Highlights on the Economic policy of Ethiopia

1. Economic policy of Ethiopia
Some Highlights
Nov, 2017
Bahir Dar

2. 1. Development strategy
 ADLI –Based on 5 years strategic plan
 Labour intensive development strategy
 The development should be led by the agriculture sector
 Linked with industry

3. 1.1. Agricultural development strategy
 Rural and Agriculture based
 85% of the population in the sector
 Increasing the purchasing power of the agricultural
sector( which in turn motivates the non agricultural
sectors )
 The major focus areas were ;

4. Cont…
 Land policy
 Market expansion
 Encouraging private investors
 Infrastructure development

5. 1.2.Industrial development strategy
 Beyond being food self sufficient , the agriculture
sector has to be a source for raw materials
 Agriculture _ industry linkage (agriculture based
industries, as flour industries, textiles and others)
 Expanding industry villages

6. GTP I
 For the first 5 year strategic plan
 Improving the economy and their by transforming the
sector to industrialization
 Market linkage for the surplus agriculture produces ( i.e.
maize and Tef)

7. GTP II
 The second 5 years strategic plan
 Based on lessons of GTP I the following aspects
were included in the plan
 Trade policy (being competitive in the international
market
 Tax free on imported raw materials for exporters
 Subsidizing industrialists

8. Cont…
 Supporting industries with research and innovation( for
instance the textile research institute)
 Considering long term loans for the industry sector

9. THANK YOU FOR YOUR ATTENTION!!!