Economic gains under the leadership of EPRDF

The past successive regimes have consistently failed to transform the country's economic, social and political conditions. They instead heedlessly ruined the fabric of the society. Brave sons and daughters of the nation who could not bear the utter devastation and suppression therefore rose up to bring about a system change. As the fighters succeeded in rallying the people behind them they not only broke the fetters of slavery but also created suitable condition for the development of the country. Encouraging results have as a result been registered in education, health, agriculture and other sectors during the last 16 years. The agriculture and rural centered economic policy has borne fruit under the matured leadership of EPRDF. Let us briefly see the gains in some of the sectors.

1. Education

Modern education started in Ethiopia in 1906. During the reign of Emperor Menelik, the main purpose of education was to produce manpower to the government bureaucracy. But since there were few schools, priority in education was given to the children of the Lords and chiefs, 

Education did not at the time show much progress. At the end of 1990, the number of educational institutions in the country was:-

            -  284               Secondary schools.

            -   17                Vocational and technical training institutes

            -    2                 Universities 

            -    8,434          Primary schools with 2,063,635 students  

            Education coverage was 19.6%.

After the overthrow of the military regime, the EPRDF- led government devoted so much of its energy and resource that the sector has scored encouraging results in education at impressive results at all levels.

As a result education coverage has increased fivefold. Currently the country has:-

-          19,412        Primary schools

-               835        Secondary schools

-               161        Preparatory schools

-               119        Vocational and technical training institutes

-                 22        Universities

Education coverage has grown from 19.6% in 1990 to 91.3%. Beyond this the policy addresses the question of fair distribution of education.

2. Health

The provision of health service was very limited in the country over the past years. At the end of 1990, Ethiopia had 89 hospitals and 157 health centers. There were 3,575 nurses, 389 health officers, 377 pharmacists and 1,945 assistant health officers (the figure included the Eritrean province).

After EPRDF came to power, it designed a National Health Policy based on democratic and decentralization principles. Due to this the number of professionals in the sector is expected to reach 24,718 in the middle of 2008. The health service coverage is also expected to reach 100% in 2009.

Currently all regions have medium health professional training centers. In 1990 there were only three (3) higher health professional training institutions and universities. At present there are 18 of those institutions with enrollment capacity of 12,000 students in a year. In the 1990s the intake capacity was 700.

Ethiopia has 14 pharmaceutical factories and 128 pharmaceutical and medical equipment importers. The capital budget which was 3.3% in 1991 also grew to 12.8% in 2004.

At national level 1,005 health institutions are working to prevent HIV/AIDS by providing voluntary counseling and testing services. Some 2.5 million people have benefited from the services between 2005 and 2007.

 3. Potable water

At the end of 1991, 2.73 million urban dwellers got potable water. People residing in rural areas had limited access to drinking water. Due to the attention given to the sector by the EPRDF-led government however a holistic program was designed. The government has accordingly set certain programs and strategies that raise the potable water coverage of urban and rural areas to 100% and 98% respectively by 2012.

 Currently, 25.39 million rural and 9.58 million urban residents of the country are beneficiaries of the service. In percentage terms, 78% urban, 41.2% rural inhabitants and 47% of the country's total population access potable water.

 4. Irrigation

At the end of 2006/07 fiscal year, 346.3 thousand hectares developed through irrigation method benefited 1.33 million people. Additional 82,629 hectares were developed through medium and large scale irrigation in same budget year. At present three large and a medium irrigation projects are developing 107,420 hectares.

 5.  Agriculture

In order to increase the productivity of peasants and pastoralists, the Ministry of Agriculture and Rural Development has established 25 agricultural and technical colleges between 2004 and 2007. Those institutions graduated 49,435 Development Agents who have been started providing close assistance for farmers. In addition, 7,400 peasant training centers were founded at kebele levels.

 Speaking in figures

-          306 million quintals produce is expected in 2008 thus exceeding the harvest collected last year by 100 million quintals.

-          Agricultural export generated 787.9 million USD in 2006/7.

-          Agricultural investment created 155,000 jobs.

-          Capital investment in the sector hit 160 million birr.

-          The agricultural extension program launched in 2002 with 32,047 farmers embraced 5 million in 2006.

-          In 2007 over 125 million USD was earned from flower export.  

-          Vegetables and fruits were cultivated on 700,000 hectares

-          The Horticultural Producers and Exporters Association earned over 1.5 billion USD over the past five years.

-          Over 100 investors are involved in horticulture.

6. Investment

Large scale investment was unthinkable during the former regime. Local investors were not allowed to acquire over 500,000 birr capital. After the fall of the Derg, EPRDF introduced free market economy which enabled Ethiopia to become one of the highly investment attracting country in Africa.

Due to the realization and implementation of the free market economy principles, 24,506 investment projects with gross capital of 307,839,636,200 birr have become operational. Out of these, 21,289 projects owned by local investors and with 164,772,923,000 birr capital and 3,128 projects with 103,168,720,200 birr capital belonging to foreign investors as well 89 government projects with 39,897,933,040 birr capital are functioning in the country. These projects have created permanent and temporary jobs to 3,050,600 citizens.

 6.1 Alternative investment opportunities

          6.1.1 Agriculture

 Three quarter of Ethiopia's land (73.6 million hectares) is suitable for agriculture. Yet only 16.5 million hectares have so far been used. Investors which engage in the sector could therefore draw a lot of benefit. The country's strategic location to European and Middle Eastern countries also creates market advantage in addition to its ideal climate.

 6.2 Animal husbandry

Ethiopia’s animal population ranks the country as the first in Africa and the 10th in the world. country has 41 million livestock, 25 million sheep and 23 million camels. But the benefit it gets from this sector is insignificant. Investors interested in exporting live animals, meat and the like can therefore easily succeed in their venture.

 7. Manufacturing

In Ethiopia, the manufacturing industry is very profitable, especially in areas of:-

-          Textile

-          Leather and leather products

-          Food

-          Drinks

-          Pharmaceutical and medical equipment

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