ETHIOPIA HITS ENERGY MILESTONE AS COMMERCIAL GAS PRODUCTION SET TO BEGIN

Ethiopia to launch its first commercial gas production, marking a major milestone in its energy and economic transformation.

Ethiopia Energy independence Industrial growth Natural gas production Economy Africa.

Ethiopia prepares to launch its first-ever commercial natural gas production

Ethiopia is preparing to enter a new era of energy independence and industrial growth, as Prime Minister Abiy Ahmed (PhD) announced the imminent launch of the country’s first-ever commercial natural gas production. The move signals a turning point in the Horn of Africa nation’s push to unlock its vast energy reserves and modernize its economy.

Speaking during the 42nd regular session of the House of People’s Representatives, the Prime Minister revealed that the government has signed key agreements for the establishment of gas processing plants. These agreements pave the way for Ethiopia to begin supplying natural gas to the domestic and international markets within the next fiscal year.

“We will prove that our talk about gas is not for show. For the first time in our history, Ethiopia’s gas will flow to the market,” Abiy declared. He noted that longstanding barriers such as excessive permit costs and bureaucratic hurdles have been cleared, creating a more enabling environment for private sector investment in the energy sector.

The announcement comes alongside the approval of the 2025/26 national budget, totaling 1.93 trillion birr. The budget allocates 1.2 trillion birr for regular government spending, 415 billion for capital investments, 315 billion for support to regional states, and 14 billion for sustainable development in underdeveloped regions.

Highlighting broader economic progress, the Prime Minister reported that over 4.5 million jobs were created in the outgoing fiscal year. Ethiopia’s road network has also expanded to 175,000 kilometers, supported by over 300 infrastructure projects valued at 1.5 trillion birr. These include 169 road projects covering 11,000 kilometers, with 1,000 kilometers of new roads expected to be inaugurated this year.

In a show of fiscal discipline, Ethiopia repaid 92 billion birr in foreign debt and has avoided new commercial loans for seven years. A fresh debt restructuring agreement worth $3.5 billion was recently signed, easing future repayment pressures.

The country’s export sector has outperformed expectations, generating $8.1 billion, well above the projected $5.1 billion. Remittance inflows brought in an additional $7 billion, contributing to total foreign currency earnings of $32 billion up from $24 billion the previous year.

The digital economy is also surging. With 55 million mobile money users, Ethiopia now records more digital than cash transactions, pointing to rapid transformation in the financial services landscape.

The mining sector has emerged as a national asset, with gold exports reaching a record 37 tons and earning $3.5 billion. Meanwhile, the construction of a large-scale fertilizer plant is underway, expected to be completed in just over three years.

Tourism is recovering steadily, with 1.3 million international visitors recorded last year. In agriculture, over 23 million people exited the national safety net program, and the sector is projected to grow by 6.1% in the new fiscal year.

The national economy is projected to expand by 8.1%, with the services sector including tourism, telecommunications, trade, and transport poised to match that growth. Foreign Direct Investment (FDI) reached $4 billion, signaling increased investor confidence.

“These figures are not just numbers,” the Prime Minister concluded. “They represent meaningful change in the lives of our people and tangible outcomes of our ongoing reform journey.”

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ETHIOPIA HITS ENERGY MILESTONE AS COMMERCIAL GAS PRODUCTION SET TO BEGIN

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