KEYIR NEWS:- In a sweeping address to Parliament, Prime Minister Abiy Ahmed (PhD) presented his administration’s performance report for the 2024/25 fiscal year, defended controversial policies, and laid out the government’s vision ahead of the proposed 1.98 trillion Birr federal budget approval for 2025/26.
The session was marked by a mix of heated exchanges, light-hearted moments, and serious warnings, as MPs questioned the administration’s economic direction and political posture amid public discontent and regional tensions.
Economic Performance and Policy Defense
Abiy highlighted a significant leap in export revenues, reporting $3.5 billion from gold alone, up from just three tons to 37 tons this year. He announced Ethiopia will begin exporting natural gas in partnership with Chinese investors once Parliament reconvenes from recess. The move, he said, reflects gains in mining, agriculture, manufacturing, and construction.
He also revealed that the state-owned Commercial Bank of Ethiopia (CBE) was bailed out from 900 billion Birr in debt, attributing the recovery to his administration’s economic reforms.
However, the Prime Minister acknowledged that the country’s income tax base remains alarmingly low. “Federal income tax revenue is less than half a percent of GDP, compared to 14 percent in Kenya,” he said. Despite this, 60 percent of government revenue still comes from registered taxpayers—of whom 46,000 pay no taxes at all. He added that 63 percent of registered businesses also evade taxes.
Revenue Minister Aynalem Nigussie reported that domestic revenues reached 815.34 billion Birr—96 percent of the annual target and a 48 percent year-on-year increase.
Budget and Public Discontent
The proposed budget earmarks 1.2 trillion Birr (61.4%) for recurrent spending and 415 billion Birr (21.6%) for capital expenditure. Amid ongoing economic strain, particularly for salaried workers, Abiy defended his investment-led development strategy, calling the hardship a “necessary trade-off” to finance long-term capital formation. He clarified that while inflation has fallen to 14 percent, cost of living pressures persist.
An opposition MP challenged the Prime Minister on the delayed implementation of pro-poor policies, citing rising living costs that have triggered dissatisfaction in sectors like healthcare. “The government must begin to walk its talk,” the MP urged.
Addis Abeba, Housing, and Infrastructure
Abiy passionately defended ongoing corridor projects in Addis Abeba, saying the capital has suffered from “a century of neglect and grime.” He claimed the city generates 50 percent of the national GDP—a figure higher than most official estimates—and argued that investing in the capital equates to investing in the national economy. The city’s administration reportedly financed the first 40km phase of the project independently, with the second phase extending 132km and displacing some residents, who will receive five billion Birr in compensation.
Addressing Ethiopia’s housing crisis, Abiy called it the nation’s “most significant deficit,” stating that one million units have been completed, with another 160,000 under construction. He also announced plans to equip homes with solar power, restrooms, and biogas systems.
Geopolitics and the Push for Sea Access
In one of the more contentious moments, MP Ashebir Weldegiorgis (MD) proposed rerouting major rivers like the Nile to gain access to a seaport—a suggestion met with laughter in Parliament. While dismissing such ideas, Abiy reiterated Ethiopia’s pressing need for sea access due to its geography and demographics. “Ethiopia cannot remain landlocked forever,” he said, vowing to pursue access through peaceful negotiations rather than force.
He insisted, “Not a single bullet will be fired,” amid growing fears of renewed hostilities with Eritrea. His comments come in the wake of a strong rebuke from Eritrea’s Ministry of Information, which accused Addis Abeba of fabricating provocations and harboring “unlawful ambitions.”
Abiy rejected these accusations, stating, “We want to plant seeds of cooperation, not conflict. But Ethiopia is also ready to defend itself.”
Calls for Peace and Political Reflection
In a rare appeal, the Prime Minister urged elders, businesspeople, and the diplomatic community to initiate peace mediation efforts with Tigray’s leadership, warning that delay could lead to renewed war. “It won’t do good if your efforts come too late,” he cautioned Parliament.
He lashed out at what he called “lazy and self-serving” politicians who he accused of “stoking fires” to enrich themselves. He described them as “firehawks,” whose interests lie in perpetual instability.
Abiy also drew a metaphorical comparison between his political opponents and Nokia, the once-dominant Finnish tech company, accusing them of failing to adapt. “They remain mechanical in a digital era,” he said, positioning his leadership as forward-looking.
The Prime Minister maintained that while Ethiopia enjoys relative peace, long-term stability remains elusive. He cited persistent power struggles, ethnic violence, foreign interference, and deep-rooted political mistrust as enduring threats. He acknowledged the staggering number of displaced people—4.5 million according to IOM data—but noted that 3.3 million have returned to their homes since 2022.
The parliamentary session, at once theatrical and sobering, offered a rare window into the internal tensions shaping Ethiopia’s political and economic trajectory. As the country braces for another fiscal year, the Prime Minister has laid out a roadmap marked by ambitious infrastructure, bold diplomacy, and cautious optimism—while critics demand action over rhetoric.