Ethiopia’s new development plan hopes to boost economy by 15%

By Tesfa-Alem Tekle

August 11, 2010 (ADDIS ABABA) – Ethiopian Prime Minister Meles Zenawi said on Wednesday that the country’s economy will achieve a 15% economic boost from a new 5-year national development plan.

In a news conference, the premier said the newly introduced the “Growth and Transformation Plan” (GAP) is a very ambitious plan targeted to speed up economic growth of the country. He said, “it might seem unachievable but it is within reach”.

“I think that this is a very ambitious plan but at the very least the base-case scenario is doable,” Meles said.

He noted that to realize the ambitious plan the private sector and the public at large need to put in enormous contributions. The new development plan is designed out of achievements and lessons experienced from the past seven years, he said.

The horn of Africa country has registered an average growth of 11% for the last seven years according to the Ethiopian government.

According to The Economist magazine says the country is the fifth fastest growing country in the world in 2010 and predicts the economy to grow by 7% this year.

Ethiopia insists that it will continue have double digit growth, around 10%.
In 5 years, the agriculture sector will take the leading role in the national economy, Zenawi said, adding that he expected the industrial sector to see an annual 18%.

If Ethiopia meets these targets Zenawi hoped that his country would stop receiving foreign aid within 5 years.

“In the future, we will feed ourselves and we will be able to manage our own forms of social security”, he said.

“I don’t think that is impossible. I think it’s quite achievable over the next five years.”

The new transformation plan will execute a huge expansion of infrastructure. Accordingly, the country’s power production is expected to see a boost to 10,000MW from 2,000MW, mainly powered by hydro-electric power.

Ethiopia also hopes to build 2,395 kms of railway lines during the same period.

(ST)