The Federal Democratic Republic of Ethiopia The Second Growth and Transformation Plan (GTP II) Midterm Review Report National Planning Commission June 2018 Addis Ababa Table of Contents Content page List of Tables .............................................................................................................................................. iii Annex Table ................................................................................................................................................ iv Introduction ................................................................................................................................................. 1 Chapter I Macroeconomic Performance ................................................................................................. 3 1.1. Major Macroeconomic Policy Objectives ..................................................................................... 3 1.2. Performance of Major Macroeconomic Targets ........................................................................... 3 1.2.1. Economic Growth and Structural Transformation ................................................................ 3 1.2.2. Maintaining Macroeconomic Stability .................................................................................. 6 1.2.3. Monetary Policy and Development of Finance Industry .................................................... 10 1.2.4. External Trade ..................................................................................................................... 13 1.3. Private Sector Development ........................................................................................................ 17 1.4. Welfare and Poverty Reduction .................................................................................................. 19 Chapter II Economic Sectors Performance ........................................................................................... 20 2.1. Agriculture and Rural Transformation ........................................................................................ 20 2.1.1. Agriculture and Natural Resources ..................................................................................... 20 2.1.2. Natural Resources Conservation and Utilization ................................................................ 23 2.1.3. Food Security, Disaster Prevention and Preparedness ....................................................... 25 2.1.4. Cooperatives Development ................................................................................................ 26 2.1.5. Private Sector Developments ............................................................................................. 27 2.1.6. Livestock and Fisheries Development ................................................................................. 28 2.2 Manufacturing Industry............................................................................................................... 29 2.3 Mining ......................................................................................................................................... 34 2.4 Construction Industry .................................................................................................................. 35 2.5 Urban Development and Housing ............................................................................................... 38 2.6 Trade ........................................................................................................................................... 42 2.7 Culture and tourism ..................................................................................................................... 44 Chapter III Economic Infrastructure .................................................................................................... 48 3.1. Road Infrastructure Development ............................................................................................... 48 3.2. Railways ...................................................................................................................................... 49 3.3. Air Transport ............................................................................................................................... 50 3.4. Maritime Transport Service ........................................................................................................ 51 3.5. Integrated Transport and Logistics Service................................................................................. 52 3.6. Digital Infrastructure ................................................................................................................... 54 3.6.1. Information Technology ...................................................................................................... 54 3.6.2. Telecommunication ............................................................................................................ 55 3.6.3. Postal Service ...................................................................................................................... 56 3.7. Energy Infrastructure .................................................................................................................. 56 3.7.1. Electric Power ..................................................................................................................... 56 3.7.2. Alternative Energy Technologies ........................................................................................ 58 3.8. Water Supply and Irrigation ........................................................................................................ 59 3.8.1. Water Supply ...................................................................................................................... 59 3.8.2. Irrigation Development ....................................................................................................... 59 Chapter IV Human Resource Development & Technological Capacity Building ............................. 60 4.1. Education and Training ............................................................................................................... 60 4.2. Public Health ............................................................................................................................... 64 4.3. Science and Technology Development ....................................................................................... 67 Chapter V Capacity Building and Good Governance .......................................................................... 68 5.1. Building Developmental and Efficient Political Leadership and Civil Service .......................... 68 5.2. Ensuring Good Governance ........................................................................................................ 70 5.3. Justice System Administration .................................................................................................... 73 5.4. Building Democratic System ...................................................................................................... 75 5.5. Strengthening Public Participation .............................................................................................. 76 5.6. Building National Consensus ...................................................................................................... 77 5.7. Strengthening the Multi-political Party System .......................................................................... 78 5.8. Media and Communication ......................................................................................................... 78 Chapter VI Cross Cutting Issues Performance ..................................................................................... 79 6.1. Women and Children Affairs ...................................................................................................... 79 6.1.1. Women Sub Sector.............................................................................................................. 79 6.1.2. Children Sub Sector ............................................................................................................ 79 6.2. Environment and Climate Resilient Green Economy Development ........................................... 81 6.3. Youth and Sports ......................................................................................................................... 82 6.4. Labor and Social Welfare ........................................................................................................... 84 6.4.1. Social Welfare ..................................................................................................................... 85 6.4.2. Labor Affairs ....................................................................................................................... 85 6.5 Population and Development ...................................................................................................... 87 Chapter VII Monitoring and Evaluation Plan Performance ............................................................... 88 ii 7.1 . Monitoring and Evaluation objectives ...................................................................................... 88 7.2 Monitoring and Evaluation Plan Performance ............................................................................ 88 7.2.1. At National Plan Commission level ...................................................................................