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Economic policy of Ethiopia
Some Highlights
Nov, 2017
Bahir Dar
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
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 ;
Cont…
 Land policy
 Market expansion
 Encouraging private investors
 Infrastructure development
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
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)
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
Cont…
 Supporting industries with research and innovation( for
instance the textile research institute)
 Considering long term loans for the industry sector
THANK YOU FOR YOUR ATTENTION!!!

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Economic policy of ethiopia ppp

  • 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!!!