Economic Policy Alternatives
The $31 billion in Foreign Direct Investment was attracted over the last eight years, primarily in the manufacturing, agriculture, and service sectors.
Attracted $31 billion in Foreign Direct Investment over the last eight years.
60% of the investment is in the manufacturing sector, with about 20% in agriculture and services.
EZEMA does not believe in subsidies but focuses on increasing productivity to address supply shortages and controlling inflation by regulating the central bank's money printing.
Does not believe in using subsidy systems to support citizens.
Aims to increase productivity to address supply-side shortages of consumer goods.
Plans to control inflation by strictly regulating the printing of money by the central bank.
The Prosperity Party focuses on creating permanent jobs through a multi-sectoral approach, increasing productivity, and providing targeted subsidies for vulnerable citizens.
Aims to create permanent, quality jobs across five key economic sectors.
Focuses on agriculture to ensure food security and sovereignty.
Provides subsidies, including housing and salary subsidies, for vulnerable citizens who cannot actively participate in the economy.
The Freedom and Equality Party emphasizes that peace and stability are prerequisites, followed by job creation and inflation control through a focus on agriculture and manufacturing.
Believes peace and stability are prerequisites for solving economic and social problems.
Prioritizes agriculture (agro-industry) and manufacturing to correct the unhealthy overgrowth of the service sector.
The Renaissance Party plans to reduce the cost of living by creating jobs, particularly for the youth in agriculture and manufacturing, and by establishing legal systems to control corruption and inflation.
Aims to create job opportunities, especially for the youth demographic.
Focuses on agriculture and manufacturing industries to absorb the workforce.
Plans to establish legal systems and procedures to control corruption and factors exacerbating inflation.
EZEMA believes job creation is primarily the role of the private sector and aims to create a conducive environment by improving the ease of doing business and reforming the tax system.
Job creation is not solely the government's role; the private sector will be encouraged to create businesses and jobs.
Plans to improve the ease of doing business by removing bureaucratic obstacles.
Will reform the tax system to respect taxpayers and reduce tax rates for employees and the private sector.
The Prosperity Party highlights the creation of 3.7 million jobs and plans to continue a multi-sectoral approach, supporting private sector entrepreneurship and urban development.
Created 3.7 million jobs through targeted efforts.
Focuses on a multi-sectoral approach, including agriculture, manufacturing, and tourism, to absorb the growing workforce.
Encourages youth entrepreneurship and creates jobs through urban corridor development.
The Freedom and Equality Party focuses on empowering the private sector, particularly small and medium enterprises, by improving access to credit and providing tax reliefs.
Prioritizes the private sector to create jobs in agriculture, industry, and services.
Will ensure the private sector gets priority access to credit over the government.
Plans to support small and medium enterprises with tax reliefs and improved land and credit services.
The Renaissance Party aims to foster innovation and entrepreneurship by improving the credit system and providing tax incentives for both domestic and foreign investors.
Plans to make the banking system more conducive to lending, especially for youth entering innovative fields.
Will provide tax incentives and establish favorable procedures for domestic and foreign investors.
Focuses on agriculture and industry to absorb the large workforce.
EZEMA plans to make the National Bank independent of party politics, led by professionals based on merit, to prevent politically motivated money printing.
The National Bank will be led by professionals based on merit, free from party affiliation.
Aims to stop politically motivated monetary policies and unnecessary printing of money.
The Prosperity Party argues that the National Bank is already gaining independence through recent reforms, guided by an independent monetary policy committee.
The monetary policy is guided by a committee that includes independent experts from universities and research institutions.
The government has not borrowed directly from the National Bank or printed money for the last two years.
The Renaissance Party proposes an independent board to lead the National Bank, separating monetary policy from government fiscal policy, with accountability to the parliament.
Monetary policy will be managed by an independent board, separate from the government's fiscal policy.
The National Bank will be accountable to the House of Peoples' Representatives (the public).
The Freedom and Equality Party identifies the current tax system as complex and prone to corruption, and plans to implement a progressive tax system that taxes the wealthy to support low-income citizens.
The current tax system lacks transparency, is overly complex, and opens doors for corruption.
Will implement a tax system that collects more from the wealthy to benefit low-income citizens through infrastructure development.
The Freedom and Equality Party plans to decentralize economic activity by focusing on agriculture and establishing agro-industries in the regions where resources are located.
Will focus on developing agriculture and establishing industries close to resources in the regions to create jobs and boost production locally.
EZEMA argues that regions must build their own capacity to collect taxes and become financially independent, rather than relying on federal subsidies.
Regions currently rely heavily on federal subsidies and lack true fiscal independence.
Regions must focus on increasing their tax collection capacity to become self-sufficient.
Advocates for urban development where cities can generate their own revenue and create jobs independently.
The Prosperity Party aims to combat corruption through ethical education and by digitizing government services to minimize human contact.
Working on building ethics and morality starting from the education system.
Expanding digital service centers to provide government services without direct human contact or political interference.
The Prosperity Party believes institutional independence is being secured through recent legal proclamations and technical capacity building, rather than necessarily requiring a constitutional amendment.
Recent proclamations have established an independent monetary policy committee to guide the National Bank.
The bank remains accountable to the executive branch but is protected from political pressure through legal frameworks.
The Renaissance Party plans to involve the diaspora in the economy and modernize the tax system to broaden the base and reduce corruption.
Will encourage the diaspora to participate in the economy through technology transfer and investment.
Plans to modernize the tax system to reach untaxed sectors and reduce manual interference and corruption.
EZEMA clarifies that the government will still have an active role as an enabler and will intervene to ensure social justice and correct market failures, but will not compete directly with citizens.
The government will not compete with citizens in providing services or manufacturing.
The government will actively intervene to correct market failures and ensure social justice.
Will intervene strongly in critical areas like food sovereignty, including fertilizer production if the private sector cannot provide it.
EZEMA plans to focus on closing the skills gap of overseas workers and establishing strong bilateral agreements to protect their human rights.
Will focus on training and closing the skills gap to make Ethiopian workers more competitive globally.
Will establish protocols and agreements with destination countries to protect the human rights of Ethiopian workers.
The Prosperity Party acknowledges the delay due to security issues but states that preparations are underway for a census, while currently relying on scientific projections and other surveys.
The census was delayed due to security issues, but preparations are now underway as part of a three-year statistical program.
Currently uses scientific projections and other surveys (like DHS and agricultural/business censuses) to guide economic planning.
The Freedom and Equality Party argues that supporting startups with tax holidays ensures their survival, leading to greater sustainable tax revenue and job creation in the long run.
Tax holidays help small and medium enterprises survive and grow, preventing them from exiting the market early.
In the long run, these strengthened businesses will create jobs and provide a more sustainable and higher tax revenue for the country.
The Prosperity Party states that the monetary policy committee is legally established under the new National Bank proclamation and includes independent experts.
The monetary policy committee is legally established under the recent National Bank proclamation.
The committee includes National Bank experts and independent members from universities and research institutions.
The Freedom and Equality Party acknowledges they may not form a government alone but will implement their policies proportionally to their representation in parliament or a coalition.
Will implement their policy recommendations based on the level of participation and role they secure in the federal or regional governments.
Views their participation as part of a long-term strategy to build capacity and refine policies, not just for a single election.
EZEMA focuses on improving the work culture and ensuring decent wages so citizens can afford their needs, but will provide comprehensive support for vulnerable groups when necessary.
Aims to improve the work culture and ensure workers earn a decent living wage to afford housing, transport, and food without relying on subsidies.
Will provide comprehensive support for vulnerable citizens and those who have served the country when they face hardship.
The Freedom and Equality Party believes that nurturing businesses through tax holidays will ultimately expand the tax base, and prioritizes spending on productive sectors over luxury projects.
Tax holidays for startups prevent them from failing, ultimately leading to a stronger economy and higher tax revenues in the future.
Will prioritize government spending on productive sectors like agriculture and manufacturing rather than luxury projects.
EZEMA rejects strict ideological labels, stating their guiding principle is social justice, and they will adopt any policy—liberal or interventionist—that benefits citizens.
Does not adhere to a strict ideology; the guiding principle is achieving social justice.
Will implement policies based on what benefits the public, whether those policies resemble liberal or interventionist approaches.
The Prosperity Party attributes global poverty increases to external shocks but claims their pro-poor investments in agriculture, urban development, and school feeding have mitigated poverty in Ethiopia.
Global poverty has increased due to COVID-19, supply chain disruptions, and wars.
Investments in agriculture and urban housing development have helped reduce poverty and improve living conditions.
The school feeding program supports nearly 7 million children, significantly addressing food poverty.
EZEMA reiterates that they are free from ideological constraints and will formulate policies based purely on what achieves social justice and benefits the country.
Rejects being bound by ideologies like socialism or neoliberalism, focusing instead on practical solutions for social justice.
Will adopt policies and form international relations based on what benefits the Ethiopian people, regardless of ideological labels.
The Prosperity Party defends the currency float as necessary to discover the Birr's true value, which has already resulted in tripled exports and record foreign direct investment.
The previous fixed exchange rate was artificial and hindered the economy's potential.
Floating the currency allowed it to find its true market value.
The reform has led to a threefold increase in exports and attracted $13 billion in foreign direct investment this year.