Nigatu Wolde
Putting PP’s self -proclaimed “miraculous achievement ” and “Ethiopia rising narrative” aside,
which in itself is not necessarily a bad thing, Ethiopia’s economy is grappling with a host of
underlying issues masked by recent bonanza in export proceeds and beefed -up forex reserve,
whose sustainability is questionable, owing to low productive capacity in productive sectors :
manufacturing and agriculture, and a paradoxical decrease in inflation where relative prices
have declined but cost of living went on the roof. Such is a situation where citizens, particularly
those in the lower end of the income quintile who constitute majority are struggling to meet
their basic ends, are barely coping with the aftermath of IMF -World bank mandated
liberalization drive . Of course, the government does not buy such characterization and argue s
it is homegrown informed by available wisdom elsewhere, as expounded by the Prime
Minister’s recent interview, in June 2025 , with the state TV station.
Ethiopia’s economic growth mirage or real
For ordinary citizens asking whether the growth narrative , by past or present governments , is
only natural as for them if the growth narrative is real, it should be reflected in improving their
living standard -rightly so. Beyond that, even for astute economists who have a better grasp of
how growth is estimated, Ethiopia’s growth narrative by successive governments find it
intriguing. It has to do with the numbers and how they are generated ፤ rather crunched and
used to estimate growth, which is a subject of controversy among the government ,
independent institutions , and economists alike . One may say that “it is the statistics stupid ”,
which much explains the growth narratives without being translated into relieving the burden
cost of living which is the primary concern of citizens .
In his interview with EBC, cited above, which touched up on a wide range of issues, the Prime
Minister warned Ethiopians “to seize the opportunity to use wisely , i.e.,the miraculous growth
witnessed in the past six years lest we may slide back with dangerous repercussions. ” For this
“miraculous growth ”he singled out the export sector performance in 2024/25 as an indicator,
which he said is nearly $8 billion and compared it with the total export the country earned
between 1992 and 2006 amounting to $7.5 billion (according to World Bank, this figure
amounts to $16.05 billion) . In this interview he defended his government’s achievement in
implementing the homegrown economic reform agendas which come to a full circle through
unification of the official and market forex rates, back in July 2024.
If Ethiopia’s growth is as expressed by the Prime Minister and other PP officials and they would
like us to believe that, why are citizens sliding back from where they were and struggling to
meet their basic needs? Why are even the relatively better off who used to enjoy a middle –
income status joining the lower income category and those in the lower income category
sliding further downward? Why is having egg as breakfast becoming nostalgia while the
growth narrative churns numbers in billions in terms of chicken and egg production? If wheat
production is as reported in various meetings and Ethiopia is among the top whe at producing
countries, why would loaves of bread barely satisfy a toddler and the price of which skyrocketed
to 10 Birr as the standard 100 gram declining continuously? Why is the number of individuals
receiving handouts from PP officials including the Prime Minister all the way down to woreda
officials under a policy banner of “sharing food” , during holidays increasing and proudly
announced by state media ? The list can go on. Such practical questions need to be answered
if there is anything to believe about the growth numbers churned out in masse. Certainly, these
are not the signs of prosperity.
Sacrifice is necessary for Ethiopia’s prosperity
When pressed hard on the validity of the growth narratives and the tough times citizens are
going through with such practical questions, PPauthorities turn to their patriotic mode-citizens
need to pay sacrifice if the country is to see the light of prosperity. Sounds logical right? But
What is the extent of sacrifice and who will bear the brunt of the sacrifice ? Given the cost of
living today, it is a no brainer to see the brunt of the burden of misguided economic policy
actions pushed down to our throat b y international financial institutions, and misplaced
priorities are squarely placed on the poorest of the poor, without adequate safety valves. For a
government who claims to be citizen oriented and sometimes utter the tenets of social justice –
though wrongly equating it with giving handouts during holidays, it shows how oblivious the
The government is to the misery of the poor.
The corridor development mantra
When PP miserably failed on delivering on its election manifesto to build 1 million housing
units announced in a fanfare event with a South African based real estate developer during the
eve of the 6 th general election, they never mentioned about that signing ceremony since and
resorted to rebuilding dilapidated housing units for vulnerable individuals -not necessarily a
bad thing in itself-but mostly carefully choreographed to build the image of the official involved
through media coverage, presented with a nice photo op opportunity and massively
distributed communication outlet. Whether such protracted efforts will relieve the problem of
the poor is a question that does not cross the PP officials’ mind as they are concerned with the
publicity.
Then came a corridor development agenda out of blue, which transformed the city of Addis
Ababa but also resulted in massive displacement of citizens from their social fabrics and
economic networks. As if the urban corridor development, which displaced residents in mass
is not enough, the same agenda is being pushed to rural corridors as priority and all
simultaneously . Never mind these rural villages have no potable water, health centers
accessible road that link them to their nearest administrative seat, market centers where they
can transport their produce. In translating the policy into action, even the otherwise considered
Model villages in Gurage areas known locally as “Jefore” are not spared from being ploughed .
Don’t get me wrong! I am not against the ongoing urban corridor development , for that matter
rural development as well, nor the development of tourism destinations across the country.
Certainly not the announcement of gas production and fertilizer manufacturing plants. Rather
the ones that came late should have been at the forefront of the government’s implementation
plan. Above all, development initiatives should have been well conceived, prioritized,
sequenced, within the limits of the means to implement them- not by burdening the present
generation beyond its capacity as well as borrowing from the future ones.
Editor’s Note : Views in the article do not necessarily reflect the views of borkena.com
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