
ie
iC
ie
Ks
be
RS
2004/05 2005/06 2006/07 7 2007/08 2008/09 2009/10
Yeat
DAgriculture and allied activities Dservice —_Dindustry
The planned targets were 43.9%, 16.5% and 39.6% for agriculture, industry and services
respectively. The actual shares were not as planned, as services achieved a higher, and
industry a lower share of GDP than planned. In terms of structural change the PASDEP
assumed that a decline in the agricultural sector’s share of GDP would be taken up by the
industrial sector. However, underperformance of the industrial sector was more than
compensated by increased growth in the service sector, indicating that the structural shift
was not, as yet, in the desired direction.
From the demand side, GDP at current market prices has increased by about 29.6 percent
per annum during the PASDEP period. At the same time, gross capital formation, total
exports and total imports, registered an annual average growth rate of 28.3, 27.1% and
27.6% respectively.
Table 2. Percentage Share of Aggregate Consumption & Savings to GDP @CMP
Total Consumption
Gross Capital Formation
Exports of Goods and Services
Imports of Goods and Services
Resource Balance E 22.7
Gross Domestic Saving 4 4.6
Owing to the increased pent up consumption demand, the domestic saving rate remained
jower than the PASDEP target. The domestic saving rate was 5.9% at the beginning of the
PASDEP period and remained at 5.5% in 2009/10. Likewise, consumption remained at
much the same level throughout the PASDEP period leaving no room for growth in saving.
This suggests that greater efforts are needed to increase the rate of domestic saving in order
to meet the growing investment needs of the country.
Figure 3. Percentage Share of Aggregate Consumption and Savings to GDP @CMP
120
100 1D Total Consumption
1D Gross Capital Formation
B Exports of Goods and Services
5 Imports of Goods and Services
Percentage
@ Resource Balance
B Gross Domestic Saving
Year
A number of policy and administrative measures were taken to improve domestic tax
revenue collections during the PASDEP period. These included strengthening the capacity
of tax collection agencies, expanding the tax identification number system throughout the
country, strengthening the value added tax system, increasing tax compliance and taking
6
stringent legal measures against tax evasion. As a result, domestic revenue achieved an
annual average growth rate of 26% surpassing the PASDEP target of 20%. However,
domestic revenues as a share of GDP has marginally declined during the same period. As
Table 3 below illustrates, total revenue as a share of GDP fell from 18.9% to 17.3% over
the plan period, with domestic revenue marginally falling from 14.6% to 14.0% over the
same period.
Table 3. Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP
Total Revenue Including Grants 18.9 177; 17.1 16.0 16.3 17.3
Domestic Revenue 14.6 14.8 12.7 12.0 12.0 14.0
Tax Revenue 11.6 10.8 10.1 9.6 8.6 113
Non-tax Revenue 3 4.1 2.6 2.4 3.3 2.8
Grants 43 2.8 44 4.0 43 3.2
Total Expenditure 23.5 22.4 20.7 18.9 17.2 18.6
Recurrent Expenditure 12.6 11.6 10.0 92: 8.1 8.4
o/w Defence 2.7 23 1.7 1.4 12 1.0
Capital Expenditure 10.9 10.7 10.7 9.7 94 10.3
Poverty Oriented expenditures 13.2 13.4 13.0 12.1 10.8 12.4
Expenditure Deficit including Grants 4.4 4.7 3.6 -2.9 -0.9 -13
Deficit Financing 4.2 47 3.6 2.9 0.9 1.3
External net 2.2 1.1 Ll 1.0 0.9 1.1
Domestic net 3.3 2.1 3.6 2.6 -0.1 0.5
Figure 4. Percentage Share of Revenue, Expenditure and Deficit to GDP @CMP
25
Total Revenu
jncluding Grants
20 Domestic Revenue
15
OTotal Expenditure
is Total Expendit
= Recurrent Expenditure
Perenetage
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
——
% —. —
External net
Domestic net
-10
Years
On the expenditure side, the government has been prudent in its fiscal management by
closely monitoring revenue performance and adjusting its spending in line with its
development priorities during the PASDEP period. In 2004/05 the share of total and
poverty oriented expenditures as a percent of GDP were 23.5% and 13.2%, respectively.
By 2009/10 the figures for each expenditure item are 18.6% and 12.4%. Further, the
proportion of budget deficit, including grants, to GDP had declined from 4.2% in 2004/05
to 1.3% by the end of 2009/10.
Although, exports have increased during the PASDEP period, the trade balance did not
improve as desired. The trade deficit widened during the period because of a significant
increase in imports, an increase necessary to sustain the high economic growth levels
achieved. (See Table 4 and Figure 5)
Table 4. Import and Export trade share of GDP (%)
Export (merchandise) 6.9 6.6 6.1 5.5 45 4.0 54
Import (merchandise) 29.5 30.3 26.3 25.5 23.8 23:3) 26.1
Trade balance 22.6 23.7 -20.2 -20.1 -20.0 -19.3 -20.9
Figure 5. Export and Import Growth (%)
40
30 Sy Ro
S ra ae
y = on
20 : RS ¥
o SS hs ~S
a . N
£ 10
@ y Y
3 Ax E
5 0 sa] Fs] =|
a 20 2009/40
-10 |
haa
lee
lee
-20
-30
Years
@ Export (Merchandise) Import (Merchandise) @ Trade Balance
In terms of monetary policy, the main objective was to achieve and maintain price and
exchange rate stability. During the last five years the government has taken measures that
curb inflationary pressures and increase the country's foreign exchange reserves. Fiscal and
monetary policy measures as well as administrative ones were used to reduce inflation to
single digit. For example, the National Bank raised the commercial banks’ reserve
requirement first from 5% to 10% and then to 15% of net deposits, and raised the
minimum deposit rate from 3% to 4%.
1.2. PERFORMANCE OF ECONOMIC AND SOCIAL SECTORS
1.2.1. Agriculture and Rural Development
Crop production: In 2004/05 the total land covered by the three main crops was 9.8 min
ha, by 2009/10 this area had increased to 11.25 mln ha. Total output increased from 119.1
mln qts in 2004/05 to 191 mln qts in 2009/10. Average productivity of these crops
increased from 12.1 qt/ha in 2004/05 to 17 qt/ha in 2009/10. To realize these increases in
production and productivity it was planned under PASDEP to supply 820,000 tons of
chemical fertilizers. The actual amount supplied was 830,000 tons.
Horticulture development: It was planned to develop 419,000 ha of fruit and vegetables
by 2010. The achievement at the end of the plan year was 152,600 ha. Besides, it was
planned to produce 27.2 mln qts and the achievement was 12.8 min qts.
Coffee development: It was planned to increase coffee production to 419,610 tons by
2009/10. In the event 341,000 tons was produced, 81.3% of the target.
Livestock production: The PASDEP target was to increase meat production to 837,000
tons; but only 605,000 tons of meat was produced, 72.3% of the planned target. The target
was to increase milk production to 3.391 mln tons; and 96.2% of the planned target was
achieved with 3.261 mln tons of milk produced in 2009/10.
In terms of animal health services, it was planned that the number of veterinary clinics
would be increased to 3,600; the achievement was 2,275, 63.2% of the target. The target
for livestock vaccine was to supply 289 mIn doses in 2009/10; supply achieved was 96 mln
doses, 33% of the target. PASDEP aimed to increase the number of pastoralist and farmer
trainees on basic veterinary service delivery to 3,000 and 4,144 trainees (138%) completed
this training by the end of 2009/10.
Agricultural extension services: during PASDEP it was planned to train 51,101 graduates
in the fields of plant, animal and natural resource sciences and cooperatives development
to support the agricultural extension services, at agricultural and vocational training
colleges. At the end of the plan period 52,023 graduates had completed training in these
areas. During the PASDEP period, it was planned to increase the number of minimum
package trainees to 10.39 mln; the achievement was 12.7 mln. Although the aim was to
increase the share of women trainees to 30% of the total, the percentage realised was
18.5%. It was planned to increase household family package trainees to 4.5 mln by the end
of the plan period and the achievement was 5.4 mln, which is higher than the planned
target by 12.5%
It was planned to increase the number of farmers training centres to 18,000; the number
actually increased by 9,265 centres, 51.5% of the target. The necessary equipments were
also supplied for these newly built training centres.
Agricultural research: Encouraging results have been achieved in agricultural research in
the three agro-ecological zones on crop, livestock, soil and water conservation, forest
development and agricultural extension practices. Some 409 new seed technologies have
been issued in crop development; 99 new breads in livestock and 91 different research
outputs were developed on soil and water conservation works.
Natural resource development and utilization: Land right certificates were issued to
12.6 mln rural household heads; 185% above the target of 6.8 mln household heads. It was
planned to develop 58,750 hectares by establishing 470,000 water harvesting schemes and
9
small irrigation systems; by the end of the plan period 122,430 hectares of land were
developed by these means. During the PASDEP period, 853, 000 ha of land serviced by
small scale irrigation systems was developed well in excess of the target of 487,000 ha.
Land rehabilitated by water and soil conservation: The area of land rehabilitated by
water and soil conservation works during PASDEP was increased from 0.82 mln ha in
2004/05 to 3.77 mln ha in 2009/10. With regard to forest conservation and management,
the country’s forest coverage was increased to 8.8 mln ha from 4.1 mln in 2004/05. And at
the end of the plan period the country’s forest coverage reached 6.1 min ha.
Food security and safety net programs: Food security interventions aimed to resettle
161,108 voluntary households of which 91,317 (56.68%) households were resettled. As of
2009/10 a cumulative of 286,920 households were food secure in resettlement areas.
Productive safety net programs benefited 730,494 beneficiaries of the targeted 1.5mln. In
290 woredas the number of farmers and pastoralists who were food insecure and needed
assistance was 7.1 mln in 2009/10.
Forest conservation and management: The country’s forest coverage was increased to
8.8 mln ha from 4.1 min. And at the end of the plan period the country’s forest coverage
was 6.058 mln ha.
Agricultural market: 830,000 tons of fertilizer was supplied during the plan against the
target of 820,000 tons. The Ethiopian Seed Enterprise and other improved seed suppliers
supplied 527,779 qt (doesn’t include the supply by the regions) of improved seeds, against
the target of 1.8 mln qt.
Agricultural cooperatives: In 2005/06 there were 20,437 cooperatives with a capital of
ETB 822 min and 3,642,602 members. By the end of 2009/10 the number of cooperatives
was 33,636, their capital had increased to 1 bln birr and their membership had grown to
5,899,761. Moreover, 212 cooperative unions with 3,826 member cooperatives and a total
capital of ETB 185,472,337 were established during the plan period.
Agricultural exports: The revenue generated from flower exports increased from USD
12.6 mln in 2004/05 to USD 170 min in 2009/10. In the same period, the revenue
generated from fruit and vegetable exports increased from USD 14.07 mln to USD 31.7.
357.000 live animals were exported, a substantial increase on the target of 213,000.
319,647 tons of coffee was exported against the target of 323,000 tons. Overall, 1,225,000
tons of agricultural goods generating USD 1.55 bln were exported in the plan period
against targets of 1,183,000 tons and USD 1.517 bln, respectively.
1.2.2. Trade and Industry Development
The Trade Sector
With regard to trade regulation, a trade registration and licensing system was introduced
throughout the country, from federal to kebele levels. Generally, measures were taken to
ensure competitive trade practices and protect consumers from unfair trade practices.
During the PASDEP period a lot has been done in the process of trade partnerships and
negotiations to make the country benefit more and hence create new market opportunities
and increase foreign direct investment flow. The preparation for the WTO accession
process was finalized. Negotiations were conducted to strengthen regional trade
partnerships (Inter-Governmental Authority on Development, Sana’a Forum, The Common
Market for Eastern and Southern Africa (COMESA) and the COMESA-East African
10
Community-Southern African Development Community Tripartite). In addition Economic
Partnership Agreement (EPA) was reached with the European Union.
The Industry Sector
During the PASDEP period support was given to micro, small, medium and large scale
industries and, particularly, to industries that used agricultural inputs and were capable of
generating foreign exchange.
Micro and small scale enterprise development: As a part of PASDEP, the government
took a number of initiatives to promote and expand micro and small enterprise
development in different regions and city administrations. The PASDEP target was to
create 1.5 million new job opportunities in the sub-sector which was more or less fully
achieved during the plan period. Substantial support was provided including increased
supply of credit, training, provision of production and market facilities, technology support
and provision of small enterprise information services.
Textile and garment industries: During the PASDEP period textile and garment
industries were expected to generate export earnings of USD 500 min. At the end of the
plan period, the sub sector had, however, only generated export revenues amounting to
USD 21.8 mln, far lower than the target. The low level of development of the sub-sector at
the start of the PASDEP period is one of the main reasons for this under performance.
There is a clear need to increase efforts and potential to improve performance of the textile
and garment industries.
It was planned during PASDEP to attract investment in new industrial factories worth USD
1.6 bln. As a result a number of investments were made, facilities developed and
production contributing to exports commenced. These included: 2 weaving factories with a
production capacity of 10,500 tons per annum; 3 factories with a production capacity of
16.5 mln metres of garments per annum; and, 10 sewing factories with an annual
production capacity of 9.3 mln items of clothing. Those investments that, at the end of the
plan period, had made investments, initiated projects and, in some cases, commenced
production included: 4 factories with a production capacity of 8,225 ton trade per annum: 3
factories with the production capacity of 255 mln metre garments per annum; 3 factories
producing 33 mln metres of processed garments; and | factory with a production capacity
of 10 mln items of clothing. Those investments that had finalised the preparation and
started the investment process included: 5 weaving factories with a total capacity of 84,875
tons per annum: 4 factories with annual production of 61 mln metre gray garments: 4
factories producing processed garments of 113 mln metres; and 2 factories with a
production capacity of over 21.6 mln items of clothing. Other investors showed interest
and pre investment processes are underway.
Leather and leather products: Leather and leather products (shoes and other leather
products) were expected to generate USD 221 mln in export earnings. In the event USD
75.73 mln was earned by the end of 2009/10. It was planned to upgrade 74 unfinished
leather processing factories to production of finished leather products but, in the event only
11 factories were upgraded, produced shoes and exported during the planning period;
14.9% of the target. As part of government’s efforts to develop capacity, the Leather
Industry Technology Institute offered training in a 10+3 diploma and 1 year certificate
diploma program levels and also some tailor made training courses on leather processing,
shoe and leather products making technologies based on customers’ requests.
1
Sugar: During the PASDEP period, sugar industry development works included a
feasibility study, irrigation and road works, sugar cane plantation development, housing
development, construction and expansion of factories, and production of sugar and ethanol.
It was planned to finalize the establishment of two new sugar factories in Wonji and
Tenedaho and sugar factory expansion works in Metehara and Fincha. However, in Wonjji,
Tendaho and Fincha the percentage completion during the plan was 30%, 25% and 40%,
respectively. It was planned to establish a new sugar factory capable of crushing 8,000 tons
of sugar cane per day and, in this case, the target has been fully achieved. Investment
licenses have been granted to plant sugar cane on 20,000 ha of land and 7,200 ha of land
was planted. The existing three sugar factories were expected to produce 1,510,683 tons of
sugar and 39,697 m? of ethanol. Actual production over the PASDEP period was 1,468,915
tons of sugar and 30,124 m> ethanol.
Cement: The cement industry was expected to produce 4.7 mln tons of cement per year.
However, the industry achieved an output of only 1.17 mln tons of cement per annum. This
result suggests the need to increase the production and supply capacity of cement in order
to meet the needs of the fast growing construction industry.During the early years of
PASDEP implementation there was a dramatic increase in the gap between the demand for
and supply of cement. This put considerable pressure on the construction sector. To ease
the situation, short term and long term intervention plans were designed and implemented.
The short term intervention plan involved importation of cement and construction of small
scale cement industries. The long term plan involves development of new high capacity
cement producing factories. Implementation of this plan is being closely monitored.
Metal & metal engineering: In the metal and metal engineering industries preliminary
measures were taken to unleash their full potential contribution to the country’s
development efforts. To support exporting industries, spare parts were produced locally for
four textile and two leather industries. In addition, a system was put in place that allows the
production of spare parts locally for sugar and cement as well as other manufacturing
industries.
Training has been provided on non-destructive testing, funded by the International Atomic
Agency which also supported the purchase of equipment.
Chemical industries: During the PASDEP period, support was provided to chemical
industries producing inputs for leather and textile industries measures, to address the
challenges they were facing.
Pharmaceutical industries: A strategic plan was developed for pharmaceutical industries
to support producers of drugs and pharmaceutical equipment to allow them to import their
raw material and other inputs duty free. Steps were taken to ensure that government
procurement systems give precedence to local pharmaceutical companies so as to
encourage local industry. In some cases technical assistance and consultancy support was
also provided to pharmaceutical companies to fulfil international drug producing standards
and quality.
Agro-processing industries: During the PASDEP period, an investment proposal was
prepared for the government for agro-processing industries such as the sugar industry and
for development of rubber tree. As a result, 3 companies created partnerships with foreign
counterparts. 16 potential export projects have been designed and an assistance framework
developed to help some of the projects start investment; some are now in the preparation
process. Lastly, a master plan study for cereal, oil seed and coffee development has been
prepared.
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1.2.3. Mining
The mining sector realised some significant achievements during the PASDEP period.
These include extension of the coverage of country wide geological information, hydro-
geological mapping, geophysics (gravity) studies and engineering geology mapping from
38%, 27%, 65% and 6.9% in 2004/05 to 51%, 42%, 80% and 10% in 2009/10,
respectively. It was planned to identify and delineate 30 areas of mineral deposits, while 34
such areas were identified and delineated by the end of the planning period. Annual
investment in the mining sector increased from ETB 62 mln in 2004/05 to ETB 12.7 bln in
2009/10. Revenue generated by the sector increased from ETB 20 mln in 2004/05 to ETB
50.1 min in 2009/10. Mining royalty revenues reached ETB 130 mln in 2009/10. Gold and
tantalum exports increased from 3,439 kg and 92.5 tons in 2004/05 to 3907 kg and 202
tons respectively in 2009/10.
During the plan period it was expected that 5,000 kg of gold, purchased by the National
Bank of Ethiopia from artisan miners, could be sold to foreign markets by the NBE. By the
end of 2009/10, 5250 kgs of gold had been purchased by the NBE and USD 129 min
received by NBE from sales. An additional USD 2 mln was generated by sales of 4,500 kg
of gemstones to foreign markets.
1.2.4. Road Development
With regard to federal roads, the plan for the 2004/05-2009/10 period was to reinforce 852
km of roads, upgrade 4,039 km, construct 2,769 km and execute temporary or heavy
maintenance of 3,660 km of existing roads. Thus the plan was to construct or maintain a
total of 11320 kms of federal roads, and overall 96% of these PASDEP targets were
realised. In addition, 40 new federal roads were opened for traffic and more than 11,000
km of road length added to the existing network. As a result, the total road length increased
from 36,400 km in 2004/05 to 48.800 km in 2009/10. These figures exclude Woreda roads.
The proportion of roads assessed objectively as being in good condition increased from
64% in 2004/05 to 81% in 2009/10. The time taken, on average country-wide, to reach all
weather roads has decreased from 5.7 hours in 2004/05 to 3.7 hours in 2009/10. In general,
the performance of the road sector during the PASDEP period was remarkable.
1.2.5. Rail Network, Dry Port and Transport
Rail Network: For the development of the national rail network, a feasibility study was
conducted using latest satellite mapping technology for three rail corridors with a total
length of 2,359 kms. In addition socio-economic and environmental studies of the corridors
are underway.
Dry Port: The construction of the Mojo and Semera dry ports was completed. A bilateral
agreement was reached with the government of Djibouti for a joint freight service to
further facilitate export and import of commodities. A cargo terminal has been built
on164,238 m° land made available by the government of Djibouti. The terminal has
commenced services and will ease the transit of export and import trade.
Road transport: During 2004/5-2009/10 a road safety council was established; on main
transport corridor areas with a record of high accident levels, traffic control was
strengthened; measures were taken to ensure that accident victims receive immediate
medical attention and a mass media public awareness campaign was conducted during the
plan period. As a result of these measures, deaths due to road traffic accidents decreased
from 104 in 2004/05 to 52 per 10,000 accidents at the end of the plan period. Private
13
companies were contracted to ensure technical inspection of vehicles. Moreover to address
the transportation challenges facing the capital, Addis Ababa, the possibility of introducing
mass transport system has been explored.
Air Transport: A cargo terminal for storage of perishable agricultural products was
constructed at Bole International Airport and a master plan for the airport was prepared.
During PASDEP it was planned to construct new or expanded airports at seven locations.
At Jijiga, Humera and Assosa the air ports’ runway construction is completed. At Jima,
Jinka, Kombolcha and Semera runway construction works are at different levels of
construction and pre-construction phases. Mekele and Bahir Dar airports are operating to
International Standards. The PASDEP strategy to increase the number of passengers and
the amount of cargo has resulted in an increase of 1.55 mln in 2004/05 to 3.128 mln in
2009/10 of the former and 1.42 bln ton/kilometres in 2004/05 to 2.84 bin in 2009/10 of the
latter.
1.2.6. Telecommunications
During the PASDEP period the mobile telecommunications network capacity was
increased from 0.5 min users in 2005/06 to 25 min in 2009/10. The number of
telecommunication customers increased from 0.56 mln in 2004/05 to 6.5 mln in 2009/10.
In the Universal Access Program, a CDMA wireless network which covers 90% of the
country has successfully been installed and the system enables voice and data service
availability to every kebele. The number of fixed line and mobile phone users was 0.62
mln and 0.02 mln, respectively in 2004/05 and these increased to | min and 0.187 mln,
respectively in 2009/10. The percentage of the rural population with access (within 5
kilometres radius) to a telephone service increased from 13% in 2004/05 to 62.14% in
2009/10.
To connect the country’s main communication infrastructure, about 10,000 km of fibre
optic cable (with high level information transmission capacity) was installed and has
commenced rendering services. A National Network Operation Centre that enables the
central administration of the network was established and the capacity to control service
quality standard and management of service failure information was put in place.
1.2.7. Energy
The construction of new hydropower plants, including Tekeze, Gilgel Gibe II and Tana
Belese plants, enhanced Ethiopia’s hydropower generating capacity. In 2004/05 the total
hydropower generation capacity country-wide was 714 MW. The PASDEP target was to
increase power generation capacity to 3.270 MW by the end of 2009/10. The power
generation capacity actually achieved was 2,000 MW at the end of 2009/10 amounting to
62% of the target. The total power generated in 2004/05 was 3,112 GWH. It was planned
to generate 10,907 GWH by the end of 2009/10, however, only 7,689 GWH (71%) was
generated. During the PASDEP period, to conserve electric energy, 4.6 mln energy saving
bulbs were distributed to customers. It was planned to increase power transmission lines
constructed from 8,380 km in 2004/05 to 14,792 km in 2009/10.The total power
transmission line constructed was 12,147 km in 2009/10, which is 82% accomplishment of
the PASDEP targets. It was also planned to increase power substation lines constructed
from 25,000 km in 2004/05 to 136,320 km in 2009/10. By the end of 2009/10, the total
power substation lines constructed were 126,038 km, 93% of the target.
14
During the plan period the rural electrification program aimed to increase the number of
towns and rural villages which have access to electric power from 648 to 6,000.
Accordingly 5,163 towns and rural villages had gained access to electricity by 2009/10
amounting to a 78% realisation of the PASDEP target. The total number of registered
customers of electricity increased from 952,000 in 2004/05 to 2 min in 2009/10, 77% of
the planned target. It was also planned during the PASDEP period to distribute 3 min
improved energy saving biomass ovens and these have been distributed as planned. As a
result, it is estimated that about 26,176 ha of forest have been conserved from deforestation
and carbon dioxide emissions have been mitigated by about 36,575 tons. About 10,081
rural families have benefited from distribution of home solar systems and 238 Rural Health
Stations and First Cycle Schools have been provided with solar electric power. During the
plan, the petroleum reserve storage capacity increased from 279,800 m” to 369,800m*,
1.2.8. Water and Irrigation Development
Water supply: During PASDEP access to potable water increased from 35% to 65.8% in
rural areas and from 80% to 91.5% in urban areas. Overall nationally, access to potable
water has increased from 36% to 68.5%. The increase in rural access to potable water over
the five year period is attributable to the provision of 793 very deep wells, 3,353 medium
deep wells, 8,762 hand dug wells, 8,195 water fountain enhancement works, 478 water
harvesting ponds, 3,294 rain water collection and, 7 run-off water harvesting systems. The
number of malfunctioning water stations was reduced from 30% of the total to 20% in the
plan period.
Irrigation: Irrigation development measures were taken during PASDEP to put in place
small, medium and large scale irrigation schemes. At the start of 2004/05 it was planned to
carry out irrigation scheme pre feasibility studies covering 177,998 ha, detailed studies for
464,051 ha, and initiation of irrigation works over 430,061 ha of land. The achievement by
the end of the PASDEP period was 178,000 ha, 462,114 ha, and, 65,243 ha of land for
small, medium and large scale irrigation schemes, respectively.
1.2.9. Construction and Urban Development
Urban Development: During 2004/05-2009/10, it was planned to construct 396,000 new
houses, establish 10,000 small urban-based enterprises, and create job opportunities for
200,000 urban city dwellers. By the end of the PASDEP period 213,000 houses had been
built in various regions and city administrations. In addition as a result of the housing
development program, 4,306 small construction enterprises were established, while
176,000 permanent and temporary jobs were created. Of the houses constructed 72,000
were handed over to the beneficiaries and ETB 931 mln was received in pre payment from
beneficiaries for the houses.
A program to build capacity for decentralized service delivery was initiated within 18
cities with a total outlay of ETB 142.1 mln. The project completed improvements to 14
city markets as well as drainage and road rehabilitation projects and purchases of vehicles
and equipment. Through the Urban Local Government Development Project infrastructure
development works with a total outlay of USD 150 mln (funded by the World Bank) were
implemented in 19 major cities, including Addis Ababa. As part of this initiative and
additional USD 53 mln was provided by regional states and towns and this was allocated to
construction of cobble stone interior roads, sewer line construction, small enterprises
production and market place facilities, improvement of market places, development of
15
parks and water supply and sanitation works. A total of Birr 997 million was invested on
these infrastructure creating 51,905 job opportunities through this initiative.
Construction industry development: In order to develop the capacity of domestic private
contractors providing construction services 752 new contractors were given licenses and
provided with training. Financial support and training were provided to these construction
companies to enhance their capacity. Capacity building services were provided to 147
experts organised as 43 consulting firms and, as a result, the number of consultants
working in the construction industry increased from 177 in 2004/05 to 254 in 2009/10.
Permits to import machineries with long term payment modalities were awarded to
increase the supply of construction machineries and address transportation problems.
During the planning period 1,075 freight transportation vehicles, 1,000 dump trucks, 350
loaders, 100 rollers and 25 low-bed trucks were imported and distributed to domestic
private companies on credit modalities. In addition 65 crushers and 125 loaders were
distributed to companies of gravel suppliers.
To address the shortage of construction materials and ensure sustainability for the fast
growing construction industry, the government imported cement, steel and other
construction material, while encouraging domestic production of these items in the
medium term. As a result very large quantities of cement and steel were purchased and
distributed locally during the plan period. Many micro and small scale enterprises received
training, financial and administrative support to increase their role in the supply of
particularly local construction materials.
1.2.10. Education
Primary School Education (Grade 1-8): The number of primary schools increased from
16,513 to 25,217 in the PASDEP period. Consequently, the number of classrooms
increased from 161,795 to 247,698. The gross enrolment rate for grades 1-8 increased from
79.8% to 94.2% and the primary net enrolment rate increased from 68.5% to 87.9%. The
disparity in enrolment rates between male and female students gross enrolment ratio
narrowed from 0.75:1 to 0.93:1.
Secondary School Education (Grade 9-12): There were 706 secondary schools in
2004/05 and this number increased to 1,202 in 2009/10. In 2004/05 the gross enrolment
ratio for secondary schools (9-10) was 27.3%: it increased to 39.7% in 2010. The Net
Enrolment Rate for secondary schools (9-10) increased from 11.8% to 12.6% during the
same period.
Education Quality: The primary school (Grade 1-8) student-teacher ratio decreased to
57:1 by 2009/10 and the secondary school student-teacher ratio reached 43:1. The student-
class ratio, in primary schools (Grade 1-8), fell from 69:1 in 2004/05 to 62:1 in
2009/10,while in secondary education (Grade 9-12) it fell from 78:1 to 68:1 in the same
period.
Technical and Vocational Education and Training: The number of trainees undertaking
TVET increased from 106,336 to 717,603 during the plan period. More than 50% of TVET
trainees during PASDEP were female. The number of government TVET facilities reached
253 in 2009/10.
Higher Education: The number of undergraduate students in public universities was
78,232 in 2004/05. This increased to 185,788 in 2009/10. The proportion of undergraduate
female to male students in the public universities increased from 24% to 29%, and the
number of students in graduate school increased from 3,604 to 9,761. The proportion of
16
female to male students at the graduate school increased from 9% to 11.3%. During the
PASDEP period the number of public universities increased by 13, and the total is now 22.
With regard to building the capacity of university teachers, the number of university
teachers increased from 4,847 to 11,238 in the plan period. Of these 5,706 (50.8%) hold a
first degree, 4,528 (40.3%) hold a second degree and 1,004 (8.9%) hold a PhD.
1.2.11. Health
The main objectives of the health sector component of the PASDEP plan were to reduce
child mortality, improve mothers’ health and combat the spread and prevalence of
HIV/AIDS, TB and malaria. To achieve these strategic objectives and to ensure full health
service coverage in all rural kebeles, a health extension strategy was designed and
implemented. During the PASDEP period one of its targets was to train 30,000 health
extension workers. In the event, 33,819 were trained and deployed in rural kebeles all over
the country. The number of health posts and health centres increased from 4,211 and 644
in 2004/05 to 14,416 and 1,787 in 2009/10, respectively. The number of public hospitals
increased from 79 to 111 in the plan period.
During the PASDEP period the number of women of child bearing age and using
contraceptives increased from 15% to 32%, prenatal service coverage increased from 46%
to 63%, postnatal service coverage increased from 15% to 30%, and trained birth assisted
delivery increased from 13% to 25% - although the target was to reach 32%. In general the
number of deaths of mothers which were related to delivery decreased from 871/100,000 in
2005 to 590/100,000 in 2010. The under-five mortality rate decreased from 123/1000 to
101/1000.
By 2009/10 about 10 mln households living in malaria infested areas had received 2
mosquito bed nets each and by this means the coverage of mosquito net usage has
increased from 1% to 100% in the plan period. Also during the PASDEP period, the cure
rate for TB increased from 65% to 67% and the incidence of HIV decreased from 0.68 to
0.28. The PASDEP target was to halt the HIV prevalence rate at 3.5% of the population
and a better result was achieved with the prevalence rate dropping to 2.4% in 2009/10. In
general, the health service coverage increased from 30% to 89% during PASDEP.
1.3. CROSS CUTTING SECTORS
Women and Children: The government has placed strong emphasis on the participation
of women in the political, economic and social affairs during the PASDEP period. In this
respect, following the enactment of the national policy on Ethiopian women,
organizational structures responsible for women’s affairs were strengthened at federal,
regional, and local levels. The family law and criminal were amended to fully ensure the
rights of women.
Efforts have also been undertaken to ensure the benefits of women in economic growth and
social development. For instance the participations and benefits of women in agricultural
packages were significantly increased. To ensure that equal benefits from land rights
accrue to husbands and wives, land utilization certificates bearing both husband’s and
wife’s name are now being issued by regional governments. In food security programs
vulnerable children and female headed households were given priorities.
Similarly, in urban areas women were supported to organize themselves under micro and
small enterprises so as to enhance their economic empowerment. The integrated housing
development project which was launched in 2003/04 gave precedence to female applicants
17
for 20-30% of newly built houses and for the remaining 70% of houses, women competed
equally with males.
Youth and Sports: During the PASDEP period, a total of, 3,435,049 youths participated
in various training sessions. More than 708,116 youths received training in management
skills and 444,595 youth association organizers received training for the preparation and
design of strategic plans, finance management and administration and related subjects.
To organize and support sport associations 200 leaders were trained, 11,193 sport
associations were established from national to kebele level of which 26 were established
and registered at national level. To expand and strengthen sport and fulfil communities’
training and public sport ground needs, 7,567 different sports grounds were created in
suitable locations.
Culture and Tourism: During the PASDEP period, the average annual number of tourists
visiting Ethiopia was 324,666 and they generated annual average revenues of ETB 1.61
bln. This achievement represents an increase in the annual average number of tourists and
revenue generated of 21% and 16.3%, respectively. Specific initiatives undertaken during
the five year period included strengthening of wild life conservation areas, expanding
infrastructure and tourist facilities, improving national parks management and control, and
giving particular attention to community tourism. These initiatives resulted in the
establishment of facilities for national parks at Alateshi, Borena Sainte, Maze, Chebera
Churchura, Kafeta Sheraro and Gerale. Border demarcation of wildlife control areas was
completed for Simien Mountains National Park, Bale Mountains National Park, Senkele
rhino shelter, Shigesha and Tulu lodge. At the Simien Mountains National Park 147
households were voluntarily resettled to a pre-arranged settlement site. Two investors have
built lodges at Awash and Simien mountains national parks that contribute to expansion of
the available facilities and create an encouraging environment for more tourism. At
Senkele a rhino shelter recreation centre has been built and, in schools which are close to
wildlife conservation areas, nine natural resources conservation clubs have been
strengthened and given awareness creation training related for wildlife development and
protection.
Science and Technology: The national science and technology policy document was
reviewed, revised and presented to government, taking into account the current situation
and technological developments. A database was established that identifies science and
technology related capacity building requirements. To build national research capacity and
support active researchers, training was given to young researchers and research
institutions. Weekly radio programs and printed information sheets entitled “From science
and technology archive-kesaynese mahider’ have been distributed to enhance awareness of
and develop interest in science and technology issues.
Environment: A woreda environment management planning manual was prepared. The
manual aims to improve rural environments, contribute to sustainable development,
improve living standards and ensure gender equality. About 1,450 environmental experts
received training on environmental management planning based on the manual. During
PASDEP the target was that more than 125 woredas prepare an environmental
management plan; by the end of 2009/10, 116 woredas had prepared and implemented
environment management plans. A dry waste management strategy was prepared and a
related proclamation was issued. Awareness creation training on the dry waste
management proclamation was given to 65 experts’, while 12 environment impact
assessment manuals were prepared and made available.
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1.4. GOOD GOVERNANCE AND DEMOCRATIZATION
The good governance and democratisation strategies adopted during PASDEP aimed to
build the capacity of the civil service to strengthen key public services that support and
enable democratic institutions, improve service delivery in the same areas, and continue to
strengthen the ongoing democratisation process. The democratic institutions addressed
included those created before 2004/05 such as the Ombudsman, Human Rights
Commission and Anti Corruption Commission. These organisations were established to
monitor the system for administration of justice, provide social accountability and to
ensure a sustainable, transparent and accountable public administration.
The main focus of the five year plan was to give woreda administrations increased
authority and responsibility and grant city administrations’ and mayors’ offices an
appropriate right for self administration. Within an overall objective of ensuring delivery
of public services of high quality to the people, the focus has been to enhance the PASDEP
implementation capacity at the local administrative level, address the shortage of skilled
manpower, and improve the rural communication infrastructure. The governments’
strategies to fight corrupt practices, among citizens and public servants show encouraging
signs of improvement in terms of identifying corrupt persons, practices and organisations
and bringing them before to the courts.
Awareness creation sessions were provided for those people engaged in the PASDEP
preparation and monitoring with the aim of building public support and confidence through
citizens’ participation in the PASDEP preparation and implementation initiatives. A
business process reengineering exercise was carried out by every government agency, as
well as by woreda and kebele administrations, to improve public service delivery and
ensure transparency of operations and good governance.
Extensive capacity building programs have been implemented to strengthen the efficiency
and accountability of the justice system with significant achievements during the planning
period. Awareness creation workshops were conducted to address problems within the
justice system. A conflict prevention and resolution strategy was designed and
implemented. A number of measures were also undertaken to strengthen relations between
regional governments so as to build a strong and stable federal democratic system. Cases
related to human rights and administrative biases were given precedence in the decision
making process so that appropriate solutions could be quickly put in place.
1.5. CHALLENGES AND GOOD PRACTICE IN IMPLEMENTING THE PASDEP
1.5.1. Major Challenges Encountered
Implementation capacity: There were capacity constraints among leaders and public
servants, at different administrative levels, involved in key aspects of PASDEP
implementation. To address this challenge during PASDEP, the government launched a
number of process reengineering and training programs to improve skills and ensure
appropriate implementation capacity.
Finance mobilisation: Low mobilization of domestic financial resources was another
implementation challenge encountered during PASDEP. Of course domestic revenue and
particularly tax revenue have been increasing over the years following the reform and
administrative measures taken by the government. Yet they remain low compared to the
requirements of the development programs of the country. A related constraint that
contributed to difficulties in mobilising adequate resources was the low level of domestic
19
savings needed to support the huge demand for investment required for the country’s
accelerating growth and development.
Inflation: A major challenge encountered during the implementation of PASDEP was a
significant increase in inflation. This was a potentially serious challenge to maintaining the
macroeconomic stability. The government reacted in time with effective fiscal and
monetary policies as well as administrative measures to reduce inflation to single figures.
Rain: In some areas of the country, delayed arrival of rainy seasons, early withdrawal and
poor distribution of rain were challenges from which important lessons have been gained.
Industrial sector: The under performance of the industrial sector was due to inadequate
technical and managerial skills in the sector, foreign exchange shortages to import essential
raw materials, spare parts and other inputs, power disruptions, constraints of access to
efficient and effective credit services, and power disruptions..
1.5.2. Good Practices Learned
The lessons drawn from the implementation of PASDEP and which formed one of the
inputs to the design of the 2009/10-2014/15 Growth and Transformation Plan (GTP) are
the following.
Leadership, management and organisation: Many useful experiences have been gained
during PASDEP on leading and managing the economy, on how to coordinate and
mobilize the public at large, the private sector and non government organizations for
accelerated and sustained growth.
Agricultural productivity, production and scaling-up ‘best practices’: During
PASDEP, a number of model farmers who registered very high levels of productivity and
production have emerged. The “best practices” of these model farmers have been analysed
and documented for scaling up tothe rest of the other farmers during GTP period. This is
expected to increase productivity and production of most of farmers, and bring them closer
to the performance of the model farmers.
Mobilising domestic resources: Significant experiences are gained during PASDEP as to
how best to mobilize domestic resources and as to how to use domestic capacity most
effectively to accomplish developmental interventions. These experiences are now
integrated into the strategies and programs of the GTP for the next five years.
Good governance: The introduction of the good governance package in the PASDEP
resulted in a range of key interventions that contributed significantly to human
development, democratization, enhancing peoples’ participation, building well integrated
institutional capacity building and ensuring transparency and accountability. The next five
year plan will build on and expand the good governance initiatives.
Industrialisation: As there was not significant growth in the industry sector and more
specifically in the manufacturing sub-sector, the lesson is taken onboard that, in the next
five years, more must be done to increase the percentage share of the industrial sector in
GDP.
Social sector and infrastructure: Remarkable achievements have been realised in the
PASDEP period with regard to significantly increasing access to infrastructure and social
services, particularly education and health services. Thus consolidating the achievements
gained so far in terms of expanding infrastructure and social services and improving the
quality of social services and infrastructure have stood out as one of the pillar strategies of
GTP.
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CHAPTER 2.
BASIS, OBJECTIVES AND STRATEGIC PILLARS OF THE GTP
2.1. BASIS OF GROWTH AND TRANSFORMATION PLAN
The country’s vision, the achievements of PASDEP, and the lessons drawn from its
implementation, were the basis for formulation of the next five year (2010/11-2014/15)
Growth and Transformation Plan (GTP). Factors which constrained growth and external
shocks were taken into account in the formulation of the GTP.
Ethiopia’s vision which guides the GTP is:
“to become a country where democratic rule, good-governance and social
justice reign, upon the involvement and free will of its peoples, and once
extricating itself from poverty to reach the level of a middle-income
economy as of 2020-2023.”
The country’s vision specifically on economic sector includes:
“building an economy which has a modern and productive agricultural
sector with enhanced technology and an industrial sector that plays a
leading role in the economy, sustaining economic development and
securing social justice and increasing per capita income of the citizens so
as to reach the level of those in middle-income countries.”
From 2003/04, the economy shifted to a higher growth trajectory and the growth
momentum was sustained during the PASDEP period. Infrastructure development and
social services have expanded. The participation of private investors and the community in
general was very substantial. Domestic resource mobilization increased the capacity of the
country to finance development projects itself. The process of laying-out a foundation for
democracy and good governance was given due attention in reform programs undertaken
during the PASDEP period.
Among the major challenges encountered during the PASDEP implementation period were
the high inflation pressures on the balance of payments; the inadequate levels of, and
constraining factors in, both official development assistance and a lower level of domestic
revenue collection than expected, (which led to difficulties in mobilizing financial
resources to meet the growing development needs of the country); and the unpredictability
of rainfall.
The GTP will contribute to achievement of Ethiopia’s vision and to sustaining rapid and
broad based economic growth. The experiences gained in resolving challenges that arose
during, and lessons learned from, the implementation of the PASDEP were a starting point
for formulation of the GTP. In summary, the overall objective of the GTP, over the five
year period, is to sustain broad based, fast, and equitable economic growth so as to
eradicate poverty in due course.
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2.2. OBJECTIVES OF THE PLAN
The GTP has the following major objectives.
1. Maintain at least an average real GDP growth rate of 11% and attain MDGs;
2. Expand and ensure the qualities of education and health services and achieve
MDGs in the social sector;
3. Establish suitable conditions for sustainable nation building through the creation of
a stable democratic and developmental state; and
4. Ensure the sustainability of growth by realizing all the above objectives within a
stable macroeconomic framework.
2.3. STRATEGIC PILLARS
Ethiopia’s objectives and strategies for sustaining rapid and broad-based economic growth
path are dependent on the following GTP’s strategic pillars.
1. Sustaining rapid and equitable economic growth,
Maintaining agriculture as major source of economic growth,
Creating conditions for the industry to play key role in the economy,
Enhancing expansion and quality of infrastructure development,
Enhancing expansion and quality of social development,
Aree wy
Building capacity and deepen good governance, and
7. Promote gender and youth empowerment and equity.
Each of the strategic pillars is elaborated as follows.
2.3.1 Sustaining rapid and equitable economic growth
In order to achieve the vision of the country and, in due course, eradicate poverty and so
improve the livelihood of citizens, it is imperative to sustain the higher economic growth
of the last 5 years and beyond. For this reason, investments in growth enhancing sectors
such as infrastructure and social sectors will continue at a larger scale. Economic growth is
central in creating growing employment opportunities and Ethiopia’s transformation into a
middle income country.
The agricultural sector will continue to be the major driver of economic growth. Industrial
growth will be given particular focus. Rapid growth of an industrial sector that increases
the competitiveness of Ethiopia’s exports and results in import substitution will be
encouraged. This approach is expected to result in the rapid and broad based economic
growth that will provide a foundation for structural transformation. The government’s
efforts to eradicate poverty and create employment will be pursued by sustaining rapid and
broad based economic growth in a more coordinated and structured manner.
2.3.2 Maintaining agriculture as a major source of economic growth
The experiences gained from the agricultural development program, and lessons drawn
from implementation of the PASDEP, were an input to the GTP agricultural development
strategy. This strategy will support strongly the intensified production of marketable farm
products for domestic and export markets, by small farm holders and private agricultural
22
investors. Fundamentals of the strategy include a shift to production of high value crops
with a special focus on potential high productivity areas, intensified commercialisation,
and support for development of large-scale commercial agriculture, where feasible. The
commercialisation of smallholder farming will continue to be the major source of
agricultural growth. Concerted support will be given to increase private investment in large
commercial farms too. A range of public investments will be undertaken to scale-up the
successes realised so far. Further strategies include development of a more transparent and
efficient agricultural marketing system and increased investment in marketing
infrastructure.
To ensure that agriculture becomes the main source of growth for the next five years the
key strategy that will be pursued concerns scaling up of best practices of model small
holder farmers. Thus the best technologies and practices of the model farmers will be
scaled up for use by all other farmers during the GTP period. This will in turn increase
agricultural productivity and production. It is very essential also to strengthen the
government structures at all levels so as to provide effective services that increase
agricultural productivity. Although the emphasis will be on scaling up the best
technologies and practices of model farmers, new technologies will also be developed and
disseminated to farmers and pastoralists.
In addition to promote multiple cropping, better adaptation to climate variability and
ensure food security, the GTP will intensify use of the country’s water and natural
resources. Expansion of small scale irrigation schemes will be given priority, while
attention will also be given to medium and large scale irrigation. Concerted efforts will be
made to expand water shade management and to carry out effective water and moisture
retaining works. Apart from improving productivity and living standards of the rural
communities, these activities will help to cope better with the challenges of climate
change. Strengthening the conservation and management of natural resource is another
focus area. The conservation and management of natural resources will mainly rely on the
farmers and government capacities.
Commercial horticulture will involve intensive farming and high value commodity
production. It will extensively use labour and hence is likely to concentrate in highland
areas and closer to the major cities of the country. It will be integrated with the
surrounding small holder farming. In addition, given the expansion of infrastructure and
services through out the country large scale extensive commercial farming are likely to be
encouraged to grow. The other element of the agricultural development strategy is the
promotion of private large scale commercial farms in areas that are not occupied or utilized
by people.
During the GTP period, agriculture will shift to a high growth path in order to meet the
food security needs of the country, to curb inflationary pressures on agricultural products,
and broaden the export base of the country. The sector will serve as a spring board for
structural transformation in the long run by adequately supplying inputs necessary for
industrial growth.
2.3.3 Creating favourable conditions for industry to play a key role in the
economy
Ethiopia’s narrow industrial base is a major constraint on the nation’s ability to generate
foreign exchange and create job opportunities for its growing labour force. In the GTP
period, the industrial sector will receive the highest level of support for export oriented and
import substituting industries.
23
In the industrial sector, the government will focus in particular on strengthening micro and
small-scale manufacturing enterprises, because they are the foundation for the
establishment and expansion of medium and large scale industries, and open opportunities
for employment generation, expansion of urban development and provide close support for
further agricultural development. The role MSEs play in scaling up agricultural sector
productivity is irrefutable and for this reason appropriate support will be provided to
strengthen vertical and horizontal linkages between agriculture and industry.
The growth of MSEs and their integration with TVET system development will be
instrumental in providing the necessary skills and education for technological transfer. This
in an important part of the effort to support MSEs, as is the provision of capital for MSEs’
operations through saving and credit institutions in a more transparent and accountable
manner. To solve the production facility problems of MSEs and those linked to identifying
market opportunities, efforts will be made by regions and city administrations to provide
production and marketing facilities at an affordable cost. Entrepreneurial as well as saving
attitudes and behaviours will be widely promoted among micro and small business
operators in particular and among the public in general.
Major support will also be given to establish and expand medium and large scale industry.
It is believed that these industries will encourage technological transfer, bridge the link
between micro and small enterprises and improve the competitiveness of domestic
resource based large-scale industries. Medium and large scale industries will also serve
well the domestic market and produce value-added products for the export market.
Measures to support selected strategic import substituting industries, both within the public
and private domain, will be strengthened and this will help increase the foreign exchange
earnings and lay the basis for more rapid industrial development.
As is clearly stated in the Ethiopia’s Industrial Development Strategy, the value that can be
added by the private sector is an important engine of the sectors’ development. The
business environment has over the years been conducive to investment and the trade and
investment framework has improved rapidly, thus attracting both domestic and foreign
investment. The government will continue providing all the necessary facilities and support
to realize the GTP’s industrial sector growth objectives.
2.3.4 Enhancing expansion and ensuring quality of infrastructural
development
The expansion and maintenance of economic infrastructure such as roads, power and water
supply, should be seen from the stand points of enhancing and sustaining pro-poor growth
through job creation and promotion of industrial development and, by these means helping
to realize poverty eradication. Even though large investments have been made over the
previous plan period, the infrastructural backbone of the country has not yet reached the
quantity and quality desired because of the low threshold of economic infrastructure in
2004/05. Constraints that have arisen to date in achieving the desired level of development
included limited local human capacity and the large capital investments needed, combined
with the high foreign currency component of those investments. During GTP period
therefore emphasis will be put on both expansion and ensuring quality of infrastructure
development.
The experience in implementing previous initiatives, the challenges encountered, and the
unanticipated opportunities that arose, have all contributed to lessons learned that have
improved the strategies adopted in the GTP. For instance, improvement in gross domestic
savings is a policy initiative adopted by the GTP, in order to mobilise resources to fund
24
investments and promotion of import substituting industries. Investment in development of
roads, railway networks, energy, irrigation and telecommunication will receive due
attention during GTP period. A major effort will be made to increase investment in
infrastructure by: increasing domestic savings and promoting import substitution of
materials that are necessary for the infrastructure development.
In the plan period, the road networks will be expanded. Every rural kebele will be
connected to an all weather road and thus to the main road network. Railway lines
connecting various parts of the country will be developed. To meet the country’s growing
energy needs efforts will be made to increase use of alternative energy sources such as
wind, geothermal and hydro energy. The ongoing telecommunication infrastructure
expansion program will be concluded and good quality and efficient services will be
provided by fully utilizing this countrywide and affordably priced infrastructure.
In view of the role of urbanization for economic and social development, building the
necessary urban infrastructures will be given emphasis to ensure rapid and equitable
growth of urban centres. The development of these urban infrastructures will be
implemented in a manner that they will contribute for MSEs development and employment
creation. Adequate attention will also be given to improve urban sanitation amenities to
create suitable living and working environment. A comprehensive regulatory and capacity
building framework will also be implemented in order to promote the development of a
more productive and competitive domestic construction industry.
2.3.5 Expansion of social development and guaranteeing their quality
Improving citizens’ living standards and development of their human potential, is a key
strategic pillar of the GTP. The government will take various measures to improve
peoples’ health, productivity and skills. Among other benefits, these measures will increase
the potential for government’s policies, strategies and programs to realize their objectives.
The main initiatives that are expected to ensure that this strategic pillar is realized are
improved access to good quality higher and adult education, very wide access to good
quality primary health care, better access to safe water and sanitation facilities, halting the
spread of HIV/AIDS and other key infectious diseases, improving food security and
nutrition, and improved housing conditions.
Education and training: The progress to date has been encouraging. In order to sustain
this level of progress, the government will increase its efforts to develop the country’s
human resources by improving the access to and the quality of education in the next five
years. To improve access to education, efforts will be made to address issues that hinder
students’, especially female students’, enrolment. Appropriate importance will also be
given to pre-primary and functional adult education. To improve the quality of education,
measures will be taken to address existing shortcomings by increasing the number of
teachers and schools. The government will expand and improve the initiatives taken to date
in its General Education Quality Improvement Program.
Higher education: The key priority in the higher education system during the five year
GTP will be to ensure the systems’ quality and relevance. To this end, the management and
administration of universities will be improved and strengthened. Efforts will be made to
ensure the Higher Education Strategic Centre and the Higher Education Quality Assurance
Agency fulfil their missions. The performance and implementation capacity of technology
institutes will be developed further. Adequate supply of university teachers will be ensured
through the implementation of a full fledged teacher development program. The revised
curricula will be implemented taking into account crucial issues such as instructional
25
processes, assessment and examinations and student achievement. The government will
launch a big push to strengthen science and technology in higher education.
Child care, special needs and adult literacy: The early childhood care and education
system will be made cost effective and more participatory and be expanded in both formal
and non formal education delivery mechanisms. The education strategy for children with
special needs will be fully implemented. A functional adult literacy program will be
expanded across the country.
Technical and vocational education & training: The TVET system will continue to be
an instrument for technological transfer, through the development of occupational
standards, accreditation of competencies, occupational assessment and accreditation, and
the establishment and strengthening of the curriculum development system. TVET
institutes will serve as the centres of technology and skill accumulation for micro and small
enterprises (MSEs). Rigorous and regular monitoring and evaluation of TVET institutes
will be carried out. The TVET program will be part of the government’s capacity building
program to strengthen engagement with, and productivity of MSEs, as a key instrument for
creation of employment opportunities.
Health Services: The GTP will focus on improving the health of the population through
provision of primary health care services that will be supported by the health extension
program. In addition measures will be taken to ensure quality hospital services and better
supply of medical drugs. The government will strengthen the measures it takes to improve
the number, skills, distribution and management of health workers, through enhanced
training of physicians (specialists and general practitioners). New systems of health care
financing will be explored and implemented to overcome the existing bottlenecks. An
incentive package will be developed to encourage domestic production of pharmaceutical
products.
To increase the contribution of the private sector to health services, efforts will made to
improve and extend the delivery of services and their quality. Lessons will be drawn from
other countries and integrated in the initiatives to be taken to improve the private sectors
contribution to the health system. Mobilisation of external finance, together with domestic
finance, in order to fund GTP health sector initiatives, will receive major attention. Private
pharmaceutical factories will also be encouraged to sustainably produce and deliver quality
pharmaceuticals. Generally GTP aims to fully achieve the MDG targets for the sector.
2.3.6 Strengthening good governance and capacity building
Strengthening institutional capacity is critical to implement the GTP policies, strategies
and programs and there by achieve satisfactory results. Apart from other existing,
structural and institutional constraints, the country’s economic growth and_ social
development are hindered by organisational capacity constraints. Government has designed
national programs, policies, and strategies that strengthen and sustain the country's
implementation capacity, institutionally and organisationally. This is a vital contribution to
the on-going process of democratization. For example, during the GTP period, the
implementation of Civil Service Reform Program and Good Governance packages will be
strengthened to ensure efficiency, effectiveness, transparency and accountability at all
levels. The capability of civil servants, at federal, regional and local levels will be
strengthened. Concerted efforts to improve information and communication systems will
be made that contribute to the socioeconomic transformation process.
26
In order to facilitate the strengthening of the stable, democratic and developmental state
that creates an enabling environment for development, major emphasis will be given to
strengthening democratic institutions, building up the capacity of civil service and I
society organisations and establishing a system for citizens’ access to information. Public
participation will be strengthened at all levels to ensure better transparency and
accountability in public decision making. In addition, the effectiveness of the justice
system will be improved and laws will be amended to ensure that implementation and
interpretation is in conformity with the constitution. The independence, transparency and
accountability of courts and the judicial system will be ensured. Law enforcement
institutions will be strengthened by improving the knowledge and skills of the human
resources’ employed and by providing the equipment required. Finally, the publics’
understanding and awareness of constitutional issues will be increased and the custom and
tradition of peaceful resolution of disputes improved.
Another critical element of this pillar strategy concerns ensuring transparency and
accountability in public decision making, as well as preventing and controlling corruption.
In this regard, the focus will be on radically improving the tax and land administrations of
the country. At the center of such reforms are improving the registration and information
systems of income, property and land. In addition, public education and awareness creation
that bring about attitudinal and behavioural changes, as well as effective enforcement of
laws will be pursued. The establishment of reliable and uniform vital statistics and
identification system of citizens will also be undertaken during the plan period.
2.3.7 Empowering women and youth and ensuring their benefits
Women and Youth: The objectives of the GTP can only be achieved when the
multidimensional problems faced by women and youth are addressed. To this end, the
government will scale up its efforts to implement its Women’s and Youth Policies and
Programs. These policies contain essential initiatives that will contribute to the
participation and effective utilization of the untapped potential of these key social groups.
During the GTP period, women and youth initiatives will aim to ensure equitable socio-
economic and political participation by and benefits directly for, women and youth in our
society. Unleashing the potential contribution of youth and women to national
development will have a profound effect on the speed, equity and sustainability of the
country’s overall growth and development.
Over the last few years major efforts were made to increase the enrolment of girls in
school, expand coverage of female health services, and increase extension services to
women farmers in rural areas. These efforts included also legislative and institutional
reforms to protect the rights of, and open opportunities for, women. Although, progress has
been made there are still challenges relating to changes in attitudes and traditional
malpractices. Government is committed to speeding up the pace of change through
education, by increasing the participation of women in public life, and by strengthening
women’s membership in gender based organizations.
Children: Relative to other sections of the community, children’s vulnerability to
manmade and natural disasters is higher. Efforts to date to minimise children’s
vulnerability will be increased during the plan period. Primary targets included in the GTP
are to ensure equitable benefits to children from development initiatives, support
vulnerable children, minimise harmful traditional practices that affect children, and protect
children’s rights and safety.
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CHAPTER 3.
MACROECONOMIC FRAMEWORK OF THE GROWTH AND
TRANSFORMATION PLAN
3.1. MACROECONOMIC OBJECTIVES
Macroeconomic policy objectives for the five year GTP period 2010/11-2014/15 are the
maintenance of macroeconomic stability so as to encourage savings and investment by
adopting appropriate policies designed to promote rapid and broad based economic growth.
Fiscal and monetary policies will be managed in a manner consistent with these
macroeconomic objectives.
3.2. MACROECONOMIC POLICIES AND GOALS
The macroeconomic goals of the GTP are synchronized with the overall policy objectives
of maintaining the growth momentum witnessed during the PASDEP period, Ethiopia’s
vision of becoming a middle income country, and meeting its MDG targets at a minimum.
3.2.1. Economic Growth, Savings and Investment
The Ethiopian economy has registered an average annual real GDP growth rate of 11%
during the five years 2005/06 to 2009/10. The lesson learned during PASDEP and SDPRP
periods, is that sustainable, rapid and equitable growth is essential to the GTP. It is growth
that will help create employment and raise income, eventually eradicating poverty.
Two growth scenarios are considered in the GTP: Base Case and High Case Scenarios.
a) Base Case Scenario
Under the base case scenario, Ethiopia’s economy is projected to grow at an average
annual growth rate of 11.2%. This is the average growth rate attained during PASDEP and
the GTP intends to maintain this growth momentum. Under the base case scenario, it is
assumed that the economy will be able to grow provided that the same stable policies and
strategies are followed at macroeconomic and sectoral levels as adopted previously; that
prudent monetary and fiscal policy ensures that inflation remains at single digits; and that
tax collection and administration systems are strengthened so as to increase domestic
revenue substantially. All MDG targets will be met under the base case scenario.
Table 5. Real GDP Projection Annual Growth Rate (%)
Agriculture & Allied
ane 76
Activities 8.5 8.5 8.6 8.6 8.7 8.6
Industry 10.6 14.0 179 21.4 23.0 23.7 20.0
Services 13.0 12.5 1.5 10.5 9.5 9.0 10.6
Real GDP 10.4 11.0 1d 11.3 11.2 14 11.2
As shown in Tables 5 above, growth is expected to be broad based; agriculture is expected
to grow on average by 8.6% per annum while industry and services are expected to show
average annual growth of 20% and 10.6%, respectively.
28
Table 6. Projected Trends in the Structure of GDP by Industrial origin (% share)
Agriculture & Allied
Activities 41.6 40.6 39.7 38.7 37.8 36.9 38.8
Industry 12.9 13.2 14.0 15.3 16.9 18.8 15.6
Services 45.6 46.2 46.3 46.0 45.3 44.3 45.6
To bring about structural transformation in the economy, it is expected that the industrial
sector’s share of GDP will grow 12.9% to 18.8% and the agricultural sector’s share will
decrease from its current 41.6% to 36.9% at the end of the plan period. The service sector’s
share of GDP is projected to decrease from 45.6% to 44.3%. Achievement of these targets
will provide an enabling environment for economic growth by balancing demand and
supply of agriculture and industry sectors.
Looking at demand side of GDP, there are two macroeconomic balances to be
considered, namely the resource gap between savings and investment and the trade balance
between exports and imports (the export/import gap). In the GTP period prudent
macroeconomic management will be adopted to maintain these macroeconomic balances.
A single digit inflation rate is targeted to prevail throughout the GTP period. During
2010/11 to 2014/15, GDP at current market prices is forecasted to grow at a rate of 17.2%
on average, which is lower than the rate of growth during the PASDEP period. By the end
of PASDEP, the share of total final consumption expenditure to nominal GDP was
expected to decrease, but, it remained unchanged at around 94%, At the end of the GTP
period total consumption is forecasted to reach 85% while domestic savings are targeted to
increase from 5.5% in 2009/10 to 15% of GDP in 2014/15 and the five year average will
be 11.9%.
Gross domestic investment is forecasted to average 27.5% of GDP during the plan period.
In 2014/15 gross capital formation is projected to take a 28.2% share of GDP, rising from
22.3% of GDP in 2009/10. During the GTP period, the savings and investment gap is
expected to narrow and reach 13.1% at the end of the plan period, from its present level of
19.4%. This is a reflection of the government's intention to raise domestic savings towards
the investment financing requirement. In order to effectively raise domestic savings
macroeconomic stability and measures that ensure an enabling environment, such as
increasing financial sectors accessibility and diversifying their services, will be taken
during the plan period. (See Table 7 below)
Table 7. Demand Side GDP as Ratio to GDP @ Current Market Prices (%)
Total Consumption Expenditure 94.5 92.6 89.6 87.6 85.6 85.0 88.1
Gross Domestic Capital Formation 22.3 25.3 27.2 28.1 28.9 28.2 QS
Exports of Goods and Non-Factor Services 13.6 16.6 17.7 19.2 20.8 22.5 19.4
Imports of Goods and Non-factor Services 33.0 34.5 34.5 34.9 35.3 35.7 35.0
Resource Balance (19.3) (17.9) (16.8) (15.7) (14.5) (13.1) (15.6)
Gross Domestic Saving 3.5 TA 10.4 12.4 14.4 15.0 11.9
29
To ease the pressure on the balance of payments, policy and administrative measures that
promote growth and diversification of exports will be undertaken. At the end of the plan
period, the share of exports to GDP is expected to reach 22.5%, a rise from 13.6% in
2009/10. High value products such as horticulture and other new export items will receive
major support from the government. Combined with these initiatives, support will be
provided for import substituting industries so as to ease the shortages of foreign exchange
the country is experiencing. The share of imports of goods and services to GDP at current
market prices is forecasted to reach 35.7% (See Table 7 above).
b) Higher Case Scenario
The basic assumption for the high case scenario is the doubling of agricultural value added,
by scaling up the level of productivity of smallholder farmers and pastoralists to the
productivity levels of existing best (model) farmers. This places the economy on a higher
growth path than the base case scenario. Because of the potential of multiplier effects of
the smallholder farmers, the increase in agricultural supply will stimulate growth of other
economic sectors. Under the high case scenario, it is assumed that the possible upward
shift of demand, caused by the doubling of agricultural value added by the end of the GTP
period, will be stabilized by increased supply of agricultural sector goods that will keep the
inflation rate in single digits.
An annual average GDP growth rate of 14.9% is targeted under the high case scenario.
Agriculture, industry and service sectors are expected to grow on average by 14.9%, 21.3%
and 12.8% per annum, respectively (See Table 8 below). At the end of the plan period the
percentage share of agriculture, industry and service sector are expected to be 41%, 16.9%
and 42.1%, respectively. (See Table 9 below)
Table 8. Projected Trends in the Structure of GDP growth by Industrial origin (%)
epee 76 95 13.5 16.1 17.1 18.4 14.9
[industry 10.6 8 | 19.4 20.8 23.7 279 213
Services 13.0 14.6 | 13.8 12.9 11.8 10.9 12.8
Real GDP. 10.4 12.5 144 15.3 15.6 16.6 14.9
Table 9. Projected Trends in the Structure of GDP by Industrial origin (“%share)
tote es | 4156 | 399 | 305 | 308 | 403 | 410 42
Industry per | oa | 37 | m3 | is4 | 169 148
Service 4558 | 470 | 468 | 458 | 443 | 421 44.0
Real GDP 100.0 100.0 100.0 100.0 100.0, 100.0 100.0
The GTP five year average of total consumption expenditure, gross domestic capital
formation, total export and import as a percentage share of GDP is forecasted to reach
88.9%, 22%, 19.7% and 30.5%, respectively. The gross domestic saving as a percentage of
GDP will reach 17% at the end of the plan period, up from 5.5% in 2009/10, resulting in a
projected resource gap of 4.1%.
30
Table 10. Projected Trends in Structure of GDP from the Demand Side High Case
Scenario (% share in GDP)
Total Consumption Expenditure 94.5 93.9 91.9 89.2 86.4 83.0 88.9
Gross Domestic Capital
Formation 22.3 22.6 22.4 22.1 21,7 21.2 22.0
Exports of Goods and Non-
Factor Services 13.6 15.5 17.5 19.5 21,7 24.0 19.7
Imports of Goods and Non-
Factor Services 33.0 32.6 31.7 30.6 29.4 28.1 30.5
Resource Balance c9.3) | (7.0) | (4.2) | C10) | (7.7) (4.1) (10.8)
Domestic Savings 5.5 6.1 8.1 10.8 13.6 17.0 1
3.2.2.Prospects for Growth, Wellbeing and Poverty
Macroeconomic indicators are used to understand the linkages between growth and
poverty reduction efforts. Understanding poverty and wellbeing indicators and analysis of
poverty enables the causes of poverty to be identified. The results of poverty analysis are
important in designing policies, developing strategies and in identifying measures to be
taken by the government. Analysis of poverty also helps to evaluate the success of ongoing
policies and strategies, and their implementation.
Poverty analysis is multifaceted. The cost of basic needs approach is used to measure the
income or consumption expenditure aspects of poverty. Consumption is preferred as an
indicator of welfare, as opposed to income, because consumption better captures the long-
run level of welfare than current income. Consumption also reflects better the households’
ability to meet basic needs and it reflects the extent of households’ access to credit and
ability to save when their income is higher. For these reasons, consumption indicators
make a better measure than income, because they reflect actual household living (or
welfare) standards. For consumption to be an accurate indicator of households’ welfare it
has to be adjusted to take account of the difference in the calorie requirements of different
household members; for age and gender of adult members for instance. This adjustment
can be made by dividing real household consumption expenditure by an adult equivalent
scale that provides a proxy measure of the nutritional requirement of each family member.
The adult equivalent scale will, therefore, vary for different age groups and with the gender
of adult household members. For the reasons described, many of the poverty analysis
instruments, such as the head count ratio, use consumption indicators rather than income
indicators.
‘Total poverty’ refers to an aggregate measure of poverty that takes into account both the
food and non-food requirements. At this point it is worth noting how poverty lines are
established. The most widely used method of estimating poverty lines is the cost of basic
needs method (minimum expenditure approach). This method is applicable because the
indicators used are more representative and the threshold will be consistent with real
expenditure across time, space and income groups.
Following from the above justifications for, and definitions of, the methodology adopted,
the food poverty line is defined by selecting a bundle of food that is typically consumed by
the poor. The quantity of the bundle of food is determined in such a way that it supplies a
31
predetermined minimum calorie requirement level (2,100 kilocalories). This measure
enables us to establish a consistent poverty line for Ethiopia. On this basis, the Food
Poverty Line is determined by the minimum per capita expenditure required to acquire the
bundles of food which provide 2,100 kilocalories. In addition to this measure, the total
minimum per capita expenditure for basic needs (food and non-food) is used to determine
the Poverty Line. Using this methodology the Central Statistical Agency carried out studies
in 1995/96 that determined that the poverty head count was 45.5% and the number of
people under the Food Poverty Line was 49.5%.
It is clear that, in Ethiopia, economic growth is crucial for the eradication of poverty over
time, for citizens to enjoy fast growing living standards. This economic growth has to be
rapid, sustainable and fair. Failure to realize such type of economic growth will place
considerable constraints on the poverty eradication agenda. It is for these reasons that
Ethiopia’s development policies in general, and the GTP policies and strategies in
particular, place great focus on ensuring sustained, rapid, broad based, poverty reducing
and fairly distributed economic growth. Such economic growth will result in jobs being
created, as a result citizens’ earnings will rise and their living standards improve and this
will lead to the country breaking out of the poverty trap.
The recent study conducted by the Ministry of Finance and Economic Development,
“Dynamics of Growth and Poverty in Ethiopia (2008)” (based on three wide ranging
studies, the Household Income Consumption And Expenditure Survey, Welfare
Monitoring System and the Participatory Poverty Assessment) shows that a 1% per capita
GDP increase will result in a 1.7% decrease in the poverty head count index. Based on the
identified relationship between economic growth and its elasticity to poverty, it is
calculated that the poverty head count ratio and the food poverty ratio have declined to
29.2% and 28.2% at the end of the year 2009/10, respectively. An updated calculation of
the linkage between economic growth and poverty reduction will be determined when the
current Household Income Consumption Expenditure study is completed. It is expected
that the current HICE study will reveal that the poverty head count ratio, and the
percentage of people living below the food poverty line, will be less than the current
estimates because actual economic growth has been higher than projections for the last
several years. For this reason the GTP boldly aims to achieve the MDG target of halving
extreme poverty and hunger by 2014/15.
3.2.3. Fiscal policy
The medium-term fiscal policy objective is aimed at maintaining the deficit at a sustainable
level. This requires inflation to be contained at single digit levels while simultaneously
increasing public spending on pro-poor sectors. Among the major objectives of the fiscal
policy are to strengthen domestic revenue generation capacity, finance major investment
projects with own revenue, mobilize external grants, arrange external borrowing according
to the borrowing policy of the country, and to mobilize domestic borrowing in a way that
does not adversely affect macroeconomic stability.
On the revenue side, implementation of the on-going tax reform program will be
enhanced by strengthening tax administration and collection. During the GTP period,
efforts will be geared towards promoting compliance and equipping tax collection agencies
with adequate enforcement powers. These strategies will further boost revenue
mobilization at federal and regional levels. The government will accelerate the pace of
implementation of the tax reform program by strengthening the capacity of tax collection
agencies, implementing the Tax Identification Number system throughout the country,
32
improving the presumptive tax system, developing and implementing an audit program to
cover all taxes, and improving the administration of the Value Added Tax.
Efforts will also be made to improve the tax base and bring new businesses into the tax net,
particularly where they were beneficiaries of tax incentives (tax holidays). As a result of
these measures, it is calculated that, by the end of the GTP period, the share of total
domestic revenue and tax revenue to GDP at current market prices will reach 17.1% and
15%, respectively. The share of budget deficit including grants to GDP at current market
prices will be maintained at about 2% on average so as to maintain macroeconomic
stability (See Table 11 below).
Table 11. Fiscal Projection As a Percentage of GDP at @CMP (Base case Scenario)
Total Revenue Including Grants 17.3 17.8 18.4 19.2 20.4 20.4 19.2
Domestic Revenue 14.0 14.1 14.2 15.3 16.8 17.1 15.5
Tax Revenue 1.3 1.7 12.1 13:2) 14.7 15.0 13.3
Non-tax Revenue 2.8 24 221 2.1 2.1 2.1 2.2
Grants 32 37 43 3:9. 3.6 3:3 3.7
Total Expenditure 18.6 20.5 20.2 21.1 22.3 23.7 21.6
Recurrent Expenditure 8.4 8.9 8.6 8.8 OT 9.3 8.9
Capital Expenditure 10.3 11.6 11.6 12.3 13.3 14.4 12.6
Poverty Oriented expenditures 12.3 13.5 13.7 14.8 16.1 17.3 15.1
Expenditare Deficit including (1.3) (2.7) (1.7) (1.9) (1.9) (3.3) (2.3)
Deficit Financing 13 ay 1.7 19 1.9 3.3 2.3
External net Ll 1.0 0.8 0.8 0.8 0.6 0.8
Domestic net 0.5 1.6 0.9 1.1 12 2.7 1:5.
On the expenditure side, resource allocations have been guided by the government’s pro-
poor growth policy whereby the lion’s share of available resources are allocated to priority
infrastructure and services that enhance pro-poor economic growth and_ social
development. This policy will be applied more vigorously during the GTP period.
Accordingly, the highest percentage share of total spending will be allocated to pro-poor
sectors where capital expenditure as a percentage share of GDP is forecasted to reach
14.4% at the end of the plan period. (See Table 11).
3.2.4. Monetary Policy, External Sector and Financial System
Monetary Policy
Ethiopia’s monetary policy will continue to focus on maintaining price and exchange rate
stability so as to create a macro economy that is conducive for rapid and sustained
economic growth. Inflation will be held at single digits during the GTP period (2010/11-
2014/15). Measures will be undertaken so that growth of money supply will not be in
excess of nominal GDP growth. During the GTP period a stable foreign exchange rate is
envisaged, which will not only encourage export growth but also import substitution.
These in turn would facilitate stable economic growth and significantly minimize foreign
exchange constraints by strengthening hard currency reserves.
To implement the GTP both direct and indirect monetary instruments will be used as
appropriate. The government will develop and implement initiatives to encourage domestic
33
saving and investment. In this regard real interest rates will be maintained above zero
;while non-traditional sources of revenue mobilization such as bond sales to citizens at
home and the Diaspora will be put in place. The contribution and coverage of social
security services will be improved, while policy measures that encourage domestic savings
for machinery and housing investment will be introduced.
Financial system
In the GTP period the financial sector will be strengthened with the aim of establishing an
accessible, efficient and competitive financial system. One purpose of this initiative is to
increase domestic saving so as to sustain the fast and sustainable growth required to
provide resources for expanding and improving public services. Government will introduce
capacity building measures to raise the efficiency of financial institutions and improve
banking practices so as to ensure healthy competition, support private sector banks and
financial institutions to improve the coverage and quality of the financial services they
provide and help them to minimize non-performing loans and improve their profitability.
During the GTP period, greater emphasis will be placed on strengthening modern payment
systems, developing regulations to international standards and facilitating access to
financial services. It is expected that these initiatives will enable the current level of access
to finance of 20% to reach 67% by the end of the plan period.
The National Bank of Ethiopia will strengthen its human resources and information
technology infrastructure. The capacity of the Ethiopian Financial Institute will be
strengthened. Information technology that supports the bank information exchanges system
will be extended to microfinance institutions. The expansion and improvement of modern
IT networks, and their effective utilization by financial institutions will ease
communication and facilitate the flow of real time money from one corner of the country
to another. The introduction and wider application of payments systems that use faster,
electronic means, such as cards, mobile or other electronic instruments, will facilitate
improved banking services and help to reduce transaction costs.
3.3. SELECTED MACROECONOMIC AND SECTORAL TARGETS
Table 12 summarizes the key macroeconomic and sectoral targets expected to be reached
at by the end of the GTP period. These targets are also used to track the progress of the
economy and monitor the effectiveness of the GTP impacts as measured by major
indicators. Details of targets are presented in the chapters and sections that follow.
Table 12. Selected GTP Targets
The Macro Economy
Real GDP growth rate (%) 10.4 14
Per capita GDP @CMP (USD) 377 482/523
Total consumption expenditure as% of GDP 94.5 85.0
Gross domestic capital formation as% of GDP 22.3 28.2
Gross domestic saving as% of GDP 5.5 15.0
Government Finance
Domestic revenue including grants as% of GDP 173 20.4
34
Domestic revenue as% of GDP 14.0 17.1
Tax revenue as% of GDP 11.3 15.0
Total poverty-oriented expenditure as% of GDP 12.3 17.3
Total expenditure as% share of GDP. 18.6 23.7
Capital expenditure as% of GDP 10.3 14.4
Recurrent expenditure as% of GDP 8.4 93
Overall balance including grants as% of GDP (1.3) (3.3)
External (Net) as% of GDP ll 0.6
Domestic (Net) as% of GDP 0.5 2.7
External sector |
Total exports as% share of GDP 13.6 22.5
Total imports as% share of GDP 33.0 35.7
Resource gap as% share of GDP (19.3) (13.1)
Merchandise export as% share of GDP 6.7 15.6
Merchandise import as% share of GDP. 26.5 32.0
Poverty & Welfare
Total Poverty Head Count (%) 29.2 22.2
Food Poverty Head Count (%) 28.2 21.2
ECONOMIC DEVELOPMENT
Agriculture
Agricultural and allied activities growth (%) 7.6 87
Crop productivity (qt/ha) 17.0 22.0
Flower (min stem) 2,748 5,859.1
Land covered with multipurpose/versatile trees (thousands ha) 6,058 16,210
Number of extension service beneficiaries (thousands ) 5,090 14.640
Coffee exports (Tonnes) 319.647 600.970
Meat exports (000 Metric Tonnes) 10.18 1
Number of households participating in Productive Safety Net program nM 13
(min)
Industry
Sugar production (000 tonnes) 314.5 2250
Sugar export (000 tonnes) 0 1,246.3
Export of sugar (USD mln) 0 661.7
Textile and garment industry export earnings (USD mln ) 21.8 1000
Leather and leather products industry exports (USD min) 75.73 496.87
Total cement producing capacity (mln ton) 27. 27
Metal consumption per capita (kg) 12 34.7
35
Mining
Gold export (kg) 3,907 8.700
Gold sold to NBE by artisanal miners associations (kg) 2,866 5.250
INFRASTRUCTURE DEVELOPMENT
Roads
Total road length / road network (000 km) 48.8 64.5
Average time taken to all-weather road (hrs) a 14
Road density (km/1000 km?) 44.5 123.7
Road density (km/1000 population) 0.64 1.54
Roads in acceptable condition (%) 81 86.7
Area further than 5 km from all-weather roads (%) 64 29
Construction of new all weather road that connect all rural kebeles 0 71,523
with main roads (Km) ii
Railway
Railway network (Km) - 2395
Energy
Electricity service coverage (%) 41 75
Power generating capacity(MW) 2.000 8.000
Reduce transmission lines power losses (%) 115 5.6
Increase number of new customers (mln) 2 4
Length of distribution lines construction (Km) 126,038 258.038
Rehabilitation power transmission lines (Km) 450 8.130
Telecommunication
Fixed line telephone density (%) 1.36 3.4
Mobile telephone access/distribution (%) 8.7 45
a population telecommunication service access within 5km radius 62.14 100
Fixed telephone subscribers (in mln) 1.0 3.05
Mobile telephone subscribers (in mln) 6.52 40
Internet service subscribers(in mln) 0.187 3.69
Water
Overall potable water coverage (%) 68.5 98.5
Urban population with access to potable water within 0.5km (%) 915 100
Rural population with access to potable water within 1.5km (%) 65.8 98
Land developed for medium & large scale irrigation schemes (%) 25 15.6
Construction and Urban Development
Jobs created to reduce urban unemployment rate in towns under 6 is
integrated housing development (000)
36
Job created through MSEs (mln) - 3.0
Provision of housing and basic services (number of housing units) 213,000 370,000
Reduction of slum areas (%) 60 30
Road constructed with cobblestone (km) - 3738
Education
Net primary enrolment rate (1-8) (%) 87.9 100
Primary school girls to boys ratio 0.93:1 I
Primary school pupil text book ratio 1.25:1 Ll
Adult education participation rate (%) 36 95,
Tatalnamber of undergraduate students in government higher — ae
Total number of TVET students 717603 1,127,330,
Health
Primary health services coverage (%) 89 100
Under five mortality rate (per 1000) 101 68
Infant mortality rate (%) 77 31
Maternal mortality rate (per 100,000) 590 267
Contraceptive prevalence rate (CPR) (%) 32 66
Births attended by skilled health personnel (%) 25 60
Under one year penta 3 immunization coverage (%) 82 96
Percentage of households in malaria prone areas with insecticide- 100 100
treated bed nets (%)
Reduce incidence of malaria 0.7 <0.7
HIV/AIDS incidence rate (%) 0.28 0.14
Increase TB case detection rate (%) 36 75
37
CHAPTER 4.
FINANCING THE PLAN
Financing social and economic development programs is essential for the realization of the
objectives stated in the GTP. Allocation of finance is based on the medium term Macro
Economic Fiscal Framework, an instrument used by the government to frame resource
expectations from domestic and external sources and allocate resources to key sectors in
line with the overall development objectives of the country. The process of preparing the
Macro Economic Fiscal Framework begins by identifying the overall resource envelope in
the period from 3 to 5 years.
During the GTP five year period, allocation of development finance will aim to support the
overriding objective of poverty eradication - within the country’s financial capacity and
within the maintenance of stable macroeconomic conditions. Based on these objectives, a
larger share of total government spending will be allocated for development of pro poor
and growth enhancing sectors. Government recurrent expenditure will be fully financed
from domestically generated revenue whilst, capital expenditure will be financed by
domestic revenue and external sources.
Projections of government revenue, allocation of resources to government's priority
sectors, estimates of budget deficit, and financing under the base case scenario are
presented in the following sections.
4.1.GOVERNMENT REVENUE
Domestic revenue will be mobilized mainly from tax and non-tax sources. Estimates of
revenue collected from taxes for the five year period 2010/11 to 2014/5 assume full
implementation of GTP initiatives, including on-going tax reform, improvement in
efficiency of tax administration, and broadening the tax base in line with the economic
growth anticipated and the potential resources that can be mobilised. Non-tax sources of
revenue will be mobilized from the dividends and proceeds of public enterprises.
Other initiatives to raise financing for the GTP include encouraging private savings and
investment, scaling up external development assistance and increasing Foreign Direct
Investment (FDI). There are sources of development finance that do not appear in
government’s budget. These include off-budget financing by NGOs, local government
expenditures using their own resources, and own source spending by public enterprises.
During the five year GTP period, domestic revenue, including grants, is expected to reach
ETB 173 bin by the end of the plan period, up from ETB 66.24 bin in 2009/10, out of
which, ETB 145.3 bln will be mobilized from domestic sources and the remaining ETB
27.7 bIn ETB from external sources. (See Table 13 below).
38
Table 13. Projected GTP Revenue Requirements Under Base Case Scenario (in mln
ETB)
Total Revenue Including Grants | 66,237 | 79,806 | 96,941 | 118.281 | 147,524 | 173,040 | 615,591
Domestic Revenue 53,861 63.315 | 74.585 | 94,119 | 121.660 | 145,299 498.978
Tax Revenue 43,315 | 52,534] 63,588 | 81.228 | 106.460 | 127.212 431,022
Non-tax Revenue 10,546 | 10.781 | 10,997 | 12,891 | 15,200 | 18,087 67,956
Grants 12,376 | 16.491 | 22,356 | 24,162 | 25,864 | 27,741 116,613
4.2. GOVERNMENT EXPENDITURE
Government developmental expenditure is determined by the financial capacity of the
country where the finance is collected from tax, non tax sources of revenue and official
development assistance. Government recurrent expenditure during the GTP will be based
on the base year (2009/10) spending, the growth prospects of the country in the coming
years and the assumption of a stable macro economy. Capital expenditure during the GTP
period prioritizes the financing of ongoing projects and investments on pro-poor sectors
(such as agriculture and rural development, food security, water, education, health, roads,
rural electrification, etc) that will help realize development policies and strategies set by
the government and described in the GTP.
By the end of the plan period, it is expected that total government spending will reach ETB
201.1 bln, up from its ETB 71.3 bin in 2009/10. ETB 78.9 bin of the expected 2014/15
expenditure will be allocated to finance recurrent expenditure and ETB 122.2 bln to
finance capital expenditure. By the end of the GTP period, expenditure on poverty-oriented
and growth enhancing sectors will reach ETB 146.8 bin.
Table 14. Projected government Expenditures, Base Case Scenarios (mln ETB)
Total Expenditure 71,334 | 92,049 | 106,125 | 130,187 | 161,452 | 201,146 690,959
Recurrent Expenditure 32,012 | 40,046 | 45,224 | 54,383 | 65,477 78.924 284,054
Capital Expenditure 39,322 | 52.003 | 60,901 75.804 | 95,975 | 122.222 406.905
Poverty Oriented Expenditures 47,251 | 60,682 | 72,165 | 91,131 | 116,245 | 146,837 487,060.
Agriculture and Food Security 6,998 9,518 | 13,123 | 15,905 | 20,302 | 25,699 84,547
Education 16,870 | 21.703 | 24,562 | 29.579 | 36,354 44,025 156,223
Health 4,547 6.260, 7,027 8.796 11,121 13,894 47,098
Road 14,601 | 17,304 | 21,752 | 28.762 | 36,581 45,898 150,296
Water 4,235 5.897 5.701 8.088 11,888 17,321 48.894
In general, in order to meet the GTP objectives, a total of ETB 690.90 bln is required, out
of which, ETB 406.90 bin will be used to finance capital outlays and the remaining ETB
284.0 bin will be allocated to finance recurrent expenditure. In other words of the total
39
finance required during the plan period 58.5% will be spent on capital outlays and 41.5%
on recurrent expenditure. (See Table 14 above)
4.3. FINANCING
In 2009/10, the total government revenue was ETB 66.2 bin and the total expenditure was
ETB 71.3 bln. The budget deficit, including grants, of ETB 5.1 bln was financed through
borrowing from both domestic and external sources. The budget deficit of ETB 28.11 bin
at the end of the GTP period is expected to be financed from domestic (ETB 22.9 bln) and
external borrowing (ETB 5.2 bln). During GTP period a total of ETB 75.4 bin budget
deficit will be financed from domestic (ETB 50.6 bin) and external borrowing (ETB 24.4
bin).
Table 15. Projected Budget Gap During GTP, Base Case Scenario (in min ETB)
‘otal
2010/1
201
| Total Revenue Including Grants 66.237 79,806 96.941 | 118.281 | 147,524 | 173,040 | 615,591
Domestic Revenue 53,861 | 63,315 | 74,585 | 94,119 | 121,660 | 145,299 | 498.978
Tax Revenue 43,315 | 52.534] 63.588 | 81,228 | 106.460 | 127.212 | 431,022
Non-tax Revenue 10.546 10.781 10.997 12,891 15,200 18,087 67.956
Grants 12,376 16,491 22,356 24.162 25.864 27,741 116.613
Total Expenditure 71,334 | 92,049 | 106,125 | 130,187 | 161,452 | 201.146 | 690,959
Recurrent Expenditure 32.012 40.046 45,224 54.383 65.477 78.924 | 284.054
Capital Expenditure 39,322 52,003 60.901 75,804 95.975 | 122,222 | 406,905
Poverty Oriented expenditures 47,251 | 60,682 | 72,165 | 91,131 | 116,245 | 146,837 | 487,060
Expenditure Deficit incl. Grants 5,097 | -12,243 -9,184 | -11,906 | -13,928 | -28.106 -75.368
Deficit Financing 5.097 12,243 9.184 11,906 13,928 28.106 75.368
External net 4,131 4,520 4,201 4,974 5,490 5,220 24,405
Domestic net 1,758 7,356 4.983 6.932 8.438 22.886 50,595
Privatization 366 366
Projected expenditures presented in table 14 and 15 are based on the estimates of the
medium term Macro Economic Fiscal Framework. In contrast, Table 16 presents
expenditure requirements presented by implementing agencies. Thus, an amount of ETB
756,066 bin expenditure is estimated by the implementing agencies which exceeds by ETB
65.1 bln compared to the estimate of the Macro Economic Fiscal Framework. This budget
will be allocated in alignment with the government's fiscal policy and based on the sectors'
annual plan and budget. The budget deficit from the perspectives of the resource need of
the sectors during the five years period will be ETB 140.47 bin. (See Table 16 below)
40
Table 16. Resource need by Implementing Sectors, Budget Deficit and Financing (in
min ETB)
Total Revenue
66,237
79,806 | 96,941
118,281 | 147,524 | 173,040 | 615,591
Total Expenditure Required
71.334
92.048 | 126,827
145,434 | 174,842 | 216.915 | 756.066
Recurrent Expenditure 32,012 40,046 54.046 61.975 74,507 92.436 323,010
Capital Expenditure 39,322 | 52,002] 72,781 | 83,459 | 100.335 | 124.479 | 433,056
Poverty Oriented expenditures | 47.251.6 | 60,682 | 86.243 | 101.802 | 124,139 | 156.179 | 529.045
Agriculture & Food Security 6998] 9518] 15,683] 17.768] 21,680] 27.334] 91,983
Education 16,870 | 21,703 | 29.354] 33,043 | 38.823 | 46,826 | 169.749
Health 4547.6] 6260] 8398] 9,826] 11,876 14.778 | 51,138
Road 14,601 | 17.304 | 25,995 | 32,130 | 39.065 | 48.sis | 163,312
Water 4235[ 5.07[ 6813 [9.035 | 12.695 [18.423 [52.863
4.4, OFF BUDGET FINANCING OF INFRASTRUCTURE AND INDUSTRIAL
PROGRAMS
As shown in the following tables, the total financing requirements of infrastructure and
industrial development programs which will be undertaken off government budget are
forecasted at ETB 569.19 bin. The financing arrangements of these programs will be 30%
from own sources of development enterprises and 70% from domestic and external
borrowing. Domestic borrowing will be effected within the framework of the government's
monetary policy and a stable macroeconomic situation. External borrowing will be
undertaken following the national borrowing policy. Of overall financing requirement
indicated above, ETB 315.43 bln (55.42%) is required in foreign currency as indicated in
the following tables.
41
Table 17. Off Budget Financing Requirement of Infrastructure and Industrial Development Programs
1 Industrial Development 16,229.67 51,954.59 56,728.13 42,056.96
Textile and Garment Industry
Metal Engineering Industry
Chemical, Pharmaceutical and Cement Industries
‘Fertilizer Complex Industry
Leather and Leather Products Industry
“Micro and Small Scale
Management and Privatization of Public Enterprises
‘Sugar and Associated Products Industry
Ethiopian Airlines
Ethiopian Marine Transit Service
hiopian Dray Port Service
Ethiopian Shipping Line
Communication
Ethio-Telecom
Energy
9,174.68
35,088.3
16,647
740
14,942.76
775
886.5
963.6
3|
3,384.33
3,290.24
1,487.8
0.00
4,256.7
11,154.12
201:
In mln ETB
26,591.73 193,561.08
3,172.01
15
_0.00
6,293.02
15,945.4
20,466
- 19,095.4
73,574.86
110,796.1
177,735
Addis Ababa Resident Houses Construction Project
Grand Total (1+2+3+4+5)
Foreign Currency Requirement (%)
96,638.53
62.85
152,687.33
53.32
143,970.23
54.01
14,960
42
Table 18. Off Budget Foreign Currency Requirement of Infrastructure & Industrial Development Programs
In min ETB
c | 1/ 2013/14 | 4
Industrial Development 21,873.89 91,660.01
Textile and Garment Industry ¥ - ee 997. 9,511.60
2,008.10
Chemical, Pharmaceutical and Cement Industries z 244. 8,967.4 E 524. 24,892.70
‘Fertilizer Complex Industry : : 2,707.46 2,632.19 10,564.01
Leather and Leather Products Industry 523. 1,262.6 F Ee 3,993.50
Micro and Small Scale Enterprises 880. 320. 333 6,534.10. |
“Manag ation of Public ps . 3,708.7 864. 160. 12,851.30
“Sugar Industry
Resident Houses of Sugar Industry
26,485.36 28,247.14 26,781.7 7,254.91 107,247.75
9,488.8 18,621.6 17,217.2 483. 4,011.2 62,822.60
37 | 22.7 i , 453.5] 2,
14,942.76 | 8,425.74 | 1,307.43 220.41 | 31,142.35
750.6 64 1,565.9 1,960.8 9.70
. 5 _ 84.7
524.3
Energy 100,950.00
Addis Ababa Resident Houses Construction Project
Foreign Currency Requirement (mln ETB) 60,736.75 82,933.00 77,765.16 56,215.02 37,777.12 315,427.06
Overall Financing Requirement (mln ETB) 96,638.53 152,687.33 143,970.23 105,228.20 70,666.84 569,191.10
Foreign Currency Requirement (%) 62.85 53.32 54.01 53.42 53.46 55.42
43
4.5. THE ROLE OF THE PRIVATE SECTOR AND THE PUBLIC
As pointed in the previous chapter, many development programs and projects are undertaken
by the government and other development actors. Previous experience shows that the
participation of the private sector, non-government organizations and the public at large in the
development process has been significantly increasing. Accordingly, in the next five years,
the private sector, the public and non-government organizations are expected to play a more
active role and thereby significantly contribute to the success of the GTP. The contribution of
the private sector, the public and non-government organizations is therefore included as one
critical element of the country’s overall capacity to finance the GTP.
44
CHAPTER 5.
ECONOMIC SECTORS DEVELOPMENT PLAN
5.1. AGRICULTURE AND RURAL DEVELOPMENT
5.1.1 Strategic Direction
Main focuses for agriculture and rural development are increasing the capacity and extensive
use of labour, proper utilization of agricultural land, taking account of different agro-
ecological zones, linking specialization with diversification, integrating agricultural and rural
development, strengthening the agricultural marketing system and effective implementation
of the scaling up of best practices in the sector. Bearing these strategic directions in mind, the
Agricultural Development—Led Industrialization Strategy emphasises that small holder
farmers and pastoralists need to use efficiently available modern agricultural technologies that
increase productivity and production. In addition, the private sector will be encouraged to
increase its share of investment in agriculture. The remarkable growth that has been registered
to date will be further strengthened in the GTP period. In order to expand Ethiopia’s export
markets, initiatives will be put in place to increase penetration of international markets.
During the GTP period, a key strategic direction is to ensure smallholder agriculture becomes
the main source of agricultural growth by scaling up interventions based on the experience
gained, and identification of successes achieved in the previous plan period. Experience to
date has shown that it is possible to increase the productivity of smallholder farmers within
short period of time by better utilizing smallholders’ labour, land and by using improved but
less capital intensive agricultural practices and technologies. It is also the case that there is a
growing demand for agriculture products because of growth in population, growth in per
capita GDP, increasing international demand and growing demand for agricultural products as
raw materials inputs to the growing industrial sector. These national and international realities
justify the need for increased investment in agricultural sector to increase productivity and
production.
The results realised to date show that it is possible to transform subsistence agriculture to
more market led production. The key derivers of this change will be improvements in
farmers’ productivity and production. Thus, to lay the foundation for industrial development,
to use agricultural inputs for the industries, to produce sufficient food crops and high value
products for international market, agriculture will continue to play a leading role in the GTP
period.
a) Smallholder Agriculture Development
Smallholder agriculture development will focus on the following three strategic directions.
Scaling up of best practices: The productivity of most average farmers is two to three times
lower than that of best farmers. Scaling up of best practices to bring up the productivity of
most average farmers closer to those of best farmers is the first strategic direction to be
pursued during the GTP period. To realize this strategic direction, public capacities at all
levels, the agricultural extension services system and the skills of development agents will be
strengthened. Although the key direction is efficiently and effectively utilizing available
technologies and practices adopted by model farmers through scaling up strategy,
continuously building technological capacities is also important. Thus intensifying use of
good agricultural practices, adoption of new technologies by farmers and pastoralists will be
encouraged. To ensure agricultural growth is sustainable, capacity to adopt and utilise new
and proven technologies will be continuously strengthened. New technologies will be
45
developed and tested and, where results are encouraging, will be disseminated to farmers and
pastoralists.
Expand Irrigation Development and Improve Natural Resources Conservation:
Accelerated and sustainable agricultural growth will be secured by natural resources
conservation, development and improvement of water utilization, and expansion of irrigation
coverage. These areas will remain focus areas during the five year plan period and will
include development of underground and surface water, irrigation development and natural
resource conservation. These in turn entail capacity building for farmers and of government
support structures.
Production of high value crops: A further implementation strategy is a focus on improving
the incomes of farmers and pastoralists. Farmers and pastoralists will be encouraged to shift
gradually from production of low value to high value products. This strategy will be
implemented gradually and will take account of geographic differences on specializations and
existence of favourable market and infrastructural factors.
b) Pastoral Development
Activities implemented in pastoral areas mainly focus on livestock resource. In that sense
priority is given to water development adequate both for the local community and livestock.
This activity will be implemented in relation to the improvement of pastoral land irrigation
development. Activities related to food security will be implemented mainly in connection
with infrastructure developments.
In areas convenient to irrigation development, resettlement of pastoralists on voluntary basis
will be another task to be undertaken. Identifying, selection and dissemination of improved
livestock breeds will be strengthened, and improved mobile veterinary services will be given.
At local levels, emphasis will be given to increasing the number of professionals and
strengthening their capacity so as to enable them give support to pastoralists.
To benefit the pastoralists from their livestock wealth, marketing system will be improved.
Thus standard livestock centers will be built, pastoralists will be encouraged to organize
themselves into cooperatives. To implement these activities close support will be given by
the government. Extension systems will be strengthened; research centers will be expanded in
a way to adopt appropriate technologies that give solution to local problems. Generally all
possible measures will be facilitated to expand the extension system integrated with the
pastoralist livelihood.
c) Private Sector Agricultural Development
Agricultural development policy explicitly states that private investors can participate in the
nation’s agriculture development endeavours. As a result of the efforts exerted to implement
this policy success has been realised in the floriculture. The participation of private investors
has been minimal in areas where extensive agriculture could be practiced, but where physical
infrastructure is weak and, as a result, the government has been investing more in basic
infrastructure in these areas. Where infrastructure has been expanded in rural areas the
increase in private sector investment has gradually increased. The increase in demand for raw
agricultural inputs for the growing industrial sector has also encouraged private investment in
the sector. Infrastructure improvements have increased interest in investments in agriculture
from abroad and domestically. In the five year plan period, more effort will be made to
improve and increase the role of the private sector in the agriculture sector, in lowland areas
where land for large scale commercial farming is in demand. In addition, in the highlands and
areas close to major cities, private investment will be steered towards high value horticulture
46
products that can be produced on limited land, using abundant labour (thus generating
significant employment) as well as increasing supply of produce for export. This type of
private investment will require considerable expansion of basic infrastructure and a plentiful
supply of labour. These investments will be integrated with smallholder agriculture and help
to provide sustainable markets for smallholder farmers.
5.1.2 Objectives
The broad objective of agriculture and rural development in the next five-years is to achieve
accelerated and sustained growth that contributes to poverty eradication and achievement of
MDGs. The excellent results of, and experiences gained from, the implementation of earlier
as well as ongoing programmes will support the attainment of agriculture and rural
development sectoral objectives and of MDG targets by 2015.
During the plan period natural resources and soil conservation, enhanced use of appropriate
technologies and practices as well as market oriented production will serve as the instruments
to ensure rapid agricultural growth. A focus on export led production will compliment
increased productivity and ensure accelerated development of the sector. Agriculture will
continue to be the major source of economic growth while small holder farming will be the
major source of agricultural growth. The private sector’s role in the sector will also be
promoted in order to secure sustained agricultural and rural development.
5.1.3 Major Targets
Major targets for agriculture and rural development are indicated in the following table.
Table 19. GTP Targets for Agriculture and Rural Development
Cul ited land
1. Total cultivated land utilised by major food crops (mln ha) 11.25 12.17
2. Production of cereals (mln ha) 9.1 9.6
3. Cereals productivity (qv/ha) 17 22
Coffee production and productivity
4. Cultivated land by smallholder farmers (ha) 462.000 815,000
5. Coffee production (tons) 341,000 831,000
Livestock development
6. Cattle feed production (qts) 50.000 145,000
7. Improved cattle breeds (%) 10.3 37
8. Production and distribution of improved livestock gene (mIn dose) 0.35 2
9. Proportion of livestock vaccinated (%) 40 65
10. Proportion of low grade hides and skins (%) 50 15
11. Production of improved animal fodder seeds (qts) 50,000 145,000
Agricultural inputs supply
12. Supply of improved seeds (mln qts) 0.56 3.6
13. Supply of chemical fertilizers (both DAP and Urea) (mln tons) 0.83 1.66
Agricultural extension
14. Number of beneficiaries of agricultural extension services (mIn.) 5.09 14.64
15. Of the beneficiaries of agricultural services proportion of women
and youth (%) 0
47
Improving soil fertility
16, Areas under Vertisol development (min ha) 0.60 3
17. Acidic land treated with lime (ha) 2210 37850
Natural Resource Conservation Program
18. Area of land rehabilitated (min ha) 3.21 10.21
19. Land developed under community based water shade development
program (mln ha) att ws
20. Total area of land subjected to soil fertility research (mln ha) 0.894 2.82
21. eae of land covered with forest and with forest master plan 0.70 2.20
22. Area of land covered with multi-purpose trees (min ha) 6.06 16.21
23. Forest coverage (min ha) 13 18.23
24. Increase multipurpose trees (ha) 5062 10154
25. Natural resources conservation activities in pastoral areas (ha) 200,000 350.000
Small Scale Irrigation Program
26. Land developed under small scale irrigation (mln ha) 853 1850
Food security
27. Number of households participate in safety net programs (min) 71 13
28. Food reserve (min tones) 0.41 3
Agricultural Marketing
29. Coffee export (tons) 172,210 600,970
30. Coffee export earnings (mln USD) 528 2037
31. Increase export earning of oil seeds (mln USD) 358 1120
32. Increase export earning of pulses (min USD) 129.86 882
33. Increase the export of oilseeds (tons) 299,198 724.216
34. Increase the export of pulses (tons) 225.446 1.120.981
35. Increase the live animals exported (no.) 333.743 2,353,000
36. Meat export (tons) 10.180 111,000
37. Live animals and meat export earnings (mln USD) 125 1000
38. Earning from flowers export (min USD) 170 535
39. Earnings from export of vegetable. herb and fruits (mln USD) 31.7 948
40. Earnings from export spices (mln USD) 18.57 30
41. Export of spices (tons) 15,594 34.240
42. Export of gums and incense (tons) 4,370 10,233
43. Export earnings from gums and incense (mln USD) 12.68 33.43
44. At the end of the plan period it has been planned to generate USD 6.58 bln from the agriculture sector
export market by exporting 3.81 min ton of agricultural products, 5859 mln flower cuts and 2.35 mln live
animals.
Cooperative Development
45. Number of primary cooperatives 33.636 56.904
46. Number of cooperatives unions 212 546
Agricultural Research
At the end of the plan period new technologies development in cereals, livestock, soil, forest
development and agricultural mechanization will reach 265, 140, 41,219 and 836, respectively
48
Private Investment in the Agricultural Sector
47. Production coffee and tee and other export crops (mln tons) 0.251 1.81
48. Transfer nearly 3.3 min ha land to commercial farming investors in transparent and accountable manner
Horticulture Development
49. Land area under flowers production (ha) 1,586 3.000
50. Flower production (min cuts) 2,748 5,859.1
51. Land under the production of vegetables, fruits and herbs (ha) 2,472 33,000
52. Production of vegetables, fruits and herbs (tons) 58.400 979,600
5.1.4 Implementation Strategies
a) Small holder agriculture
The major implementation strategy for agriculture and rural development in the GTP five year
period is to scale up the best practices identified to date. Agricultural technologies that proved
to be viable and beneficial, when tested by model farmers, will be transferred to other farmers
as quickly as possible and the design and capacity building activities necessary to implement
this strategy will be undertaken.
Crop production and productivity: As a result of the performance in agriculture and rural
development, and the experiences gained, many of the conditions that are important to
accelerate agricultural growth have been identified. It is possible to increase the productivity
of smallholder farmers within a short period of time, by better utilizing smallholders’ labour,
land and with the efficient use of available technologies as well as introduction of improved
agricultural practices and technologies. To ensure in particular effective scaling up of the best
practices the extension system will be continuously improved, while the capacity of extension
agents will be continuously strengthened.
Adequate moisture areas: In areas with adequate moisture the focus during GTP
implementation will be on the scaling up strategy. Successful experiences, such as efficient
ways of utilizing rain water and use of beneficial technologies, together with improved
agricultural practices, will be expanded to increase crop production and productivity to the
highest levels possible.
The core element of the scaling up strategy is to extend those improved agricultural
technologies and practices that have been tested and used by model farmers to all other
farmers. To put these into practice, and overcome the constraints that arise while doing so,
continuously improving the extension system, strengthening capacity building, organisational
and support services will be important.
The main mechanism adopted to implement the scaling up strategy will be to bring together
best experiences according to technology types. This formulation process will be continuous
as additional best experiences emerge during the implementation process. When improved
technologies and agricultural practices are identified, training to introduce and improve skills
will be provided to development specialists and farmers at farmers training centres and
demonstration farms. Where technological problems are identified, appropriate measures will
be taken to resolve and replace them with workable solutions. Solving attitudinal and skill
related problems can develop a stronger commitment to and demand for technology. For this
reason, measures will be taken to have an adequate supply of technology to meet the demand
created. Appropriate adjustment measures will be taken to fine tune the system of technology
inputs to the scaling up strategy. A transparent, efficient and effective agricultural marketing
49
system will be put in place in order that market capacity meets increased production following
the scaling up strategy.
Implementation agencies and professionals will, at different stages, have to use best/model
farmers’ in the training process so that practical experiences are shared in a learning process.
To ensure the benefit of experience is transferred effectively, the support of specialists will be
provided by the extension system. At the end of the plan period, it is expected that, as a result
of these measures, of those farmers who participate in the scaling up program, 90% will
record productivity results that meet the model farmer benchmark.
In order to increase crop production and productivity, technologies and practices that improve
soil fertility will be encouraged. Parallel to an increased use of chemical fertilizers,
government will introduce activities to create awareness and develop skills to increase the
amount and coverage of organic fertilizer use. In areas where moisture is adequate modern,
drainage methods will be introduced in order to get full benefit from Vertisols. Steps will be
taken to gradually change the existing blanket fertilizer application system to one based on
soil fertility testing that identifies different agro-ecological areas, soils and suitability for
major crop types. The aim is for 90% of fertilizer use to be preceded by this type of procedure
and thus increase benefits from fertilizer application. In addition, action will be taken to
increase distribution and use of organic fertilizers, such as bio-fertilizers, that can easily be
used by farmers.
In adequate moisture areas, in order to increase crop production and productivity, improved
agricultural practices will be applied. These include: the selection of crop varieties suitable for
the soil type, adequate and timely farm preparation, use of the right planting time, the right
quality and quantity of the planting input, and modern planting/sowing practices. In order to
increase crop production and productivity, implementation of appropriate weeding frequency
is considered important. Continuous assessment of pest infestations will be conducted, and
measures taken when there is an infestation. Emphasis will be given to harvesting, storing
and using matured crops in places and conditions where the crop is not exposed to pests.
While giving appropriate focus to the use of rain water, actions will also be taken to bring
about significant change in water use by expanding the area of irrigation schemes. In places
where it is easy to access underground water, farmers will be supported to construct hand dug
wells, and use them for production of garden vegetables and permanent crops. Special
attention will be given to small scale irrigation schemes development. Technologies that
improve access to and use of water resources will be widely encouraged and applied.
The combination of scaling up the lessons learned from best farmers with increased irrigation
is expected to double agricultural production. Other interventions will be integrated with these
implementation activities, such as Vertisol drainage and development of double cropping
systems based on Vertisols.
Technology multiplication, supply and distribution: Expansion of the use of technology
and of its’ supply and distribution systems is crucial to increased crop production and
productivity. For this reason, during the GTP period, improved technologies will be applied to
ensure the supply of the required quantity and quality of fertilizer, improved seeds, and small
farm machineries.
Natural resources management: In areas with adequate moisture, appropriate conservation
practices will be scaled up. During the GTP, soil and water conservation works will be
implemented using organized community participation, in those areas where such works are
required. Forestry development, protection and utilization works will be carried out in a
similar way.
50.
Livestock resources development: Livestock development is expected to be promoted along
side the scaling up strategy of crop production in areas with adequate moisture. The focus will
be on the expansion of livestock fattening and dairy development technology. Improved
technologies for honey production and poultry resources development will also be introduced.
The success of these technologies will require strengthening of support for breed
improvement, pasture development and animal health.
In the case of cattle breed improvement a strong focus will be given to artificial insemination
breeding techniques and the implementation of better local breeds’ selection and distribution.
Because both improved and existing breeds become more productive when they receive
adequate and balanced feed, homestead pasture development, improvement of grazing land,
use of forest hacks, and development of pasture crops for zero grazing, will be undertaken.
Focus will also be given to preventative animal health services such as the provision of
vaccination services (before incidence of disease), additional capacity for vaccine storage,
training adequate animal health specialists, and expanding service delivery facilities,
including mobile services.
In adequate moisture areas, based on the principles of specialization, adequate support will be
provided to farmers through the extension system to enable them increase the production and
productivity of high value products. Extra focus will be given to production of coffee,
sesame, cotton, spices, vegetables and fruits. Broad support will be provided for preparation
and formulation of packages to scale up outstanding experiences, and for the completion and
expansion of these in order to increase the productivity and quality of outputs and to ensure
farmers realise increased incomes.
Research-extension-farmers linkage: Strengthening the linkages between research,
extension services and farmers is essential to the wider use of improved technologies and
practices. Help for farmers’ to absorb technology, scaling up use of improved technologies,
and support for the technology distribution and operating systems will be further reinforced.
The research-extension-farmers councils that are coordinating this initiative at different levels
will be strengthened in their capability and capacity to identify technological problems, to
promote joint solutions, to identify appropriate mechanisms and to become more results-
orientated.
Initiatives to identify, test, produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock, natural resources and agricultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies and their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
technology for irrigation.
Moisture deficit areas: The government strategies for agriculture development interventions in
moisture deficit areas will take into account what is necessary for adequate moisture areas.
Some of these strategies are to enhance the development agents and farmers’ skills, strengthen
the organisational capacity of the extension system, and focus on the scaling up of
outstanding experiences. The necessary work will be done to multiply technologies suitable
for these areas and to supply and distribute the same as well as establish a comprehensive
input and marketing system.
Appropriate efforts have been taken earlier to tackle problems related to moisture deficit.
These include identification of suitable technologies and practical tests to determine their
performance. During the GTP period, the major focus will be to use these tested technologies,
where appropriate, more extensively. Where there have been interventions in watershed
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development that produced outstanding results, such as soil and water conservation works,
these will be replicated. Natural resources interventions will be extended to all moisture
deficit areas and can result in rapid rehabilitation, emergence of springs from the watershed
basin and use of the resources created for irrigation purposes.
Depending on the agro-ecology, soil type and slope of the area, different technologies will be
put in place. These may include various types of stone and soil bunds as appropriate, water
retention structures, erosion protection technologies and ridges, enhanced moisture retaining
technologies, deep trenches, ponds, tie ridges and flood channels to divert rain water for use
on farms. Natural resources development and protection practices are labour intensive and
enable activities that use peoples’ labour in beneficial and productive ways. When
individuals, households or communities contribute labour it will always be on a voluntary
basis. The safety net program will be used in these cases, following the approach of common
asset development for the watershed development works as designed.
The major beneficiaries of natural resource development and protection interventions will be
the people and communities who will also be the owners of the facilities provided and users
of the developed watershed in their locality. In particular, implementation will ensure that
youth and women are well represented among participants and beneficiaries of such
initiatives.
One of the results to be achieved from watershed development in moisture deficit areas is the
augmentation of underground and surface water. To this end, the down stream watershed will
benefit from irrigation and supplementary irrigation development and use. By this means,
moisture deficit areas problems can be solved while, at the same time, practices that increase
production and ensure food security are put in place.
In moisture deficit areas, through introduction of various technologies for harvesting and
holding rain water, it is possible to produce crops once in a year. To this end, moisture
retaining works will be widely implemented. Water retention holes will be dug within and
around farm plots to ensure the success of this approach. Adequate production will be
ensured by constructing and covering water harvesting ponds using a geo-membrane, making
tie-ridges on farms, building water and moisture retaining works. Adequate moisture will be
maintained and productive cropping will enabled by diverting flood water to farms.
In moisture deficit areas, small ruminants, honey bee and poultry development will be widely
integrated with the watershed development interventions. In this regard special emphasis will
be given to sheep and goat production. Production of feed for these animals will encouraged
together with the watershed development interventions and by selecting from indigenous
breeds and using available exotic breeds and multiplying them, productivity will be enhanced.
In order to provide health care for these animals, vaccine services will be provided, and
control services provided for external parasites and diseases such as midges.
When bee keeping is integrated with watershed development, beekeeping will become a more
extensively practice and honey production increased at the household level and through youth
and women associations by introducing and supplying modern beehives. Improved poultry
breeds will be supplied to farmers to help increase their income.
One initiative for livestock resources development in pastoral areas that will be given
emphasis is the selection and distribution of local breeds for breed improvement purposes.
Animal health services, including mobile services will be expanded, and the number and
capacity of experts to deliver services will be increased. Natural resource management will be
an important component of agricultural development in pastoral areas.
52
The Food Security Program has been implemented in moisture deficit areas known for their
food insecurity problems. The program has experience with household asset building, safety
net, and settlement programs, as well as with off-farm income generating activities and with
the relationships between and integration of these activities. The safety net program will be
implemented jointly with the household asset building program. This is because it helps solve
natural resource degradation problems, which in turn are a cause of the food insecurity
problem, and because it helps to build community assets. For these reasons, efforts will be
made to increase the programs effectiveness.
By targeting those safety net beneficiaries who are involved in the household asset building
component and by giving them support for business plan preparation, training, technology
supply, credit and extension services; the program will be better able to ensure their food
security. In the household asset building component, packages of support that are based on the
food security strategy will be formulated. The packages will include those which are suitable
for moisture deficit areas and that ensure food security in low moisture areas, such as water
harvesting. The settlement program component of the Food Security Program was designed to
ensure rapid food security. It is carried out on voluntary basis and is an alternative option
available to households. In addition, those households that have very small plots, and landless
youth and women, will be encouraged to engage in non-farm income generating activities.
They will be provided with adequate support to ensure their food security by providing
packages of skill and business management training, credit and access to markets.
The early warning system will be strengthened. Early warning of disaster and capacity
building for the response to disasters will be key tasks over the GTP period. Ensuring a timely
response to disaster will be included as part of agricultural support and economic
development strategies and programs. In terms of preparedness for disasters, food and non-
food reserves will be increased with storage capacity built to meet the increase, particularly of
food security reserves.
b) Pastoral development:
The livelihood of pastoralists is intertwined with livestock resources. Improving pastoralists’
livelihood is inseparable from the development of these resources. Consequently, the main
emphasis will be given to water resources development for livestock and human consumption.
This initiative will be undertaken together with improvement of pasture land and development
of irrigation schemes. This approach has been tested and proven successful in Fentalie, and as
efforts are already being made to expand the approach to Somali, Afar and SNNP Regional
States, it will be widely expanded in the five year plan period.
The Food Security Program, when implemented in pastoral areas, will be introduced such that
they bring about complementary community investments and there by promote sectoral
development. For example, in areas where there are rivers, undertaking river diversion work
or, where there is underground water, drilling boreholes need to be implemented. Water
resources released by these investments will be made available for livestock and human
consumption, as well as to develop irrigation schemes and improve pasture land. Together
with these activities, voluntary resettlement programs will be executed that enable
pastoralists’ to establish settled livelihoods. Natural resource management will also be an
important component of agricultural development in pastoral areas. Breed improvement by
extensive implementation of better local breeds’ selection and distribution will also be given
attention and animal health services will be improved through expanding mobile veterinary
service provision, training of adequate animal health specialists and strengthening the
institutions.
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In order for pastoralists to benefit more from livestock resources, focus will be given to the
expansion of livestock marketing system. Adequate livestock markets will be provided and
the existing markets improved. Animal transportation systems and market price information
systems will be strengthened. The pastoralist extension system and research centers that
address the technological needs of pastoralists will be strengthened. Pastoralists will also be
encouraged and supported to voluntarily organize in to cooperatives so as to address their
marketing and other challenges. Efforts will be made to integrate the mutual benefits realised
by pastoralists and domestic investors involved in ancillary services such as stock fattening,
abattoirs and cattle trading. In addition, government support will be provided to private
investors for investment in pastoral areas in, for instance, slaughter houses and quarantine
stations that meet the required standards.
c) Private sector investment in agriculture
Horticultural development: Cluster based development that has developed in selected areas
around horticulture export ventures, particularly those supported by greenhouse technology,
will be strengthened. Measures will be continuously taken to address the three major
problems of the sector: marketing problem, logistical constraints, and transport limitations.
These problems will be addressed in collaboration with actors in the sector. New land with
basic infrastructure will be identified and held in a land bank for new development clusters.
Recognising, the expansion and increasing viability of farms in the vicinity of Addis Ababa,
arrangements will be made to encourage similar cluster formation and economic integration
around other major cities. In order to minimize initial investment cost, favourable conditions
will be put in place to produce green house facilities, irrigation pipes, etc. Efforts will be
made to increase the participation of Ethiopian investors in horticulture development and
integrate them with farmers engaged in horticulture production in different areas. Actions will
be taken, where necessary to encourage livestock breeders and seed suppliers in the country,
increase the number of horticulture investors, input suppliers and service providers within the
sub-sector, and promote and encourage the aims of these activities.
In the five year plan period, smallholder farmers will be encouraged to participate in an out-
growers scheme for production of exportable vegetables, fruits, spices and herbs. The scheme
will adopt a rigorous monitoring and evaluation system that includes pre- and post production
benchmarks and standards, and include human resources development that provides support
from experts with practical skills and knowledge.
Large scale farming development: Large scale farming will be undertaken by private
investors in lowland areas where abundant extensive land exists will be expanded and given
due attention, in the next five years. The necessary arrangements will be made to increase
private investors’ participation by identifying areas that are not inhabited but are suitable for
agriculture. Exploratory studies will be conducted to determine which forms of agricultural
production enterprises are most suitable for each area identified. These areas and the data
concerning them will be registered and organised in a land bank. An effective land
administration system and implementation agency that ensure transparent and accountable
land leasing and land use will be established. The government will encourage investment in
suitable areas identified by enabling local and external investors develop using lease system.
The necessary support will be given to encourage the participation of Ethiopian investors.
Efforts will be made to attract foreign investment in a manner that will be beneficial for
Ethiopia’s agricultural sector development. In order to make the areas identified suitable for
investment, essential infrastructure service will be provided and supply of transport. Labour
supply will be mobilized from labour surplus areas. Follow up inspections of land use will be
made and investor support services provided.
34
Every effort will be made to ensure private investors receive efficient services from
government. While supporting private investment in large scale farms, government’s focus is
to ensure that the products from these farms are primarily for export or raw materials for
domestic industries. For these reasons, emphasis will be put on cotton, date palm, tea, rubber
tree and similar types of crops. Double cropping systems of production will be encouraged.
d) Agricultural Marketing:
A shift in the attitudes and production processes of farmers and pastoralists from subsistence
to more market driven production has started to occur. This involves a change in attitude and
life style and a new focus on international markets. Farmers and pastoralists will be helped to
shift gradually from the production of low to the production of high value products and to
ensure that their incomes increase as a result. The transformation of the agricultural sector,
especially in terms of rapid agricultural diversification and commercialization, must be
complimented by an effective marketing system.
Modern agricultural marketing systems, such as the marketing practiced through Ethiopia
Commodity Exchange, will be strengthened. Initiatives that contribute to improving the
agricultural marketing system include identifying and expanding best practices of model
farmers, improving the quality of agricultural products, strengthening monitoring and support
systems at all levels, improving market infrastructure and the agricultural marketing
information system, building the capacity of the market actors, and strengthening the capacity
and participation of cooperatives. During the GTP period the primary markets will be
effectively linked to the Ethiopian Commodity Exchange system so as to create an integrated
and efficient marketing system.
To improve the agricultural marketing system a number of initiatives will be taken in GTP
period. The experiences of best small scale farmers will be clearly identified and be scaled up
from kebele to federal level. Quality control of agricultural products will be put in place and
the marketing system established. A strong monitoring and support system from regional to
kebele level will be put in place and will serve to ensure the integration and performance of
the market. Primary markets will be established and strengthened. Market infrastructure will
be provided and market promotion strengthened so as to identify and penetrate new markets
and increase the share in existing markets. An agricultural marketing information system will
be established so that information can be delivered to users on a timely basis. The capacity of
the market actors will be enhanced, agricultural product quality ensured and proper standards
set. Cooperatives will be promoted to play a significant role in the marketing system. The
focus will in particular be on identifying the problems of existing cooperatives and thereby
undertaking measures that enhance their capacities.
The government will work closely with private actors in order to address market problems of
particularly certain items. In this regard the government will work closely with all
stakeholders to rectify the market, logistics and transport problems observed in horticulture,
live animal, meat and other crucial export items.
e) Research-extension-farmers linkage:
Strengthening the linkages between research, extension services and farmers is essential to the
wider use of improved technologies and practices. Help for farmers’ to absorb technology,
scaling up use of improved technologies, and support for the technology distribution and
operating systems will be further reinforced. The research-extension-farmers councils that are
coordinating this initiative at different levels will be strengthened in their capability and
capacity to identify technological problems, to promote joint solutions, to identify appropriate
mechanisms and to become more results-orientated.
Initiatives to identify, test, produce and disseminate new technologies will be introduced.
These initiatives include research on crop, livestock, natural resources and agricultural
mechanization. Supply of new technologies will include the importation and adaptation of
existing proven technologies and their local production. Another initiative will involve
application of modern research techniques aimed at shortening the time it takes to supply
technology for irrigation.
f) Building the capacity of implementers
The scaling up strategy triggered to achieve a meaningful increase in smallholder production
and productivity is discussed earlier in this chapter. The initiatives involve improvement of
soil fertility, implementing improved agricultural practices, technology multiplication, and
improved supply and distribution. To successfully implement these initiatives, building the
capacity of all the implementation agencies and individuals is a decisive issue. Support to the
agricultural sector will be strengthened in terms of the effectiveness of human resources,
operations and organizations, at all levels. The development agents who provide specialized
services directly to farmers will be helped to increase their skills and motivation. Clear
procedures for how they can access suitable short and long term training will be put in place.
To provide for those areas where development agents are not adequate in number, the
Agricultural Technical and Vocational Education and Training colleges will train additional
development agents in the areas of agriculture development, animal health and cooperatives.
In order to increase farmers’ motivation, their technological skills and ability to deploy
improved agricultural practices will be improved. This initiative will use the outstanding
practices of model farmers’ via practical training sessions and materials at farmers’ training
centres. A simple farmers’ extension service that enables transfer of model farmers’
experiences, such as development groups, will be used as a preferred experience exchange
approach. The farmers training centres as one of the agencies that will be responsible for
enhancing farmers’ skills will be expanded and those which are fully operational strengthened
by increased support and equipment provision as well as by setting up organized
demonstration farms.
5.2. INDUSTRY
To ensure faster and sustained development of the industrial sector, favourable conditions will
be created for industry to play a key role in the economy. To this end, particular emphasis will
be given to two main sub-sectors. First the main strategic direction will be to support
expansion and development of micro and small enterprises. In addition, efforts will be made
to further develop medium and large scale industries.
5.2.1 Strategic Directions
Agricultural Development Led Industrialization is the fundamental building block of
industrial development in Ethiopia. To support this key policy, the private sector will be
promoted so that it can play a more significant role in sustaining economic growth. The
government’s industrial development strategy states that ensuring accelerated and sustained
industrial development is a fundamental policy direction. To implement this policy, the
sector’s development strategy focuses mainly on industries that are labour intensive, have
broad linkages with the rest of the economy, use agricultural products as inputs, are export-
oriented and import substituting, and contribute to rapid technological transfer. In other words
the key strategic direction of industrial development will be micro and small scale industrial
development.
a) Micro and small enterprises development: This will be the strategic focus of the
industrial development during the GTP period. During the plan period an
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b)
qd)
environment conducive for the emergence of new MSEs and support that increase
the productivity of the existing MSEs will be put in place. This strategic direction
will enable the development of broad-based and competent private sector. The
expansion of MSEs in urban areas will also result in large scale job creation and
thereby poverty reduction. The development of MSEs is also critical for
strengthening sustainable rural-urban and urban-to-urban functional and economic
linkages. The expansion of MSEs is crucial too for sustaining the rapid growth being
witnessed in the agricultural sector.
Medium and large industries development: particular emphasis will be given for the
following medium and large scale sub-industries:
Textile and garment industry,
Leather and leather products industry,
Sugar and sugar related industries,
Cement industry,
2 be
Metal and engineering industry,
Chemical industry,
Pharmaceutical industry, and the
Agro-processing industry,
Industrial zones development: based on their feasibility industrial zones that are
suitable for establishing medium and large scale manufacturing industries will be
developed.
Public enterprises management and privatization: The capacity and management of
public enterprises as well as privatization will be enhanced.
eI ay
5.2.2 Objectives
The development objectives for the industrial sector are to
1.
Create a broad-based spring-board for competitive domestic industrial and private
sector development;
Create employment opportunities and thereby reduce poverty:
Support sustainable development of agriculture;
Increase industrial production and productivity by fully utilizing the existing capacity
of industries;
Promote medium and large industries that use domestic raw materials labour;
Create a strong foundation for the sector to start playing a leading position in the
national economy, employment generation, and foreign exchange earnings and
savings;
Strengthen the sector’s capacity to produce locally equipments, machinery and spare
parts.
5.2.3 Major Targets
To achieve the objectives described above, the following targets have been set.
a. Micro and Small-Scale Enterprises
MSEs Development is the key industrial policy direction contributing to the envisaged
structural transformation of the economy. The overall objective and key government policy
direction for this sub-sector is to expand the quantity and quality of micro and small scale
S7
enterprises. Major targets to achieve this objective and implement the policy direction are
presented in the following table.
Table 20. GTP Targets for Micro and Small-Scale Enterprises
Description of Targets
1. Provide comprehensive support to micro and small scale enterprises so that they create employment
opportunities for about three mIn people. Achievement of this target will enhance citizens’ income,
contribute to a rise in domestic saving, and enhance the benefits of women and youth from the sector so as
to reduce unemployment and poverty.
Provide Training of Trainers for 10,000 professionals in the sub-sector.
3. Provide capacity building and basic skills training for about 3 mln operators in the areas of
entrepreneurships, technical and vocational skills.
Prepare and develop 15,000 ha of land for working premises, and construct shade and buildings for MSEs.
5. Provide micro credit and marketing information and work with producers to identify bottlenecks and
provide support where solutions are identified.
b. Medium and Large Scale Manufacturing Industries
Brief descriptions of the objectives for each designated industry under medium and large scale
manufacturing industries are presented below. The targets during the plan period are
presented in summary for all designated medium and large scale manufacturing industries in
the table below.
Textile and Garment Industry: The objectives for the textile and garment industry include
maximising utilization of existing production capacity, increased export earnings, and
increased investment in the sub-sector. This will be achieved mainly through the provision of
support and by creating an environment conducive to the industry’s development.
Leather and Leather Products Industry: The objectives for the leather industry are to
expand production of locally produced products, in terms of both variety and quality, as
substitutes for imported leather products, increase foreign exchange earnings, and strengthen
the technological capability of the industry. It is expected that these objectives will be met
mainly by the establishment of new investment projects, expansion of existing operations and
by improving the production and productivity of the industry.
Sugar and Related Products Industry: A key objective for the sugar and related products
industry are to produce sufficient sugar production to meet the local demand of sugar
production. Sugar and related products production will be expanded so as to support the
supply of energy/power and other key economic activities. The contribution of the sugar
industry to overall economic development will be increased as will job opportunities. For the
effective implementation of the industry’s objectives, human resource development,
institutional capacity building and relevant research and technological capacity will be
enhanced.
Cement Industry: The objectives of the cement industry are to fully satisfy local demand for
cement and create capacity to supply cement to the export market.
Metal and Engineering Industry: The objectives of the metal and engineering industry are
to enhance the industry’s production, quality and productivity, substitute imported products,
build-up the design and manufacturing capacity of the industry as well as supporting other
manufacturing industries.
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Table 21. GTP Targets for Medium and Large Scale Manufacturing Industries
Raise the gross value of production of the textile and garment industry to USD 2.5 bin by the end of the
plan period.
2. Scale up the production capacity of the textile and garment industries by an additional 90% during the plan
period.
3. Raise foreign exchange earnings from the textile and garment industry, by the end of 2014/15 to USD 1.0
bin.
4. Create new employment opportunities that contribute to the reduction of unemployment, for about 40,000
citizens during the plan period.
Create an annual production capacity. in existing and new tanneries of 60.2 mln square feet of finished
leather.
6. Through the importation of hides and skins, pickle, wet blue, and crust, solve raw leather supply problems
so as to upgrade the production capacity of tanneries to 90% of full capacity.
7. Raise the foreign exchange earnings from the export of leather and leather products from USD 75.73 mln in
2009/10 to USD 496.5 mln by the end of the plan period.
Raise annual production of sugar and ethanol to 2.25 mln tons, and 304,000 m3, respectively, and also
generate 607 MW of electric power, by the end of the plan period.
9. Develop an additional 200,000 has of land planted to sugar cane.
10. Generate USD 661.7 mln foreign exchange earnings from the export of 1.246.000 tons of sugar. of which
623,000 tons is raw and 623,000 tons is white sugar.
11. Raise sugar cane productivity to 155 tons per ha, by the end of the plan period.
Create additional employment opportunities for more than 200,000 citizens.
13. Raise the country’s total cement production capacity to 27 min tons (a day. month, annum) by the end of
the plan period.
14, Achieve an annual cement per capita consumption of 300 kgs.
15. Increase the gross value of domestic products of the industry to ETB 101.4 bin.
16. Raise the capacity utilization of the industry to 95%.
17. Improve annual per capita metal consumption to 34.72 kgs.
18. By improving the production and technological capacity of the industry increase local production capacity
of manufactured parts and components for selected major manufacturing industries.. namely leather, textile,
sugar, cement, agro-processing, construction and vehicle body industries to 90%, 35%, 85%, 85%, 75%,
95%, 85%. respectively.
Chemical Industries
Brief descriptions of the objectives for each designated industry under chemical industries are
presented below. The targets during the plan period are presented in summary for all
designated chemical industries in the table below
Fertilizer Industry: The objective for this industry is to produce sufficient fertilizer, using
domestically available raw materials, so as to meet the local demand for the product.
Caustic Soda and Soda Ash Industries: The objectives for these industries are to establish
the basic chemical manufacturing industries, using locally available raw materials, sufficient
to supply and satisfy the input needs of other export oriented and prioritized industries.
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Soap and Detergent Industry: The objective of this industry is to create sufficient local
capacity to wholly substitute imported soap and detergent products with local products.
Paper and Paper Products Industries: The objectives for the pulp and paper industry are to
create the capacity to substitute imported products with local products sector.
Plastic and Related Products Industries: The objective of the plastic and related products
industries is to substitute imported plastic products with locally produced products.
Rubber Tree Industry: The objective of the rubber tree industry is to create the capacity to
manufacture natural rubber locally so as to substitute wholly for imports of the product.
Table 22. GTP Targets for Chemical Industries
1. One Fertilizer Industry complex will be established to partially fulfil local demand,
2. Caustic Soda and Soda Ash Industries Establish a caustic soda manufacturing plant that can produce
50,000 tons of caustic soda per annum to meet fully the product's local demand
3. Caustic Soda and Soda Ash Industries Establish a soda ash producing plant that can produce 35,000 tons
of soda ash per annum to meet fully the product’s local demand.
4. Soap and Detergent Industry Establish new factories that can produce 166,000 tons of soap and detergent
products.
5. Soap and Detergent Industry By the end of 2014/15, raise the capacity utilization of soap and detergent
factories to 90%.
6. Paper and Paper Products Industries Establish the capacity to produce 410.000 tons of paper and
315,000 tons of pulp through new investment, by the end of the plan period.
7. Paper and Paper Products Industries By the end of 2014/15, raise the capacity utilization of the existing
paper producing factories to 98%.
8. Plastic and Related Products factories. One plastic factory will established to partially fulfil the local
demand and substitute for imported plastic inputs and products.
9. Rubber Tree Industry The target is to: Establish cultivation of 3,000 has of commercial rubber trees, and
produce and supply 10,000 tons of natural rubber latex per annum with the involvement and ownership of
Rubber Tree Development National Nucleus Project, farmers, and investors.
10. Rubber Tree Industry Establish a processing plant producing 6.700 tons of technically specified rubber
(TSR) annually.
Pharmaceuticals Industry
The objectives of the pharmaceutical industry are to create the capacity to produce essential
pharmaceutical products that substitute for imported products and also supply export markets.
This will be achieved by improving the utilisation of existing capacity and the establishment
of new industries.
Table 23. GTP Targets for Pharmaceuticals Industry
1. To achieve full utilization of the existing capacity of local pharmaceutical and medical supplies
manufacturers.
2. To raise the share of the domestic market held by local pharmaceutical and medical supplies manufacturers
to 50%.
3. To increase the export earnings of pharmaceutical and medical supplies products to USD 20 mln.
60.
Agro Processing Industry
The objectives of the agro-processing industry are to increase the productivity and capacity
utilization of the existing industries, support and promote the establishment of new industries
so as to increase the sub-sector’s production both to local and foreign markets.
Table 24. GTP Targets for Agro Processing Industry
1. To raise the productivity of the beverage industry by increasing its capacity utilization to 90%
2. To generate USD 300 min from the export of agro-processed products.
c. Industrial Zones Development
The main purpose of developing industrial zones is to attract more investment and investors
by providing land with essential infrastructural services and creating an attractive
environment for investors. The initiative contributes to the overall economic development and
poverty eradication by creating employment opportunities, enabling increased exports and
foreign currency earnings, and providing local goods that substitute for imported goods.
Accordingly the GTP target is to establish at least 4 feasible industrial zones by implementing
the following strategies.
1. Solve the problems developers encounter in acquiring basic infrastructure services such
as land, power, telecom, road, customs, etc, in a timely manner.
2. Expand and strengthen training centres and institutions so that developers have access
to a plentiful supply of skilled and competent human resources.
3. Assist developers and attract foreign investment to the industrial zones.
4. Cover 30% of the cost of providing basic infrastructure services such as water,
telephone, power, roads, etc.
d. Public Enterprises Management and Privatization
A main objective of public enterprises management and privatization is to improve the
operational performance of public enterprises and thereby increasing their competitiveness
and effectiveness. In addition, the reform with regard to public enterprises management and
privatization aims to increase export earnings. A high level of corporate leadership and
management will be ensured. Feasible projects in areas the private sector is unable to finance
will be established so as to rectify market failure and there by foster economic development.
Table 25. GTP Targets for Public Enterprises Management and Privatization
1. To raise the value added amount from public enterprises to USD 5.32 bin and an overall growth rate of
19%.
2. For all public enterprises to achieve 100% capacity utilization.
3. To increase the profitability of public enterprises, before tax, to ETB 5.25 bln - an annual growth rate of
21%,
4. To increase export earnings of public enterprises to USD 140 min.
5.2.4 Implementation Strategies
Micro and small-scale enterprises: One of the strategies to be pursued in promoting MSEs
development would be strengthening of the regulatory and policy environment such that the
environment nurtures entrepreneurship and competitiveness. The promotion of MSEs
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development will take into consideration the different stages of development of the
enterprises. Accordingly, the support provided will vary depending on whether the enterprises
are at starting, growth or maturity stages of development. Yet the strategy will particularly
encourage enterprises that display entrepreneurship, and that are becoming more and more
competitive in the market. The second implementing strategy concerns promotion of savings.
Training and complementary support will be provided to encourage savings and increase the
capital of MSE employers and employees. The micro credit support system centers around the
use of own initial capital and savings to start up a business. To supplement this however, an
accountable, efficient and transparent mechanism will be put in place to enable the provision
of credit to MSEs. In addition, mechanisms will be put in place to help MSEs with access to
production and marketing premises to ease their capital problems.
Continuous training and awareness creation initiatives will be delivered to MSE owners to
nurture their entrepreneurship. There will be further expansion of the industrial extension
service in urban areas to improve the productivity and competitiveness of MSEs. The TVETs
will serve as skill and technology centers that support MSEs through technical skill and
entrepreneurship training, technology transfer and improvements, and business counselling.
The TVET will support MSEs by ensuring a good supply of skilled labour that will be
integrated with the industrial development extension system. Government’s development
programs will be designed in a supportive manner, to develop and improve capacity of MSEs.
Government will put in place supportive market mechanisms such as export incentives,
linking MSEs to medium and large scale manufacturing industries and access to agricultural
outputs for MSE production inputs.
Medium and large scale manufacturing industries: Here too, one of the strategies is to
strengthen the policy and regulatory environment for private sector development. By
increasing transparency and eliminating rent seeking attitudes, Ethiopian entrepreneurs will be
encouraged to increase their investments in, and thus the productivity of, medium and large
scale manufacturing industries. An environment conducive to increasing the contribution of
the manufacturing sector to the economy will be created by building the capacity of Ethiopian
investors to collaborate with foreign investors. To increase the pool of adequately trained
human resources, focus will be given in higher education and in TVET to supply of the
human resources with the knowledge and skills required by manufacturing industries. The
research institutes will be further strengthened to support the productivity of manufacturing
industries. Foreign technical support will be reoriented towards strengthening leadership and
to enhance technology transfer and build capacity of professionals.
With regard to land supply and services, an efficient and effective system will be put in place
to provide serviced land at an affordable price for investment in manufacturing. Serviced
industrial zones will be developed. Industries that produce for the export market and produce
goods that substitute for imports will be especially encouraged through provision of better
access to credit and other incentive mechanisms.
The efficiency of the privatization process will be further strengthened so as to transfer those
state owned enterprises identified to the private investors. Strategies will be put in place to
ensure state owned enterprises operate in a way that minimise inefficiency and improve
profitability. Human and capital resource capacities of domestic investors will be enhanced to
support expansion of industrial and infrastructures development and pave the way for an
increase in competent domestic investors and attracts foreign investors. Other activities will
aim to attract foreign investors to increase their investment in key industries. Performance
identification mechanism will be in place to identify those investors that perform well and are
productive. A mechanism will be put in place to ensure the cross cutting sector issues in the
development plan are integrated in the industry.
5.3. TRADE
5.3.1 Strategic Directions
The trade sector plays a significant role in sustained economic growth in market-oriented
economic system. In the coming five years, raising the efficiency and competitiveness of the
sector, strengthening domestic and foreign investment and trade, eradicating rent seeking
behaviours, establishing a favourable environment for productive investors, promoting a
competitive and efficient domestic trade and distribution system, ensuring consumers’ rights,
strengthening consumer’s cooperatives, and strengthening the transparency, fairness and
accountability of the legal framework for trade activities will be the main strategic directions
of the sector.
5.3.2 Objectives
The main objectives, for the sector are to ensure modern and fair trading practices, to improve
the transparency and fairness of the institutional and organisational framework for trade
operations. Emphasis will also be given to intensifying international trade and improving
domestic marketing systems by strengthening consumers’ cooperatives and supporting access
to viable market opportunities.
5.3.3 Major Targets
Introduce fundamental change to improve trade registration and licensing services: At
all levels of trade administration, a uniform and harmonized system of trade registration and
licensing will be established to international standards. The trade registration and licensing
system will ensure fair and transparent transactions, easy access to services and focus on the
professional efficiency and competency of services provided to the business community.
Support consumers’ rights and security by improving the regulatory framework for
trade: To provide an effective and enabling regulatory framework for trade, appropriate
controls will be put in place that improve the role that the business community plays in
ensuring fair competition and identify solutions to prevent harmful practices.
Increase the benefits accruing to Ethiopia from international systems governing trade
relations and negotiations: The aim is to better integrate Ethiopia into the multilateral
trading system so as to broaden the benefits from market opportunities and increase
investment flows.
Strengthen the marketing system for domestic products: The target aims to increase
production and export diversification; establish an integrated domestic marketing system and
strengthen export development through creation of an integrated marketing system.
Strengthen the capacity of cooperatives: The target will aim to strengthen the institutional
framework and improve the human resource capacities of cooperatives.
5.3.4 Implementation Strategies
Introducing fundamental change in trade registration and licensing services: By revising
the regulations that have been applied to date, a more fair and efficient service will be
established. The trade registration and licensing aspects of the new regulatory framework will
oblige the business community to give accurate information about their business operations.
The information provided will be stored in a digital data base. In addition, criteria governing
professional efficiency will be adopted by the public agencies concerned with trade.
Proclamations and associated regulations will be prepared and enacted that, among other
purposes, provide for the granting of trade permits and facilitation of improved
implementation processes.
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Ensure consumers’ right and security by enhancing trade regulations: Ensuring the
existence of fair trade that affirms the consumer’s right and benefit will contributes to
accelerated economic growth and social development. With this focus, and on the basis of
free market principles, a consistent system will be established to ensure fair and efficient trade
registration and licensing, and healthy and fair competition among the business community.
Where harmful or illegal business practices that damage consumers’ health, or reduce their
safety, government will continue to act in consumers’ interests. To this end, consumers’
associations will be organized and supported logistically, with finance, technical support and
human resource development; the overall aim is to ensure consumers pay a fair price. These
strategies will help to ensure that consumer associations play a positive and beneficial role in
regulating prices. On the other hand, the legal and regulatory framework to minimize conflict
between the business community and consumers will be established and implemented.
Conditions that would facilitate to ensure benefits from trade relations and negotiations:
A key implementation strategy is to integrate the country into the multilateral trading system.
This will be achieved by successfully completing the World Trade Organisation accession
process and strengthening regional trade integration with the Inter-Governmental Authority
on Development, Sana’a Forum, The Common Market for Eastern and Southern Africa
(COMESA) and the COMESA-East African Community-Southern African Development
Community Tripartite. The purpose of these actions is to transform the trade negotiation
process to a higher level of effectiveness. A further task is to, conclude the Economic
Partnership Agreement with European Union. Finally, bilateral trade relations and
negotiations will be improved with all parties where mutual advantages are identified.
Strengthening domestic product marketing system: Implementation activities will focus on
integrating domestic product marketing systems, increasing production and exchange
coverage and strengthening export development. The domestic product marketing system will
be strengthened with the objectives of ensuring fair, transparent, participatory and cost
effective transactions as well as fair prices. Support will be given to promote exports, build
capacity, develop better use of information technology and develop access to finance and
logistics. These activities will be planned and carried out in collaboration with all
stakeholders.
Strengthening and supporting cooperatives’ capacity: The problems of existing
cooperatives, and of establishing new cooperatives, will be thoroughly studied and
conclusions implemented. Cooperatives will be supported with capacity building, information
technology development, access to finance and logistics developments and strengthening of
organisational and man power capacities.
5.4. MINING
5.4.1 Strategic Directions
For the mining sector, the government’s main focus is to create a favourable environment for
private investors for exploration and development of mineral resources. Among other
initiatives, the government will collect, analyse and interpret basic geo-science information
for potential investors. Policies, laws and new regulations that create an institutional
framework conducive for the development of the sector’s contribution to the economy will be
put in place during the plan period. Paramount importance will be given to ensuring this
institutional framework is enabling, encourages competition and takes account of the
international situation and national interests. Increased private investment in exploration and
exploitation of high value minerals will increase the opportunities for finding additional
deposits and the foreign currency earned by the country.
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5.4.2 Objectives
Mineral exploitation holds enormous importance for agriculture, urban development,
industrial development, construction, energy and other economic sectors. The core objectives
for the sector in the plan period include establishing accurate estimates of and utilising the
reserves of minerals that contribute to increased agricultural production through improving
soil productivity. An additional area of focus is land exploration, identification and utilization
to determine water quality and quantity for domestic consumption and irrigation. Exploration
to identify minerals whose exploitation will substitute for imported minerals will be carried
out. For construction and industrial sector inputs, exploration for and exploitation of gold,
platinum, tantalum and high value gemstones and other minerals will be initiated. These
actions will also help increase foreign currency earnings. Exploration and exploitation of
clean and renewable geothermal resources will take place. Substitution of mineral imports by
increasing the volume and types of minerals produced by large and small scale licensed
operators is a key objective. Artisanal miners will be promoted, so as to increase production
significantly, by improving the mining methods and facilitating access to mineral markets.
Specific objectives for geo-science data and mineral exploration are to improve the geo-
science data coverage of the country, provide geo-science data to international standards and
that meets the needs of investors.
5.4.3 Major Targets
The mining sector targets for the plan period are presented in the following table.
Table 26. GTP Targets for the Mining Sector
Increase coverage (of the country) of geological related
mapping and studies as follows
a) Geologi | mapping coverage at a scale of 1250,000 (%)
b) Gravity studies coverage at 1500,000 scale (%)
c) Geochemistry & mineral potential map preparation & anomalous
areas coverage at a scale of 1100,000 (%)
d) Air born geophysics data coverage (%)
e) Geo-hazard studies coverage, at a scale of 1250,000 (%)
000 (%)
2) Detailed hydro-geological studies (km?)
2. Increase evaluated and delineated areas of potential industrial minerals 48 77
exploration, at a scale of 150,000 (%)
3. Conduct metallic minerals exploration, evaluate potential at a scale of 40 63
12000-15000, and raise delineated potential areas (%)
4. Detail coal/oil shale exploration and potential evaluation in central 2 20
Ethiopia, and increase delineated potential areas (%)
5. Conduct petroleum exploration, at a scale of 150,000, in the west 120,000 165,000
Ogaden basin, and increase coverage (km*)
6. Increase pre-deep well drilling geothermal detail study coverage, at a 62 68
scale of 120,000 (%) "
7. Complete the shallow depth 3MW geothermal energy exploration in
95 100
Tendaho (%)
8. Complete a deep well geothermal exploration, of a site in Tendaho 100%
capable of producing 20MW (%)
Continue exploration of 40 MW geothermal energy source for power
12.5 100
supply in Aluto Langano (%)
10. Increase country-wide core drilling (m) 7.000 16.000
11. Increase water well drilling (m) 600 7,500
12. Increase geothermal drilling (m) 10,000 20,000.
13. A beneficiation (crushing and separating ore into valuable substances or waste by a variety of techniques)
test laboratory will be established between 2010/11 - 2013/14, and after trial tests for 5 selected industrial
minerals, a detailed beneficiation test study will be conducted
14. Based on geosciences information collected. a 40 promotional documents will be produced to familiarise
investors with potential sites for mineral exploitation in the country, as a result it will increase from 4 in
2009/10 to 8 in 2014/15
15. Achieve 100% ISO/17025 accreditation for the Geosciences Laboratory during the plan period
The targets to be achieved by the end of the plan period for mineral and petroleum investment
expansion, artisanal mining and marketing promotion, geosciences and energy sector research
and development are presented in the following three tables.
Table 27. GTP Targets for Mineral and Petroleum Investment Expansion
1. __ Increase the volume of mineral investment (mln ETB) 12.7 20
2. Increase revenue from royalties and other licensing (mln ETB) 69 150
3. _ Increase annual revenue from mining tax (mln ETB) 230 250
4. Increase foreign currency earnings from minerals(mIn USD) 108 277.3
5. __ Increase the production of gold (Kgs) 3,907 8,700
6. Increase the production of tantalum (tons) 202 300
7. _ Increase exports of marble (m*) 99.34 140
8. Increase investment in the petroleum sector (mln USD) 238 538.7
9. Increase total number licenses issued to petroleum exploitation sector 22 29
10. Increase number of international extractive industry transparency 10 310
initiatives member companies
11. Realise exports of 20 min litres of mineral water.
12. Realise exports of 1 mln metric tons of potash.
13. Realise foreign currency earnings of USD 1.36 bin from minerals and resources such as base metals and
mineral water.
14, Make ready the Calub and Hilala gas fields for development.
15. Enable 300,000 km? of land to be categorised as petroleum provinces by obtaining geological and
geophysical data from the existing international companies involved in exploration.
Table 28. GTP Targets for Artisanal Mining and Marketing Promotion
1. Increase gold purchased by the National Bank of Ethiopia (Kgs) 2.866 5.250
2. Increase exports of gemstones Kgs) 3,100 4,000,
3. Increase the quantity of tantalum marketed (ton) 63 90
4. Increase the number of mining co-operative associations 243 350,
GTP mam for Geosciences and Energy Sector Research and Development
1. Identify, select and support about eight need based and problem solving research proposals of graduate
students.
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2. Establish a national inventory and development database for scientific instruments and laboratories in
geosciences and energy.
3. Develop integrated geo-scientific applications and initiate a study of appropriate renewable energy sources
for the sustainable development of Addis Ababa and its surrounding areas.
4. Develop integrated geo-scientific applications and initiate a study of appropriate renewable energy sources
for the sustainable development of Dire Dawa
5. Build increased capacity in scientific instruments research and laboratory facilities that support the sector
where they are needed but not available.
5.4.4 Implementation Strategies
Enhancing of Geo-Science Data Coverage and Quality: In this regard, the plan is to
improve the coverage of geo-science data required for development of minerals essential for
agriculture, construction, energy, manufacturing and development of precious metals. In order
to improve the quality of data investments will be carried out in the organizational,
technological capability, standardization and human resource development.
Mineral and Petroleum Investment Expansion: Specific implementation strategies for the
expansion of mineral and petroleum investment include encouraging private investment in
development of the sector. This will be achieved by improving the existing mining laws to
make them more attractive to potential investors, studying national and international minerals
markets and providing advice to private investors where higher market demand is identified.
Improvements in the coverage and quality of data for mineral and petroleum development are
expected to enhance investment in the sector. More importantly, investments in mining and
petroleum exploration and development will be guided by a comprehensive regulatory and
policy framework that ensure transparency and accountability.
Undertake Artisanal Mining and Marketing Promotion: During the PASDEP five year
period, the Ministry of Mines in collaboration with stakeholders, tried to promote artisanal
mining and regulate illegal miners and smugglers by introducing new proclamations and
directives covering exploitation of precious minerals. Nonetheless, there are still a few miners
and smugglers involved in illegal mining and export of precious minerals. Their activities
have serious negative social, economical, environmental and political impacts, particularly in
the areas where they operate. The government is strongly committed to establishing a working
environment conducive for artisanal mining and marketing promotion. As part of this
commitment, a new proclamation No. 651/2001, which aims to reduce illegal mining, is
currently being implemented. To achieve this, and to promote mineral resource development
overall, the government will, in collaboration with all stakeholders, use the experience it gains
during implementation, and follow up on its regulatory and promotional strategies for the
sector. Skill development, technical support and marketing supports will be accorded to
artisanal miners. Women are encouraged and specially supported to participate and
accordingly benefit from the sector.
Undertake Geosciences and Energy Sector Research and Development: Implementing
strategies for the geosciences and energy sector research and development support the
mandate of the Ministry of Mines to establish needs-based research, training institutes and
centres of excellence. With this in mind, the Ministry will undertake a research and
development program across a broad range of geosciences and energy areas, to introduce
cutting edge and appropriate technologies as well as new methods.
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5.5 INFRASTRUCTURE DEVELOPMENT
Provision of affordable physical and economic infrastructure, such as_ transportation,
communication and energy makes a crucial contribution to economic growth, employment
creation, social welfare and the expansion of the industrial sector. In the years prior to the
GTP, a massive capital investment was made to expand infrastructure services. However,
significant challenges have hindered faster pace of infrastructure development. In addition to
the high investment required, the foreign exchange needs have constrained the provision of
infrastructure to the extent desired. Inadequate domestic human and organizational capacity
for infrastructure development has led to a dependency on foreign capacity, which has in turn
undermined the pace and coverage of infrastructure delivery
In the GTP period, very large investments will be made to further expand infrastructure
services, to strengthen the foundation for long-term sustained growth and development, and in
doing so, the challenges encountered during the PASDEP implementation will be addressed
and resolved. To date financing for capital investment has come from Treasury and Official
Development Assistance sources. To increase the financial resources available, emphasis will
be given to improving the level of domestic savings and foreign exchange savings through
promoting import substitution of imported materials and construction services with domestic
products and services. Nevertheless, it is envisaged that domestic resources will still not be
adequate to fully finance the infrastructure programs of the GTP. Import substitution of
materials and construction services will help, but is not expected to fully address the foreign
exchange constraints. Thus, the mobilization of external official development assistance will
be important in this regard.
5.5.1 Roads
Strategic Directions
Expansion of the road network is critical to the development of other key economic and social
sectors such as agriculture, industry, mining, tourism, education and health. Planning of road
infrastructure must be integrated with the objectives, strategies and programs of these sectors.
The success of development strategies of sectors depends on the efficiency of the transport
sector in general and of the road sub-sector in particular. For these reasons, due emphasis has
been given to the development of the road sector in the GTP. The government has recognized
the importance of road transport in development of the national economic and social activities
and hence attaches a high priority to improving the road infrastructure, as is reflected in the
Road Sector Development Program which was launched in 1997.
Objectives
Objectives of the Road Sector Development Program are to expand the road network so as to
improve access to rural areas, improve the quantity and quality of the road network overall,
and develop the organisational capacity of the responsible road agencies for effective
management of road networks. Based on these objectives, road sector policy and strategies in
the next five years are directed towards increasing effectiveness of all ongoing road sector
development initiatives, improving the rural road network and connecting more or less all
kebeles to all weather roads.
Major targets
Based on the Ethiopian Roads Authority prioritization criteria, the Road Sector Development
Program consists of the following federal road targets: rehabilitation of 728 kilometer of
trunk roads, upgrading of 5023 kilometer of trunk and link roads, construction of 4331
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kilometer of new link roads, heavy maintenance of 4700 kilometer of asphalt and gravel roads
and routine maintenance of 84649 kilometer of road network.
In universal rural access program also construction of 11212 kilometer of new rural roads by
Regional Road Authorities and construction of 71523 kilometer of woreda roads by woreda
road offices will be undertaken. The government has envisioned connecting more or less all
kebels to the nearby all-weather roads as well as interweaving every major city by increasing
investment in road infrastructure.
A summary of major road sector targets for each year of the five-year period are presented in
the table below.
Table 29. GTP Targets for the Roads Sub-Sector by Budget Year
1. Federal and regional total road length( km) 48.800 51.636 54.818 58.211 61.771 64522
2. Length of Woredas all-weather road ( km) 0 9,568 24,299 40,044 55,790 71,522
3. Kebeles connected to all-weather roads (%) 39 48 63 78 93 100
4. Average Time taken to reach nearest all- 37 3.0 23 19 16 4
weather road (hrs)
5. Area further than 5km from all-weather 64.1 373 48.7 40.9 34.3 29.0
roads (%)
6. Area further than 2km from all-weather 83.7 80.0 75.0 70.0 65.2 61.0
roads (%)
7. Road density (Km/1,000km?*) 44.5 55.6 719 89.3 106.9 123.7
Road density (Km/1.000 population) 0.64 0.78 0.98 1.18 1.37 1.54
9. Roads in acceptable (Fair + Good)
Condition (%) 81 81.3 83.0 84.6 85.9 86.7
10. Number of Project operated/carry out by 5g éi és BF 40 -
domestic contractors (%)
11. Average vehicle Km of travel (min km) 9.6 10.1 10.6 1.1 1157: 12.3
Implementation Strategy
The implementation strategy focuses on restructuring of the implementing agency, capacity
development in the road sector, financing and safety measures. Accordingly the regulatory
and operational arms of national road management will be split into independent
organisations. In addition the institutional framework and organisational capacity of the
regional road agencies and woreda road bureaus will be strengthened, by, among other means,
human resource development, strengthening integrated road network planning, and improving
the effectiveness of road maintenance. Other implementation strategies include actions to
increase revenues of the road fund office, build the capacity of local contractors and
consultants, introduce and expand use of intermediate equipment technology in road
construction, improve equipment maintenance services, use alternative road project facilities,
utilize labour-based and labour intensive approaches and technologies, and improve
enforcement of axle load regulation. Lastly, improved environmental management systems
and HIV/AIDS activities will be mainstreamed in all road projects.
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5.5.2 Railway Transport
Strategic Directions
Railway transport is a cost effective and time efficient means of carrying bulk inputs and
produce. Given the rapid economic growth in the country therefore construction of a national
railway network has become an important task. To support this strategic direction, the
capacity of domestic small and medium metal manufacturing and engineering industries to
produce sleepers, locomotives and rail spare parts and inputs for the railway network
infrastructure construction, will be promoted.
Taking into account the economic advantages of railway transport, in the long term, it is
planned to expand the network so as to connect the country with neighbouring countries and
different ports. To realize this long term strategic direction, in the short term, government will
mobilise and build local capacity (to provide services as well as human resources) to expand
the railway network, while also developing partnerships with foreign actors. Key challenges
in the expansion and development of the railway network refer to the enormous initial
investment, the human and other resource capacity and specialised experience in railway
development required. Strategies will therefore be developed and implemented in order to
mobilize domestic and foreign financial resources as well as build human and organizational
capacity domestically. During the plan period, due emphasis will also be given to the efficient
and effective administration of the network and rail services.
Objectives
The objectives for the sub-sector are to build a nationwide railway infrastructure network,
develop, and continuously improve local capacities of civil engineering construction
companies and metal and electro-mechanical industries, and maximise technological transfer
useful to the sub-sector. Integrated within these objectives will, in most cases, be strategies to
ensure that development of railway infrastructure is operationally sustainable.
Major targets
The main targets for the railway sub-sector during the plan period are presented in the
following table.
Table 30. GTP Targets for the Railway Transport Sub-Sector
1. Construction of a total of 2.395 km of national railway network, out of which about 1807.9 km will be
completed (Addis Ababa-DireDawa-Dewele 656 km: Awash-Woldiya-Mekele 556.2 km: Woldiya-
Semera-Galafi 256.4km and Addis Ababa-Ejaji-Jimma-Bedele 339.3 km). while efforts will be exerted to
construct the remaining 587.1 km of network ( Mojo-Konso-Weyto).
2. Construction of 34 km of light railway network along two corridors (from east to west and north to south)
providing the capital city Addis Ababa with a mass transit system. This initiative will involve40-50
companies working on design and construction of network and more than 20 manufacturing companies
producing spare parts and providing metal engineering and electro-mechanical services
Implementing Strategies
To achieve the targets set for the railway sub-sector the key strategy concerns development of
local capacities in the railway network development processes. This strategy will include
specific help for local metal manufacturing and electro-mechanical companies to produce
materials for railway network development. A conducive policy and regulatory environment
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will be created for the participation of private sector in the sub sector. A public/private
partnership framework and system will be designed for the sub-sector. Adoption of different
rail design, construction and management methods is a further strategy, as is implementation
of study findings on railway network construction, service delivery and security. The
government will adopt approaches and mechanisms that maximise use of the abundant labour
available for the construction of the railway network and will create an environment
conducive for the establishment of local train maintenance companies.
5.5.3 Energy
Strategic Directions
The strategic directions during the GTP period are development of renewal energy, expansion
of energy infrastructure, and creation of an institutional capacity that can effectively and
efficiently manage such energy sources and infrastructure. During the GTP period, the gap
between the demand for and supply of electricity will be minimised. Per capita consumption
of electricity of households is expected to increase during the GTP period. Moreover it is
planned to produce sufficient electricity for export. The electric power supply coverage will
be increased through the ongoing rural electrification access program. Government will
ensure a cost effective, high quality supply of energy, as well as energy efficiency and
conservation. The regulatory framework will be effectively enforced.
In order to promote and realize the country’s Green Development Strategy, ongoing initiatives
to generate electricity from hydro power and other renewable energy sources like bio fuels,
solar and wind will remain the strategic directions during the GTP period. In addition new
technological innovations will be utilized to ensure that the energy sub-sector’s doesn’t emit
additional carbon-dioxide. To promote and sustain rural alternative energy development
activities, efforts will be made to enhance the capacity and knowledge in this regard of
regions, producers and consumers. The distribution of wood saving materials and
technologies throughout the country will be continued.
Objectives
The major objectives for the energy sub-sector are to meet the demand for energy in the
country by providing sufficient and reliable power supply that meets international standards at
all times. This objective will be achieved by accelerating and completing the construction of
new hydropower electric generation projects, and strengthening the existing transmission lines
to provide improved access to rural villages all over the country. An additional objective is to
export power to the neighbouring countries. Modernizing the distribution system will also be
considered, so as to reduce power losses to international benchmark levels. Development of
alternative energy from renewable sources such as wind, solar biomass, etc will be integrated
with the country’s Green Development Strategy. During the plan period an objective is set
also to transform the national capacity in developing and managing energy by radically
reforming the national power company such that the electric power supply services reach
international standard.
Major targets
The targets for the energy sub-sector during the plan period are presented in the following
table.
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Table 31. GTP Targets for the Energy Sub-Sector
Hydroelectric power generating capacity (MW) 2,000 f 10,000
2. Total length of distribution lines (Km) 126,038 258,000
3. Total length of rehabilitated distribution lines (Km) 450 8,130
4. Reduce power wastage (%) 11.5 5.6
5. Number of consumers with access to electricity 2.000.000 4,000,000
6. Coverage of electricity services (%) 4l 75
7. Total underground power distribution system (Km) 97 150
Implementing strategies
The key implementation strategy is capacity building in energy development and
management. Thus the national electricity company will go through radical reform such that
the national institutional capacity to generate power, construct the infrastructure and
efficiently and effectively manage the power and infrastructure shows fundamental
improvement. Other implementing strategies that will be employed to achieve the above
objectives and targets for the energy sub-sector are strengthening organisational
implementation, capacity (the electric power company go through a complete restructuring
process), increasing development of electric power generation and access to services,
strengthening regulation of electricity providers so as to ensure a reliable service, expanding
alternative renewable energy production, increasing emergency oil reserves and ensuring
protection of natural resources, and enhancing community development. Gender and
HIV/AIDS issues will be mainstreamed in all energy sector activities.
Electric Power Generation Construction Program: Ethiopia has a potential to generate
45,000 MW of hydroelectric power. However, currently only 2000 MW is generated. It is
planned to increase this level of power generated by four times. Implementation strategies are
to promote a mix of energy sources by developing renewable wind and geothermal resources,
prevent power loss and promote proper utilization of energy, reduce unit cost of power
generation investments and operations, and provide electricity at affordable prices.
Electricity transmission lines construction: To ensure a reliable electricity supply and
transmit the electric power efficiently and economically to consumers, construction of a
reliable distribution and transmission networks is essential. To this end, due emphasis will be
given in the Universal Electrification Access Program to construct new transmission lines and
connect them to the national grid as economically as possible and to reduce power losses.
Further implementation strategies are to minimize the cost of construction of transmission
lines, improve control of power sources and construct additional transmission substations so
as to achieve efficient power distribution.
The Power Distribution and Expansion Program will adopt implementation strategies to
modernise the power distribution system with the aim of increasing service delivery
efficiency, cost saving and reduction of power losses in the distribution system. Action will be
taken to ensure availability of efficient, reliable, high quality and economical electricity
services to consumers, improve power supply service quality, provide outreach facilities to
new customers, and to reduce power interruptions and losses by expanding the network and
maintaining distribution lines.
The Universal Electrification Access Program will adopt implementation strategies that
provide access to electricity for rural towns and villages, commercial agricultural production,
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and irrigation pumping. The program will be executed in close collaboration with, and ensure
participation of, local contractors and manufacturers, technical and vocational school
graduates, and other stakeholders. Electricity is an essential part of the rural transformation
agenda because it is an important input for businesses and productive enterprises in small to
medium sized towns and as an input for agriculture, irrigation pumping, commercial
agricultural production and processing. Equitable distribution of services to the rural
economy, agricultural and other sectors development has a beneficial effect nationally.
The national regulatory system to ensure conservation of electricity and energy
efficiency: Implementation strategies will seek to meet increasing demand for energy by
encouraging private investors and government electric utilities engaged in the sector. Actions
taken to support this strategy include licensing applicants and granting certificates of
competence to potential energy producers. A further approach is to ensure that reasonable
tariff structures that are affordable are applied. Energy audit activities will involve
establishment of energy efficiency management sections for selected consumers, particularly
high energy consuming organisations.
A study of requests for annual tariff revision by developers will be carried out with the aim of
establishing an economical and fair for electricity services, while at the same time
encouraging investments and its recommendations implemented following agreement and
endorsement by the responsible authorities. Energy conservation and mitigation of energy
losses will be pursued for each economic sector. The measures to be taken will identify the
most efficient energy consumption technologies, establish performance standards, implement
and conduct regular inspection activities on electric utilities, prepare reports and taking the
corrective measures necessary.
Bio-fuel development: Ethiopia’s emissions of CO are very low compared to developed
countries. Nonetheless, access to a range of reliable, affordable and clean energy sources is
critical for sustainable growth. One of the potential means to realize the shift to more
sustainable fuels is the production of bio-fuels and other renewable energy sources, as a part
of Ethiopia’s green development strategy. As stated in the bio-fuel development strategy,
Ethiopia has suitable land for bio-fuel (bio-ethanol and bio-diesel) development.
Implementing a bio-fuel development initiative, in line with country’s Green Development
Strategy, will enable bio fuels to substitute for imported petroleum fuel and even sufficient for
export. Moreover, jobs will be created locally at different stages of bio-fuel production
process and thus contribute to raising living standards. Action will be taken to expand bio-fuel
plantations, introduce use of bio-fuel in households for cooking and lighting, standardize and
refine information relating to land, technologies and markets for bio fuel development, and
promote knowledge about bio fuel use in each region. Benefits of this initiative include,
improvement of the country’s carbon sink, reduction in deforestation, and reduction in the
time spent on and burden to women and children in searching for firewood. Steps will be
taken to involve investors and other stakeholders in bio fuel development processes.
The Bio-fuel Development Program will implement strategies during the plan period to create
a network of implementing agencies, research institutes and universities to adapt and promote
sustainable development of bio-fuel technology. The network will collect and organize data
on bio-fuel land, technologies and markets, coordinate involvement of relevant stakeholders,
support and motivate private investors’ involvement in the bio-fuel development activities,
involve farmers in production and supply of bio-diesel by co-coordinating the work of
relevant extension services, and facilitate experience sharing with countries where bio-fuel
development is at more advanced stage of development.
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Alternative energy development and promotion will develop energy resources and
technology by adoption, adaptation or innovation of new designs. This strategy aims to
produce prototypes and test the efficiency of energy sources and technologies based on
consumer demand. Other alternative energy development and promotion initiatives are to
work closely on energy resource identification and technologies with government agencies,
NGOs and private companies and provide training for the business sector including
manufacturers. Awareness within communities will be created and promoted. Demand for
alternative energy technologies will be improved and loans arranged for manufacturers and
consumers to install alternative technologies.
Although, Ethiopia is endowed with a variety of energy resources, many of these resources
have not yet been exploited. A study of efficient alternative energy resources and usages, and
the means to encourage their development will be carried out. Attention will be given in the
study to environment protection and conservation. The study will involve collaboration
between government, regional states, private sector and other stakeholders. Application of
improved alternative energy technologies will help minimize deforestation, reduce indoor air
pollution that results in health problems and save the time women and children spend
searching, collecting & transporting fuel wood. As a result, families will have more time for
other productive work. By building the capacity for regional implementation agents and other
stakeholders’ alternative energy technologies and resources will become more widely
available to users, increase sustainable energy use and benefit communities.
Capacity building: The on-going program to strengthen the technical and vocational skills of
school graduates, and of manufacturing industries relevant to the energy sub-sector, so as to
build own capacity and reduce foreign currency needs, will be continued.
Strategic petroleum reserve facility development and operation: Being a petroleum
importing country, the reliable and consistent supply of petroleum is essential for
development of the Ethiopia’s economy. It is a strategic necessity for all oil importing
countries to secure their access to oil; it must be available continuously and it present and
future supply must be secured. A number of facilities have been constructed made operational
in previous years. Currently Ethiopia’s strategic petroleum reserve capacity is 369,800m>,
which is about a two months supply. During the GTP period, development of the strategic
petroleum reserve facility will cover all areas associated with development and operations.
These include: the construction of storage capacity, maintenance of facilities for the storage of
petroleum, oil acquisition and transfer to storage and operational readiness activities such as
distribution of the stock to local commercial distribution systems.
The current strategic petroleum reserve storage capacity will be increased from 369,800m? to
429,000m3 which provides for 45 days consumption. The current strategic petroleum reserve
stock of 87000m? will be increased to 429,000m> which, as stated above, covers 45 days
consumption. Strategic petroleum reserve facilities will be maintained and the operational
readiness of the strategic petroleum reserve ensured. The implementation strategies adopted
for the strategic petroleum reserve facility include increasing the size of strategic petroleum
reserve storage capacity, increasing the size of strategic petroleum reserve stock, and
maintaining the strategic petroleum reserve facilities and the operational readiness capability.
Petroleum downstream operations standards & specifications regulatory program:
Ethiopia has been importing crude petroleum oil for many years. Previously, there was no
official governmental agency with the responsibility regulate and manage petroleum
downstream operations standards & specifications and provide transparent standards,
specifications and management. As a result the country has lost large quantities of foreign
currency and petroleum products, and as a consequence suffered contamination and
4
environmental degradation. Inspection of petroleum downstream usage is a new area for
regulation and control. It is intended to raise regulation and control to the international level,
and provide effective monitoring and sufficient inspection capability. Serious attention will be
given to the addressed and resolve the problems, build, extend and provide an efficient
petroleum products supply and utilization system.
The implementation strategies include the preparation of directives, regulations, and technical
standards for the inspection and monitoring of petroleum downstream services, so that all the
downstream bodies are covered by an integrated law and regulation detailing standards and
specifications. The regulatory framework will ensure the quality and reliability of the services
provided by petroleum downstream operators. Petroleum products distributer will be
inspected to ensure petrol depots, transportation and distribution facilities, including their
construction and performance, fulfil international standards. Systems will be put in place to
ensure that petroleum products, facilities, storage, transportation and distribution meet proper
industry standards.
5.5.4 Telecommunication
Strategic Directions
The strategic directions here are to ensure that the information and communication
infrastructure already in place is effectively utilized such that it provides higher qualities of
information and communication services. In order to effectively utilize the infrastructure and
deliver higher quality services at competitive prices the telecom company will undergo radical
institutional reform such that its institutional capacity shows fundamental changes. In
addition, ensuring a secure IT system will be a strategic direction of the GTP, while
development of the domestic ICT sector will also be accorded due emphasis.
Areas of focus for the telecommunications sub-sector are to upgrade the existing ICT network
to accommodate the latest information technologies and improve network quality and expand
services. An all inclusive telecommunication service delivery and ICT support where it is a
requirement of other development programs will be put in place. The human resource
capacity of the sector will be built. Ongoing projects to develop the network will be finalized.
IT services available across the country, including high quality integrated telecommunication
services packages (converged value added services), will be provided, at a reasonable price.
Fixed line and mobile telephone service provision will be expanded nationwide. To
accommodate the latest information communication technologies, all telecommunication
infrastructures will be digitized. The internet service expansion program will benefit city
governments, woreda cities, academic institutions, including high schools and universities,
research institutes, social organizations and the private sector. The ongoing network
expansion program will be strengthened by building a high capacity fibre optic transmission
line and linking it through neighbouring countries to international marine cables. This
initiative will provide the country’s global digital gateway.
The ongoing comprehensive Universal Telecommunication Access Program will be expanded
and extended to include additional social services apart from its existing calling service. This
will enhance the Program’s role in the implementation of development strategies and plans of
other sectors. Telecom centres will be built and those already operational in rural areas will
expand their services and be better integrated with ICT and other programs. Developing and
expanding human resources, especially for regulatory tasks in the fast advancing and growing
sector, is very important and has been given due attention during the plan period. It is also
important to ensure that the telecommunication service is up to international standards and
a
where telecom resources are limited (for instance national frequency spectrum, telephone
numbers, numbers and internet provider addresses) that they are used fairly and economically.
A further focus is to ensure the security of the telecommunication service by combating
illegal use of the network and transmissions of illicit content.
Objectives
The key objectives are to ensure a competitive (in terms of prices and quality) and secure
telecom services, and build a far reaching national capacity in telecom development and
management. Emphasis is on finalizing the construction of the on going network
infrastructure and applications to expand services. A need based network may also be
expanded. The rural universal telecommunication access program will be expanded and the
quality of fixed line, mobile phone, internet and data service provision improved and
maintained. An environment conducive to use of the latest telecommunication technologies
will be created. A fair and economical utilization of national frequency spectrum,
telecommunication numbers and internet provider addresses is ensured Illegal
telecommunication activities will be prevented
Major Targets
The targets to be achieved by the telecommunications sub-sector are presented in the
following table.
Table 32. GTP Targets for the Telecommunications Sub-Sector
1, Number of fixed line telephone subscribers (mln.) 1 3.05
2. Fixed line telephone density (%) 1.36 3.4
3. Number of mobile telephone subscribers (mln) 6.52 40
4. Mobile telephone coverage (%) 8.7 45
5. Number of internet service subscribers (min) 0.187 3.69
6. Rural telecom access within 5 km radius of services (%) 62.14 100
7. Wireless telecom service coverage (%) <50 90
8. Global link capacity (Gb/s) 3.255 20
Implementing Strategies
Three key implementation strategies are identified. First, the national telecom company will
be reformed such that it is transformed to have an institutional capacity that delivers high
quality and competitive services. The telecommunications provider will be fundamentally
upgraded to meet international standards using the services of reputable foreign companies.
The second strategy concerns the establishment and effective enforcement of comprehensive
policy and regulatory frameworks to prevent and control illegal activities in the industry. An
effective mechanism for control and prevention of illegal telecommunication activities will be
put in place to ensure telecommunications security. Finally, all initiatives in the industry will
be designed and executed such that they promote the domestic production ICT goods (inputs,
components, etc.) and domestic delivery of ICT services during the GTP period.
A human resource capacity building program will be designed and implemented. Steps will be
taken to put in place better quality fixed line, mobile and internet services.
Telecommunication sub sector implementation strategies include design and implementation
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of systems to prevent integrated system failure, and ensure its maintenance and improvement,
measure network flow and quality, and customer compliance. The telecom service quality,
network capacity and frequency spectrum utilization and control will be strengthened.
Monitoring of rural kebeles’ telecommunication services will be increased and an
administrative assistance strategy provided and disseminated. The quality and traffic capacity
of service on international lines will be improved. A strategy to raise additional funding
resources for the sector will be developed. A strategy for capturing more customers via
outsourcing, marketing and business will be designed and implemented.
5.5.5 Potable Water Supply and Irrigation Development
Strategic Directions
Priorities for water resources management will support overall GTP objectives for integrated
and sustainable development. Sub sector specific priorities are to improve utilization of water
resources by interconnecting different sectors and users, ensure fair and equitable utilization
of water resources taking into consideration existing demand and future generations’ needs.
The impacts of runoff, drought and other natural hazards will be mitigated.
An integrated approach will be taken to water resources development and utilization that
gives due consideration to its security and safety as a resource on the one hand, while also
considering fully the parallel needs of resource usage such as water supply, development of
irrigation, river basin administration, watershed management and related activities. An
integrated approach to water resources management will take into account complementary
natural resources and sectors such as agriculture, health, mining and energy, etc. Attention
will be given to the contribution the water sub sector must make to achievement of MDG
targets. Development initiatives will include water supply, irrigation and drainage
development, a hydropower study and design, a surface and ground water study, an integrated
master plan study and watershed management.
Objectives
The development objectives, during the GTP period, are to develop and utilize water
resources to fulfil social and economic priorities, sustainably and equitably, by increasing
water supply coverage, and developing irrigation schemes that ensure food security.
Major Targets
To meet the above objectives, during the GTP five year period, the following targets have
been set for potable water supply and irrigation development during the plan period (and for
each budget year, in the case of potable water supply).
Table 33. GTP Targets for Potable Water Supply and Irrigation Development
1. Urban potable water supply coverage within 0.5 km radius (%) 91.5 100
2. Rural potable water supply coverage within 1.5 km radius (%) 65.8 98
3. National water supply coverage (%) 68.5 98.5
4. Reduce non functional rural water supply schemes (%) 20 10
5. Irrigation Feasibility and design (ha) 462.114 1,208,448
6. _ Irrigation Construction (ha) 127.242.6 785.582.6
7. Irrigation Rehabilitation (ha) - 6.570
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8. Pre-feasibility study on multipurpose hydropower projects aay asad
(MW)
9: Feasibility and detailed design on multipurpose hydropower 1431 8,398.4
projects (MW)
10. Increase the ground water information and knowledge (at 5 _
150,000 scale) mapping coverage (%) :
11. Increase coverage of national surface hydrology stations (%) 85.6 90
12. Increased integrated river basin management master plan (%) 25 63
13. Rehabilitate degraded and damaged land (ha) 1,000,000
14. Upgrade information provided at the surface hydrology stations to international standard
It is also estimated that, nationally, a potential of 5.1 mln ha of land can be developed through
various irrigation methods including, pump, gravity, pressure, underground water, water
harvesting and other mechanisms. Based on this estimate of potential, irrigation development
activities, particularly small scale irrigation will be given priority in the plan period.
Implementation Strategies
The implementation strategies for potable water supply are to ensure a dependable and
sustainable water supply based on demand and efficiency measures. Sustainable and feasible
technologies will be implemented to improve the rural water supply coverage. Active
management and operational mechanisms of existing water facilities will be ensured. Water
economy measures will be developed and implemented for existing water schemes and,
before they are constructed for new schemes. Additional implementation strategies will aim to
satisfy water demand at the household level while taking account of the country's capacity.
This strategy will use criteria based on socio-economic criteria to assure consumers of an
equitable and efficient distribution, and utilization of the water in excess of the basic demand.
A strategy will be pursued to prioritize low cost schemes and projects that will be
implemented through loans, implement measures such as cost recovery in urban water supply,
and build capacity at all levels of water resources management.
The implementation strategies for irrigation and integrated water resources management are,
development of new irrigation schemes, construction shallow and deep wells for irrigation in
areas rich in ground water, facilitating conditions for medium and large scale irrigation
development (building dams and related infrastructure), implementation technologies and
mechanisms that improve efficient water use in medium and large scale irrigation schemes,
and establishing and integrating meteorology and hydrology services at all levels (from
federal to district or woreda). Local resources, skills and knowledge in water resource
identification and utilization will be enhanced, studies and research into traditional and
alternative low cost technologies will be conducted, and appropriate technologies developed.
5.5.6 Transport Services
Strategic Directions
Other than development of road transportation infrastructure, strategic directions that will be
pursued will include increasing the effectiveness of the transport system so that the cost of
transportation decreases. The private sector’s capacity and role in service provision will be
increased. The sub sector will be restructured and be operationally improved so that
transportation services are more flexible, competent and provide overall a more efficient
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service. The time rural people spend travelling will be reduced by providing all weather roads,
thus giving them more time to spend on productive activities.
Increasing economic activities in Addis Ababa, Dire Dawa and the main regional cities
demand expansion of urban transportation systems. This in turn requires development of
better transport systems and services, and mass transport infrastructure. Development of urban
transportation systems will be based on efficient urban land utilization and development
planning as well as analysis of existing and future traffic density patterns. One of the key
challenges for urban transportation is an implementation capacity gap and, for this reason,
emphasis will be given to build the appropriate human resource and administrative capacity.
Considering the relatively low vehicle density in the country, the number of traffic accidents
is very high. Preventing and reducing traffic accidents and the resulting loss of human life and
property, is imperative and timely. Accordingly, an integrated traffic security and modern
traffic management system, supported by information technology, will be developed and
implemented in all regions.
Objectives
A main objective of the transportation sub-sector is to ensure that the public transport system
is efficient and affordable so that the travel time of particularly the rural populations is
reduced and they have more time for productive activities. A second main objective is that the
urban transport system is efficient, secured and well integrated. A further objective is to build
the effectiveness of regulatory bodies by putting in place an improved legal and regulatory
framework. An effective institutional framework will help to ensure private transport service
providers are competent and provide proper standards of service. The human resource
capacity for better management and service delivery will be developed. A national data base
for freight and public transport will be created that will reduce the time processing
administrative requirements and the costs of freight transport.
Major Targets
For the GTP period, the following targets have been set for the transport services sub sector.
Table 34. GTP Targets for the Transport Services Sub Sector
ncrease the available seat km (bln) BE 32
2. Total distance covered by buses ( km) 70,000 100,000
3. Daily motorized transport supply of Addis Ababa City aR 5008360
(passengers’ seats)
4. Public transport supply coverage (%) 14 48
5. Waiting time for public transport in A.A (minutes) 45 15
6. The average annual freight distance covered (km) 80.000 120.000
7. Traffic accident death rate (per 10, 000 people) 70 27
In addition, increase the available national freight transport carrying capacity to a total of 1.4
trillion ton/km, build 22 drivers’ competence certification training centres (traffic complexes)
covering all regions, reduce processing time by 20% by improving administration of the
freight transport logistics system, and ensure that all rural kebeles have access to Medium
Transportation Service (IMT), Starting from 2010/11 all vehicles will be required to have
third party automotive accident insurance.
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Implementing Strategies
To achieve the above objectives and targets for the transport services sub-sector, world-class
regulatory and service delivery systems will be introduced. National logistics coordination
excellence and information centres will be built, while specialized human resource
development in road transport will also be given attention. A rural transportation expansion
package will be design and implemented. An incentive structure for stakeholders who
participate in the sub-sector will be created. Improvements will be made to traffic
management. An organisational system for control and integration of public transport
associations will be developed; it will include a system for commercial companies to
encourage them to import new automotives and to address the needs of those who need
special assistance. A modern traffic flow operations centre with the latest information
technology will be built. A road safety council will be constituted, operational at federal,
regional and local levels, to initiate and coordinate road safety projects and programs and
build a national road transportation data base.
5.5.7 Maritime Transport
Strategic Directions
A key focus area during the GTP period is to enhance the capacity of the sub-sector for
efficient service delivery by building a maritime transport system that will reduce the time
spent, cost of transit logistics and processing of imports and exports. To this end, a multi
modal maritime and sea transportation service delivery system will be put in place. Dry port
capacity will be enhanced and consolidated while taking into account the point of departure
for, and destination of, goods. In addition, to further facilitate the import-export trade and
speed up transiting of goods, the transit time of goods at sea ports will be reduced. The
number of control and weighing stations will be reduced and the management of vehicle
utilization in the corridors increased in order to increase the frequency of vehicle travel and
reduce transportation time. To provide an efficient and good quality service, the safety of
import-export transportation corridors will be assured. A logistics system that is supported by
modern technologies will be developed.
Objectives
In the GTP period the dry port infrastructure in the country will be expanded and enhanced.
Import-export business operations will be facilitated by realising the mutual economic
benefits that can be gained through partnership with neighbouring countries and improved
utilization of transit corridors, to reduce the time and cost of logistics in import-export trade.
The national shipping line’s carrying capacity will be enhanced. To support the freight
transport service within the country, the local water transportation service will be improved.
Major Targets
The GTP targets set for the maritime transport sub sector are presented in the following table.
Table 35. GTP Targets for the Maritime Transport Sub Sector
1. Increase general cargo imports carried by the multi modal
em (% 2 80
transport system (%)
2. Reduce transit time for import and export goods (days) 30 20
80.
3. Available seat kilo meter in local water transportation (min 09 14
ton) . ?
4. Reduce transit time for imparts and exports (days) 30 20
5. Export cargo transported by the newly improved system (%) 90
6. Achieve a sea port utilization for Djibouti, Berbera and Port Sudan, respectively (%) 60/30/10
7. Increase the capacity of Mojo and Semera dry ports (for general cargo, excluding
ee 100
unpacked and liquid cargo) (%)
8. No. of loading stations to be built all over the country during the plan period 35
9. Fuel transported by Ethiopian ships (bin tons) 3.6
Implementation Strategies
To achieve the above targets for the maritime transport sub sector during the plan period the
multi modal system will need to be fully implemented, while the capacity of dry ports
infrastructure facilities have to be enhanced. Partnership and collaboration with the
neighbouring countries is another important strategy for effective sea port utilization and
regional integration. Improving the containerization system is considered as one of the
strategies for improving the sea transport and maritime services. The control systems at
transport corridor custom checks will be improved. The freight transport and logistics
program will be implemented. A local water transport utilization strategy will be developed
and implemented, and related human resource capacity strengthened.
5.5.8 Air Transportation Services
Strategic Directions
The major focus for air transportation services is on further strengthening the competitiveness
of air transport and expanding passenger and cargo transport services by creating new
international destinations. Domestic air transportation service delivery will be expanded such
that it supports the development of tourism activities in the country.
Standardized cargo terminal and cooling systems at different airports will be built to facilitate
the import and export trade of horticulture, meat and perishable commodities. The capacity of
the air cargo system will be improved in order to enhance quality and affordability of the
service. In addition, the ongoing construction of airports, at different locations of the country
will be completed: and their operational and technical standards brought up to required levels
so that they deliver services at international standards. Lastly, an important focus will be to
improve overall the capacities of the air transport system (of airplanes’ carrying capacity,
pilots, other professionals, airports and operators) through capacity development aimed at
improving aviation safety and security.
Objectives
The objectives of air transportation services in the plan period are to develop the regulatory
framework and services in order to build the capacity of the sector to reach the standards and
levels of competitiveness of best aviation industries globally. That the aviation industry has
fully competent and sufficient human resource capacities will be ensured as well as that the
services delivered by Ethiopian Airports Agency, at the international and local airports it
manages, are up to standard. Local passenger flight services will be expanded, while demand
for international flight services will be met by upgrading and expanding the services. The
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import-export trade in the country will be supported by providing efficient and affordable
cargo services. Airport security and safety facilities in existing and newly built airports will be
fully maintained and navigation services provided that are standardized, secured and
sustained.
Major Targets
To achieve the above objectives for the air transportation sub-sector the targets for the plan
period are presented in the following table.
Table 36. GTP Targets for Air Transportation Services Sub Sector
International and domestic passenger (bln seats) 15.2 3732
International and domestic passenger (mln km travelled) 263 994
Passengers on international flights (mln no.) 27 6.6
Passengers on domestic flights (‘000 no.) 428 1464
5. International passenger flight destinations (no.) 58 77
6. International flights capacity of local airports (Regular and 45.000 67.000
temporary) (no.)
7. Domestic flights capacity of local airports, (of regular and 49,000 72,000
temporary) (no.)
8. Accommodation capacity for passengers of international
. a 3.88 30.5
flights all airports (mIn no.)
9. Accommodation capacity for passengers of local flights all
0.96 7.6
airports (mln no.)
10. Local flights coverage (%) 16 20
11. Cargo carried from all four international airports (tons) 119,000 311.000
12. The number of operators/investors in the sector (no.) 21 35
13. Globally accepted fatal accidents rate (ratio) 30/10,000 5/10,000
Implementing Strategies
A national aviation capacity building program will be designed and implemented. Regulatory
and service delivery systems will be benchmarked against internationally renowned aviation
industries. Communities’ and regional government's participation in airport construction will
be encouraged. A standard governing airport construction and standardized system of airport
classification will be designed. New destinations and flight programs will be opened, using
market expansion strategies. New airplanes will be purchased so as to improve service
qualities and efficiency, including local flights. Safety’ and facilities’ systems and civil
aviation monitoring system will be operated to acceptable international standards.
5.5.9 Urban and Construction Development
Though, the level of urbanization is low in the country the urban population is increasing.
This is also expected to continue in the GTP period. On the other hand, urban administrations
have started to provide urban infrastructure and services, revitalize their economies and
promote job creations in urban centers given their capacity. In the GTP period, due attention
will be given to enable urban centers to have adequate urban infrastructures, promote small
businesses and jobs, and conducive environment that is equitable with the demands of ever
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increasing urban population. These will turn help reduce poverty and unemployment in urban
centers and thereby enhance the role of urban centers for accelerated economic development.
The construction industry has registered significant growth in the past five years plan period.
It played an important role in improving the delivery of social and economic infrastructure,
generating jobs and contributing to economic growth. To sustain this in the GTP period, and
enable the local construction industry play its role in accelerated socio-economic development
of the country, focus will be on building the capacity and competitiveness of the industry by
implementing a comprehensive and integrated capacity building program. The legislation and
enforcement of a regulatory framework that ensure safety and competitiveness in the industry
is also considered crucial to GTP.
Strategic Direction
Key strategic areas for urban development are poverty and unemployment reductions,
sustained and integrated development through rural-urban and urban-urban linkages,
participatory engagement of the urban populations in development and governance, forming
strong partnerships with the private sector, and establishing effective decentralized
administration systems that ensure self-rule of cities and towns.
Regarding development of urban infrastructure, the key strategy is to enhance the capacity of
city administrations to plan, provide and manage the supply of urban infrastructure and
services. Investments in urban infrastructure have to consider the role and importance of the
cities in regional and national social and economic development. Infrastructure development
should create an environment conducive to accelerated economic development and equitable
distribution of services. To realise fully the potential contribution of towns and cities to
economic and social development, the development and expansion of infrastructure will have
to be undertaken through the joint and coordinated efforts of the government, private sector,
and the public. When infrastructure development activities are carried out, the potential to
create a wide range of job opportunities and promote micro and small enterprise development,
will always be taken into consideration.
Low cost housing would also be promoted for the low and middle income households
particularly in Addis Ababa. The housing development initiatives would result in the creation
of new MSEs operating in the construction sector, strengthen the existing MSEs and provide
huge employment opportunities. The housing program needs to be executed in a way it
promotes domestic savings, reduces slums and improves the urban environment.
The development of the construction industry will be promoted during the plan period such
that it is labour-intensive, market-oriented, led by the domestic private sector, competitive,
ethical, and free from corruption. Development of the construction industry will take into
account micro and small enterprise development, capacity building requirements, and ensure
the full participation of women. Steps will be taken to ensure that design and construction
activities accommodate the needs of the disabled citizens.
Objectives
In order that urban and construction development contribute fully to the accelerated
socioeconomic development of the country, specific objectives that will be pursued are
For urban development: The priority objectives are to ensure stronger urban local capacities
to develop and manage urban infrastructure and services, deliver efficient, effective and fair
infrastructure and services to urban citizens sustainably, and improve the urban environment
for living and work. In addition, poverty and unemployment reductions are set as objectives
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of the various urban infrastructure and business development initiatives. Strengthening the
capacity of cities to self-govern themselves and public participation are -expected to improve
the governance system. It is planned also to construct affordable, good quality and
standardized urban housing, particularly in Addis Ababa, reduce urban slums, address
housing (shelter) problems, promote domestic savings and create a wide range of job
opportunities.
For construction industry development: The objective here are to ensure construction
works are completed to the standard required, time limits set and costs planned, build the
capacity of the domestic construction industry to fully meet local demand, enable the industry
to make a significant contribution to the sustainable growth of other sectors and the national
economy, as well as improve its productivity. Additional objectives are to create jobs,
develop the sector’s overall capacity and increase the number of local companies (contractors,
consultants, construction machinery supplying and leasing companies, and construction
material suppliers) engaged in the industry, and ensure the effective use of public investment
in different construction works.
Major targets
With regard to construction and urban development the main targets during the plan period
are presented in the following tables.
Table 37. GTP Targets for Construction Development Sub Sector
1. Raise the capacity of existing contractors by improving capacity of higher grade local contractors and
consultants
Promote (based on prior assessment) lower grade contractors to middle and higher grades
Facilitate the certification of non skilled and semi skilled manpower
Promote the introduction of new contractors and consultants
Build the capacity of companies leasing plant and equipment
ow PS
Based on thorough research resolve the supply and demand gap relating to both local and industrial
construction materials.
Table 38. GTP Targets for Urban Development Sub Sector
1. In Addis Ababa, construct and transfer houses (no) 150, 000.
2. Reducing slum areas in Addis Ababa (%) 60 30
3. Construct houses in sugar development projects (no) 101,022
Urban infrastructure development targets include
4. Construction of cobble stone roads (Km) 3738
5. Construction of drainage networks (Km) 3527
6. Development of solid waste landfills sites (no) 358
7. Development of modern abattoirs (no) 214 299
In addition completion of all low cost houses under construction, as part of the ongoing
housing development program in all regions, at the start of the plan period and put in place an
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effective regulatory policy to regulate the activities of private real estate developers and
housing cooperatives will be implemented.
Implementation strategies
Urban Development: The operational strategies here concern the strengthening of
organizational and human resource capacities of urban local administrations. The
development and implementation of a sustainable urban infrastructure and housing finance
system is also another element of the implementation strategies. Here the primary focus will
be on improving domestic savings and revenues for infrastructure and housing developments.
The experiences so far with regard to public participation in planning, delivery and
management of infrastructure, housing and services as well as other governance issues will be
consolidated further during the GTP period. Finally the undergoing initiatives of
strengthening the urban planning, design and construction capacities will be consolidated
further to ensure better quality, cost efficiency and productivity in infrastructure and housing
delivery.
Construction Industry: The emphasis is on enhancing the capacity of the domestic private
sector so as to create a competitive local construction industry. To this end a comprehensive
capacity building program will be adopted and implemented. In the plan period, implementing
strategies will be adopted to increase the quantity and improve the quality of local contractors,
consultants and construction machinery leasing companies. The provision, production and
administration of construction materials will be strengthened and existing and new local low
cost construction materials developed and improved through research and technological
transfer; their use in designs and construction will also be provided. In sum, the second
strategy is promotion of import substitution in the production of construction materials and
services. Emphasis will be given to proper use of manuals, procedures and checklists and
adherence to regulations in all government and private construction activities. In other words
the strategy here is to fully enforce the building code already adopted by the country.
CHAPTER 6.
SOCIAL SECTOR DEVELOPMENT PLAN
Social development plays a key role in enhancing people’s living standards, poverty
eradication, economic growth and stable governance. Much emphasis has been given to the
development of the sector in the past and it has developed rapidly. For the GTP period, based
on the results achieved so far in the sector, the provision of education and health services will
be expanded with the focus on ensuring the quality of services provided.
6.1 EDUCATION AND TRAINING
The Education Sector Development Program for the GTP period (ESDP IV) has the goal of
producing democratic, efficient and effective, knowledgeable, inspired and creative citizens
who contribute to the realization Ethiopia’s vision of being a middle income economy. The
ESDP IV focuses on educating and training a workforce that meets industries’ needs at all
levels, particularly the growing manufacturing industry. The plan for the GTP period has also
taken into account the findings of the review of ESDP III. Based on that review, the ESDP IV
was developed with a strategic direction to ensure equitable access to quality education at
general, TVET and higher education levels, and also ensure that these three education levels
have strong linkages to, and interrelationships with, each other. The key objective over the
next five years is to ensure the achievement of the MDG targets.
6.1.1 Strategic Directions
The strategic directions that will be pursued during the GTP period under education and
training sector, technical and vocational education and training as well as higher education are
presented below.
General Education: The initiatives, already in place to expand basic educational services to
all, and achieve the MDG targets, will be strengthened. Cost effective and participatory early
childhood care and education will be expanded in both formal and non-formal delivery
mechanisms. The role of the government will be to facilitate policy based services, such as
supervision to ensure quality, support for provision of materials, development and provision
of curricula, standards and guidelines, provision of early childhood care and education
classrooms, and space within formal primary schools for community driven programs.
With regard to formal education, the existing strategic direction is to ensure equitable access
to quality primary education. The undergoing initiative of providing fair and accessible
quality formal education will be continued and consolidated. The current gender disparity will
be eliminated by the end of the plan period. The education strategy for children with special
needs will be fully implemented to meet the needs of this group.
An important priority will be to improve and ensure the quality and efficiency of education at
all levels. To realize this priority, the General Education Quality Improvement Package
(GEQIP) will be fully implemented. Its subsequent impact in improving student achievement
(in terms of knowledge, skill and attitude) will be verified through regular monitoring and
evaluation, and through the National Assessments of Student Achievement conducted every
three years. The findings of this assessment will be inputs to further enrich GEQIP and
achieve access to quality education for all. In addition, functional adult literacy (FAL) will be
expanded to all regions. Youths and adults within the 15-60 age range will participate in the
program as per the FAL criteria.
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Technical and Vocational Education and Training/TVET: A good quality and efficient
TVET system will be established through full implementation of the TVET strategy. To
achieve this, government investment will be increased and cooperative training will be fully
implemented in order to ensure provision of the human resources that will satisfy the demands
of the nation’s labour market.
The TVET system will continue to serve as a potential instrument for technology transfer,
through the development of occupational standards, accreditation of competencies,
occupational assessment and accreditation, and the establishment and strengthening of the
curriculum development system. TVET institutions will serve as the centres of technology
accumulation for MSEs. Rigorous and regular monitoring and evaluation will be carried out
amongst TVET institutions. Government and private monitoring will enable them to ensure
the minimum levels of competency. The basis for M&E will be whether the training taking
place is aligned with the demands of the economy and whether trainers are satisfying the
requirements cited in the trainers’ competency package. M&E will also look at the trainees
and assess whether they fit the profile and demands of their chosen occupation and are able to
access job opportunities. Generally, the M&E system will evaluate whether TVET institutions
are on the right track with regard to the strategy and, if not, take immediate corrective
measures for improvement.
Higher Education: The key priority for higher education during the plan period will be to
ensure quality and relevance. To this end, the management and administration system of
universities will be improved and strengthened, and efforts will be made to enable the Higher
Education Strategic Centre and the Higher Education Quality Assurance Agency to achieve
their purposes. The performance and implementation capacity of technology institutes will be
built upon. Implementation of a full fledged teacher development program will ensure an
adequate supply of university teachers. The revised curricula will be implemented in line with
critical issues, such as, instructional process, assessment and examinations and student
achievement.
The education provided by Higher Education Institutions (HEIs) will be made compatible
with the quantity, type and quality of the human resources demanded by the economy and the
labour market. Accordingly, the increase in enrolment in graduate and post graduate programs
will aim to be in line with the 70/30 program. A system will be introduced which will enable
universities to raise their own internal revenues. This will help them improve the quality and
relevance of education provided.
A technology transfer-centred research system for HEIs will be put in place. Capacity
building will be undertaken to improve performance, especially of science and technology
institutes and departments. Capacity building will aim to make certain HEIs support economic
development through technology transfer. In general, the research system in HEIs will be
guided by the role they play in the economic growth and development of the country.
Assurance of the quality and relevance of education provided in private HEIs will be another
key priority issue during ESDP IV. These institutions will be evaluated and quality assured,
based on the degree to which they are organized and deliver services as per the higher
education proclamation and strategy. The provision of higher education in the private sector
will be required to give priority to quality and relevance, through regular M&E and, where
necessary, corrective measures. Through continuous support and monitoring, HEIs will
become more effective and efficient and provide a student friendly environment especially for
young women and students with special needs.
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6.1.2 Objectives
The objectives of the education sector development program are to ensure an effective and
efficient education and training system that enhances quality, efficiency, relevance, equity and
access at all levels. This will be achieved through performance capacity building, and the
development of, and adherence to, competency criteria.
Objectives of General Education: The objectives for general education are to expand access
to good quality primary and pre-primary education and to maintain their quality and
efficiency, expand good quality secondary education that serves as a foundation and bridge
for production of a middle and higher level workforce that meets the demands of the national
economy and labour market, expand the intake capacity of HEIs, ensure equity in education
by narrowing gender, regional and urban-rural disparities, and expand access to functional
adult literacy (FAL) to enhance the country’s all round development endeavours.
Objectives of Technical and Vocational Education and Training/TVET: The objectives
for TVET are to provide an outcome orientated, good quality and equitable service, in rural
and urban areas, that meets the demands of the national labour market. TVET institutions and
services will become centres of technology transfer creating concrete capability to support
MSEs through technology accumulation, building organisational capacity and transfer of
technology. To this end, particular emphasis will be given to developing an integrated TVET
package that will involve all actors and stakeholders. The TVET integrated package will
strengthen the ability of industries to set occupational standards and provide accreditation of
competencies. A main objective for TVET is to support women and youth to gain working
skills and competencies that ensure they are economically self sufficient.
Objectives of Higher Education: The objective for higher education is to establish HEIs that
are focused on result orientated management, administration and performance, and that
recognize and scale up best practices. A further objective for HEIs is to provide an increased
quantity and quality of skilled and capable human resources that meets the needs of the
country in regard to its development in general, and the manufacturing industry in particular.
To this end, HEIs will ensure that enrolment prioritizes science and technology. In addition,
successful HEIs, that have provided good quality and relevant education that meets the
demands of the economy and enhances the competitiveness and competency of female
students, will be recognised.
6.1.3 Targets
Targets set for the plan period, as indicators of access, equity, quality and efficiency, and
which will help to monitor and achieve the general and specific objectives of the education
sector, are described below for general, TVET and higher education.
General Education, quality and efficiency: All schools and resource centres, at each level,
will have principals and supervisors who meet the standards set. By this means, a school
management system that ensures educational quality will be established. Students that
complete each cycle of education will acquire the civic and ethical behaviour desired.
Teachers at all levels will be required to be professionally licensed so that the quality required
is maintained and every subject specified is relevant. Thus, teachers accountability and
responsibility for implementation of quality oriented teaching, learning processes and
curricula, in every sphere of general education, will be assured.
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Table 39. GTP Targets for General Education
1. Increase students” score in examinations and assessments at all grade
. 50 90
levels of every subject (%)
2. Gross enrolment rate for pre-primary education (%) 4.2 20
3. Net enrolment rate for primary education (1-8) (%) 87.9 100
4. Gross enrolment rate for general secondary education (9-10) (%) 39.7 62
5. Gross enrolment rate of functional adult literacy (%) 36 95
6. Gender disparity (1-8) (%) 0.93:1 Il
Table 40. GTP Targets for Technical and Vocational Education and Training
1. Competent/certified candidates (%) j 23 60 |
2. Technologies that can help create wealth and increase income (no) 3000
3. TVET graduates that enter the labour market and be employed (%) 90
TVET system capability will be established to accommodate participants who have the need
and readiness to attend TVET and who can satisfy the minimum requirements for each level.
Higher education: Universities will strengthen management and administration systems that
can promote their missions of achieving quality and relevance of education. They will
conduct research, which focuses on solving problems in quality and relevance and
development, and they will enhance community services. Provisions for standard facilities of
libraries and laboratories will be assured in all HEI.
Table 41. GTP Targets for Higher Education
1. University teachers (no) 23,000
a. Teachers with second degrees (%) 75
b. Teachers with PhD degrees (%) 25
c. Student teacher ratio 1:20
2. Annual intake for postgraduate programs (second degree and PhD (no) 16,100
3. The average graduation rate of undergraduate program (%) 93
a. The graduation rate undergraduate programs for females (%) 90
b. The graduation rate undergraduate programs for males (%) 95
4. Gross admission for undergraduate program (70:30 program mix) (no) 185.788 467.001
5. Participation rate of females in undergraduate programs (%) 29 4
6. Participation rate of females in postgraduate programs (%) 10. 2.
6.1.4 Implementation Strategies
General Education: To ensure quality and efficiency of general education, capacity
development activities will be undertaken to enhance the performance of leaders and
implementers, to the standard indicated in GEQIP, at all levels. The implementation of best
practices referred to in the GEQIP, in every school, will be scaled up. Scaling up education
quality will be encouraged by building communities’ sense of ownership of educational
quality by initiating integrated community mobilization, at all levels, using every media.
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The qualifications of teachers, at every stage and for every type of education, will be
upgraded as described in the teacher development blue book through pre-service, in-service
and continuous professional development schemes, by provision of special training to English
teachers to raise their proficiency at each level, per the standard set, by application of an
assessment tool for and identification of skills gaps, by fully implementing the Maths and
Science strategy that aims to raise student awareness and motivation for improved learning in
maths and science and achieving better results in these subjects, and by creating strong
linkages and harmony between the curricula of different primary education, secondary
education and teacher training institutions curricula.
To improve the quality of education, digitized (plasma based) secondary education will be
developed in a way suitable for broadcast. To implement this initiative a checklist will be
developed to determine the expected attitudes, skills and inputs required. The digitized
broadcast strategy aims to implement the GEQIP efficiently, establish an effective M&E
system, evaluate the impact of the GEQIP upon changes in student achievement and
eventually upgrade excellence of the GEQIP and its implementation.
With regard to equity and access, the Early Childhood Care and Education policy package and
strategy will be fully implemented. Participatory school construction and networks will be
promoted. The distance between children’s homes and schools will be reduced. The existing
Alternative Basic Education Centres to regular schools will be transformed. More Alternative
Basic Education centres will be established when and wherever necessary. A strong
transformational nexus between Alternative Basic Education centres and formal primary
schools will be established.
In scarcely populated areas, as a means of integrating and maintaining children in school and
of meeting the needs of pastoralist and semi-pastoralist students, strategies adopted will
include open multi-grade classes, open mobile and para-boarding schools and school feeding
programs. To improve the access rates of children in emerging regions, affirmative action for
children with vulnerabilities will be promoted. To increase access to secondary education,
secondary schools will be expanded. The expansion of secondary schools will also involve
increased provision of secondary preparatory education, to meet the demand of the economy
for a skilled human workforce and be matched with the intake capacity of HEI. The private
sector, NGOs and the community will be encouraged to open secondary schools. Support will
be provided and monitoring of quality carried out to ensure the standards of these schools
meet requirements.
Implementation strategies for functional adult literacy will follow the FAL strategy and
include interventions to provide curriculum and guidelines, institutionalize training of FAL
facilitators at all colleges of teacher education in order to carry out facilitator training
efficiently. The strategy for Special Needs Education to ensure equity and access will be
implemented. A robust M&E system will be put in place at all levels and corrective actions
taken where required.
Technical and Vocational Education and Training: Implementation strategies here include
ensuring the TVET system is, as much as possible, compatible with international labour
market standards. Particular emphasis will be given to the ability of TVET to absorb and use
the existing expertise in the country. Which experts have valuable competencies will be
identified through competency assessment. Use will be made of accredited assessors who hold
senior positions in industries, so as to establish occupational standards comprehensively and
for assessing other experts. A result expected from these strategies is that only those assessors
who are accredited and competent carry out assessments.
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Other main strategies are to prioritize occupations and facilitate conditions for provision of
comprehensive in-company training. From among graduates, those with high competency will
be selected for the post of trainers at TVET centres. Further, implementation strategies are to
promote selected and experienced trainers to senior levels of training and management.
Accredited trainers and teachers will be given ownership over various training and technology
transfer activities. The capacity of the industrial work force will be improved to international
labour market standards. So as to achieve sustainability of the TVET system, the industry’s
institutional ownership of TVET systems will be ensured. It will be ensured that all TVET
centres have competent and accredited trainers for all occupations in demand.
Main TVET implementation strategies for strengthening MSEs are to provide capacity
development, by promoting them as centres for technology transfer, ensure a decentralized,
integrated and outcome based TVET system throughout the country, realize competencies at
every level, strengthen the TVET system through regular organizational monitoring, involve
stakeholders in occupational standards, develop the curricula, training and assessment tasks,
establish a system for training needs analysis, continuously upgrade occupational standards,
and conducting training of involved personnel.
Higher Education: For higher education, implementation strategies pursued will seek to
strengthen university leadership and providing leadership training for new candidates of
higher and middle level positions. The intake capacity of all universities especially in science
and technology and teacher development programs will be increased. The professional
competence of HEI teachers will be scaled up by providing them with training on, among
other subjects, pedagogy, student assessment and action research. The new universities
currently under construction will be made fully operational and they will be furnished with
the equipment necessary and encouraged to give priority to science and technology and
teacher development programs. A system to promote institutional & teacher competence and
expertise in conducting research and adapting technology will be established. The National
Qualifications Framework will be developed and implemented. All universities will be
encouraged and supported to establish well organized and policy guided internal quality
assurance systems. The capacity of HEIs to undertake graduate tracer studies and analyze
employer needs will be developed. Lastly, it is expected that HEIs will be able to revise and
improve their curricula, as well as developing schemes for the provision of affirmative actions
for those who need additional support, (females, youth with disabilities, emerging regions,
etc) such as, special admission criteria, tutorial support and scholarship opportunities.
6.2 HEALTH
In prior years, remarkable achievements have been realised in the expansion and construction
of health facilities and improvement of the quality of health service provision. The Health
Extension Program is an innovative health service delivery program that aims at universal
coverage of primary health care. The program is based on expanding physical health
infrastructure and developing Health Extension Workers who provide basic preventive and
curative health services in the rural community. The Health Sector Development Program IV
is designed to support the policies, strategies and targets of the government for the GTP
period. The highest priority areas for health sector development program will be maternal and
newborn care, child health, and halting and reversing the spread of major communicable
disease such as HIV/AIDS, TB and malaria.
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6.2.1 Strategic Directions
The core elements of the health strategy are decentralization of the health care system,
development of the preventive, promotional and curative components of health care,
assurance of accessibility of health care for all segments of the population and the promotion
of private sector and NGOs participation in the health sector. In addition, health policy gives
focus to health promotion and disease prevention, curative and rehabilitative services, public
health emergency preparedness and to enabling the population to contribute its own health.
The health sector development plan aims at ensuring community ownership and
empowerment through effective social mobilization, enhanced and sustained awareness
creation, supporting community organizations and creating an environment conducive to
community ownership and empowerment. The Health Extension Program will be the primary
vehicle for preventative health, health promotion, behavioural change communication and
basic curative care through effective implementation of sixteen packages.
The delivery of good quality health services is central to improving the health status of the
population. The Quality of Health Service applies a three-pronged approach to improving
quality of health services. A Health Care Financing Strategy aims at increasing resource flows
to the health sector, improving the efficiency of resource utilization, and ensuring
sustainability of financing to improve the overall coverage and quality of health service. Steps
to involve the community in the planning, implementation, monitoring and evaluation of
health interventions will be strengthened. The role of the private sector in the delivery of
health services will be increased in the plan period. Vertical integration of program
interventions at the point of health service delivery will be given high priority.
The primary focus during GTP will be on the provision of quality primary health care for all.
Thushealth centers will serve as a first curative referral center for HPs and will provide health
care that will not be available at the HPs through ambulatory and some cases of inpatient
admissions. Health post and health centers will be equipped and staffed as per the standard
and expanded in all Woredas. Notwithstanding the primary focus on primary health care, due
emphasis will also be given to the expansion of higher quality hospital services as per the
policies and strategic directions of the health sector. Referral system will be strengthened
through effective implementation of the new guideline. To provide better quality of health
services, the human resource strategy of the health sector will focus on retaining trained
health professionals on the one hand, while on the other hand giving greater attention to a
larger scale training of specialists, medical doctors and midwives to compensate for the brain
drain.
Of particular importance, given the fact that health outcomes depend on so many factors, is
the inter-sectoral collaboration in crosscutting areas such as water supply and sanitation,
education, gender, population, and food supply. Also, given the partnership and networking
between the Government and NGOs and civil society and private sector organizations
engaged in health related activities is becoming increasingly important in enhancing
implementation of the program. In addition, the health sector will forge strong partnership and
create a coordination mechanism to ensure that there will be conducive environment for the
Development Partners and NGOs/CSOs/Private sectors to enhance the scaling up of
interventions during the strategic period. The role of private sector in the delivery of health
service will be strengthened in the coming five years. Integration of the vertical programme
interventions at the point of health service delivery will be accorded utmost attention.
Private health care providers will be strengthened, motivated, monitored and regulated in
order to provide a good quality health service that satisfies citizens. Internationally
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standardized and competitive specialized hospitals will be promoted to provide quality health
services not only for Ethiopians but also for other citizens to generate foreign currency and
promote and enhance national self-reliance in health development by mobilizing and
efficiently utilizing internal and external resources. Private pharmaceutical factories will also
be given much emphasis by providing incentives to sustainably produce and deliver quality
pharmaceuticals.
In order to achieve the desired results of the health sector, a resource mobilization and
procurement (health care financing) strategy will be implemented. To ensure sustainable
national pharmaceutical and service supplies to health facilities at all levels, adequate budget
will be allocated. So as to enable uninterrupted and adequate pharmaceuticals and medical
equipments to health facilities, the necessary incentive package will be considered. In
addition, significant reduction in pharmaceutical wastages and improved rational drug use
will be another focus of the strategy.
Strategic direction related to HIV/AIDs: On the basis of the National HIV/AIDs Policy
emphasis will be on expansion of effective prevention and control activities, promotion of
basic curative care related services, strengthening the systematic collection and use of
HIV/AIDs related information, providing special care and protection to HIV/AIDs patients,
mobilising adequate and sustainable resource to finance the HIV/AIDs strategy , as well as
on reducing vulnerability and new incidence to HIV/AIDs.
In addition, focus will be given to a National Children Health Strategy aiming at the reduction
of under five mortality, expanding family planning, ensuring pre and post natal cares and
support, hygiene and sanitation and reduction of major communicable diseases.
6.2.2 Objectives
The general objective of the health sector is to improve the health of the population by
promoting health of citizens and providing preventive, curative and rehabilitative health
services. Specific objectives are to
Improve access to health service: This objective includes provision of affordable health
services to improve the health of mothers, neonates, children, adolescent and youth, reduce
the incidence and prevalence of HIV/AIDS, TB, malaria and other communicable and non -
communicable diseases and improve hygiene and environmental health.
Improve quality of health services: This objective includes provision of health services of a
standard quality by health facilities at all levels. The standards applied cover speed of
delivery, harmonization at the point of service delivery through the integration of vertical
programs, exploitation of opportunities arising, service effectiveness, patient safety and the
ethics and professionalism in service delivery.
Improve public health emergency preparedness and response: This objective includes
improvements in health risk identification, early warning, response and recovery from
existing and emerging disease epidemics, acute malnutrition, and natural disasters of national
and international concern.
Improve pharmaceutical supply and services: This objective aims to increase the
availability of pharmaceuticals at an affordable price and of a satisfactory condition.
Improve health infrastructure: This objective includes expanding, equipping, furnishing,
maintaining and managing health and health related facilities, expanding use of relevant
technologies including health information technology, technology transfer and vaccine
production.
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Improve evidence based decision making: This objective aims at evidence based decision
making through enhanced partnership, harmonization, alignment and integration of projects
and programs at the point of health service delivery.
Improve human capital and leadership: This objective involves leadership development,
human resource planning, development and management including recruitment, retention and
performance management, community capacity development and technical assistance
management of the health sector. Additional objectives for the health sector in the plan period
are to improve community ownership, maximize resource mobilization and utilize as well as
improve the regulatory system of the health service delivery.
Improve Community Initiatives/Participation and Ownerships: This objective
encompasses awareness creation and ensuring community participation in policy formulation,
planning, implementation, Monitoring and Evaluation and mobilization required to implement
health sector development programs.
Improve Resource Mobilization and Utilization: This objective includes a proactive
approach in the mobilization of required adequate and sustainable resources from available
sources and effectively utilize the resources to achieve MDG targets.
Improve regulatory system: This objective is about ensuring safety in the delivery of health
services, products and practices; prevention of professional malpractices; enhancing
environmental health activities; enforcing regulations and prevention of drug abuse;
6.2.3 Targets
The main targets for the health sector in the plan period are presented in the following table.
Table 42. GTP Targets for Health
‘1 Decrease maternal mortality rate per 100.000 mothers 590
2. Decrease under five mortality rate per 1000 children 101 68
3. Infant mortality rate (per 1000 live births) 77 31
4. Increase family planning service (CPR) (%) 32 66
5. Increase Penta 3 immunization coverage (%) 82 96
6. Reduce HIV/AIDS incidence (%) 0.28 0.14
7. Increase TB Case Detection Rate (%) 36 75
8. Reduce malaria incidence (%) 0.7 <0.7
6.2.4 Implementation Strategies
High priority health sector implementation strategies are to strengthen and scale up the Health
Extension Program. The construction, expansion and improvement of health centres and
hospitals, including expansion of specialized hospitals will be accelerated. Health posts and
health centres will be renovated and properly maintained. Government will ensure that the
inputs necessary to provide the population with good quality health services are available.
Health service capacity to train and recruit a large number of specialists, general practitioners,
health workers and midwifes will be improved. Health service quality regulation will be
conducted and licensing and inspection strengthened. The health care financing system will be
strengthened by expanding health insurance and improving human capital and leadership.
Emerging surgery services to mothers will be started in all district hospitals. Women's
participation, engagement and involvement in the health service delivery will be ensured. The
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role of private sector will be enhanced, the establishment of hospitals providing specialised
services improved and pharmaceutical supply and services improved by providing incentives
for local pharmaceutical producing institutions. The ongoing civil service program will be
strengthened. Public-private partnerships will be developed. Activities that ensure the
participation of all stakeholders will be scaled up.
CHAPTER 7.
CAPACITY BUILDING AND GOOD GOVERNANCE
Remarkable results were achieved over the past planning periods in terms of establishing a
stable developmental and democratic governmental system. These achievements in good
governance and the democratization process play a key role in ensuring rapid and sustainable
development, human and capital resources development and for achieving sustained economic
development and Ethiopia’s MDG targets by 2015. Thus based on the achievements and
challenges experienced so far, the GTP envisages to consolidate the capacity building,
democratization and governance programs of the country.
7.1 CAPACITY BUILDING
7.1.1 Strategic Directions
Strategic directions in the capacity building component include a concerted and integrated
effort to enhance the capacity of the civil service to implement government policies and
strategies effectively and efficiently. Another major strategy during the GTP period is the
scaling up of best practices in the design and implementation of civil service reforms in
Ethiopia. To implement this strategy, civil service reform program activities to date will be
reviewed, and best practices identified, packaged and scaled up. Three key strategic directions
are described below.
Establish government structures with strong implementing capacity: This strategic
direction will involve, during the plan period, the full implementation of the Civil Service
Reform Program at all levels of the government structure (federal and regional) in order to
strengthen the reform agenda. Civil servants will participate in awareness creation activities
that aim to develop wholly positive attitudes towards serving the public, ensure that they fully
understand government's policies and strategies, and are capable of implementing them.
Overall this strategy aims to ensure increased efficiency, effectiveness, accountability and
transparency of public sector service delivery. In particular, the Balanced Score Card, an
initiative of the civil service reform programs, will be implemented with communication
support to strengthen the working systems.
Ensure transparency and combating corruption from its source: This strategic direction
will involve initiatives to implement fully a system of asset disclosure and registration by
every citizen with a view to recognizing and protecting their rights. The tax administration
will be improved through strengthening the tax information system, enforcement and public
education. An urban land registration system that ensures transparency and accountability,
tenure security and efficient land and immovable property market will be set up. Awareness
will be created through education on ethics to encourage citizens to nurture a zero tolerance
for corruption and rent seeking behaviour. A system for transparent disclosure and registration
of assets owned by political leaders and public officials will be established. The systems
described will also deter activities involving, and detect any assets gained through, illegal and
improper activities, educate the public at large to be pro active in challenging corrupt
practices and officials and bringing to justice those who are engaged in improper acquisition
of assets, tax evasion or indeed, any illegal activity which aims at gaining any benefit.
Ensure public participation: This strategic direction will involve initiatives that ensure
citizens’ participation in local governance and development decision making. In addition, the
Woreda and local administrations will be strengthened to ensure better public participation
and thereby to facilitate the achievement of the Millennium Development Goals. Affirmative
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action will be taken to enhance the participation of women at Woreda and Kebele level,
engage and mobilize the public in local infrastructure development activities such as primary
school and health station construction, create an enabling environment for professional and
public associations to enable them to protect and promote their rights and benefits, introduce
and make operational institutional and organisational mechanisms, in all spheres of
government and for professional and public associations, to encourage and ensure full public
participation in the formulation and evaluation of government policies, strategies and
development plans, support professional and public associations and organizations in their
efforts to build inter-organizational initiatives that promoting principles contributing to
democratisation such as tolerance, respect for the rule law, etc.
Incorporate and Implement Cross Cutting Issues in the Civil Service: During the plan
period, particular focus will be given to empowering women through capacity building.
Affirmative action will be taken to increase the participation of women in education and
training; this will increase the number of women who hold decision making posts. Gender
issues will be mainstreamed in the implementation of capacity building programs and in
monitoring and evaluation systems. HIV/AIDS awareness creating programs will be designed
and implemented to increase the awareness of civil servants about the economic and social
issues involved and to increase the level of support for those affected by the disease, including
orphans. In accordance with their constitutional rights, an environment conducive to
increasing the contribution of people with disabilities to the civil service will be established.
Awareness creation workshops and training sessions will be arranged that increase the
understanding of civil servants about the negative impact of climate change and global
warming and about population policy implementation.
During the GTP period, the capacity of outstanding young professionals will be developed
and a system made operational to increase their participation in middle management decision
making positions. To this end the proportion of young graduate professionals in the civil
service will be increased. With individual efficiency as the bottom line, affirmative action will
be taken to ensure that civil servant appointments to decision making positions represent
proportionately each of Ethiopia’s nations and nationalities. In addition, particular focus will
be give to increase the opportunities for education and training of minorities.
7.1.2 Objectives
The GTP objective for capacity building is to ensure accountability and transparency in
governmental operations, working procedures and systems. In addition, emphasis will be
given to capacity building that supports the implementation of government's policies,
strategies and programs.
7.1.3 Main Targets
To achieve the objectives set for capacity building, the following targets will be implemented.
Improve the capacity of top leaders Leadership is crucial in strengthening democracy
and building good governance, and in implementing government policies, strategies and
programs. An objective of the GTP will be to build the capacity of top leadership
management in the plan period. Initiatives to achieve this objective will build the capacity of
leaders at both federal and regional levels, and at all levels of government structure so as to
bring about effective and efficient leadership.
Human Resource Development (HRD): During the plan period attention will be given to
human resource development. To this end, various measures will be taken to upgrade the
capability of the civil service to implement the GTP. These measures will include review of
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legislative frameworks and establishment of modern HRD systems. An objective HRD
measures is to enable civil servants to be more responsive to public demands and to
implement government policies, strategies and programs in an efficient, effective, transparent
and accountable manner.
Build the capacity of government institutions: HRD, organisational development and
improving operational systems and procedures are three pillars of capacity building. This
section deals with the latter two aspects. Some of the main areas of focus in building the
capacity of government institutions will be to transform government agencies so as to
improve service delivery, improve their efficiency and effectiveness in providing public
services, and enhance implementation capacities through improved working systems and
procedures as well as establishing appropriate organisational systems. Surveys have shown
that the majority of government agencies have already shown gains in efficiency as a result of
various interventions in the last strategic planning period. However, the same surveys and
evaluations reveal that effectiveness is at its infancy and much needs to be done to improve
the situation in the next planning period. The survey findings have established a baseline and
it is intended that the effectiveness of all government agencies will be at a much higher level
at the end of the planning period. Targets set for the plan period will be measured against
predetermined standards as a result of full scale implementation of BSC and of the monitoring
and evaluation mechanisms established.
Establish a more transparent, accountable, efficient & effective governmental financial
management system: The objective is to establish an effective, efficient, transparent,
accountable and modern governmental financial management system. This will be achieved
through introduction of legal instruments, properly managing expenditures, putting in place
control systems, and employing skilled and competent personnel. During the previous plan
period, various projects were designed and implemented to introduce modern governmental
financial management systems. The GTP will further build on the successful practices and
gains of the reform process to date.
Ensure a transparent and accountable system: The purposes of this objective are to
institutionalize systems ensuring transparency and accountability throughout the civil service
so that the attitudes and actions of civil servants are directed towards serving public interests.
There are indications, following the various interventions taken in the last five years that
transparency and accountability exist to a degree within the civil service. During the GTP
period procedures for access to information, complaint handling, pre-notification of service
requirements, and disclosure of public information will be introduced to embed transparency
and accountability within the civil service. A related issue concerns combating rent seeking
attitudes and practices. The target here is to substantially reduce rent seeking attitudes and
prevent and control resultant practices/behaviours/ in the public service and of other actors.
The focus will be on those related to tax administration, urban land administration,
procurement and other susceptible areas.
Enhance public participation: Public participation is central to ensuring citizens own
development and to the success of good governance initiatives and to sustain them. Citizens
participate in development processes by expressing their demands and aspirations and so
contribute to formulating policies and strategies, and to planning, monitoring and evaluation
activities. Efforts made to expand democracy and good governance through the participation
of community based organizations (CBOs) will include organisation of public meetings,
involvement of cooperatives, professional associations, and other CBOs, and by ensuring the
regular and proper participation of citizens and CBOs by improving the transparency and
accountability of operational procedures of governmental organizations. A number of
participatory mechanisms that contribute to good governance have been implemented
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previously, however, the participation of CBOs needs further improvement and so, in the GTP
period, remedial actions will be taken to strengthen the degree and consistency of public
participation.
Build the capacity of woreda and kebele councils: Building the capacities of woreda and
kebele councils by training staff and improving working systems is of paramount importance
in strengthening good governance and democracy at local levels. The focus during the plan
period will be to strengthen the implementation capacity of both urban and rural woreda and
kebele councils by establishing improved operational systems, enhancing the capabilities of
councillors, deepening democratic participation, establishing transparent and accountable
systems, and strengthening internal controls.
Enhance civil servants’ awareness of the supremacy of law: This capacity building
objective aims to ensure that civil servants have good knowledge and understanding about the
importance of the supremacy of law and that the law is applied. A change of attitude among
civil servants is intended. Government agencies make a critical contribution to the fair and
proper implementation of laws enacted by the government. For this reason civil servants
should have knowledge of the content and purpose of laws and regulations that are relevant to
them; they should be able to apply them fairly and fully. Civil servants will in future be
supplied with all newly passed laws and regulations, along with supporting documents. A
lesson learnt during the previous development plan is that even though pertinent new laws and
regulations come into existence, civil servants have a habit of carrying on their duties and
responsibilities as they did before; it is business as usual. It is intended to change this situation
and ensure all civil servants are knowledgeable about and apply properly all laws and
regulations. This will be achieved as by identifying those laws to be prioritized and creating
awareness among the civil servant with training and workshops. Priority areas are, among
other, the Civil Service Proclamation and those proclamations relating to education, health,
the constitution, government finance, the budget proclamation, counterterrorism, broadcast,
freedom to information, charities and society's.
7.1.4 Implementing Strategies
The implementation strategies here refer to enhancement of skills and knowledge of the
implementing agencies and agents, from lower to management level, wider application of best
practices, as well asensuring effective communication that mobilises public participation for
transformational reform. Experience sharing between different administrative levels will be
strengthened and the participation of stakeholders in the reform process enhanced. A well
directed and organized monitoring and evaluation system will evaluate the impact of the
reforms introduced.
All inclusive capacity building: Particular attention will be given to increasing the
implementation capacity of all developmental stakeholders; in the governmental, private
sector and the public arenas. The comprehensive capacity building implementation package
includes integrated human resource development, organisational development and operational
systems working closely together.
Build the capacities of capacity building institutions: These institutions help sustain and
advance reforms in the public service through human resource development, consultancy and
research. Thus enhancing the capacity of these institutions so as to effectively support the
civil service reform will be taken as one strategy in GTP.
Integrate Capacity Building Activities: Capacity building activities are being undertaken by
different institution. Hence the strategy should be carried out in an integrated manner to save
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time and cost while implementing capacity building programs. Hence, a coordinating
institute will be established to oversee the overall activities.
Harmonize capacity building activities with the reengineering reform program: Reform
is a continuous process in the capacity building program. There will be unpredictable
obstacles or, alternatively, good opportunities that arise during implementation of the capacity
building program, which were not anticipated during the plan preparation. For this reason, it
is an implementation strategy to watch for and take advantage of opportunities that arise and
address and resolve obstacles during implementation.
Enhance reengineering reform communications: Unless the reform program is supported
by a communication strategy, it will be difficult to create the support for capacity building
reform among the citizens, and in particular among the civil servants, that ensures their
enthusiastic support and full contribution in implementing government’s agenda. To address
this issue, a strategy has been designed to ensure the full comprehension at top management
level as to the importance of communication for effective reform. During PASDEP, a high
level of support and enthusiasm for reform was generated in society generally, and in
implementation agencies in particular. During the GTP period, effort will continue to be made
to increase support further through the communicating strategy; the reform program will be
core to the daily activities and tasks of government organizations.
Support the reform with ICT: To date a variety of activities have taken place to transform
government organisations. These include Business Process Reengineering and Balanced
Scorecard. The Business Process Reengineering exercise is now fully operational in most of
the federal and regional government institutions, while Balanced Scorecard is in the process
of being implemented. It is important these reform measures are supported with ICT in order
to ensure the civil service is effective, efficient, transparent and accountable, as well as to
increase the contribution of civil servants to the transformation process. In this context, it is
planned to automate Business Process Reengineering and Balanced Scorecard by introducing
new software, testing and then fully implementing the system in all government agencies
during the plan period.
7.2, INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT
7.2.1 Strategic Directions
The strategic directions to be pursued for enhancing information and communication
technology development in the country are development of information communication
technology infrastructure, ICT human resources and the legal and security system related to
ICT. In addition, development of e-governance through use of IT, enhancing role of private
sector in ICT, and promotion of IT research and development will remain strategic direction
of the sector during GTP period.
7.2.2 Objectives
The overall objective for ICT is to support the GTP in ensuring sustainable development and
poverty eradication, human resource development, capacity building and good governance
through well-developed and all-inclusive capacity augmenting communication technology
interventions. During the GPT period, an objective for ICT development is to gradually
expand ICT over the entire nation and at all levels of the society by expanding ICT use and
access on a large scale, and introducing community ICT facilities.
A second objective is to ensure the security of ICT services and protect the system from cyber
crime by creating an appropriate institutional framework (policy, law and regulation) as well
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as organizational and human resource capability. Expansion and development of ICT will also
be encouraged by developing and putting in place uniform procedures, standardization of the
technology applications and improving the efficiency and effectiveness of the human and
financial resources available for ICT.
7.2.3 Major targets
During the GTP period, the major targets for the ICT sub-sector are to develop human
resources for ICT to support overall development of the sector. Development research will be
conducted to enhance the contribution of ICT to economic growth and social development. A
suitable policy, legal and regulatory environment will be created that contributes to poverty
eradication and expedites the success of development objectives. A uniform set of procedures,
standards and quality control mechanisms will be developed and put in place for the ICT sub
sector. The use of human and financial resources will become efficient and effective. Finally,
a key target is to prevent and fully control illegal activities and there by ensure the security of
the ICT system.
7.2.4 Implementation Strategies
The first strategy is to promote the development of ICT infrastructure and services in
connection with higher education institutions so as to ensure sustainability, quality and
relevance. The private sector will be encouraged to enhance its role in the sector, while an
ICT Park will be developed in Addis Ababa. Other implementation strategies that have been
designed to achieve ICT objectives by the end of the GTP period include: develop and
standardize the ICT infrastructure and services: improve the national and regional states
information exchange systems by installing broadband internet networks; provide ICT
services to beneficiaries at competitive prices; support IT professional needs in selected
economic sectors within the country, facilitate the provision of computer education and
training to society at a large scale; create an enabling environment that supports increased
innovation, creativity and professionalism of ICT professionals; enact legal instruments
relating to ICT resources and services development and ensure that these are incorporated into
other development policies, strategies and programs; revise the legal and regulatory
frameworks, in collaboration with national and international stakeholders, to improve and
expand ICT development; put in place management and quality control directives and
standards that regulate the supply of ICT services and products; introduce the disposition of
alphabets of national languages and make use of the Unicode Technology: provide support
and foster ICT research and studies; develop the information Kiosk; and encourage
development of a culture of internet use for various economic and social activities and create
enabling conditions to increase computer ownership.
7.3 JUSTICE SECTOR
7.3.1 Strategic Directions
The overall strategic direction for the justice sector is to contribute to establishing a stable
democratic and developmental state. Contributions made by the justice sector in this direction,
will be to establish a system for citizens to access judicial information and ensure that the
justice system is more effective. Steps will be taken to ensure that implementation and
interpretation of laws are in conformity with the constitution; where they are not, they will be
amended. The independence, transparency and accountability of courts, and of the judicial
system as a whole, will be assured. Law enforcement agencies will be strengthened by
strengthening human resource skills and providing adequate equipment. The publics’
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understanding and awareness of constitutional issues will be enhanced. Customs and
traditions of peaceful resolution of disputes will be given special emphasis and will be applied
widely during the GTP.
7.3.2. Objectives
The objectives of the justice sector are to strengthen the constitutional system and ensure the
rule of law, make the justice system more effective, efficient and accessible as well as more
independent, transparent and accountable. In addition the GTP aims to consolidate the process
of creating a democratic, stable and strong federal system that ensures the peace and security
of citizens.
7.3.3 Targets
Human resource capacity development: The new curriculum for Bachelor of Laws (LLB)
degrees will be fully implemented. Teaching materials will be prepared for the new
curriculum and will subsequently be evaluated and upgraded regularly. An appropriate
number of professionals will be trained for their second and third degrees and a system will be
established to this effect. Training will be based on needs assessment and pre-service training
will be given to newly appointed prosecutors and judges. Short term training will be provided
at least once a year for judges and prosecutors serving at all levels ranging from Woreda up to
Federal Supreme Courts, so as to enhance their capacities and to address their shortcomings
related to attitude, knowledge, ethics and skill. The capacity of other professionals in the
justice system will be enhanced. To this end, the federal and regional level training institutes
will be well equipped, while research works that help build the capacity of professionals
working in the justice sector will be encouraged. Ethical standards will be set and enforced for
practicing lawyers and attorneys.
Improve the transparency and accountability of the justice system: A system to increase
transparency and accountability will be fully established. A mechanism will be established to
evaluate the effectiveness of the professionals. Ethical principles will be made known and be
implemented fully by the professionals involved. Complaint handling offices will be
strengthened. An effective and cost saving resource management system will be established
and implemented. Strong monitoring, evaluation and support systems will be established.
Independence, transparency and accountability of the judiciary: A system will be
established to ensure accountability, while guaranteeing the judiciary’s independence. The
appointment of judges will be based on competence and will ensure fair regional and gender
representation. The performance evaluation system for judges will be expanded, continuity of
the evaluation system will be ensured, and the screening process will be improved. A system
will be established for the speedy resolution of disciplinary matters that are brought before the
judicial administration council. Improvements will be made based on consultations with and
contributions from service users and stakeholders. The hearing process in the justice system
will take place in full in open courts. Cessation decisions and laws will be made available in
time for judges.
Enhance service accessibility: Standardized accommodation in which justice agencies and
courts can work in an integrated manner and which are more accessible will be provided.
Initiatives to provide the services of the courts throughout the year will be expanded to all
courts and courts will provide services 24 hours-a-day. Efforts that have been started to make
the courts more accessible to women and children will be fully implemented and expanded to
all courts in the country. The initiatives that have been started to make the court environment
friendlier for users will be expanded and implemented in all courts in the country. Indigent
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litigants will be provided with adequate legal counsel, aid and translation services. The
number of judges will be increased to ensure that the number of judges corresponds to the size
of the populations they serve.
Rehabilitation of prisoners: National prison inmate handling and protection standards will
be prepared and implemented to ensure appropriate rehabilitation of prisoners. All prison
inmates will be encouraged to become productive and law abiding citizens by attending civic,
ethics, academic and professional training sessions. Inmates will be helped to increase their
income by taking part in developmental works. Their human rights will be ensured. Provision
of/for inmates’ accommodation, health, nutrition, communications and recreational services
will be improved. A system will be established and implemented to follow up the integration
of inmates in society released after serving their terms. Efforts will be made to improve the
public image of prisons.
Strengthen the federal system: The values of peace and tolerance will be promoted and the
capacity to resolve disputes peacefully will be strengthened. Mechanisms will be established
and implemented to detect and prevent conflicts before they occur and resolve conflicts that
have arisen before they result in harm. In this respect it is noted that, the capacity to resolve
disputes permanently is dependent on research related to conflicts. Measures will be taken to
enhance the values of tolerance and respect between religious institutions and their followers.
Solutions to religious conflicts will be sought and implemented through research which will
be conducted to identify sensitive religious issues. The awareness of the leadership at all
levels, and that of the population, of issues relating to interstate relations and federalism will
be significantly enhanced. A system will be established to ensure permanent
intergovernmental agency, as well as federal and regional state, relations.
Increase public participation: Participation of the justice system staff in the preparation and
evaluation of plans as well as on other necessary issues will be strengthened (internal
participation). Measures will be taken to improve and enhance the participation of
stakeholders in issues related to justice (external public participation).
Improve sector communication: Public relation activities will be carried out to raise
sufficiently the awareness of governmental agencies and of the public about the performance
of the justice organs. The preparation and publication of professional magazines within the
justice organs will continue.
Enhance the use of ICT in the reform process: A national integrated justice information
system will be established and put into use. Actions will be taken to support the court system
with information communication technology which will be extended to all courts in the
country. A public prosecutor information system will be established and put into use. All
work processes and offices will be modernized by developing appropriate software and a
database for file and record keeping. Information about inmates will be supported by ICT and
there will be maximum utilization of ICT in all the training centres.
Ensure the mainstreaming of cross cutting issues in justice sector: The justice sector will
devise and implement a mechanism whereby the rights of women and children as well as of
persons living with HIV/AIDS, as recognized by the constitution and international
agreements, are fully respected. Their equal participation in society, and the opportunities and
benefits accruing from that participation, will be ensured.
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7.3.4 Implementation Strategies
To achieve the objectives and targets established for the justice sector, during the GTP period,
a number of implementation strategies will be adopted. These are summarised in the
following paragraphs.
The reforms required will be supported by specific initiatives to build implementation
capacities of the agencies involved. The law required will be drafted, codified and
consolidated, prior to adoption, based on proper research. At all times the sector will render
effective, efficient, accessible and predictable justice to all and ensure the efficient and
effective execution of court decisions. Strategies will be implemented that prevent crimes that
endanger the constitutional system and public interest and, where such crimes are committed,
the perpetrators will be brought to justice. Prisoners will be helped to become law abiding,
skilled and to respect the rights of others. An environment conducive to ensuring lasting peace
and respect between religions and religious institutions will be created. Good governance and
development will be supported by conducting legal research, raising the knowledge and
awareness of the public on human rights protection and strengthening the rule of law.
Strategies will be pursued that ensure that the rights of women, children and persons that live
with HIV/ AIDS, as they are recognized by the constitution and international agreements, are
respected, that they participate equally in and benefit from development. The publics’ respect
for law and order and support of law enforcement activities will be gradually raised by raising
overall awareness of legal issues. Laws will be disseminated more widely and more
efficiently in order to increase public knowledge and awareness of the law. The role of civic
societies and stakeholders in good governance and development activities will be enhanced. A
system will be established to ensure that attorneys have the required professional capability
and ethics and to strengthen their role in the administration of justice. The registration of legal
practitioners will be fully implemented.
The values of gender equality will be promoted so that women participant more equally in
good governance and development, and the capacities of women in the justice sector are
enhanced. Professionals in the justice sector will be made more aware of the nature of
HIV/AIDS and its transmission, so as to protect themselves from HIV/AIDS, ensure that
sufferers get the appropriate help in a manner that respects their human rights, and support
implementation of health policy that is focused on prevention.
7.4 DEMOCRACY AND GOOD GOVERNANCE
7.4.1 Strengthening Democratic System
7.4.1.1 Strategic Directions
During the GTP period, the strategic directions to ensure democratic governance in the
country are to adopt and effectively enforce laws that support democracy and good
governance, conduct free, fair and democratic elections and ensure the human rights of all
citizens. In addition, the rights of women will be protected. One economic and political
community will be the aim and to this end the development of a culture that respects the
constitution, human rights and democratic values will be fostered. Government will give a
guarantee that people are well represented. Accountability in general will be strengthened and
the financial audit system in particular; the accounting and audit system will be standardised.
An enabling environment will be created for citizens to hold consultative dialogue with
government about human rights. Research related to human rights will be undertaken. The
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freedom of the press and the rights of citizens and freedom of information will be ensured.
Good governance and democratic institutions will be strengthened and deepened.
7.41.2 Objectives
The objectives are to strengthen democratisation and good governance and consolidate the
existence of a federal democratic political and economic community.
7.41.3 Main Targets
Strengthen Councils and institutions accountable to them: A number of activities have
been carried out during the previous plan period to strengthen these institutions, enhance their
role in the process of building a democratic culture, and build the capacity of staff involved
through short-term training and experience sharing. During the GTP period these activities
will be continued and, more specifically, the capacity of these institutions will be strengthened
through training, system and organizational development. In particular, to strengthen the
parliamentary system of the government, it is planned to build the capacity of the members of
the House of Peoples Representative and House of Federation through training and with
experience sharing workshops and by improving the working procedures of the two councils
with application of information technology and network infrastructure for ease of information
management and use to improve decision making.
Awareness creation about human rights, democracy and the constitution: During the plan
period the federal House of Peoples’ Representative and House of Federation will conduct
broad based awareness creation workshops and training seminars for students at pilot schools,
based on the civic education, using methodologies to encourage democratic culture such as
the children’s parliament instrument, and for pastoralists, mainly in conflict prone areas, and
including women and youth society groups, so as to create awareness about democratic
culture.
Ensure a federal democratic political and economic community: The following activities
will be undertaken in order to ensure the realization of this objective. A number of initiatives
will be undertaken during the GTP period that strengthen the relationship between nations,
nationalities and peoples such that the federal democratic arrangement in effect leads to better
integrated political and economic community in the country. The House of Federation will
encourage extensive research on democratic federal governance and make use of the findings
to strengthen national consensus around the objective of ensuring one economic and political
community. The documentation section of the House of Federation will be equipped with
research materials to facilitate proper decision-making by the House. The grant sharing
formula will be revised and improved to create balanced and equitable regional development.
An early warning system will be put in place to prevent conflicts, and indigenous conflict
resolution mechanisms used to mobilize local communities.
Provide laws and directives to create an enabling system to ensure democratic
representation and accountability to public resource: The House of Peoples’
Representative and regional counterparts will issue acts and directives, that have been
developed based on research, to realize the objectives of the GTP. Ethiopian Human Rights
Commission, Ethiopian Institution of the Ombudsman and the Office of the Federal Auditor
will work closely with House of Peoples’ Representative for effective implementation and
monitoring of this objective.
Ensure council’s accessibility and accountability to the public: Councils of representatives
established at all levels are expected to oversight the performance of the government. This
oversight exercise is expected to ensure active and organised public participation too. The
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participatory oversight of the councils is expected to play a crucial role in ensuring that
government policies and programs are implemented as per the plan and that measures are
timely taken to rectify any shortfalls. The federal and regional councils will secure media
airtime, develop user friendly websites, publish and increase the circulation of press releases
and booklets, in order to address the public and collect public perceptions of democratic
institutions and the democratic process. These initiatives will also enhance the participation of
federal and regional councils in the decision making process. Advocacy Centres will be
established to reach out to the public at lower administrative levels and make accessible
minutes, reports of the councils, annual plans and other related information.
Enhance public participation: Regional, Woreda and Kebele councils will initiate activities
to increase public participation in the development planning and democratization process. The
participation of women in councils will be enhanced to achieve better political participation
and involvement in decision making. The capacity of the council members will be improved,
through training and experience sharing study tours. The participation of CBOs and the public
at large in development planning, implementation and monitoring will be strengthened.
Directives and laws that will support the functioning of CBOs and professional associations
will be put in place.
7.4.1.4 Implementation Strategies
Strategies that will be adopted to implement the GTP, so as to achieve the objectives and
targets for democracy and good governance described above, are to build the capacity of
institutions, ensure the legislative assembly (law making process) is effective, and the
codification and consolidation of laws is based on research and studies. The delivery of
effective and efficient justice services will be enhanced and the accountability of the judiciary
ensured. The capacity of prisoners will be developed and their human rights ensured. Peace
and tolerance between different religious groups will be established. Democratic governance
will be supported and strengthened by conducting legal and justice system research, ensuring
the supremacy of law and conducting awareness creation among the citizen about human
rights. The accessibility and dissemination of printed and electronic copy of constitutions,
laws and acts will be strengthened and increased. Participation of CBOs and stakeholders in
the development process will be strengthened. The legal protection and rights of children,
women, people living with HIV/AIDS and disabilities will be ensured. A mechanism will be
created to enhance the professional ethics of lawyers through capacity building. Gender
equality will be ensured and awareness created among staff of democratic institutions about
HIV/AIDS prevalence and incidence.
7.4.2 Good Governance
7.4.2.1 Strategic Directions
Good governance plays a key role in realizing the government’s objective of eradicating
poverty by enhancing public trust and ensuring efficient allocation of public resources for
development. The strategic directions focus on improving the land and tax administration
systems. The strategic directions include enhancing the awareness of citizens about the
consequences of corruption through ethics and anti-corruption campaign and education such
that the public nurtures zero tolerance against corruption. Measures that improve transparency
and accountability would be undertaken with particular emphasis on government
organizations and public enterprises that are susceptible to corrupt practices by improving
their operational systems, increasing the role the citizens in the fight against corruption,
introducing registration system of the wealth of government authorities and civil servants,
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introducing information technology systems, enhancing transparency, developing cadastral
land registration system, improving the tax information system, taking legal measures against
those guilty of corruption and using these measures as an input to increase the awareness of
the public.
In this context, a number of activities will be carried out in the plan period, in collaboration
with the relevant stakeholders, including civic education and measures to develop a zero
tolerance of corruption among the society. Additional activities initiated will be to strengthen
the system to track corruption in society and protect public resources. A citizens’
identification information system will be put in place, as will systems to register ownership of
land and establish urban spatial plans. Further, the public will be made aware of the need to
pay tax as directed by law and regulation at the time required and of the importance of taxes
in financing the GTP and its objectives.
7.4.2.2 Objectives
The objectives of good governance are to enhance transparency and accountability so that
there is zero tolerance for corruption. Good governance initiatives will be supported by
information technology and expansion of civic education. The public service delivery systems
will be modernized made efficient, fair and transparent in their delivery.
7.4.2.3 Major Targets
A GTP good governance target is to develop a system, using modern information technology,
to register the wealth of government authorities and civil servants and track and take legal
measures where wealth from unidentifiable sources is detected. In addition, the awareness of
the public will be enhanced with the aim that there is zero public tolerance of corruption and
rent seeking. Ethics education will help to increase public collaboration with government in
the fight against corruption. An anti-corruption strategy will be developed and implemented in
all governmental organs. An enabling mechanism will be put in place to fight corruption. The
knowledge and understanding of tax payers will be increased through development and
implementation of ICT. A customers’ service delivery charter will be established. A modern
urban land management system will be developed and the urban spatial planning system
improved to ensure that land is used economically and in a transparent and accountable
manner. Basic information about citizens will be developed and implemented. Government's
financial management systems will be strengthened. The audit system and regulation
applicable to the private sector will be strengthened.
7.4.2.4 Implementation Strategies
Good governance implementation strategies are to give priority to the fight against corruption
and enforce the law on corrupt practices vigorously in collaboration with those agencies
involved with tax administrations and land management, implement transparent operational
procedures for the tax and land management systems, build the capacity of government’s
implementing agencies through the human resource development and information technology,
work in collaboration with stakeholders to avoid conditions that encourage corruption, and
strengthen the federal and regional anti-corruption commission and organize forums to
enhance the fight against corruption. The institutional capacity development of key agencies
like the Customs and Revenue Authority, Ethics and Anti-corruption Commission, Ministry
of Urban Development and Construction, Office of the Auditor General and Registrations
Offices will be an important element of the implementation strategy.
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7.5 MEDIA BROADCAST AND COMMUNICATION
7.5.1 Media Broadcast
7.5.1.1 Strategic Directions
The strategic directions to be pursued in broadcasting of information for the citizens are to
increase media broadcasts in type, number, quality and language, to increase geographic
coverage, and put in place a regulatory framework for media broadcast.
7.5.1.2 Objective
The GTP objectives for media broadcast are to satisfy the public demand for mass media
information through effective capacity development and implementation of the regulatory
frameworks.
7.5.1.3 Major Targets
Expand information provided by mass media: The target is to expand media coverage and
services provided so as to increase benefits to the public. Media broadcast applicants will be
licensed so that a satisfactory service is provided throughout society. The existing laws and
procedures will be strengthened to enhance media expansion. Communication that increases
customers’ participation will be encouraged. The capacity of media professionals will be
strengthened and the use of ICT will be expanded.
Media inspection and support: Operating systems will be improved and legal directives
drafted and adopted that ensure that laws applied to the press are enforced and the public is
satisfied by the quantity and quality of information and media broadcasting services provided.
The capacity of the media will be developed to enabling them to follow media laws and
procedures. A transparent operating system will be developed, with manuals and standards,
for media inspection and support. Participation of customers and the public at large, and
shared ownership (community broadcasting) arrangements will be encouraged.
7.5.1.4 Implementing Strategies
Mass media expansion: Media coverage in the country is, generally, at lower level. Many
communities do not receive satisfactory media service. For this reason, the government
mainly focuses on improving accessibility and diversity of media services. The
implementation strategy is to expand and increase media in number, kind and transmission
coverage and to ensure the widest possible public benefit from media broadcasts
Media inspection and support: The country’s media services have their limitations in terms
of delivering quality services and satisfying public interest. Thus the second strategy is to
improve support to broadcasters and ensure they operate within the regulatory framework
provided.
7.5.2 Government Communication
7.5.2.1 Strategic Directions
The strategic directions concern conducting an effective communication work based on GTP,
and building capable communication institution in the country. In addition, current
information will be effectively communicated to the public such that the public in turn
becomes even more motivated for greater participation and engagement in the development
and governance process envisaged in GTP. Communication of information that supports
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national consensus and builds a positive image of the country will emphasise the positive
aims and achievements of the GTP by showing to the outside world that Ethiopia is making
significant improvements in socio-economic development and good governance. The strategic
direction focuses therefore on building national consensus and thereby also on strengthening
public participation in the development and governance processes, and on improving the
image of the country.
7.5.2.2 Objectives
The objectives of government communication are to mobilize the public to participate
actively in the implementation of the GTP, create a political environment conducive to greater
and better international awareness about Ethiopia’s achievements and support the country’s
developmental and democratization processes. Further objectives are to significantly enhance
the country’s communication and media services, support the objectives of national consensus
and build a positive image of Ethiopia.
7.5.2.3 Targets
A more conducive environment will be created for the participation of the public in the
implementation of GTP and thereby also in the realization of the vision of Ethiopia. The
communication targets will also aim to create consensus among the public with regard to the
significance of ensuring the renaissance of Ethiopia, basic constitutional and policy matters as
well as on the significance of the GTP. It is aimed also at effectively and accurately projecting
the political, social and economic achievements of Ethiopia. Finally the capacity of media and
artistic institutions will be built so as to effectively implement the communication plan.
7.5.2.4 Implementation Strategies
Initiatives that will be taken to realize government’s communication objectives during the
plan period are to significantly improve the coverage of the media across the country by
expanding television, radio and internet services and supporting infrastructures.
Communication infrastructure will be improved by establishing fibre optic based networks
and facilities on a large scale, upgrading the capacity of the personnel engaged in the print
media, undertaking capacity enhancing activities for top management and lower level media
personnel at the federal and regional levels; and ensuring the private sector is the main
beneficiary of the interventions.
The capacity of the communication sector will be upgraded by improving organisational
arrangements as well as the skills and capacity of the personnel involved, so as to ensure
positive and effective communication. The awareness of the public at large will be enhanced
to facilitate the national consensus building process. Innovative approaches will be employed
to achieve this purpose and to speed up the tempo of development. An international
symposium will be organised, after the GTP has been in implementation for two years, to put
forward a positive image of the country and of the achievements of the GTP to that point.
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CHAPTER 8.
CROSS CUTTING SECTORS
8.1 GENDER AND CHILDREN’S AFFAIRS
8.1.1 Strategic Direction
Women make up half of the country’s population and the government has taken a range of
measures to increase their participation in political, social and economic affairs. There were
significant achievements towards gender equality and the empowerment of women in several
areas during the PASDEP period. Ethiopia has ratified a number of international and regional
conventions and protocols on women and child rights. A policy has been adopted and
implemented to institutionalize women’s affairs in all federal and regional agencies. The new
family law has been endorsed and the penal code amended for the benefit of women. Much
has been achieved in the education and health sectors to enhance the participation and
empowerment of women, as well as ensure that women benefit equitably. Women’s
participation in decision making processes has been increasing in all spheres of government.
In the economic sector, their participation in agricultural packages, credit and cooperatives
services has increased. In urban areas the participation of women in small enterprises,
commercial and construction unions, and micro finance institutions has also expanded. These
are all significant results and efforts will be made in the GTP period to sustain and improve
on these achievements.
It is widely acknowledged that children are more vulnerable to man-made and natural risks.
The government took measures during the PASDEP period to strengthen and protect
children’s welfare and rights. A national children’s plan of action and an alternative child care
and support guideline were prepared. At federal and regional levels child rights enforcement
committees have been set up. A national coalition force has been established to address the
issue of children at risk. A national action plan has been designed and national committees
established to protect children from sexual assault and labour abuse. The family law and penal
code have been amended to increase and ensure the safety and security of children.
In the social sector, children in particular benefited from the expansion of education and
health services. Demonstration children’s parliaments have been established and children are
increasingly exercising their rights. Action was taken to coordinate and integrate the work of
governmental and nongovernmental organizations to support and care for orphans and
children at risk. The strategy now is to sustain and consolidate these achievements in the GTP
period.
8.1.2 Objective
The main objectives for gender development during the plan period are to ensure women’s
active participation in the country’s economic and social development as well as political
processes and equal benefits to women from the resultant outcomes. In addition, harmful
traditional practices that adversely affect the active engagement and welfare of women will be
abolished.
The main objectives for children’s affairs in the plan period are to ensure that children benefit
from economic growth, that adequate care and support is provided to orphans and children at
risk, that children’s participation in society is enhanced, that harmful traditional practices
affecting children are reduced, and that their safety and rights are respected.
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8.1.3 Targets
The following main targets are to be achieved during the GTP period.
Table 43. GTP Targets for Gender Development and Children’s Affairs
1, Increase the number of women entrepreneurs that graduate from operating micro enterprises to small and
medium scale businesses.
Increase the number of women who receive training in management and entrepreneurship.
Increase the number of women beneficiaries of credit and saving services.
2.
3.
4. Reduce the rate of abduction. early marriage. and female genital mutilation.
5,
Increase the participation of women in decision making process.
6. Mainstream children’s affairs in all sectors.
7. Support and care min vulnerable and children at risk.
8. Introduce community centred care and support initiatives for children at risk.
9. Reduce the rate of sexual assault and labour abuse of children.
10. Reduce illegal child migration and trafficking.
8.1.4 Implementation Strategies
Three key implementation strategies are identified with regard to women affairs. The first
concerns strengthening women associations and organizations. Secondly, a more conducive
environment will be created for women to more actively participate in and benefit from
development and governance programs through their associations and organizations. Finally,
for the participation of and benefits to women to be effective and sustainable, effective
coordination of women’s associations and organizations and all other actors is critical. In this
way an accountable monitoring mechanism will be established such that women’s affairs are
mainstreamed and accordingly executed in all sectors. Implementation strategies for
children’s affairs focus on preparing and implementing a comprehensive children’s policy,
promote community based care for vulnerable and children at risk, and taking measures to
reduce child abuse in the labour market, sexual assault and child trafficking.
8.2 YOUTH AND SPORTS DEVELOPMENT
8.2.1 Strategic Direction
Policy directions for youth focus on enhancing the participation of youth in democratic
governance, economic and social initiatives and ensuring youth benefit from the resultant
outcomes. For sports development particular focus will be given to promoting community
participation in traditional and modern sports and strengthening the support given to high
performing athletes so they are able to produce and sustain good results at regional and
international events.
8.2.2 Objectives
During the plan period the main objectives for youth and sports development are to increase
the participation of youth in democratic governance and economic development processes and
build capacity in the sports sector to produce top class athletes for regional and international
competitions.
1
8.2.3 Targets
The main targets for the plan period are presented in the following table.
Table 44. GTP Targets for Youth and Sports Development
1, Increase the number of youth centres at woreda level.
Mainstream youth development programs in other’ development programs.
Iner
se the number of youth volunteers.
4. Strengthen then technical, material and financial capacities of sport associations and committees at
different levels.
Expand sports fields and training centers.
6. Increase the number of private investors in the sports development, and thereby enhance community
participation.
Increase the number of managers and coaches in different sports.
Increase the number of tournaments and of participating athletes.
8.2.4 Implementation Strategies
Implementation strategies for youth development include strengthening of youth associations
and organizations and their all rounded participation. Awareness creation and introducing
youth to information and knowledge exchange activities, and encouraging youth
entrepreneurship will also be part of the strategy. Data bases relating to youth issues will be
built and research concerning youth undertaken. Coalitions will be formed and cooperation
with stakeholders initiated for the implementation of the youth package.
The key implementation strategy for sports development is to create an environment
conducive to the empowerment and participation of community organizations in sports
activities. Women and disabled people will be encouraged to participate in sports in their
work places, dwelling places and schools, according to their sports preference. The
government will, at all levels, support restructuring of the management of sports so as to
increase community ownership and participation and make sports activities more financially
self sufficient. Efforts will be made to increase the number and quality of sports specialists
and experts. The participation of rural communities in traditional sports will be enhanced and,
lastly, support will be given to local production of sports wear and materials.
8.3 HIV/AIDS PREVENTION AND CONTROL
8.3.1 Strategic Directions
HIV/AIDS presents a challenge to our development and poverty reduction endeavours. The
government responded to the potentially complex impacts of the disease by introducing, in
1998, its national HIV/AIDS policy and, in 2002, an Anti HIV/AIDS medicine supply and use
strategy. Survey results indicate that it is the 15-24 age working population, who are most
vulnerable to HIV/AIDS.
Since HIV/AIDS requires a longer term and improved care and treatment, it is a major social
problem. Thus the prevention and control of HIV/AIDS has been integrated into the health
extension program. This approach helps to avoid the stigma and discrimination that can occur
as well as raise communities’ awareness and ensure their support for People Living with
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HIV/AIDS. In addition it helps to integrate private and governmental efforts to sustainably
raise resources to support People Living with HIV/AIDS.
The main strategic directions for the HIV/AIDS prevention and control program are to expand
HIV/AIDS prevention activities, provide an all inclusive and good quality health service for
HIV/AIDS and related diseases, reduce vulnerability to HIV/AIDS, strengthen the systemic
collection and use of data relating to HIV/AIDS, increase the accessibility of HIV/AIDS
related health services, and provide special care and protection for HIV/AIDS patients and
families.
8.3.2 Objectives
The main objectives for HIV/AIDS prevention and control during the GTP period are to
reduce the HIV/AIDS incidence and prevalence rate, sickness and death rate and thus the
impact of HIV/AIDS on society as a whole.
8.3.3 Targets
The targets for HIV/AIDS prevention and control during the plan period are indicated in the
following table.
Table 45. GTP Targets for HIV/AIDS Prevention and Control
1. Reduce HIV/AIDS incidence (%) 0.28 0.14
2. Awareness rate about HIV/AIDS among 15-49 years old persons (%) 22.6 80.2
3. Adults on antiretroviral therapy (no) 246,347 484,966
4. Provide voluntary counselling and testing services (min ) 92
5. Children on antiretroviral therapy treatment (%) 95
8.3.4 Implementation Strategies
Implementation strategies for HIV/AIDS prevention and control are to build capacity for
prevention and control, strengthen community participation, and create awareness among the
population as a whole. In addition, HIV/AIDS prevention and control activities will be
expanded and special attention will be given to the vulnerable in the society. Gender equality
will be ensured, harmful traditional practices abolished and the stigma and discrimination
reduced. The accessibility of HIV/AIDS prevention and control services will be increased.
Voluntary testing and counselling service services will be expanded and treatment of sexually
transmitted diseases and condom distribution given due emphasis. The safety and protection
of persons who come into contact with blood will be ensured and immediate treatment
provided when they are exposed. The quality of and extended treatment and care service for
people living with HIV/AIDS will be strengthened and care and support provided for
HIV/AIDS orphans.
8.4 SOCIAL WELFARE
8.4.1 Strategic Directions
The social welfare program focuses on protecting the rights of and creating opportunities for
participation of disabled and elderly people so that they contribute fully to the development
process as well as to political, economic and social activities in the country. Social welfare
initiatives focus on preventing the recurrence of social problems that arose previously in the
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society. The programs implemented will mainly be community and family based, but
governmental and non governmental entities will also play their role.
Programs that aim to benefit the elderly need to ensure their dignity, freedom and social
status. Such programs will also focus on providing care and support for the elderly in the
community and hence maintaining close family and social ties. The programs for people with
disabilities aim to prevent disabilities, provide education and training, rehabilitation services
and ensure equal access and opportunities for people with disabilities. Measures that
strengthen positive attitudinal and behavioural changes of communities with regard to
disability will be taken.
8.4.2 Objectives
The main objectives are to provide an all inclusive and participatory social welfare and
security system that identifies and responds to social welfare challenges, expands care and
support programs for the mentally ill, disabled and the elderly and contributes overall to
development activities.
8.4.3 Targets
Two main targets for social welfare are set in GTP . The first concerns establishing a standard
social welfare scheme involving government, non-governmental agencies, elderly and people
with disabilities in the preparation and delivery. The second target refers to increasing the
coverage of social security services overall based on the envisaged scheme. Based on this
standard social welfare system, the number of disabled people who benefit from physical
rehabilitation and support, of people who have access to social welfare, and of people who
receive capacity development and awareness creation training, will be increased through the
coordinated efforts of the community, people with disability, the elderly, the government and
non —governmental agencies. Implementation Strategies
All implementation plans need to focus mainly on community based welfare systems. From
this perspective, implementation strategies for social welfare during the plan period are to
create a knowledge and experience sharing environment supportive of the elderly and help
them to contribute to the country’s development processes. Social welfare authorities will
collaborate closely with and coordinate social welfare programs to care and support the
elderly with stakeholders who are engaged in these programs. NGO care and support
programs for the elderly will be encouraged. Disabled people will be encouraged to
participate fully in economic, political and social development activities. Special attention
will be given to children with special needs and assistance will be provided to help them start
and continue schooling. Government will take steps to ensure that people with disabilities
have equal job opportunities and participate in economic development without discrimination
or stigma. Measures that minimize barriers to the movement of people with disabilities, for
instance in schools, homes, recreation centres and health facilities will be taken. Special
support for people with disabilities’ mental and physical needs will be provided. Training and
rehabilitation programs will be provided and communities’ participation in social welfare
programs enhanced.
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8.5 LABOUR AFFAIRS
8.5.1 Strategic Directions
There are three key policies adopted for labour affairs in the GTP. These are
To expand job information services by setting up a data base system to identify job
opportunities. The system will enable analysis of labour market demand and inform policy
makers, employers, economically active citizens, research institutions and education and
training centres.
To expand workplace support and cooperation to encourage the resolution of labour
disputes by bilateral (employee and employer) and trilateral (employee, employer and the
government) dialogue and discussion. The government will also encourage improvements in
working environments and job safety so as to increase productivity.
Monitor of the working environment to ensure that employees and employers abide by the
relevant rules and regulations and respect their duties and responsibilities to ensure job safety.
8.5.2 Objectives
The objectives for labour affairs during the plan period are to ensure expansion of job
information services, job safety and stability of the working environment and enhance labour
productivity. Achievement of these objectives will contribute to overall socio-economic
development.
8.5.3 Targets
The following targets are to be achieved during the plan period
Table 46. GTP Targets for Labour Affairs
Ensure an effective enforcement of the labour laws.
1.
2s
Launch a job information service.
Support job seekers.
Provide capacity development training to employees and employers.
Launch dialogue and discussion forums at workplaces.
Provide support to solve labour disputes through dialogues and discussions.
2a wey
Strengthen monitoring of working environments.
8.5.4 Implementation Strategies
During the plan period implementation strategies for development of labour affairs are to
effectively implement the labour laws through participation of stakeholders’, strengthen
public awareness of labour laws, enhance labour affairs implementation capacity and expand
job information centres.
8.6 POPULATION AND DEVELOPMENT
8.6.1 Strategic Directions
Ethiopia’s population policy aims to lay the foundation for harmonizing the rate of population
growth with the country’s capacity to develop and use natural resources, and so improve the
overall living conditions of citizens. One of the features of Ethiopia’s demography is that a
large number of the population join the national workforce each year. The ratio of the
population of working age to the total population was 54% in 2008 and estimates are that each
year an additional 1.2 mln people join the national workforce. So when the pool of
economically active members of the population increases in size, provided that they receive
the support necessary to be productive, the country’s workforce plays a significant role in
increased economic growth and development. For this reason, economic growth and
development benefits from the opportunity presented by the nature of Ethiopia’s
demographics. Moreover, the policies and strategies adopted by education, health, agriculture,
industry and other sectors will contribute positively to effective implementation of the
population policy.
8.6.2 Objective
The main objective of the population development plan during the GTP period is to lay down
foundations for harmonizing Ethiopia’s main demographic characteristics with desired
development outcomes of the country’s economy.
8.6.3 Targets
The following targets for population and development are to be achieved during the plan
period.
Table 47. GTP Targets for Population and Development
1. Expand the health extension program’s provision of family planning services.
2. Mainstream the population development agenda in, and ensure effective implementation of, the GTP
development programs of every sector.
3. Improve community participation in, and awareness of issues relating to, population development.
4. Support and strengthen population education as it is addressed in primary and secondary education
programs.
Implement the national population, information and communication strategy.
Increase the ratio of family planning users to 65% by the end of the plan period.
Enforce the family law provision of a minimum marriageable age of 18 years.
Develop a population data base to assist research into migration, urbanization, etc.
CRN aw
. Execute the national plan of action for population development so as to provide for the effective
implementation of population policy.
10. Establish the national population council.
8.6.4 Implementation Strategies
The first key implementation strategy to be pursued during the plan period is expanding the
coverage and alternatives of family planning services. The second strategy concerns
empowerment of women through education, economic and political participation. Community
awareness about population issues will be enhanced through the mass media. Based on these
strategies, women would be put in a better position to decide for themselves on the number of
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children to have. The capacity of stakeholders working on population issues will be enhanced
through knowledge and experience sharing forums.
8.7 CULTURE AND TOURISM
8.7.1 Strategic Directions
During the plan period, the strategic directions for the culture and tourism development
program are to enhance the role tourism and culture play in socio-economic and political
development initiatives. The tourism industry policy directions aim to make Ethiopia one of
the best tourist destinations in Africa. Tourism industry products and services will be
expanded in quantity and quality to enable them to compete globally. Women and youth will
benefit from the sector’s development. Cultural and tourist attractions will be used to build an
attractive image of the country. The cultural, natural and historical heritages and values of the
country would be developed so that they play a significant role in social and economic
development as well as in the democratization process of the country. Cultural goods and
services will be promoted to play a greater and positive role in the country.
8.7.2 Objective
The main objectives for culture and tourism, during the plan period, are to ensure the
sustainable development and conservation of tourism, Ethiopia’s diverse and unique culture
and cultural heritage sites, and encourage the community’s participation so that, overall,
cultural activities and tourism contribute to socio-economic development and democratization
process in Ethiopia.
8.7.3 Targets
The following targets are to be achieved during the plan period.
Table 48. GTP Targets for Culture and Tourism
levelop and promote all designated cultural heritage, national attractions, and tourist
2. Ensure that earnings from the natural, culture and tourism sectors contribute to the overall vision that
Ethiopia becomes a middle income country.
Ensure that culture contributes to strengthening of integrity and democratization of Ethiopia.
Make more accessible tourist attractions and cultural heritage events and sites, for tourism and research.
The promotion of cultural and tourism contribute to build a better image of the country.
awry
The culture and tourism sector contribute significantly to foreign exchange earnings of the country.
8.7.4 Implementation strategies
The implementation strategies that will be pursued during the plan period include
encouragement for all stakeholders in the sector to follow an integrated approach in
implementing the culture and tourism program. Implementation gaps in the development of
culture and tourism will be identified and rectified, while the full participation of communities
in its development will be ensured. The capacity of cultural and tourist facilities and service
providers will be enhanced and accreditation will be granted when standards required are met.
Strong linkages to global tourism markets will be facilitated in partnerships and through
cooperation.
117
8.8 SCIENCE AND TECHNOLOGY DEVELOPMENT
8.8.1 Strategic Directions
The following six strategic directions will be pursued during the plan period by the science
and technology development program.
Building innovations systems will build an_ institutional framework with policy
implementation guidelines. Research will be conducted to analyze policy frameworks and
develop a science and technology development plan consistent with the social and economic
strategies of the country. The implementation of this plan will be monitored and evaluated.
Adequate resources will be allocated and funds secured to build innovation in science and
technology, with active engagement in bilateral and multilateral innovation projects.
Technology transfer and development will involve increased coordination of and
integration with stakeholders to identify technology demand, build value adding information
and technology data bases, enhance the support systems, and develop a monitoring system for
technology duplication and adaptation processes. Research and technology capacity
development will focus on developing research and technology capacity in industry, water,
energy and other development sectors, support research projects and strengthen research
infrastructure.
Human resource development will aim to produce high quality human resources capable of
expanding technological innovation and adaptation, and capable of managing science and
innovation systems effectively. Intensive work will be done at primary and secondary
education level to realize the target of a 70/30 science and mathematics enrolment rate at
tertiary level.
Quality and standardization strategies will build an accreditation system to international
market standards for quality export goods and services, to enhance their competitiveness.
Ethiopian quality and standardization guidelines will be prepared and assessment and
metrology organs accredited.
A Science, technology and innovation information development initiative will compile
and distribute national and regional science and technology information in databases,
statistical abstracts and bibliography. A web platform will be provided to make access to the
information easy and effective and an organisation established to facilitate and manage the
ative.
A focus on copyright and /intellectual /property rights will encourage innovation,
strengthen copyright and intellectual property rights, and encourage local innovators to
develop local technological capacity and develop the industry.
8.8.2 Objectives
The main objectives for science and technology development during the plan period are to
establish organisations and agencies that contribute to improvements in productivity and
quality of local produce. Means to facilitate technological transfer will be established. An
innovation strategy will be implemented and high quality human resources produced. Quality
and standards information will be used for technological transfer to help exports of services
and products compete in the global market. Measures to control radioactive materials and
radiation will be taken to ensure citizens’ safety. Intellectual property rights and science and
technology development systems will be strengthened.
118
8.8.3 Targets
The following targets are to be achieved during the plan period
Table 49. GTP Targets for Science and Technology Development
Increase first level ethanol coverage (%) 10 75
Increase the number of patent documents (min) 30 50
Reduce the coverage of tsetse fly (%) 95
Use 5 min patent information documents for technology transfer and adaptation.
Establish universities specializing in selected science and technology subjects.
Po ye Pe) Le bee
Strengthen the already existing agricultural, health and information technology research institutes with
essential materials and financial resources.
7. Establish technology and research institutes for industry, electronics and micro electronics, water,
construction, energy and material sciences.
8. Establish laboratories for water, medical science. electromechanical, chemical and geochemical, material.
concrete testing and geo-techniques subject areas.
9. Establish worldwide accreditation in five measurement areas in International Organization for
Standardization / International Electro technical Commission 17025 laboratory quality management system.
10. Revise 5000 national standards and 5000 new standards for technology transfer.
11. Establish accreditation for 60 science and technology organisations which meet national and international
quality standards.
8.8.4 Implementation Strategies
A wide range of implementation strategies for science and technology development will be
pursued during the plan period. A national innovation system will be launched and an
organisation to manage the system will be established. Research institutes for technological
adaptation will be established. An administrative and legal system for copyright that meets the
country’s needs; will be created. Foreign technology flows into the country will be
encouraged. Science and technology institutes capable of producing competent scientists and
engineers will be strengthened. Human resource capacity to use, copy, adapt, improve and
develop technologies will be created. Existing research institutes will be restructured and
strengthened so as to contribute to the country’s technological capacity. Strategies that
strengthen linkages between research institutes and industries will be introduced. Well
structured and organized bodies that help to produce innovative technologies will be
established. Implementation of mandatory national standards will be strengthened. Research
activities related to collection, analysis, protection and distribution of science and technology
information will be supported. The organization will be established to protect and develop the
country’s intellectual property and the system to use intellectual property for economic
development will be strengthened. Synergies will be facilitated and linkages put in place
between organizations working in environmental protection and public safety. Research and
capacity building cooperation programs in science and technology that contribute to national
development initiatives will be established and expanded.
8.9 ENVIRONMENT AND CLIMATE CHANGE
8.9.1 Strategic Directions
Environmental conservation plays a vital role in sustainable development. Building a ‘Green
Economy’ and ongoing implementation of environmental laws are among the key strategic
119
directions to be pursued during the plan period. In building a ‘green’ and climate change
resistant economy there are two key issues, adaptation to climate change and mitigation of
green house gases.
Adaptation to climate change: The climate is a natural phenomenon which influences
positively or negatively social and economic activities. Climate has its own peculiarities and
affects future opportunities for, and prospects of, the country. Even though Ethiopia’s
greenhouse gas emission rate is minimal, the country is affected by climate change. There are
agro-ecological zones (dry land and semi-dry land areas) and economic sectors which are
more vulnerable to climate change. Research findings show that Ethiopia annually loses 2%
to 6% of its total production due to the effects of climate change. In Ethiopia climate change
causes sporadic distribution of rainfall in dry and rainy seasons. In some cases excessive
surface water runoff results has catastrophic effects, for instance very rapid filling and
emptying of ground water reservoirs has been witnessed, as has biodiversity degradation. The
evidence of these impacts shows how very critical it is that climate change adaptation
strategies are put in place during the plan period and thereafter.
Mitigation of green house gases: Greenhouse gas emissions by developed nations have been
enormous since the industrial revolution, and so it is mainly the responsibility of developed
nations to reduce greenhouse emission rates. Ethiopia has the lowest per capita consumption
rate of fossil fuels. It has almost no contribution to the greenhouse gas emissions that are the
cause of adverse climate change impacts. On the other hand, in Ethiopia there are indigenous
knowledge, practices and systems which reduce biogas emissions. In the agriculture sector
farmers use biologically based inputs like cow dung and compost as fertilizers. Ethiopia’s
contribution to creating a stable and more beneficial climate is very clear. In addition, energy
generated from wind and geothermal sources can meet Ethiopia’s energy demands, as well as
those of neighbouring countries and further contribute to climate conservation. Without
putting pressure on farm land, ethanol production can be doubled. The forest coverage in the
northern part of Ethiopia has been recovering since the past 20 years. There are practices in
Ethiopia which can be adopted for mitigation of the adverse impacts of climate change.
Focusing on economic development which mitigates climate change effects is very important
from the point of view of the country’s economic interests, its capacity to develop renewable
energy sources and the prospects for its future energy consumption. The economic
development direction pursued by the Ethiopian government contributes to climate change
mitigation and so may generate new and additional environmental support funds from
developed nations. According to the Copenhagen Accord and the Kyoto Protocol,
technological and financial support has been put in place for climate change mitigation works
carried out by developing nations. For this reason it is timely to build climate mitigation
capacity so as to benefit from international financial support for environmental activities.
During the plan period focus will be given to building capacity to mitigate the negative
impacts of climate change. The current impacts and trends relating to climate will be
identified and information on the possible outcomes and existing environmental management
practices will be assessed and disseminated. Steps will be taken to either avoid the impacts of
climate change predicted or limit the impact to an acceptable level.
8.9.2 Objectives
The main objectives for the environment and climate change initiatives in the GTP are to
formulate and effectively implement policies, strategies, laws and standards which will foster
social and green economy development so as to enhance the welfare of citizens and,
environment sustainability.
8.9.3 Targets
The following targets are to be achieved during the plan period
Table 50. GTP Targets for Environment and Climate Change
1. Energy generated from renewable energy resources (MW) 8,000
2. Sales of ethanol and biodiesel (mln liter) 35
3. The minimum area covered by forest (km?) 2,000
4. Area of productive forest developed (km? 25,000
5. Area of natural forest developed (km?) 2.876
6. Area of forest of trees that shed leaves (km*) 4,390.6
7. Area of designated park land (km?) 60.360
8. Area of designated wetland (km?) 51,496
9. The area of farmland to which compost will be applied (km?) 40,000
10. Land area utilised by mixed farming & forestry for bio gas emission mitigation (km*) 261,840
11. The amount of urban waste used to produce methane gas (mln m3) 20
12. ‘The climate change resistant green economy will be strengthened and measures will be taken by all tiers of
government for preparation and implementation of environmental action plans in all regions.
13. Policies, laws, strategies and action plans will be put in place to address climate change mitigation.
14. Dams, roads and infrastructure facilities which contribute to poverty reduction but are vulnerable to impacts
of climate change will be identified and mitigation measures will be put in place
15. Measures will be taken to mitigate climate change impacts to conserve the biological resources.
16. Regions and cities/towns pass and implement laws to build a measurable and achievable green economy
17. Establish a national system for environmental NGOs to assist them in the efforts to build green economy.
18. A dry waste management law will be implemented at all federal and regional levels.
19. The law on biogas emission rate by the 8 high emission rate industries will be fully implemented.
20. To make environment policy effective prepare a proposal for 5 additional environmental protection laws.
21. Reporting to the public on the performance of the 5 year environment development plan will be timely.
22. A national system will be built to help Ethiopia build a carbon free economy by 2025 and qualify for
additional global environment fund support.
8.9.4 Implementation Strategies
The following implementation strategies will be pursued during the plan period. A plan of
action, strategies, laws, standards and guidelines to implement measures that are designed to
lessen the effect of forecasted climate change impacts will be prepared. Programs to develop
the capacities of those stakeholders who are essential to ensuring effective implementation of
the action plans, laws and guidelines will be developed and implemented. Local and foreign
technologies for climate change mitigation will be collected and adapted. The capacities of
the private sector and community organizations for fund raising globally will be enhanced.
Environmental activities, public awareness and experience and knowledge sharing on
environment management practices will be developed and community participation in
environmental activities increased. Good practices of environmental protection that are
identified will be published and distributed. Certification, standardization and accreditation of
the experts and organizations working on environmental issues and climate change mitigation
will be put in place. International environmental laws and protocols will be ratified and
implemented. Appropriate action will be taken when offences against environmental laws are
committed.
121
CHAPTER 9.
OPPORTUNITIES, RISKS AND CHALLENGES
IN IMPLEMENTING THE GTP
Considering the time horizon and scope of the GTP, it is inevitable that there will be
opportunities that arise and unforeseen risks and challenges that emerge as the plan unfolds.
The government has sought to take these into consideration in formulating the plan, by
assessing recent performance and achievements as well as challenges encountered, and
evaluating the socioeconomic, political and the international economic contexts at the time the
plan was conceived. The opportunities should contribute to the success of the GTP. The risks
and challenges are expected to pose obstacles to the achievement of the GTP’s objectives and
targets and hence entail mitigation measures. The government has assessed the potential
positive and negative external developments that may affect the performance of the Ethiopian
economy during the five year period, and the environment in which the plan is implemented.
The GTP has built in measures to manage the effects of each of these factors. It is timely that
the GTP demands more concerted efforts considering the objective of achieving the MDGs by
2014/15 and the country’s vision by 2020-2023.
9.1 OPPORTUNITIES
The encouraging results and good practices achieved in the past five years have brought about
strong enthusiasm and confidence among citizens that poverty can indeed be eradicated from
the country. This enthusiasm is considered as a good opportunity to strengthen the national
consensus on the development and governance agendas of the country and thereby to mobilize
the wider public more actively to support the implementation of the GTP. A lesson has been
learnt that macro economy stability and sustainable economic growth is possible with the
policy and administrative measures the government has been taking. The country’s
comparative advantages, plentiful labour, a huge domestic market and substantial natural
resources potential, also provide a good opportunity for speeding up development in the
coming five years. The GTP period is a period where the huge investments made so far in
infrastructure and human resource development will result in greater returns by increasing the
productivity of the economy and by encouraging more productive investment.
Thus the GTP period is expected to experience improving productivity and production levels
in all sectors by applying the best practices that have been identified to date and capitalizing
on the good opportunities available. The capacity building and good governance packages that
have been implemented at different administrative levels also provide an opportunity in that
they have created relatively better capacities even at lower levels of administrations and in
communities. This helps to increase public participation for greater allocative efficiency and
results, and for more effective, transparent and accountable service delivery in all sectors. The
opportunities described will serve as additional driving forces for development in the GTP
period.
The investment needs of the GTP could be mobilized by increasing the communities’
participation in effective domestic revenue collection, savings and resource utilization. In
addition, the good relationship between the government and development partners and the
government’s established commitment to eradicate poverty are expected to encourage
increased external resource inflows, contributing to the success of the GTP.
9.2 RISKS
The main foreseeable challenges in the implementation of the GTP include low
implementation capacity, low national saving rate that is unable to support the investment
needs of the economy, and the unpredictability of external financing. In addition, it is
anticipated that global market price fluctuations could pose some challenges to effective
implementation of the plan.
9.3, MANAGING RISKS
Risk mitigation measures that address the foreseeable risks in the development process
mentioned above include improvements in the tax administration system and broadening the
tax base so as to increase domestic resource mobilization. Government, organizations and
individuals will be encouraged to increase their savings to provide adequate resources for the
country’s investment needs. The favourable policy and administrative environment created
will support effective utilization of the capacities of communities and the private sector as
development partners in the development and governance endeavour of the GTP. External
finance resources will be mobilized and, where secured, will be effectively used for
investment in priority sectors. The contribution of local and international NGOs and CBOs in
the implementation of the development plan will be strengthened.
Measures will also be taken to address capacity limitations by strengthening the
implementation of the civil service reform program at all levels. Foreign exchange earnings
will be increased by expanding export capacity, and substituting imports with competitive
local products. Measures to guarantee sustainable and rapid agricultural and overall economic
growth like scaling up of best practices, and expanding irrigation will be taken as risk
mitigation initiatives. The public expenditure management reforms introduce to ensure
stringent recurrent expenditures will be strengthened such that the limited available resources
are efficiently and effectively utilized for productive purposes.
CHAPTER 10.
MONITORING AND EVALUATION OF THE GTP
10.1. BACKGROUND
The main objective of the GTP monitoring and evaluation system is to follow up on
implementation of the sectoral and cross cutting plans included in the GTP so as to ensure
effectiveness of government policies and strategies. The M&E system provides a tool to
follow progress in achievement of planned targets, maintain the coherence and integration of
the overall economy, take timely corrective measures when needed, and manage the
development process effectively. Ethiopia’s M&E system is based on the sectoral approach
and is a tool whereby timely and reliable information on results, from the Federal to the local
levels of government, is compiled and reported.
The GTP’s M&E system is built on the existing Welfare Monitoring System Program which
has been in place since 1996. It is imperative that the M&E system has adequate data inputs
and to support this need, the Central Statistical Agency (CSA) recently launched the new
National Strategy for the Development of Statistics (NSDS) in consultation with relevant
stakeholders. The NSDS will help to generate data through surveys and censuses to monitor
implementation progress of the GTP. The administrative data generated by sectoral line
ministries will also provide an input to the M&E system. Data from censuses, surveys and
administrative sources will be used to generate full-fledged economic analysis and reports by
the Ministry of Finance and Economic Development.
The main roles and responsibilities played by the major actors in the GTP M&E system are
outlined below.
10.2 MONITORING THE OVERALL PLAN PERFORMANCE BY MOFED
MoFED chairs the Welfare Monitoring Technical and Steering Committees that play a role at
the national level, in managing the overall economy and coordinating the M&E system. The
background reports prepared by the members of poverty-oriented federal executing bodies
serve as a basis for the reports prepared by MoFED. Sectoral annual implementation, M&E
reports generate data to measure output and input results against GTP performance indicators.
Reports prepared by the CSA, based on information from surveys, generate data to measure
outcome and impact results against GTP performance indicators. Based on the information
available from surveys as well as from administrative sources, MoFED prepares annual
implementation assessment reports as an input to the Welfare Monitoring System Program
and for timely distribution to the relevant government authorities as well as to non-
governmental bodies.
MOoFED also provides up-to-date monitoring of welfare, macro economic performance,
national accounts, foreign resource mobilization and administration, public debt management,
public accounts, etc. MoFED holds regular annual meetings of Welfare Monitoring Technical
and Steering Committees to address challenges faced in the implementation phase of national
development plans and facilitate the learning and sharing of emerging good practices. As part
of the GTP M&E, focus will be given to experiences and emerging best practices so as to
generate a learning and timely information sharing culture among implementing bodies.
Annual and end of plan period targets are set in each sector and, to summarise and present
these in a consistent coherent form, a policy matrix is prepared and published by MoFED.
The GTP policy matrix will present the targets set and detail possible measures to be taken to
improve performance during the plan period.
10.3 THE ROLE OF FEDERAL EXECUTIVE BODIES
Federal implementing agencies play a critical role in ensuring that the national M&E system
is robust and useful. As the M&E system becomes more robust and consistent it will be
possible to provide more timely and relevant information to stakeholders. The M&E system
has a national context as the targets set in the plan are focused at the national level.
Federal implementing agencies prepare and submit annual progress or implementation
assessment reports to MoFED. They contain detailed information from the local levels of
government, woredas, kebeles and city governments/administrations. As the main
implementation agencies of the national development plan are the regions, city
governments/administrations, woredas and kebeles, intensive capacity building activities will
be undertaken in the next five years, in sector line ministries responsible for strong and
coherent linkages with the lower administrative levels, to ensure timely and accurate
information flow and feedback for the national M&E system.
During the plan period, implementation agencies at the federal, regional and local levels
should ensure that adequate human resources are provided and sufficient M&E capacity
development takes place to ensure the M&E system is operationally effective. To realize this
objective, MoFED will work in close collaboration with Bureau(s) of Finance and Economic
Development (regional), woreda and city governments/ administrations to facilitate access to
technical assistance for M&E capacity development.
10.4 CENSUSES AND SURVEYS FOR THE M&E SYSTEM
The CSA’s mandate is to gather socio-economic and demographic data through integrated
censuses, surveys, continuous registration and administrative recording systems and compile,
analyze and present to users useful data in user friendly formats. The CSA also provides
technical support to government and other implementing bodies on statistical data keeping
and builds capacity continuously for registration, administrative data gathering, compilation,
analysis and reporting systems.
To fulfil its mandate the CSA has been implementing the NSDS since 2009. The NSDS has
been revised to address the data needs of GTP and it has defined strategic directions and
designed an action plan to compile and analyze data from censuses, surveys and
administrative sources. For M&E of the progress towards achievement of MDGs and the
targets set in the GTP the CSA plans to conduct the following surveys during the plan period.
Table 51. Surveys to be Carried out by CSA During the Plan Period
General agricultural pr:
4. Land management survey. 4. Strengthen gender statis'
“Agricultural production survey (‘Mel Preparation for the 2017 national population
and ‘Belg’ Season). and housing census.
nvironment statistics. Strengthen vital statistics.
estock. poultry and beehive surv
125
Update population census.
Undertake Demographic & Health Survey.
Undertake inter census study.
Natural resources and wild animal survey.
). Pastoralist areas survey
11. Rural economy survey. Consolidate gender statistics.
Consolidate vital statistics,
eS
Large and medium scale manufacturing
industries survey.
etail price sl
EO ~
__ 4. Wageindex, ___ 3. Distributive trade and service sector survey
3. 4, Construction survey.
7. Household income and consumption
survey. statistics.
7._ Strengthening export trade statistics.
8. Producers and amount index for manufacturing
11. Street children survey industries.
12. Welfare monitoring survey. 9. Survey on IT use on large and medium scale
manufacturing industries.
_10.Survey on mining exploration.
11, Quarterly survey on large and medium
manufacturing industries.
12. Build data base on water distillation and
distribution.
13. Survey on cottage industry and the informal
sector.
To achieve the above targets the following strategies will be implemented.
Ensure implementation of statistics law and guidelines: The strategy focuses on
establishment of a unit to coordinate the National Statistical System. The unit’s purpose will
be to establish common standards, classifications and definitions for all producers of official
statistics.
Improving data quality and standards: The strategy will focus on improving data quality in
the national statistical system.
Enhancing advocacy and use of statistic: The strategy aims to improve statistical launch
procedures and press relations, train statistical users including the media and establishing
regular relations with data users.
Methodological improvements and statistical modernisation: The strategy aims to
generate feedback from stakeholders’ consultations.
Capacity developments in the national statistical system: The strategy aims to build
stakeholders’ capacity in the National Statistical System.
Ensure the NSDS is direct input for monitoring and evaluation of the GTP and other
interventions: The strategy will focus on the responsibility of the NSDS for official statistics,
for instance, the adequacy of NSDS statistics used by the GTP monitoring systems will be
checked, as well as the processes for quality assurance of monitoring and evaluation surveys.
126
In addition, the following system-wide data improvements will be implemented
Coordination of the national statistical system: The strategy focuses on ensuring statistical
ethics, quality and standards. The data quality standard agreement endorsed by stakeholders is
expected to be endorsed by the statistics council and will then be implemented, sufficiently
funded, well equipped and staffed.
Technology improvements: The aim is to strengthen and enhance technology use, including
utilization of GPS, high speed portable computer, satellite imagery and computer aided
telephone data collection.
Mobilisation of support: The CSA will mobilize support for NSDS implementation and will
aim to achieve the Paris declaration agreements relating to national statistics. CSA will align
and harmonize development partners’ support for the NSDS and establish a committee to
accomplish this task.
Business Process Re-engineering: The CSA is implementing the Business Process Re-
engineering process and, in the process, has adopted many NSDS proposals. The BPR
document contains an action plan and a performance management plan. The plans will be
evaluated quarterly and an annual report presented to the statistics council.
Statistical System Capacity building: A key implementation strategy involves a number of
measures that will be taken to build the capacity of statistical systems during the plan period.
All CSA’s branch offices will be networked. The data collection, compilation and
dissemination system will be improved. Data analysis at branch office level will be
introduced. A statistical data quality assurance document for Ethiopia will be prepared. A data
quality evaluation framework will be prepared. Data quality in each sector will be evaluated.
Data producers and users will be trained. A catalogue for the NSDS will be prepared and links
between CSA and other websites will be put in place. Postgraduate level training for experts
at the CSA will be provided and a new building to accommodate CSA will be constructed.
Greater emphasis will be given to enhance the internal capacity of CSA field surveys for
effective implementation and data management.
10.5 Geo-Information
During the plan period, emphasis will be given to building a national geo-information system
that is quality assured and will generate consistent and useful geo-information. Once the
system is operational it will provide timely and geo-information supported by air photography
and remote sensing.
Phone numbers
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- 84364989520649595243288330
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Phone numbers
- 48.800 5 1.636 54.8 18 58.2 11 6 1.771 64
- 10 201-1115
- 185.788 467.001
- 224 54.383 65.477 78.924
- 9.568 24.299 40.044 55.790 7 1.522
- 1.0 0.8 0.8 0 .8 0 .6 0 .8
- 190 0 0 2 1
- 126.038 258.00 0
- 12.3 13.5 13.7 14
- 9.6 10.1 10.6 1.1 1157
- 7.000 16.000
- 10.3 11.6 11.6 12.3 13.3
- 4 15.3 15 .6 16 .6 14.9
- 307.43 220.4 1 3 1.14 2.35
- 13.0 14.6 13
- 2.74 8 5.859. 1
- 11 20 11112 2012
- 9 75 74.507 92.436 323 .0 10
- 178.63 7.25-1.9 1 107
- 12000- 15000
- 94.5 93.9 9 1.9 89.2 86.4
- 2 28 106.460 127.212 43 1.022
- 777.12 315
- 708.7 864. 160. 12
- 262.6 882.3 8.9 3.993 .50
- 10 6 200 610 7 2 1107
- 3 14.5 2250
- 162.000 8 15
- 100.0 100.0 100.0 100.0 100.0
- 484.6 5.0 15.6 15
- 666.84 569
- 2) 14.7 15.0 13.3
- 765 .16 56
- 20 .0 - )9 .3 -20.9
- 12 20 12113 2013
- 18.9 17.7 17. 1 16.0 16 .3 17.3
- 185.788 46 7.44 5
- 44.5 123.7
- 333.7 43 2.353. 000
- 5 1.6 0.9 1
- 47.25 1 60. 682 72
- 38 258.038
- 3.43 5.049
- 228 .20 70
- 2.8 24 221 2.1 2.1 2.1 2.2
- 68 7.33 143
- 13 2013114 2014
- 16.870 2 1.703 29.35 4 33.043 38.823 46.826 169.749
- 62.85 53.3 2 5
- 901 75.804
- 217.2 483. 4
- 2. 162 . 162 3.083 .360
- 45.000 67.000
- 3.907 8.700
- 166.0 7 23 1.84 181.9 2 189.84 23.77 793
- 45.6 46.2 46.3 46.0 45.3 44.3 45.6
- 659.7 1 9 1
- 13.2 13.4 13.0 12.1 10.8 12.4
- 48 4.1 2.228 .5 1.376.9 9.825.00
- 1.3 ) (3 .3
- 229.67 5 1
- 2.880 .3 3.320 .8
- 15 (20 10111
- 12000-15000
- 5.090 14.640
- 64 0.78 0.98
- 45.58 47.0 46.8 4 5.8 44.3 42. 1 44.0
- 27 8.796 11
- 4 1 3 1.142.35
- 19 .2 2004 20
- 2 336.7 143.7 3
- 12.6 11.6 10.0 9.2 8. 1 8.4
- 6 .9 6 .6 6. 1 5.5 4.5
- 11.3 11.2 14 11.2
- 200 9110 2014115
- 2210 37850
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- 5.5 6 . 1 8. 1 10.8 13.6 17.0
- 22.6 110.2
- 20 10 20 14115
- 33.0 32.6 3 1.7 30.6 29.4 28. 1 30.5
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- 960.8 9.70
- 356 4.983 6.932 8.438 22.886 50
- 127.242.6 785.582.6
- (2010111- 20 14
- 3 17 (56.68
- 2009110 201
- 3 4. 1 2.6 2.4 3.3 2.8
- 48.800 51.636 54.818 58.211 61.771 64522
- 75.73 496.87
- 6.06 16.21
- 2009110 20 10
- 5 1.6 0.9 1.1 12 2.7 1
- 10. 1 9.6 8.6 11.3
- 66. 237 79
- 10.9 10.7 10.7 9.7 9. 1
- 22 10 37850
- 64.1 373 48.7 40.9 34.3 29.0
- 18.6 20.5 20.2 21.1 22.3 23.7 2 1.6
- 100(1) 101 6
- 4115 (20 1011 1
- 4 1.689.5 2. 174.3 72
- 1.0 0.9 1.1
- 7 21.2 22.0
- 1.50 8.130
- 2.000.000 4.000 .000
- 14.0 14.1 14.2 15.3 16.8 17.1 15.5
- 225.446 1.120.98 1
- 488.6 647.5 86 2.5 888 . 1 460 3
- 22.3 25.3 27.2 28.1 28.9 28.2
- 3.21 10.21
- 58.4 00 979.600
- 1.286 1.56 5.9 1.96 0.8 5.569 .70
- 10.3 11.6 11.6 12.3 13.3 14.4 12.6
- 861 63.315
- 12.376 16.-19 1 22.356 2
- 1.431 8.398.4
- 7.6 9 .5 13.5 16. 1 17. 1 18
- 2010111 20 11
- 6 96.94 1 11
- 66.237 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
- 27..334 9 1.983
- 33.0 35. 7
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- 1.758 7.356 4..983 6.93 2 8
- 33.0 34.5 34.5 34.9 35.3 35.7 35.0
- 736 .75 82
- 4.547.6 6.260 8.398 9.826 11.876 14.778 5 1
- 591.73 193
- 1000) 101 68
- 4.235 5.897 6.813 9.035 12.695 18.423 52.863
- 5.9 4.6 8.7 5.3 6.7 5.5
- (7.7) (4.1) (10.8
- 9.174 .68 24.49 7.54 22.455 .5 11.154.12 6.293 .02 73
- 2.7 2.3 1.7 1.4 1.2 1.0
- 41.6 40.6 39.7 38.7 37.8 36.9 38.8
- 185.78 8 467 .00
- 58 61 64 67 70 73
- 53.86 1 63.3 15 74.585 94.11 9 12 1.660 145.299 498 .978
- 876 14.778
- 172.2 10 600.970
- 880. 320. 333 6
- 19.4 20.8 23.7 279 213
- 7 22.7 964.5 1
- 507 92.436 323
- 2.866 5.250
- 64. 1 57.3 48.7 40 .9 34.3 29.0
- 477 78.924 284
- 8 552 .4 529 .7 530.3 3
- 17.1 16.0 16.3 17.3
- 58.400 979
- 11 201-4115
- 33.0 32.6 31.7 30.6 29.4 28.1 30.5
- 2 30.8 28.7 33
- 6 2006107 2007
- 299 498.978
- 243 9.184 11
- 356 24.162 25.864 27
- 2 13.000 370. 000
- (19.3) (17.9) (16.8) (15.7) (14.5) (13.1) (15.6
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- 71.3 34 92.049 106. 125 130
- 3 .2 3.7 4.3 3.9 3 .6 3.3 3 .7
- 638.53 152
- 94.5 92.6 89.6 87.6 85.6 85.0 88.1
- 47.251 60.682 72.165 9 1.13 1 116.24 5 146.837 487.060
- 48 126.827 145.434 174.842 2 16.9 15 756.066
- 1.3 1.7 12.1 13
- 2.7 48 5.859. 1
- 43 2.8 44 4.0 43 3.2
- 307.43 220.41
- 22.3 22.6 22.4 22. 1 2 1.7 2 1.2 22.0
- 12.9 13.2 14.0 15.3 16.9 18.8 15.6
- 39.322 52.003 60.901 75.804 95.975 122.222 406.905
- 126.0 38 25
- 1 1 -20 13
- 37 3.0 23 19 16 4
- 1.2 2.7 1.5
- 2004105 2005
- 2011112 2012113 2013
- 1.1 1.0 0 .9
- 9.6 10. 1 10.6 11.1
- 62. 14 100
- 11.3 11.7 12. 1 13.2 14.7 15.0 13.3
- 200912010 2014
- 14.0 17. 1
- 6.058 16.2 10
- 47.251.6 60.6 82 86.243 10
- 9.00 8.6 1 24.265 .7 22.273.58 10.964.28 6 .269.25 72
- 11 201 1112 2012
- 22.6 23.7 -20.2 -20.1 -20.0 -19.3 -20.9
- 70 10.3 14.6 45.5
- 17.3 17.8 18.4 19.2 20.4 20.4 19.2
- 4 16 .9 14.8
- 13.6 15.5 17.5 19.5 21.7 24.0 19.7
- 46 54.046 61.975 74
- 254.91 107
- 76 95 13.5 16.1 17.1 18.4 14.9
- 5062 10154
- 1 3 1 116.245 146.837 -487.060
- 3 4.1 2.6 2.4 3.3 2.8
- 7 1.334 92.049 106
- 1.0 0.8 0.8 0.8 0.6 0.8
- 228.20 70.666.8 -1 569
- 9 70.23 105
- 550 . 1 11
- 707.-16 2.6 32. 19 2.53 7.6 1 10.564 .0 1
- 3 .3 2.1 3 .6 2.6 -0. 1 0 .5
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- 2 ) 60.360
- 2 15.02 37
- 4 1.56 39.9 39.5 39. 8 40.3 4 1.0 4 1.2
- 16.870 2 1.703 24.562 29.579 36.354 44.025 156.223
- 152.5 2.076
- 94.5 93.9 91.9 89.2 86.4 83.0 88.9
- 62.85 53.3 2 54.0 1 53
- 11 9.()()0 3 11.0
- 2.000 8.000
- 594 34.240
- 928 28.106 75.368
- 843.6 498 .9 520 .6 495 .9 524. 3 2.883.3 0
- 1.3) (2.7) ( 1.7) ( 1.9 ) ( 1.9 ) (3 .3) (2.3
- 127.212 431
- 39.32 2 52
- 39.3 22 52.002 72.78 1 83.459 100.335 124.479 ..0 3.056
- 454 5.780 9.60 0 3.600 20.46 6
- 23.5 22.4 20.7 18.9 17.2 18.6
- 2) 4.390.6
- 11.0 18.0 10.0 12.9
- 8.5 8.5 8.6 8.6 8.7 8.6
- 15.594 34.2 40
- 66.2 37 79.806 96. 94 1 118.28 1 147.524 173.040 6 15.59 1
- 187 161.-152 20 1.146 690.959
- 80 111.000
- 18.6 20.5 20.2 21.1 22.3 23.7 21.6
- 1.186 .9 2.54
- 8.4 8.9 8.6 8.8
- 282 .45 3.384.33 3
- 11 2011112 2012
- 10 2010111 2011112 2012113 2013
- 708.7 2.864 .8 2. 160.4 12.85 1.30
- 777. 12 3 15
- 3.7 3.0 2.3 1.9 1.6 1.4
- 45 .6 46 .2 46 .3 46 .0 45.3 44 .3 45.6
- 12.87 13. 1 13.7 14.3 15
- 775 1050 1.290 1.569.1 1.98 1.6 6
- 32. 0 12 40.046 45.224 54.3 83 65.-177 78.9 24 284.054
- 29 7.96 2 1
- 886.5 1.237.8 67
- 804 95.975
- 11.6 10.8 10.1 9.6 8.6 113
- 422.6 6 71.8 54 7.4 195 .3
- 3 60.901 75
- 16. 1 17.3
- 32 37 43 3
- 10.9 10.7 10.7 9.7 94 10.3
- 1.576.5 2.962 .5 2.793.5 2.485. 1 1.3 76.9 11.194.50
- 8 1.37 1.54
- 5 32. 130 39.065 48.818 163.3 12
- 321 48.894
- 12.9 11.8 10.9 12
- 12.68 33.43
- 12.3 13.5 13.7 14.8 16.1 17.3 15.1
- 10.6 14.0 179 21.4 23.0 23.7 20.0
- 9.48 8.8 18.6 2 1.6 17.2 17.2 13.483 .8 4.0 11.2 62.8 22.60
- 28.106 -75.368
- 10.546 10.78 1 10.997 12.891 15.200 1
- 4.2 4.7 3 .6 2.9 0.9 1.3
- 43.315 52.534 63.5 88 81
- 225.446 1.120.981
- 26.6 9.5 9.5 9.5 89.30
- 130 .3 4535 2.90
- 28.2 2 1.2
- 6.0 6.4 8.4 41.6
- 741 116.613
- 83.7 80.0 75.0 70.0 65.2 6 1.0
- 246.347 41
- 933. 00 77
- 8 1 147.524 173.0
- 10.6 14.0 17.9 2 1.4 23 .0 23.7 20.0
- 4.4 -4 .7 -3.6 -2.9 -0.9 - 1.3
- 100.0 100.0
- 11 20 11112 20 12113 20 13
- 906 13.92 8 28. 106 75.368
- 64 0.78 0.98 1.18 1.37 1.54
- 44.5 55.6 719 89.3 106.9 123.7
- 6.5 34. 10
- 43.3 15 52.53 4 63.588 8 1.228 106.-160 127.212 431.022
- 954.59 56.728.13 42 .0
- 4.4 4.7 3.6 -2.9 -0.9 -13
- 4 1.6 40.6 39.7 38.7 37.8 36.9 3 8.8
- 39 48 63 78 93 100
- (1.3) (2.7) (1.7) (1.9) (1.9) (3.3) (2.3
- 32.012 40.046 45
- 520 4.201 4.97 4 5.490 5.220 24
- 802 124. 139 156. 179 529.045
- 4 38 22..886 50.59 5
- 2009110 2014
- 94 2.76 8.425.74 6.246.00 1
- 314.5 2250
- 5.09 7 12.243 9. 184 11
- 750.6 64 1
- 22.6 -23 .7
- 2.909 .4 3.354.3 336.4 0.00 0.00 6
- 10.546 10.781 10.997 12
- 1.155.7 4.962.2 5.5 10.7 4.256.7 3.2 10. 1 19
- 32.0 12 40.04 6 54.046 6
- 19.3) (13. 1
- 16.64 7 3 1.036 3 1.304 24.5 16 7.293. 1 110
- 293.2 38 8.5 517 .5 532.9 276 2.008. 10
- 5.09 7 - 12.243 -9. 184 - 11.906 - 13.928 -28. 10 6 -75.368
- 14.601 17.30 4 25.9
- 3.3 2.1 3.6 2.6 -0.1 0.5
- 13.6 16.6 17.7 19.2 20.8 22.5 19.4
- 10.546 10.78 1 10.997 12.89 1 15.200 18.087 6 7.956
- 10.4 12.4 14.4 15.0 11.9
- 4.700 1.360 9420
- 53.42 53.46 55.42
- 53.86 1 63.3 15 14.58 5 94.1 19 12 1.660 145.299 498.978
- 13.6 15.5 17.5 19.5 21
- 4.7 1.92 1.80
- 8 .4 8.9 8.6 8
- 15. 1 13.8 12.7 11.4 10.5 13.6
- 11 2011 112 2012
- 33.636 56.904
- 247 .1-1 26
- 23 .7 27.9 21.3
- 3 19.647 600.970
- 319.647 600.970
- 4 47. 1 3.6 11.6 3
- 50.000 1-15.000
- 12 .9 13.2 14 .0 15.3 16.9 18.8 15.6
- 5.09 14.64
- (103 60.9 0 1 75.804 95.975 122.222 406.905
- 32.0 12 40.046 45.22-4 54.3 83 65.477 78.92-4 284.05-4
- 532.9 2.569 .4 2. 129. 1 1.487.8 15 6
- 19.3) ( 17.0 ) ( 14 .2) ( 11.0 ) (7 .7 ) (4 . 1) (10 .8
- 806 96.941
- 717603 1.127.330
- 10 20 10111 2011
- 12.6 11.6 10.0 92
- 1.386 .5 2
- 17.3 17.8 18
- 4.2 47 3.6 2.9 0.9 1.3
- 1.7 19 1.9 3.3 2.3
- 2.000.000 4
- 12.376 16.49 1 22.356 24. 162 25.864 27.74 1 116.613
- 6.998 9..5 18 15..683 17.768 21.6
- 187 16 1.452 20 1. 146 690.959
- 462.000 815
- 10.4 11.0 1
- 1.0 6 15.59 1
- 2009110 2010
- 13.8 12.9 11.8 10.9 12.8
- 29.5 30.3 26.3 25.5 23.8 23
- 235 5.897 5.701 8.088 11
- 7.0 10.0 11.0 100
- 83.7 80.0 75.0 70.0 65.2 61.0
- 14.942.76 8.42 5.74 6.2 46.00 1.307.43 220
- 28.3. 27. 1
- 389.6 4 13.9 309 .4 256.6
- 80.000 120.000
- 2.7 1.7 1.9 1.9 3.3 2.3
- 6.5 80 1.900 13. 190 0 0 21
- 3-1 1.000 831
- 11.25 12. 17
- 15 (2010111
- 4 6.244 .4 8.967.-1 5.657.4 3.52 4. 1 24.892 .70
- 10.180 111
- 4 2 53.46 55
- 162 25.864 27.74 1 116.6 13
- 50.000 145
- 10.4 12.5 144 15.3 15.6 16.6 14.9
- 122.222 406.905
- 20.4 -22.7 - 19.3 - 19 .4 - 18.2 - 19. 3
- 129.86 882
- 15 (20 1011 1
- 14.6 14.8 12.7 12.0 12.0 14.0
- 3 2.855.3 4.742.4 1.778.-1 10. 110.20
- 3.2 1 10.2 1
- 6.9 6.6 6.1 5.5 45 4.0 54
- 65 11200 1
- 2020-2 023
- 4.3 2.8 4.4 4.0 4.3 3.2
- 316 1.523.7 1
- 29.5 30.3 26.3 25.5 23.8 23.3 26 . 1
- 7 1.334 9 2
- 14.0 14. 1 14.2 15.3 16.8 17. 1 15.5
- 2 90.24 3.172 .0 1 13
- 687.33 143
- 970.23 105
- 2) 44.5 55.6 71.9 89.3 106.9 123.7
- 6.99 8 9.5 18 13. 123 15.905 20.302 25.699 84.547
- 9 . 1 9 .6
- 473.9 8.740 . 1 12.658 7.89 5.4 4.826 34.593.4
- 23.8 25 .2 22. 1 22.4 22.7 22.3
- 13.0 12.5 1.5 10.5 9.5 9.0 10.6
- (19.3) (13.1
- 62.85 53.32 54.01 53.42 53.46 55.42
- 13.2 13.4 13.0 12. 1
- 8 2008109 2009110
- 7 24.0 19.7
- 11 20 11112 2012113 2013
- 59 1.73 193
- 42 .0 83.7
- 246. 19 22
- 81 81.3 83.0 84.6 85.9 86.7
- 6447 9.227.4
- 94. 1 95 .4 9 1.3 94. 8 93.6 94.4
- 11.25 12.17
- 317 (56.68
- 22.3 22.6 22.4 22.1 21
Law code
- Oregon Revised Statutes
- Corpus Juris Civilis
- Swiss Civil Code
- building code
- Corporation tax in the Republic of Ireland
Filename extension
pdf
etl_file_b:
1
1
etl_enhance_mapping_id_time_millis_i:
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1
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etl_filter_blacklist_time_millis_i:
0
0
etl_filter_blacklist_b:
1
1
etl_filter_file_not_modified_time_millis_i:
11
11
etl_filter_file_not_modified_b:
1
1
etl_enhance_file_mtime_time_millis_i:
0
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etl_enhance_file_mtime_b:
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etl_enhance_path_time_millis_i:
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etl_enhance_path_b:
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etl_enhance_entity_linking_time_millis_i:
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7217
etl_enhance_entity_linking_b:
1
1
etl_enhance_multilingual_time_millis_i:
2
2
etl_enhance_multilingual_b:
1
1
etl_export_solr_time_millis_i:
2
2
etl_export_solr_b:
1
1
etl_export_queue_files_time_millis_i:
1
1
etl_export_queue_files_b:
1
1
etl_time_millis_i:
50151
50151
etl_enhance_extract_text_tika_server_ocr_enabled_b:
1
1
etl_count_images_yet_no_ocr_i:
0
0
X-Parsed-By:
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- org.apache.tika.parser.pdf.PDFParser
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etl_enhance_extract_text_tika_server_time_millis_i:
21812
21812
etl_enhance_extract_text_tika_server_b:
1
1
etl_enhance_pdf_ocr_time_millis_i:
6
6
etl_enhance_pdf_ocr_b:
1
1
etl_enhance_detect_language_tika_server_time_millis_i:
218
218
etl_enhance_detect_language_tika_server_b:
1
1
etl_enhance_contenttype_group_time_millis_i:
1
1
etl_enhance_contenttype_group_b:
1
1
etl_enhance_pst_time_millis_i:
1
1
etl_enhance_pst_b:
1
1
etl_enhance_csv_time_millis_i:
0
0
etl_enhance_csv_b:
1
1
etl_enhance_extract_hashtags_time_millis_i:
393
393
etl_enhance_extract_hashtags_b:
1
1
etl_enhance_warc_time_millis_i:
6
6
etl_enhance_warc_b:
1
1
etl_enhance_zip_time_millis_i:
1
1
etl_enhance_zip_b:
1
1
etl_clean_title_time_millis_i:
0
0
etl_clean_title_b:
1
1
etl_enhance_rdf_annotations_by_http_request_time_millis_i:
31
31
etl_enhance_rdf_annotations_by_http_request_b:
1
1
etl_enhance_rdf_time_millis_i:
0
0
etl_enhance_rdf_b:
1
1
etl_enhance_regex_time_millis_i:
2342
2342
etl_enhance_regex_b:
1
1
etl_enhance_extract_email_time_millis_i:
1431
1431
etl_enhance_extract_email_b:
1
1
etl_enhance_extract_phone_time_millis_i:
1341
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