Financing for Development
Ethiopia has experienced a decade of robust growth with a GDP growth rate averaging over10 percent compared to a 5 percent average recorded for sub-Saharan African countries. This makes Ethiopia one of the fastest growing economies in the world and within the growth target for achieving the
MDGs by 2015. The Government must keep pace with the key objectives of the Growth and Transformation Plan (GTP) (2011-2015), inter-alia, to achieve broadbased, accelerated and sustained economic growth for poverty eradication in order to achieve the transformational agenda.
Building on the success of the Plan for Accelerated and Sustained Development to End Poverty that had achieved significant human and social development, the GTP prioritizes areas including agriculture and rural development, industrial growth, infrastructure development, human development as well as good governance and democratization. Balancing the macroeconomic objectives of maintaining low inflation and meeting the ambitious targets of the GTP in a global environment of declining ODA flows therefore becomes a complex enterprise. This paper looks at the overall financing envelope against a backdrop of the competing demands for investment in infrastructure and the social and human development sectors. In essence the implementation of the current GTP and its successor plan requires mobilization of considerable additional financial resources.