Parliament approves $13.4 billion 2019/20 budget

9 Jul 2019

The Ethiopian Parliament approved a $13.4 billion budget proposed by the Council of Ministers for the 2019/20 fiscal year that began on 8th July.

$3.79 billion will fund the operating budget, $4.53 billion will be for capital expenditure and $4.876 billion for subsidies to regional states. Another $207.95 million will be used to implement Sustainable Development Goals (SDGs) projects.

Compared to the $12.02 billion approved for the 2018/19 fiscal year, this year’s budget is 12% higher. The government says it will increase investments in key sectors such as agriculture, energy and mining. It also plans to attract more Foreign Direct Investment (FDI).

Responding to questions raised by members of the parliament on the allocation of the budget, Prime Minister Abiy said the government has put aside a budget for labour-intensive agricultural, industry, mining and other related mega projects to create more employment opportunities for the youth.

PM Abiy responds to questions raised by members of the House of People’s Representatives on the proposed budget

He added that the government would prioritise reducing inflation through modernising the logistics system and taking measures against artificial price hikes.

The PM also stressed the need to use local knowledge and address Foreign Direct Investment (FDI) barriers.

The PM said the country’s foreign exchange reserve has increased by $1 billion compared to the preceding year.

…three million jobs to be created

Prime Minister Abiy also announced plans to create three million jobs and send professionals to the Middle East and Europe to receive training.

“Ethiopia is planning short-term measures to reduce unemployment in Ethiopia and to cope with the increasing job demands…such as sending our skilled labour to foreign countries,” Prime Minister Abiy told parliament.

Under the deal, 50,000 workers will be sent to the United Arab Emirates (UAE) in the 2019/2020 fiscal year, and discussions were being held to send 200,000 over the next three years.

The workers would receive training in various sectors, including driving and nursing, earn higher wages and “boost their capacity”, the Prime Minister said.

Discussions are underway about similar agreements with Japan and European nations, he said, adding that the economy would be aided by a young skilled workforce that was trained abroad.

In related news, the Ethiopian Industrial Parks Development Corporation announced that it has created permanent employment for more than 50,000 people over the past 11 months. More than 30,000 temporary employment opportunities were also created.

Latest News

Browse all
The first Ethiopian Diaspora Festival since the establishment of the Ethiopian Diaspora Agency is set to take place in Addis Ababa between 27-29 August 2019. All Ethiopian community members in the United Kingdom are invited to join diaspora from around the world to attend the Festival.
26 Jul 2019
Ethiopian Diaspora Festival 2019
Ethiopia's Prime Minister Abiy Ahmed is among nominees for the 2019 Chatham House Prize, presented to the person, persons or organization deemed to have made the most significant contribution to the improvement of international relations. Other nominees are Sir David Attenborough and Katrín Jakobsdóttir.
19 Jul 2019
Prime Minister Abiy among Chatham House Prize 2019 Nominees
Much to the chagrin of most Ethiopians, as well as Ethiopia’s development partners, an attempted coup took place on the 22 June 2019 in Bahir Dar, the capital of the Regional State of Amhara. Five officials were killed in the foiled coup, led by the ringleader Brigadier General Asamenew Tsiege.
16 Jul 2019
A shortcut to power is a wrong cut to power
London hosted government ministers and officials, the diplomatic community, journalists, academics and members of civil society, in the first-of-its-kind Global Conference on Media Freedom. Ethiopia was represented by Ambassador Fesseha Shawel and Press Secretary at the Prime Minister’s Office, Billene Seyoum.
12 Jul 2019
Ethiopia takes part in first Global Conference on Media Freedom
Parliament approved a $13.4 billion budget for the 2019/20 fiscal year that began on 8th July. Compared to the previous budget year, this year’s is 12% higher. The government says it will increase investments in key sectors such as agriculture, energy and mining. It also plans to attract more FDI.
9 Jul 2019
Parliament approves $13.4 billion 2019/20 budget
Around 17 British energy companies will be visiting Ethiopia from 14th – 19th July as part of the Energy Catalyst Mission. The key objectives of the mission are to help companies applying for Energy Catalyst Round 7 to obtain an understanding of the energy access issues in Ethiopia and gain links to potential partners.
8 Jul 2019
British energy firms visit Ethiopia to explore opportunities
State Minister of Finance, Eyob Tekalign Tolina, announced plans to grant two telecom licences to private firms and sell a 49% minority stake in Ethio Telecom – a venture that will see foreign multinationals entering one of Africa’s largest markets. The firms are expected to enter Ethiopia’s telecoms market by 2020.
7 Jul 2019
Ethiopia opens telecoms market to foreign investment
On 29th June, the Embassy hosted an exclusive event celebrating Ethiopian food and culture with renowned Ethiopian chef and Guild of Food Writers nominee, Yohanis Gebreyesus Hailemariam, in the presence of Ethiopian Ambassador to the United Kingdom, His Excellency Fesseha Shawel Gebre, and around eighty guests.
5 Jul 2019
Chef Yohanis: Putting Ethiopian Food on the Culinary Map
Coca-Cola highlights Ethiopia’s investment potential in new campaign. The Going Big in Ethiopia campaign features companies engaged in coffee, textiles, logistics, manufacturing and other industries, talking about the vast opportunities the Ethiopian economy offers to global investors.
28 Jun 2019
Going Big in Ethiopia
Ethiopian Airlines, was voted the ‘Best Airline in Africa’ (for the third consecutive year), ‘Best Business Class in Africa’ and ‘Best Economy Class in Africa’ at the 2019 Skytrax World Airlines Awards. On 21st June the airline marked its 6-month anniversary of the direct flight from Manchester to Addis Ababa.
26 Jun 2019
Ethiopian Airlines voted ‘Best Airline in Africa’ + Manchester celebrates 6-month anniversary
In their first adventure together, Freddie Flintoff, Chris Harris and Paddy McGuinness head to Ethiopia, where they drive through stunning landscapes of Ethiopia to reach the Afar Triangle - the hottest place on earth! Top Gear Producers and presenters said that filming in Ethiopia was the “highlight” of the series.
25 Jun 2019
Top Gear: Ethiopia episode highlight of the series