The Federal Democratic Republic of Ethiopia

1 The Federal Democratic Republic of Ethiopia 20 n e ie 15. br d m In ve an no c . 20 l'O. le de .fr tre ce et en a L. The Second Growth and Transformation Plan (GTP II). llig L. te e (2015/16-2019/20). In if d (Draft). ca s fri clu r A ex su ent bl um pu oc i . D. National Planning Commission September 2015. Addis Ababa Table of Contents Chapter Page 20 n INTRODUCTION .. 1 e ie 15. PART I OVERVIEW OF PERFORMANCES UNDER GTP I .. 2 br d m In (2010/11-2014/15) .. 2 ve an OBJECTIVES AND BASIC STRATEGIES OF GTP I .. 3 The main basis for the Growth and Transformation Plan (GTP I).

2 3 no c . The main objectives of the first Growth and Transformation Plan (GTP I) .. 3 Strategic Pillars of the first Growth and Transformation Plan (GTP I) .. 3 20 l'O. MACROECONOMIC PERFORMANCES OF GTP I .. 4 Economic Growth .. 4 le de Saving and Investment .. 6 Fiscal Policy and Public Finance .. 6 .fr tre Monetary Policy and External Sector .. 7 PERFORMANCES OF MAJOR SECTORS .. 7 ce et Agriculture and Rural Development .. 7 en a L. Industrial Development .. 8 PERFORMANCES OF ECONOMIC INFRASTRUCTURE .. 10 llig L. Energy .. 10 te e Railway Infrastructure.

3 11 In if d Road Infrastructure .. 11 Telecommunication .. 11 ca s PERFORMANCES OF SOCIAL SERVICES .. 12 fri clu Education Sector Development .. 12 Health Sector Development .. 12 r A ex CAPACITY BUILDING AND GOOD GOVERNANCE .. 13 su ent KEY CHALLENGES DURING GTP I IMPLEMENTATION .. 14 Inflation .. 14 Development Finance .. 14 bl um PART II OVERVIEW OF THE SECOND GROWTH AND TRANSFORMATION PLAN (GTPII) .. 15 pu oc (2015/16-2019/20) .. 15 i . D. BASES OF GTP II .. 16 OBJECTIVES OF GTP II .. 16 STRATEGIC PILLARS OF GTP II .. 16 IN ORDER TO ACHIEVE THE OBJECTIVES OF GTP II SET OUT ABOVE, THE FOLLOWING PILLAR STRATEGIES WILL BE PURSUED.

4 16 Maintaining rapid, sustainable and equitable economic growth and development .. 17 Improve the quality, productivity and competitiveness; and increase the production capacity of productive sectors to reach the potential production capacity of the economy .. 17 Enhancing the transformation of domestic private sector .. 17 Expand the accessibility and ensure the quality of infrastructure development through strengthening the implementation capacity of the construction sector.. 18 Fostering the governance and management of rapid urbanization to accelerate economic growth.

5 18 Accelerating and ensuring the sustainability of Human Development and Technological Capability .. 19 Promote Democratic and developmental good governance through enhanced implementation capacity and public engagement.. 19 Promote women and youth empowerment, participation and equity .. 20 Building climate resilient green economy .. 20 REAL SECTOR AND PRICES .. 21 FISCAL POLICY .. 22 MONETARY POLICY AND EXTERNAL SECTOR .. 22 PROJECTION SUMMARY OF MAJOR TARGETS FOR GTP II .. 23 20 n ECONOMIC SECTORS .. 27 e ie 15. Agriculture and Rural Transformation.

6 27 br d Industrial Development and Structural Transformation .. 28 m In Mining Sector Development .. 30 ve an Economic Infrastructure Sector .. 31 Construction Industry Development .. 37 no c . Urban Development and Housing .. 38 20 l'O. Trade .. 39 Culture and Tourism .. 40 HUMAN DEVELOPMENT AND TECHNOLOGY CAPACITY BUILDING .. 41 le de Education and Training .. 41 Health sector development .. 42 .fr tre Science and Technology Development .. 43 ce et CAPACITY BUILDING AND GOOD GOVERNANCE PLAN .. 44 PUBLIC PARTICIPATION, STRENGTHENING Democratic SYSTEM AND NATIONAL CONSENSUS.

7 44 en a L. WOMEN CHILDREN AND YOUTH DEVELOPMENT .. 46 SPORT SECTOR DEVELOPMENT .. 46 llig L. SOCIAL WELFARE AND LABOR AFFAIRS .. 47 te e ENVIRONMENTAL PROTECTION AND BUILDING GREEN ECONOMY .. 48 In if d CHAPTER V OPPORTUNITIES, THREATS AND RISK MANAGEMENT STRATEGIES .. 49 ca s fri clu OPPORTUNITIES .. 49 50 r A ex RISK MANAGEMENT STRATEGIES .. 50 CHAPTER VI MONITORING AND EVALUATION OF GTP II .. 51 su ent bl um Tables pu oc Table 1. GDP growth rate by major economic sectors (%) .. 4. i . D. Table 2. Trends in the structure of GDP by major sectors.

8 5. Table 3. Projected Trends of GDP Growth Rate (%) .. 21. Table 4. Projected Percentage Share of GDP by Industrial Origin (%) .. 22. Table 5. Projection summary of major targets (Macro and Sectoral) of GTP II .. 23. 2 Introduction Five years ago Ethiopia embarked on a bold journey of growth and transformation. The preparation and launch of the First Growth and Transformation Plan (GTP I) marked a key point of departure on the road of Ethiopia 's growth and transformation. Its vision, bold targets and the design of relevant polices and strategies to realize those goals galvanized and inspired the nation.

9 Past development outcomes combined with the motivating and mobilizing power of GTP I became a great force for accelerating its implementation. 20 n e ie 15. br d As a result, committed Government and Ethiopians across the country contributed and enhanced the m In implementation of defining programs and projects of GTPI. These efforts helped GTP I performance to take ve an Ethiopia to a new height. no c . Ethiopia sustained rapid, broad based and equitable economic growth, increased investment in 20 l'O. infrastructure, human development and institution building to underpin Ethiopia 's long term transformation.

10 Le de Institutions to lead and support as well as various measures are under implementation to drive the progress towards industrialization..fr tre ce et This report contains two parts. The first part discusses the overview of the implementation of GTP I. The en a L. second part provides the objectives basic strategies and goals of GTP II. llig L. First, however, reminding the reader regarding the overall objectives, goals and pillar strategies of GTP I is te e In if d in order. ca s fri clu r A ex su ent bl um pu oc i . D. D. pu oc bl um i.