Federal Democratic Republic of Ethiopia

Growth and Transformation Plan (2010/11-2014/15)

Annual Progress Report for F.Y. 2010/11

Ministry of Finance and Economic Development

June 2012

Addis Ababa

TABLE OF CONTENTS

LIST OF TABLES ........................................................................................................................................... iii

INTRODUCTION ........................................................................................................................................... 1

EXCUTIVE SUMMARY ............................................................................................................................... 3

1. Macroeconomic Performance ....................................................................................................................... 3

2. Economic Sector Performance ..................................................................................................................... 5

3. Infrastructure development ........................................................................................................................... 7

4. Social development....................................................................................................................................... 7

5. Capacity building and good governance ....................................................................................................... 8

6. CROSS CUTTING ISSUES ......................................................................................................................... 9

7. MONITORING AND EVALUATION SYSTEM ....................................................................................... 9

8. Summary of macroeconomic and main sectoral level performances ......................................................... 10

CHAPTER I MACRO ECONOMIC PERFORMANCE ............................................................................... 13

1.1 Gross Domestic Product and Price ............................................................................................................ 13

1.2 Welfare and Poverty ................................................................................................................................. 16

1.3 Fiscal Policy and Public Finance Performance ......................................................................................... 17

1.4 External Finance Flows and Debt Management ....................................................................................... 21

CHAPTER II ECONOMIC SECTOR ........................................................................................................... 30

2.1 Agriculture Development .......................................................................................................................... 30

2.1.1 Production and Productivity .......................................................................................................... 30

2.1.2 Natural Resource Conservation and Utilization ............................................................................ 33

2.1.3 Disaster Prevention and Preparedness ........................................................................................... 33

2.1.4 Private Sector Participation in Agriculture ................................................................................... 34

2.1.5 Food Security ................................................................................................................................ 34

2.2 Industry Development ............................................................................................................................... 35

2.2.1 Small and Micro Enterprise Development .................................................................................... 35

2.2.2 Medium and Large Scale Manufacturing Industry ........................................................................ 36

2.3 Performance of the Trade Sector ...................................................................................................... 44

CHAPTER III: INFRASTRUCTURE DEVELOPMENT ........................................................................ 48

3.1 Road Development .................................................................................................................................... 48

3.2 Rail way Development .............................................................................................................................. 51

3.3 Energy Development ................................................................................................................................ 51

3.3.1 Power Generation .......................................................................................................................... 51

3.3.2 Power transmission ....................................................................................................................... 53

3.3.3 Power distribution ......................................................................................................................... 54

3.3.4 Electricity power operation regulation .......................................................................................... 54

3.3.5 Bio-fuel development .................................................................................................................... 55

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3.4 Telecommunication ................................................................................................................................... 55

3.5 Potable water supply and irrigation development ..................................................................................... 56

3.5.1 Potable water supply ..................................................................................................................... 56

3.5.2 Irrigation And Drainage Development .......................................................................................... 57

3.5.3 Ground and surface water study and integrated basin development ............................................. 58

3.6 Performance of road transport................................................................................................................... 59

3.7 Performance of maritime and dry port ...................................................................................................... 59

3.8 Aviation Sector ......................................................................................................................................... 60

3.9 Performance of urban and construction .................................................................................................... 61

3.9.1 Integrated Housing Development Program ................................................................................... 61

3.9.2 Urban infrastructure development program .................................................................................. 61

3.9.3 Construction industry development ............................................................................................... 62

CHAPTER IV SOCIAL SECTOR ................................................................................................................ 63

4.1 Education and Training ......................................................................................................................... 63

4.2 Health Sector ........................................................................................................................................... 67

CHAPTER V CAPACITY BUILDING AND GOOD GOVERNANCE ...................................................... 74

5.1 Public Sector Capacity Building ............................................................................................................... 74

5.2 Information Communication Technology Development .......................................................................... 77

5.4. Democracy and Good Governance .......................................................................................................... 79

5.4.1 Strengthening the Democratic System .......................................................................................... 79

5.4.2 Ensure Good Governance .............................................................................................................. 84

5.5. Media Broadcast Performance ................................................................................................................. 86

CHAPTER VI CROSS CUTTING ISSUES .................................................................................................. 88

6.1. Children, Youth and Women Related Issues ........................................................................................... 88

6.2. Prevention and Control of HIV/AIDS ..................................................................................................... 89

6.3. Social Welfare .......................................................................................................................................... 89

6.4 Labor Affairs ............................................................................................................................................. 91

6.5 Population and Development .................................................................................................................... 92

6.6 Culture and Tourism ................................................................................................................................. 92

6.7. Science and Technology Development .................................................................................................... 93

6.8 Environment and Climate Change ............................................................................................................ 95

CHAPTER VII MONITORING AND EVALUATION SYSTEM .............................................................. 97

7.1 Monitoring the Over all Plan Performance by MoFED ............................................................................ 97

7.2 Peformances of the Federal Executive Bodies .......................................................................................... 97

7.3 Performance of the Central Statistical Agency ......................................................................................... 98

7.3.1 Agriculture Statistics ..................................................................................................................... 98

7.3.2 Business Statistics ......................................................................................................................... 98

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7.3.3 Household Surveys and Price Statistics .................................................................................. 98

7.3.4 Population Statistics ...................................................................................................................... 99

7.4 Policy Matrix ............................................................................................................................................ 99

Chapter VIII .................................................................................................................................................. 100

Conclusion: Challenges & Opportunities for GTP Implementation ............................................................. 100

Appendix I. Performances of the Policy Matrix .......................................................................................... 103

LIST OF TABLES

Summary of macroeconomic…cont’d ......................................................................................................... 11

Summary of macroeconomic…cont’d ......................................................................................................... 12

Table 1. Growth rate of Real GDP (percent) ................................................................................................. 13

Table 2. Distribution of GDP by Major Industrial Classification at Constant Basic Prices (Percent) ............ 14

Table 3. Demand Side GDP: Major Components as a Ratio to GDP at Current Market Price (percent) ....... 15

Table 4. Government Revenue and expenditure in million Birr ..................................................................... 18

Table 5: Percentage Share of Government Revenue and Expenditure to GDP at current market price ........ 19

Table 6. Pro-poor capital and recurrent expenditure (in million Birr) ............................................................ 20

Table 7. External finance commitments in million USD ................................................................................ 21

Table 8. External finance disbursements in million US dollar in 2011/12 ..................................................... 21

Table 9. Repayment of External Debt in Million USD ................................................................................... 22

Table 11. Area cultivated and production in 2010/11 fiscal year (in million units) ....................................... 31

Table 12. Total area cultivated and production in 2010/11 fiscal year(million units) .................................... 31

Table 13. Performance of manufacturing and export in million USD ............................................................ 36

Table 14.Performance of Public Enterprises ................................................................................................... 41

Table 15. Performance Road sub sector (2010/11) ......................................................................................... 49

Table 16. Targets and Accomplishment for or road outcomes in (2010/11) .................................................. 49

Table 17. Plan and performance of road sector plan in 2010/11 .................................................................... 50

Table 18. Employment created in 2010/11 by road sector .............................................................................. 51

Table 19. Performances of power generation and distribution ....................................................................... 52

Table 20. Telecommunication targets and accomplishments in 2010/11 fiscal year ...................................... 56

Table 21. Access to potable water in 2010/11 ................................................................................................ 57

Table 22. Performances of medium and large scale irrigation and water shade development ....................... 57

Table 23.Performance of the Maritime and Dry Port services ........................................................................ 60

Table 24. Performance civil aviation in 2010/11 ............................................................................................ 60

Table 25. Performance of primary education enrollment ............................................................................... 64

Table 26. Performance of secondary education (9-12) enrollment ................................................................. 65

Table 27. Major plan performance of the health sector in 2010/11 fiscal year. .............................................. 69

Table 28. Urban unemployment survey results in 2010/11 fiscal year .......................................................... 91

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APPENDIX TABLES

Appendix I. Performances of the Policy Matrix ................................................................................ ……..103

APPNEDIX II. Additional Sector Specific Information ............................................................................. 128

Table 2.1.1 Area of cultivated and production by Small holder farmers in 2010/11 ................................... 129

Table 2.1.2 Area of cultivated land and production by commercial farms in 2010/11 ................................ 129

Table 2.1.3 Total cultivated land and production in 2010/11 fiscal year ..................................................... 129

Table 2.1.4 Total cultivated land and production in 2009/10 fiscal year ...................................................... 129

Table 2.2.1 Summary of achievements in education sector in 2010/11 ........................................................ 130

Table 2.2.2. Achievements in health sector development program of GTP in 2011……………………….132

Table 2.3 Physical performances of Central Statistical Agency………………………………………….. 133

Appendix 2.4a Indicators drawn from GTP and GTP Policy Matrix ……………………………….… …134

Appendix 2.4b. Salient Achievements of the GTP………………………………………………………… 136

Appendix 2.4C. New Indicators Suggested by DAG……………………………………………………… 139

1

INTRODUCTION

The GTP is a medium term national development framework for five-year period (2010/11-

2014/15). It is directed towards achieving the Millennium Development Goals (MDGs), Ethiopia‟s

long term vision and sustaining rapid, broad based and equitable economic growth anchored on the

experiences that have been drawn from implementing pro-poor and pro-growth development

policies and strategies undertaken since 1994. Therefore, the overriding development agenda of the

GTP is to sustain rapid, broad-based and equitable economic growth path witnessed during the past

several years and eventually end poverty.

The GTP has four main objectives namely (1) maintain at least an average real GDP growth rate of

11.2 percent and attain MDGs (2) expand and ensure the qualities of education and health services

and achieve MDGs in the social sector (3) establish suitable conditions for sustainable nation

building through the creation of a stable democratic and developmental state; and (4) ensure the

sustainability of growth by realizing all the above objectives within a stable macroeconomic

framework.

The objectives for sustaining rapid, broad-based and equitable economic growth hinge on the

following GTP‟s strategic pillars.

1. Sustaining rapid and equitable economic growth,

2. Maintaining agriculture as major source of economic growth,

3. Creating conditions for the industry to play key role in the economy,

4. Enhancing expansion and quality of infrastructure development,

5. Enhancing expansion and quality of social development,

6. Building capacity and deepen good governance, and

7. Promote gender and youth empowerment and equity.

In order to achieve the above objectives two scenarios - Base Case and High Case Scenarios have

been considered. Under the Base Case Scenario, Ethiopia‟s economy projected to grow annually at

an average real growth rate of 11.2 % and maintain the growth momentum of the last five years

(2005/06-2009/10). Under the Base Case Scenario, it is assumed that the same policies and

strategies that have been implemented under the PASDEP period will continue. Thus, under this

arrangement, the monetary and fiscal policy pushes inflation to remains at single digits; and tax

collection and administration systems will be framed under the purpose of increasing domestic

revenue. All MDG targets will be met under the base case scenario. Economic growth is also

expected to be broad based across agriculture, industry and services at average growth rate of 8.6

%, 20 % and 10.6 % per annum, respectively.

The basic assumptions for the High Case Scenario is putting the economy on a higher growth

trajectory by doubling agricultural value added through scaling up the productivity level of

smallholder farmers/pastoralists to the productivity level of model farmers/pastoralists then,

stimulate the growth of other economic activities. Under the High Case Scenario, the real GDP has

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been targeted to grow on the average by 14.9 % annually while agriculture, industry and services

are expected to grow on the average by 14.9 %, 21.3 % and 12.8 % per annum and the upward shift

of demand will be stabilized by high supply response in agricultural sector thereby keeping the

inflation within single digit.

Now the GTP has gone through its first year of implementation, hence, salient achievements that

have been observed in the overall development segment during 2010/11 are documented in this

report. The analysis of this report is prepared based on base case scenario. Several survey results

conducted by the Central Statistical Agency and administrative information of public institutions

are the major source of data. This annual progress report has been approved by the council of

ministers after a thorough discussion and provision of clear directions on how the report is to be

improved. Furthermore, a series of consultative workshops have been conducted at the federal and

regional levels with representatives of the public sector, the private sector, development partners,

civil society organizations, the academia, professional associations, religious institutions, women

and youth associations, etc. to enrich the report.

The report focuses on major performances, challenges and lessons learnt in the course of

implementing macroeconomic, sectoral and cross sectoral targets as well as capacity building and

good governance during 2010/11. Furthermore, major achievements on Monitoring and Evaluation

System of the country are covered in the report.

The report is structured in seven chapters: The first chapter explains macroeconomic performance.

The second Chapter outlines developments in the economy sector. Chapter III outlines performance

of the Infrastructure sector includes road, potable water supply and irrigation development, energy

development telecommunication and urban and construction development. Chapter IV outlines the

performances of social sector development including education and training and health sector.

Chapter V outlines achievements in capacity building and good governance. The achievements of

cross cutting issues are described in chapter VI. Chapter VII highlights progresses in the

Monitoring and Evaluation (M& E) System of the GTP. The report ends by summarizing the

overall achievements documented during the year.

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EXCUTIVE SUMMARY

In the first year of GTP implementation, the socio economic development trajectory that was

recorded in the past 7 years has been maintained. The first year of the GTP period has also

witnessed greater enthusiasm and participation of citizens in the overall implementation of the plan.

In addition, the accomplishments in 2010/11 are expected to have enhanced the implementation

capacity of the executive bodies, which in turn is an investment for future growth. Likewise, some

of the preparations made during the fiscal year will pave the way for accelerated implementation of

the plan in the coming periods. However, the inflationary pressure that has been observed starting

in the second half of the year was one of the challenges noted in the fiscal year.

1. Macroeconomic Performance

During 2010/11, the country has registered 11.4 % real GDP growth rate surpassing the GTP target

of 11 percent. Particularly, the agriculture and industry sectors have registered growth rates above

their targets set for the year. Clearly, more effective implementation of prudent macroeconomic and

sectoral policies has contributed to this faster and broad-based growth. Furthermore, the rapid

economic growth and remarkable social development have contributed positively to the creation of

employment and improvement in standard of living and poverty reduction. In the fiscal year, a

number of new job opportunities have been created in cities and urban areas. Thus, urban

unemployment rate has declined to 18 % from the level of 18.9 % in 2009/10. Per capita income

has also increased to 392 USD from the level of 377 USD in 2009/10. Chronically poor rural areas

were supported by the productive safety net programs which contribute to achieving better food

security. As a result of developments in the economic and social sectors and better implementation

of welfare programs, absolute poverty index has declined from 38.7 % in 2004/05 to 29.6 % in

2010/11 and that of food poverty index has declined from 38 to 33.6 %. The same trend is observed

for rural and urban areas with both total and food poverty head count and the gap declining. While

income inequality also declined from 0.44 in 2004/05 to 0.371 in 2010/11 in urban areas, it

increased marginally in rural areas from 0.26 to 0.27 leaving the overall inequality unchanged over

the same period.

In general, the fast and sustainable economic growth that has been registered during the year under

review has continued to be broad based and hence equitably beneficial to the society. However,

inflation has posed a critical challenge in the second half of the year. In order to curb the inflation

pressure, the government has implemented short, medium and long term policy measures. To tackle

the challenge in the short run, basic food items (wheat, edible oil and sugar) have been imported

using Governments own resources and supplied to the local market. With regard to medium term

measures, although it is believed that the role of monetary factors on inflationary pressure is

moderate, the Government has taken prudent monetary and fiscal policy measures, including the

outright ending of direct government borrowing from the central bank, maintaining low budget

deficit, and sterilizing the excess foreign exchange reserves. A new trade registration and licensing

has also been introduced with aim of promoting competition in the domestic market. Furthermore,

maintaining sustainable and broad based economic growth with a particular focus on improving

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agricultural productivity and accelerating the growth of the manufacturing sector are major policy

directions that have been followed to control the inflationary and unemployment challenge in the

long time horizon.

During 2010/11, encouraging achievements have also been recorded in investment and domestic

saving. During the year, domestic saving as percent of GDP has reached 8.8 % from the level of 5.2

% in 2009/10. This improvement may be attributed to the policy reforms undertaken at the

beginning of the fiscal year, improvements in accessibility of financial services in urban and rural

areas, and the deepening of community awareness towards domestic saving. On the other hand,

during the year, total capital formation has grown by 25.5 %. This growth in investment could be

attributed to the adoption of conducive investment climate, application of several incentive

schemes at various levels, and acceleration of privatization and improvements in land delivery.

Furthermore, huge capital spending made by the government on a series of public infrastructure has

contributed far for the expansion of investment. Even though, the growth in saving appears

encouraging, the savings-investment gap has remained wide. Therefore, policy measures that have

been implemented during the year to encourage domestic savings will be pursued in the upcoming

years to narrow this gap.

During the year under review, government revenue including grants has reached 85.6 billion birr.

Of which 69.1 billion birr is collected from domestic sources (i.e. tax and non-tax), accounting for

81 % of the total government revenue. On the other hand tax revenue has increased by 15.7 billion

birr against the past year collection and that took the overall tax revenue to 59 billion birr.

The figures indicate that tax revenue has been increasing and that it has remained the major source

of domestic revenue. Even though, the performance in tax collection is encouraging, other

parameters indicate there is more to be done in terms of improving the tax administration system to

reach at reasonable tax collection rate that the economy is generating. In 2010/11, total tax revenue

as percent of GDP has reached 11.5 % from the level of 11.3 % in 2009/10. By the end of 2014/15,

the share of tax to GDP is projected to reach at 15-17 %. In light of this target, it is very important

to strengthen the implementation of the ongoing reforms of the tax information system, customer

education, enforcement and institutional capacity building programs.

On the other hand, the overall expenditure policy of the country is allocating more resources to pro

poor and growth enhancing sectors. It also aimed to mainly cover recurrent budget from domestic

resources and eventually capital expenditure will be covered from domestic resource mobilization.

During the year under review, total government expenditure has increased to 93.8 billion Birr from

72.6 billion Birr in 2009/10. Capital expenditure on average accounted for 57 % of the total

expenditure during the years, while the remaining 43 percent constituted recurrent expenditure.

Moreover, compared to the previous year, both capital and recurrent expenditures have increased

by 25 percent and 33 percent, respectively, indicating government commitment to bring faster

economic and social development.

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The government expenditure on pro-poor sectors such as education, health, agriculture, water, and

road increased from 47.8 billion Birr in 2009/10 to 62.4 billion Birr in 2010/11 indicating an

increment of 15 billion birr or 31 percent, compared to the previous fiscal year. This increment in

government expenditure has also induced a rise in the share of spending on pro-poor sectors to have

a share of 67 % from the total government expenditure. This indicates government‟s high

commitment and practical actions to reduce poverty and achieve MDGs by 2015. With regard to

fiscal deficit, the government anticipates that growth in spending to be accommodated by an

increase in domestic resource mobilization. Owing to a combination of strong domestic revenue

collection measures and prudent fiscal measure, the government budget deficit has declined from

the forecasted budget of 2010/11. The budget deficit was forecasted to be 2.7 percent of GDP

while, it actually registered 1.6 percent of GDP.

Total merchandise export revenue in 2010/11 recorded a robust growth of 37.1 percent vis-à-vis the

preceding fiscal year, which amounts USD 2.75 billion. Meanwhile, total import of goods

contracted slightly by 0.2 percent vis-à-vis the previous year and stood at USD 8.25 billion. Of the

total import, fuel import bill increased sharply by 26.6 percent over the preceding year and in

absolute terms it has reached USD 1.7 billion. Owing to a significant growth in total export of

goods coupled with a small drop in total imports, the deficit in merchandise trade narrowed by 12.1

percent to USD 5.5 billion from USD 6.3 billion last year. The surplus in service account in

2010/11 grew considerably by 50.4 percent over the preceding year and reached USD 688.1

million. The overall Balance of Payments at the end of 2010/11 depicted a surplus of USD 1.4

billion.

2. Economic Sector Performance

Agriculture Development

The overall growth rate of agricultural value added in 2010/11 was 9 %. The total volume of

production of major food crops (cereals, pulses and oilseeds) registered in 2010/11 was 221.8

million quintals. This exceeds the production level of 202.46 million quintals in 2009/10 by 19.36

million quintals. The average productivity of major food crops during the same period was 16.5

quintal per hectare, which is 1.12 quintal/ha higher than the productivity in 2009/10 and 1.0

quintal/ha less than the target for the same year. The land covered by these major food crops was

13.45 mln ha. A total of 818,050 tons of chemical fertilizer and 1028.4 thousands improved seed

have been distributed in 2010/11. In addition, 3034 thousands of hectares of land were covered

with organic manure in the same period. Efforts were also made to improve the genetic potential of

livestock through crossbreeding. Soil and water conservation and rehabilitation works have been

performed by mobilizing community based resources.

With regard to private sector participation in agriculture, support was provided in particular to

private investors in areas of horticulture. Accordingly, better results were registered mainly in

vegetable farm development. Though the interest of the private sector in the development of

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agriculture is high, the actual participation is not as high as expected, indicating that support should

be strengthened in effective and sustainable way.

Industry Development

The development of Micro and Small Scale Enterprises is the central focus of the industrial

development strategy. Accordingly, in 2010/11, a comprehensive micro and small enterprises

development strategy was devised and approved by the government in consultation with all

relevant actors. A strategy was also devised to ensure that all public programs are executed in such

a way that they create productive employment opportunities and promote the development of

competitive micro and small enterprises. Industrial extension services and supports were accorded

to small business in order to create productive jobs during the fiscal year. Training was provided to

453,511 employees on entrepreneurship, business management, handicraft and technology to

promote saving. Around 542,000 jobs were created at the end of the fiscal year. Of the total jobs

created, 53 percent were accounted for women.

About USD 207.7 million foreign exchange earnings was generated from manufacturing industry in

2010/11. In the same fiscal year, pharmaceuticals and chemical industries achieved 96 percent of

their target, while textile and garment industries attained 73.1 % of their target. Leather and leather

products and agro- processing industries performance were 57.7 % and 42.8 %, respectively.

Though the foreign exchange earnings of 2010/2011 are better than the previous year, sub-sectoral

performances are short of their target for the fiscal year. Efforts have been made to improve the

regulatory and facilitation environment for foreign and local investment, to provide better support

to strategic industries in the fiscal year.

Capacity building works have been undertaken to increase the competitiveness of the textile and the

leather industry through twining arrangement program and benchmarking. Implementation of

quality and product safety and environment protection rules and regulations has started in selected

agro-processing factories during the fiscal year. The KAIZEN system was implemented in 30

factories. To support the manufacturing sector with skilled manpower both short and long term

trainings have been offered. Support has also been provided to the private sector in order to

enhance their contribution for the economic growth and industrialization endeavor. With regard to

public enterprises management and privatization, directives and regulations were developed and follow-

up of their implementation has been strengthened.

Mining Sector Development

The geological mapping coverage of the country (at a scale of 1:250,000) increased to 56.8 percent

in 2010/11. Similarly, the hydro-geological mapping at a scale of 1:250,000 increased to 48.3 %. In

relation to mineral investment, it was possible to increase investment to 13.8 billion birr, while the

volume of petroleum investment increased to 292.7 million USD. With regard to artisanal mining

and marketing promotion program, 53 legal artisanal mineral miners‟ cooperative associations were

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established in six export mineral producer regions in 2010/11. In general, 509 million USD has

been secured from minerals exported by different companies and artisanal miners in 2010/11.

3. Infrastructure development

Encouraging achievements have been recorded in infrastructural development of the country in

2010/11. Physical accomplishment in road sector enabled the national level road length to have

increased from 48,793 kilometers in 2009/10 to 52,042 kilometers in 2010/11. Because of increased

road density and improvement in the quality of roads, the average vehicle coverage per day

(measured by km of travel per day) has increased from 9.6 million km to 12.1 million km. As a

result, the average travel time to all-weather roads declined to 3.5 hours.

Power generation, transmission and distribution activities executed in 2010/11. Inspection and

testing activities of Fincha Amertinsehi Hydro Electric Power Plant were completed by the end of

the fiscal year and 48.5 MW generating capacity was added to the national grid. Similarly, 26.6

MW wind power has been generated from Ashegoda Wind Power Plant project. This has increased

the national energy generation capacity from 2000 MW in 2009/10 to 2075.1 MW in 2010/11. As a

result, during the year under review, national electricity coverage has increased to 46 % from the

level of 41 % in 2009/10. The preliminary activities of the Grand Renaissances HEP project have

been well in progress.

With regard to telecommunication services, the number of mobile subscribers and telecom density

for mobile lines increased from 6.52 million and 8.7 percent in 2009/10 to 10.7 million and 12.85

percent in 2010/11, respectively. In the same fiscal year, construction of 17,171 new houses started

in Addis Ababa, 149,690 low cost houses were under construction by Regional States and 87,224

houses have been transferred to beneficiaries. Moreover, 176,317 employment opportunities were

generated from the housing development.

4. Social development

Primary education (1-8) gross and net enrollment rate has increased to 96.4% and 85.3% in

2010/11 from the level of 93.4 % and 82.1% in 2009/10, respectively. In the same fiscal year,

gender parity index in primary education (1-8) enrollment has reached 0.94 from the level of 0.93

in 2009/10. Secondary school (9-10) gross enrollment rate has increased to 41.6 % from the level of

39.7 % in 2009/10. In preparatory education (11-12) female gross enrollment rate has increased to

42.2 % from the level of 35.7% in 2009/10. Various activities have been performed under General

Education Quality Improvement Package (GEQIP).

With regard to health sector, the number of health extension workers that are deployed in rural

Kebeles has reached 34,382. Similarly, during the same year, the number of urban health extension

workers has reached 3,916. This has taken the national health extension service coverage to 75.2 %.

During the year under consideration, infant and under five mortality rates have declined to 59/1000

and 88/1000, respectively. Remarkable results that have been recorded in the health sector signify

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a promising prospect in achieving the MDGs by the end of 2014/15. However, the maternal

mortality, MDG 5, did not show a decline and remains at 673 per 100,000 although other maternal

health related indictors have shown good progress. The result indicates that achieving MDG 5 will

be a serious challenge and needs a serious attention.

5. Capacity building and good governance

Capacity Building

Restructuring government institutions and re-engineering their working system and also enhancing

citizens‟ and community based organization participation in the development process of the country

are major tasks that have been accomplished in 2010/11. The new government has been established

following the May 2010 free and fair election followed by reorganized executive organs to suit the

execution of the GTP. Furthermore, with the aim of establishing democratic institutions and

judiciary bodies, trainings have been provided on human rights.

In general, encouraging results have been achieved through concerted efforts of improving

leadership capacity of top management, enhancing leadership and implementation capacity of

middle level management and executives, improving the government‟s institutional setups and their

working system, implementing effective, efficient, transparent, and accountable government

financial system, enhancing the capacity of capacity building institutions, enhancing

communication and promoting the civil service reform, ensuring transparent and accountable

system in the civil service, enhancing public participation in development process and building the

capacity of zonal, woreda and local councils.

A serious of activities has been accomplished with regard to ICT development to expand the

accessibility of ICT and to foster the benefits of the community from ICT services so as to

support the implementation of the agricultural-led industrialization development and export

led trade and industrialization development strategies of the country and education services

delivery as well. ICT policies and strategies have been revised. With regard to the justice

system reform, human development capacity has been enhanced through training;

proclamations have been drafted and enacted based on the constitutional provisions to ensure

supremacy of law and to improve transparency and accountability as well.

Democracy and Good Governance

With regard to democracy and good governance, commendable works have been undertaken

through strengthening one economic and political community, enhancing citizens' knowledge

on constitution, strengthening councils and other institutions, strengthening institutional

capacity to prevent and control corruption and implementation of urban land development

and management program. Mass media have been expanded and media laws and regulations

have been ratified.

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6. CROSS CUTTING ISSUES

Included in cross cutting issues are children, youth and women related issues; prevention and

control of HIV/AIDS; social welfare and labor affair issues; population and development

issues; culture and tourism; science and technology development; environment and climate

change. In all these sectors, enormous development activities have been performed and

encouraging achievements have been registered in 20110/11.

7. MONITORING AND EVALUATION SYSTEM

The monitoring and evaluation system, which is based on sectoral approach, takes a functional

relationship from the federal to the local levels government whereby timely and reliable

information on results is compiled and reported. Based on the established monitoring and

evaluation system, close follow-up and monitoring on the implementation of the GTP have been

carried out at different levels of government administration. Accordingly, the progress report on the

implementation of the GTP for the fiscal year 2010/11 has been prepared by the Ministry of

Finance and Economic Development based on administrative and survey information that have

been drawn from the concerned government institutions. The progress report has been approved by

the council of ministers followed by consultations at the Federal and Regional levels to learn from

such consultations on how to even further improve the implementation of the GTP in the coming

years and address the challenges.

In summary, the overall achievements that are recorded in 2010/11 in terms of the macro economic

developments, accelerating economic growth and social development can be taken as indications

that the goals of GTP, the country‟s vision of reaching at middle income level, and the MDG

targets are all attainable. On the other hand, wide savings investment gap, low tax to GDP ratio and

the inflationary pressure indicate the challenges ahead in the upcoming GTP periods. Furthermore,

capacity limitation in the government sector, as well as in the public in general and the private

sector in particular are envisaged to be challenges that will be encountered.

Increasing domestic saving and tax revenues, strengthening measures being undertaken to contain

inflation, accelerating economic growth through increased productivity in agriculture and speeding

up industrial development, enhancing the capacity of the public and the private sector as well as

public participation are the strategies to be enthusiastically implemented in the following years.

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8. Summary of macroeconomic and main sectoral level performances

No.

Indicators

2010/11 fiscal year

Baseline

2009/10

Planned Actual Target for

2014/15

I Macro Economics and Public Finance Indicators

1.1 Macro Economy

Real GDP growth rate (%) 10.6 11.0 11.4 11.4

Per Capita GDP at Current Market Prices(USD) 377 392 482/523

Total Consumption Expenditure (PFCE) as % of GDP 94.8 92.6 91.2 85.0

Gross Domestic Capital Formation as % of DGP 22.3 25.3 25.5 28.2

Gross Domestic Saving as % of GDP 5.2 7.4 8.8 15.0

1.2 Public finance

Domestic revenue and Grants as % of GDP 17.3 17.8 16.7 20.4

Domestic revenue as % of GDP 14.0 14.1 13.5 17.1

Tax revenue as % of GDP 11.3 11.7 11..5 15.0

Total poverty-oriented expenditure as % of GDP 12.3 13..5 12.2 17.3

Total expenditure as % of GDP 18.6 20..5 18.4 23.7

Capital Expenditure as % of GDP 10.3 11.6 10.4 14.4

Recurrent Expenditure as % of GDP 8.4 8.9 7.9 9.3

Overall Balance Including Grants as % of GDP (1.3) (2.7) (1.6) (3.3)

External debt (Net) as % of GDP 1.1 1.0 1.5 0.6

Domestic debt (Net) as % of GDP 0.5 1.6 0.02 2.7

1.3 External sector

Export of Goods and Non-Factor Services as % of GDP 13.6 16.6 16.3 22.5

Imports of Goods and Non-Factor Services as % of GDP 33.0 34.5 31.8 35.7

Resource Balance as % of GDP (19.4) (17.9) (15) (13.1)

II Poverty & Welfare

Total poverty Head Count (%) 38.7 (2004/05) 27.7 29.6 22.2

Food Poverty Head Count (%) 38 (2004/05) 26.6 33.6 21.2

III Economic Sectors

3.1 Agriculture and allied activities

Growth rate of agriculture value added 7.6 8.5 9.0 8.7

Main food crop production (000 tons) 19392 19976 22182 26774

Crop productivity (quintal per hectare) 15.38 17.5 16.5 22.0

Production of flower in million seedlings 2748 3285.5 1804.7 5859.1

Area covered by multiple use trees (000 hectares) 6058 7721.2 6994.17 16210

Number of extension service beneficiaries (thousands ) 5090 8521 9044 14640

Meat Export (000 metric ton) 10.18 16416 16575 111

No. of beneficiaries benefited productive safety net (million) 7.1 5.1 7.7 1.3

3.2 Industry

Growth rate of industrial value added 10.6 14.0 15.0 23.7

Sugar product(000 ton) 0.3145 0.38 0.28 2.25

Textile and garment industry export (in million birr) 21.8 100 62.2 1000

Leather and leather products export (in million birr) 75.73 190.5 104.1 496.87

Total capacity to produce cement (million ton) 2.7 9.0 6.45 27

Metal consumption per capita (kg) 12 14.23 - 34.7

11

Summary of macroeconomic…cont’d

No.

Indicators

2010/11 fiscal year

Baseline

2009/10

Planned Actual Target for

2014/15

3.3 Mine

Gold export (kg) 3907 4500 4376 8700

Gold supplied to National Bank by traditional miners (kg) 2866 3616 7296 5250

IV Infrastructure Development

4.1 Roads

Total road network (000 km) 48.8 51.6 52 64.5

Average time taken to all-weather road (hours) 3.7 3 3.5 1.4

Road density (km/1000 km2) 44.5 55.6 48.1 123.7

Road density (km/1000 population) 0.64 0.78 0.65 1.54

Roads in acceptable condition (%) 81 81.3 82 86.7

Proportion of Area further than 5 km from all-weather

roads (%)

64 57.3 61.8 29

Construction of standard new road that connects woreda to

all-weather roads (km)

0 9568 854 71523

4.2 Rail way

Rail way network in km 0 - - 2395

4.3 Power

Electricity coverage in % 41 50 46 75

Energy generating capacity(MW) 2000 2045 2075.1 8000

Length of distribution line (km) 126038 132638 126323.5 258038

Rehabilitation of transmission line (km) 450 967 967 8130

4.4 Telecom

Fixed telephone density (per 100) 1.36 1.6 1.03 3.4

Mobile service subscribers (in million) 6.52 - 10.7 40

Fixed telephone subscribers (in millions) 1.0 1.25 0.854 3.05

Internet service subscribers(in millions) 0.187 0.34 0.129 3.69

IV Infrastructure Development

4.5 Water

Potable water coverage (%) 68.5 75 73.3 98.5

Urban potable water coverage ( within 0.5km) 91.5 93 92.5 100

Rural potable water coverage (within 1.5km) 65.8 73 71.3 98

Large and medium level developed irrigable land (ha) 127243 115565 32034 98475

4.6 Urban Development & Housing

Employment generated under integrated housing

development (000)

44 100 176 182

Employment created by micro and small scale enterprises

(MSE) in million

- 0.410 0.542 3.0

Reduction of slum areas (%) 60 54 50 30

Urban coble stone road construction (km) - 90 222.2 3738

12

Summary of macroeconomic…cont’d

No.

Indicators

2010/11 fiscal year

Baseline

2009/10

Planned Actual Target for

2014/15

V Social development

5.1 Education

Primary school Net enrollment ratio 82.1 89.7 85.3 100

Primary school enrollment of girls to boys ratio 0.93:1 0.94:1 0.94:1 1:1

Primary school pupil text book ratio 1.25:1 1:1 1.2:1 1:1

Adult education enrollment rate (%) 36 47.8 37.5 95.0

Higher institution intake capacity (under graduate) 185788 196893 211197 467445

TVET intake capacity 353420 799548 366613 1127330

Gross enrolment rate for grade (9-10) (%) 39.7 41.6 38.4 62

Boys gross enrolment rate (%) 44 44.5 41.8 61.8

Girls gross enrolment rate (%) 35.2 38.5 34.9 62.3

Gross enrolment rate for grade (11-12) (%) 6.0 6.2 8.1 9.5

Boys gross enrolment rate (%) 8.2 8.0 9.4 9.7

Girls gross enrolment rate (%) 3.8 4.3 6.7 9.2

Adult literacy rate (%) 36 47.8 37.5 95

5.2 Health

Primary Health Services Coverage (%) 89.6 100 96 100

Under Five Mortality Rate (per 1000) 123 (2005 EDHS) - 88 68

Infant mortality rate (per 1000) 77 - 59 31

Maternal mortality rate (per 100,000) 673 (2005 EDHS) 503 676 (2011

EDHS)

267

Pentavalent 3 vaccine coverage (%) 82 85 84.7 96

Full immunization of infant 72.3 80 74.5 90

Contraceptive Prevalence Rate (%) 14 (2005 EDHS) 45 29 (2011

EDHS)

66

Proportion of births attended by skilled health personnel (%) 15.7 34 16.6 60

Transmission of HIV/AIDS (%) 2.4 - 2.3 2.4

TB case detection rate (%) 36 50 36.8 75

Stunting (%) 46 42 44 37

Wasting (%) 11 8 10 3

13

CHAPTER I MACRO ECONOMIC PERFORMANCE

The macroeconomic objective of the GTP is to create robust macroeconomic condition that can

maintain at least an average annual real Gross Domestic Product (GDP) growth rate of 11.2 percent

- the growth momentums observed during 2005/06-2009/10 and achieve the MDGs by 2015 under

the base case scenario.

1.1 Gross Domestic Product and Price

Supply Side GDP

The Ethiopian economy has continued to register high overall economic growth in the first year of

implementation of the GTP. During 2010/11, real GDP growth rate stood at 11.4 percent (Table 1),

which is well above the target and previous year performance by 0.4 percent and 0.8 percent

respectively. This sustainable growth rate of real GDP explains the availability of prudent macro

economy and sectoral policies and implies that Ethiopia will achieve MDG targets. The growth

rates of the GDP by major economic classification during the period under review indicates that

agriculture, industry and services have registered growth rates of 9 percent, 15 percent and 12.5

percent, respectively. Compared to the targets and the previous fiscal year, the growth rate

registered by agriculture & allied activities surpassed by 0.5 percent & 1.4 percent, the growth

performance of the industrial sector exceeded by 1 percent & 4.2 percent while the growth

performance of services remained within the target (12.5 percent) but 0.7 percent behind the

previous fiscal year performance. Significant contributions from agriculture, industry and services

to the overall economic growth show that the trajectory is under broad base.

Table 1. Growth rate of Real GDP (percent)

Sector Base Year

(2009/10)

2010/11 Fiscal Year

Planned Actual

Over all real GDP 10.6 11.0 11.4

Agriculture and allied activities 7.6 8.5 9.0

Industry 10.8 14 15.0

Services 13.2 12.5 12.5

Source: MoFED

With regard to share of GDP, the contribution of agriculture declined from 42 percent in 2009/10 to

41 percent in 2010/11, while the share of industry increased from 13 percent in 2009/10 to 13.4

percent and the share of services sector increased from 45 percent in 2009/10 to 45.6 percent in the

same fiscal year. Within the industry, the construction and manufacturing sub-sectors have

registered high growth rate of 12.8 percent and 12.1 percent, respectively. Accordingly, the share of

construction and manufacturing to real GDP averaged 5.8 percent and 4.9 percent, respectively in

2010/11. Within the service sector; Whole Sale Trade & Hotels & Restaurants sub- sector and Real

Estate Renting & Business Activities accounted for 12.8 percent and 10.7 percent of GDP in

2010/11, registering a growth rate of 5.9 percent and 22.1 percent, respectively.

14

Table 2. Distribution of GDP by Major Industrial Classification at Constant Basic Prices (Percent)

Sector Base Year

(2009/10)

2010/11 Fiscal Year

Planned Actual

Agriculture and Allied Activities 42 40.6 41.0

Industry 13 13.2 13.4

Service 45 46.2 45.6

Total GDP 100 100 100

Source: MOFED

Figure 1: Percentage Distribution of Real GDP by Major Industrial Classification during 2010/11

Demand side GDP

With regard to the demand side, the GDP at current market price grew by 33.5 percent in fiscal year

2010/11. This high level of growth is a reflection of the inflationary pressure experienced during

the second half of the fiscal year. General prices increased far beyond the GTP target during the

second half of the fiscal year and reached 18.1 percent by the end of the fiscal year. Government

total and private final consumption expenditure grew from 10.3 percent and 15.3 percent in

2009/10 to 25.4 percent and 28.6 percent, respectively. On the other hand, the share of total final

spending to nominal GDP has declined from 94.8 percent in 2009/10 to 91.2 percent in 2010/11,

which is lower than the GTP target of 92.6 percent set for 2010/11 (Table 3). The share of

government and private consumptions to total domestic production reached 8.1 percent and 83.1

percent, respectively. Gross domestic saving which was 5.2 percent of GDP in 2009/10 increased

to 8.8 percent of GDP in 2010/11, which is far above the target of 7.4 percent of GDP. This

15

remarkable achievement is the result of deepening of financial institutions particularly drastic

improvements in banking services through improved access to rural areas.

On the other hand, the share of gross domestic investment to GDP increased from 24.7 percent in

2009/10 to 25.5 percent in 2010/11 surpassing the target by 0.2 percent. This positive development

has been promoted by a favorable investment climate, and improved land lease management as

well as a series of investments in physical infrastructure and human development that has

contributed significantly to the growth of private investment.

Exports of goods and non-factor services registered a growth rate of 64.8 percent in 2010/11 and

imports of goods and non-factor services also increased by 28.6 percent during the same period. By

the end of 2010/11, exports of goods and non-factor services reached 16.8 percent of GDP while

imports of goods and non-factor services have reached 31.8 percent of GDP. As a result, resource

gap (trade deficit) has narrowed and reached 15 percent of GDP during 2010/11, which has

surpassed the GTP target of 17.9 percent of GDP. Government support in the export sector and

increased quality of export products were the main reason for increased performance in export of

goods and services, which has resulted trade deficit to be narrowed. During the first year of GTP

implementation, nominal per capita GDP increased from 377 USD in 2009/10 to 392 USD in

2010/11, showing a growth rate of 4 percent, which is quite remarkable.

Table 3. Demand Side GDP: Major Components as a Ratio to GDP at Current Market Price (percent)

Sector

Base Year

(2009/10)

20010/11 Fiscal Year

Planned Actual

Total consumption 94.8 92.6 91.2

Government consumption 8.6 8.3 8.1

Private consumption 86.2 84.3 83.1

Gross domestic investment 24.7 25.3 25.5

Export of goods and non-factor services 13.6 16.6 16.8

Import of goods and non-factor services 33 34.5 31.8

Resource gap (trade deficit) -19.4 -17.9 -15

Domestic saving 5.2 7.4 8.8

Source: MoFED

16

Figure 2: Major Components as a Ratio to GDP at CMP (percent) of the year 2010/11

Source: MoFED

1.2 Welfare and Poverty

The main objective of the Ethiopian development agenda is to ensure broad based, fast, fair and

sustainable economic growth and social development and reduce poverty. In the first year of GTP

implementation, it has been possible to continue the momentum of economic growth and social

development registered prior to the GTP. Various activities that ensure fairness, transparency and

accountability have been performed which contributes to poverty reduction.

The per capita income has increased from 377 USD in 2009/10 to 392 USD in 2010/11. In areas of

social development, substantial achievements have been observed in primary and secondary

enrollments. Quality improvement programs have been implemented to increase the quality of

education. Access to health services has been increased and as a result child mortality declined

substantially. Although other maternal health related indicators have shown good progress,

maternal mortality remains at 673/100,000. Improvement in access to drinking water and sanitation

facilities has been shown.

Improved performances in economic and social sectors have contributed positively to the creation

of employment and improvement in standard of living and poverty reduction. Chronically poor

rural areas were supported by the productive safety net programs which contribute to achieving

better food security.

17

In Ethiopia, poverty is measured by three widely used poverty indices: the incidence of poverty

(poverty headcount index); poverty gap; and squared poverty gap (poverty severity. The headcount

index is the share of the population whose consumption is below the poverty line, that is, the share

of the population that cannot afford to buy a basic basket of goods and essential nonfood items. The

poverty gap provides information regarding how far households are far from the poverty line. This

measure captures the mean aggregate consumption shortfall relative to the poverty line across the

whole population. Poverty severity (squared poverty gap index) takes into account not only the

distance separating the poor from the poverty line (the poverty gap), but also the inequality among

the poor. It places a higher weight on those households further away from the poverty line.

The preliminary results indicate that the national level absolute poverty head count index reduced

from 38.7 in 2004/05 to 29.6% in 2010/11 and that of food poverty head count index (hunger) from

38% to 33.6%. The same trend is also observed for rural and urban areas, but rural poverty is still

higher than urban poverty. Absolute poverty gap also declined from 8.3% in 2004/05 to 7.3% in

2010/11. Income inequality measured by Gini Coefficient has declined in urban areas from 0.44 to

0.37, while rural inequality marginally increased from 0.26 to 0.27, though urban inequality is still

higher than rural inequality.

The declines in poverty and inequality are results of developments in the economic and social

sectors and better implementation of welfare programs such as productive safety net program and

urban food distribution and subsidy. Detail poverty analysis is under progress in order to identify

and assess the main factors associated with the reduction of poverty and inequality in Ethiopia. The

detail poverty analysis will also provide poverty indices disaggregated by regional states, place of

residence and various socio economic groups such as age, household size, education level of the

household head, occupation type, sector of employment and gender. As data of household

consumption is not available by gender, it is difficult to disaggregate poverty by male and female.

Hence poverty will be disaggregated by male and female headed households although gender of the

household is a very weak indicator of gender.

1.3 Fiscal Policy and Public Finance Performance

The fiscal policy pursued during 2010/11 concerns increasing tax revenue through more effective

administration of the implementation of the prevailing tax policies, and prioritizing government

expenditure budgets towards capital spending on pro-poor sectors as education, health, agriculture,

water supply, roads and other infrastructure. The key objective of this fiscal policy has been to

ensure a conducive macroeconomic environment for accelerated and sustained economic growth by

keeping the budget deficit very low at less than 2 percent. These policy instruments and objectives

guided the government‟s fiscal policy and public finance administration during the first year of the

GTP period.

Revenue

The overall total government revenue during 2010/11, has reached 85.61 billion birr surpassing the

annual target by 0.53 billion birr and in excess of 29 percent from the performance of the previous

18

year (Table 4). Of the total revenue, domestic revenue has reached 69.12 billion, which is 4.5 over

percent of the annual budget and in excess of 28 percent of the previous year performance. On the

other hand, grants mobilized amounted to about 16.5 Billion Birr in 2010/11, showing a shortfall of

about 13 percent from its target, and an increase of 33.2 percent compared to the collection in the

preceding year. Domestic revenue accounted for about 81% of the total government revenue, while

grants accounted for the remaining 19% during the fiscal year under review (Table 4).

Table 4. Government Revenue and expenditure in million Birr

Type of Revenue

Base Year

(2009/10)

2010/11 Fiscal Year 2010/11 performance

compared to base year Planned Actual

Total revenue (inc. grant) 66240 85085 85611 29.2

Domestic 53864 66172 69120 28.3

Tax revenue 43318 56173 58981 36.2

Direct Tax revenue 14906 19517 19550 31.2

Domestic Indirect Taxes 10727 13225 15705 46.4

Foreign Trade Tax 17685 23431 23726 34.2

Non tax 10546 9999 10139 -3.9

Grants 12376 18912 16491 33.2

In kind support 5561 9445 6859 23.3

Protection of basic services 6816 10547 9633 41.3

Total expenditure 72598 98406 93831 29.2

Recurrent expenditure 32537 43246 40535 24.6

Capital expenditure 40061 55159 53297 33.0

Pro-poor expenditure 47790 64359 62378 30.5

Budget deficit including foreign aid -6358 -12242 -8220 29.3

Expenditure financing 6358 12242 8220 29.3

Foreign debt (net) 4131 4520 7798 88.8

Domestic debt (net) 1758 7356 111 -93.7

Revenue from privatization 697 366 1458 109.2

Source: MoFED

In 2010/11, out of the total domestic revenue of 69.1 billion birr, about 59 billion birr (85.4%) was

collected from taxes, while the rest 10.1 billion birr (14.6%) was from non-tax sources. Tax

revenue collected in 2010/11 showed an increase of nearly 16 billion birr or 36.2% compared to the

base year. Tax revenue during the period under review also exceeded the plan target for the year by

about 5%.

From the total tax revenue of 59 billion birr collected in 2010/11, 19.6 billion birr has been

generated from direct tax, which accounts 33 percent of total tax. While, the rest 15.7 billion birr

(27%) and 23.7 billion birr (40%) has been collected from domestic indirect tax and foreign trade

taxes, respectively. The performance of revenue collection from direct taxes showed 31.2 percent

increment from the previous year. Collection of revenue from domestic indirect tax was in excess

of 18.8 percent of the annual budget and exhibited 46.4 percent increment from the preceding year.

Similarly, the performance of foreign trade taxes marginally above its annual plan, and showed an

19

increase of 34.2 percent compared to the level of the previous fiscal year. Therefore, the

performance of tax collection during this year was above the plan for each revenue component.

This remarkable performance in tax collection is the result of improvements in the tax

administration during the fiscal year under review. Nonetheless, tax revenue as a percentage of the

GDP remains low. Although, the plan was to increase the tax to GDP ratio from 11.3 % in 2009/10

to 11.7 % in 2010/11, the actual achievement was 11.5 %. This ratio is also low compared to the

ratio achieved by many developing countries. Thus, even more effective administration of the tax

policies is required in the coming years to mobilize adequate tax revenues for financing the GTP.

In addition to domestic revenue, the external grant that collected in 2010/11 has reached 16.5

billion birr, which was 87.2 percent of the annual target. The grant mobilized in 2010/11 has

exceeded the 2009/10 performance by 33.2 percent. Out of the total grant, Protection of Basic

Service (PBS) constituted 58 percent and its disbursement was 91.3 percent of the target.

Table 5: Percentage Share of Government Revenue and Expenditure to GDP at current market price

Type of Revenue

Base Year

(2009/10)

2010/11 Fiscal Year

Target Actual

Total revenue (including grant) 17.3 17.8 16.7

Domestic 14.0 14.1 13.5

Tax revenue 11.3 11.7 11.5

Non tax 2.8 2.4 2.0

Grants 3.2 3.7 3.2

Total expenditure 18.6 20.5 18.4

Recurrent expenditure 8.4 8.9 7.9

Defense expenditure 1.0 0.9 0.9

Capital expenditure 10.3 11.6 10.4

Pro-poor expenditure 12.4 13.5 12.2

Budget deficit including foreign aid -1.3 -2.7 -1.6

Expenditure financing 1.7 2.7 1.6

Foreign debt (net) 1.1 1.0 1.5

Domestic debt (net) 0.5 1.6

Revenue from privatization - - 0.3

Source: MoFED

Expenditure

The overall government expenditure policy of the country is allocating more resources to build

economic and social infrastructure and ensure the provision of basic services with the aim of

eradicating poverty and achieving rapid economic development. The government also aimed to

spend more resources on pro-poor sectors of education, health, water supply, agriculture, food

security and infrastructure in the form of capital expenditure while attempting to contain increases

in recurrent expenditures. In addition, the government aimed to transfer an increased amount of

block grant to regional governments.

20

Accordingly, total government expenditure has increased from 72.6 billion Birr in 2009/10 to 93.8

billion Birr in 2010/11 showing a 29.2 percent increment (Table 6). Again in accordance with the

guiding policy statements of the government, capital expenditure on average accounted for 56.8

percent of the total government spending, while the remaining 43.2 percent allocated to recurrent

expenditure. This reflects the commitment of the government to capital investment. Moreover,

compared to the previous year, while capital expenditures increased by 33 percent, recurrent

expenditures increased by only 24.6 percent , indicating government commitment to bring faster

economic and social development and to provide better social and economic services to the citizens

by allocating more capital budget on priority economic and social infrastructure programs.

The government expenditure on pro-poor sectors such as education, health, agriculture, water, and

road increased from 47.8 billion Birr in 2009/10 to 62.4 billion Birr in 2010/11, indicating an

increase of nearly 15 billion birr (30.5 percent). This increased government expenditure on pro-

poor sectors accounted nearly two-third of the total government expenditure. This indicates the

government‟s strong commitment and practical actions to reduce poverty and achieve MDGs by

2015.

Table 6. Pro-poor capital and recurrent expenditure (in million Birr)

Sector

Base Year

(2009/10)

2010/11 Fiscal Year Growth over the

base year (%) Target Actual Share in total

expenditure (%)

Total government expenditure 72,598 98406 93,831 100 29

Total pro-poor expenditure 47,790 64,359 62,378 66.5 31

Education 17,249 24531 23,345 24.9 35

Health 4,693 7067 6,307 6.7 34

Agriculture 6,993 8704 8,246 8.8 18

Water 4,883 6345 5,563 5.9 14

Road 13,973 17713 18,918 20.2 35

Source: MoFED

Financing

The government anticipates that growth in spending will be accommodated by a large increase in

revenue. Owing to a combination of strong domestic revenue collection measures through

improved tax administration, prudent fiscal policy and robust GDP growth, the government budget

deficit declined from its target in 2010/11. The budget deficit targeted at 2.7 percent of GDP, while

the actual deficit was only 1.6 percent of GDP, making the deficit lower by 1.1 percentage points

against the target. The level of budget deficit amounted to a total of 8.22 billion birr in 2010/11.

About 95% of this budget deficit was financed through foreign borrowing while the remaining

small amount was financed through domestic debt.

21

1.4 External Finance Flows and Debt Management

Flow of External Assistance: Ethiopia receives Official Development Assistance (ODA) from two

major sources: bilateral and multilateral donors. The assistance has been provided through

development financing, technical assistance and debt relief. In 2010/11, the bilateral and

multilateral organizations have committed to provide Ethiopia 3.6 billion US dollar of aid and 1.94

billion US dollar of loan. Although these funds are pledged in 2010/11, they are expected to be

actually disbursed over the coming four to five years until 2014/15.

Table 7. External finance commitments in million USD

Sources Grant Loan Total Period covered in years

Bilateral 1171.6 1430.0 2601.6 2 (2009/10- 2010/11)

International Financial Institutions 438.7 516.7 955.4 5 (2011/12-2014/15)

UN 2014.9 - 2014.9 4 (2012/13-2014/15)

EU 35.0 - 35.0 5 (2011/12-2014/15)

Total 3660.1 1946.8 5606.9

Source: MoFED

External assistance disbursement: For the 2010/11 fiscal year, it was expected to receive a total

of 1.55 billion US dollar from external source (with 1.28 billion US dollar of grant and 0.27 billion

US dollar of loan). The country actually received 2.57 billion US dollar of which 1.92 billion US

dollar is in the form of grants and 0.65 billion US dollar is in the form of loans. The funds obtained

in the 2010/11 were used to finance development programs and projects in agricultural and rural

development, road construction, drinking water development, rural electrification, education,

health, industrial development, tourism, capacity building and integrated (cross-cutting sectors‟)

development projects.

Table 8. External finance disbursements in million US dollar1 in 2011/12

Source

2010/11 Fiscal Year

Planned Actual

Loan Grant total Loan Grant total

Total disbursement 269.5 1285.9 1555.4 650.0 1922.6 2572.6

Bilateral 18.0 529.8 547.8 114.5 751.1 865.6

Multilateral 251.5 756.1 1007.6 535.5 1171.5 1707.0

International financial institutions 251.5 365.3 616.8 535.5 437.2 972.7

United Nation 0.0 198.9 198.9 0.0 571.9 571.9

European Union 0.0 191.9 191.9 0.0 162.5 162.5

Source: MoFED

Debt Management: In 2010/11, a total of 2.07 Billion USD was disbursed as external loan to

finance on-budget (31.4%) and off-budget (68.6%) development programs. In the same fiscal year,

the government has paid off 74.85 million USD for foreign public sector debt. Out of this debt

service, 52 percent is paid as a payment of principal, while the remaining 48 percent is interest

payment. Out of the total public sector debt payment in 2010/11, about 51.92 million USD was

1 One USD = 16.55 Eth. Birr

22

effected to international financial institutions (multilateral), 21.24 million USD to bilateral lenders

and 1.69 million USD to the National Bank of Ethiopia as a commission to its banking services. In

addition to the public sector debt service, government guaranteed and non-guaranteed loans were

serviced during 2010/11 amounting to a total of 170.4 million USD (35.69 million USD for

repayment of guaranteed loans and 134.71 million USD for repayment of non-guaranteed loans).

During the fiscal year under review, it was expected that Ethiopia will receive debt relief of 9.97

million USD under the HIPC initiatives. The debt relief actually received was 9.11 million USD,

which is slightly lower than the expected debt relief.

The country has also settled domestic debt of Birr 2.54 billion Birr. Out of this total amount of

domestic debt paid, 1.2 billion Birr was paid for the principal and the rest Birr 1.18 billion Birr was

paid to settle the interest amount, while 0.16 billion Birr was used to pay interest on treasury bills.

The country also obtained Birr 352.72 million from on-lending, which is 86.8% above the planned

target of Birr 184 million.

Table 9. Repayment of External Debt in Million USD

Sector

2010/11 Fiscal Year

Planned Actual

Principal Interest total Principal Interest total

Central Government Debt Repayment 44.58 44.79 89.37 39.10 35.75 74.85

o/w International financial institutions 30.89 28.87 59.76 28.29 23.63 51.92

Bilateral 13.69 13.74 27.43 10.81 10.43 21.24

Bank commission 2.18 2.18 1.69 1.69

Guaranteed loans 32.28 3.41 35.69

Non-guarantee loans 109.37 25.34 134.71

Total debt repayment 180.75 64.50 245.25

Source MoFED

1.5 Monetary Policy, Financial Sector and External Sector Performance

Monetary Policy

The major objectives of the monetary policy for the GTP period emphasize on maintaining price

and exchange rate stability in order to promote rapid and broad based economic growth.

Accordingly, the Government has developed and implemented a number of measures including

keeping the growth of money supply in line with the rate of growth of nominal GDP. With regard

to external sector, a stable foreign exchange rate has been applied in order to encourage export

growth and also enhance import substitution. The financial sector has also been strengthened with

the aim of establishing an accessible, efficient and competitive financial system. In relation to this,

during the plan period emphasis will be given to strengthen modern payment system, develop

23

access to financial services, supporting the bank system with modern technology and extending the

information exchange system to microfinance institution.

Monetary Developments: Ethiopia‟s monetary policy continued to focus on maintaining price and

exchange rate stability so as to create conducive macroeconomic environment that promotes rapid

and sustainable economic growth. To this end, a mix of direct and indirect monetary policy

instruments has been applied. Which include setting minimum deposit interest rate and reserve

requirement ratio, selling T-bills and monitoring government borrowing from the banking system.

Fiscal year 2010/11 has witnessed broad money supply growth of 39.3 percent, which close to the

annual target of 38.8 percent. The growth in broad money supply during 2010/11 was largely

associated with a surge in net foreign asset by 108.4 percent and expansion of domestic credit by

31.6 percent. Looking at the structure of domestic credit, net claims on government decreased by

8.8 percent and credit to non-government sector expanded by 51.4 percent. These developments

clearly reflect the ongoing policy direction that encourages the private sector as an engine of

economic growth.

As one of its monetary policy instruments, the government has continued to use the selling of T-

bills mainly to mobilize non-inflationary resources to cover government budget deficit and for

monetary policy purpose. Accordingly, the amount of T-bills offered for the fortnightly auction

market amounted to Birr 83.4 billion in 2010/11. The amount of T-bills sold, on the other hand,

was Birr 52.3 billion, that has increased by 25.3 percent over the previous fiscal year. Out of the

total T-bills sold in the fiscal year, the share of non-banks and commercial banks was 61.3 percent

and 38.7 percent, respectively.

From March 2011, the government has lifted the credit ceiling on commercial banks. However, in

order to minimize the impact of liquidity expansion on inflation and inflation expectation, the

reserve and liquidity requirements are maintained at the level of the previous year i.e. of 15 and 25

percent, respectively. At the end of the fiscal year, average annual general inflation rate has reached

18.1 percent. The surge in inflation was mainly, among others, due to imported inflation (via the

import of oil, fertilizer, food items, and construction materials as well as increased price of export

items), unfair trade practices by wholesalers and the accumulated foreign reserve.

Interest Rate Development: The National Bank of Ethiopia decides the level of saving interest

rates of the banks. However, the lending interest rates are decided by the banks taking into

consideration the estimated inflation rates. Following the government‟s policy action of raising the

minimum interest rate on saving and time deposits to 5 percent, all commercial banks have adjusted

both their deposit and lending rates. As a result, the minimum and maximum deposit rates by the

end of 2010/11 have been 5 and 5.75 percent, respectively. Similarly, the minimum and maximum

lending rates by the end of the fiscal year reached 7.5 and 16.25 percent, respectively. As a result,

the average lending rate in 2010/11 fiscal year was 11.8 percent.

24

Financial Sector Performance

The improvement in the quality financial services in the country over the last five years has

facilitated transactions by allocating necessary fund to productive and effective sectors and as a

result helped accelerate economic growth. Fiscal year 2010/11 has witnessed encouraging

developments in the financial services and efficiency of commercial banks. For instance, in line

with the 5 percent maximum set by the government on non-performing loans of banks as a percent

of total loans, the non-performing loans ratio declined from 5 percent in 2009/10 to 2.13 in June

2011, reflecting outstanding improvement in loan quality of banks.

The bank branches have also registered a substantial growth in 2010/11. In 2008/09, there were 565

branches and in 2009/10 the number of bank branches increased to 681 and in 2010/11 to 970. This

indicates that in 2010/11, 289 bank branches have been opened; that has increased the banking

branch by 42.4 percent compared to the previous year. Though the number of bank branches

compared to the number of population who require bank services is still very low, bank-population

ratio improved from 117,474 in 2009/10 to 82, 474 in 2010/11.

Moreover, the amount of new loans disbursed (excluding bond purchases) amounted to Birr 42.2

billion in 2010/11, which is higher by 46 percent compared to that of 2009/10. The share of the

private sector (including cooperatives) in the total loans disbursed stood at 85.5 percent, which

indicates again the priority given to the private sector in the allocation of domestic credit. Of the

total loan disbursed in the fiscal year, trade (domestic and foreign) took 41 percent and industry and

agriculture shared 24.8 percent and 19.5 percent, respectively. Compared to the previous year, loan

disbursed to industry has increased by 111.1 percent followed by agriculture 85.9 percent and trade

29.3 percent. Loan collection by the banking system also scaled up by 21.9 percent annually and

reached Birr 30.6 billion. Private commercial banks managed to collect Birr 18.6 billion (60.8

percent of the total) while Commercial Bank of Ethiopia alone collected Birr 10.2 billion (33.2

percent). This remarkable achievement in loan collection is partly attributed to the regulation of

limiting non-performing loans ratio to be less than 5 percent.

At the end of the fiscal year 2010/11, outstanding loan (excluding corporate bond) of the banking

system reached Birr 73.9 billion, indicating an annual growth rate of 35.3 percent. Out of the total

outstanding credit, 81.5 percent constituted claims on the private sector (including cooperatives)

and the rest is claim on public enterprises. Looking by economic sector, 34.2 percent of the

outstanding credit was owed by trade (domestic and foreign), 27.9 percent by industry and 14.3

percent by agriculture. Year-on-year basis, the share of industry and agriculture surged by 68.8

percent and 55.1 percent, respectively.

The fiscal year also witnessed an important improvement in the banking sector‟s capital

accumulation and deposits mobilization. Accordingly, the total bank capital as of June, 2011

reached Birr 15.95 billion, up by 23.3 percent from the previous fiscal year. Similarly, at the end of

the fiscal year, total deposits mobilized by commercial banks increased by 42.5 percent, compared

25

to June 2010, and reached Birr 140.6 billion. Of which, demand deposit constitute 50.5 percent and

saving deposit and time deposit make up 45.8 percent and 3.7 percent, respectively.

Similarly, the provision of services by Micro-Finance Institutions (MFIs) during the fiscal year

registered strong performance. Accordingly, their capital has reached Birr 2.95 billion from Birr

2.38 billion in 2010 reflecting 24 percent growth against the previous fiscal year. The stock of total

loans extended by MFI also increased from Birr 1.96 billion as at June 2007 to 5.8 at June 2010 and

further to Birr 6.99 billion as of June 2011. Similarly, the amount of savings mobilized by these

institutions increased from Birr 2.7 billion in 2009/10 to Birr 3.78 billion at the end of 2010/11. The

expansion of micro finance services provide notable contribution in reducing poverty and

unemployment in the economy reaching the lower income category of the society, which lacks

access to formal financial services due to demand of collateral.

Modernization of the National Payment System: The government has planned to strengthen and

modernize the national payment system in the first year of GTP implementation period. The main

target for the 2010/11 fiscal year was to introduce modern and secured payment and settlement

system. Accordingly, the government has launched the National Payment and Settlement System to

be effective from May 2011. Besides, the government has partially implemented the core banking

system to enhance the use of e-banking system. Up on compilation of the systems, all branches of

commercial banks will be networked with the National Payment and Settlement System.

To facilitate the banking system, Core banking System related to ATM and other payment

instruments was introduced. In 2010/11 fiscal year, connecting branch banks to the core bank has

started in order to facilitate and make effective the transactions among banks and the payment

systems in the banking process. Moreover, by the end of the fiscal year, the government has also

effectively introduced the National Credit Information System and has incorporated microfinance

institutions into the information system. The credit information system will provide the necessary

and appropriate information about borrowers and lenders position which will avoid information

asymmetry between the parties. It also facilitates exchange of information and reduces risk

associated with loan disbursement.

Domestic Saving Performance

In order to encourage domestic saving the government has increased the minimum deposit rate and

introduced a number of saving instruments. The Ethiopian government bond, NBE bills, house

scheme, saving scheme for construction machineries, and Social Securities are some of the saving

instruments introduced in this fiscal year.

Ethiopian Government Bond: After a thorough research on the modalities and nature of the bond

by the National Bank of Ethiopia (NBE), the Ethiopian Government Saving Bond was issued by

Development Bank of Ethiopia (DBE) to mobilize saving throughout the country. In the places

where there are no DBE branches, the Commercial Banks of Ethiopia and Micro Finance

institutions are used to sell the bond. At the end of the fiscal year, this bond was renamed as the

26

Grand Ethiopian Renaissance Dam Bond and issued in both domestic and foreign currencies

denomination.

National Bank of Ethiopia’s Bill (NBE Bills): The government has introduced Government Bills

in order to mobilize resources for priority sectors identified in the GTP.

Housing Saving scheme: This is a special saving scheme that would facilitate low income citizens

to have their own house. Citizens will be encouraged to save at least 40 percent of the money

needed to build the house and then 60 percent will be availed by Commercial Bank of Ethiopia

(CBE). Currently, CBE and Ministry of Urban Development and Construction are working on the

details of the implementation modalities of the program.

Saving scheme for capital investment: This scheme is designed to alleviate investment capital

problems associated with micro, small and medium enterprises in acquiring machinery and

equipment so as to achieve the GTP targets of industrial development. The scheme is similar to the

housing saving scheme and it will be implemented along with the housing program by the CBE.

Social securities (Pension Fund and Provident Fund): In addition to providing social protection

and safety nets, social security schemes play an important role in encouraging savings and thereby

fostering sustainable economic development. After a thorough study the government has introduced

a social security system that encompasses both public and private sector employees. Accordingly,

at the end of the fiscal year private sector employees will be provided with the opportunity to

participate in pension or provident fund schemes.

External Sector Performance

Total merchandise export revenue in 2010/11 recorded a robust growth of 37.1 percent vis-à-vis the

preceding fiscal year and amounted USD 2.75 billion. This growth is the result of increases in

export proceeds of coffee (59.3 percent), gold (64.1 percent), live animals (63 percent), meat &

meat products (86.2 percent), chat (13.7 percent), pulse (6 percent) and flower (3 percent), which

are primarily driven by the expansion in volume of exports and rising international commodity

prices. Total merchandise export earnings accounted for 93.8 percent of the annual target set in the

Growth and Transformation Plan (GTP) of 2.93 billion USD.

Earning from export of coffee in 2010/11 stood at USD 841.8 million, depicting a sharp growth of

59.3 percent over the preceding year largely due to increase in international coffee price (40

percent) and boosted volume of export (14 percent). Likewise, export proceeds of gold rose by 64.1

percent to reach USD 461.7 million as a result of growth in volume of export (25.3 percent) and

increases in international price (31 percent). Despite a slight fall in international prices, the

revenues from export of live animals increased markedly to USD 148 million, showing a 63 percent

annual growth solely on account of a 66 percent increase in volume of export. Export proceeds

from leather & leather products recovered and expanded by 84.1 percent to USD 103.8 million

largely due to a surge in volume of export products (77.8 percent) as well as a marginal

27

improvement in international prices of the products (3.5 percent). Because of higher volume of

export (increased by 65.8 percent than the previous year) and increased in international prices by

12.3 percent, export of meat & meat products increased remarkably by 86.2 percent and earned

USD 63.3 million.

The revenue from export of chat and flower also rose to USD 238.3 million and USD 175.3

million, growing at 13.7 and 3 percent, respectively. Export earnings from pulse grew marginally

by 6 percent to USD 138 million wholly due to a higher international price (6.5 percent) despite a

small drop in volume of exports (0.5 percent). However, the revenue from oilseeds exports went

down by 9 percent to USD 326.6 million solely because of a decline in volume of exports (15

percent) which more than offset the increase in international price (7.2 percent).

The development of the export sector in terms of relative shares of the export products in the total

export earnings in 2010/11 indicated that coffee accounted for 30.6 percent while gold export

constituted 16.8 percent compared to 26.4 and 14 percent shares respectively in 2009/10. On the

other hand, the share of oilseeds exports went down to 12 percent while that of chat and flower

exports dropped to 8.7 and 6.4 percent of the total export revenue in 2010/11 from 10.5 and 8.5

percent in the preceding fiscal year. Exports of coffee, oilseeds, chat and flower together have

accounted for 57.6 percent, down from 63.2 percent in the previous fiscal year. The impressive

export performance is generally attributed to increases in the volumes of major export products and

to rising international commodity prices driven by the recovery and expansion of global demand as

well as government‟s policy measures to enhance the competitiveness of the export products.

Meanwhile, total import of goods contracted slightly by 0.2 percent vis-à-vis the previous year and

stood at USD 8.25 billion owing to lower imports of raw materials (13.5 percent), capital goods

(4.5 percent) and consumer goods (8.8 percent). Total merchandise imports constituted 84 percent

of the annual target of the fiscal year.

The performance in imports of consumer goods stemmed wholly from the reduction in imports of

non- durable goods while imports of durable goods remained close to the preceding year‟s

performance. Of the non-durable goods, cereal imports fell sharply by 61.8 percent mainly owing

to the reduction in import of wheat (72 percent) by the government. However, fuel import bill

increased sharply by 26.6 percent over the preceding year to USD 1.7 billion largely pushed by the

rise in international oil price mainly in association with the political unrest in the Middle East and

North Africa.

Owing to a significant growth in total export of goods coupled with a small drop in total imports,

the deficit in merchandise trade narrowed by 12.1 percent to USD 5.5 billion from USD 6.3 billion

last year. Export coverage of import also improved to 33.3 percent from 24.2 percent recorded in

the preceding year. The surplus in service account in 2010/11 grew considerably by 50.4 percent

over the preceding year and reached USD 688.1 million owing to higher net receipts from travel,

transport and government services despite a surge in net payments for other services (117.7

percent) as the payments of other services increased strongly (31.6 percent) while that of receipts

declined moderately (14.8 percent) during the review year.

28

Net inflows of private transfers in 2010/11 also increased by 16.7 percent to USD 3.2 billion

largely because of a huge growth in receipts of individual cash remittances (87.4 percent) and a

marginal rise in cash transfers to non-government organization (3.8 percent), this is despite though

the fall in underground and in kind private transfers by 21.3 and 34 percent, respectively. The

current account recorded USD 234.4 million surpluses in 2010/11 in contrast to the USD 1.2 billion

deficits in the previous year due to higher net service proceeds and net private transfers as well as

declining in merchandise trade deficit.

Likewise, the surpluses in capital account surged to USD 2.5 billion, growing by 24 percent relative

to the USD 2 billion surpluses registered in the preceding year, resulting from a strong growth of

long term net official loan disbursements (33 percent) and estimated net foreign direct investment

inflows (30 percent), in spite of a relatively high net short term capital outflows. As a result, the

overall balance of payments at the end of 2010/11 depicted significant surpluses of USD 1.37

billion compared to the USD 316.6 million surpluses recorded in the preceding fiscal year.

Exchange Rate

The official average weighted exchange rate depreciated by 25 percent during 2010/11 and stood at

Birr 16.1178/USD compared to the average rate of Birr 12.8909/USD recorded in the preceding

fiscal year. The official exchange rate of the Birr showed faster depreciation during the year largely

due to the exchange rate adjustment at the beginning of September 2010 in view of improving

export competitiveness and enhancing inflow of private transfers through official channels.

Meanwhile, the average parallel market exchange rate of the Birr weakened by 20.8 percent to

reach Birr 16.5292/USD. As a result, the average premium between the official and the parallel

market rates narrowed to 2.6 percent from 6.1 percent.

29

Table 10. Balance of payment in million US dollar

Item Performance Change in

performance in % 2009/10 2010/11

a b C=(a/b)*100

Trade Balance -6,265.7 -5,506.2 -12.1

Exports 2,003.1 2,747.1 37.1

Coffee 528.3 841.8 59.3

Others 1,474.8 1,905.3 29.2

Imports 8,268.8 8,253.3 -0.2

Net Services 457.5 688.1 50.4

Private Transfers 2,709.7 3,161.5 16.7

Current Account Balance(excl. public transfers) -3,099.5 -1,656.6 -46.6

Public Transfers 1,905.6 1,891.0 -0.8

Current Account Balance(incl. public transfers) -1,193.9 234.4

Non-monetary Capital 1,996.2 2,473.3 23.9

Official Long-term loan (net) 1,043.6 1,387.4 32.9

Disbursements 1,118.1 1,538.9 37.6

Repayments of principal 74.5 151.5 103.3

.. Other public organization 0.0 0.0 -

Direct Investment (net) 956.4 1,242.5 29.9

Short-term loan (net) -3.8 -156.6

Net Errors & Omissions -485.7 -1,340.4 176.0

Overall Balance 316.6 1,367.3 331.9

Financing -316.6 -1,367.3

Reserves (decrease) -304.6 -1,358.9

NBE net foreign asset 57.8 -915.3

CBs net foreign asset -362.4 -443.6

Special financing -12.0 -8.4

unpaid loan 0.0 0.0

debt relief -12.0 -8.4

Others 0.0 0.0 *(-) shows increment and (+) shows reduction

Source: National bank of Ethiopia

30

CHAPTER II ECONOMIC SECTOR

2.1 Agriculture Development

The Growth and Transformation Plan envisages that the agriculture sector will continue to be the

major source of economic growth and that the sector will grow on average at least by 8.6 percent

per annum. To realize this plan, specific targets were set for 2010/11 to increase agricultural

production and productivity, improving natural resource management and utilization, building the

capacity for disaster prevention and preparedness, improving the agricultural marketing system,

promoting the participation of the private sector in agricultural investment and reducing the number

of food insecure households. In light of these targets, the results achieved in 2010/11 are presented

as follows.

2.1.1 Production and Productivity

Crop Production: Total crop production in 2010/11 amounted to 221.8 million quintals. This

exceeds the production level of 2009/10 of 202.46 million quintals by 19.36 million quintals (or by

9.6%). In 2010/11, cereals production amounted to about 191.81 million quintal, accounting for

86.5% of total crop production. In the same period the volume of pulses produced was 20.66

million quintal accounting for 9.3% of total crop production, while oilseeds production amounted

to about 9.36 million quintals accounting for 4.2% of the total crop production in 2010/11. This

rapid growth in agricultural production has a direct and positive bearing on the overall economic

growth of the country. In addition, the increase in crop production is crucial for the country‟s

endeavor to attain food security and increase export earnings.

Crop Productivity: In order to accelerate economic growth, improve food security and increase

export earnings increasing productivity was an important target in the plan period. In 2010/11, the

plan was to increase the average productivity of the major food crops including cereals, pulses and

oil seeds from 15.38 quintals per hectare in 2009/10 to 17.5 quintals per hectare. The actual

performance shows that average productivity of these crops is 16.5 quintal per hectare, which is

1.12 quintal/ha higher than the productivity in 2009/10 and 1.0 quintal/ha smaller than the target for

the same year. Given the increase in crop production, the implication is that land cultivated during

the period has increased compared to what was cultivated in the previous year. Total land covered

by these major crops increased from 13.16 mln ha in 2009/10 to 13.45 mln ha by 2010/11, showing

an increase in 2 percent. In this regard, enhancing crop productivity should be paid proper attention

to augment agricultural production, ensure food security and input supply for local industries and

improve foreign currency earnings.

31

Table 11. Area cultivated and production in 2010/11 fiscal year (in million units)

Crop type Meher Belg Total

Cultivated

Area (ha)

Production

(quintal)

Cultivated

Area (ha)

Production

(quintal)

Cultivated

Area (ha)

Production

(quintal)

2009/10 performance 11.91 189.15 1.25 13.3 13.16 202.46

Cereals 9.64 163.74 1.02 11.87 10.66 175.6

Pulses 1.49 18.98 0.22 1.43 1.71 20.41

Oil seeds 0.78 6.44 0.01 0.01 0.79 6.44

2010/11 performance 12.28 212.81 1.17 9.01 13.45 221.82

Cereals 9.87 183.73 0.93 8.08 10.81 191.81

Pulses 1.37 19.74 0.21 0.91 1.58 20.66

Oil seeds 1.03 9.34 0.03 0.01 1.06 9.36

Performance gap (%) 3 13 -6 -32 2 10

Cereals 2 12 -9 -32 1 9

Pulses -8 4 -5 -36 -8 1

Oilseeds 32 45 200 0 34 45

Source: Central Statistical Agency Bulletin 505 April-September (2011)

In general, cereals had the highest share in terms of total land cultivated and output of major crops

in the plan period. The major production also occurs during the main cropping season (Meher

Season). In 2010/11, of the total 13.448 mln hectares of land cultivated, 80.36 percent was covered

by cereals, 11.76 percent by pulses and the rest 7.87 percent by oil seeds. In terms of output share,

cereals account for 86.5 percent of the total output and pulses and oil seeds account for 9.3 percent

and 4.2 percent, respectively.

The main cropping season accounts for 91.3 percent and 95.9 percent of the total cultivated land

and total production, respectively. The major production also occurs during the main cropping

season (Meher Season). From this perspective, the production and productivity achievements of the

major crops during the main cropping season in 2010/11 are 212.81 million quintals and 17.34

quintals per hectare (cereals 18.61 quintals/hectare; pulses 14.41 quintals/hectare; and oilseeds

9.07 quintals/hectare), respectively. Therefore, it can be concluded that the productivity plan of

17.5 quintal/ha for 2010/11 was achieved. It can also be concluded that the plan was successful

both in terms of productivity and total production.

Table 12. Total area cultivated and production in 2010/11 fiscal year(million units)

Crop type Total area and production Percentage productivity

Quintal per

hectare Area cultivated

(ha)

Production

(quintal)

Area cultivated

(ha)

Production

(quintal)

2009/10 performance 13.16 202.46 100.0 100.0 15.38

Cereals 10.66 175.6 81.0 86.7 16.47

Pulses 1.71 20.41 13.0 10.1 11.94

Oil seeds 0.79 6.44 6.0 3.2 8.15

2010/11 performance 13.45 221.82 100.0 100.0 16.49

Cereals 10.81 191.81 80.4 86.5 17.74

Pulses 1.58 20.66 11.7 9.3 13.08

Oil seeds 1.06 9.36 7.9 4.2 8.83

Source: Central Statistical Agency Bulletin 505 April-September (2011)

32

Crop Research and Input Supply: with the aim of enhancing agricultural productivity, the plan

was to increase the cumulative number of research conducted and technologies produced on crop

production from 27 in 2009/10 to 60 in 2010/11. Accordingly, 82 percent of this plan was realized

at the end of the fiscal year. In addition, a number of capacity building activities to increase the use

of improved technologies produced in the crop research have been accomplished in the fiscal year.

It was also planned to neutralize 6170 hectares of land with acidic soil by treating it with lime. But

only 1470 hectares of land was neutralized due to shortage of lime.

In relation to input supply, it was possible to achieve 86 percent and 50 percent of the plan for

fertilizer and improved seed supply and distribution, respectively. The plan was to supply and

distribute 954,000 tons of fertilizer (Urea and DAP) and 2,067,000 tons of improved seed. But

818,050 tons (86%) of fertilizer and 1028.4 thousands (50%) improved seed have been distributed

in 2010/11. In addition, 3034 thousands of hectares of land were covered with organic manure in

2010/11.

In 2010/11, it was planned to assess cross border new insects and weeds in 270 woredas of the

country. The assessment was conducted on 235 woredas. In addition, quarantine inspection was

made on flower, vegetables, legumes and other crop seeds that have been imported into the country.

Furthermore, inspection was carried out on 352,250 tons of coffee in order to certify the health and

quality of the coffee exported in the fiscal year. In 2010/11, it was planned to destroy 250 tons of

expired pesticides. It has been fully performed.

Improvement in Livestock Productivity and Production: Improving livestock production and

productivity plays a crucial role in attaining food security and strengthening foreign exchange

earnings. Accordingly, in 2010/11, the plan was to increase percentage of improved cattle by 17.69

percent; while the achievement was 12.38 percent (70%). In relation to improving livestock genetic

potential, the plan was to produce 600,000 doses of semen and 450,000 liters of liquid nitrogen in

2010/11. At the end of the fiscal year, 89 percent and 37 percent of the plan was achieved,

respectively. Similarly, of the total targets to produce 459,070 crossbred cattle and 165,265

crossbred milk cows for the fiscal year, 438,337 (95 percent) and 157,801 (95 percent) were

achieved, respectively.

In relation to increasing livestock production and productivity, researches that improve animal

health have also been conducted in 2010/11. It was planned to conduct assessments on 8 cross-

border livestock diseases and the target has been fully achieved. Moreover, it was planned to

examine and follow-up the effects of tsetse fly and anthrax on 1440 animals. Accordingly, 99.8

percent of the plan was achieved. The achievement for the target of vaccinating 45 percent of the

total livestock under the regular program in 2010/11 was 41 percent. In addition, it was planned to

produce 114.4 million doses of vaccines in 2010/11 and the achievement was 107 percent of the

target.

Agricultural Extension Service: With the objective of improving production and productivity,

smallholder farmers, pastoralists and semi-pastoralists received strong agricultural extension

33

services in the fiscal year under review. Accordingly, 9,044,000 smallholder farmers, pastoralists

and semi-pastoralists have benefited from agricultural extension services. Of these beneficiaries, 30

percent were female-headed farmer households and 10 percent were youth farmers. Disaggregating

the beneficiaries by group of farmers, 8,849,000 were smallholder farmers, 144,200 were

pastoralists and the remaining 50,350 were semi-pastoralists.

2.1.2 Natural Resource Conservation and Utilization

In relation to strengthening the natural resource conservation and utilization, one of the targets was

to prepare development plans on 3912 community-based basins for engaging organized

communities in soil and water conservation works. The achievement was the preparation of

development plans for 5554 basins. It was also planned to protect 4383 thousand hectares of land

for rehabilitation in the same fiscal year; the achievement was 4055.1 thousand hectares of land,

which is 93 percent of the target. Furthermore, it was planned to work various soil and water

conservation activities on 4426 hectares of community-based resources. At the end of the plan

period, it was possible to perform conservation works on 4990 hectares of community-based

resources, an achievement of 113 percent of the target. In addition, to improve soil fertility, use of

organic fertilizer was widely implemented during the plan year. Finally, 1.1 million hectares of

land was irrigated using small-scale modern irrigation schemes during the fiscal year, exceeding the

target by 0.1 million hectares.

In 2010/11, it was planned to cover 7.72 million hectares of land with multipurpose trees; the

achievement was the coverage of nearly 7 million hectares of land with multipurpose trees, which

is 91 percent of the target. It was also planned to collect and distribute 4316.6 quintals of tree seeds.

At the end of the plan period, it was possible to collect and distribute 4558 quintals of tree seeds,

which is 105.6 percent of the target. With regard to strengthening biodiversity conservation, various

activities have been performed during the plan period. Of these, the plan was to increase the

number of species or sub species on which analytical research to be conducted from 2 in 2009/10 to

5 in the fiscal year. Until the end of the year, research was conducted on 7 species and sub species,

indicating an achievement of 140 percent of the target.

In relation to rural land administration, it was planned to establish Land Administration Information

System in 54 Woredas. However, the system was only established in 12 Woredas during the fiscal

year. In 2010/11, it was also planned to give a first level land ownership title to 3.09 million

households. By the end of the fiscal year, only 1.21 million households (of which 0.2 million are

female headed households) received the first level certificate. Similarly, it was planned to give a

second level land ownership title to 1.3 million households, but only 600 households were issued

with such a title.

2.1.3 Disaster Prevention and Preparedness

One of the activities performed related to disaster prevention and preparedness was fund raising. In

the plan period, the target was to raise Birr 10 million for contingency budget so as to increase the

34

budget for disaster mitigation and management to Birr 125 million from the total amount of Birr

115 million reserved in 2009/10. It was possible to raise Birr 3.23 million in 2010/11 and increase

the total amount of the contingency budget to Birr 118.23 million at the end of 2010/11. The

achievement is 32.3 percent of the target. It was planned to prepare a disaster vulnerability profile

for 247 woredas in 2010/11 in order to establish and implement disaster prevention and early

warning system that is based on disaster vulnerability. But only 24 percent of the target was

achieved. The low accomplishment is due to delayed start of the work owing to unavailability of

the required resource on time. In addition, it was planned to support 1.1 million people in non-food

items in the same year. Due to a reduction in natural disaster that requires material aid, the support

was given only to 41,000 people.

2.1.4 Private Sector Participation in Agriculture

In 2010/11, support was given in particular to private investors investing in flower, vegetable and

fruit as well as in greenhouse development. Accordingly, relatively better results were registered

mainly in vegetable farm development. However, the participation of the private sector is not as

expected for various reasons. During the plan period it was learned that the support to the private

sector should be strengthened in effective and sustainable way.

In terms of extensive commercial farming, it was planned to delineate 3.2 million hectares of

investment land and transfer 1.33 million hectares of land to the Federal Land Bank during the

fiscal year under review. In this regard 1.89 million hectares was transferred to the Federal Land

Bank. Similarly, it was planned to transfer 1.5 million hectares of land to private investors for

agricultural activities. But only 255,528 hectares of land (17 percent) was transferred to investors

in a transparent and accountable manner during the fiscal year.

2.1.5 Food Security

With regard to food security programs, it was planned to benefit 5,096,680 food in-secured

beneficiaries by engaging them in the Productive Safety Net Program (PSNP) in 2010/11. During

the fiscal year however a total of 7,748,305 beneficiaries benefited from the productive safety net

program, surpassing the target by about 52 percent. The increase in the number of beneficiaries

participating in the safety net program was due to the addition of 2,651,625 citizens from 32

Woredas in Afar Regional state and 32 Woredas in Somali Regional State that were not included in

the initial safety net Program. Furthermore, in the same fiscal year, 233,700 food in-secured

household heads were targeted to be involved in household credit package and asset building

program. However, the achievement indicated that only 167,211 food in-secured households (both

male and female-headed households) accounting for 72 percent of the plan participated in the

program. In addition, 370,980 household heads (both male and female-headed households) were

targeted to attain their food need and graduate from safety net program. However, at the end of the

plan period, only 152,006 households (41 percent) graduated from the program. This low

performance was mainly due to inadequate and/or absence of rainfall in moisture stress areas of the

35

country which were also safety net program areas. Voluntary resettlement program is another food

security and welfare program implemented in the country. In 2010/11 fiscal year, it was planned to

resettle 52,042 voluntary household heads, but only 4,322 household heads from SNNP and

Oromia regions were voluntarily resettled.

In general, various development activities were undertaken in the agriculture sector in 2010/11.

Accordingly, encouraging achievements were registered in the sector. These achievements resulted

in the overall growth rate of 9 percent in agricultural value added. Such a high rate of growth in

agriculture has considerable contribution in attaining food security and reducing number of

households living under food poverty. On the other hand, shortage/absence of rainfall in safety net

program areas as well as in Belg-growing areas in 2010/11 had a negative impact on the

performance of the sector in the plan period. Since shortage/absence of rainfall has close

associations with natural phenomenon and climate change, it is expected that it will be a challenge

to the agriculture sector in the future. Besides, the crop productivity performance which is not

achieved as expected will also be another challenge to the sector.

2.2 Industry Development

The five year Growth and Transformation Plan envisages ensuring faster and sustained

development of the industrial sector and enabling the sector to gradually play a key role in the

economy. To this end, particular emphasis is given to the promotion of micro and small enterprises

as well as supporting the development of medium and large scale industries. Focus is laid on

creating favorable conditions to export oriented and import substituting industries so as to

accelerate structural changes in the sector. In light of the aforementioned directions several

activities were carried out in 2010/2011. The performance of the sector during the fiscal year under

review is depicted as follows.

2.2.1 Small and Micro Enterprise Development

The development of Micro and Small Scale Enterprises is the central focus of the industrial

development strategy. In 2010/11, one of the primary tasks was to comprehensively overhaul the

micro and small enterprises development strategy based on the experience gained so far in Ethiopia

and the experiences of other successful countries. Accordingly, a comprehensive micro and small

enterprises development strategy was devised and approved by the government in consultation with

all relevant actors. In addition, the Federal executive agency responsible for the execution of the

strategy was reorganized to strengthen its institutional capacity. A strategy was also devised to

ensure that all public programs are executed in such a way that they create productive employment

opportunities, nurture skill development and promote the development of competitive micro and

small enterprises. These targets of employment generation, skill and business development were in

particular planned to be realized through the construction of public universities, sugar factories,

integrated housing construction, road development, train network development, power generation

schemes, and cobblestone development activities. Accordingly, detail implementation manuals and

guidelines have been prepared in relation to these strategies in 2010/11.

36

In parallel, industrial extension services and supports were accorded to small business in order to

create productive jobs during the fiscal year. Training was provided to 453,511 employees on

entrepreneurship, business management, handicraft and technology to promote saving. Moreover,

452 hactares of land, 1,463 shades and 71 buildings were delivered to micro and small enterprises

in order to ease their capital constraints. In addition, 983 million Birr was provided in credit to

various micro and small enterprises throughout the country. By providing such supports to micro

and small enterprise, it was planned to create job opportunities for 410,000 people in 2010/11.

Accordingly, around 542,000 jobs were created at the end of the fiscal year. Of the total jobs

created, 53 percent were accounted for women. The survey data from the Central Statistical

Agency corroborate these performances that urban unemployment has declined from 20.4% in

2008/09, to 18.9% and 18% in 2009/10 and 2010/11, respectively.

2.2.2 Medium and Large Scale Manufacturing Industry

Foreign Exchange Earnings

In 2010/2011, it was planned to generate a total of 353.2 million USD in foreign exchange earnings

from the manufacturing industry; but the total amount generated was only 207.7 million USD

during the fiscal year; indicating a 58.8 percent achievement of the target. Compared to the

previous fiscal year, the foreign exchange earnings grew by 75.4 percent. Further disaggregation of

the performance of the sub-sector indicated that the pharmaceuticals and chemical industries

achieved 96 percent of their target, while textile and garment industries attained 73.1 percent of

their target. Leather and leather products and agro- processing industries performance were 57.7

percent and 42.8 percent, respectively.

Table 13. Performance of manufacturing and export in million USD

Sub sector Base year

(2009/10)

2010/11

Planned Actual Actual ( % )

Textile and garment 23.2 85.1 62.2 73.1

Leather and leather products 56.5 180.4 104.1 57.7

Agro- processing 35.2 80.5 34.5 42.8

Pharmaceuticals & chemical products 3.5 7.2 6.92 96

Total 118.4 353.2 207.72 58.8

Source: Ministry of Industry

In relative terms, the foreign exchange earnings of 2010/2011 are better than that of 2009/2010.

Nonetheless, the aggregate and sub-sectoral performances all fall short of the target for the fiscal

year. As envisaged by the GTP, the role of the sub sector is significant in bringing about structural

transformation in the economy and accelerated industrial development. Thus, it is critical to

improve the performance of the manufacturing industry in the future. In this regard, it is also

crucial that the structural problems of technological capability and input supply need to be

fundamentally and urgently addressed.

37

Capacity Building

Strengthening Executing Institution: In light of the role that the industrial sector is expected to

play in the economy during the GTP period, a cabinet Ministerial office responsible for

manufacturing industry was established following the reorganization of government implementing

offices in 2010/21. This organizational development is expected to create a more favorable

condition to support the private sector in general and the private sector engaged in manufacturing

industries in particular. Accordingly, efforts have been made to improve the regulatory and

facilitation environment for foreign and local investment, to provide better support to strategic

industries. Performance management of public enterprises were strengthened further, while the

privatization of public enterprises was undertaken in a transparent and accountable manner

following the legal procedures.

Twinning Program: In order to advance the supports of the Ethiopian Textile Industry

Development Institute to world best practices level, an agreement was signed on twining the

Institute with a consortium comprised of Southern India Textile Research Association (SITRA) and

National Institute of Fashion Technology (NIFT). A proposal on implementation and contract will

soon be signed. Likewise, in order to increase the competitiveness of the leather industry through

capacity building, a twining arrangement program was signed between the Ethiopian Leather

Industry Development Institute (LIDI) and Central Leather Research Institute (CLRI) and Footwear

Design and Development Institute (FDDI) of India.

Benchmarking: With the view to increase and strengthen the competitiveness and capacity of

leather and textile industries, a benchmarking program implementation has begun on planned

problematic areas such as management, productivity, supply chain, marketing, human resource

development and product quality in 14 selected leather and foot wear factories since 2009/10. The

implementation of the program was strengthened by bringing on board additional 4 tanneries and 2

foot wears. Likewise, 7 textile factories are also participating in a similar benchmarking program

with a different consulting firm. The program also enabled technology up-grading of selected

factories. The benchmarking program has resulted in improvements in system developments, new

product development, quality management, human and financial management, maintenance and

property management, environment, and documentation and record management. The

benchmarking program has not however yet significantly improved the performance of the

beneficiary factories in terms of achieving export and profitability targets. Thus it is found

important that the program is strengthened further to ensure that firms improve their export and

profitability performances.

Process standardization: Implementation of quality and product safety and environment

protection rules and regulations has started in selected three agro-processing factories during the

fiscal year. One factory in the pharmaceutical industries, which had been receiving technical

support on good manufacturing practices, was certified. On the other hand, the KAIZEN system

was implemented in 30 factories in leather and leather products, textile and garment, metal,

38

chemical and chemical products and agro processing sub-sectors. The implementation of KAIZEN

system will have the following benefits:

Help to institutionalize workplace ethics;

Enable to create clean working environment, work process division and down time

reduction;

Create an environment where in the management and labor are organized under quality

groups and thereby identify problems, find solutions and implement activities and evaluate

results in teamwork;

Create a culture of continuous change and improvement

Serve as a spring board to maintain results of Business Process Re-engineering (BPR) and

best practices for further improvement; and

Bring about a spirit of national quality and productivity movement;

Human resource development: So as to support the manufacturing sector with skilled manpower

both short and long term trainings have been offered. In this regard, students are trained to bridge

the skill gap in the manufacturing sector in collaboration with various technical and vocational

colleges and universities. In addition, in response to the requests tabled by different industries a

total of 116 managers and professionals attended short term training on various fields.

Investment Monitoring and Support

Since private sector is the engine of industrial growth, the government of Ethiopia has been

supporting the private sector in order to enhance their contribution for the economic growth and

industrialization endeavor. Particularly, the private sector has been encouraged to invest in

activities that link manufacturing and agricultural sectors.

Textile investment: six new and 4 expansion projects, which already started investment process,

were supported and supervised. Two of these projects, though delayed, have already commenced

production. Another private yarn firm with a production capacity of 180 tons of thread per day is in

the process of setting up a yarn factory over 50 ha of land in Kombolcha. The company has also

secured a loan that would enable it to start project implementation activities. In another

development, an agreement was signed to build a factory at Dire Dawa with an investment capital

of ETB 645.4 million. The civil work and 15 percent of the steel work of the factory is completed

according to its plan. Upon completion, the factory will have a production capacity of 50 tons of

yarn daily, 12 tons of twitting, 4 tons of netting and 12,000 meters of cloth. In addition, the factory

is expected to bring technological transfers and export 75 percent of its product.

Leather and leather products investment: In the Fiscal Year 2010/11, support and supervision

was furnished to 18 projects, of which 5 are tanneries, 9 foot wear and 4 leather glove factories. Of

these, 4 tanneries, 2 footwear and a glove factory have started production in 2010/11 whilst the

construction and plant erection of the remaining would shortly be completed and start operation.

These projects will have the capacity to dye 10,500 skins, to produce1040 pairs of shoes and 240

pairs of gloves per day.

Agro processing industry: investment support has been given to factories that are under

construction including oil seed processing, beverages and food processing industries. In relation to

39

the sugar industry, two private projects, one in Western Wollega (Oromiya) and another in

Gambela, have started investment activities. The former, with an investment capital of ETB 225

million, produces sugar and ethanol while the later, with an investment capital of ETB 3 billion,

produces sugar and its raw material, sugarcane.

Import Substituting Industry

Project information and profiles were prepared to promote private investors interested to participate

in caustic soda, soda ash, pulp and paper, soap and detergents, plastic, pharmaceuticals and medical

equipment industries.

With the view to attain the objective of creating manufacturing capacity of 9 million tons of cement

by the end of 2010/11, cement factories which have already transitioned to production as well as

being under construction were supported and supervised. Three cement projects started operation

one of which produces Clinker, an input for cement factories while the remaining two are engaged

each in the production of 150,000 tones and 1.4 million tons of cement.

Regarding cement industry, 12 existing and new projects created an additional production capacity

of 3.65 million ton of cement. 6 cement factories were spotted of having quality problems and were

technically advised to improve quality. 10 additional cement projects were under construction of

which 5projects have (1 new and 4 expansion) completed their plant installation and embarked on

production in 2010/11. Regarding investment in the cement industry, 16 projects took investment

license. Three of these projects were in pre-construction activities while five were inactive though

received construction land. 8 projects did not take land. In general a total of 6.45 million tons of

cement was produced by existing and new factories in 2010/11.

Input Supply and Production Network

Supports were provided to create market chain among factories and find new markets/buyers from

different countries. These supports are reported as follows.

Textile And Garment Industry: After conducting the required analysis: the supply chain of ten

textile and garment factories was networked either in group or on individual basis with other seven

textiles and garment factories based on product and input requirements. In addition, a large private

textile firm has started producing raw materials both for its own production as well as to supply to

other garment industries.

Information and technical supports have also been given to local manufacturers to enable them

identify potential markets, create networks and strengthening existing ones. In addition, after

identifying factories that have no market problem but have shortage of raw materials, support has

been given to create market chain with more than 20 factories so that they can get the raw

materials. On the other hand, measures have been taken to alleviate shortage of cotton by

discouraging export of cotton and arranging access to working capital from Development Bank of

Ethiopia. Price tags are also fixed on local cotton price visa-a-vis world price. Lessons learnt from

shortages faced in 2010/11 have helped the Ministry of Agriculture to mobilize effort towards

cotton development.

Leather and leather products: low quality from local sources, shortage of supply, price hike of

skin and hide as well as high price of finished leather detrimentally impacted the foot wear

40

factories. There are also challenges in supply of chemicals and accessories which affected

production activities in foot wear factories. Cognizant of this and the fact that the input supply

chain is a deterrent factor to the sub sector, the following supports were provided during the fiscal

year.

Studies were conducted on possibilities of importing raw skins and hides from neighboring

countries free of tax as an option to tackle shortage of supply. Sanction levied on import of sheep

hide was lifted. These two measures were communicated to investors. In addition, samples were

collected from Sudan and tested in factories. To address the shortage of chemicals, the government

permitted foreign investors to supply chemicals on the basis of bonded warehouse system and a

foreign company took license and began activities.

Market Network and Expansion

Textile and garment industry: support was given to textile and garment to strengthen the

networks already they established with buyers. During the fiscal year 12 textile factories, which

received product orders, were supported in the form of input supply, container and container

transport, quick customs services and working capital loan from banks so as to enable them respond

timely to the orders. As part of expansion to new market horizons and buyers to the newly

established factories, three local garment firms are networked with an American garment buyer in

an attempt of the latter to fulfill orders it received from the two clients.

Leather and leather products Industry: efforts have been exerted to maintain market networks

established for the foot wear factories. In order to help factories meet delivery deadlines of clients

and thereby attract more orders by wining trusts, supports are given and collaborative works are

being done with banks, customs, airlines cargo, container transport, shipping lines, sea transit,

transport and container companies. Supports mentioned earlier were geared towards redressing

problems on ad-hoc basis lending for process and productivity pitfalls largely due to recurrence of

same problems. Therefore, studies were carried out and strategies drafted to bring about lasting and

sustained solutions and penetrate European market. Implementing the strategies will soon be

started.

Industrial Zone Development

The GTP emphasized the establishment of four industrial zones. Supports were channeled to the

establishment of three zones in different parts of the country. The construction of the Eastern

Industrial Zone at Dukem is about to be completed, while Ethio-Turkish Industrial Zone and the

Kombolcha textile cluster are a bit lagged due to absence of adequate readiness from the investors'

side. Efforts are under way to speed up the implementation through close supervision and support.

Public Enterprises Management and Privatization

A high level of corporate leadership was put in place to monitor and evaluate the performances of

public enterprises. In addition, directives and regulations were developed and follow-up of their

implementation has been strengthened. Some of the activities carried out encompassed corporate

planning, technical and marketing supports, establishment of network and cooperation among the

enterprises, and leadership and professional training. Improvements were exhibited in capacity

utilization, sales revenue and profit and export performance of the enterprises.

41

It was planned to increase the productive capacity utilization of public enterprises from 83 percent

in 2009/10 to 94 percent in 2010/11; 78 percent of the target was achieved. Similarly, there was a

plan to increase profit before tax form Birr 2 billion to Birr 3.31 billion and value added and export

earnings, respectively, from Birr 2.26 billion to Birr 3.39 billion and from Birr 0.05 million to Birr

63.7 million. The achievement is 78.6 percent for profit before tax, 94.4 percent for value added

and 113.7 for export earnings all from 2009/10 to 2010/11.

It was also planned to privatize 24 enterprises in 2010/11 and 100 percent of the target was attained

by transferring 21 public enterprises to private ownership through sale and joint venture as well as

by transferring 3 enterprises to their former owners. Enterprises whose ownership was transferred

through joint venture and sale include Adey Abeba Yarn Factory number 2, now BM Ethiopia

Textile and Garment Share Company. This factory was developed by a Korean investor and the

Government of Ethiopia with a total capital of 13.27 million USD with share proportion of 83

percent and 17 percent, respectively.

To transfer the ownership of Hawassa and Arbaminch Textile Factories negotiation took place

between the privatization agency and investors. The ownership of Hawssa Textile factory was

transferred to Dukem Textile with Birr 37 million while the ownership of Arbaminch was

transferred to Ever Green Enterprise with Birr 31 million.

Table 14.Performance of Public Enterprises

Major activities Base year

(2009/10)

2010/11 Fiscal Year Difference from

base year (%) planned Actual

Value added amount (billion ETB) 2.26 3.39 3.2 41.6

Capacity utilization (percentage) 83 94 78 -6.0

Profitability before tax(billion ETB) 2 3.31 2.6 30.0

Export earnings (Million USD) 0.05 63.7 72.4 _

Source: MoFED

Project Design and Implementation

Rubber Tree Development National Nucleus Project: this was a project conceived by the

government in 2005. Upon implementation the project will have an annual capacity of 6720 (TSR)

tons. A benchmarking experience was gained from Indonesia on rubber tree research and seedling.

An agreement was reached with Jimma University and Jimma Agricultural Research Institute on

rubber tree development. There was a plan to expand the rubber tree plantation field to 1672 ha but

it was possible to secure 4500 hectare of land in Oromiya region; and land sketching activities are

now in progress. Conservation activities have been carried out on 1438.22 ha of commercial rubber

fields previously developed.

42

Caustic soda and soda ash Project: the plan was to complete 10 percent of the construction of a

caustic soda factory having an annual production capacity of 50,000 tones. But the construction

activity has not yet started; the same holds true for soda ash factory.

Coal Phosphate Complex Project: Upon completion, the project will have a production capacity

of 1.5 million tons of Urea and 750,000 tons of DAP. With the view to sustain the project on long

term basis organizational structure was prepared and approved and a study on salary scale of the

office is under preparation. A final document on environmental impact study was prepared after

having conducted a workshop on same. Preparations were also made to obtain the required land for

the project.

Hydrogen Peroxide Factory Project: The project will have an annual capacity of producing 5,500

tons of Hydrogen peroxide (H2O2) upon completion. The project was established within the

premises of Awash Melkassa Aluminum Sulphate and Sulphuric Acid Share Company and

implementation of the project has already begun having so far a 53 percent completion of the

construction of the office building. Technical evaluation of bid proposals for the procurement of

manufacturing machineries was completed and evaluation of bids to recruit a consultant for design

of the factory has started.

Synthetic Yarn Project: According to the project study there will be a capacity to manufacture

12,000 tons of Acrylic and 4,500 tons of Polyester per year. Decision was passed to locate the

project within the premises of Caustic Soda Ash Share Company, though implementation was

delayed due to budget constraint. An announcement was, however, made to look for a partner.

Pulp And Paper Manufacturing Project: In order to study the project, Pulp and Paper Share

Company has developed and tabled for comment a TOR on process of the evaluation and

recruitment of firm for the study. The study recommended that initially producing the pulp from

biogas inputs, and then drawing a clear direction on producing pulp from long fiber pulp by

developing tree plantation in the long run. Accordingly, the existing TOR was amended and the bid

is now floated.

Magnesium Chloride Project: A TOR and bid document to recruit a consulting firm on project

feasibility study was prepared by Ethiopian Mining Development Share Company and the bid is

floated. Preparation was completed to announce a vacancy for the recruitment of project

professionals.

On top of the aforementioned projects, prefeasibility studies were prepared on project ideas geared

towards filling market gaps in welding electrode, malt manufacturing, electrical machineries, wind

mill, water meter, electric bulbs and palm oil.

Challenges

Fiscal Year 2010/11 is the beginning of the implementation of the five year Growth and

Transformation Plan and serves as a foundation to build on experiences and further improve the

43

implementation of objectives of the sector. The overall performance of the sector was encouraging,

but in light of the expected role of the industrial sector the performance needs to be significantly

enhanced further. Therefore, the following gaps need to be addressed in order to speed up the

progress of the sector and register better achievements.

Limited capacity and coordination of support-providing government institutions: because of

the presence of limited capacity of government implementing organizations and attitude gaps on

having synergy and ownership, program implementation and operations lack efficiency. The

distance travelled to redress this attitude gap is not satisfactory and hence there is a need to execute

interventions in a fruitful manner.

Low level of technological and managerial capacity of factories: overall leadership capacity of

factories, productivity and technological capacity limitation, inability to cope up with fierce global

competition in terms of quality, price and time, below par level of commitment of investors,

absence of transitional change to value add on export products at the required scope and speed led

to loss of foreign earnings that would have otherwise been gained by exporting huge amount of

value added products. These revealed the need to strengthen and channel more supports to build the

technological and managerial capacity of manufacturing businesses.

Shortage and quality problems of inputs and supplies needed by manufacturing industries: shortage

of input supplies and quality problems as well as marketing systems with high price on locally

produced raw materials especially cotton and raw skin hampered factories from utilizing their full

capacity. This, therefore, depicts that redressing quality problems and shortage of supply of inputs

is key to increase the contribution of the sector in the economy.

In addition, inability to locally produce chemical inputs for the manufacturing industries; difficulty

to access the chemicals at the required quality standard, type and amount from local markets and

shortage and incapacity to produce at the required amount of industrial spare parts, accessories and

components and procurement of the same using foreign currency at high price in a lengthy process

detrimentally affected their competitiveness, depicting the need to lend especial attention towards

avoiding shortage.

Delay in completion of new and expansion projects: investment projects from various subsectors

and which were presumed to have their construction completed and start export were delayed and

impacted on export trade due to problem of project management, shortage of construction inputs,

weak construction capacity, limited capacity to provide support and supervision, weakness of

follow up. This reflects the importance of finding a research based way out.

In general, a lot has been achieved by the sector in 2010/11 surviving the aforementioned obstacles.

The cumulative effect of the endeavors enabled the sector to grow by 15 percent and contribute

13.3 percent to the national GDP. This growth of the sector by 15 percent surpassed the target set

by the base-case scenario for the 2010/11 by 1 percentage point. This reflects that the sector could

develop even higher and faster by avoiding the constraints.

44

2.3 Performance of the Trade Sector

The trade sector plays a significant role in sustained economic growth in market-oriented economic

system. Raising the efficiency and competitiveness of the sector, strengthening domestic and

foreign investment and trade, eradicating rent seeking behaviors, establishing a favorable

environment for productive investors, promoting a competitive and efficient domestic trade and

distribution system, ensuring consumers‟ rights, strengthening consumer‟s cooperatives, and

strengthening the transparency, fairness and accountability of the legal framework for trade

activities are the main strategic directions of the sector in the GTP period. Accordingly, various

activities have been performed in 2010/11.

2.3.1 Regulatory Activities

The trade sector was established at Ministerial level recently and it has completed developing its

own strategic plan, organizational structure and allocation of personnel. In relation to trade

registration and licensing services, awareness creation was done for 259,584 business communities

through workshop. In addition, based on the new trade registration and licensing system, business

license registration and renewal was made for 4000 licenses. Besides, collection and analyzing of

information on international fuel and oil prices were conducted and accordingly review of fuel and

oil prices has been done during the fiscal year. Furthermore, a document containing 982 business

types has been prepared and distributed to implementing body.

2.3.2 Trade Promotion

Agricultural and industrial sector played important role in the realization of export promotion and

import substitution strategies. Particularly, the export sub sector plays a key role in the economic

growth and raising foreign exchange. Accordingly, around 2.75 billion US dollar was raised from

export in 2010/11 fiscal year. When compared to the performance in 2009/10, it was higher by 37.1

percent. Use of modern marketing system in the agricultural sector was the main reason for better

performance in the export sub-sector. In order to modernize the agricultural market, a regulation

was developed to trade main export commodities (such as sesame, coffee and soya bean) through

Ethiopian Commodity Exchange (ECX) and other selected Primary Marketing Centers. To expand

the foreign markets for agricultural products, exporters have been organized under Specialty Coffee

Association (SCA). This association organizes exhibitions and conferences and makes exporters

participate in international trade fairs. The exhibitions, conferences and trade fairs have helped

identify obstacles in the marketing chains and take necessary measures in due course. Coordinated

efforts were also done by the regional and federal export support and monitoring coordinating

offices to support export sub sector and create conducive environment for exporters.

At the end of 2010/11, about 841.8 billion US dollar from coffee and 238.3 billion US dollar from

chat exports was raised. Compared to the performance in 2009/10, foreign exchange obtained from

the export of coffee and chat in 2010/11 increased by 59.3 percent and 13.7 percent, respectively.

Moreover, 175.3 million US dollar and 31.5 million US dollar was also raised from the export of

45

flowers horticulture & fruits, respectively. The foreign currency earnings from the export of flower

increased by 3 percent compared to that of 2009/10, while the earning from horticulture did not

show any increase. Expansion of land allocated for vegetables and improvement of productivity

and marketing system were the main reasons for the improved performance in the production and

export of horticultural crops. In 2010/11, the country obtained 147.9 billion US dollars from the

export of live animals, though the plan was 189 US dollar indicating the performance of 63 percent

of the plan. It was possible to export live animal because of the increased demand of meat by the

Middle East countries.

2.3.3 Trade Relations and Negotiations

In relation to trade relations and negotiations, the key implementation strategy was to integrate the

country into the multilateral trading system. Accordingly, negotiation has been done to successfully

complete accession to the World Trade Organization. In addition, to start bilateral trade relations,

preparation of documents that help for negotiation was made during the fiscal year. Various

activities have also been accomplished that strengthen bilateral and regional as well as relation with

EU. However, there have been challenges to realize the reform program of the sector.

2.3.4 Challenges

Despite the success, there were challenges faced in the export of goods and services. These

challenges include shortage of professionals; low awareness level by the business community; the

slow progress to improve information and communication system; lack of efficient organization in

regions that implement the reform program and the slow progress of the cooperatives in building

their resource capacity. The following measures were taken to circumvent the challenges

encountered:

1. Following the surge of inflation, measures were taken to improve the distribution system of

consumer goods;

2. Awareness creation activities have been performed to improve the knowledge of business

on new business regulations, and trainings have been offered to enhance professional

expertise at different levels.

3. Create dialogue forum with regional states and use the forum to aware the business

community; and

4. Monitor the warehouses of exporters and provide support in the purchase, sale, storage of

goods and contract writing.

46

2.4 Mining Sector Development

2.4.1 Geo-science Data Coverage and Mineral Exploration Program

The main aim of this program is to collect, generate and disseminate geo-science data. To realize

this aim, various activities have been planned and performed during 2010/11.

The target for the geological mapping coverage of the country (at a scale of 1:250,000) of raising

from 51 percent in 2009/10 to 56.8 percent in 2010/11 has been fully performed. Similarly, the plan

for raising the coverage of the hydro-geological mapping at a scale of 1:250,000 from 42.0 percent

in 2009/10 to 48.3 percent in 2010/11 were successfully accomplished, by actually raising the

coverage to 49.5 percent at the end of the fiscal year. . In addition, it was also possible to entirely

achieve the targets for geo-hazard study at a scale of 1:250,000. With regard to industrial minerals

exploration and evaluation at a scale of 1:50,000 and above was conducted in different parts of the

country to increase the delineated potential areas from 48 in 2009/10 to 51 in 2010/11. In relation

to metallic minerals exploration and evaluation at a scale of 1:2000 - 1:5000, it was targeted to

increase delineated potential areas from 40 in 2009/10 to 48 in 2010/11. The performance indicates

that it has increased to 42 delineated potential areas. Coal and oil shale exploration and evaluation

was conducted in the locations of central part of Ethiopia to delineate potential target blocks from

12 in 2009/10 to 13 in 2010/11. However, there was no any delineated target block secured.

It was also planned to increase the coverage of pre-feasibility study for deep geothermal well

drilling at a scale of 1:20,000 from 6.2% in 2009/10 to 18% at 2010/11. The performance indicates

that it was possible to increase the study to 15 percent. The pre-feasibility study at shallow depth

of 3MW of Tendaho geothermal energy has been entirely completed. The target of raising the

coverage for hydro-geological study from 3400 km2 in 2009/10 to 6,400km

2 in 2010/11 was also

fully accomplished.

2.4.2 Mineral and Petroleum Investment Expansion Program

Various activities were performed under this program. In relation to mineral investment, the plan

was to increase the volume of mineral investment from 12.7 billion birr to 13 billion birr; it was

possible to increase investment in this regard to 13.8 billion birr; indicating the achievement was

higher by 1.1 billion birr compared to the target for the year. It was also planned to increase the

volume of petroleum investment from 238.7 million USD to 292.7 million USD. However, the

volume of petroleum investment was only 105 million USD because one of the companies

investing in the sector terminated its work. Similarly, though the plan was to collect 70 million

from mining revenue; it was collected 104 million birr more than the target. In relation to foreign

currency earnings from export of minerals, the target was to secure 110 million USD from the

export of 4500 KG Gold, 210 tons of Tantalum, 100 m3 marble and 170 tons of pumice. The

achievement indicated that 4376 KG Gold (97.25 percent of the planned), 187.2 tons of Tantalum

(89.11 percent of the target), 131.4 m3 marble (131.41percent of the target) and 240 tons of pumice

have been exported, earning175.2 million USD during the year.

47

In 2010/11, it was targeted to issue 56 mineral exploration and 7 mineral extraction licenses. In this

regard, therefore, 54 mineral exploration and 5 mineral extraction license have been issued.

Similarly, there was a target to issue one license for petroleum exploration and this has been fully

accomplished.

2.4.3 Artisanal Mining and Marketing Promotion Program

The Ministry of Mines in collaboration with different stakeholders has carried out different

activities to formalize informal miners and smugglers by introducing new precious minerals and

transaction proclamation or directive. Accordingly, the target for 2010/11 was to establish 50 legal

artisanal mineral miners‟ cooperative associations in six export mineral producer regions; the

achievement indicated that 53 cooperative associations were established at the end of the fiscal

year. These cooperative associations consist of 1542 male and 227 female a total of 1769 members.

This raises the number of cooperative associations to 400. In addition, it was planned to supply

4606 kg gold to the National Bank of Ethiopia; it was possible to supply 7,296 kg gold to foreign

market by artisanal miners through the National Bank of Ethiopia; as a result 322.5 million USD

has been secured. The same performance has been achieved in other minerals. It was planned to

supply 7,315 kg gemstone mineral to foreign market and 17,146 kg gemstone mineral has been

supplied to foreign market by artisanal miners and 5.6 million USD has been secured. It was also

planned to supply 105 tons of tantalum to foreign market and 124 tons of tantalum has been

supplied by artisanal miners so that 5.7 million USD has been secured. Generally, in the fiscal year

509 million USD has been secured from minerals exported by different companies and artisanal

miners.

2.4.4 Geosciences Sector Research and Development Program

The main goals of the centre for research and development are to undertake problem-driven

research and technology transfer across a broad range of geosciences and introduce appropriate

technologies and new methods in the mining sector. In 2010/11, two new technologies and

working methodologies have been introduced; published documents and books have been collected

and distributed to all stakeholders. It was also planned to accomplish 25% of the national scientific

instruments inventory of the sector and 75 percent of the target has been accomplished. The targets

for conducting integrated Geo-scientific research in Blue Nile basin and integrated project in same

basin and urban geosciences program could not be performed fully. It has been accomplished only

26 percent of the target.

2.4.5 Challenges

In the mining sector, low facilitation and regulatory capacity on the executive body side, slow

progress on the part of licensed investors in terms of implementing their projects, and poorly

developed infrastructure in some mineral rich areas have been identified as major challenges.

Measures have been taken to build the capacity of the relevant regulatory institutions, while the

investment programs in infrastructure development are expected to address some of the bottlenecks

of the mining industry in this regard.

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CHAPTER III

INFRASTRUCTURE DEVELOPMENT

3.1 Road Development

Developing and improving the country‟s road network and building the capacity of road authority

so as to manage and administer the road network were the main objectives of road sector

development plan. Generally during the five year GTP it was planned to rehabilitate 728 km of

trunk roads, upgrading 5023 km of trunk and link roads, construction of 4,331 km of new trunk and

link roads, periodic maintenance of 4700 km of asphalt and gravel roads and routine maintenance

of 84,649 km of road network as well as construction of 71,522 kilometers of new all-weather that

connect all rural woredas. The regional roads Authorities have also a plan to construct 11,212

kilometers of rural roads in the five years period. Based on this plan, the performance of regional

and federal road construction in 2010/11 fiscal year was remarkable.

During the year under review, several new road construction, maintenance of roads, rehabilitation

and upgrading works have been carried out by the Federal, Regional and Woreda level

governments of the country and other development partner. In addition, design, feasibility study,

environmental impact assessment (EIA), civil service reform, and capacity building activities were

accomplished. During 2010/11 the physical accomplishment of federal roads was above the level

planned for the fiscal year except the construction of new roads. The construction of new roads was

accomplishment was 90 percent of the plan, because of delays in the bid process and the

withdrawal of certain contractors.

In 2010/11, the target at country level was to construct and maintain a total of 39,723 Kms by

federal, regional and district road authorities and offices. At the end of the fiscal year, it was

possible to construct 34,795 Kms, indicating that 88 percent of the target and 86 percent of the

previous year performance achieved. Disaggregating the performance by federal, regions and

districts, it can be shown that the federal target was to construct 16,538 Kms; the achievement was

19,159 Kms, 116 percent of the target. Similarly, the performance of the regional road offices was

also very encouraging. The target for regional road offices was to construct 13,357 Kms for the

fiscal year 2010/11. At the end of the fiscal year, it was constructed 14,650 KMs; an achievement

of 110 percent of the target. With regard to the performance of the district road offices, however,

the performance was only 9 percent of the target. The low performance was due to the fact that the

focus of the target was mainly on activities related to preparatory works.

49

Table 15. Performance Road sub sector (2010/11)

Main activities 20010/11 Fiscal Year

Planned in km Actual in km Actual in %

1. Federal roads 16538 19159 116

1.1 Trunk roads rehabilitation 98 93.7 96

1.2 Trunk roads upgrading 295 322.8 109

1.3 link roads upgrading 665 651 98

1.4 construction of link roads 621 556.5 90

1.5 Road maintenance (periodic/heavy) 907 912 100

1.6 maintenance(routine/periodic) 13952 16623 119

2. Regional roads 13357 14650 110

2.1 construction of new rural roads 1917 3768 197

2.2 maintenance of rural roads 11440 10882 95

3. Woreda roads 9568 854 9

3.1 maintenance of woreda roads 9568 854 9

Grand total (1+2+3+4) 39463 34663 88

Source: Ethiopian Road Authority

The national level road length (federal and regional total road length) has increased from 48,793

kilometers in 2009/10 to 52,042 kilometers in 2010/11. There was no all-weather woreda road in

2009/10, but in 20010/11 a total of 854 kilometers of woreda road was constructed. As a result of

the increased road construction and maintenance in the country, road density measured by

kilometers per 1000 square kilometers of area increased from 44.5 to 48.1 and the proportion of

Kebeles connected by all-weather roads increased from 39 percent in 2009/10 to 42 percent in

2010/11 fiscal year. Moreover, roads in acceptable condition (good + fair conditions) increased

from 79.7 percent in 2009/10 to 82 percent in 2010/11 indicating improvement in the quality of

roads. Owing to increase in road density and improvement in the quality of roads, the average

vehicle coverage per day (measured by km of travel per day) has increased from 9.6 million km to

12.1 million km. As a result of all these accomplishments in the road sector, the average travel time

to all-weather roads declined to 3.5 hours in 2010/11 from the 3.7 hours in 2009/10.

Table 16. Targets and Accomplishment for or road outcomes in (2010/11)

Targets/indicators Base yea

(2009/10)

2010/11 Fiscal year Targets for

2014/15 Planned Actual

Federal and regional total road length (km) 48793 51636 52042 64522

Length of woredas all-weather road (km) 04 9568 854 71522

Kebeles connected to all weather roads (%) 39 48 42 100

Average time taken to reach nearest all weather roads(hrs) 3.7 3.0 3.5 1.4

Area further than 5 km from all-weather roads (%) 64.1 57.3 61.8 29.0

Area further than 2km from all-weather roads (%) 83.7 80.0 82.5 61.0

Road density(km/1000km2) 44.5 55.6 48.1 123.7

Road density (km/1000 population) 0.64 0.78 0.65 1.54

Roads in acceptable (Good+Fair Condition) 79.7 81.3 82 86.7

Number of projects handled by domestic contractors 58 61 58 73

Average vehicle km of travel(m/n km) 9.6 10.1 12.1 12.3

Number of car accident death registered per 10,000 vehicle 70 52 72 -

Source: Ethiopian Road Authority

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Road construction in Ethiopia has created domestic capacity in construction of roads. In 2010/11,

the number of projects handled by domestic contractors reached 58 although no improvement

compared to 2009/10 and hence more effort is required to build the capacity of domestic

contractors. With regard to road safety, though it has been planned to reduce the occurrence of

death accident per 10,000 vehicles from 70 in 2009/10 to 52 in 2010/11, on the contrary it has

increased to 72 in 2010/11 fiscal year.

Table 17. Plan and performance of road sector plan in 2010/11

Major tasks (1)

Five year plan (2)

2010/11 Fiscal Year

Actual in km (3) (4) =3/2*100

Federal roads

Major tasks

major roads reinforcement in km 728 93.7 13

major roads upgrading in km 1089 322.8 30

linking roads upgrading in km 3934 651 17

New roads construction in km 4331 556.5 13

temporary road maintenance in km 4700 912 19

Subtotal in km 14782 2536 17

Regional roads

Rural roads new construction in km 11212 3768 34

Subtotal in km 11212 3768 34

Woreda roads (URRAP)

Woreda roads new construction in km 71523 854 1

Subtotal in km 71523 854 1

Over all total in km 97517 7158 7

Source: Ethiopian Road Authority

The accomplishment of road sector has contributed a lot for the economic growth and poverty

reduction registered in the country by both encouraging economic transactions and providing

employment. As a result of road construction and maintenance activities, it was possible to create

employment for 69617 professionals and other peoples.

Road sector has encountered certain problems including increased cost of construction, delays in

construction and low competition among bidders and contractors in the sector. The road sector was

highly affected by the general increase in the cost of road construction. As a result of the inflation,

lower competition among the bidders, slow performance and delays in construction, the cost of

asphalt and gravel road per kilometre increased by 56% and 49%, respectively. The capacity at

regional and woreda level to effectively organize and implement road sector development program

has been very low. The domestic contractors participated in the construction and maintenance had

no sufficient financial and technical capacities. As a result, there have been delays in the bid

process and construction of roads. The government is currently taking measures to reduce the

problem by (1) building the capacity of regional and woreda level road authorities, and contractors

at federal and regional levels; (2) providing advance sufficient payment to contractors; and (3)

providing training to supervisors and advisors involved in the road sector.

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Table 18. Employment created in 2010/11 by road sector

Type of professional Number of people employed

Civil Engineer 1426

material inspectors 869

Forman 1920

surveyor 1052

machine operators 4404

other trained personnel 19666

manual workers 40280

Total 69617

Source: Ethiopian Road Authority

3.2 Rail way Development

In the five year plan period, the target for the sub sector is to build a total of 2395 km rail network.

During the fiscal year under review, concerted efforts have been made to finalize the prerequisite

activities such as surveying; detail engineering design and tender document preparation.

Accordingly, civil engineering design including alignment selection, design work, feasibility study,

environmental and social impact assessment were performed. In addition wide range of capacity

buildings activities were conducted in the rail industry.

3.3 Energy Development

3.3.1 Power Generation

The energy sub sector development policy directions in the GTP period are geared towards

minimizing the gap between the demand and supply of electricity and increase the current lower

per capital consumption and supply of power to the level of export. To promote and increase the

electric power supply coverage, the ongoing rural electrification access program was planned to be

strengthened. It was also planned to ensure efficient, adequate and quality supply of energy and

energy conservation, and make available well designed regulatory activities.

GTP also realized that it is important to increase bio-fuel production and utilization to substitute

fuel imports. To promote and realize the country‟s green development strategy, the ongoing bio

fuel development activities were planned to continue. In addition, raising awareness of consumers

in order to strengthening human capacity in bio-fuel production was planned to be carried out.

Therefore, the major objectives of the energy sector are to provide sufficient and reliable power

sources at all time for economic and social development as well as for irrigation activities, to

accelerate and complete the construction of the ongoing hydropower electric generation projects.

The sector planned to complete pre-feasibility study of five hydropower projects with an installed

capacity of 2780.4 MW and eight hydropower projects with an installed capacity of 6967.4 MW.

However, because of budget shortage they only implement one pre-feasibility and one feasibility

study in 2010/10.

52

Projects that are nearly completed and ready for operation are Fincha-Amertineshi HEPP 97 MW

and Ashegoda 30 MW Wind Power Plant Project. The inspection and testing activities of Fincha-

Amertinsehi HEPP were completed at the end of the fiscal year and 48.5 MW generating capacity

(50 percent of plant capacity) was added to the national grid. Similarly 26.6 MW wind power (88

percent of plan capacity) has been generated from Ashegoda Wind Power Plant project, which

added together, increased the national energy generation capacity from 2000 MW in 2009/10 to

2075.1 MW in 2010/11.

Projects that are under construction include Gibe III HEP project with accomplishment of 46

percent of the total project plan. Adama Wind Power Plant Project was a planned to start

construction of the project at the beginning of the fiscal year but due to shortage of finance the

construction schedule posted to July 2011. Grand Renascences HEP project was one of the biggest

projects started in 2010/11 fiscal year and preliminary activities have been well progressed.

Accordingly, the first level civil works design has started; on the right bank of the river the main

dam excavation was on progress; the main dam and related areas geological investigation and

testing were on progress; the lower alternative road bridge construction from the dam and the river

diversion work were on progress. The lower part environmental and social impact assessment was

done. Genaledawa III HEP project was also planned to start in 2010/11 fiscal year and the

contractor has complete mobilization of logistics to start construction. ChemogaYeda HEP project

has completed the pre-construction activities including topographical survey and hiring of the

consultant. Aysha Wind power plant project has aimed to ameliorate the energy deficient before

Gibe III became operational. Other projects such as Geba HEPP, HalaleWorabesa HEPP,

GenaleDawa Six HEPP, Debreberhan Wind Power and Asela Wind Power projects are also in the

pipeline.

Table 19. Performances of power generation and distribution

Description Indicators Base Year

(2009/10)

20010/11 Fiscal Year

planned Actual Actual ( in %)

Increase generation Capacity MW 2000 2045 2048.5 108

Increase Generation Production GWH 7653 7923 7761 40

Increase Transmission line length Km 11440 12,107 11440 0

400 kv line km 710 710 710 0

230, 132, and 66 kv line km 10730 11397 10730 0

Rehabilitation work on 22 substation % 50 50 100

Rehabilitation work on Distribution line km 450 967 967 100

Under Ground Distribution construction km 100 153 153 100

Increase number of customers ( in millions) No. 2.03 2.13 2.03 0

Increase Electric Access % 41 50 46 56

Loss Reduction % 21.4 18.3 20.97 14

Source: Ethiopian Electric Power Corporation (2011)

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Besides the aforementioned core activities, other activities such as river basin development,

groundwater and hydrology study, alternative energy development and promotion, electric power

operation regulation, bio-fuel development, petroleum downstream operation regulation and

national petroleum depots administration were also undertaken.

3.3.2 Power transmission

Construction of transmission lines related to power generating projects was carried out under the

following projects including (1) Grand Renascence project Transmission line, (2) Gibe - Wolaita -

Akaki Transmission line, (3) Gilgel Gibe II -Wolaita Transmission Line, and (4) Alamata –

Combolcha – Kotobe - Kaliti Transmission Line projects.

Under the Grand Renascences related transmission and substation projects,

1. 500kv transmission line feasibility study and basic design was conducted and

surveying work is on progress.

2. 400 kv transmission line Beles - Grand Renascences design document was

prepared;

3. 345 km transmission line and surveying were completed for 181 km.

4. From Dedesa – Holota a total of 230 km transmission line and surveying

work of 124 km have completed.

5. From Holeta - Sululita a total of 32 km transmission line and a surveying

work have completed.

6. From Holeta - Sebeta a total of 16 km transmission line and surveying work

have completed.

7. The material requirement document preparation for the project from abroad

and local companies is on progress.

Under the Gibe - Wolaita - Akaki Transmission line projects, survey and design work were done to

bring energy produced from Gibe III to the main Grid. The bid process of Gilgel Gibe II -Wolaita

Transmission line projects is underway. That facilitates the energy generation through providing

reliable energy transmission system from Gilgel Gibe II power plant and also bring energy from

Gibe III. Under the Alamata – Combolcha – Kotobe - Kaliti Transmission line projects, the

Combolcha – Kotobe transmission line was fully completed and able to transmist additional energy

from Tekeze HEPP. In 2010/11, 606 power transmission towers building and more than 285.7 km

of wire were installed. In Kotobe – Kaliti transmission line project, foundation work of 81 towers

and erection of 76 towers were completed. To meet the Growth and Transformation plan, 6000 km

additional transmission line construction, many transmission line projects are under construction.

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3.3.3 Power distribution

Electric Access: Access to electricity was planned to reach 75 percent by the end of the GTP

period and had a plan to achieve 50 percent in the first fiscal year. During the 2010/11 fiscal year

703 towns and villages were accessed to electricity indicating 46 percent of increment from the

previous fiscal year. The amount of loss in the previous year was 21.4 percent and it was planned to

reduce it to 18.3 percent in 2010/11. However, it was possible to reduce it to 20.8 percent

indicating that the performance was below target.

3.3.4 Electricity power operation regulation

The main objective of the regulation in electric power operation is to enable the provision of high

quality, sustained and safe electric power so as to help promote investment and bring economic

growth in the country. To this effect, In 2010/11, it was planned to issue and renew 30 electric

licenses, issue 4 electric investments, 200 professional certificates and 14 contractual licenses,

inspection of 4 electric infrastructures, and undertaking study of annual electric price revision

presented by license holders.

The Agency has conducted inspection on the electric generation plants of Awash 1, 2, &3, Gilgel

Gibe 1&2 and MelkeWakenna power transmission lines and electric supply networks in terms of

technical reliability, safety & efficient service delivery. It has also conducted inspection on Sebeta

1&2 substations, transmission lines & electric supply networks of Northern Region. Electric power

usage utilization of eleven industries located in Addis Ababa and Mojo cities was assessed and the

power factor of the industries was identified. On the basis of this, the agency has given written

notifications and copy of the reports to Ethiopian Electric Power Corporation so as the corporation

can take corrective measures. The agency has also developed a draft document that enables

inspection “energy efficiency and conservation” of industries on top of electricity power usage.

Seven investment licenses were issued including the Ethiopia Renaissance Dam project with a

capital of 91.6 billion Eth. Birr, and 24 investment licenses have renewed and 2 licenses have

upgraded. Moreover, 341 electrical contractors were evaluated. Among these, 106 contractors

passed the examination and 87 applicants were awarded professional competency certificate.

Market assessment was conducted on Compact Fluorescent Lamps (CFLs).The implementation of

tax exemption policy on CFLs encouraged importers to involve in the market. This incentive

enabled the consumer to buy CFLs at a lower price. Moreover, importers were allowed to import

equipment that helps to inspect energy. Conversations were made with electric appliances and

renewable energy technologies importers and relevant governmental organizations for the

implementation of tax exemption policy on energy saving & renewable technologies. A workshop

on efficient device of baking „Enjera‟ was held in collaboration with World Bank. The Ethiopian

government and World Bank have agreed on the need to support enterprises engaged in the

production of such a device traditionally known as „Mitad”.

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A walkthrough energy audit has been conducted in 11 energy consuming industries in Addis Ababa

and Mojo areas. Support has also been provided for importers of renewable and efficient

technology. The Agency has prepared the draft Energy Law to encompass the regulation of Energy

Efficiency and conservation activities in a broad spectrum.

3.3.5 Bio-fuel development

In order to foster green development, it is important to coordinating different stakeholders and

promote bio-fuel development, substitute petroleum oil and others energy sources by bio-fuel in the

economic sectors especially in transport and household sectors. In this respect, various activities

have been done by coordinating different stakeholder to obtain bio-fuel land information. The

activities performed include preparation of guideline for bio-fuel land identification, identification

of land data sources and formulation of data collection system. So far, a total of 518483.5 hectare

of land (with 305,981 hectare of land in Tigray Region and 212,502.5 hectare of land in Oromia

region) was identified for bio-fuel production. Better quality and productive castor species was

identified in Wondogent agricultural Research institute. In coordinating with the stakeholders,

domestic bio-fuel seeds and technological package have been identified. In collaboration with

Ministry of Agriculture one jatropha seed package was prepared. Ethanol stove has been adopted

in the laboratory. Some technical problems are also corrected. Coordinated activities have been

done to build bio-fuel blending facilities and provide bio-fuel for blending purpose. One blending

facility was already constructed by oil Libya Company in addition to Nile petroleum. Ten million

liters of ethanol was blended with benzene that saves more than 6 million dollars foreign currency.

Ethanol 10 percent blending was launched in March 2011 for Addis Ababa and its surrounding.

With regard to storage and administration of reserve fuel; in 2009/10, the country‟s capacity of fuel

reserve was 369800 cubic meter. This capacity increased by 60,000 cubic meters in 2010/11. By

2014/15, it was planned to reach 429800 cubic meters, which can serve for 45 days. To achieve this

in 2010/11 improvement and maintenance of depot system was carried out.

Though the energy subsector achievements were remarkable, the challenges, the sub sector faced

during the fiscal year under review include lack of capacity; shortage of cement and delay in

construction works; increased compensation; and inflation and financial shortages.

3.4 Telecommunication

Upgrading the already built ICT network to accommodate emerging latest information

technologies; improve the network quality and expansion of services; ensure all inclusive

telecommunication service delivery and ICT assisted development; build the capacity of human

resource in the sector; finalize on-going network building projects to benefit from latest

information technologies with high quality integrated telecom services package and with

reasonable price are main strategies of sub sector in the GTP period..

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In 2010/11 fiscal year, the Ethiopian Telecommunication Corporation has been re-organized and

replaced by Ethio-telecom. After the re-organization, certain achievements were obtained.

Accordingly, the number of mobile subscribers and telecom density for mobile lines increased from

6.52 million and 8.7 percent in 2009/10 to 10.7 million and 12.85 percent in 2010/11. Similarly, the

coverage of wireless telephone service increased from 50 percent in 2009/10 to 90 percent in

2010/11, while the number of subscribers and telecom density for fixed line declined from 1.36

percent in 2009/10 to 1.03 percent in 2010/11 indicating an absolute decline in the number of fixed

line subscribers.

Table 20. Telecommunication targets and accomplishments in 2010/11 fiscal year

Indicators Base year

(2009/10)

2010/11 Fiscal Year Difference from

the base year Planned Actual

Tele density for fixed line (%) 1.36 1.6 1.03 -0.33

Fixed telephone line subscribers in million 1 1.25 0.854 -0.146

Mobile telephone line subscribers in million 6.52 - 10.7 4.18

Mobile telephone line density (%) 8.7 11.9 12.85 4.15

Wireless telephone service coverage (%) 50 56 90 40.0

Capacity of internal link GB/s 3.255 4.68 5.57 2.315

Internet subscribers (million) 0.187 0.34 0.129 -0.058

Source: Ministry of ICT

Reduction of service charges: The price of sim card (including 15 Birr air time and VAT) has

reduced to 40 Birr. The price of airtime per minute has been reduced and flat national tariffs are set

across all telecom zones. With regard to quality of services, the corporation has made efforts to

enhance the quality though the provision of new services such as EVIDEO and fixed wireless

services although the quality of the services seems deteriorating because of the expansion of mobile

subscribers and damage made on fiber cables.

3.5 Potable water supply and irrigation development

During the Growth and Transformation Plan, the development objectives of the potable water

supply and irrigation subsector are to develop and utilize water resources to fulfill social and

economic priorities, sustainably and equitably, by increasing water supply coverage, developing

irrigation schemes that ensure food security, supply raw material as input to agro industry and

increase foreign currency. The plan for 2010/11 were prepared and implemented with the aim of

realizing these development objectives.

3.5.1 Potable water supply

In 2010/11, the plan was to increase rural, urban and national potable water supply coverage from

65.8 percent, 91.5 percent and 68.5 percent in 2009/10 to 73 percent, 93 percent and 75 percent in

2010/11, respectively. A number of activities were performed to achieve these targets during the

fiscal year. These include digging 93 deep boreholes, 1313 shallow boreholes, 4833 hand dug

wells, to develop 3502 springs and construct 474 rural pipe systems. In total, 11,811 rural potable

57

water supply schemes were constructed. In addition, medium and big maintenances have been

performed for 5,513 rural potable water supply schemes. Moreover, while construction, expansion

and rehabilitation activities of potable water supply schemes for 22 towns were completed in the

plan period, construction of potable water supply for other 127 towns are underway.

As a result, coverage for rural water supply increased to 71.3 percent providing access to 4.9

million more rural people, while urban and national coverage for potable water supply increased to

92.5 percent and 73.3 percent respectively in 2010/11. Though this is an encouraging achievement,

the target of decreasing percentages of damaged potable water supply schemes could not be

realized, which remained at 20 percent at the end of 2010/11.

Table 21. Access to potable water in 2010/11

Region Rural Urban Total

Tigray 60.37 89.66 66.1

Afar 65.7 84.15 68.1

Amhara 89.93 90.62 84.9

Oromiya 70.11 97.33 73.6

Somale 36.11 74.56 41.5

B.G 86.86 87.38 85.0

SNNP 62.98 92.75 66.0

Gambella 73.62 70.12 72.7

Harari 56.48 122.45 92.3

Dire Dawa 74.15 77.76 76.2

Total 71.3 92.5 73.3

Source: Ministry of Water and Energy

3.5.2 Irrigation And Drainage Development

In 2010/11, the plan was to undertake feasibility study and design, construction and rehabilitation

as well as expansion of medium and large scale irrigation schemes. Accordingly, activities related

to feasibility study and design to develop medium and large scale irrigation scheme on 178,820

hectares land were performed in the plan period. In addition, construction of medium and large

scale irrigation schemes to develop 32,034 hectares of land has been performed. These schemes

were to developed by federal and regional governments as well as private sector.

Table 22. Performances of medium and large scale irrigation and water shade development

Activity type 2010/11 Fiscal Year

Planned Actual Actual (in %)

medium & large scale irrigation development feasibility study & design in ha 221510 178820 80.7

medium and large scale irrigation development construction in ha 115565 32034 27.7

medium and large scale irrigation rehabilitation and expansion in ha 2060 - -

Source: Ministry of Water and Energy

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3.5.3 Ground and surface water study and integrated basin development

Ground water study: during the GTP period, the plan was to increase the coverage for ground

water study from 3 percent in 2009/10 to 22.7 percent in 2014/15 using 1:50000 scale. Towards

realizing the five year plan, the target was set to increase the coverage by 4.5 percent annually until

the end of the GTP period. Accordingly, various activities have been performed in 2010/11.

Ground water study activities including digging 32 boreholes and irrigation scheme construction on

1000 hectares of land have been performed. In addition, digging of three boreholes around Mekelle;

one boreholes in Teru; digging of 6 boreholes around Welkite; testing of ground water for 50

hectares and 600 hectares of land for irrigation development around Raya and Kobo-Girana,

respectively; gigging of 16 boreholes in Kobo-Girana as well as digging of 7 boreholes in the rift

valley were performed. These activities increased the mapping coverage using the specified scale

to 4.55 at the end of 2010/11. This was 34.4 percent of the target for the year.

Surface water study: with regard to surface water study, the target was to establish 5 hydrology

stations in different parts of the country and the achievement was 100 percent. In addition, it was

planned to upgrade standards of 85 stations and improve the quality of information collected from

95 stations. The actual achievements indicated that 10 stations were upgraded and quality control

was made on 50 stations, respectively.

Integrated basin development: the main objectives of the integrated basin development are to

ensure the utilization of water resource of the basin based on plan and equitably as well as

rehabilitation of 1,000,000 hectares of degraded land thereby improving the livelihood of

community living within the basin areas. With regard to basin administration, the target was to

increase organization of basin authorities from 25 percent in 2009/10 to 63 percent in 2010/11,

while the achievement was 35.6 percent. In addition, activities related to integrated basin

management have been performed on 28,136 hectares of land in upper Kesem, Mile and Dirma sub

basin and on 16,000 hectares of land in Tana sub basins during the fiscal year under review,

showing 22 percent achievement of the target.

Problems encountered and measures taken:. Among the problems encountered, the major ones

include limited capacity of the private sector (e.g. low technical capacity of consulting firms, low

capacity of construction management, etc.), increase in price of construction materials, unsuitability

of the geological formation of the areas for drilling, delay in compensations which slows down

resettlement activities and slow process for the release of grant aid and credit. To tackle the above

major problems, the following measures were taken:

1. Strengthen the human resource of the sector at all levels including at federal, zonal and

district levels, and even at kebele level;

2. Ensuring that all stakeholders at all levels work in an integrated system and;

3. Drilling materials were transported; compensation expenses were covered by private

contractors.

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However, problems related to the purchase of machine, building the capacity of contractors needs

further attention to reduce the problems encountered in the sub sector.

3.6 Performance of road transport

One of the objectives of the road transport sub sector was ensuring efficient and affordable public

transport system through reduced travel time. Improvement has been achieved in inter-city public

transport services in the fiscal year of 2010/11. Additional 52 buses have come into service and

hence compared to base year there has been some improvement in transport services. Transport

routs have increase from 109 to 119 depicting an increase in accessibility rate by 9.2 percent.

Annual travel kilometer of public transport vehicles has improved to 73,991 km. In line with this,

total number of passengers transported has reached 148.1 million though lower than the planned

(162.6 million passengers). Motorized transport supply in Addis Ababa city reached 20,354,033

passenger seats, which is slightly higher than the planned passenger seats of 20,321,215.

With regard to road safety, though various activities that could enhance awareness of the society at

all level have been performed, improvement in number of accidents death registered per 10,000

vehicles has not been achieved. Accordingly, death accident increased from 70 in 2009/10 to 72 in

2010/11.

3.7 Performance of maritime and dry port

The key focus area during the GTP period is to enhance the capacity of the sub-sector by

strengthening and expanding dry port infrastructure services, facilitate export and import trade

through improved transit corridors utilization, reduce general logistics time and costs incurred in

import and export of goods as well as improve the management of freight vehicle so as to increase

frequency of travel and reduce transportation time and cost. In this regard, the capacity of Mojo and

Semera dry port for facilitating dry cargo increased from 12 percent in 2009/10 to 42 percent in

2010/11although the plan was to increase to 50 percent.

The dry port was underutilized because of the use of uni-modal system in transiting import cargo

rather than using multi modal transport system. In order to improve the utilization of dry port, the

office encouraged to use multi-modal transport system. As result share of imported goods transited

via dry port increased from 8 percent in 2009/10 to 11 percent in 2010/11, which is far below the

target of 42 percent. Similarly, the share of export goods transited via dry port reached 12 percent

in 2010/11 which was nothing in 2009/10. In addition, the share of general cargo imports carried by

the multi modal transport system increased from 2 percent in 2009/10 to 11 percent in 2010/11

while the plan was to reach 4 percent. Similarly the a total length covered by one freight vehicle

has increased to 75,515 km in 2010/11 from 86,758 km in the base year, indicating that 90 percent

of the target has been achieved. The lower performance is due to the reduction in the frequency of

trips because of decline in the volume of import.

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Table 23.Performance of the Maritime and Dry Port services

Indicators Base year

(2009/10)

2010/11 Fiscal Year

Planned Actual

Capacity of Mojo and Semera dry port (%) 12 50 42

Share of imported goods transited via dry port (%) 8 42 11

Share of cargo imports carried by multi-modal transport system (%) 2 4 11

Share of export goods transited via dry port (%) 0 12 0

Source: Ministry of Transport

3.8 Aviation Sector

The main focus of the aviation sub-sector in the GTP period is to expand and improve the quality of

air transport service. To accomplish this, the sector is expected to strengthen its operating capacity,

expand its market and comply with International Civil Aviation Organization‟s Universal Safety

and Security Audit procedures. In 2010/11, an improvement in most of the operating parameters

has been registered. The plan was to increase the available seat km and available ton km from 15

billion and 3.2 billion in 2009/10 to 23 billion and 4.6 billion in 2010/11 respectively. The

performances registered were encouraging, but lower than the targets. Accordingly, 18.3 billion

available seat km and 3.9 billion available ton km were registered at the end of the fiscal year.

Delays of airplane fleet and recurring mechanical and maintenance drawbacks of freighter aircrafts

were the reasons for the performances below the targets.

With regard to expanding the market, it has been planned to increase the number of international

and local flight destination from 58 to 63 and 16 to 17, respectively. In this regard, it was possible

to achieve the target 100 percent. With respect to the aviation safety and security, while the plan for

2010/11 was to increase the rate of compliance of the Ethiopian Aviation to the International Civil

Aviation Organization‟s Universal Safety and Security Audit from 75 percent to 80 percent, it was

possible to increase to 87 percent, which is above the target. On the other side, with respect to

reducing the number of accidents, it was possible to perform 77 percent of the target: the plan was

to reduce incidents per 10,000 flights from 30 to 25, but accomplished only 85%.

Table 24. Performance civil aviation in 2010/11

Indicators Base year

2009/10)

2010/11 Fiscal Year

Planned Actual Actual (in %)

Int‟l & domestic passenger available seat km (billion seat) 15 23 18.3 80

Fright Carried - Available tone km (billion tones) 1.19 4.6 3.9 85

International passenger flight destination (number.) 58 63 63 100

Local flight destination line coverage (%) 16 17 17 100

International civil aviation organization‟s universal

safety/security oversight audit program compliance rate (%)

70 75 87 116

Plane landing and take-off time (minute) 25 15 15 100

Number of private operators/ investors in the sector 21 24 28 117

Source: Ministry of Transport

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3.9 Performance of urban and construction

As Stated In The GTP, The Objectives Of Urban And Construction Development Are

Improvements Of The Living Standards Of Urban Residences By Reducing Unemployment And

Poverty Through Wide Use Of Man Power In Infrastructure Construction And Management;

Improving The Capacity Of Local Construction Industry; Improving The Quality Of Design And

Construction Works; Enhancing The Role Of The Industry Sector In Job Generation And

Expansion Of Local Contractors, Consultants And Suppliers And Building Their Capacity. In

Addition, The Aims In Urban Development, Particularly In Addis Ababa, Are Reducing Urban

Slums, Address Housing (Shelter) Problems, Promote Domestic Savings And Create A Wide

Range Of Job Opportunities By Constructing Affordable, Good Quality And Standardized Urban

Housing For All Urban Residences. Accordingly, To Realize These Objectives Of The Sector, The

Following Activities Have Been Accomplished In 2010/11.

3.9.1 Integrated Housing Development Program

The main focus of the program is to address urban housing problems and generate employment

opportunities. Based on this, the target for 2010/11 was to finalize low cost housing ongoing

projects in the regions and transfer them to beneficiaries as well as to build 30,000 new houses in

Addis Ababa. At the end of the plan period, the construction of 17,171 new houses is already

started and the preparation works for the remaining houses performed. With regard to the ongoing

low cost housing projects in the region, 149,690 houses were under construction, while 87,224

houses are transferred to beneficiaries. The other target was to reduce slum areas in Addis Ababa

from 60 percent in 2009/10 to 54 percent in 2010/11. The performance indicated that it is reduced

to 50 percent at the end of the fiscal year. Moreover, 176,317 employment opportunities were

generated from the housing development. It was also planned to increase number of new and

existing small-scale construction enterprises to 1000..

Regarding capacity building, the target was to prepare new low cost design on competitive bases.

Accordingly, 17 new low cost designs were prepared. Draft manual for residential houses is also

prepared. Laws, regulation and directives to form association for 3 sugar development and one

fertilizer development projects as well as model directives for condominium residential houses are

prepared and distributed to regions. Training was also provided to 266 contractors of sugar

development project and 10 universities. To strengthen agro-stone production centers, support and

follow-up activities have been performed for production centers at Tendaho; BahiDar &Desse

towns (Amhara); Adama town (Oromiya); Hawasa town (SNNPR) and Addis Ababa. These

production centres are currently supplying agro-stones for condominium houses and other

construction projects.

3.9.2 Urban infrastructure development program

Through the implementation of several urban infrastructure programs, cities are made capable of

providing efficient and effective infrastructure and services to dwellers in 2010/2011. To this

effect, 222.2km of cobble stone and 35 km of drainage systems constructions were performed in

different cities. Moreover, a landfill at Bishoftu, liquid waste disposal facility at Dessie, three

modern abattoirs in Adama, Dilla and Jimma are constructed and started providing services to

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communities. Due to the nature of demanding huge investment capital for the construction of land

fill, liquid waste disposal facility and industrial clusters, inability of cities to earmark budget for

such construction and capacity constraints, it is realized that such constructions couldn‟t be

implemented in accordance with plan.

3.9.3 Construction industry development

In 2010/11 it was planned to institutionalize a system capable of producing competent human

resource that could match to and correspond with the expansive work requirements in the sector, to

put in place a suitable system promoting transparency and accountability, to have effective

organizational systems and finalize preparatory works of availing financial inputs. In addition,

preparation of land and infrastructure, producing several number of professionally competent,

developmental and competitive in services and quality contractors, creating a capacity and system

of on time supply of input. To put in place a cost efficient delivery by meeting the deadline of

contractual agreement, preparatory works have been done on best way of doing things, designs,

inputs supply diversification. Preparation of directives and rules to enforce the construction

proclamation was completed and endorsed by council of ministers and the ministry, respectively.

In order to make the construction licenses given by cities and construction supervision works

consistent and strengthen quality control, preparatory works are finalized towards enforcing the

construction proclamation, directives and rules, build capacity of registered professionals,

contractors and consultants. Preparation is also underway to bring technicians and semi-

professions in the sector on board professional competency testing.

A curriculum and 54 instruments for professional competency testing (3 each for 18 professions

under the construction sector level 5) are made ready. In addition, 83 implementers from the

ministry and other organizations were trained on sugar development and construction of

universities. As part of the plan to create contractors and consultants with the capacity to compete

at international level, two level-one contractors in joint venture and three consultants are now

working in African countries. In addition, several medium and small contractors were established;

873 contractors are made to take part in sugar development and 10 in the construction of

universities; 253 consultants are now under process of establishment to engage in Universal Rural

Road Access Program (URRAP); newly established 23 construction material renters joined the

sector.

In order to improve and advance the supply of construction materials as per the plan, research

works are carried out and implementation schemes designed on new cost efficient building

materials and construction technologies. Research works are done on three building materials: non-

burnable clay, living steel and colmex. Moreover, in collaboration with the Quality and Standards

Authority, quality and standards assurance works are done on 10 imported building materials

(cement, iron bar, sanitary materials) for Addis Ababa condominium houses construction. The

implementation of the construction industry sector policy is started to strengthen the regulatory

framework and systems towards promoting efficiency, transparency and accountability. Related

three regulatory frameworks were prepared; a national sensitization workshop on regulatory

frameworks is organized for implementers and stakeholders. 4 directives are also prepared to

improve the licensing process for contractors, consultants, equipment renters.

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CHAPTER IV

SOCIAL SECTOR

4.1 Education and Training

4.1.1 Introduction

Education sector is one of the key focus areas of GTP and MDG. Accordingly, the GTP has the

goal of producing democratic, efficient and effective, knowledge based, inspired and innovative

citizens who can contribute to the realization of the long term vision of making Ethiopia a Middle

Income Economy. The sector focuses on educating and/or training the workforce that is demanded

by industry, particularly the growing manufacturing industry, at all levels. GTP planned to ensure

equitable access to quality education at all levels, TVET and higher education; allowing these sub-

sectors to have a strong linkage to, and interrelationship with, each other. The key objective of GTP

regarding education is also to ensure the achievement of the MDGs. During the first year of GTP

period (2010/11), the sector performance has been encouraging not only in ensuring universal

access to primary education, but also increasing the quality of education. Detail performances of

the education sector are provided under the section general education, Quality of education and

competence, TVET and higher education.

Equity and access to general education

Pre-school enrolment rate: the plan was to increase the gross enrolment rate from 4.8 percent in

2009/10 to 9.5 percent in 2010/11; the achievement in this regard, however, was 5.2 percent this

achievement does not include child to child and zero class data. Disaggregating the achievement by

gender, the gross enrolment rate of boys increased from 4.8 percent in 2009/10 to 5.3 percent in

2010/11, while that of girls increased is from 4.7 percent to 5.2 percent during the same period. The

number of kindergartens increased from 3, 318 in 2009/10 to 3,418 in 2010/11. Accordingly, the

number of children enrolled in kindergartens increased from 341,315 in 2009/10 to 382,749 in

2010/11. However, enrolment rate achievement for both male and female categories fell below the

plan for first year of GTP.

Primary education, including alternative basic education (1–8): primary education participation

rate has increased at an accelerated rate over the past few years. This is mainly due to the

substantial increase in the enrolment rate of children in grade one. Enrolment rate for grade 1

surpassed the envisaged rate of 128 percent to reach 159.1 percent. This remarkable change is

observed in both sexes. The enrolment rate in grade one went beyond the target of 133 percent and

reached 167.1 percent for boys. For girls, the target for 2010/11 was 123 percent, while the actual

enrollment rate reached 150.8 percent. Similarly, the achievement in net enrolment rate for the

same grade target for the year exceeded the target set for the same year. The target was to reach 87

percent but the achievement was 91.3 percent for both sexes; 94.2 percent for boys and 88.4

percent for girls.

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The number of elementary students increased from 15.8 million in 2009/10 to 16.7 million in

2010/11. Similarly the number of teachers increased from 292,130 in 2009/10 to 308,286 in

2010/11, showing an increase in the number of teachers by 16,156. Of the 308286 elementary

school teachers, 47.2 percent are diploma holders.

With regard to school expansion in both rural and urban areas, the achievement was encouraging.

For instance, the number of schools in rural areas increased from 26,951 in 2009/10 to 28,349 at the

end of 2010/11, which showed an increase of 1,398 schools or a growth rate of 8.2 percent. Active

participation of the community both in rural and urban areas has been observed in the construction

and expansion of schools. This commitment has helped in ensuring distribution of schools and

equity at national level.

Similarly, gross enrolment rate in primary education including alternative basic education increased

from 93.4 percent in 2009/10 to 96.4 percent in 2010/11. Disaggregating by sex, enrolment of male

and female reached 99.5 percent and 93.2 percent, respectively. Regarding net enrolment, the

performance increased from 82 percent in 2009/10 to 85.3 percent in 2010/11, indicating 3.2

percentage point‟s increase in net enrolment rate. This increase has been observed in both sexes, in

which case male net enrolment increased from 83 percent to 87 percent and that of female

increased from 80.5 percent to 83.5 percent during the same period. There was an improvement in

narrowing the parity index between male and female enrolment rate in the 2010/11 compared to the

previous year though the target was not fully achieved. In 2009/10, the gap was 6.5 percent, and

this decreased to 6.3 percent at the end of 2010/11.

Region wise, the performance in improving primary school enrolment in 2010/11 indicated very

encouraging in almost all regions. However, in Afar and Somali regions, though encouraging, the

achievement was behind its target. In Afar, the plan was 66 percent but it reached 40.1 percent

whilst in Somali region, gross enrolment rate reached 61.3 percent, below the target of 71 percent,

at the end of 2011, but this figure did not include the data from 14 Woredas of the region. Similar

achievements have been observed in relation to the target for the parity index between male and

female in regions.

Table 25. Performance of primary education enrollment

Indicator Base year

(2009/10)

2010/11 Fiscal Year Target for

2014/15 planned Actual

Primary education (1-8) gross enrollment rate 93.4 96.9 96.4 112.1

Boys gross enrollment rate 96.6 99.4 99.5 114.9

girls gross enrollment rate 90.1 94.4 93.2 109.2

Primary education net enrollment rate 82.1 89.7 85.3 100

Boys net enrollment rate 83.7 90.8 87.0 100

girls net enrollment rate 80.5 88.6 83.5 100

Gender parity ratio of primary education (1-8) enrollment 0.93 0.94 0.94 1:1

Source: Ministry of Education

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The results shown in table 25 above indicate that the GER, NER and Gender Parity ratio targets of

112.1%, 100% and 1:1, respectively are likely to be achieved by 2014/15.

Secondary education (Grade 9-12): With the aim of increasing access to secondary schools,

building of new schools and equipped with the necessary inputs both in urban and rural areas were

among the major activities of the fiscal year under review. Accordingly, the number of secondary

schools increased from 1335 in 2009/10 to 1517 in 2010/11. The annual growth rate was 12.4

percent and the gap between urban and rural areas narrowed consistently. The number of secondary

school students increased from 1.69 million in 2009/10 to 1.75 million in 2010/11. Similarly, the

number of teachers increased from 46060 in 2009/10 to 52731 in 2010/11.

In addition, a strategy has been designed to make secondary school education more accessible.

Based on the strategy, a target is set to meet the secondary school (9-10) access/coverage by 2012

for all illegible citizen in that age category. Since the target is ambitious, a strengthened work is

required to make it materialize. To realize this objective, the target for 2010/11 was to attain a 41

percent (for male 44.5 percent and for female 38.5 percent) gross enrolment rate; the achievement

was 38.4 percent (for male 41.85 and for female 34.9 percent). Regarding secondary level

preparatory education (11-12), the plan was to register 209,000 pupils; the achievement is depicted

in registering 288,216 pupils, indicating an increase of 79,216 pupils from the plan. Compared with

the previous fiscal year, the number of preparatory students increased by 18.6%. In addition, the

participation of girls in preparatory education increased from 35.7 percent in 2009/10 to 42.2

percent at the end of 2010/11. Furthermore, urban-rural and regional disparities in secondary school

access have been narrowed.

Table 26. Performance of secondary education (9-12) enrollment

Indicator Base year

(2009/10)

2010/11 fiscal year

planned Actual

Secondary education first cycle (9-10) gross enrolment rate in % 39.7 41.6 38.4

gross enrollment rate of boys in % 44.0 44.5 41.8

gross enrollment rate of girls in % 35.2 38.5 34.9

Secondary education second cycle (11-12) gross enrollment in number 243080 209000 288216

gross enrollment rate of boys in % 64.3 65 57.8

gross enrollment rate of girls in % 35.7 35 42.2

Source: Ministry of Education

Functional adult education: with active involvement of implementing partners from government

sector offices (agriculture, health, labor and social affairs, women and children affairs), the

Ministry of Education has prepared a guideline on functional education implementation modalities.

The program has already been kicked off at national level; and regions have adopted the guideline

to their contexts. The number of participants in functional adult education has reached 1.2 million

though the target was 9.1 million for the fiscal year 2010/11, indicating an achievement of 12

percent of the target. This initiative requires the participation of community, government offices as

well as other stakeholders, and thus, it requires well-coordinated efforts among these agents.

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Quality of education and competence

In the GTP, an important priority is given to improve and ensure the quality and efficiency of

education at all levels. To realize this priority, the strategic direction is the implementation of

General Education Quality Improvement Package (GEQIP); that encompass six programs namely;

Teacher Development Program (TDP), Curriculum Aligned to Student Assessment and

Examinations, Ethics Program, Management and Administration Program (MAP), Information

Communication Technology, Program Coordination and Monitoring and Evaluation. Accordingly,

various activities have been performed to prepare and implement this package. During the fiscal

year, a number of activities have been accomplished on each of the program.

According to national standards, the primary education (1-8) requires teachers with minimum

qualification from College of Teacher Education (CTE). There has been a rapid growth in qualified

teachers for the upper primary (5-8), but a decline in lower primary (1-4) because teachers

graduated at certificate level have not been considered as qualified for the first cycle (1-4) since

2009/10. Compared to the base year qualified teachers for the first cycle primary schools increased

from 15.5 percent in 2009/10 to 20.9 percent in 2010/11 and for the second cycle from 77.8 percent

in 2009/10 to 84.5 percent in 2010/11 indicating an increase by 4.6 percent and 6.7 percent,

respectively. The reason for the low achievement of primary school first cycle teachers‟ training is

due to the general direction given that it needs to be raised from certificate to cluster diploma level.

To capacitate elementary school teachers, summer and continuous trainings are given. In secondary

schools, the target was to increase qualified teachers to 83.6 percent while the achievement was

86.8 percent indicating 3.2 percent performance above the target.

Pupil-teacher ratio (PSR) in elementary school first cycle (1-4) has been targeted to 55:1 but

performance was 51:1. Similarly pupil-teacher target for secondary school first cycle (9-10) was

39:1 and the achievement reached 35:1.

The pupil section ratio for elementary education (1-8) in 2010/11 remained at 57, which is similar

to the previous fiscal year but it is higher than the target set in GTP by 1.4. To bring this ratio to the

target, more schools will need to be built, or more sections should be created. In secondary school

(9-12), Pupil-Section Ratio (PSR) declined from 64:1 in 2009/10 to 62:1 in 2010/11 fiscal year.

Regarding pupil-books ratio it is known that regional disparities are obvious. Particular problems

related to the delay in printing and distribution of the new books adversely affected the

achievement of the 1:1 target. However, effort has been made to achieve 1.2:1 at all levels. Related

to quality and efficiency, capability of learning assessment national study report for 10th

and 12th

grade released and published as of December 2010 showed 36 percent and 47.8%, respectively.

This performance shows that it is possible to achieve the national minimum standard target of 50%

at the earliest possible time.

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Technical and vocational education and training/TVET

TVET plays a vital role in producing and meeting the demand for middle level skill of the different

industries in the country. Thus, consensus was reached in the GTP that it is crucial to perform

activities that increase participation and expand the implementation of TVET program.

Accordingly, in light of the targets set in the GTP, implementations of activities are well in

progress. In 2010/11, the plan was to increase the number of trainees attending TVET programs

from 353,420 in 2009/2010 to 799,548 in 2010/11; the achievement was 371,347; which is 45.8

percent of the target. Female participation in this regard was 46.2 percent, a bit short of the target of

46.9 percent. Participation was in both government and private owned TVET institutions. Of the

total trainees in TVET, 214,897 were trained in Government institutions while the rest by NGOs.

The strategy has focused on strengthening the link between the TVET and the different industries

in the market, and on providing practical skills so as making the trainees capable of creating self-

employment.

Higher Education

To increase participation in higher education, one of the major implementation strategies stated in

the GTP is increasing the intake capacity of all universities especially in science and technology. In

relation to this, targets were set for 2010/11. Accordingly, total undergraduate participation in

higher education increased from 420,387 in 2009/10 to 447,693 in 2010/11. Substantial

achievement has been observed in the participation of higher education in public universities in

2010/11. The plan was to increase undergraduate regular participation from 185,788 in 2009/10 to

196,893 in 2010/11; the achievement was 211,197. However, the proportion of female

participation in higher education regular program slightly decreased from 26.5 percent in 2009/10

to 25.6 percent in 2010/11, implying the need to exert maximum efforts to meet the 30.2 percent

target. Regarding the post graduate program, the intake in 2010/11 was 13,881 and the share of

female was 13.5 percent a bit short of the target but still encouraging meeting the 14.04 percent

target. During the fiscal year a total number of 75,348 undergraduate students graduated at national

level.

During the fiscal year 6,250 students graduated at post graduate level. Furthermore, with the view

to increase the intake capacity of in the undergraduate and graduate programs, the number of public

universities has increased to 32. The new universities have started admitting students. The public

universities are also made to admit students in line with the 70:30 strategies between science and

technology on one hand and social science on the other. The private sector is also playing its role in

this regard.

4.2 Health Sector

Expansion of quality services is the main strategic theme of the health sector during the GTP. In

line with this general direction primary health prevention involving active participation of the

community and supported by Health Extension Program (HEP) focuses on expansion of quality

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services. The main targets of the 2010/11 Fiscal Year were set with the objective of strengthening

the health system that ensure improving mother‟s health, reducing infant mortality and preventing

the spread of HV/AIDS, malaria, TB and other communicable diseases. The targets focus on these

three strategic directions and the following ten strategic objectives. The ten objectives are

improving access to health services; improving community initiative/participation and ownership;

improving resource mobilization and utilization; improving public health emergency, preparedness

and responses; improving pharmaceutical supply and services; improving regulatory system;

improving evidence based decision making, harmonization and alignment; improving health

infrastructure; and improving human capital and leadership. Accordingly, the performance of the

targets for the fiscal year 2010/11 is presented as follow.

Community initiative/participation and ownership

With the close collaboration of the regional health bureaus, procedures are developed to organize

critical mass in the execution of the Health Sector Development program, while a consensus is also

reached with them to develop and implement an integrated plan during the fiscal year. To

strengthen the critical mass in Health Sector Development key stakeholders including cabinets, the

health sector leadership at various levels, and leaders of women, and youth were made to

participate at several platforms.

As part of the initiative to have two health extension workers (HEW) per rural kebele, a total of

34382 health extension workers were deployed in rural areas. In addition, 1278 health extension

workers were trained and deployed as gap fillers. Furthermore, 1322 prospective heath extension

workers were undertaking a training program,. Initiatives were also taken to set up health

extension program in urban areas based on the lesson learned from the rural health extension

program. In this regard, the number of urban health extension workers increased to 3916 in 2010/11

from 3401 in 2009/10. This increased the coverage of urban health extension service to 75.2

percent of the required 5205. Moreover, awareness raising activities were performed for health

workers in pastoral areas about the health extension program.

Health Infrastructure and access to health services

In relation to improving health infrastructure, 903 new health posts (HP) were constructed in

2010/11. This increases the total number of HPs available in the country from 14,192 in 2009/10 to

15,095 at the end of the fiscal year. To realize full coverage of basic health service to Ethiopian

people, it requires 3,299 health centers. Towards achieving full coverage, 518 new health facilities

were constructed in 2010/11. This increased the number of health centers from 2,142 in 2009/10 to

2,660 at the end of 2010/11.

Regarding health institution standards preliminary design that would serve for general hospital has

reached 20% and standard for primary hospital upgrading has been completed and approved.

Moreover urban health center standard architectural design reached 90%.

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Family planning Services

During 2010/11, contraceptive acceptance rate has reached 62 percent, while, the Demographic and

Health Survey (DHS) of 2011 revealed that the contraceptive prevalence rate has reached 29

percent. Training was provided to 27,744 health extension workers, and 2,336 health extension

supervisors to strengthen the family planning services.

Antenatal and Postnatal Services: It was planned to increase ante natal service coverage to 53

percent and the service was provided to 2,404,279 mothers leading to an achievement 82.2 percent.

Furthermore, post natal service coverage increased from 36.2 percent in 2009/10 to 42.1 percent in

2010/11 by providing the service to 1,231,099 delivering mothers. The percentage of deliveries

attended by skilled health personnel increased from 15.7 percent in 2009/10 to 16.6 percent in

2010/11.

Reducing maternal and child mortality

According to the 2011 Ethiopian Demographic and Health Survey (EDHS) result, less than five

child mortality rate dramatically declined from 123/1000 in 2005 to 88 in 2010/11, while infant

mortality rate per 1000 decreased from 77 to 59 in 2010/11 in the same period. Many interventions

were undertaken to realize the aforementioned achievements. This includes increasing full

immunization coverage of infants to 74.5 percent in 2010/11. However, according to the same

survey maternal mortality, MDG 5, did not show a decline and remains at 673 per 100,000

although other maternal health related indictors have shown good progress. The result indicates that

achieving MDG 5 will be a serious challenge and needs a serious attention.

Table 27. Major plan performance of the health sector in 2010/11 fiscal year.

Indicator

Base year

(2009/10)

2010/11 fiscal year Target for

2014/2015 Planned Actual

Maternal mortality rate per 100000 673 (2005 EDHS) 503 676 (2011 EDHS) 267

Contraceptive prevalence rate (%) 14 (2005 EDHS) 45 29 (2011 EDHS) 66

Antenatal service coverage (%) 31 53 82.2 86

Births attended by skilled health personnel (%) 15.7 34 16.6 62

Postnatal service coverage in (%) 36.2 52 42.1 78

Infant mortality rate per 1000 77 (2005 EDHS) - 59 (2011 EDHS) 31

Under five mortality rate per1000 123 (2005 EDHS) - 88 (2011 EDHS) 68

Source: Ministry of Health

Nutrition program: In order to strengthen the National Nutrition Program (NNP), the focus was

on reducing malnutrition and improving child feeding as well as on implementing Vitamin A

supplementation and de-worming with integration of the campaign activities into regular routine

services. During the fiscal year under review, 12,453,955 children aged 6-59 months received the

first dose of Vitamin A supplementation, which increased the coverage to 91.4 percent at the end of

the fiscal year. This achievement is better than what has been achieved in 2009/10, during which it

was able to provide the supplement to 10.7 million children. Similarly, a de-worming service using

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Albendazole was provided to 8,831,518 children aged 2-5 years. In 2010/11, more than 90 percent

of hospitals and 16 percent of health centers managed severely malnourished cases at in-patient

setup. This increased access to nutrition services resulted in the treatment (in out-patient and in-

patient settings) of 266,924 severely malnourished children, of which 81.8 percent were cured.

During the same fiscal year, 2,500 tons of therapeutic food were procured and distributed to all

regions. Nutritional achievements of children have been improved over the first year

implementation of the GTP. About 46 percent and 11 percent of the children were stunted and

wasted in 2009/10, respectively. These figures drop to 44 percent and 10 percent in 2010/11.

Tuberculosis prevention and control (TPC): in relation to TPC, the main target was to

conduct TB test on sputum of 139,235 suspects. Accordingly, the bacteria causing TB was found

on 5,238 (36.8 percent) samples; depicting an attainment below the 70 percent target in the MDG.

Malaria prevention and control: to prevent and control malaria incidence, various activities

were also performed during the fiscal year 2010/11. Based on the target for this fiscal year, 4.2

million Long-Lasting Insecticide-Treated Nets (LLINs) were distributed to replace the old ones.

With regard to vector control, 67.0 percent households living in malaria villages were sprayed with

anti-malaria spray. To facilitate the process of spray, 5,825 spray pumps and 528 spare parts were

distributed to different regions. For early detection and treatment of malaria cases, a total of 16

million Rapid Diagnostic Test (RDT) kits and drugs enough to treat 11 million patients were

planned and a total amount of 13,168,962 Rapid Diagnostic Test (RDT) kits and 5,058,582 strips of

Coartem and chloroquine were procured and distributed to regions.

Hygiene and environmental health services: a manual on construction of latrine and usage of

latrine was prepared, while a total of 299 health extension workers and supervisors were trained on

WASH in collaboration with the Ministry of Water and Energy. In addition, awareness creation

was made on methods to control domestic water pollution and food hygiene using public media

such as TV and FM radio programs. Construction of latrines was also performed during the

reporting fiscal year. Accordingly, the number of latrines increased from 12.7 million in 2009/10 to

14.7 million in 2010/11, which increased sanitation coverage from 75.0 percent to 86.0 percent in

the respective years.

Improving quality of health service delivery

With the view to realize the Ethiopian Hospital Management Initiative, various training guidelines

and standards were developed. Trainings were provided on the guideline for 500 professionals and

Executive Officers (CEO) of hospitals. Training was also provided on infection prevention for 80

professionals and on basic nursing care for 1,000 nurses. Thus, nationwide, 92 hospitals are

currently implementing the Ethiopian Hospital Management Initiative. On a related activity,

preparation is also underway to embark on training on the implementation of the Health Centre

Reform Initiative at selected 45 health centers.

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As part of the initiative to institutionalize a 24 hour service provision at hospitals, a private health

provision scheme was developed in public hospitals. In addition to attaining 24 hours service, the

scheme is developed with the intension of ensuring all professionals at all levels are benefitted and

to maintain highly experienced professionals in the public sector. A directive and a manual on this

private health provision scheme were drawn and implementation was started at hospitals under the

Addis Ababa city administration health bureau and the federal hospitals in this fiscal year.

With the aim of reducing maternal death through strengthening emergency medical services, a

target is set to avail one ambulance per district in all 801 districts of the country. Accordingly, 150

ambulances were distributed to districts during 2010/11. In order to ensure the sustainability of

emergency medical services, a Memorandum of Understanding was signed between Regions and

the Ministry of Health with all regions to maintain this ambulance service using their own budget.

Training was provided on ambulance services and pre-hospital emergency medical services for 25

professionals and Paramedic Technicians. In a related development, a total of 47,000 units of

blood were collected from blood donors to strengthen the blood service.

Regarding Out Patient Department (OPD) service, it is managed to reach 24,997,125 out of the

planned 81,911,074 people making the attendance per capita 0.3. Attempts are being exerted to

attain targets set by World Health Organization (WHO) by raising awareness of societies. Various

activities were also accomplished to help national laboratories to upgrade their service quality and

get accreditation using WHO/AFRO quality assurance standard. In doing so, initial baseline

assessment was done on 45 laboratories. Feedback was provided, guidelines and directives were

developed and necessary amendments and corrections were made. Among the laboratories, three

on-job trainings were given for 24 laboratories while two training sessions and one on-job training

were given to 21 laboratories.

Public health emergency preparedness and response

In the fiscal year, different kinds of epidemics and public emergencies were recorded in different

regions. Since capacity for controlling public health hazards was strengthened (through timely

provision of epidemic alert), it was possible to respond and take necessary measures to these

epidemics at the right time. In order to undertake vulnerability assessment and identification of

health risks and to prevent epidemics and other public health emergencies, risk profile of major

epidemic-prone diseases (acute watery diarrhea, measles, malaria, and meningitis) was prepared

and data were made available to concerned stakeholders. A system was designed and put in place,

enabling easy tracking of the type and quantity of different drugs, medical supplies and equipment

stored at warehouses for epidemic response purposes. Based on this tracking system, gaps in drugs

and medical equipment needed for management of major epidemic diseases were identified and

distributed to regions.

For health hazards (acute watery diarrhea, measles, malaria, meningitis, floods and malnutrition)

identified using data from the baseline assessment and the surveillance system, a humanitarian

requirement document was prepared and disseminated to concerned stakeholders to solicit their

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support. Two disease control guidelines (for acute watery diarrhea and malaria) were prepared and

are ready for printing. Training on public health emergencies as well as on these guidelines was

given for 368 (295 males and 73 females) public health emergency management experts drawn

from various regions.

Pharmaceutical supply and services

To improve pharmaceutical supply and services, targets were set on major activities including

purchase and distribution of medicines and medical equipment; construction and maintenance of

warehouses and equipping with the required facilities; training of professionals and establishment

of Drug and Therapeutics Committees. The target for procurement of pharmaceuticals and medical

equipment with Birr 3.62 billion in 2010/11 is fully performed. In addition, pharmaceuticals and

medical equipment worth of Birr 3.6 Billion were obtained from aid agency. Out of the total target

of Birr 5.5 billion worth of pharmaceuticals and medical equipment planned for distribution, it was

achieved to distribute Birr 5.1 billion worth throughout the country in 2010/11.

Moreover, the target for construction and maintenance of warehouses has been started during the

fiscal year. Regarding health facility, though the target was to equip 180 health warehouses,

warehouses of 271 health facilities have been equipped with modern racks, shelves, ladders and

pallets and forklifts at the end of 2010/11. Sixteen heavy trucks have been procured and deployed

into fleet operations. In order to ensure rational drug use, training was given for 800 health

professionals drawn from all health facilities in addition to establishing Drug and Therapeutics

Committees (DTC) in 474 health facilities, of which 350 have prepared their own list of drugs and

medical equipment.

Evidence-based Decision making by enhanced harmonization and alignment

With active involvement of state and non-state actors, Health Sector Development Program

(HSDP) IV was prepared and promoted to major stakeholders. Training of trainers (ToT) was also

provided for 256 professionals drawn from districts. During the fiscal year, training was also given

to 1,189 supervisors and 30,169 basic health professionals on the newly re-designed Health

Management Information System (HMIS). Totally 1,185 (41.6 percent) health facilities and 89

(65.5 percent) hospitals has already embarked on the implementation of CHMIS. In order to initiate

rural Family Folders (FF) in all Health posts (HPs), guideline on rural FF was finalized and training

was given for 1,166 health extension supervisors and 2,524 health extension workers. FFs adequate

for 6.1 million rural families were distributed and 1,309 HPs have started to implement the rural

FF. Regarding urban FF, the design was finalized and piloting is underway in Addis Ababa.

Human capital and leadership

With the view to the increase intake capacity of medical schools and improve the availability and

equitable geographic distribution of medical doctors, a New Medical Education Initiative in

selected five regional hospitals is on verge of commencement. In relation to this initiative, various

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activities including preparation of procedures, awareness to stakeholders and selection of hospitals

have been performed in this fiscal year. In addition, procurement of essential materials started in

the same fiscal year.

With the view to build the capacity of universities which could provide training on Integrated

Emergency Cervical Surgery, financial support was given and of those 217 students now on

training, 47 are presumed to complete the training in 2011/12. In order to start the accelerated

training of nurse midwives, curriculum has been prepared and the training of 1,634 trainees started

in six regions. Supportive supervision has been made and feedback given to the 14 Health Science

Colleges. To start training of nurse anesthetists at Diploma-level, training curriculum has been

prepared and transmitted to Regional Health Bureaus (RHB) that have the capacity to train this

category of health professionals. Moreover, Addis Ababa University started to train 15 students in

emergency medicine at postgraduate level.

In relation to building the capacity of health extension workers, in order to raise the occupational

grade and units of competence of health extension workers to enable them to provide quality health

services, the plan included evaluation of the occupational grade of the health extension workers and

preparation of a training curriculum. Accordingly, a document comprising of level IV unit of

competencies and level IV curriculum was prepared and, by giving training for 134 instructors and

implementers, the training of 1,087 trainees has started in six regions. A total of 1,978 health

professionals who graduated from higher education institutions have been deployed to various

Regional Health Bureaus and federal hospitals. Draft guideline on motivation of health workers and

retention mechanisms was prepared and sent to regions for comments.

In general, primary health service coverage reached 96% in 2010/11 from 89% in 2009/10.

Similarly, in 2010/11, infant mortality rate, Under Five Child Mortality rate and HIV/AIDs

prevalence rate reached, 59/1000, 88/1000 and 2.3%, respectively. But Maternal Mortality Rate

676/100,000 remains a challenge and it needs comprehensive effort. Even if achieving all MDGs is

possible, achieving MDG 5 (maternal) is very challenging and needs a very aggressive intervention

through mobilization of all stakeholders, women‟s group being at the center of the movement.

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CHAPTER V

CAPACITY BUILDING AND GOOD GOVERNANCE

5.1 Public Sector Capacity Building

During the implementation of the GTP, main strategic directions in the capacity building component

include a concerted and integrated effort to enhance the capacity of the civil service to implement

government policies and strategies effectively and efficiently, and scaling up of best practices.

Hence, the three key strategic directions are: establishing government structures with strong

implementing capacity, ensuring transparency and combating corruption from its source, ensuring

public participation and incorporate and implement cross cutting issues in the civil service. The

major accomplishments during the fiscal year under review are described as follows.

Improve the leadership capacity of top management: during the GTP period it was planned to

enhance the leadership competence of top management by offering short and long term trainings.

Accordingly, training on key government policies and strategies as well as leadership competencies

have been delivered top leaders at all levels to enhance their leadership capacity, strengthen the civil

service, and ensure zero tolerance to rent-seeking practices in the public sector. These training

programs are expected to have a significant contribution to enhancing the leadership skill and filling

the capacity gaps of managers at all levels. Moreover, the training programs are expected to help

the leadership acquire the necessary leadership competencies to mobilize the wider civil servants by

bringing attitudinal changes through visioning and inspiration. These in turn are expected to

contribute to deepen democratic governance and improve service delivery in all public sectors. A

number of measures are also taken to institutionalize and sustain this leadership development

program. Accordingly, the Leadership Capacity Building Institute is established in the Ethiopian

Civil Service University, and has started admitting students who are young leaders working in

different institutions at various levels of government.

Enhance leadership and implementation capacity of middle level management and executives:

with respect to enhancing the leadership and implementation capacity of middle level management

and civil servants, several capacity building short and long term trainings were delivered according

to the plan. Some of the topics of the short term trainings, which were delivered, are: monitoring and

evaluation on the implementation of the civil service reform and awareness creation on the

government's policy. These trainings were targeted to bring improved reform in the civil service,

zero tolerance to rent-seeking and corruption, and to realize reform task forces in the civil service.

To approve and implement human resource development and human resource planning policy, the

new Human Resource Development Policy (HRDP) draft document has been prepared by reviewing

the existing manuals and adding inputs obtained from other countries' experience. In addition, the

Human Resource Study Guideline (HRSG) draft document has been prepared. Discussion was

conducted to enrich the draft HRDP and HRSG documents with executing agencies and regions.

Based on the feedbacks from the discussions, improvements were made on the draft documents. The

document will be submitted to the respective government body for its official approval.

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Improving the government’s institutional setups and their working system: Since business

process reengineering had been implemented by many institutions, assessment studies have been

conducted to identify the gaps that have been observed during the implementation and to further

improve organizational setups and working system. Following the 2010 national election, the new

government has reorganized public bodies to realize the GTP. Accordingly, the former Ministry of

Trade and Industry is restructured into two institutions namely the Ministry of Trade and the

Ministry of Industry. The newly established institutions have revised their BPR studies and started

implementing.

Similarly, the Ministry of Civil Service was established by merging the Ministry of Capacity

Building and the Federal Civil Service Agency. To accomplish its mission and responsibilities, it

developed its own plan by integrating the plans prepared by the previous organizations. Besides, the

Public Sector Capacity Building Program‟s (PSCAPS) was revised according to the duties and

responsibilities of the Ministry. The Ministry gave focus on reform activities, mobilizing the civil

servants to bring dramatic improvements in the civil service, ensure zero tolerance to rent-seeking

attitude and practice, as well as deliver effective and efficient services to the customers.

The emerging regions had finished the business process reengineering study in different sectors and

some of them started pilot tests of the reform. Concerning Balanced Score Card (BSC), federal

executing agencies are at different implementation stages of the systems although some of them

have started evaluation of the BSC implementation. With regard to regions, they have provided

trainings on BSC. In some regions the BSC has been cascaded up to the team and further devolved

up to zones and woredas along with monitoring check list. On top of that one region has drafted

evaluation guideline. To test the BSC‟s system whether it is possible to evaluate individual worker

or not, assessment study of the experiences and practices of pioneer institutions has been conducted

where the preliminary result indicates that it is possible to evaluate each worker in the organization.

Implement effective, efficient, transparent, and accountable government financial system: The

budgetary federal institutions have prepared their 2011/12 budget as per the program budgeting

techniques. A Proclamation and a Regulation are drafted for the establishment of National Auditors

and Accountants Board and a Training Centre that ensure financial reporting based on international

standards of accounting and auditing. Training on Integrated Financial Management Information

System (IFMIS) has been provided to staff of Government institutions. To enforce public

expenditure administration and control, different finance and property administration guidelines and

regulations were prepared and implemented. In addition 1072 federal government experts are trained

in cash management, government accounting system, internal audit, information system

management, and public property and stock management. In addition, various public participation

and education measures were taken to enhance the financial transparency and accountability at all

levels of government. Out of 164 government office, 149 are audited during the fiscal year.

Enhance the capacity of capacity building institutions: the Ethiopian Civil Service University

(ECSU) and the Ethiopian Management Institute (EMI) have continued the provision of consultancy

services to deepen the civil service reform program in country. The Ethiopian Civil Service

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University has organized the model work experience in BSC on how to evaluate individual

performer in institutions. On top of that, the Ethiopian Civil Service University and the Ethiopian

Management Institute have provided specialized short-term trainings on civil service reforms. In

some regions, similar training institutions provided training on civil service reform although the

majority of them are under preparations. Some other universities are also involved in strengthening

the reform in some areas of the country where the EMI is not operating. The ECSU and EMI have

conducted experience sharing and knowledge transfer trainings with National School of Governance

of Britain.

The Ethiopian Civil Service University continued to provide specialized training in the fields of Tax

Administration, Urban Development and Management, Public Financial Management and

Federalism. The University graduated about 811 (114 women) students in different fields and level

in this fiscal year. These specialized trainings are expected to improve the service delivery in the

government offices and to realize economic growth by increasing the share of government revenue

collection in public budget.

Enhance communication and promoting the civil service reform: In some regions change

communication strategy had already been developed and implemented. At Federal level, the draft

document has been prepared and is ready for improvement following the inputs from respective

government bodies prior to its implementation. Efforts have been made to communicate civil service

reform activities through different media to internal and external customers. In collaboration with

radio broadcasters, weekly live discussions have been broadcasted on six civil service programs.

This created an additional room for the public to express their assessment on the progress made in

civil service reform implementation, improvements observed in public institutions and the existing

challenges. Promoting communication and involvement of the community in the civil service reform

program enables to strengthen transparency and accountability systems in their institutions

Ensure transparent and accountable system in the civil service: the majority of the ministries

and regional executing institutions established complaint collection system and made their service

delivery transparent and accountable to the public. Moreover, some regions have conducted

customer satisfaction surveys. In addition citizens' charter is under preparation by benchmarking and

collecting service delivery standards from different institutions. The draft citizens' charter study

discussed with different stakeholders. The implementation of this charter is expected to help to

deepen transparency and accountable in the civil service. The transparency and accountability

measures taken in the civil service at all levels of government institutions are meant to reduce

attitudes and practices of rent-seeking. There has been several awareness creation trainings

conducted in order to enhance the understanding of the civil servants about the adverse impacts of

corruption and rent seeking on the development process of the country. The focus of the training

was made on attitudinal change to realize zero tolerance to corruption and rent-seeking. The root

causes for corruption and rent seeking have been identified and strategic plan has been developed to

curb the problems.

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Enhance public participation in development process: community based organizations play key

roles in mobilizing communities to participate in the development process. Some regions have

developed community participation improvement manuals and started training managers and civil

servants. The manual focuses on the concept of community participation and its importance; and

woreda good governance and community mobilization program and its implementation guideline.

Moreover, some regions have started training women‟s associations, youth and teachers‟

association, development committees and inspection teams. As a result of the trainings,

improvement has been observed in communities‟ participation in planning, prioritizing development

agendas, scheduling, and implementation strategies.

Building the capacity of Zonal, Woreda and local councils: With regard to building the capacity

of zonal woreda, and local level councils, some regions have identified capacity gaps of the

managers in the municipal and woreda administrations. Based on the assessment of the gaps

training programs are prepared and provided to build their implementation capacity. This capacity

building training modules include deepening the civil service reform program and improve in

service delivery. The trainings have been delivered in collaboration with the Ethiopian Management

Institute and the Ethiopian Civil Service University.

Strengthen rule of law in the civil service: Public servants are encouraged to be acquainted with

administrative proclamation No.515/99/ through awareness creation activities. In addition, attempt

was made to improve the awareness of civil servants on laws and guidelines so as to increase

effectiveness of implementation capacities. The training was also focused on enhancing the

awareness of civil servants on the rule of the law. Directive guidelines have been prepared and

discussed on to promote ethical behavior among the civil servants. As a result the civil service

awareness about the rule of laws and ethical behavior has been enhanced.

Weaknesses and lessons learned: Though encouraging efforts have been done in capacity building

and good governances in the civil service, there were certain weaknesses observed. These include

among others that institutional transformation is not progressing at the expected level and rent-

seeking attitudes and practices are still the key constraining challenges facing the civil service. The

lessons drown include the importance of sustaining the leadership development and institutional

transformation programs, and addressing the technical, as well as attitudinal and motivational

problems of the civil service.

5.2 Information Communication Technology Development

The following are some of the tasks accomplished in 2010/11 in ICT development:

a. Expand the accessibility of ICT: with regard to expanding accessibility of ICT and

supporting government institutions with e-gov, 1000 computers have been procured and

made ready for distribution. This support will facilitate the information exchange system of

the government offices. Moreover, during 2010/11 13 government offices have benefited

with installations of ICT based government information system.

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b. Foster the benefits of the community from ICT services: three community information

service centers have been established in different government offices. One community radio

centers and 15 public information provision centers also have been established to increase

community and functional public information service centers for enhanced public relation

among government and citizens for effective citizen participation. Moreover, in order to

provide a unified billing system online, the building of five unified billing systems (one in

Addis Ababa and four in regional capitals) has been in progress during the fiscal year under

review.

c. With regard to the use of ICT to support the implementation of the agricultural-led

industrialization development and export led trade and industrialization development

strategies of the country, information services in selected government offices at UN e-

government index standard have been developed and implemented in 2010/11. Hence,

about 10 information delivery institutions that provide the community with efficient on line

services were established. In addition, based on the UN e-readiness index, the standards of

the already constructed government portals are upgraded from the rank of 172 to 111 levels.

d. The ICT infrastructures and their operation are used to support the education services

delivery particularly in announcing the National Secondary School Leaving Examination

Results and their university placements.

e. With regard to developing and implementing ICT policy and regulatory framework for

accelerated economic growth and poverty reduction, the ICT policies and strategies have

been revised. In addition, an information technology development park is under

development in Addis Ababa.

5.3 Justice System Reform

The objectives of the justice sector are to strengthen the constitutional system and ensure the rule of

law, make the justice system more effective, efficient and accessible as well as more independent,

transparent and accountable. To realize these objectives, various activities have been performed

during 2010/11 as reported below.

Human resource capacity development: to enhance the capacity of professionals in the justice

system, short and long terms training was given. Accordingly, 1249 prosecutors and more than

6000 professionals in the justice system were trained. In addition, support has been given to 8 law

training institutions to build their capacity and improve the curricula in the law education system.

Enhance efficiency and effectiveness of the sector: to ensure effectiveness of the justice system,

a system was developed to implement integrated crime prevention, improve prosecution rate and

protection of witnesses. In order to ensure efficiency of the judiciary, strengthening the existing

judiciary system has been improved. Therefore, the congestion rate has been decreased and

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clearance rate of courts have been improved. Various activities have also been undertaken to

improve the effectiveness of the justice system. Consequently the average number of adjournments

in first instance and appeal cases improved from 52 percent to 90 percent, and average duration for

disposal of cases decreased from 6 to 2 months.

Ensure supremacy of Law: In order to ensure the supremacy of law based on the Ethiopian

constitution, 6 proclamations have been drafted and enacted based on the constitutional provisions

and prevailing circumstances in the country. To enhance knowledge and understanding of citizens

on constitutional matters and other crucial law, 76 awareness creation trainings have been delivered

to more than 9 million citizens of the country during the year under review.

Improve transparency and accountability of the justice sector and the judiciary: to improve

the transparency and accountability of the sector and the judiciary, 6 new and revised regulations

and directives were enacted. Moreover, a compliant handing mechanism was developed and

implemented.

Improve justice service accessibility: in order to ensure public centered judiciary services, a

number of activities have been carried out to increase access to justice through improving

distribution of service delivery locations and increasing the number of judges and prosecutors.

Particular attention has been given to vulnerable groups, indigents and litigants. Implementation of

alternative dispute resolution mechanism has been started to reduce cost and time of litigating

disputes.

Enhance public participation in the Justice Sector: In order to increase the public participation

in the justice system, systems have been developed and are being implemented.

Automate the Justice Sector Reform program with Information Communication Technology

(ICT): Different ICT projects were developed and are being implemented. Implementing these

projects bring improvements in automation of the justice and data management system. Moreover,

to strengthen the national integrated justice information data management system, a project has

been prepared and ready for implementation.

Integrating cross cutting issues in the justice sectors: with regard to integrated planning and

implementations of the cross cutting issues, the level of prosecuting crimes associated with children

and women has increased from 45 to 90 percent in the fiscal year.

5.4. Democracy and Good Governance

5.4.1 Strengthening the Democratic System

Strengthening One Economic and Political Community: to strengthen the relationship between

nations, nationalities and peoples of different regions, several activities has been conducted. The5th

International Forum on Federalism has been conducted in Ethiopia together with the Ethiopian

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Nations and Nationalities Day. Five key topics and 45 researches in relation to the practice of

federalism and on way forward to further strengthen federalism in the country have been presented

and discussed in the Forum. Moreover, the Ethiopian professionals have participated on the

International Federalism Forum which enabled other countries to share the Ethiopian Experience.

These events are expected to have positively enhanced awareness about the federal system of

Ethiopia and consolidated the process of forming one economic and political community.

In addition, civil issues demanding federal level legal framework are identified and communicated

to the House of People‟s Representatives (HoPR). These are International Civil Rights Law,

Dispute Resolution Law and Vital Registration Law. A consultative meeting and tour was

organized by Oromia regional state for all regional state in order to strengthen inter-regional

relationship, and observe the practice regarding how nations, nationalities and peoples are

exercising the right and freedom they gained by the constitution. Twenty applications on identity of

nationality have been received by the House of Federation. Professional comments were presented

to the House of Federation on 20 of the appeals on national identity quests. While decisions were

made on 14 of them, direction was given for further comments on the remaining. Moreover, seven

questions on constitutional rights were presented to the office and six of them were communicated

to the council.

Revise the Federal Grant Sharing Formula: Preparations have been made to revise the existing

grant sharing formula such that an improved federal grant sharing formula could be used for the

2012/13 budget year. A three-day workshop has been organized with stakeholders to discuss on the

existing grant sharing formula and other supporting documents to be used as a framework for the

revision. Hence comments and documents have been gathered from stakeholders to be used as

inputs for the revising purposes. Many alternative ideas to be used in the grant sharing formula

have been forwarded by stakeholders and the organized document is subsequently presented to the

Budget Subsidy and Revenue Standing Committee of the House of Federation. The Committee has

decided on the basic principles that guide the preparation of the revised grant sharing formula.

Legislation and Oversight: Out of 238 questions which demanded constitutional interpretation

and presented to the council of constitutional issues investigation, professional comments were

given on 148 files on which the council passed verdict. The same was made on laws legislated by

the federal and regional governments, proclamation on the establishment of privatization agency

(proclamation number 110/1987) and on rights to appeal in a proclamation to establish Ministry of

Defense.

The constitutional investigation council properly documented and archived about 500 documents in

a computerized system. Full information that helps to compile the profile of 56 nations,

nationalities and peoples from SNNPR, partially on Aguake and Nuer from Gambella Regional

State and five endogenous nationalities from Beneshanguel Gumuz Region was collected.

Information on languages of education from endogenous ethnic groups in Gambella and

Beneshmgul Gumuz regions was collected and organized:

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Enhance citizens' knowledge on constitution: The House of Federation has carried out several

activities to enhance the citizens' knowledge and understanding of the constitution. It has used the

electronic mass media (Radio and Television including Regional Community Radios) to air the

awareness creation teachings and discussion forums in Amharic and major regional working

languages. Moreover, 15 000 Amharic Versions, 5,000 Afan Oromo Versions, 5,000 Tigrigna

Version of the Federal Constitution book have been printed and distributed. 13,200 Constitution

books have been distributed to Schools, the Federal Policy and the National Defense Institutions. In

order to develop democratic culture from grassroots level, an animation cartoon film developed for

children on constitutional teachings is being broadcasted on Ethiopian Television. Moreover, an

assessment study is being conducted to evaluate the result of the various awareness creation works.

Strengthen councils and other institutions: in order to build the capacity to legislate laws and

effectiveness of the councils a number of activities have been conducted during the fiscal year.

Trainings were conducted on the working system of parliament, code of conduct of Member of

Parliament, mandates relations of three government bodies, the five year Growth and

Transformation Plan, fundamental concepts of the constitution, information technology, language

and gender. The standing committee members have in addition been trained on the committees‟

duty and responsibility, program budget, implementation of government policies and strategies and

cross cutting issues.

Representatives from the HoPR have participated in 7 parliamentary workshops of Inter-

Parliamentary Union (IPU), African Parliamentary Union, African Caribbean and Pacific, and

European Union (ACP-EU), the Intergovernmental Authority on Development (IGAD) and Pan-

African Parliament and played their role in enhancing the country's positive image, strengthening

relationship with other countries and ensuring the political and economic benefits of Ethiopia.

The House of Peoples‟ Representatives (HoPR) has enacted 30 proclamations, and 14 additional

decisions. In addition to this the HoPR council has conducted discussions and explanations on the

performances of the government budget, institutions' annual plans and council's work plan to

ensure accountability.

In addition, to scrutinize the performance of institutions 44 field visits were made to evaluate the

performance of institutions and feedback was given to the respective institution to make corrective

measures after discussion was conducted on the report. Among 88 appeals which were submitted to

the House by different groups of the community, 49 cases were referred to the respective bodies

with proper legal comment for implementation. To ensure effective representation to the public,

constituency outreach was made by members of parliament during break period. Issues raised by

the public are then organized and reported to respective standing committee for follow up actions.

Concerning democratic elections: During 2010/11, NEBE has implemented various activities to

strengthen its capacity and improve stakeholder outreach programs. The following activities have

been carried out during the reporting period. Local and by-election was conducted in Addis Ababa

City Administration and by-election in some woredas' of Oromiya and SNNP Regional states,

respectively. Civic and voter education has been delivered to one million people to enhance

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awareness about election among citizens. Moreover, to enhance their capacities, 9,535 election

officials and 7,277 public election observers have been trained.

Capacity building: with respect to capacity building, two programs were designed and

implemented in the reporting period. These are: i) staff capacity building – In an Endeavour to

build the capacity of its staff and increase their efficiency, NEBE has identified a number of

trainings with the help of the Management Institute of Ethiopia and has been conducting them. And

in this budget year, NEBE has conducted 11 trainings in different fields for a cross-section of its

staff. It is expected that these trainings will strengthen the implementation and execution capacity

of the staff and management of NEBE and thereby contribute to the quality of work and attainment

of results anticipated in both its mandates. ii) Conduct capacity building on Electoral Boundary

Delimitation – The F.D.R.E Constitution and the Electoral Law provide that NEBE conducts

Electoral Boundary Delimitation and forwards its recommendations to the House of Federations. In

order to build its capacity to implement this mandate, NEBE has organized an International training

in collaboration with Public Administration International, for its management and staff as well as a

wide range of stakeholders who are going to be part of the Delimitation Exercise. It has also

undertaken experience sharing tours to countries that have established experience in the field.

Series of sensitization workshops on gender mainstreaming has been conducted to enhance

awareness of the staffs on their roles and responsibilities towards mainstreaming gender internally

and also externally in order to implement the mandate of NEBE to increase the participation of

women in the Electoral process.

Post-Election Evaluation: NEBE has also conducted the first Post-Election Evaluation in

Ethiopian history in this budget year. It has mobilized its staff throughout the nation and evaluated

the 2010 General Elections engaging in the process all its stakeholders. It has also translated the

findings in five local languages and English and published the report. Accordingly, 1500 copies in

Amharic, 1600 copies in English, 1200 copies in Oromifa, 400 copies each in Tigrigna and Somali,

and 300 copies in Afar language have been published.

Consulting With Political Parties: Recognizing the need to create a smooth and transparent

working relationship as well as the importance of facilitating a dialogue between NEBE and

political parties, two consultative forums on various topics have been organized for 64 Political

Parties. The forums focused on the requirements of the Electoral Law and also the financial

obligations of Parties towards the public fund they use. The forums proved useful in that Parties are

showing progress in relation to their obligations.

With respect to the outreach Programs with stakeholders, training Political Parties were conducted

to ensure comprehensive participation of all Political Parties in the Electoral Process, NEBE, has

been organizing a series of capacity building training programs for all Parties. In the budget year,

the first round training in Transformational Leadership has been given to the leaders of 76 Political

Parties. In addition, training has been provided to the media professionals about their role in

democratic and peaceful election.

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Human Rights: The Ethiopian Human Rights Commission was established to enhance citizens'

awareness of their human rights and develop culture of respecting the rights of others so that they

can play a constructive role in building peace, deepening democracy and ensuring sustainable

development in the country. To achieve these objectives, the Commission has planned key targets

and carried out activities in the context of the Growth and Transformation Plan.

Promoting and creating awareness about human rights within the society: the Ethiopian

Human Right Commission has conducted different awareness creation trainings and workshops to

Women‟s and Youth Associations leaders, stakeholders working on children and female rights, and

prevention of harmful traditional practices. In addition to these the Commission has used different

media to promote and create awareness on human rights within the society. To enhance

constitutional understanding, 40,000 copies of the federal constitution were printed in Amharic,

English, Oromifa and Tigrigna and distributed. In addition, 12,024 copies of International Human

Rights Documents were printed and distributed. Moreover, different studies have been conducted in

relation to human rights. To enhance human rights protection, the Commission has singed

memorandum of understanding with Police University College, police training institutions and

education bureaus (for secondary schools) to incorporate human rights and its implementation in

the curriculum.

To build the capacity of democratic institutions and law enforcement organs about human rights,

short term trainings have been provided to 746 participants from different community groups

(elders, religious leaders and prominent peoples), regional states, federal government, and members

of parliament, . The topics covered in the trainings were basic human rights, and parliamentarians'

role in the promotion and protection of human rights and the rights of women and other vulnerable

groups. In addition, the Commission provided trainings to 755 police officer, judges, military

officers and prison administrators.

To build the capacity of the Human Right Commission, improve its accessibility and strengthen

cooperation among other relevant sectors and organizations, six branch offices have been opened

and subsequently staffed in Mekele, Hawassa, BahirDar, Jimma, Jigjiga and Gambela. Moreover,

102 Legal Aid Centers have been opened and now different organizations are working in

collaboration with the Commission and the Legal Aid Centers.

The Commission has carried out the preparation of different regulatory and operational manuals

during the fiscal year. Accordingly, human rights violations‟ investigation manual and human

rights monitoring and research manuals have been prepared. Workshops has been conducted on

human right fundamentals and their implementations have been conducted among civil society

organization, non-governmental organization, higher education institutions, and partnership has

been established with these organizations and religious leaders to strengthen tolerance among

followers of different faiths.

In order to monitor human rights violation, electronic compliant handling and free telephone

handling system implementation is under process. Procurement of materials has been conducted to

implement hotline service to handle complains on human rights violation and to give advices. To

ensure government compliance with constitutional, regional and international human rights

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standards, progress reports have been prepared on the implementation of the International Human

Right Conventions and the rights for vote, and feedbacks are provided to the government.

Rectify human rights violations committed against citizens by government organs: a number

of activities have been conducted to receive complain, investigate and rectify the violations. One of

the mandates of the Commission is to undertake investigation, upon complaint or its own initiation,

in respect of human rights violations. Accordingly during the fiscal year a number of cases have

been submitted to the Commission and effectively handled. The total number of Cases transferred

from 2009/10 to 2010/11 is 634 of which 498 are male and 136 are female complainants. During

the year a total of 981 (731 male and 250 female) complaints have been submitted to the

Commission. Consequently there were a grand total 1615 (1229 male and 386 female) complaints

handled by the Commission. The Commission has given remedies to 961 male and 311 female, in

total 1272 complainants. In addition, the Commission has monitored 113 prisons (out of 118 prison

centers in the country).

The practice of human rights in Ethiopia is also supported by the Ethiopian Institute of

Ombudsman. Accordingly, the Institute of Ombudsman has prepared its own five-year strategic

plan based on the national five year Growth and Transformation Plan. Accordingly the Institute has

been working in 2010/11 to curtail maladministration committed against the citizens by

government institutions, ensure citizen rights to freedom of information and build the capacity the

organization for improved accessibility.

With regard to curtailing maladministration committed against the citizens, the Institute has

conducted 8 research studies, 32 awareness creation workshops and seminars, and 180 advertising

works that help ensure good governance. Monitoring and support is provided to 13 implementing

institutions to enhance their capacity and working system for improved good governance. It has

been also possible to resolve 75% of complains appealed to the institution.

5.4.2 Ensure Good Governance

Strengthening institutional capacity to prevent and control corruption

The capacity of the Federal Ethics and Anti-Corruption Commission is strengthened by recruiting

skilled professionals on the vacant positions. Short and long-term trainings have been provided to

the staffs to enhance their technical and attitudinal capabilities. A regulation and a directive are

drafted to ensure effective implementation of the proclamation on wealth registration of

government authorities. Based on the proclamation disclosure and registration of wealth of

government officials is conducted and accordingly about 18 thousand members of parliament,

ministers, and other government officials as well as other senior government officials have

disclosed and registered their assets during the fiscal year.

The Ethics and Anti-Corruption Policy has been prepared and submitted to the respective

government body for approval. The proclamation of witness protection has been enacted in

collaboration with the Ministry of Justice. To integrate and coordinate the activities of ethics

education and anti-corruption campaign networks, five different directives and manuals have been

developed.

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In order to conduct full-fledged assessment study on ethics and corruption, a pilot study has been

conducted and based on it the main assessment study is under implementation. To expand further

the fighting against corruption, the Commission has used electronic and printed media to create and

enhance the understanding of the society about the problem of corruption in the development

process and thereby promote ethical behavior among the society. Moreover, the Commission has

been controlling corruption through investigation and prosecution of corrupt practices and

perpetrators of corruption. Accordingly, the Commission has prosecuted a total of 349 individuals

during the fiscal year. A guilty verdict is passed on 248 of these individuals. Thus the prosecution

capacity of the Commission has reached 86.8%. The Commission has also successfully renounced

80% of public and government property that been embezzled illegally.

Urban land development and management program: In 2010/2011, the plan was to undergo

preparatory works on institutionalizing a transparent and accountable urban land administration and

establishment of an integrated land information system (cadaster). Accordingly, land development

and management policy and implementation strategies (1 proclamation, 8 regulations, 5 directives

and 9 manuals) were prepared and endorsed. A three-day national conference was provided to

higher officials, relevant stockholders and professionals to create awareness on the prepared land

policy and implementation strategies.

Similarly, to harmonize systems and implementations among regions and towns, 6 proto-type

(model) regulations and 7 proto-type guidelines have been prepared for approval by respective

regions and cities; there have also been 22 standards and manuals prepared for approved. At the

federal level a Land Development and Management bureau is established in the Ministry of Urban

Development and Construction. In addition, Land Management Information System Project Office

has been established. The necessary office reorganization and staff recruitment is being carried out,

and human resource development strategy has been designed in collaboration with the Ministry of

Education in five professions from TVET to Second degree programs.

Based on the plan to establish urban planning units at all emerging regions, training has been

provided to Somali and Benishangul Gumuz regions. Fourteen professionals were trained on

modules related to Urban Planning Preparation and Execution Follow up. Training manual was

prepared and waits the formulation of implementation strategy to implement trainings. Training

has been provided to 480-selected professional from regions and towns, and this enables to build

the capacity for the preparation of 195 small town plans. Support and monitoring has been made to

150 small towns in their plan implementation, which has prepared plan in 2002.

Strengthen tax reform program and tax administration system፡ Four inter-related strategies are

pursued to improve the tax administration system in 2010/11: improving the tax administration information

system, customer education, enforcement and capacity building.

Strengthening modern tax information system: With the view to establish collaboration with third

parties, information communication network was established with the Ethiopian Airlines, National Bank of

Ethiopia and Customs of Djibouti. About 505,984 finger prints were collected from local and foreign based

tax payers with the view to realize finger print based tax identity numbers. Since the commencement of this

initiative in July 2008/2009, a total of 1,563,907 finger prints out of the planned 1.6 million were collected

showing a 98 percent performance. Cash registry machine system was made pragmatic and the capacity of

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professions who are in charge of providing supports and controlling system implantation was strengthened

along with improving the supply of cash registry machines. In this regard 24,107 machineries were procured

and made operational by obligated tax payers.

Integrated government tax administration system (SIGTAS) was fully implemented at federal level and

professionals were provided with continuing trainings. With the view of enabling the system to provide

additional services, SIGTAS was configured with automation finger print identification system (AFIS) and

card production facility (CPF). Custom information management system(ASCUDA++) was implemented at

all custom branch offices and information generated from the system was used for customs procedures

implementation, post clearance audit, import export trade, etc. In addition, cargo scanning machine,

electronic vehicle‟s road controller machine, custom value database management and customer call service

have been set up during the fiscal year.

Customers’ education and communication on tax and its benefit to development: intensive

training workshop has been given using electronic and printing media. This activity resulted in enhanced

awareness and knowledge of the taxpayers to respect the law, improve the taxpayers understanding and

communication, and increase the taxpayers' registrations. Different conventional agreements have made with

international organizations and international counter parts through experience sharing.

Enforcing the Taxation Law: In order to prevent and control illegal practices, developing a productive

interaction with stakeholders, improving the decision passed on suspects, improving effectiveness and

visibility, improving the risk management and strengthen tax-auditing system were the focus of the fiscal

year. From the total prosecution by the Authority, 91.28% of the verdicts passed are in favour of the

Authority.

Strengthening the Capacity of the Authority: during the fiscal year under review, the capacity of the

Revenue and Customs Authority was enhanced particularly via recruitment of new staff and training of

existing staff. The strengthening of the authority via various system and information technology has

continued during the fiscal year

5.5. Media Broadcast Performance

Mass media Expansion: It was planned to increase the number of community radio to a total of 12

from its previous level of 8 during the plan period. However, it was possible to increase the number

to 10, only licensing two instead of four community radio operators applied for licensing.

Community radio license is granted whenever there is a demand from applicants. As a result, since

less number of applicants appeared than expected it is not possible to achieve the number that has

been targeted. This is mainly due to lack of awareness among the community on the use and

benefits of community radio. So, in the remaining years of the plan it would be useful to intensify

awareness creation programs among the community on the significance of community radios.

With regard to public broadcasting service licensing, it was planned to increase the licensed service

from 9 to 10. However, since most of the regions have already their own radio stations, no

applicants have requested for licensing during the budget year. In addition, licenses were granted to

two public television services, which takes the total number of public televisions in the country to

6, though one of the sixth is in the installation process. Upon the request from the Ethiopian Radio

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and Television Agency (ERTA) 32 UHF and 4 FM Radio frequencies were allotted for its

expansion works compared to its plan of 21. This considerable achievement is due to the current

digital technology expansion demand from ERTA. Regarding subscription broadcasting 1 applicant

was granted with the license upon its request during the fiscal year. Even though it needs further

analysis, the percentage of broadcast media language has reached now about 20% of the planned

target. It has been planned to increase the number of applicants to be licensed on publishing and

circulating periodicals to 50 and 42 applicants have been licensed during the budget year.

It was planned to improve and strengthen 4 regulatory laws and standards of mass media

expansion. Accordingly, two working regulations and one technical standard were prepared. To

increase customer‟s participation it was planned to conduct 6 communication works. As

participation of customers and other stakeholders is vital 7 communication works were conducted

on various issues of mass media. In building the capacity of the Ethiopian Broadcast Agency

(EBA), it was planned to conduct 6 workshops and to train 60 professionals. On that basis it was

made possible to conduct 7 awareness creation workshops and 60 staffs were trained in different

disciplines that the job requires.

Mass Media inspection& support: In order to make operators responsible for media laws and

regulations it was made possible to rectify 132 violations through monitoring of broadcasted

programs, field inspection and appropriate decision making on broadcasting complaints. The

achievement exceeds by 32% than what has been planned, which was 100. In the same manner

through monitoring of periodicals, 20 violations are rectified and the achievement is 66.66% of

what has been planned.

In order to enable broadcasters and media professionals respect media laws and regulations it was

planned to train 100 media professionals. On that basis 75 community radio board members and

other concerned media practitioners are trained. The achievement is 75% of what has been planned.

On the other hand to create a conducive environment in the sector by conducting participatory

workshop with broadcasters and media associations, 1 workshop is conducted, which is 50% of the

plan.

In order to strengthen the transparent and accountable working systems of the Authority it was

planned to improve 4 working manuals and standards; and it is made possible to prepare all that

has been planned and as a result 2 working regulations and 2 manuals are prepared accordingly.

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CHAPTER VI CROSS CUTTING ISSUES 6.1. Children, Youth and Women Related Issues

One of the seven strategic pillars of the GTP is promoting youth and gender empowerment and

ensuring equity. The government recognizes that the GTP goal will be achieved only when the

multidimensional problems faced by women and youth are addressed. The governments‟ objective

during the GTP period with regard to women and youth initiative is to ensure equitable socio-

economic and political participation of youth and women as well as to make them direct

beneficiaries of the economic growth. Similarly, the government has planned to minimize children

vulnerability.

The targets with regard to children are to ensure equitable benefits to children from development

activities, support vulnerable children, minimize harmful traditional practices that affect children,

and protect children‟s right and safety. Furthermore, the policy direction of GTP for youth focuses

on enhancing the participation of youth in democratic governance, economic and social initiatives

and ensuring youth benefits from the development outcomes. Accordingly, the government

implemented various activities to achieve these targets during the 2010/11 fiscal year. The

progress with regard to children, youth and gender during the fiscal year are described as follows.

It is very crucial to note, however that the accomplishments in the economic (agriculture, industry,

job creation etc), infrastructure (roads, energy, water, telecom, etc), social (education, health) and

capacity building sectors have direct significance to women, youth and children issues. Thus, the

progresses made in those sectors are not repeated here. This section gives only the performances

that are not accounted in those sectors directly.

In 2010/11 it was planned to elevate 50 women owned associations from micro and small

enterprises to medium ones. Actually, 101 women owned and operated micro and small businesses

have grown medium level enterprises. Credit and saving services were provided to more than 0.61

million women but about 50 percent short of the target, indicating that efforts must be scaled up to

further improve access to financial services of women entrepreneurs. Furthermore, more than 0.40

million women received training in business management. The participation of women in decision

making with the parliament, judiciary and executive bodies reached 27.9 percent, 30 percent and

16.5 percent, respectively.

A draft Children‟s Policy that considered international conventions on children has been drafted

during the fiscal year. It was also possible to strengthen 1486 child rights committee against the

plan to strengthened 1621 children‟s right committees that help to mitigate gender based abuses.

With regards to vulnerable women‟s and children‟s care and support, it was planned to provide care

and support for 500,000 children who are living in vulnerable situations using social support

system and strategy, 64,289 children have benefitted from the service.

To establish management information system in order to strengthen integrated network of women

for effective M&E, studies on children and women‟s affairs are conducted. It was also possible to

establish and strengthen 247 women‟s networks. To ensure the benefits of youth and their

participation in all development processes, a capacity building training was conducted to 1,721,482

youths. In addition, 172,654 youths were trained in organizational leadership. Moreover, capacity

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building training was conducted for 429 partners. 2688 youth organizations have benefitted from

technique and material support. During the same period, 161 youth centers were constructed and 6

youth forums were established. A total of 4.5 million youths in 10 youth voluntary service sectors

have participated. A conference on development, democracy and good governance was conducted

where 2.5 million youths participated. 144,570 youths were also benefited from MSEs programs to

generate incomes. Hence, 37 MSE associations owned and operated by youth grew to medium level

enterprises.

6.2. Prevention and Control of HIV/AIDS

The main goal of prevention and control of HIV/AIDS during the GTP period is to reduce the

impact of HIV/AIDS on society as a whole and the main strategic direction of HIV/AIDS

prevention and control program is to expand HIV/AIDS prevention activities, reducing

vulnerability to HIV/AIDS, increase the access to HIV/AIDS related health services, provide

special care and support, and strengthen the systematic collection and use of data related to

HIV/AIDS.

In 2010/11, it was planned to distribute 284 million condoms to control and prevent the spread of

HIV/AIDS and sexually transmitted diseases. 63.7 percent of the target was achieved by

distributing 181,122,710 condoms. An independent study conducted in Ethiopia confirmed that 97

percent of women and 99 percent men are well aware-off about HIV/AIDs, indicating the country

is close to attaining the universal awareness target. As a result, the HIV/AIDS incidence rate

declined from 0.28 percent in 2009/10 to 0.14 percent during the reporting period. In addition the

HIV/AIDS prevalence rate declined to 2.3 percent. The Trend in the coverage of HIV-positive

mothers who received PMTCT service increased from 22 percent in 2009/10 to 33.4 percent in

2010/11 while those were received ART increased from 8.3 percent to 9.3 percent during the same

period. Of the planned 9,466,645 people targeted for VCT services, 9,448,880 received it. Of those

who received VCT, 66,592 women and 50,352 men, in total 116,944 blood samples were tested

positive and these people were provided with preventive medications.

During 2010/11 budget year, the number of pregnant mothers who received HIV/AIDS test

increased from 22 percent in 2009/10 to 33.4 percent. In addition, the number of pregnant mothers

who received a complete HIV/AIDS prevention treatment has increased from 8.3 percent in

2009/10 to 9.3 percent in 2010/11. Furthermore, the Health Centers that provide HIV treatment to

prevent Mother-to-Child HIV transmission increased from 1,103 in 2009/10 to 1,445 in 2010/11.

Moreover, in order to protect HIV/AIDS prevalence and incidences various awareness creation and

capacity building activities were implemented during the fiscal year.

6.3. Social Welfare

With the main goal of promoting the economic and social development of the country the GTP‟s

Social welfare program main emphasis lies in protecting rights and facilitating conditions which

will enable persons with disability and older people to use their abilities as individuals or in

association with others to contribute to the development of society as well as to be self-supporting

in the political, economic and social activities of the country. The social welfare program has two

main targets to be achieved during the GTP period. The first target is to establish a standard social

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welfare scheme by participating government, NGOs, elderly and people with disabilities both

during preparation and delivery. The second target of the program was to increase overall social

security services based on the envisaged scheme. The objective of the sector‟s plan is in the process

of speeding up of the social and economic development of the country making sure the

involvement of all relevant stakeholders in promoting social welfare services in an inclusive

manner, identify social welfare problems and take corrective measures, in view of supporting the

nation‟s poverty eradication endeavor to promote activities that will benefit people with disabilities

and the elderly.

Accordingly the government implemented various activities to achieve these targets during the

fiscal 2010/11. The government progress with regard to Social welfare during the fiscal year of

2010/11 includes:

1. In order to promote and ensure the social rights of persons with disability and elderly,

giving equal opportunity to participate and being benefited in the countries social, economic

and political activities to support the countries overall development program the

government considers providing improved physical support services as one of the key

deliverables. During 2010/11, the government provided physical support services to 13,133

beneficiaries which are 27% of the target (i.e 48,715 beneficiaries). The government failed

to achieve its target mainly due to nonexistence of orthopedics workshop in some parts of

the country and for next budget year the government is finalizing construction of

orthopedics workshop in these areas.

2. In order to improve access and service delivery of social protections to families, elderly and

vulnerable groups the government was planned to provide social protection services to

323,697 beneficiaries and achieved above the target during the budget year. That is, during

the fiscal year 2010/11 social protection services was provided to 43,292 beneficiaries. In

addition, the government has provided technical support to regional bureaus who have

requested a technical support from the federal government to establish regional platforms to

improve their service outreach. Besides, experience sharing activities in the area of social

protection was also implemented during this budget year. Furthermore, better performance

was achieved with regard to public awareness creation activities in the area of policies,

plans as well as proclamations related to elders, persons with disability and social problems.

3. Private Organizations Employees Social Security Agency was established during this

budget year to provide sustainable social security services to private and non-governmental

organization employees. Moreover, awareness creation on the benefits and meanings of

Private Organization Employees Pension Proclamation was made at regional and federal

levels. As a result, registration for 4,590 private organization and 2,000 private organization

employees was made during the budget year. Besides the agency have finalized its

preparation to open 9 branch offices in order to improve its outreach in all regions.

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6.4 Labor Affairs

The GTP considers labor affair program as a cross cutting issue with three major policy

components. The policy component of the labor affairs program includes; expansion of job

information services, work place support and cooperation as well as monitoring the working

environment. These policy pillars are aimed to achieve the program‟s major objective of ensuring

expansion of job information services; ensuring job safety and stability of the working

environment; and, enhancing labor productivity hence contribute to the socio-economic

development accomplishments. To achieve this program objective the government has planned to

ensure enforcement of the labor laws, launch job information services, support job seekers, provide

capacity development to employees and employers, launch dialog and discussion forums at

workplaces, provide support to solve labor disputes, and strengthen monitoring of working

environment. In this regard the following activities were implemented during 2010/11.

In order to balance the country‟s labor force demand and supply labor market information system

was developed and implemented. Taking the international experiences, job fair manual was

developed in the year.

In order to expand provision of job services the government planned to support 10,050 job seekers

to obtain domestic employment opportunity and about 26,770 job seekers were able to get jobs,

which is more than double of the target. This is mainly attributed to the increase in the use of the

service by job seekers.

The Central Statistical Agency (CSA) provides data on urban labour market. This report can be

verified by CSA 2011 urban unemployment survey report. The CSA estimated about 10.39 million

of the urban population are above the age of 10 years. Out of this population, 59.4% were

economically active in 2009/10 and this increased to 60.3% in 2010/11. Between 2009/10 and

2010/11, workers-population ratio increases from 48.2 to 49.4 percent and people in the informal

sector increased from 34.1 to 36.5 percent. More importantly, in the same period, despite the

increase in the activity rate, urban unemployment rate declined from 18.9 percent to 18 percent

while youth unemployment declined from 24.5 to 23.7 percent between 2009/10 and 2010/11.

Table 28. Urban unemployment survey results in 2010/11 fiscal year

No

.

2009/10 2010/11

Male Female Total Male Female Total

1 Economically active population (%) 65.7 53.7 59.4 67.9 53.5 60.3

2 Workers-population ratio (%) 58.5 39.0 48.2 60.2 40.0 49.4

3 People in the informal sector (%) 28.3 42.5 34.1 28.0 48.4 36.5

4 Unemployment rate 11.0 27.4 18.9 11.4 25.3 18.0

Unemployment among the educated 11.5 29.6 19.2 11.9 27.3 18.3

Unemployment among the uneducated 7.7 22.2 17.5 7.6 20.1 16.1

5 Unemployment among the youth (15-29) 16.0 31.6 24.5 16.5 30.3 23.7

Source: Central Statistical Agency (CSA)

Furthermore, better performance was reported during the same budget year with regard to licensing

and renewing of work permission for foreign citizens. The government planned to issue and renew

work permission for 20,000 foreign citizens during the 2010/11 fiscal year and provided the service

to 25,899 individuals.

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The government also implemented various activities with regard to undertaking monitoring

activities to improve working environment. In this regard the target for this fiscal year was to

undertake working environment monitoring services for 5,229 small, medium and large

organizations and more than the targeted number, about 9,527 organizations were monitored in

2010/11 fiscal year.

During the fiscal year under consideration, it was planned to implement bilateral social consultation

system in 50 organizations as well as develop a tri-lateral consultation systems in all regions.

Accordingly, a bilateral social consultation system was developed in 108 organizations. However,

with regard to developing tri-lateral consultation systems only 40% of the target was implemented

during this fiscal year.

6.5 Population and Development

The demography of Ethiopian population is characterized by large proportion of working force.

Hence providing appropriate support to the working force to engage in productive activities will

play a significant role in increased economic growth and development. The population policy of

Ethiopia is aimed to harmonize the rate of population growth with the country‟s capacity to develop

and use natural resources to improve the overall living condition of citizens. In order to achieve

this goal the government planned to expand health extension programs, mainstream the population

development agenda, improve community participation, support and strengthening population

education, enforce family law, and develop national data, etc during the GTP period. Accordingly,

various development activities were conducted during the 2010/11 fiscal year.

In 2010/11, preparation of the national population implementation strategy finalized and distributed

to federal and regional offices. The national population strategy is prepared in accordance with the

objectives and outputs stated in the GTP. Capacity gap and need assessment was conducted at

federal sector offices and regional offices. Baseline survey conducted and research priorities and

agendas were identified in the fiscal year.

6.6 Culture and Tourism

As stated in the GTP the culture and tourism objective is making Ethiopia one of the best tourist

destination in Africa The Culture and Tourism program of the GTP is mainly aimed at maintaining

sustainable tourism development, conservation of unique cultures and cultural heritages, and

encourage community participation. In order to achieve this goal it is planned to register, preserve,

develop and promote cultural, and tourist attraction sites; enhance earnings from the sector;

enhance accessibility of cultural and tourist sites; and undertake promotion activities.

In this regard the government has undertaken the following activities during the fiscal year

2010/11.

During this budget year, three non-moveable and 5 intangible heritages have registered nationally

and 20 heritages have been prevented from illegal trade. Moreover during this fiscal year it was

planned to register nationally 201 moveable heritages, but only 200 heritages registered. Besides, it

was planned to reduce illegal hunting and trade of wild animals by 30% percent and during the

budget year it is decreased by only 25%

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Furthermore, during this budget year renovation was made for 7 heritages; protection was made for

8304 information heritage; and 500 heritages are used for appropriate service. Birr 72.4 million of

income was generated from the sector, which is extremely higher than the budgeted 20.9 million

Birr. Besides, the foreign currency earned from the sector was 299.2 million USD.

With regard to promoting cultural and natural heritages at international level, bilateral agreements,

participating in international fairs, expos and festival were implemented during this budget year.

Furthermore, better performance is reported during this fiscal year with regard to establishing

tourism system, facilitate its accessibility and increase customers‟ satisfaction. It was planned to

collect and document 215,000 heritages and during the fiscal year, about 246,872 heritages were

collected and documented.

6.7. Science and Technology Development

Science and technology development activities are led by the Ministry of Science and Technology.

In 2010/11, the following activities have been accomplished. Draft policy documents on “science,

technology and innovation” that enale to establish an innovation system have been presented to the

Prime Minister office. The preparation of draft document on “directive for the implementation of

the science, technology and innovation policy and mechanism” has been finalized in order to

provide support to regional innovation system. After having conducted discussion on five selected

research topics which will facilitate the implementation of science, technology and innovation

policy, research concepts were prepared.

Capacity building of science and technology development፡ Regarding human resource

development in science and technology, 228 students and teachers from primary and secondary

schools of 9 regions and two city administrations were awarded for their excellence in science,

mathematics and technical vocational training with the view to encourage national level research

and technology, expand capability in technical skills and scientific knowledge. A draft document

has been prepared to award students from higher education and who excel in their performances in

natural science, applied science and engineering and instructors conducting high level applied

researches. In addition, through the provision of local and international trainings, survey questions

were designed and coordination works were undertaken to improve the ratio between researchers

and man power in leather, textile and garment industries and universities.

Experience sharing study tours at selected textile and garment, chemical, metal, pharmaceutical,

food and spices factories were conducted by 120 instructors and students from Addis Ababa

university with the view to strengthen local technological capacity through designing and

implementing joint research programs and projects. Moreover, while a a document on situation

assessment of science and technology multiplication and apprenticeship institutes in Hawassa, Dire

Dawa, Adama and Mekele was prepared, a needs assessment was conducted on four technical

vocational institutes ( Entoto, General Wingewt, Tegbareid and Misrak Comprehensive). In order

to document, disseminate, transform and administer research and technological products as well as

put in place equitable share of benefits between the research institute and researchers, intellectual

property right administrative units were established at Ethiopian Agricultural Research Institute,

Holeta Biotechnological Research Center and Faculty of Science at Addis Ababa University.

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Lessons were drawn from countries having best practices like South Korea, Japan Malaysia

Singapore and Tunisia and analysis was made to encourage internationally acclaimed information

websites and establish technological multiplication and apprenticeship centers. on web sites

international level. Regarding policies, legal and institutional frameworks that will help enhance

technological transfers, a general directory package on innovation and research was prepared based

on lessons especially from experiences of China and India.

Technological transfer፡ To be successful in technological transfer, a study enabling to identify

alternative technological transfer methods was conducted and in collaboration with stakeholders

the technological paten right information of five biofuel and five solar energy technologies was

taken and these technologies were linked with an institution called Ever Bright plc solaries free

style trading in America. Relationship was established with five leather, two textile and garment

and 30 metal factories established some years back with the view to transfer the technologies used

by same to other similar institutions and the identification of those factories using better

technologies and discussion on transfer of technologies and information to other manufacturing

institutes was made.

Technological certification፡ Regarding competency and reliability on conformity service, product

management, professional certificate and laboratory clearance, standardized selection criteria for

setting evaluation boundaries was prepared. In management system certification, an internationally

recognized training in International Registered Certified Auditors was given for 26 professionals

and evaluation works and certifications were done on 7189 agricultural, chemical, construction and

electrical products.

In relation to the establishment of national standard system and make the system scientific, the

institute has received a calibrated volume laboratory etalon from South Africa and additionally sent

first level etalon heat measurement for calibration in South Africa. A directive was also prepared on

irradiation of TLDs and calibration of survey meter using x-rays radiation. Air pressure scaling

from 0-20 bar using pressure calibrate has started its service; and general description on heat,

pressure and electric has been prepared. ISO IEC 17025 laboratory quality management on heat

and volume measurement, internal audit report and new institutional formation quality document

have been revised. Chemical, textile, mechanical, microbiology, electrical laboratory management

operation manual and procedure have been implemented.

In order to make products and services competitive international market through the

implementation of standard and technical information for technology transfer Addis Ababa

University introduced standard and quality concepts in its mechanical, electrical and construction

management departments curriculum. Standard on general and basic sector, environment health and

safety sector, textiles and leather sector, electro mechanical sector, civil engineering and chemical

technology totally 950 standards has been revised. New final draft standard has been prepared on

general basic sector, environment health and safety sector, textiles and leather sector, electro

mechanical and chemical technology totally 400 standards.

Regarding intellectual property identification of patent user and preparing training document was

carried out and MOU is signed with German and Swiss patent offices. Draft policy for effective

95

innovative individuals to get loan from financial institution directives produced and discussion is

under way at the institution level.

6.8 Environment and Climate Change

The main objectives for the environment and climate change initiatives in the GTP are to formulate

and effectively implement policies, strategies, laws and standards which will foster social and green

economy development so as to enhance the welfare of citizens and, environment sustainability. In

building a „green‟ and climate change resistant economy there are two broadly known strategies,

adaptation to climate change and mitigation of Green House Gases(GHGs). To achieve the

aforementioned objectives and goals of the sector, enhancing the capacity required to build a

climate change resilient green economy; developing capacity for taking actions on mitigating Green

House Gases and enforcing environmental laws in all administrative units and sectors are the major

targets accomplished in this fiscal year. Detailed achievements are discussed below.

Enhancing the capacity required to build climate change resilient green economy: In line with

the GTP targets for the sector, a document which describes the vision of Climate Resilient Green

Economy (CRGE) has been prepared, and Ethiopian Programme of Adaptation to Climate Change

(EPACC) which deals with twenty issues has been prepared. Seven draft manuals have been

prepared for helping to integrate adaptation actions to climate change into existing government

documents and thus federal sectoral agencies, all regional state governments and the two City

Administrations have prepared their CRGE documents. Apart from that estimating the funding

needed to implement the adaptation actions to climate change in all sectors at all levels of

administration is currently undertaken. Technologies and practices for making dams climate change

resilient have been compiled, and with the same token good practices and technologies for

improving the environmental conditions of lakes, wetlands and river sides are being tried out in

three regional states and one City Administration. A total of forty-three technologies and good

practices have been identified for solid waste management, crop production that reduces the impact

of the variability in the time and amount of rainfall rehabilitating degraded land, improving the

availability of energy and construction materials in an environmental sound manner, purifying

waste water released by factories and they are being tried in the nine regional states and two City

Administrations.

Developing capacity for taking actions on mitigating green house gases (GHGs): A document

outlining the seventy-five National Appropriate Mitigation Actions (NAMAs) that will constitute

the bases of CRGE has been submitted to the United Nations Framework Convention on Climate

Change (UNFCCC) Secretariat and Registered by the Copenhagen Accord. A ministerial

committee, a technical committee and seven sectoral committees have been established to lead the

preparation of Ethiopians CRGE and they are caring out their duties and responsibilities. A

document which illustrates the emission that could emanate and must thus be avoided from seven

development sectors i.e. forests, soils, domestic animals, power generation, industry urban

development and transportation has been compiled. Sixty activities that will derive a CRGE from

the implementation of seventy-five NAMAs registered by the UNFCCC Secretariat have been

specified and the emission that has been avoided during the implementation of these activities has

been determined. A document has been compiled to demonstrate the estimated potential income

from the carbon market of the avoided emission. A draft strategy of Ethiopia‟s CRGE has been

96

produced after conducting a policy, technical and organizational study on the contribution of

avoided emission from soils, domestic animals, power generation, industry, urban development and

transport sectors by the sectoral subcommittees, the technical committee and the ministerial

committee.

Enforcing environmental laws in all administrative units and sectors: In this regard support has

been given to nine sectoral agencies (environmental units), all regions and both City

Administrations to enable them give due consideration to the environment in their environmental

impact assessment, solid waste management and the trans-boundary movement of hazardous

substances. A code of practice that takes into account environmental protection and social

requirements for floriculture sector has been approved. One draft proclamation on lakes and

wetlands and another draft proclamation to ratify the Ramsar International Convention on wetlands

have been prepared together with explanatory notes. A draft proclamation along with two directives

is issued on the system of geographical indication pertaining to unique agricultural produces. A

manual for expanding carbon trade in Ethiopia has been prepared. A regulation on the management,

recycling and disposal of electrical and electronic waste has been drafted. Finally, a mechanism to

support and reward results achieved by Woreda Administrations, Farmer and Pastoralist

Associations, and School Environmental Clubs as well as small scale enterprises in building a

climate resilient green economy is issued.

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CHAPTER VII

MONITORING AND EVALUATION SYSTEM

The main objective of the monitoring and evaluation system of the Growth and Transformation

Plan is to monitor the plan so as to ensure the effectiveness of the government policies and

strategies as well as evaluate the impact of the both macroeconomic and sectoral plan

implementations of the welfare of the society. The M&E system therefore provides the tool follow

progress in achievement of planned targets, maintain the coherence and integration of the overall

economy take timely corrective measures when needed and management the development process

effectively.

The monitoring and evaluation system, which is based on sectoral approach, takes a functional

relationship from the federal to the local levels government whereby timely and reliable

information on results is compiled and reported. In 2010/2011 therefore a number of activities were

accomplished both at macro and sectoral levels.

7.1 Monitoring the Over all Plan Performance by MoFED

The Ministry of Finance and Economic Development coordinates the overall monitoring and

evaluation system which was already established in 1996. In 2010/11 the GTP document was

finalized and published in Amharic and English Versions and it was distributed to the lowest

government administration level. Further the electronic copy of the document was posted at the

Ministry of Finance and Economic Development‟s official Website (www.mofed.gov.et) to reach

internet users. In 2010/2011, the Ministry of Finance and Economic Development (MoFED) also

conducted several workshops with relevant stakeholders to increase the knowledge and

understanding on the Growth and Transformation Plan, and coordination and explanation activities

have been also undertaken to implement the plan in a concerted and integrated way. Moreover, it

was also possible to evaluate major outcomes on jointly organized workshops among donors and

Ministry of Finance and Economic Development such as High Level Forums and JRIS/JBAR.

Based on the established monitoring and evaluation system, to lead and manage the economy in a

transparent and accountable manner, by updating monthly retail and producer prices for policy

decisions; by following and monitoring monetary and fiscal policies and by carefully managing

public finance at different levels, it was possible to witness stable macro economy in the country.

Analysis on national economic accounts has been conducted and report was prepared to evaluate

the cumulative impact of the implementation of development plans on each sector. Furthermore,

various activities such as manpower development and organisationnel restrcuturing have been

undertaken to strengthen the M&E system at macro level.

7.2 Peformances of the Federal Executive Bodies

The federal executive bodies have prepared their sectoral plan based on the five year Growth and

Transformation Plan(GTP). They have also prepared their annual plan for budget request from the

Ministry of Finance and Economic Development. Line ministries have been performing based on

the annual plan approved for the 2010/2011 fiscal year. Hence, they prepared and submitted the

98

performance reports which has been used as input for the first year Annual Progress Report of the

Growth and Transformation Plan. On top of that, lessons have been learnt that it is demanding to

strengthen the planning and evaluation sections of the federal executive bodies.

7.3 Performance of the Central Statistical Agency

In order to help monitor the implementation of the GTP, the five year National Statistical

Development Plan, serves as a national framework for Monitoring and Evaluation system in

Ethiopia. This national framework for Ethiopia‟s monitoring and evaluation system has been under

implementation since 2010/11 fiscal year. The main objectives of this Statistical Development Plan

are to follow the implementation of the GTP, MDGs and other development initiatives. Measuring

the success and improving the management of these initiatives should be based on good quality

statistical indicators. Accordingly, the Central Statistics Agency (CSA) conducts socio-economic

and demographic surveys mainly based on sectoral approach. The APR covers the surveys

conducted by the CSA and administrative information generated by sector institutions in the first

year of the GTP implementation. The socio-economic and demographic surveys carried out in

2010/11 fiscal year include Agricultural Statistics, Business Statistics (Manufacturing,

Construction, Trade and related sectors), household surveys and prices (Surveys in relation to

Households Welfare, Employment/Unemployment, Producers and retail Prices and related

indicators), and Population Statistics and related statistical data collection, compilation and analysis

activities.

7.3.1 Agriculture Statistics

In 2010/11, agricultural sample surveys were conducted; data from surveys were analyzed and

disseminated to assist the monitoring and evaluation of sector‟s performance. The various

agricultural sample surveys conducted and reports prepared in 2010/11 include crop production

forecast survey; area production and yield of the major crops survey (both meher and belg seasons);

farm management and agricultural practices survey (both meher and belg seasons); crop land use

survey; the livestock and livestock characteristics survey and the large and medium-scale

commercial farms survey.

7.3.2 Business Statistics

With regard to business statistics, standard and timely annual and periodic surveys on

manufacturing industries, distributive trade, foreign trade, construction, transport, communications,

and finance were conducted. Quarterly reports on producers‟ price index for manufacturing (PPI-

M) and annual medium and large scale manufacturing industries, and periodic surveys on

distributive trade, and other related statistics were produced and released to users.

7.3.3 Household Surveys and Price Statistics

Two main surveys i.e. Household Income Consumption and Expenditure and Welfare Monitoring

Surveys were conducted throughout 2010/11. These surveys include monthly retail prices of goods

and services, producer prices of agricultural products. The urban employment and unemployment

survey was also conducted as planned. The international comparison program (ICP) for Africa

99

price survey (ICP-Africa-2011) was conducted in cooperation with African Development Bank

(AfDB) and COMESA. Furthermore, administrative records data that were used as an input for the

Statistical Abstract were collected and compiled as per the plan.

7.3.4 Population Statistics

In 2010/11 CSA has planned to accomplish the remaining post population census activities, the

third Ethiopian Demographic and Health Survey and participate in the law drafting of the Civil

Registration and Vital Statistics. Accordingly, detailed statistical reports on the 2007 Population

and Housing Census that contains socio- economic and demographic data have been produced both

at the national and regional levels and then printed (over 44,000 copies). The summary reports of

the 2007 Population and Housing Census intended to provide useful information for policy makers

have been produced for each region and the key findings were disseminated in workshop organized

at each regional state. The summary analyses selected thematic areas and in- depth analysis on four

areas of the 2007 Population and Housing Census data have been undertaken and relevant reports

have been produced. The third Ethiopia Demographic and Health Survey (EDHS 2011) preparatory

activities such as listing of housing units and households, recruitment and training of field staffs as

well as data collections were carried out and also the data have been edited, coded and entered into

computer in the 2010/11 fiscal year. CSA has also participated and provided important inputs to the

drafting of Civil Registration and Vital Statistical Law.

7.4 Policy Matrix

The policy matrix of the GTP includes detailed list of input, output, outcome and impact indicators

for macroeconomic, economic and social sectors, capacity building and good governance sectors,

and cross-cutting issues. The policy matrix also provides base year performances and targets to be

achieved by the end of the GTP period in each sector for all types of indicators. Since the Ethiopian

policy matrix is the main component of monitoring and evaluation framework of the GTP and is

built based on MDG goals, it thus helps to assess the performance of the country in achieving MDG

goals. In this report the policy matrix is provided and annexed to this report. It has records the base

year and current year (2010/11 fiscal year) performances, the GTP targets in 2014/15, the

implementing agency and means of performances verification for all sectors mentioned above

although there are sectors for which full information is not available. The policy matrix is prepared

by sector ministries and compiled by the Development Planning and Research Directorate of the

Ministry of Finance2.

2 The policy matrix is available in excel format.

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CHAPTER VIII

CONCLUSION: CHALLENGES & OPPORTUNITIES FOR GTP IMPLEMENTATION

The GTP is an internally driven legal planning framework formulated under a wide range of public

consultation. It is conceived based on past development experiences and future development

perspectives of the county. It is also framed to meet the Millennium Development Goals (MDGs) at

the end of the planning period, maintaining the holistic growth momentum of the past, and

achieving the national long term vision of becoming a middle income country. Under GTP, the

Government has embarked on an aggressive program to accelerate progress as swiftly as possible, including a big push towards ending poverty, developing human capital, and expanding quality

infrastructure to enhance competitive advantage at international market, building institutions, and

ensuring good governance and enhance democratization process.

Achieving and sustaining broad-based economic growth through transforming the productivity of

agriculture sector and encouraging private sector participation in manufacturing and small

enterprise development and thereby reducing unemployment challenge of the country is considered

central to poverty eradication efforts of the Government. Equally, the Government is trying to

manage food insecurity pressures under shock resilient green economy strategy.

During 2010/11, the country has registered 11.4% real GDP growth rate. The agriculture and

industry sectors have registered growth rates surpassing their targets for the fiscal year. This is the

result of effective macroeconomic and sectoral policies implemented during the fiscal year.

Furthermore, the rapid economic growth and remarkable social development have contributed

positively to the creation of employment and poverty reduction. A number of new job opportunities

have been created in cities and urban areas. Thus, urban unemployment rate has declined to 18 %.

Per capita income has also increased to 392 USD. Food insecure Woredas in rural areas have been

supported through Productive Safety Net Program, which contributed to overcome chronic and

transitory food insecurity challenges.

Owing to developments in the economic and social sectors and better implementation of welfare

programs, absolute poverty index has declined to 29.6 percent in 2010/11 from 38.7 percent in

2004/05. Maintaining a rapid growth path with diversified sources of growth has also been

witnessed in the fiscal year under consideration. Similar to the PASDEP period, the principles

underlying the GTP lays on all sectors that broadly contribute for the reduction and ultimate

eradication of poverty, by providing particular attention for improving productivity in the

agriculture sector.

Huge investments in infrastructure sector have reflected in increasing total road network to 52,000

km, increasing national electricity coverage to 46 percent, improving mobile telephone coverage

and wireless telecom services to 12.9 percent and 90 percent respectively, and improving national

potable water supply to 73 percent. Education enrollment has increased at all level across the

country; MDGs target of primary education for all has remained on track to be achieved on time. In

the GTP, an important priority is given to improve and ensure the quality and efficiency of

education at all levels through a program called General Education Quality Improvement Package

(GEQIP). Accordingly, various activities have been performed under this package, including

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designing standard for general education, standards of Science and quantitative education and

secondary education has been implemented. Synchronizing of TVET trainings in line with the need

in industry sector has been undertaken. However, performances of adult education lag behind the

target and need additional effort to reach at the target set under GTP. Government commitment

towards improving the social segment of the economy could be seen from the achievement

registered in health sector. Except maternal mortality the indicators of the health sector has

witnessed a promising achievement during the year.

A number of evolving opportunities have helped for enhanced implementation of the GTP:

Particularly the-ongoing National Capacity Building Programs that have implemented at various

level, a series of ongoing sector development programs, successive policy measures aimed at

improvement of domestic resource mobilization effort, past investments on human development

and physical infrastructure, the deepening of the environment for private investment and business

activity, are some of the good opportunities to be mentioned.

However, despite these achievements, there have been and still serious challenges to be addressed

in short, medium, and long-term perspective. Addressing the consequences of the inflationary

pressure has remained to be an immediate task to work on. Although the Government has taken

steps to address the immediate economic policy challenge of inflationary pressure the way out in

the medium and long-term is to further enhance productivity of the agriculture sector and

improving and streamlining the overall marketing system.

As it has been already noted, there have been and still are programs that are already in the pipe line

to address the various challenges in a coordinated and concerted manner. The National Capacity

Building Program particularly the Civil Service Reform Program is meant to address limited

implementation capacity and improve access and quality of service delivery; the development of

irrigation infrastructures to insulate small holder farmers from drought shocks; private sector

development and export diversification to address term of trade shocks; the tax reform program to

revamp domestic resource mobilization efforts; expansion of education of farmers will help to

enhance labor productivity; efforts to streamline and strengthen the marketing system for

agricultural outputs and inputs(through commodity exchange system); and the on-going small and

medium enterprise(SMEs) development complemented by the formulation and implementation of

women and youth packages to address the unemployment and underemployment problems.

However, in the short and medium term, the issue of low level of external development finance and

its unpredictability which we have experienced during the past several years has still remained a

critical challenge. In 2010/11, although an external grant that constitutes the resource envelope has

increased from its level in the preceding fiscal years, it is still the lowest compared with the Sub

Saharan average. Even though, under GTP domestic resource is considered the first alternative to

finance development of the country, domestic effort should have also been complemented by

scaling up foreign financing to insure full-fledged implementation of programs articulated in the

Plan. Hence, there is still an urgent need to scale up Official Development Assistance (ODA).

The current growth momentum could not be maintained without enhancing Ethiopia's stock of

human and physical capital. The country‟s Human and Physical capital has not yet reached its

maximum. The huge investment on physical infrastructure and human development needs to be

102

seen from the perspective of enhancing and sustaining pro-poor growth which is a necessary

condition for poverty eradication. Thus, there is still a need to expand investment in human

development and physical infrastructure to improve the competitive advantage of the private sector

at international market and to be able to attract Foreign Direct Investment (FDI) which has been

increasing in recent years. Ethiopia well recognizes that external resources will have

complementary role in financing development, therefore, concerted efforts to mobilize domestic

resources is mandatory through a) continued efforts towards laying healthy tax administration and

tax collection system; encouraging domestic saving scheme and investment (both domestic and

foreign); and laying a foundation for enhanced social mobilization to particularly address quality

services delivery challenges.

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Appendix I. Performances of the Policy Matrix

I. Table 1፡ Economic Growth and Poverty Reduction

Plan Achievement GTP

Target

2010/11 2010/11 2014/15

Decreased in proportion

of citizens living below

poverty line

Total poverty head count (%)38.7

(2004/05)27.7 29.60 22.20

Decreased in proportion

of citizens living below

food poverty line

Food poverty head count (%)38

(2004/05)26.6 33.60 21.20

Real GDP growth rate (%) 10.4 11.03 11.4 11.4

Total consumption expenditure as% of GDP 94.5 92.6 91.2 85

Gross domestic capital formation as% of GDP 22.3 22.8 25.5 28.2

Total exports as % share of GDP 13.6 16.6 16.8 22.5

Total imports as % share of GDP 33 34.5 31.8 35.7

Resource gap as % share of GDP -19.3 -17.9 -15 -13.1

Gross domestic saving as % of GDP 5.5 7.4 8.8 15

Annual inflation rate 18

Domestic revenue including grants as % of GDP 17.3 17.8 16.7 20.4

Domestic revenue as % of GDP 14 14.1 13.5 17.1

Tax revenue as % of GDP 11.3 11.7 11.5 15

Non-tax revenue as % of GDP 2.8 2.4 2 2.1

Total expenditure as % share of GDP 18.6 20.5 18.4 23.7

Total poverty-oriented expenditure as % of GDP 12.3 13.5 12.2 17.3

Total poverty-oriented expenditure as % of total expenditure 66 65.4 66.2 73

Total capital expenditure as % of total expenditure55 56.4 56.8 60.8

Budget deficit as % share of GDP-1.3 -2.7 -1.6 -3.3

Links to

MDGs

Objectives Output Indicator

Goal 1

Achieve the Millennium

Development Goal to half the

proportion of people living

below the poverty line

MoFED

Household Income

and Consumption

Expenditure and

Welfare

Monitoring

Surveys data set

analysis report

Base year

(2009/10)

Implementing

Agency

Means of

Verification

Ministry of

Finance and

Economic

Development

(MoFED)

Ensured stable

macroeconomy and

effective public finance

implementation

Goal 1

Ensure accelerated and

sustainable economic growth

Ensured in fast and

sustainable economic

growth and stable

macroeconomic policy

MoFED annual

report

All MDG

Goals

Achieve economic and social

development through

mobilizing domestic and

foreign resources

Improved domestic

resource collection and

increased foreign

resource flow

(mobilization)

MoFED MoFED annual

report

104

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Increased in major food crops production Major food crops production in million tone 202.46 19,976 22.182 26.77

Increased in root crops production Root crops production in thousand tone 1,773.2 2,040 2,610 3,307

Increased in fruit and vegetable crops

production Fruit and vegetable crops production in thousand tone

1,281.8 1,685 894 5,907

Stimulant crops production in thousand tone 462.1 526.12 516 1040.2Coffee production in '000' tones (by small farm holders) 407 371 831

Increased in industrial crops production Industrial crops production in thousand tone 629.7 710.69 644.1 1174.69

Increased in spice crops production Spice crops production in thousand tone 182.2 202.7 203 321.6

Average food crops productivity (quintal/hectare) 15.38 17.5 16.50 22.0

Increased in size of land covered with major

food crops Land covered with major food crops in thousand hectare

11,253 11,415 11,823 12,170

increased in size of land covered with root

crops

land covered with root crops in thousand hectare 403 408 516.33 424

Increased in size of land covered with fruit

and vegetables

Land covered with fruit and vegetable crops in thousand hectare 152.6 175.5 181.32 358

Increased in size of land covered with

stimulant crops Land covered with stimulant crops in thousand hectare 606.06 649.17 498.94 944.69

increased in land covered with major food

crops Land covered with industrial crops in thousand hectare 46.3 57.55 79.15 114.76

Increased in size of land covered with spice

crops Land covered with spice crops in thousand hectare 181.7 202.4 165 321.1

Total number of Extension Service Beneficiary household ('000) 5090 8521 9,044 14640

Total number of extension service beneficiary agrarian households ('000) 4,900 8,141 8,849 13,500

Number of extension service beneficiary male headed farmers in thousands 2940 5618 5309 8100

Number of extension service beneficiary female headed farmers (30%)in

thousands1470 2442 2655 4050

Number of extension service beneficiary youths(10%) in thousands 490 81 885 1350

Number of extension service beneficiary pastoralists in thousands 115 230 144.2 690

Number of extension service beneficiary male headed pastoralists in ('000) 70 138 103 414

Number of extension service beneficiary female headed (30%) pastoralists ('000) 34 69 30.9 207

Number of extension service beneficiary youth pastoralists (10%) ('000) 11 23 10.3 69

Number of extension service beneficiary semi-pastoralists in thousands 75 150 50.35 450

Male headed semi-pastoralists in thousands 46 90 30.2 270

Female headed farmers(30%) semi-pastorals in thousands 22 45 15.11 135

youths(10%) pastoralists in thousands 7 15 5.04 45

Number of extension trainees that substitute the vacancy 8637 6389 4988 6276

Number of extension workers specialized in agricultural products that can be produced

with the country agro- ecological zones and crops with high value

- 5700 775 14100

Number of trained rural youths who drop out and unemployed high school complete

youths

- 32220 48503

Number of teachers trained at post graduate level 45 45 50 45

Cumulative size (hectare) of land with fertile soil by neutralized treated by lime 2210 6170 1470 37850

Fertile koticha soil in thousand hectare 60 120 190.5 3000

Improved seed in thousand quintal 1798 2067 1028.4 3604

Chemical fertilizer in thousand tone 820 954 818.05 1665

Improved in soil fertility

Goal 1

Improve agricultural

production and

productivity by improving

extension service

utilization and agricultural

inputs

Improved in natural resource conservation

and agricultural input use through enhanced

extension service

Goal 1

Increase crop production

by increasing cultivable

agricultural land

Increased in agricultural input supply

Enhanced extension workers training

Ministry of

Agriculture and

Regional

Counterparts

II. Table 2: Agriculture and Rural Development

OutputObjective

Increased in major food crops productivity

Increased in stimulant crops production

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Indicator Base year

(2009/10)

Implementing

AgencyLinks to

MDGs

Increase crop productivity

by applying good

agricultural practices

Goal 1

Ensure food security and

support the food industry

through increasing crop

productionGoal 1

Means of

Verification

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

105

Plan Achievement GTP Target

2010/11 2010/11 2014/15

OutputObjective Indicator Base year

(2009/10)

Implementing

AgencyLinks to

MDGs

Ensure food security and

support the food industry

through increasing crop

productionGoal 1

Means of

Verification

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Coffee export (tons) 172,210 221,115 221,115 600,970

Coffee export earnings (mln USD) 528 692 692 2,037

Export earning of oil seeds (mln USD) 358 450 450 1,120

export earning of pulses (mln USD) 129.86 190 190 882

Export volume of oilseeds (tons) 299,198 357,059 357,059 724,216

Increase the export of pulses (tons) 225,446 310,709 310,709 1,120,981

Live animals and meat export earnings (mln USD) 125 189 189 1,000

Earning from flowers export (mln USD) 170 214 214 535

Earnings from export of vegetable, herb and fruits (mln USD) 31.7 63 63 948

Percentage increase in hybrid cattle (specialized for meat) 10.37 17.69 12.37 37.1

Number of improved hybrid cattle 390078 459070 138,337 1493203

Number of hybrid milk cows 140428 165265 157,801 537553Improved animal feeding seed in thousand quintal 50 55 69.13 145

Increased in improved agricultural research

technology outputs for increased agricultural

productivity

cumulative number of research conducted and adequate technology obtained on crop

productivity

27 60 49 292

Increased in output of animal productivity

researches cumulative number of research conducted on livestock, bees and silk production

20 49 27.6 160

Number of research conducted on soil and water 20 5 27.6 41

Total number of researches on forest 5 19 21 38Number of research on crop 10698 13585 11213 19137

Number of research on livestock 1037 3635 2508 3635

Number of research on soil and water conservation 361 310 3261

Number of research on forest 50 350 400 100Agricultural Mechanization research in hectare 92 189 143 149

Land covered with flower in hectare 1,586 1,727 1,300 3,000

land covered with vegetables in hectare 1,365 2,729 444 15,000

Land covered with fruits in hectare 1,053 2,448 4,392 15,000

Land covered with herbs in hectare 54 349 20 3,000

Cut flower in million 2748 3285.5 1804.7 5859.1

vegetables production in thousand tone 49 101.8 79.5 559.8

fruit production in thousand tone 8.8 66.1 13.3 404.8

Herbs production in thousand tone 0.6 1.7 0.3 15

Number of assessment conducted on cross border livestock diseases 8 8 8 10

Percentage coverage in information exchange of animal diseases 40 45 41 65

Number of live animals exported in thousands 334 493 578 2353

Amount of meat product exported in tones 10,180 16,416 16,575 111,000

Number of skin exported in thousands 27 30 223.76 50

Number of sheep and goat hides exported in thousands 6,000 6,125 15,767 7,000Amount of animals products exported (honey, wax and zibad) in tons 300 345 128.98 603

Number of trained workers on community animal health care 100 34 170

Number of new animals quarantine stations established 7 3

Number of new exit-entry controlling stations established 8 1 1

Number of quality check laboratories built for animals and animal products 1 1

Number of animals heath posts built 2,275 265 47 265

Enhanced capacity for regulatory works Number of federal and regional professionals trained in short and long term 12 90 137 115

Number woredas pre -protection surveys conducted 7 7 7 6

Number of woredas tsetse fly and anthrax protection conducted in collaboration with

three regions

7 1 1 1

Amount of vaccines produced in million doze 93.8 114.4 122.55 226.63Amount of vaccines distributed in million doze 96.8 110.16 129.26 217.93

Number of samples examined to deliver animal health services 35000 77,900 127,669 162,780

Number of samples tested to conduct animal fodder research 330 370 480

Strengthen the agricultural

marketing strategy and

increase foreign market

earnings

Increased in volume export of agricultural

products and value generated from the export

market

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Increased in researches conducted on natural

resources

Enhance livestock health

and quality control

Improved in supply of types and quantity of

livestock drugs

Goal 1

Encourage the private

sector investment in

agriculture and increase

agricultural products

exports

Goal 1

Goal 1

strengthed in assessment and control of cross

border livestock diseases

Goal 1

Goal 1

Improve livestock

production and

productivity

Improved in livestock's breed production,

animal fodder seed production and

distribution

Enhance agricultural

researches

Capacity building on use of agricultural

research out puts

Increased in foreign currency generation

through cultivating suitable land, and

increasing flower and vegetable production

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

CounterpartsMinistry of

Agriculture and

Regional

Counterparts

Enhanced in service delivery for livestock

health inspection and certification for

increased foreign currency earning

Increased in coverage of research and control

on tsetse fly and anthrax

Improved in pastoralists' livestock health

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

106

Plan Achievement GTP Target

2010/11 2010/11 2014/15

OutputObjective Indicator Base year

(2009/10)

Implementing

AgencyLinks to

MDGs

Ensure food security and

support the food industry

through increasing crop

productionGoal 1

Means of

Verification

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Number of woredas implemented land administration system 38 54 12 219

Male headed/female headed farmers certified with first level land owner ship

certification in million

8.02 3.09 1.21 -

Male headed/female headed farmers certified with second level land owner ship

certification in million

0.99 1.3 0.0006 3.69

Number of communities based natural resource with development plan guideline - 3912 5554 19560

Area of land protected for rehabilitation ('000 hectare) 3208 4383 4055.1 10208

Area of land under which community based natural resource conservation works

conducted 3772 4426 4990 7772

Area of land soil fertility covered with soil fertility activities (thousands hectare) 894 1209 3034 2820

Area of forest land protected and with managed plan prepared ('000 hectare) 700 946.31 879.3 2203.76

Area of land covered with multi- purpose trees in thousand hectare 6058 7721.2 6994.17 16212.01

Amount of tree sees collected and disseminated in quintal 3529 4316.6 4558 8337.39

Cumulative area of land covered with forest ('000 hectare) 13000 13910 18233

Strengthed use of water resource and

conservation

Area of land covered with modern small-scale irrigation in thousand hectare 853.1 150 1064.2 260

capacity building programs implemented and

trainings conducted on natural resource

development and use

Number of trained farmers and professionals 14081 28186447 5,603,567 451184

Number of samples collected 12352 13352 13508 20052

Number of sample multiplied and distributed 1750 1950 2412 2750

Number of species or sub-spices on which analytical research conducted 2 5 7 14

number of samples character analysis conducted 700 1794 2066 6170

Number of samples protected 63000 63462 64799 81942

Number of samples disseminated 6000 12000 12504 36000

Number of field and social gin bank 2 0 19

Food stoke in metric tone 405,000 560,700 0 3,000,000

Increased in budget for disaster mitigation

and management

Contingency budget in thousand birr 115,000 125,000 118,230 300,000

Number of regions with disaster profile 4 10

Number of woredas with disaster profile 57 541

Number of ware houses 3 115

Number of people supported in food items in millions 4.5 5 4.5 2

Enhanced capacity on disaster mitigation

and management

Number of people supported in non- food items in millions 0.86 1.1 0.041 2

Number of male and female headed farmer beneficiaries in voluntary resettlement

program

240951 52,042 4,322 0

Number of male and female headed farmers benefited from productive safety net

program

7,100,000 5,096,680 7,748,305 1,353,329

Number of male and female headed farmers with food insecurity problem benefited

from family level credit package

233,400 233,700 167,211 0

Number of male and female headed farmers graduated from safety net program 730494 370980 152,006 0

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Counterparts

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Counterparts

Goal 1

Decrease the population

living below poverty line

Improve disaster

mitigation and managing

Goal 1,

Goal 7

Ensured house hold level food security

Goal 1,

Goal 7

Strengthen bio-diversity

conservation

Extended early warning and response

information exchange system to connect

regions,woredas and ware houses by woreda

net

strengthed natural resourse(forest)

conservation and use

Research and assessment conducted on

collected crop species and samples uses for

genetic research

Increased in samples of collected genetic

resources and stored in gene bank that are

exposed to natural disastrous or risk

Goal 1,

Goal 7

Strengthen natural

resource conservation

Implemented sustainable land use planning

and management system

Increased in amount of food reserve for

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Ministry of

Agriculture annual

report

Ministry of

Agriculture and

Regional

Counterparts

107

III. Table 3፡ Trade and Industry Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Textile industryForeign currency earning (in million USD) 21.8 100 62.2 1,000

Industries' capacity utilization (%) 40 60 90

Leather IndustryForeign currency gained from sector's export trade 75.73 190.5 104.1 496.9

Sugar industry

sugar product ( in million tone) 0.314 0.38 0.28 2.25

Goal1 Ethanol product (thousands M 3) 20.5 13.5 304

Electric power generated (Thousands MWH) 607

Additional sugar cane development ( in thousands hectare) 50 5.44

Number of workers employed (in thousands) 24336 8350 112610

Cement industryincreased in capacity of cement

production and per-capita cement

product

Cement product ( in million tone) 2.7 9.34 6.45 27

Per-capita cement consumption (in kg) 35 116 40 300

Steel and Engineering industry

Goal1Gross Value Addition of the sub sector ( in billion birr) 6 20 101.4

Per capital steel consumption ( in kg) 12 14.23 34.72

Pharmaceutical industryincreased in foreign market earning

through pharmaceutical product

export

Income gained from pharmaceutical export trade (in million

USD)

1 2 6.92 20

Agro-processing industry

Goal1

Growth in foreign currency earning

from export of agro-processing

products

Income gained from sub sector's export trade(in million US$) 35.2 82 34.5 300

Industry zone development

Goal1

Establish Industrial zones and increase

employment opportunities and expand

foreign trade

Established industrial zones and

factories built

Factories established in industry zones 24 30

Goal1

Growth in value addition by public enterprises ( in billion

birr)

2.26 3.39 3.2 5.32 Ministry of

Industry

Growth in production capacity of public enterprises ( in %) 83 94 78

Growth in profit of public enterprises (in billion birr) 2 3.31 2.6 5.25

Growth in foreign market earnings from the public enterprises

products ( in USD)

0.05 63.7 72.4 140

Job opportunity created for

unemployed citizens

Number of citizens employed in thousands 474.4 410 542 740 Ministry of

Industry

Goal1 Trainings conducted to operators Number of trainees 450 453.5 725

Supply of manufacturing land in hectare 1153 2136 452 3840

Number of shades constructed 1591 3712 1463 4336

Number of buildings constructed 20 150 71 177

Give particular attention for Micro and

Small Scale Enterprises to increase

employment opportunities and increase

their role to reduce poverty and bring

economic development

Implementing

Agency

Ministry of

Industry

annual report

Ministry of

Industry

Ministry of

Industry

Ministry of

Industry

Ministry of

Industry

annual report

Enhance the capacity of existing and

newly established pharmaceutical

industries to substitute imported drugs

Improve production and capacity

utilization of the sub-sector and supply

the products for domestic and foreign

markets

Ministry of

Industry

annual report

Links to

MDGsObjective Output

Ministry of

Industry

annual report

Increase the supply of sugar, increase

the sugar bi-products and support the

power generation provide to key

economic activities and increase the

share of the product in the export

market

Increase per capita steel products and

substitute imported goods

Land serviced and shades built for

operators

Micro and small scale enterprises

The contribution of the sugar

industry for increased sugar

production and bi-products, and

employment opportunities

Increased in production and hard

Increased in the volume,

productivity and quality of products

of the sub-sector

Increase competitiveness of pubic

enterprises, increase foreign market

earnings generated by public

enterprises and enhance corporate

management of the enterprises

Managment and privatization of public enterprises

Improve the capacity of cement

production and increase the cement

product for domestic and foreign

market supply

Ministry of

Industry

Means of

Verification

Increase the production and market

earnings of the textile sector

Indicator

Increase the production and market

earnings of the leather industry sector

Increased in production and

productivity of the textile sector

Improved in operation management

of public enterprises

Increased in production and

productivity of the leather sector

Ministry of

Industry

Base year

(2009/10)

Ministry of

Industry

annual report

108

IV. Table 4: Mining Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Geological mapping coverage at a scale of 1250,000 (%) 51 57 57 100

Gravity studies coverage at 1500,000 scale (%) 80 85 85 100

Hydro-geological mapping coverage, at a scale of 1250,000 (%) 42 48 50 84Detailed hydro-geological studies (km

2) 3,400 6,400 6,400 30,400

Geo-hazard studies coverage, at a scale of 1250,000 (%) 10 12 13 27Evaluated and delineated areas of potential industrial minerals exploration, at a

scale of 150,000 (%)48 53 51 77

Metallic minerals exploration, evaluate potential at a scale of 12000-15000, and

raise delineated potential areas (%)40 44 42 63

Detailed coal/oil shale exploration and potential evaluation in central Ethiopia,

and increase delineated potential areas (%)12 13 20

Petroleum exploration, at a scale of 150,000, in the west Ogaden basin, and

increase coverage (km2)120000 129,000

165,000

Annual mineral investment (Billion Birr) 13 13 14 20

Annual petroleum Investment (million Birr) 18 54 69

Number of investors licensed on petroleum exploration 22 23 23 29

Revenue generated from mineral investment (million birr) 69 70 104 150

Tax Revenue generated from mining 130 150 400 250

Revenue generated from petroleum exploration (million birr) 3 3 2 4

Export earning generated from gold, tantalum, and other gemstones (million

USD)

108

146 175 277

Export earning generated from non-metal mineral exports (million USD) 2 500

Gold Export (K.G) 3,907 4,500 4,376 8,700

Tantalum export (tone) 202 210 187 300

Potash export (K.G) 3,000 1,000,000

Marble export (Million K.G) 99 100 131 140

Progress of developing Kalub and Hilal gas potential (%) 20 20 100

Area of closure for petroleum exploration (KM2) 60,000 43,000 300,000

Increased number of initiative companies for mining industry transparency 10 25 90

Gold purchased by the National Bank of Ethiopia (Kgs)2,866 3,616 7,296 5,250

Exports of gemstones (Kgs) 3,104 2,000 17,146 4,000

Quantity of tantalum marketed (ton) 63 50 124 100

Number of mining co-operative associations established243 293 53 593

Ministry of

Mining annual

report

Ministry of

Mining annual

report

Goal 1 and

Goal 8

Ministry of

Mining

Base year

(2009/10)

Increased in minerals

and Petroleum

exploration

investment

Ministry of

Mining

Improve traditional

miners skill and

marketing to

increase the foreign

earnings from export

market

Increased in

traditionally

produced precious

metals and

gemstones to foreign

market

Means of

Verification

Increase the share of

mining to GDP and

foraging earnings

Increase the research

in geological and

mineral resources,

enhance mineral

exploration and

improve the

contribution of the

sector for economic

growth

Links to

MDGs

Objectives Implementing

Agency

Ministry of

Mining annual

report

Increased in

geological research

and mineral

exploration coverage

Ministry of

Mining

Output Indicator

Goal 1 and

Goal 8

Goal 1 and

Goal 7

109

V. Table 5: Road Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15Goal 1 Federal and regional total road length( km) 48800 51636 52042 64522

Length of Woredas all-weather road ( km) 0 9568 854 71522

Kebeles connected to all-weather roads (%) 39 48 42 100

Average Time taken to reach nearest all-weather road (hrs) 3.7 3 3.5 1.4

Area further than 5km from all-weather roads (%) 64.1 57.3 61.8 29

Area further than 2km from all-weather roads (%) 83.7 80 82.5 61

Road density (Km/1,000km2) 44.5 55.6 48.1 123.7

Road density (Km/1,000 population) 0.64 0.78 0.65 1.54

Roads in acceptable (Fair + Good) Condition (%) 81 81.3 58 86.7

Number of Project operated/carry out by domestic

contractors (%) 58 61 82 73

Goal 1 Improve the quality

service of road

transport sector

Improved in

operation

efficiency of

vehicles

Average length covered by vehicles travel per day (million

km)

9.6 10.1 12.3

ERA annual

report

Indicator Means of

Verification

Implementing

Agency

Objective Output

Accelerate economic

growth through

increased

construction of

quality road

infrastructure

Links to

MDGs

Ethiopian Road

Authority (ERA)

Base year

(2009/10)

Increased in

road

infrastructure

construction

110

VI. Table 6: Power and Energy

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Goal 1

Increased in electric power

users (customers) Number of consumers with access to electricity (in million) 2.03 2.13 2.03 4

Increased in electric power

distribution Coverage of electricity services (%)

41 5046

75

Total length of distribution lines (Km) 126,038.0 132,638.0 126,323.5 258038

Total length of rehabilitated distribution lines (Km) 450 967 967 8130

Reduce power wastage of power transmission lines (%) 21.4 18.3 20.97 5.6

Total underground power distribution system (Km) 97 53

High voltage (500 KV) electric gridline constructed (Km) 434

Goal 1High voltage (400 KV) electric gridline constructed (Km)

710 710 710 1377

Voltage grid lines with 230, 132, 66 KV constructed (Km) 10730 11397 10730 15189

Proportion of rehabilitated distribution sub-stations (%) 50 50

Goal 1 Hydroelectric power generating capacity (MW) 2,000 2,045 2,075 10,000

Electric power produced (GWH) 7,653 7,923 7,761 32,656

Ministry of

Water and

Energy

annual

reportIncreased in construction of

electric distribution stations

Ministry of

Water and

Energy

annual

report

Ministry of

Water and

Energy

Links to

MDGs

Objective Output

Modernizing the

distribution and

transmit ion system,

so as to reduce power

losses to international

benchmark levels

Increased in constructed electric

sub-stations and gridlines their

quality

Increase quality

electric power supply

service coverage

Indicator Means of

Verificatio

n

Implementing

Agency

Increase electric power

generation and

production

Ministry of Water

and Energy

Ministry of

Water and

Energy

Base year

(2009/10)

Increased in generated and

produced electric power

Ministry of

Water and

Energy

annual report

111

VII. Table 7፡ Potable Water Supply and Irrigation Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15

National water supply coverage (%)68.5 75 73.3 98.5

Rural potable water supply coverage within 1.5 km radius (%) 65.8 73 71.3 98

Urban potable water supply coverage within 0.5 km radius (%) 91.5 93 92.5 100

Reduce non functional rural water supply schemes (%) 20 18 20 10

Goal 1

5. Irrigation Feasibility and design (ha) of medium and large scale

irrigation development (Hectare)

462,114 244,321 178,820 73,798

Area of land developed with medium and large scale irrigation

(Hectares) 127,243 191,374 32,034 98,475

Are of land with its irrigation infrastructure rehabilitated and

developed (Hectares) 2,060 1,000

Objective Implementing

Agency

Means of

Verification

Base year

(2009/10)

Output IndicatorLinks to

MDGs

Increase quality and

access to safe drinking

water and improve

sanitary services Goal 3 and

Goal 7

Ministry of

Water and

Energy annual

report

Ministry of Water

and Energy

Increase medium and

large scale irrigation

development so as to

increase agricultural

products and ensure

food security

Increased access

to potable water

Increased in

irrigated land and

improved in land

productivity

Ministry of Water

and Energy

Ministry of

Water and

Energy annual

report

112

VIII. Table 8: Transport and Communication

Plan Achievement GTP Target

2010/11 2010/11 2014/15Goal 1 & 8 Capacity of Mojo and Semera Dry land port (%) 12 50 42 100

Share of imported goods transited via dry land port (%) 8 42 11 100

general cargo imports carried by the multi modal transport system

(%) 2 4 11 80

Share of export goods transited via dry land port (%) 12 0 50

Total length covered by one freight Vehicle (K.M) 80,000 86,758 120,000

Goal 1 & 8Improve road safety

Improved in road safety Number of car accident death registered per 10,000 vehicles 70 50 27Transport

Authority

Expand railway

transportation service Constructed railway

network Length of national railway network constructed (Km)0 493 0 373

Ethiopian

Railway

corporation

International and domestic passenger (bln seats) 15 23 18 37

Cargo carried from all four international airports (billion tons-km) 1.19 4 3.9 311

International passenger flight destinations (no.) 58 63 63 77

Local flights destination line coverage 16 17 17 20

International Civil Aviation Organization Universal Safety

Oversight Audit Program/ Universal Security Audit Program

(ICAO USOAP/USAP) Compliance Rate (%)

70 75 87 90

The number of operators/investors in the sector (no.) 21 24 28 35

Goal 1 & 8 Fixed line telephone density (%) 1.36 1.6 1.03 3.4

Mobile telephone coverage (%) 8.7 11.9 12.9 45

Number of mobile telephone subscribers (mln) 6.52 10.7 40

Wireless telecom service coverage (%) 50 56 90 90

Global link capacity (Gb/s) 3.255 4.680 5.570 20

Number of fixed line telephone subscribers (mln.) 1 1.25 0.85 3.05

Number of internet service subscribers (mln) 0.187 0.34 0.13 3.69Rural telecom access within 5 km radius of services (%) 62.14 100

Links to

MDGs

Improved and increased

in quality air transport

services.

Expand Air Transport

service and improve

the quality of the

service

Objective Output

Expand competent

marine and dry land

transit services

Improved in export-

import trade and quality

of marine, dry land and

multi-modal transport

service system

Indicator

Ministry of

Transport

Annual Report

Base year

(2009/10)

Means of

Verification

Implementing

AgencyMinistry of

Transport

Annual Report

The Ethiopian

Dry Port Service

Enterprise

(EDPSE) and

Ethiopian

Maritime

Expand

Telecommunication

infrastructures and

improve its quality of

services

Increased in quality

telecommunication

services

Ethiopian Civil

Aviation

Authority and

Ethiopian

Airports

Enterprise

Ministry of

Transport

Annual Report

Ministry of

Communication

and Information

Technology

annual report

Ethiopian

Telecommunicati

on Corporation

113

IX. Table 9: Urban Development and Construction

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Number of houses constructed and transferred to users in Addis

Ababa('000)53 30 17.171 30

Decreased in slum areas (%) 60 54 50 30

Number of employment opportunities created ('000) 44 1ዐዐ 176 25

Number of enterprises established ('000) 1100 1000 1000 500

Number of low cost house construction designs ('000) 4 17 4

proportion of consultants and small scale enterprises benefited from

government support (%)

2ዐ 26.6 2ዐ

Improved in urban main and

feeder roads

Construction of cobble stone roads (Km) (under urban infrastructure

development project)90 9ዐ 222.2

Construction of drainage networks (Km) (under urban infrastructure

development project)90 9ዐ.3 36

Improved in urban sanitary

services

Development of solid waste landfills sites (no) (under urban

infrastructure development project)6 2 1

Development of liquid waste landfills sites (no.) (under urban

infrastructure development project)4 1 1

Development of modern abattoirs (no) 73 3 58

Number of industry zones (under urban infrastructure development

project)1 1 1

Constructed market areas 19 15 22

Number of constructed producing shades 2,881 1,463 9,191

Number of constructed market centers (under urban infrastructure

development project)5 1 3 -

Number of trained management level and other staffs (Regional

urban and city administration) 5ዐዐ 129 5ዐዐ

Number of trained professionals of the construction sector 2,974 2,178 3,548

Number of professionals trained in urban management 1000 1ዐዐዐ 458 1ዐዐዐ

Number of internationally competent contractors 18 4 2 4

Number of certified junior construction professionals 1000 1000

number of organized small and medium level contractors 752 752 837

Number of internationally competent construction sector consultants 11 2 3 2

Number of association organized to lease construction machineries 1ዐ 23 1ዐ

Number or capacitated construction sector consultants 50 20 253 20

Number of trained top management 50 83

Number of trained management staffs on construction design

regulation

Number of trained management staffs on construction quality

control Number of management staffs trained on construction

administration 55

Number of management staffs trained on building construction 55

Improved in regulatory

working system

Number of prepared construction sector laws, regulations and

directive guidelines 3 2 3

Means of

Verification Objective Output Indicator

Regional city

Administrations

Links to

MDGs

Strengthen building low cost

houses

Ensure provision of

quality urban

infrastructure services

through implementing

Goal 1 and

Goal 7

Ministry of Urban

Development and

Construction and

Regional

counterparts

(bureaus)

Increase job creation and

reduce housing problem

through implementing

integrated housing

development program

Base year

(2009/10)

Goal 1 and

Goal 7

Implementing

Agency

Enhance implementing

capacity of regional urban

and city administrations'

officials through

implementing urban good

Implemented programs to

build the capacity of

construction design

Addis Ababa City

Administration

Ministry of Urban

Development and

Construction

Annual Report

Ministry of Urban

Development and

Construction

Expansion in urban areas

industry zones and market

infrastructures

Ministry of Urban

Development and

Construction and

Regional

counterparts

(bureaus)

Create conducive

environment for the

development of

Increased in competent

construction companies at

national and international

level

Ensured in effective working

systems and implementers

Ministry of Urban

Development and

Construction

Annual Report

114

X. Table 10: Education and Training

Plan Achievement GTP Target

2010/11 2010/11 2014/15

kindergarten enrollment rate 4.8 9.5 5.2 20

male enrollment rate (%) 4.8 9.5 5.3 20

Female enrollment rate (%) 4.7 9.5 5.2 20

Grade 1 gross enrollment rate (%) 142.9 128 163.4 116

male gross enrollment rate (%) 150.4 133 171.9 120

female gross enrollment rate (%) 135.2 123 154.5 113

Grade 1 Net enrollment rate (%) 84.5 87.0 91.3 100

male gross enrollment rate (%) 86.2 88.3 94.2 100

female gross enrollment rate (%) 82.7 85.5 88.4 100

Primary school frist cycle (1-4) GER including ABE (%) 129.1 130.7 124.0 125.9

Male primary school frist cycle (1-4) GER including ABE (%) 133.4 134.9 128.8 129.5

Female primary school frist cycle (1-4) GER including ABE (%) 124.5 126.2 119.1 122.1

Primary School GER for under served regions (%)

Afar 58.0 66.0 40.1 98.0

Somali 63.8 71.0 61.3 100.0

Promary School second cycle (5-8) GER (%) 67.1 68.5 66.1 100.4

male gross enrollment rate (%) 67.1 68.5 67.4 100.4female gross enrollment rate (%) 68.3 69 64.8 102.3

Primary school (1-8) GER including ABE (%) 95.9 96.9 96.4 112.1

Male Gross Enrollment Rate (%) 98.7 99.4 99.5 114.9

Female Gross Enrollment Rate (%) 93.0 94.4 93.2 109.2

Primary school first cycle (1-4) NER including (%) 91.5 92.2 91.8 100

Male NER (%) 92.9 93.3 94.0 100

Female NER (%) 90.1 91.0 89.4 100

Promary School second cycle (5-8) NER (%) 52.0 57.6 47.3 80.0

Male NER (%) 51.9 57.5 46.6 80.0

Female NER (%) 52.0 57.6 47.9 80.0

Primary school (1-8) NER including (%) 82.1 89.7 85.3 100

Male NER (%) 83.7 90.8 87 100Female NER (%) 80.5 88.6 83.5 100

Adult Education Enrollement (Million) 5.2 9.1 1.2 9.1

Adult education enrollent (%) 36 47.8 37.5 95

Male adult enrollment rate (%) 50 59 95

Female adult enrollment rate (%) 23 37.4 95

Gross enrolment rate for grade (9-10) (%) 39.7 41.6 38.4 62

Boys gross enrolment rate (%) 44 44.5 41.8 61.8

Girls gross enrolment rate (%) 35.2 38.5 34.9 62.3

Gross enrolment rate for grade (11-12) (%) 6 6.2 8.1 9.5

Boys gross enrolment rate (%) 8.2 8 9.4 9.7

Girls gross enrolment rate (%) 3.8 4.3 6.7 9.2

Total number of students admitted to preparatory (grade 11-12) 243080 209000 288216 360000

Ratio of girls admitted to preparatory school (%) 35.7 35 42.2 48

Links to

MDGs

Objective Indicator Means of

Verification

Output Base year

(2009/10)

Implementing

Agency

Ministry of

Education

annual Report

Increased in

primary school net

enrolment

Ministry of

Education and

Education bureaus

Ministry of

Education

annual Report

Ministry of

Education

annual Report

Decreased in

illiteracy rate

Ministry of

Education and

Education Bureaus

Ministry of

Education and

Education bureaus

Ministry of

Education

annual Report

Increase secondary

school enrollment

rate

Ministry of

Education

annual Report

Ministry of

Education and

Education bureaus

Increased in primary

school gross

enrollment

Ministry of

Education

annual Report

Ministry of

Education and

Education Bureaus

Expand preschool

and primary school

access and increase

the enrolment

increased in pre-

school enrollment

Ministry of

Education and

Education bureaus

Ministry of

Education

annual Report

Increased in grade1

Gross enrollment

Ministry of

Education

annual Report

Increased in grade 1

net enrollment

Ministry of

Education and

Education bureaus

Incrased in

secodary school

enrollment

Ministry of

Education and

Education Bureaus

Goal 2 and

Goal 3

Expand Adult

Education Goal 2 and

Goal 3

Goal 2 and

Goal 3

115

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Links to

MDGs

Objective Indicator Means of

Verification

Output Base year

(2009/10)

Implementing

AgencyExpand preschool

and primary school

access and increase

the enrolment

increased in pre-

school enrollment

Ministry of

Education and

Education bureaus

Ministry of

Education

annual ReportGoal 2 and

Goal 3

Total number of students admitted to TVET 353,420 799,548 371,347 1,127,330

Total number of students admitted to TVET in government institutes 430,562 479,729 215,559 676,398

Total number of students admitted to TVET in no governmental

institutes 287,041 319,819 155,788 450,932

Ratio of girls admitted to TVET 46 46.9 46.2 50

Total number of students admitted to under graduate degree program 185788 196893 211197 467445

Ratio of girls admitted to undergraduate degree program (%) 29 30.2 25.6 40

Annual undergraduate intake rate (%) 31.2 10.8 7.9

Post graduate intake rate 13881

Female post graduate intake rate (%) 11.3 14.04 15.9 25

Male post graduate intake rate (%) 88.7 85.96 84.1 75

Share of lower primary school (1-8) qualified teachers (%)38.4 49.7 47.2 94.6

Share of lower primary school (1-4) qualified teachers (%)15.5 20.9

Share of lower primary school (5-8) qualified teachers (%)77.8 84.5

Share of secondary school (9-12) qualified teachers (%) 79.4 83.6 86.75 98.2

Pupil/teacher ratio for grade (1-4) 56.9 55.1 57.0 47.8

Pupil/teacher ratio for grade (5-8) 45.7 44.4 45.0 39.2

Secondary school girls/boys ratio ( grade 9-10) 40.2 39.0 34.9 33.3

Secondary school girls/boys ratio ( grade 11-12) 25.3 24.8 26.1 22.2

Primary (1-4) student section ratio 56.9 55.52 58 50

Primary (5-8) student section ratio 45.7 44.56 55 40

Primary (1-8) student section ratio 57 55.6 57 50 Secondary (9-12) student section ratio 64 59.2 58 40

Ratio for pupil/textbook available in primary school 1.25፡1 1፡1 1.2:1 1፡1

Ratio for pupil/textbook available in secondary school 1፡1 1.2:1 1፡1

Primary school (1-4) completion rate (%) 74 75 69.1 112

Male primary school (1-4) completion rate (%) 75 76 72 116

Female primary school (1-4) completion rate (%) 73 74 66.1 109

Primary school (5-8) completion rate (%) 46 49 49.4 79

Male primary school (5-8) completion rate (%) 47 49 52.5 79

Female primary school (5-8) completion rate (%) 44 49 46.2 79

Grade 1 dropout rate (total) (%) 16.7 13.6 19.9 1.0

Grade 1 boys dropout rate (%) 17.3 14.1 20.4 1.0

Grade 1girls dropout rate (%) 16.0 13.0 19.2 1.0

Average grade 4-8 repetition rate ( total) (%) 5.8 4.9 8.8 1.0

Average grade 4-8 repetition rate ( total) (%) for male 6.1 5.2 7.2 1.0

Average grade 4-8 repetition rate ( total) (%) for female 5.4 4.6 10.6 1.0

Goal 3Primary School first cycle (1-4) gender parity index

0.93 0.94 0.94 1.00

Primary School second cycle (5-8) gender parity index 0.97 0.99 0.96 1.00

Secondary school first cycle (9-10) gender parity index 0.80 0.87 0.83 1.00

Secondary school second cycle (11-12) gender parity index 0.46 0.54 0.71 1.00

Goal 2 and

Goal 3

Increas

undergraduate and

post graduate level

higher education

intake capacity

Goal 2 and

Goal 3

Improved in

education books

supply

Increased in trained

teachers

Ministry of

Education and

Education Bureaus

Ministry of

Education

annual Report

Increased in

education

infrastructure

Increased in

number graduates

from higher

education

Minstry of

Education

Ministry of

Education

annual Report

Increased in students'

education completion

rate

Increased in female

participation in

primary and

secondary levels of

education

Ministry of

Education and

Education Bureaus

Ministry of

Education and

Education Bureaus

Ministry of

Education

annual Report

Decreased in

students' repetition

rate

Ministry of

Education

annual Report

Ministry of

Education

annual Report

Ministry of

Education

annual Report

Ministry of

Education

annual Report

Increased in number

of middle level

trained man power.

Minstry of

Education

Ministry of

Education and

Education Bureaus

Ministry of

Education and

Education Bureaus

Ensure equtity of

access to education

Increase middle

level trained man

power to accelerate

the economic

growth.

Improve the quality

and effecicy of

delivery mechanism

of education

Goal 2 and

Goal 3

116

XI. Table 11፡ Health and HIV/AIDS Prevention

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Goal 5 Reduced MMR per 100,000* 673 (2005 EDHS) 503 676 (2011 EDHS)  267

Contraceptive prevalence rate (%) 14 (2005 EDHS)  45 29 (2011 EDHS)  66

Antenatal Care-ANC+ (%) 31 53 82.2 86

Proportion of births attended by skilled health

personnel (%)

15.7 34 16.6 62

Postnatal care-PNC (%) 34 52 42.1 78

Prevalence of anemia in women of child bearing

age(15-49) (%)

27 17 12

Goal 4 Neonatal mortality (out of 1,000) 39 37 15

Reduced IMR per 1,000  77 (2005 EDHS) 59 (2011 EDHS)  31

Reduced under-five mortality rate per 1,000 123 (2005 EDHS) 88 (2011 EDHS) 68

Pentavalent 3 vaccination coverage (%) 82  85 84.7 96

Proportion of 1-year-old children immunized against

measles) (%)

76.6  82 81.5 90

Stunting (%) 46 42 44 37

Wasting (%) 11 8 10 3

Goal 4 and

Goal 5

Improved supply and

distribution of iodize salt

Improved in supply of iodize

salt

All inclusive iodization (%) 4 95

Goal 6Successful TB control TB- case detection rate) (%) 36 50 36.8 75

Tuberculosis treatment success rate (%) 84  86 82.5  90

Goal 6Percentage of households in malarious areas with two

ITNs)

65.6  100  100

proportion of pregnant women who slept under ITN 42.5 60 86

proportion of U5 children who slept under ITN 42.1 60 86

proportion of identified local administrations free

from malaria epidemic (%)

0 100

Goal 4, 5, 6 and 7

Improve environmental

health

Improved in household

sanitary services

Proportion of households using latrine (%) 20 86 82

Goal 4, 5 and 6 out-patient visit per capita 0.2   0.3 0.3 0 .7

Primary health service coverage (%) 89.6  100 96  100

Doctors to population ratio 1:37996  1፡10000

Nurses to population ratio 1፡4725 1:3012  1፡5000

Health extension workers to population ratio 1፡2500 1:2647  1፡2500

Overall health expenditure per capita (USD) 16.1 16.1  34

Goal 6 HIV prevalence rate (%) 2.4 2.3 2.4

Adult incidence of HIV (%) 0.28  0.14 0.14

HIV positive pregnant women receiving a complete

course of ARV prophylaxis to reduce the risk of

mother-to-child transmission (%) 8.3 9.9 77

Improved in awareness

creation and campaign to

protect HIV/AIDS prevalence

and incidence

People aged 15-24 years reporting the use of a

condom during last sexual intercourse with a non-

regular sexual partner (%)

59 61.6  95

Improved in access to ARV

treatment

People with advanced HIV infection receiving ARV

combination therapy (%) 53 62.3 95

Ministry of Health,

HAPCO and

Regional

Counterparts

Ministry of Health

and Regional

Counterparts

Ministry of

Health Annual

Report and DHS

Ministry of

Health Annual

Report, DHS and

WMS

Ministry of

Health Annual

Report

Ministry of

Health Annual

Report

Implementing

Agency

Links to

MDGs

Improve the maternal

health and achieve the

MDGs goal to reduce

maternal mortality rate

Reduced in malaria epideictic

problem for economic

productivity and social

development

Ensure the implementation

of child nutrition strategy

Protect transmission of

Tubercrolis and improve

healing success.

Ministry of Health

and Regional

Counterparts

Ensured in Integrated action to

reduce HIV/AIDS incidence

and halt the prevalence

reduced in children

malnutrition problem

Reduce child mortality Ensure improved health

service delivery to reduce

child mortality

Reduce and halt

HIV/AIDS incidence and

Prevalence

Improved in maternal health

Protect malaria epidemic

Improve access and quality

of health services

Improved in quality of health

service

Means of

Verification

Objective Output Indicator Base year

(2009/10)

Ministry of Health

and Regional

Counterparts

117

XII. Table 12፡ Capacity Building and Good Governance

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Justice Sector Reform

Number Judges and prosecutors trained with long term

training program

2000 3000 3249 9000 Federal and Regional Justice

professional training Center

(JOPTC)

Ministry of

Justice annual

reportProfessionals of the justice sector whose capacity being

built by short term training

3000 6732% Professionals built in

knowledge, skill and

attitude

Federal and Regional JOPTC

Competent justice sector professionals 300 249 1200 Federal and Regional Justice

organsPercentage level of designed and implemented

coordinated crime prevention system

Initiatives to establish

the system

50% 85% Capacity of preventing

crime in coordinated effort

is strengthened

Ministry of Justice, Regional

Justice Bureaus, Police

Improvement in bringing criminals to justice (%) Business Process Re-

engineering started

20% 86% Sharp decrease of

criminals who escape

Ministry of Justice, Regional

Justice Bureaus, PoliceChange in conviction rate 75% 80% 86% Conviction rate is 100

percent

Ministry of Justice and

Regional counterparts Institutions with decision making and implementation

improved (%)

Initiatives started 50% Execution capacity of

justice institutions is built

Federal and Regional Courts

Improve efficiency of the justice

sector

A system to improve efficiency in all

institutions of the justice sector

Average duration for disposal of cases 6 months From 3-4 months 2.5 months Increase satisfaction of the

customers

Federal and Regional Courts Ministry of

Justice annual

Percentage progress of preparing laws compliant with

the constitution and international treaties (%)

30% 6 in number Ministry of Justice Ministry of

Justice annual

reportPercentage coverage of awareness creation training and

workshops conducted

10% 20% 76 in number Awareness about

constitution enhanced

Ministry of Justice

Percentage level of established users complaint handling

system

Partial implementation

of complaint handling

mechanism

70% 95% 100% All Justice Organs

A system to prevent corruption by identifying areas

vulnerable to corrupt practices is established and put into

effect

Study conducted by

Anti-corruption

commission

20% 60% A system which prevents

corruption is established

All Justice Organs

Proportion of improvements to increase justice service implementations started 20% much work has been done during the

plan period

100% All justice organs

Percentage Improvements in expanding alternative

dispute resolution mechanism

BPR started 20% Setting up of alternative dispute

resolution mechanism has been

finalized

100% Courts and Justice Offices

Means of

Verification

Ministry of

Justice annual

report

Improved in awareness created to respect

constitutional order

Improve transparency and

accountability of the justice

sector (including the judiciary)

Ministry of

Justice annual

report

Building human resource

capacity

Competent leaders and employees of the

justice sector

Enhance effectiveness of the

sector

Efficient and effective justice sector

/institutions/

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Improved in accessibility of justice services

Implemented system of transparency and

accountability

Increase access to justice and

court service

Ensure rule of law

118

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Means of

Verification

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Distributed 100000 computers based on

study outcome of federal offices and higher

institutions computer distribution ratio.

Percentage distribution of computers to implement E-

Gov.and increase access point 30 100

Ministry of Communication

and Information Technology

(MCIT)

MCIT annual

report

Implementation of Network installation for

30 federal offices/bureau under Network

Master Plan (Phase 1 and Phase 2)

Number of government offices benefited with installation

of ICT based government information system 10 13

Established system of community

information service in 50 government

offices

Number of centers established and implemented annually

4 10 3 10

Established community radio centers Number of community based information centers 5 6 1 6

Established and functional public

information service centers to enhance

public relation among government and

citizens for effective citizen participation

Number of public information provision centers

established 81 60 15 60

Implemented Online Unified Billing System

in all regional capital cities

Implementation progress of Unified Billing System (%)20 0 100

developed and implemented Informational

Services in selected government offices

Developed information service centers to facilitate

services to the community 5 20 10

Developed transactional services in 73

government offices

Developed Transactional Service centers 20 0 10

Ensure the country's IT development level

at UN IT index level

Percentage of improvement of IT services at UN Index

level 10 10 50

developed information and transaction

services to enhance quality heath services

Number of developed and implemented ICT supported

health service facilities 4 0 22

developed information and transaction

services to enhance quality education

services

Number of developed and implemented ICT supported

education service facilities 3 1 18

Optimized Government Information

Network Infrastructure

Percentage of Improvement in uninterrupted net work

capacity development 20% 0 100%

Accomplished network security audit

system for government information network

Number of prepared and Implemented manuals for

information network security system 1 50 0

Established national secondary data centers Number of established secondary data centers at federal

and regional levels 14

Promote and protect Nations,

Nationalities and Peoples rights

Constitutional rights of Nation, Nationalities

and Peoples preserved

Number of investigated and decided claims. 4 2 HoF Report of HoPR

Promote the relations and culture

of nations, nationalities and

peoples

Enhanced cooperation among regions Number of joint forums organized 1 1 1 5 HoF Report of HoPR

Ensure one economic and

political community

One economic and political community

established

Number of determinant civil matters. 2 3 4 HoF Report of HoPR

Ensure balanced development of

Regional States

Improved fair distribution of budget subsidy Improved and updated budget subsidy distribution

formula draft document

X HoF Report of HoPR

Enhance the capacity of the

House.

The capacity of HoF members enhanced. Number of conducted trainings. 1 10 HoF Report of HoPR

Fair and timely response to claims are given. Number of submitted cases. 189 1000 HoF Report of HoPR

The constitutionality of different laws is

approved.

Number of investigated bills. 1 3 5 HoF Report of HoPR

Public awareness enhanced. Number of transmitted programs. 78 117 2000 HoF Report of HoPR

Public awareness on constitution enhanced. Number of published distributed constitution copies 90,000 1,200,000 HoF Report of HoPR

Improve ICT usage of Public and

Government Institutions to

ensure good governance and

increased public participation

Information Communication Technology Development

Realize Supremacy of the

Constitution in the country

Expand the accessibility of ICT

Accelerate ICT supported social

development to expand quality

education and health service

Foster the benefits of the

community from ICT services

Developed and make use of ICT

to foster the governments

economic policy (ADLI, Export

led Industrial Development)

119

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Means of

Verification

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Ensure the conduct of free & fair

election periodically

Enhanced capacity of NEBE Preparation and conduct of periodic electoral process in

accordance with the constitutional and electoral law,

regulation, and procedure of NEBE

The forth national

election conducted in

free and fair manner

conduct local and bi-

elections

Bi-election has bee conudcted in Addis

Ababa, Oromiya, SNNP according to

the election law

prepare and conduct local

election. prepare and

conduct 5th national

election

NEBE Report of HoPR

Increased in awareness about election

among citizens

Number of Civic Voter Education (CVE) delivered 30 million civic and

voter education

delivered

To teach civic and

voter education using

mass madia

civic and voter education has been

conducted to 1 million voters using

mass media

34 million (twice) civic

and voter education will

be delivered.

NEBE Report of HoPR

Enhanced capacity of political parties number of political parties obtained the training and

capacity building support

70 build the capacity of

political parties

77 political parities benefited from

capacity building

72 NEBE Report of HoPR

Enhanced capacity of the election officials number of election officials trained 220,000 conduct trainings to

build capacity of

election officials

250,000 NEBE Report of HoPR

Enhanced capacity of domestic observers Number of trained domestic observers in all types of

election

50,000 60,000 NEBE Report of HoPR

The population of Ethiopia get awareness

about the program of political parties

Number of political parties given media time 62 It depends on the actual

number of parties.

NEBE Report of HoPR

Number of workshops and trainings conducted 10 15 17 30 Report of HoPR

Number of TV Shows and Radio Programs Broadcasted,

Number of Printed Pamphlets Distributed

24 TV spot, 2 radio

program, 6 news letter,

12 bulletin

48 TV spot, 24 talk

shows, 5 radio

programs, 6 news

letter, 4 bulletins

47 TV spot, 5 talk shows, 103 radio

programs, 1 news letter, 3bulletins

52 TV spot, 24 talk shows,

5 radio programs, 6 news

letter, 4 bulletins

Number of distributed copies of constitution and

International Human Rights Document

7300 50,000 52,024 100,000

Number of assessment report and researches conducted in

Human Rights Thematic Area

4 11 2 21

Number of Member of HoPR and HoF trained in Human

Rights

40 1200 1011 40

Number of Police officers, Prison Administrators, Military

Members and Judges trained in Human Rights

500 730 755 1000

Number of branch offices established 6 6 1

Number of justice service centers 50 102 25

Number of EHRC staffs trained 60 70 73 220

Number of activities carried out in collaboration with

CSOs and government organs

7 11 28 11

Number of free telephone free make available 2 0

Build the capacity of the Human

Right Commission, improve its

accessibility and strengthen

cooperation among other

relevant sectors and

organizations

Promotion and Creation of

greater awareness on human

rights within the society

Ethiopian Human Rights

Commission (EHRC)

Enhancement of Culture for promotion and

protection of human rights)

Strengthening the capacity of

democratic institutions and Low

Enforcement Organs

Enhancement of the capacity of democratic

institutions in the Promotion an protection

of human rights)

Ensure existence of accessible and

responsive Institute to protect human rights

of the society

120

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Means of

Verification

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Number of progress reports prepared based International

Human Right Conventions for government feedbacks

2 4 2 5

Number of reports prepared on election and human rights _ 2 1 3

Number of national human rights action plan developed

Cumulative number of cases and complaints received,

investigated and rectified

1031 2000 1615 5000

Number of prisons and institutions human rights

investigation conducted on

_ 120 113 40

Cumulative number of research agendas conducted) 229 8 14

Ethiopian Institute of the

Ombudsman

Report of HoPR

Cumulative number of workshops, seminars and

consultative, meetings, trainings on the prevention of

maladministration and promotion of good governance)

48

36 32 84

Cumulative number of Promotional activities 141 186 180 280

Monitoring & Supervision of administrative agencies 0 82 13 156

Rectify maladministration

committed against citizens by

Executive bodies and

governmental institutions

Complaints received, investigated and

rectified)

Cumulative Percentage of maladministration rectified 20%

35% 75% 75%

Cumulative number of workshops and seminars organized

and conducted

0

10 3 24

Regulations, manuals, guidelines, documents produced) 0 30 2 10

Enhance Institutional Capacity

and Accessibility

Well organized and capacitated Institute Number of Trainees 040 66 100

Number of institutes connected with information

technology interface

1 1 3 1

Proportion of work processes automated with information

technology

50 80 56.25 98

Improved in tax payers training and relation Tax payers training and awareness creation coverage (%) 81 87 84.94 99

Increased in tax payers registration percentage growth in tax payers registered 13 15 11.07 15

Improved in tax payers cooperation Percentage growth in tax payers cooperation 40 80 0 99

Ensure rule of law Improved in tax audit system percentage coverage in tax audit 15.1 19 15.22 30

Improved in relationship and cooperation

among the citizens and stakeholders to

protect tax evasions

Number of agreed and signed memorandum of

understanding documents

- 4 6 12

Proportion of actions taken according to the standard 50 75 0 99

proportion of tax related court affairs decided 50 50 91.28 99

Improved in risk averting works Number of branch offices implemented risk averting

management system

2 14 17 16

Curtail maladministration

committed against the citizens

by government

institutions/executive bodies)

Reduced in maladministration committed

against the citizens, children, women and

other disadvantaged groups by government

institutions/executive bodies)

Ethiopian Revenue and

Customs Authority (ERCA)

Ensure citizens rights to

Freedom of Information

The right to information of the citizens

ensured)

ERCA annual

report

Ensure Government compliance

with Constitutional, regional and

Int'l human rights standards)

Strengthening of institutional framework for

monitoring and reporting of human rights

situations)

Rectify human rights violations

committed against citizens by

Gov organs)

Improved in judiciary on tax evaders and

suspected counterfeiters

Improved in efficiency, supply and usage of

tax administration Information system

Strengthen Modern Tax

Administration System

Enhance tax payers awareness

on tax and improve public

relation

established mechanism for channeling and

resolving complaints

Ensure Good Governance, Improve Tax Administration and Zero Tolerance to Corruption

121

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Means of

Verification

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Number of professionals employed 152 39 56 17

Number of trainings conducted in domestic and abroad 235 247 386 300

Long term training conducted in domestic 5 5 3 6

Number of study tours conducted abroad 15 16 14 19

Strengthened specialized Anti-corruption

entities (Ethics liaison Units.)

Number of Ethics liaison units 1

Approved proclamation of asset registration

Number of approved assets registration proclamation 1

The proclamation will be enacted by

2011/12

Approved ethics and anti-corruption policy Number of approved and implemented ethics and anti-

corruption policy 1

The policy document drafted and

submitted for approval

Developed and issued legislation protecting

whistle blowers

Legislation issued

the proclamation has been approved

Developed and issued legislation protecting

whistle blowers

Legislation issued

the proclamation has been approved

Prepared and developed Code of Conduct

for higher officials civil servants

Number of prepared Code of Conduct

1

Civil Services is carrying out the

preparation of code of conduct of the

civil servants

Developed Anti-corruption policy and

training manual

Policy document & training manual; 1

The second National Anti-corruption

Survey Number of surveys reports 1 pilot survey conducted -

Conducted anti-corruption surveys based on

the community information Number of conducted reports 4 4 4

Branch offices opened in regions Number of Regions 1 1 -

increased in number of forums organized Number of joint forums organized 2 7 2

Increased in Training of Trainers Number of trainers on ethics and anti-corruption 800 920 2039 1,609

Number of citizens participated on awareness creation

workshops

4,000 4,600 29,378 8,045

Number of brochures distributed 195,000 224,250 420,000 221,249

Broadcasted number of short play radio and TV dramas 14 14 21 2

Number of practical working systems research conducted 44 51 51 88

Number of monitoring and evaluation performed 36 41 51 72

Increased in conviction rate conviction rate (%) 90 90 86.8 92

Improved in prosecuting and convicting

corrupt cases

Proportion of embezzled assets confiscated and returned

to the government

55 80

Accelerate and strengthen

campaign against corruption

Improved in awareness creation and

campaign against corruption

Draft and pass proclamations,

directives and guidelines to

improve implementation

capacity of the commission

Implement integrated anti-

corruption campaign and

fighting against corruption

Ethiopian Ethics and Anti-

Corruption Commission

(EEACC)

Implemented working systems to enhance

transparency and fight against corruption in

government offices and public enterprises

Improved in working system and human

resource of the commission

ERCA annual

report

Conduct corruption survey

Build Implementation Capacity

of Ethiopian Ethics and Anti-

Corruption Commission

(EEACC)

Continue teaching ethics and

anticorruption education to the

Executive, Legislature and

Judiciary members leading to

zero tolerance of corruption

Enhance the legal and

operational capacity of

preventing and fighting

122

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Means of

Verification

Implementing AgencyOutputObjective Indicator Base year

(2009/10)

Number of towns implement legal framework,

institutional setup and land administration system

7 200 Ministry of Construction and

Urban Development

Number of towns commence land registration 7 200

Proportion of land related information collection coverage 80 100

Number of cities and towns at which lease is

implemented

68 150 150

Proportion of developed land registered by lease

administration office (%)

10 50

Area of land serviced and ready for different types of

investment (hectare)

6500 7150 26177 10466

Area of land prepared for housing and related

construction(%)

45 20.21 45

Proportion of land withcomplete infrastructure

services(%)

25 2 25

proportion of area of land serviced and ready for MSEs

(%)

20 60.61

proportion of area of land serviced and ready for

recreation services(%)

10 11.3

Number of urban plan institutes established in regions

which need special support

4 2

Number of licensed private urban planning consultants 10 50 0 200

Number of towns with urban plan 150 150 195 150

Number of towns that implement prepared plan 150 150 150

MEDIA BROADCASTING SERVICES

Number of community radio stations 8 12 10 30

Number of commercial radio stations 5 - - 3

Number of public radio stations 9 10 -

Number of public television stations 4 5 6 9

Number of media expansion licenses licensed 49 21 36 22

Number of Subscribers 1 1 1 1

Percentage of languages used in media broad cast 15% 20% 20% 40%

Number of periodicals registered 143 50 42 60

Number of measures taken to rectify violation against

electronic and print media broadcasting laws

44 130 152 150 EBA annual

report

Number of media professionals trained 80 100 75 150

Number of workshops conducted among media

broadcasters and media associations

0 2 1 3

Improve land use management

and administration system

land and land related information system

database

Improve urban planning and

implementation

Improved urban planning

Implemented urban land administration

systems and improved in urban land service

1. Expand Mass Media

Increased in mass media broadcasting,

circulations and improved in quality of

broadcast

Develop and implement land

and land related information

management system

Strengthen Capacities of

broadcasters and media

professionals to operate

according to the media law

built capacity of media broadcasters and

media associations

Expand media to and enhance

benefits of the public

Ethiopian Broadcasting

Authority (EBA)

EBA annual

report

ERCA annual

report

system strengthened to follow up violation

against medial laws

Ethiopian Broadcasting

Authority (EBA)

2. MEDIA INSPECTION AND SUPPORT

Rectify violation against media

laws and procedures to satisfy

public interest to media

123

XIII. Table 13፡ Children and Gender Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Existence in implementation of

women's package and support of

development partners.

Number of women association transferred

from micro and small to medium enterprises

50 101 500

Increased in credit and saving

institutions and improved in benefits

of women

Cumulative number of women benefited

from credit and saving service

1,000,000 1,200,000 610,789 5,000,000

Number of new and capacitated training

institutions (BDS)

1 1 14

Number of women trained on market

management and different professions

working on income generations

8000 16000 403071 40000

Percentage of sectors that mainstreamed

women's and children's affair

15 25 5 60

percentage growth of women's in decision

making position in the parliament(%)

29 30 27.9 35

Percentage growth of women's on decision

making position in judiciary

19.8 21 30 25

Percentage growth of women's decision

making in executive bodies

19.4 21 16.5 25

Established system to enhance

awareness about gender and children

Percentage of sectors that institutionalized in

integrating women's and children's affair

5 10 3 50

Manuals and materials (tools)

prepared to mainstream women's and

children's affairs in all sectors

development strategy

Number of prepared and practical standard

manuals and materials

3 3 3

Goal 3 Drafted policies and laws on gender

and children

Number of legislated child policies 0 1 1

Number of committees established annually

to strengthen child right

12 6 1486

Number of community based discussions

conducted

0 2000 10091 2000

Number of vulnerable children supported

and threaded by social support system

5000 500000 64289 1000000

Number of annually trained nursemaids and

door to door threat provider trainees

0 5000 855 2500

Goal 3 Number of supported and strengthen women

association

7 33 4734 3000

Existence of strengthened institutional

capacity

Percentage of capacitated women's affair

institutional set ups

1ዐ 2ዐ 112% 1ዐዐ

Integrated working system and

collaboration established

Number of capacitated networks 8 20 247 100

Established and strengthened

Coalition comprises Women

professionals and other sectors

Number of created and strengthened

Networks

4 10 10 11

Goal 3 By establishing management

information system strengthen

women's coalition and monitoring

and evaluation system.

Improve the lives of vulnerable

children, safeguard/protect those

affected and enhance their

contribution to economic and social

development.

supports given to vulnerable women

and children

By supporting women's associations

at all levels strengthen the

mobilization for women

empowerment.

Existence of different `institutions

and working systems which enables to

increase women's economic and

Ministry of

Children, Youth

and Women and

regional

counterparts

Ministry of

Children, Youth

and Women report

Goal 1 and Goal 3 By integrating with economic and

social developments enhance

comprehensive capacity of women

and children and increase their

benefits.

Expanded institutional trade

development service (BDS)

Existence of included women's and

children's affair in all sectors'

development program

Design and implement child policy

that takes international child

convention into consideration .Existence of International conventions

signed and drafted & amended laws

on children's affair

Goal 1 and Goal 3 Enhance the efficiency and benefit of

women.

Ministry of

Children, Youth

and Women and

regional

counterparts

Ministry of

Children, Youth

and Women report

Links to

MDGs

Implementing

Agency

Means of

Verification

Objective Output Indicator Base year

(2009/10)

124

XIV. Table 14፡ Culture and Tourism Development

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Number of internationally recorded non-moveable heritages 8 2

Number of Script Registered as World Heritage 12 1

Nationally registered non-moveable heritages 3 3 1

Nationally registered intangible heritages 5 5 4

Nationally registered moveable heritages 201 200 400

Number of heritage places recognized 2 1 2

Percentage decrease in illegal trade of cultural heritages and

activities on heritage places

20 20 100

Number of legally recognized wild animal parks 2 2 1 2

Decreased illegal hunting and trade of wild animal and their

products(%) 25 30 25 85

Percentage increase in number of endangered wild animal species 1 0.82 5

Number of consultations and discussions held among diversified

cultural owners (comprises 25% female and 25% youth participants)

5 2 1

Protected number of Information heritages 7019 8304 7019

Identified and introduced cultural values (tiraz,bind) 2 1 3

Number of cultural festivals conducted 4 1

Number of heritages developed and used for appropriate service 500 500 500

Number of heritage places used for appropriate service 1 1 1

Number of folklore arts presented 15 14 15

Number of jobs created (40% female and 80% youth) 200,000 240,000 221,034 500,000

Number of tourist inflows 500,000 560,00 1,00,000

Income generated from tourism (Million USD) 250 504 3,000

Amount of government revenue collected from tourism service 17,600,000 20,900,000 40,000,000

Number of certified tourism service providers 31 15 20 0

Number of certified cultural art professionals 25 25 150

Number of constructed lodges 18 25 35

Number of language profiles (volume of linguistic groups) 1 1 1

Goal 1 Build public and private sector

institutions' implementing

Accelerated tourism sector

development

Percentage increase in tourism facilities 10 10 10

Number of tourism professionals trained - 1750 1331 4800

Number of trainees trained in tourism services 200 200 200

Number of accredited tourism institutes 2 6 1 25

Number of scout houses in the park 4 4 3 13

Number of established tourism sector councilors 12 24 2 60

Number of art professionals trained (50% females and 70% youth) 241 241 290

Develop cultural and natural

ecotourism centers so as to

increase its contribution for

economic growth

Indicator Base year

(2009/10)

Identified cultural values

and tourist attraction places

Increased in share of tourism

in GDP

Goal 1 Undertake researches on scanty

cultural heritages and natural

attractions so as to increase its

contribution for economic

growth.

Links to

MDGs

Goal 1and 7 Protecting, recording promoting

and developing cultural values,

heritages and natural ecotourism

so as they can be used in

benefiting for cultural, social and

political diversity of nations,

nationalities and peoples of

Ethiopia.

Identified and registered

languages, indigenous

knowledge, natural and

cultural heritages and

protected wild animal parks

Implementing

Agency

Goal 1 and 8

Ensure one economic and

political community through

developing assets of cultural

diversity and folklores

Means of

Verification

Ministry of Culture

and Tourism

Ministry of

Culture and

Tourism annual

report

Objective Output

Identified and implemented

natural and cultural heritage

protection.

Goal 1 and 8 Identified and studied

cultural values that

strengthen one economic

and political community

among nations, nationalities

and people.

recognized and developed

nations, nationalities and

people folklore

125

XV. Table 15፡ Environmental Protection

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Number of national climate adaptation manuals prepared 1 1 1

Number of prepared sectroal and regional climate change adaptation plans 21 20 21

Number of climate change resilient infrastructures 3 3 11

Number of implemented projects to decrease vulnerabilities of wetlands,

lakes and riverbanks

3 11 4 11

Number of implemented projects to build a climate resilient green economy

at the Woreda level

40 1 60

Number of supports obtained and channeled for implementing projects that

would generate a minimum of 8000 mega watt replacing activities that

would otherwise emit GHGs

1 3

Number of supports obtained and channeled for implementing a project that

sequesters GHGs through the afforestation/ reforestation of 2000 square

kms of degraded lands

7 10

Number of supports obtained and channeled for implementing the

sequestration of GHGs, and managing 2876 square Kms of natural forests,

4390.96 square KM of deciduous forests, 60360 square KMs of national

parks, 51496 square kms of wetlands

1 7 7

Number of supports obtained and channeled for implementing a project that

sequesters GHGs and enhances agro forestry in 261840 square KMs of land

and through the application of compost to increase the fertility of 40000

square kms of agricultural land

11 11

Number of supports obtained and channeled to implement projects that

mitigates polluting gasses in order to recover methane from a total of 20

million cubic meters of deposited waste within existing or new landfills

1 10

Number of compliance reports on the enforcement of the solid waste

management proclamation

4 4 11

Effectiveness evaluation reports on the enforcement of the 8 categories of

industries regulation in number.

4 1 1

Number of supports obtained and channeled for sectoral environmental

units and regions to ensure that environmental considerations are adequately

mainstreamed into proposed development activities

6 16 16

Number of additional environmental laws prepared 3 2 3

Number of prepared resource mobilization and allocation systems for

climate change adaptation and mitigation technology transfer for

communities

Disclosed annual and 5year Ethiopian state of the environment report in

number

1 1 2

Means of

Verificatio

Base year

(2009/10)

new and additional funds acquired

and implemented for mitigation

technology transfer including funds

solicited through carbon trading

additional and new Funds utilized

for Climate change adaptation

technology, enhancement of good

practices and skills development

Output

EPA's Report

Indicator

enhanced capacity of natural

resources to provide rew-materials

and services due to reduced

pollution and mis-use of resoucers

Environmental

Protection

Authority (EPA)

Implementing

Agency

Links to

MDGs

Objective

Goal 7 Enforce

environmental laws

in all admistrative

units and sectors

Goal 7 To enhance the

capacity required to

build a climate

resilient green

economy

Goal 7 Developing capacity

for taking actions on

mitigating Green

House Gases

126

XVI. Table 16፡ Social Protection and Labor Market

Plan Achievement GTP Target

2010/11 2010/11 2014/15

Improved in physical support services Number of beneficiaries with

physical support service 41,154 48,715 13,133 95,642

Improved in access to and service delivery of

social protection

Number of citizens (families,

aged and vulnerable groups) that

obtain social protection service

273,207 323,697 43,292 637,857

Improved in implementation capacity and

awareness creation through training on social

welfare

Number of citizens trained in

awareness creation trainings

384,055 384,055 2,060,498 945,927

Goal 1 &

Goal 8

Establish and implement labor

market information at national and

regional level that enables to

balance the countries human

resource demand and supply

Documented and utilized Key Information on Labor

Market (KILM)

Number of key information labor

market

7 1

Supported and domestically employed citizens Number of citizens benefited

from employment agent service

10064 10050 267770 16750

increased in number of citizens benefited from

foreign working licenses

number of citizens employed in

foreign coutries 2000 3500 46001 50000

Foreign citizens that licensed with work

permission and renewed their permissions

Number of foreign citizens with

working license in Ethiopia

20000 20000 25899 30000

Develop monitoring services of

working conditions/environment

Improved in working environment Number of organizations

included in monitoring and

evaluation framework 4996 5229 9527 8752

Increased in proportion of workers organized in

association out of overall salary paid workers

Proportion of workers organized

in association(%)

12.90% 8%

Increased in percentage of workers enrolled in

corporate agreement out of overall salary paid

workers

Proportion of workers included

in corporate agreement(%)

22.70% 6%

Established bi-lateral consultation system at

organizational level

Established number of bi-lateral

consultation systems 37 50 108 200

Established tri-lateral consultation system in all

regions

Established number of tri-lateral

consultation systems 1 2

Increased in proportion of solved

disagreements/working disputes through

dialogue for mutual benefit

Percentage of solved work

disputes through dialogues(%)

54% 4% 5%

Ministry of

Labor and social

affairs and

regional

counterparts

Goal 1 Expand social consultation services

Goal 1 &

Goal 8

Expand job opportunity services

Ministry of

Labor and

Social Affairs

Annual Report

Base year

(2009/10)

Links to

MDGs

Implementing

Agency

Means of

Verification

Objective Output Indicator

Goal 1, 2 and

Goal 6

Promote and ensure the social rights of

persons with disabilities and aged

peoples, giving equal opportunity to

participate and being benefited in the

country's social, political and economic

activates to support the countries over

all development program

127

128

APPNEDIX II. Additional Sector Specific Information

129

Appendix 2.1 Economic sectors

Table 2.1.1 Area of cultivated and production by Small holder farmers in 2010/11

Meker Belg Total

Crop type Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Pulses 9,690.73 177,613.37 934.95 8,080.79 10,625.68 185,694.16

Cereals 1,357.52 19,531.94 211.46 912.54 1,568.98 20,444.48

Oil seeds 774.53 6,339.99 26.64 14.66 801.17 6,354.64

Total 11,822.79 203,485.29 1,173.05 9,007.99 12,995.83 212,493.28

Source : central Statistical Agency Bulletin 505 April-September (2011), Addis Ababa

Table 2.1.2 Area of cultivated land and production by commercial farms in 2010/11

Meker Belg Total

Crop type Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Pulses 181.77 6,112.92 No data No data 181.77 6,112.92

Cereals 13.05 212.52 › › 13.05 212.52

Oil seeds 257.43 3,001.98 › › 257.43 3,001.98

Total 452.24 9,327.41 › › 452.24 9,327.41

Table 2.1.3 Total cultivated land and production in 2010/11 fiscal year

Meker Belg Total

Crop type Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Area cultivated

(in thousands

ha)

Production

(thousands

quintal)

Pulses 9,872.51 183,726.29 934.95 8,080.79 10,807.45 191,807.08

Cereals 1,370.57 19,744.45 211.46 912.54 1,582.03 20,656.99

Oil seeds 1,031.96 9,341.97 26.64 14.66 1,058.60 9,356.62

Total 12,275.03 212,812.70 1,173.05 9,007.99 13,448.08 221,820.69

Table 2.1.4 Total cultivated land and production in 2009/10 fiscal year

Crop type

Meker Belg Total

Area cultivated

(in million ha)

Production

(million

quintal)

Area cultivated

(in million ha)

Production

(million

quintal)

Area cultivated

(in million ha)

Production

(million

quintal)

Pulses 9.64 163.74 1.02 11.87 10.66 175.60

Cereals 1.49 18.98 0.22 1.43 1.71 20.41

Oil seeds 0.78 6.44 0.01 0.01 0.79 6.44

Total 11.91 189.15 1.25 13.30 13.16 202.46

130

Appendix 2.2 Social sectors

Table 2.2.1 Summary of achievements in education sector in 2010/11

Indicator Base year

(2009/10)

Plan Achievement

2010/11 2010/11

kindergarten enrolment rate 4.8 9.5 5.2

Male enrolment rate (%) 4.8 9.5 5.3

Female enrolment rate (%) 4.7 9.5 5.2

Grade 1 gross enrolment rate (%) 142.9 128 163.4

Male gross enrolment rate (%) 150.4 133 171.9

Female gross enrolment rate (%) 135.2 123 154.5

Grade 1 Net enrolment rate (%) 84.5 87.0 91.3

Male gross enrolment rate (%) 86.2 88.3 94.2

Female gross enrolment rate (%) 82.7 85.5 88.4

Primary school first cycle (1-4) GER including ABE (%) 129.1 130.7 124.0

Male primary school first cycle (1-4) GER including ABE (%) 133.4 134.9 128.8

Female primary school first cycle (1-4) GER including ABE (%) 124.5 126.2 119.1

Primary School GER for underserved regions (%)

Afar 58.0 66.0 40.1

Somali 63.8 71.0 61.3

Primary School second cycle (5-8) GER (%) 67.1 68.5 66.1

Male gross enrolment rate (%) 67.1 68.5 67.4

Female gross enrolment rate (%) 68.3 69 64.8

Primary school (1-8) GER including ABE (%) 95.9 96.9 96.4

Male Gross Enrolment Rate (%) 98.7 99.4 99.5

Female Gross Enrolment Rate (%) 93.0 94.4 93.2

Primary school first cycle (1-4) NER including (%) 91.5 92.2 91.8

Male NER (%) 92.9 93.3 94.0

Female NER (%) 90.1 91.0 89.4

Primary School second cycle (5-8) NER (%) 52.0 57.6 47.3

Male NER (%) 51.9 57.5 46.6

Female NER (%) 52.0 57.6 47.9

Primary school (1-8) NER including (%) 82.1 89.7 85.3

Male NER (%) 83.7 90.8 87

Female NER (%) 80.5 88.6 83.5

Adult Education Enrolment (Million) 5.2 9.1 1.2

Adult education enrolment (%) 36 47.8 37.5

Male adult enrolment rate (%) 50 59

Female adult enrolment rate (%) 23 37.4

Gross enrolment rate for grade (9-10) (%) 39.7 41.6 38.4

Boys gross enrolment rate (%) 44 44.5 41.8

Girls gross enrolment rate (%) 35.2 38.5 34.9

Gross enrolment rate for grade (11-12) (%) 6 6.2 8.1

Boys gross enrolment rate (%) 8.2 8 9.4

Girls gross enrolment rate (%) 3.8 4.3 6.7

Total number of students admitted to preparatory (grade 11-12) 243080 209000 288216

Ratio of girls admitted to preparatory school (%) 35.7 35 42.2

Total number of students admitted to TVET 353,420 799,548 366,613

Total number of students admitted to TVET in government institutes 430,562 479,729 215,559

Total number of students admitted to TVET in no governmental institutes 287,041 319,819 155,788

Ratio of girls admitted to TVET 46 46.9 46.2

Total number of students admitted to under graduate degree program 185788 196893 211197

Ratio of girls admitted to undergraduate degree program (%) 29 30.2 25.6

131

Table 2.2.1 Summary of achievements in education sector in 2010/11… cont’d

Indicator Base year

(2009/10)

Plan Achievement

2010/11 2010/11

Annual undergraduate intake rate (%) 31.2 10.8

Post graduate intake rate 13881

Female post graduate intake rate (%) 11.3 14.04 15.9

Male post graduate intake rate (%) 88.7 85.96 84.1

Share of lower primary school (1-8) qualified teachers (%) 38.4 49.7 47.2

Share of lower primary school (1-4) qualified teachers (%) 15.5 20.9

Share of lower primary school (5-8) qualified teachers (%) 77.8 84.5

Share of secondary school (9-12) qualified teachers (%) 79.4 83.6 86.75

Pupil/teacher ratio for grade (1-4) 56.9 55.1 57.0

Pupil/teacher ratio for grade (5-8) 45.7 44.4 45.0

Secondary school girls/boys ratio ( grade 9-10) 40.2 39.0 34.9

Secondary school girls/boys ratio ( grade 11-12) 25.3 24.8 26.1

Primary (1-4) student section ratio 56.9 55.52 58

Primary (5-8) student section ratio 45.7 44.56 55

Primary (1-8) student section ratio 57 55.6 57

Secondary (9-12) student section ratio 64 59.2 58

Ratio for pupil/textbook available in primary school 1.25፡1 1፡1 1.2:1

Ratio for pupil/textbook available in secondary school 1፡1 1.2:1

Primary school (1-4) completion rate (%) 74 75 69.1

Male primary school (1-4) completion rate (%) 75 76 72

Female primary school (1-4) completion rate (%) 73 74 66.1

Primary school (5-8) completion rate (%) 46 49 49.4

Male primary school (5-8) completion rate (%) 47 49 52.5

Female primary school (5-8) completion rate (%) 44 49 46.2

Grade 1 dropout rate (total) (%) 16.7 13.6 19.9

Grade 1 boys dropout rate (%) 17.3 14.1 20.4

Grade 1girls dropout rate (%) 16.0 13.0 19.2

Average grade 4-8 repetition rate ( total) (%) 5.8 4.9 8.8

Average grade 4-8 repetition rate ( total) (%) for male 6.1 5.2 7.2

Average grade 4-8 repetition rate ( total) (%) for female 5.4 4.6 10.6

Primary School first cycle (1-4) gender parity index 0.93 0.94 0.94

Primary School second cycle (5-8) gender parity index 0.97 0.99 0.96

Secondary school first cycle (9-10) gender parity index 0.80 0.87 0.83

Secondary school second cycle (11-12) gender parity index 0.46 0.54 0.71

132

Table 2.2.2. Achievements in health sector development program of GTP in 2011

Indicator Base year

(2009/10)

Plan Achievement

2010/11 2010/11

Improved in maternal health

Reduced MMR per 100,000* 673 (2005

EDHS)

503 676 (2011

EDHS)

Contraceptive prevalence rate (%) 14 (2005

EDHS)

45 29 (2011

EDHS)

Antenatal Care-ANC+ (%) 31 53 82.2

Proportion of births attended by skilled health personnel (%) 15.7 34 16.6

Postnatal care-PNC (%) 34 52 42.1

Prevalence of anemia in women of child bearing age(15-49) (%) 27 17

Ensure improved health service delivery to reduce child mortality

Neonatal mortality (out of 1,000) 39 37

Reduced IMR per 1,000 77 59

Reduced under-five mortality rate per 1,000 123 (2005

EDHS)

88

Pentavalent 3 vaccination coverage (%) 82 85 84.7

Proportion of 1-year-old children immunized against measles) (%) 76.6 82 81.5

Full immunization of infant 72.3 80 74.5

reduced in children malnutrition problem

Stunting (%) 46 42 44

Wasting (%) 11 8 10

Successful TB control: TB- case detection rate) (%) 36 59 36.8

Tuberculosis treatment success rate (%) 84 86 82.5

Reduced in malaria epideictic problem for economic productivity and

social development

Percentage of households in malarious areas with two ITNs) 65.6 100 NA

proportion of pregnant women who slept under ITN 42.5 60 NA

proportion of U5 children who slept under ITN 42.1 60 NA

Proportion of identified local administrations free from malaria

epidemic (%)

0 NA

Improved in household sanitary services

Proportion of households using latrine (%) 20 86

Improved in quality of health service

out-patient visit per capita 0.2 0.3 0.3

Primary health service coverage (%) 89.6 100 96

133

Table 2.3 Physical performances of Central Statistical Agency

Type of Activities

Projec

t

Status

Project

status as of

2009/10

2010/11 fiscal year

planned achieve

d

performan

ce

Agriculture Statistics

Crop production forecast New 8 92 92 100%

Crop Sample Survey Meher season

Crop land, area & production “ 8 92 95 103%

Farm management survey “ 8 92 95 103%

Land use survey “ 8 92 95 103%

Livestock survey “ 8 92 92 100%

Crop & livestock product Ut. “ 8 92 92 100%

Large & Medium scale farms for year 2010/11 Old 70 30 30 100%

Large & Medium scale farms for year 2010/11 New - 75 70 93%

Crop sample survey Belg season 2009/10

Crop land, area & production for year 2009/10 Old 70 30 25 83%

Farm management survey for the year 2009/10 Old 70 30 30 100%

Crop land, area & production for year 2009/10 New 5 65 65 100%

Farm management survey for the year 2009/10 “ 5 65 65 100%

Business Statistics

Industries (Year 2009/10) New - 70 70 100%

Large and Medium Manufacturing Industries (Year

2008/2009) Old 70 30 23 77%

Distributive trade & services (2009/10) 65 35 35 100%

Construction survey (2009/10) Old 65 30 30 100%

Quarterly reports on producers price index for

manufacturing New - 75 75 100%

Foreign trade Statistics “ - 100 100 100%

Household surveys & Price Statistics

Agricultural products Price New 8 92 92 100%

Agri. Products Price Index “ - 100 110 110%

Retail price “ 8 92 92 100%

Retail price index “ - 100 110 110%

Expenditure and Consumer “ 10 55 55 100%

Welfare Monitoring Survey “ 8 60 60 100%

Employment/Unemployment survey (2009/10) Old 70 30 30 100%

Employment survey (2010/11) New - 85 70 82%

Population Statistics

Analysis of Census Report Old 20 75 65 87%

Dissemination of Census Reports Old 80 20 20 100%

134

Appendix 2.4a Indicators drawn from GTP and GTP Policy Matrix

Indicator Baseline

Baseline

2010/11 Fiscal Year Remark

planned Actual

Macro-economy

1 Real GDP growth rate (%) 10.6 11.0 11.4

2 Per Capita GDP @ CMP(USD) 377 392

3 Gross domestic saving as % of GDP 5.2 7.4 8.8

Government Finance

4 Domestic revenue including grants as % of GDP 17.3 17.8 16.7

5 Domestic revenue as % of GDP 14.0 14.1 13.5

6 Tax revenue as % of GDP 11.3 11.7 11.5

7 Total poverty-oriented expenditure as % of GDP 12.3 13.5 12.2

8 Total expenditure as % of share of GDP 18.6 20.5 18.4

9 Capital expenditure as % of GDP 10.3 11.6 10.4

10 Recurrent expenditure as % of GDP 8.4 8.9 7.9

External Sector

11 Total export as % share of GDP 13.6 16.6 16.3

12 Resource gap as % share of GDP (19.4) (17.9) (15)

Economic Development

13 Agriculture and allied activities growth and % of GDP 7.6 8.5 9.0

14 Crop productivity (qt/ha) 17.0 17.5 17.75

15 No. of male & female headed farmers with food insecurity problems benefiting from family level

credit package

233400 233700 167211

Road

16 Area further than 5 km from all weather roads (%) 64 57.3 61.8

135

Appendix 2.4a Indicators drawn from GTP and GTP Policy Matrix.. cont’d

Indicator Baseline

Baseline

2010/11 Fiscal Year Remark

planned Actual

Education

17 Primary school pupil text book ratio 1.25:1 1:1 1.2:1

18 Male and female adult education participation rate (%) 36 47.8 37.5

19 Primary school completion rate (total and male/female) for grades 5-8 46 (47/44) 49 (49/49) 49.5 (52.5/46.2)

20 Average and boy/girl primary grade 1 dropout rate 16.7 13.6 19.9

21 Gross enrolment rate (total and male/female) for secondary school grades 9-10 39.7 41.6 38.4

Health

22 Birth attended by skilled health personnel (%) 15.7 34 16.6

23 Under one year penta 3 immunization coverage (%) 82 85 84.7

24 HIV positive pregnant women receiving a complete course of ARV prophylaxis to reduce the risk of

mother-to-child infection

8.3 9 9.3

25 Prevalence of anemia in women of child-bearing age (15-49) 27 17

26 Proportion of households using a latrine 20 86

Good Governance and Capacity Building

27 A Human resource development (HRD) and human resource planning policy in the civil service is

approved and implemented.

Draft Policy

document

prepared

The draft

approved and

implemented

New draft guidelines of

human development

prepared

28 Ethiopian Institute of Ombudsman (EIO) - Cumulative number of cases and complaints received,

investigated and rectified

1031 2000 1615

29 Average number of adjournments in first instance and appeal cases 3.1 2.8

30 Number of public information provision centers established 81 60

136

Appendix 2.4b. Salient Achievements of the GTP

Indicator Baseline

Baseline

2010/11 Fiscal Year

planned Actual Remark

Macro Economy

External Sector

31 Manufacturing share as percentage of total exports 118.4 353.2 58.8

32 Absolute Poverty Headcount (%) 38.7 (2004/05) 27.7 29.6

Rural - 30.4

Urban - 25.7

33 Food poverty Headcount (%) 38 (2004/05) 26.6 33.6

Rural - - 34.7

Urban - - 27.9

Economic Development

34 Area of land rehabilitated (thousands ha) - 4383 4055.1

35 Agriculture Exports (value in mln USD and % of total exports) USD147.9 mln

36 Number of male and female headed farmers graduating from PSNP based on evidence 730494 370980 152,006

Road

37 Number and % of rural kebeles connected to main roads by an all weather road 39 48 42

Energy

38 Power generating capacity (MW) and % of which is renewable 2000 2045 2075.1

39 Total system loss (%) 11.5 10.8

40 Increase number of new customers (mln and per 100 population) 2

Telecommunication

41 Mobile telephone subscribers (in mln and per 100 population) 6.52 - 10.7

137

Appendix 2.4b. Salient Achievements of the GTP…cont’d

Indicator Baseline

Baseline

2010/11 Fiscal Year

planned Actual Remark

Water

42 Number and % of households (urban/rural) provided with new/improved drinking water sources 68.5 75 73.31

43 Area of land under small, medium and large scale irrigation (ha) And/or 127243 115565 32034

Construction and Urban Development

44 Jobs created for men and women through MSEs (mln and % of adult population) - 0.410 0.542

Social Development

Education

45 Net (total and male/female) primary enrolment ratio (1-8) (%) (and by Region) 82.1 89.7 85.3

M F T M F T M F T

Tigray - - - - - - 91.9 94.8 93.3

Afar - - - - - - 31.6 32.2 31.9

Amhara - - - - - - 91.5 95.5 93.5

Oromiya - - - - - - 87.8 81.0 84.5

Somale - - - - - - 52.8 48.4 50.9

Benshangul Gumuz - - - - - - 100 86.6 95.2

SNNP - - - - - - 97.2 87.1 92.2

Gambela - - - - - - 100 91.9 97.6

Hareri - - - - - - 82.1 69.5 75.9

Addis Ababa - - - - - - 75.0 71.0 72.4

Dire Dawa - - - - - - 73.9 68.9 71.4

1 4.9 million rural and 0.444 million urban people were able to access improved dirking water sources in 2010/11 fiscal year.

138

Appendix 2.4b… Salient Achievements of GTP cont’d

Indicator Baseline

Baseline

2010/11 Fiscal Year Remark

planned Actual

Health

46 (HIV /AIDS incidence rate) prevalence among pregnant women age 15-24 0.28 - 0.14 Data on incidence

by age 15-24 are

not available but

total incidence rate

is 0.14

47 TB case detection rate (%) 36 50 36.8

Good Governance and Capacity Building 48 The established systems for participation of citizens’, community based

organizations’ and other civil society organizations’ in development

processes at all levels

Enabling environment &

system in place for citizen

& CBO’s participation in

development process and

participation started

Strengthen the existing

system & improve the

participation of citizen

and CBO’s in dev’t

process at all levels

Subject to

discussion with the

sector

49 Number of male and female civil service staff trained through short and long

term trainings

Reform program

implementation started &

awareness created among

the civil servant

50% Data not available

50 Percentage improvement in expanding alternative dispute resolution

mechanism and access to legal aid clinics

BPR started 20% Data not available

CHILDREN AND GENDER DEVELOPMENT

51 % of decision making positions in the judiciary which are held by women

(Changed to %growth of decision making position in the judiciary which are

held by women)

19.8 21 30

52 % of decision making posts (at team leader or above) that are held by women

(changed to %growth of women’s decision making in executive bodies)

19.4 21 16

53 New Social Protection Policy in place and number of vulnerable groups

benefitting (by children, elderly, disabled etc) (Changed to Number of

vulnerable children supported and threatened by social support system)

5000

500,000

64,289

139

Appendix 2.4C. New Indicators Suggested by DAG Base line

2009/10

2010/11

planned

2010/11

Actual

Remark

The Macro economy 54 Annual Inflation Rate Single digit Single digit 18.1

55 Private Sector contribution to total GDP Best practices are needed, not

feasible at current stage,

56 Private investment as a share of GDP (disaggregated by Foreign Direct Investment, Diaspora

investment, formal bank lending, and domestic investment from savings as well as by

implemented and operational investment as a share of total investment licenses)

Best practices are needed, not

feasible at current stage

Public Finance 57 % of federal budget allocated to schemes addressing gender inequality and women’s

participation

Clarification is needed from

DAG

58 % of federal budget allocated to health 6.5 7.2 6.7

Economic Development Agriculture

59 Regional Level Emergency contingency plans prepared and implemented (#) (contingency

budget in thousand birr)

115000 125000 118230

60 National Agricultural land certification study completed and implemented (number of Male

and Female Households) (Male headed/female headed farmers certified with first and second

level land owner ship certification in million)

9.01 4.39 1.211

61 Regional climate change adaptation plans prepared and implemented (#) - - 9 regional

states prepared

manuals on

climate change

adaptation

Industry

62 Growth of Industry value added 10.8 14.0 15.0

63 Industry percent share of GDP 12.9 13.2 13.4

140

Appendix 2.4C New Indicators Suggested by DAG cont’d Base line

2009/10

2010/11

planned

2010/11

Actual

Remark

Infrastructure Development Roads

64 Number of fatalities per 10,000 vehicles (a key issue to follow) 50 70 50

65 Routine and Periodic Maintenance expenditure as a percentage of road sector expenditure (%) Data are not available

66 Reduction of transport prices for goods Definition of indicators and

clarity is required.

Telecommunication

67 Speed of internet connection Not relevant as connection

speed depends on the type

of network connection.

68 Doctors to Population Ratio (% ) 1:37996 Subject to discussion with

the sector

69 Child nutrition Subject to discussion with

the sector

70 Number of PEFA indicators showing overall improvement during subsequent PEFA reviews

(specifically PEFA 15 (tax), 26 ( audit scope) , 28 (timeliness of audit), 28 (legislative scrutiny

of audits)

Subject to discussion with

the sector

71 Number of identifiable international standards that are included in new or reformed media

legislation, Change to: Number of commercial radio stations (from GTP Policy Matrix)

5 Not relevant

72 Country-led annual joint GTP results report (i.e. Annual Progress Report APR) produced by

December each year and discussed (including with non-state actors)

Prepared The deadline is not meet

73 Aid Management Platform (AMP) operational and updated by donors every six months Under consideration

74 Amount and % of aid using country systems and procedures Under consideration

75 Amount and % of aid channeled through joint programmes, pooled funds and/or sector budget

support

Under consideration

76 Amount and % of aid disbursed in relation to multi-year/annual frameworks Under consideration