The Ministry of Trade and Industry is developing a ten year prosperity plan. All federal offices will implement the plan between 2020-2030.
According to the Ministry, the plan has three major goals. To create a digitalized trading system to make trade more efficient, increase the countries export revenue and improve growth rate and develop the manufacturing sector to 20pct of the GDP.
Eshete Asfaw, The State Minister of Ministry of Trade and Industry said, “Developing export oriented productions are planned as one of the key strategic sectors.” These include: textile and garment industry, leather and leather products industry, metal engineering industry, meat, dairy and honey processing industry, chemical and construction inputs industry, agriculture-processing industry, and pharmaceutical industries. At the end of the ten years the ministry has plans to increase export revenue up to USD 20 billion annually.
To achieve an annual average real GDP growth rate of 22 percent within a stable macroeconomic environment and thereby contribute towards the realization of Ethiopia’s vision of becoming a lower middle-income country by 2025focuses on ensuring rapid, sustainable, and broad-based growth by enhancing the productivity of the manufacturing sectors, improving the quality of production, and stimulating competition within the economy.
The ministry is moving to digitalize its system including online trade registration and licensing system, and preparing an “one office service”.
According to Eshate, implementation of the plan will start in 2020, after the end of the Ethiopia’s Growth and Transformation Plan II (GTP II).
Ethiopia’s Growth and Transformation Plan II (GTP II) implement in 2015/16 up to 2019/20 aims to achieve an annual average GDP11 percent growth rate: although the GDP remains less than the plan.
According to the World Bank, Ethiopia’s economy experienced strong, broad-based growth averaging 9.9% a year from 2007/08 to 2017/18, compared to a regional average of 5.4%. Ethiopia’s real gross domestic product (GDP) growth decelerated to 7.7% in 2017/18. Industry, compared to the previous year mainly construction, and services accounted for most of the growth. Agriculture and manufacturing made lower contribution to growth in 207/18. Private consumption and public investment explain demand-side growth, the latter assuming an increasingly important role.
The ministry has plans to get 3.77 billion USD in from export revenue, 2.65 billion USD from agricultural expenditure, 797.1million USD from the manufacturing sector, 265.8 million USD from mining and minerals in 2019/20.
Fed agencies to implement ten year plan
Human Development Report says Ethiopia has work to do
Ethiopia is ranked 173 out of 189 in the 2019 version of the Human Development Index (HDI) placing it at the back of the pack when it comes to the HDI criteria. The Index looks at long-term progress in three human development dimensions: life expectancy, economic standard of living and access to education.
Launched on Tuesday, December 10, 2019 at Skylight Hotel in Addis Ababa under the theme: “beyond income, beyond averages, beyond today: inequalities in human development in the 21st century,” the 2019 Human Development Report (HDP), says, new inequalities are becoming more pronounced particularly around tertiary education, seismic effects of technology and the climate crisis making it harder for those already behind to catch up.
Human development: the Human Development Index (HDI), the Inequality-adjusted Human Development Index (IHDI), the Gender Development Index (GDI), the Gender Inequality Index (GII), and the Multidimensional Poverty Index (MPI). The final section covers five dashboards: quality of human development, life-course gender gap, women’s empowerment, environmental sustainability, and socioeconomic sustainability.
The report, which pioneers a more precise way to measure countries’ socioeconomic progress, notes that life expectancy, has increased by more than 11 years between the years 1990 and 2018 and stress on the need to emphasis on early childhood and lifelong investment including investing in young children’s learning, health, and nutrition to tackle inequality.
“Countries should go beyond income and averages among others to deal with inequalities, it is beyond income. Income and wealth are important measures of inequality; but you have to look at for example of health, of education, of dignity and respect for human rights,” says Turhan Saleh, UNDP Ethiopia Resident Representative.
“If inequalities in human development persist and grow the aspirations of the 2030 Agenda for Sustainable Development will remain unfulfilled,” the report further stressed.
Inequalities in human development are a defining bottleneck in achieving the 2030 Agenda for Sustainable Development. Inequalities in human development are not just about disparities in income and wealth.
The most recent survey data publicly available for Ethiopia’s MPI estimation refer to 2016. In Ethiopia, 83.5 percent of the population (87,643 thousand people) are multidimensionally poor while an additional 8.9 percent are classified as vulnerable to multidimensional poverty (9,322 thousand people). The breadth of deprivation (intensity) in Ethiopia, which is the average deprivation score experienced by people in multidimensional poverty, is 58.5 percent
Policy choices determine inequality outcomes – as they do the evolution and impact of climate change or the direction of technology, both of which will shape inequalities over the next few decades. Inequalities in human development hurt societies and weaken social cohesion and people’s trust in government, institutions and each other. They hurt economies, wastefully preventing people from reaching their full potential at work and in life.
Doraleh Port starts dry bulk service
Doraleh Multipurpose Port (DMP) and SDTV Bulk Terminal will begin serving dry bulk importers.
The newly built and ultra-modern Doraleh Multipurpose Port and SDTV Dry Bulk Terminal, an experienced private concessionaire with a concession agreement of 30 years, with 18 years remaining, are offering their expertise and infrastructure to uphold Djibouti Ports’ competitiveness towards the growing competitiveness of regional ports.
Both terminals (DMP and SDTV) are handling dry bulk cargos and recording increasing volumes at an unparalleled performance level in the region. This upward trend is meant to further increase in the upcoming years.
A total volume of 3, 371, 196.38 tons of dry bulk cargo, has been handled by the two ports since January to date. This represents an increase of 7% compared to the same period last year and a 44% increase compared to 2017. This steady growth will continue with an estimated total volume expected to reach 3.7 million tons at the end of this year.
Tadjourah Port, another new dedicated port with a depth of -14.5 meters, will offer a third viable option for dry bulk importers and exporters. With the connecting road completed, this new facility is well positioned to serve hinterland and could accommodate vessel of up to 80,000 DWT.
To achieve higher performances and seamless movement of cargo transiting to the hinterland, these ports will target excellence through the advantage of a positive, fair and free competition, in order to serve the country’s vision to consolidate its geostrategic location.
Oromia Insurance rise continues
Oromia Insurance Company (OIC) has secured over 92-million-birr gross profit for the 2018/19 financial year, while its asset surpassed one billion birr.
The profit registered for the year has increased over 13 percent compared with the 2017/18 year.
A year ago the gross profit before tax of the insurance company was 81.5 million birr. According to the annual financial report of OIC in the 2018/19 financial year it has amassed 87.3 million birr net profit after tax with increment of 20 percent compared with a year ago.
The total gross claims paid as at June 30, 2019, which is the end of the financial year, was 181.8 million birr while that of the last year’s corresponding period was 178.1 million birr. The annual report indicated that the net claims paid for the period under consideration was 158.5 million birr out of which claims paid for motor class of business constitutes 92.7 percent. High claim settlement for motor class is common on the sector.
At the same time the report indicated that the Company’s net claims incurred during the period under review were 206.7 million birr that is lifted by 12 percent or 22.2 million birr compared with the previous year.
For the stated period OIC has collected over 434 million birr gross written premium with 12.4 percent increment compared with the 2017/18 financial year. A year ago the gross written premium was 386 million birr.
Gross written premium income of life insurance business as at June 30 this year has reached 8.3 million birr, with the growth of 32.2 percent as compared with a year ago.
As of June 30 the company gross written premium that includes all classes of insurance like life an micro reached 452.4 million birr.
The paid up capital of the company has reached at quarter a billion birr with the increment of 53.6 million birr or over 27 percent compared with the preceding year.
As investment is one of the business directions for the insurance business OIC has been also expanded its investment on non insurance businesses. For the closed budget year the company investment has reached at 117.4 million birr with the increment of 24 million birr.
The total asset of OIC has reached at 1.14 billion birr that has increased by almost quarter a billion birr or 30 percent compared with a year ago performance. The company that expanded its capital to 250 million birr has registered the earning per share of 390 birr per a single share that is 1,000 birr. Despite the net profit registered increment and at the same time it has boosted its capital the earning per share has showed slight decrement compared with 410 birr of a year ago that it 4.9 percent higher than the reported period.
The company has totally 47 outlets including 6 contact offices throughout the country.
