Ethiopia is gearing up for a big year! The government just unveiled its national development plan for the 2025/26 fiscal year, and it's all about creating jobs and getting the economy in top shape.
Planning and Development Minister Fitsum Assefa (PhD) shared the exciting news: the country aims to generate a massive 5.6 million job opportunities. This isn't just about jobs at home; Ethiopia is also looking to expand its reach, sending skilled workers to eight countries, up from the current five. About 800,000 of those new jobs are expected to be overseas placements. To make sure Ethiopians are ready, there will be a big push for vocational training and better coordination with international job markets. The plan emphasizes dignified and sustainable employment, with strong support for micro and small businesses through 48 billion birr in loans.
On the economic front, a major focus for 2025/26 is tackling inflation, with the goal of bringing it down to single digits. The government is planning to collect 1.5 trillion birr in revenue, mostly from taxes, and is introducing new measures like a minimum alternative income tax and a modern excise tax stamp system to boost efficiency. The budget is set at 1.928 trillion birr, and encouragingly, the government aims to avoid borrowing from the National Bank, financing deficits through market borrowing instead to keep inflation in check. There's also a strong commitment to improving foreign exchange supply and promoting efficient budget management across regional and city administrations.
It's clear that Ethiopia is setting ambitious targets for the upcoming year, aiming for significant economic growth and widespread job creation while maintaining fiscal discipline.